[Federal Register Volume 69, Number 239 (Tuesday, December 14, 2004)]
[Notices]
[Pages 74559-74560]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3634]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50817; File No. SR-PCX-2004-105]


Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change and 
Amendment No. 1 Thereto To Make Clarifying Changes to the PCX Schedule 
of Fees and Charges With Respect to the Options Orientation Fee To 
Include the Cost of the Series 44 or 45 Examination and To Adopt a New 
Fee Associated With the Series 46 Examination

December 7, 2004
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on October 28, 2004, the Pacific Exchange, Inc. (``PCX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange. On 
December 3, 2004, PCX filed Amendment No. 1 to the proposed rule 
change.\3\ PCX filed this proposal pursuant to Section 19(b)(3)(A) \4\ 
of the Act and Rule 19b-4(f)(6) \5\ thereunder, which renders the 
proposal effective upon filing with the Commission. The Commission is 
publishing this notice to solicit comments on the proposed rule change, 
as amended, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 replaced and superseded the original filing 
in its entirety. For purpose of calculating the 60-day period within 
which the Commission may summarily abrogate the proposed rule change 
under Section 19(b)(3)(C) of the Act, the Commission considers that 
period to commence on December 3, 2004, the date that the PCX filed 
Amendment No. 1.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    PCX is proposing to make a clarifying change to the PCX Schedule of 
Fees and Charges (``Schedule'') with respect to the Options Orientation 
Fee. The text of the proposed rule change is available at PCX and at 
the Commission.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, PCX included statements 
concerning the purpose of and basis for its proposal and discussed any 
comments it received regarding the proposal. The text of these 
statements may be examined at the places specified in Item IV below. 
PCX has prepared summaries, set forth in Sections A, B and C below, of 
the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the Schedule to make a clarifying 
change to the Options Orientation Fee. In October of 2003, the Exchange 
amended the Options Orientation Fee in connection with the launch of 
PCX Plus.\6\ At the time, the Exchange reconfigured a development and 
delivery process for the Exchange's Orientation and

[[Page 74560]]

Examination program. Pursuant to the revised structure, the Exchange 
developed an orientation and examination content to be administered by 
the National Association of Securities Dealers, Inc (``NASD''). The 
revised Options Orientation Fee of $1,000 was intended to include the 
cost of the Series 44 or Series 45 examination, the investigation fee 
and the fingerprinting fee,\7\ but not the Series 46 examination.\8\ 
Thus, since October 2003, the Exchange has charged $1,000 for the 
Options Orientation Fee (including the cost of the Series 44 or 45 
examination) and no charge has applied for the Series 46 examination. 
The Exchange proposes to amend the Options Orientation Fee by adding a 
parenthetical in the Schedule to clarify that the Options Orientation 
Fee only includes the cost of the Series 44 or Series 45 examination.
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    \6\ See Securities Exchange Act Release No. 48597 (October 7, 
2003), 69 FR 59439 (October 15, 2003) (SR-PCX-2003-57).
    \7\ If the applicant is not required to take the examination 
(i.e., qualifies for a waiver), such applicant is only required to 
pay a separate investigation and fingerprinting fee.
    \8\ Series 46 is an optional examination taken subsequent to the 
Series 44 examination.
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    The Exchange also proposes to adopt a new fee of $200 to help 
recover the costs associated with the Series 46 examination. Pursuant 
to a contractual agreement between PCX and NASD, PCX incurs fixed 
expenses in connection with the administration of each Series 46 
examination. Further, the Exchange expends staff resources for ongoing 
development and maintenance of examination content. As such, the 
proposed fee will recover expenses relating to administration, 
development and ongoing support of the Series 46 examination.
    The Exchange believes that these proposed changes are necessary to 
alleviate confusion among the OTP Holders and OTP Firms with respect to 
the Options Orientation Fee.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section 
6(b) of the Act \9\ in general, and Section 6(b)(4) of the Act \10\ in 
particular, in that it provides for the equitable allocation of 
reasonable dues, fees and other charges among its OTP Holders, OTP 
Firms, issuers and persons using the facilities.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments on the proposed rule change were neither solicited 
nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not:
    (i) Significantly affect the protection of investors or the public 
interest;
    (ii) Impose any significant burden on competition; and
    (iii) Become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to Section 19(b)(3)(A) of the Act \11\ and 
Rule 19b-4(f)(6) thereunder.\12\ At any time within 60 days of the 
filing of the proposed rule change, the Commission may summarily 
abrogate such rule change if it appears to the Commission that such 
action is necessary or appropriate in the public interest, for the 
protection of investors, or otherwise in furtherance of the purposes of 
the Act.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-PCX-2004-105 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-PCX-2004-105. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/ 
rules/sro.shtml). Copies of the submission, all subsequent amendments, 
all written statements with respect to the proposed rule change that 
are filed with the Commission, and all written communications relating 
to the proposed rule change between the Commission and any person, 
other than those that may be withheld from the public in accordance 
with the provisions of 5 U.S.C. 552, will be available for inspection 
and copying in the Commission's Public Reference Room. Copies of such 
filing also will be available for inspection and copying at the 
principal office of the PCX. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-PCX-2004-105 and should be submitted on or before 
January 4, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E4-3634 Filed 12-13-04; 8:45 am]
BILLING CODE 8010-01-P