[Federal Register Volume 70, Number 37 (Friday, February 25, 2005)]
[Notices]
[Pages 9419-9420]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-777]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51228; File No. SR-PCX-2005-18]


Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change to PCX Rules 
6.33 and 6.44, Amending Procedural Requirements for the PCX Market 
Maker and Floor Broker Examinations

February 18, 2005.
    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 February 4, 2005, the Pacific Exchange, Inc. (``PCX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II and III below, which Items have been prepared by PCX. PCX 
filed this proposal pursuant to Section 19(b)(3)(A) \3\ of the Act and 
Rule 19b-4(f)(6) thereunder,\4\ which renders the proposal effective 
upon filing with the Commission. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 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 proposes to amend PCX Rules 6.33 and 6.44 in order to amend the 
procedural requirements for the Market Maker and Floor Broker 
examinations. The text of the proposed rule change is available on 
PCX's Web site (http://www.pacificex.com/legal/legal_pending.html), at 
the PCX's Office of the Secretary, and at the Commission's Public 
Reference Room.

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
    PCX proposes to amend PCX Rules 6.33 (Registration of Market 
Makers) and 6.44 (Registration of Floor Brokers) in order to amend the 
procedural requirements for the Market Maker and Floor Broker 
examinations. These rules contain requirements that the Exchange give 
examinations with a specific number of questions (100 for Market Makers 
and 121 for Floor Brokers) and allow for a specific amount of time for 
the applicant to complete the examination (3 hours for Market Makers 
and 3 hours 30 minutes for Floor Brokers). With the implementation of 
PCX Plus, the Exchange's electronic order delivery, execution and 
reporting system for designated option issues through which orders and 
Quotes with Size are consolidated for execution and/or display, the 
Exchange completely revised its qualifying examinations in 2003. As 
such, the old requirements are no longer applicable and the rules need 
to be amended to remove the obsolete references.
    The Exchange continually reviews and modifies its qualifying 
examinations. The examinations are amended to reflect changes in the 
industry as well as specific trading rules applicable to the PCX. 
Questions are added and deleted as changes in the marketplace dictate. 
As such, the Exchange needs the ability to administer examinations 
without being required to submit a rule change to amend the number of 
questions or the amount of time for the applicant to complete the 
examination. Removing the current language from PCX Rules 6.33 and 6.44 
will give the Exchange much greater flexibility in administering such 
examinations. The Exchange represents that it will file any changes to 
the examinations, including the addition or removal of questions, 
changes in the time allotted for completion or any other aspect of the 
examination, with the Commission before implementing such changes in 
accordance with the Commission's current policy on examinations. The 
Exchange plans to continually monitor the examination process and make 
adjustments to both the examinations and the time allowed to complete 
the examinations when such adjustments are needed.
2. Statutory Basis
    PCX believes that the proposed rule change is consistent with 
Section 6(b)(5) of the Act,\5\ which requires the rules of the exchange 
be designed to facilitate transactions in securities, to promote just 
and equitable principles of trade, and to protect investors and the 
public interest. The PCX also believes that the proposed rule change is 
consistent with Section 6(c)(3) of the Act,\6\ which authorizes PCX to 
prescribe standards of training, experience, and competence for persons 
associated with PCX members.
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    \5\ 15 U.S.C. 78f(b)(5).
    \6\ 15 U.S.C. 78f(c)(3).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    PCX does not believe that the proposed rule change will result in 
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 were neither solicited nor received.

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

    Because the 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

[[Page 9420]]

Act \7\ and Rule 19b-4(f)(6) thereunder.\8\ At any time within 60 days 
of the filing of such 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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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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-2005-18 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-2005-18. 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-2005-18 and should be 
submitted on or before March 18, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
 [FR Doc. E5-777 Filed 2-24-05; 8:45 am]
BILLING CODE 8010-01-P