[Federal Register Volume 70, Number 45 (Wednesday, March 9, 2005)]
[Notices]
[Pages 11721-11722]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-977]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51300; File No. SR-PCX-2005-24]


Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change to PCXE 
Rules 4.5 and 6.18(d), Relating to Compliance Date for the Series 24 
and Series 27 Examination Requirements for ETP Holders

March 2, 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 18, 2005, the Pacific Exchange, Inc. (``PCX'' or 
``Exchange''), through its wholly owned subsidiary PCX Equities, Inc. 
(``PCXE''), 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 PCXE. PCXE filed this 
proposal pursuant to Section 19(b)(3)(A) \3\ of the Act and Rule 19b-
4(f)(3) 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)(3).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    PCXE proposes to amend PCXE Rule 4.5 to extend the compliance 
deadline for financial/operations principals of PCXE ETP firms to 
successfully complete the National Association of Securities Dealers, 
Inc.'s (``NASD'') Financial and Operations Principal Examination 
(``Series 27 Examination'') until September 30, 2005. PCXE also 
proposes to amend PCXE Rule 6.18(d) to extend the deadline for 
compliance supervisors of PCXE ETP firms to successfully complete the 
NASD's General Securities Principal Examination (``Series 24 
Examination'') until September 30, 2005. 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, PCXE 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. 
PCXE 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 Commission recently approved a rule proposal by the Exchange to 
amend PCXE Rule 4.5 and add PCXE Rule 6.18(d) to require all financial/
operations principals of PCXE Equity Trading Permit Holders (``ETP'') 
Firms to successfully complete the Series 27 Examination and to require 
all compliance supervisors of PCXE ETP Firms to successfully complete 
the Series 24 Examination.\5\ Both rules contained compliance deadlines 
of March 31, 2005. The purpose of this filing is to extend the 
compliance deadline until September 30, 2005. For ETP Holders to become 
compliant with the approved rules they either need to study for and 
pass the Series 24 and 27 Examinations or hire individuals who have 
already passed these examinations. The Commission approved these rules 
on January 14, 2005 and the notice approving these rules appeared in 
the Federal Register on January 24, 2005.\6\ The Exchange believes that 
providing ETP Holders with only two months time to become compliant 
with the recently approved rules is neither sufficient nor practical. 
In addition, the Exchange underestimated the number of ETP Holders who 
would be affected by this rule change as well as the impact it would 
have on all ETP Holders, especially the smaller ETP Holders. Therefore, 
extending the compliance

[[Page 11722]]

deadline until September 30, 2005 is necessary to give ETP Holders a 
reasonable amount of time come into compliance with the new rules.
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    \5\ See Securities Exchange Act Release No. 51038 (January 14, 
2005), 70 FR 03417 (January 24, 2005) (SR-PCX-2004-96).
    \6\ See supra note 5.
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2. Statutory Basis
    PCXE believes that the proposed rule change is consistent with 
Section 6(b) of the Act \7\ in general, and further the objectives of 
Section 6(b)(5) of the Act \8\ in particular, because it is designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, and to remove impediments to and perfect the mechanism of a 
free and open market and a national market system.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    PCXE 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 were neither solicited nor received.

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

    The foregoing proposed rule change has become effective pursuant to 
Section 19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(3) \10\ 
thereunder because it constitutes a stated policy with respect to the 
enforcement of an existing rule of the self-regulatory organization. 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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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(3).
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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-2005-24 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-2005-24. 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-2005-24 and should be submitted on or before March 
30, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-977 Filed 3-8-05; 8:45 am]
BILLING CODE 8010-01-P