[Federal Register Volume 70, Number 80 (Wednesday, April 27, 2005)]
[Notices]
[Pages 21832-21833]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1986]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51580; File No. SR-PCX-2005-36]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. 
Relating to the Arbitration Fees

April 20, 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 March 24, 2005, the Pacific Exchange, Inc. (``PCX'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'' or 
``SEC'') the proposed rule change as described in Items I, II and III 
below, which Items have been prepared by PCX. On April 18, 2005, the 
PCX filed Amendment No. 1 to the proposed rule change.\3\ The PCX filed 
this proposal pursuant to Section 19(b)(3)(A)(iii) of the Act \4\ and 
Rule 19b-4(f)(3) thereunder,\5\ as one concerned solely with the 
administration of the self-regulatory organization, 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\ In Amendment No. 1, the PCX provided an additional statutory 
basis for this proposal.
    \4\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \5\ 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

    The PCX is proposing to amend the PCX arbitration rules in order to 
make a minor rule numbering change. The text of the proposed rule 
change, as amended, is available on PCX's Web site (http://www.pacificex.com), at the principal office of the PCX, and at the 
Commission's Public Reference Section.

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 the proposed rule change, as 
amended, and discussed any comments it received on the proposed rule 
change, as amended. The text of these statements may be examined at the 
places specified in Item IV below. The 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

Purpose
    The Exchange proposes to make a minor rule numbering change to the 
PCX arbitration rules. In December 2004, the Exchange filed a proposed 
rule change with the Commission to amend the PCX Options and PCX 
Equities (``PCXE'') arbitration rules with respect to arbitration fees 
that only affect OTP Holders, OTP Firms and ETP Holders.\6\ As part of 
that filing, the Exchange proposed to adopt a Pre-Hearing and Hearing 
Process Fee in PCX Rule 12.33 and PCXE Rule 12.32(k). At this time, the 
Exchange proposes to renumber the PCX Options rule for Pre-Hearing and 
Hearing Process Fees from PCX Rule 12.33 to PCX Rule 12.31(k) so that 
the rule is similarly located for both PCX Options and PCX Equities. 
PCX Rule 12.31 contains the Schedule of Fees for arbitration 
proceedings. The Exchange believes the renumbering will provide 
consistency and ease of use for Exchange staff as well as the OTP 
Holders, OTP Firms, ETP Holders and the public. The Exchange does not 
propose any substantive changes to this rule or any rule renumbering 
changes for PCX Equities.
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    \6\ See Exchange Act Release No. 51102 (January 28, 2005), 70 FR 
6063 (February 4, 2005) (SR-PCX-2004-118).
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Statutory Basis
    The Exchange believes that the proposed rule change, as amended, is 
consistent with Section 6(b) \7\ of the Act, in general, and Section 
6(b)(4) of the Act \8\, in particular, in that it provides for the 
equitable allocation of reasonable fees and charges among its OTP 
Holders, OTP Firms, ETP Holders, issuers and other persons using its 
facilities. The Exchange also believes the proposal, as amended, is 
consistent with Section 6(b)(5)\9\ in that it is related to the 
administration of the Exchange because it reorganizes the Exchange's 
rules but does not change the substance of these rules.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
    \9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change, as 
amended, will impose any burden on competition

[[Page 21833]]

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, as amended, were 
neither solicited nor received.

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

    The foregoing rule change, as amended, has become effective 
pursuant to Section 19(b)(3)(A)(iii) \10\ of the Act and subparagraph 
(f)(3) of Securities Exchange Act Rule 19b-4 \11\ thereunder as one 
concerned solely with the administration of the Exchange. 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 Act.\12\
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    \10\ 5 U.S.C. Sec.  78s(b)(3)(A)(iii).
    \11\ 17 CFR 240.19b-4(f)(2).
    \12\ For purposes of calculating the 60-day abrogation period, 
the Commission considers the proposed rule change to have been filed 
on April 18, 2005, when Amendment No. 1 was filed. See, supra, note 
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, as amended, 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-2005-36 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-2005-36. 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, as 
amended, that are filed with the Commission, and all written 
communications relating to the proposed rule change, as amended, 
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 Section, 450 Fifth Street, NW., Washington, DC 20549. 
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-2005-36 and should be submitted on 
or before May 18, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
Margaret H. McFarland,
Deputy Secretary.
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    \13\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E5-1986 Filed 4-26-05; 8:45 am]
BILLING CODE 8010-01-P