Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc., Relating to Exchange Fees and Charges, 4174-4175 [E5-326]
Download as PDF
<![CDATA[
4174
Federal Register / Vol. 70, No. 18 / Friday, January 28, 2005 / Notices
proceedings. The Commission notes,
however, that after the first failure by an
Order Entry Firm to maintain adequate
controls and procedures to monitor and
supervise the entry of electronic orders
pursuant to PCX Rules 6.87(c)(4) and
6.90(d)(3), the Exchange will treat
subsequent violations as a formal
disciplinary matter.11 The Commission
expects that the Exchange will continue
to conduct surveillance with due
diligence, and make a determination
based on its findings as to whether fines
of more or less than the recommended
amount are appropriate for violations of
rules under the MRP on a case-by-case
basis, or if a violation requires formal
disciplinary action.
It is therefore ordered, pursuant to
section 19(b)(2) of the Act12, that the
proposed rule change, including
Amendment No.2 thereto (File No. SR–
PCX–2004–58) be, and it hereby is,
approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–325 Filed 1–27–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51053; File No. SR–PCX–
2005–03]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
Pacific Exchange, Inc., Relating to
Exchange Fees and Charges
January 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 January
11, 2005, 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 PCX. The PCX has designated
this proposal as one establishing or
changing a due, fee, or other charge
imposed by the PCX under section
19(b)(3)(A)(ii) of the Act,3 and Rule
11 See
proposed PCX Rule 10.12(k)(i)45. See also
Notice, supra note 5.
12 15 U.S.C. 78s(b)(2).
13 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
VerDate jul<14>2003
15:43 Jan 27, 2005
Jkt 205001
19b–4(f)(2) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The PCX is proposing to amend its
Schedule of Fees and Charges For
Exchange Services (‘‘Schedule’’) in
order to add provisions for the handling
of options on the Standard and Poor’s
Depositary Receipts (ticker symbol
‘‘SPY’’) under the Exchange’s marketing
fee program. The text of the proposed
rule change is available on the PCX’s
Web site (https://www.pacificex.com), 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, the
PCX included statements concerning the
purpose of and basis for its proposal and
discussed any comments it had received
regarding the proposal. 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
1. Purpose
The PCX states that the purpose of the
proposed filing is to amend the
Schedule in order to add provisions for
the handling of SPY options under the
Exchange’s marketing fee program. The
Exchange proposes to collect a $1.00 per
contract marketing fee for SPY options
and assess this fee on all transactions
except for Market Maker to Market
Maker transactions. In addition, the
Exchange is proposing to exclude trades
of SPY options from the existing cap on
marketing fees. The PCX states that this
charge is necessary as a result of the
costs associated with trading SPY
options. The Exchange believes that
capping marketing fees at $200 per trade
would put it at a competitive
disadvantage to other exchanges that
trade SPY options.
The Exchange has also proposed to
revise the Schedule to show the change
PO 00000
4 17
CFR 240.19b–4(f)(2).
Frm 00091
Fmt 4703
Sfmt 4703
in the symbol of the Nasdaq-100
Tracking Stock Options from QQQ to
QQQQ.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act 5 in general, and
furthers the objectives of section 6(b)(4)
of the Act 6 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees, and
other charges among its members and
other persons using its facilities for
trading option contracts.7
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
The PCX neither solicited nor
received written comments with respect
to the proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
establishes or changes a due, fee, or
other charge imposed by the Exchange,
it has become effective pursuant to
section 19(b)(3)(A)(ii) of the Act 8 and
subparagraph (f)(2) of Rule 19b–4
thereunder.9 Accordingly, the proposal
will take effect upon filing with the
Commission. 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.
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:
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
7 Telephone conversation between Steven Matlin,
Senior Counsel, PCX, and Davis Liu, Attorney,
Division of Market Regulation, Commission, on
January 14, 2005.
8 15 U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
6 15
E:\FR\FM\28JAN1.SGM
28JAN1
Federal Register / Vol. 70, No. 18 / Friday, January 28, 2005 / Notices
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–PCX–2005–03 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–2005–03. 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 (https://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 the 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–2005–03 and should
be submitted on or before February 18,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–326 Filed 1–27–05; 8:45 am]
BILLING CODE 8010–01–P
10 17
CFR 200.30–3(a)(12).
VerDate jul<14>2003
15:43 Jan 27, 2005
Jkt 205001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51061; File No. SR–PCX–
00–15]
Self-Regulatory Organizations; Order
Approving a Proposed Rule Change
and Amendments No. 1 and 2 Thereto
and Notice of Filing and Order
Granting Accelerated Approval to
Amendments No. 3, 4, 5, 6, and 7
Thereto by the Pacific Exchange, Inc.
To Require the Immediate Display of
Customer Limit Orders
January 21, 2005.
I. Introduction
On June 14, 2000, the Pacific
Exchange, Inc. (‘‘PCX’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to amend PCX Rule 6.55 to
require the immediate display of
customer limit orders. PCX filed
Amendments No. 1 and 2 to the
proposed rule change on August 1,
2000,3 and October 17, 2000,4
respectively. The proposed rule change,
as amended by Amendments No. 1 and
2, was published for comment in the
Federal Register on November 21,
2000.5 No comments were received
regarding the amended proposal.
PCX filed Amendments No. 3, 4, 5, 6,
and 7 with the Commission on October
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See letter from Hassan Abedi, Attorney,
Regulatory Policy, PCX, to Nancy Sanow, Assistant
Director, Division of Market Regulation
(‘‘Division’’), Commission, dated July 31, 2000
(‘‘Amendment No. 1’’).
4 See letter from Hassan Abedi, Attorney,
Regulatory Policy, PCX, to Nancy Sanow, Assistant
Director, Division, Commission, dated September
29, 2000 (‘‘Amendment No. 2’’).
5 See Securities Exchange Act Release No. 43550
(November 13, 2000), 65 FR 69979 (‘‘Notice’’).
PO 00000
1 15
2 17
Frm 00092
Fmt 4703
Sfmt 4703
4175
28, 2004,6 November 18, 2004,7
December 10, 2004,8 December 31,
2004,9 and January 7, 2005,10
respectively. This order approves the
proposed rule change and Amendments
No. 1 and 2 and grants accelerated
approval to and solicits comment on
Amendments No. 3, 4, 5, 6 and 7.
II. Description of Proposed Rule
PCX proposes to amend PCX Rule
6.55 to codify an immediate display
requirement with respect to eligible
customer limit orders (‘‘Display
Obligation’’). The text of the proposed
rule change, as amended, follows.
Additions are in italics. Deletions are in
[brackets].
Displaying Bids and Offers in the
Book Rule 6.55. The limit orders in the
custody of an Order Book Official [shall]
constitute the [his] book. Each Order
Book Official shall display immediately
the full price and size of any customer
limit order that improves the price or
increases the size of the best
disseminated PCX quote. [So far as
practicable, an Order Book Official shall
continuously display, in a visible
manner, the highest bid and lowest offer
along with an indication of the number
of option contracts bid for at the highest
bid and offered at the lowest offer in his
book in each option contract for which
6 On October 28, 2004, PCX filed a Form 19b–4,
which replaced the original filing and Amendments
No. 1 and 2 in their entirety (‘‘Amendment No. 3’’).
In Amendment No. 3, PCX proposes to revise the
proposal to reflect changes to PCX’s systems (i.e.,
the approval and roll-out of PCX Plus) since the
Notice was published for comment. Amendment
No. 3 also added a number of exemptions to the
Display Obligation, discussed in more detail below,
which mirror exemptions proposed by the Chicago
Board Options Exchange (‘‘CBOE’’) and American
Stock Exchange (‘‘Amex’’) in recently-published
proposals. See Securities Exchange Act Release
Nos. 49916 (June 25, 2004), 69 FR 40422 (July 2,
2004) (SR–CBOE–2004–35) (‘‘CBOE Notice’’) and
50188 (August 12, 2004), 69 FR 51495 (August 19,
2004) (SR–Amex–00–27) (‘‘Amex Notice’’), which
we also approve today, see Securities Exchange Act
Release Nos. 51063 (January 21, 2005) (‘‘CBOE
Approval’’) and 51062 (January 21, 2005) (‘‘Amex
Approval’’).
7 See letter from Tania Blanford, Staff Attorney,
Regulatory Policy, PCX, to Nancy Sanow, Assistant
Director, Division, Commission, dated November
18, 2004 (‘‘Amendment No. 4’’). In Amendment No.
4, PCX proposes a minor modification to the
exemptions to the Display Obligation.
8 See Partial Amendment, dated December 10,
2004, submitted by Tania Blanford, Staff Attorney,
PCX (‘‘Amendment No. 5’’). In Amendment No. 5,
PCX proposes a minor modification to the
exemptions to the Display Obligation.
9 See Partial Amendment, dated December 31,
2004, submitted by Tania Blanford, Staff Attorney,
PCX (‘‘Amendment No. 6’’). In Amendment No. 6,
PCX proposes a minor modification to the
exemptions to the Display Obligation.
10 See Partial Amendment, dated January 7, 2005,
submitted by Tania Blanford, Staff Attorney, PCX
(‘‘Amendment No. 7’’). In Amendment No. 7, PCX
proposes a minor modification to the exemptions to
the Display Obligation.
E:\FR\FM\28JAN1.SGM
28JAN1
]]>Agencies
[Federal Register Volume 70, Number 18 (Friday, January 28, 2005)]
[Notices]
[Pages 4174-4175]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-326]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51053; File No. SR-PCX-2005-03]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc.,
Relating to Exchange Fees and Charges
January 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 January 11, 2005, 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 PCX. The PCX has
designated this proposal as one establishing or changing a due, fee, or
other charge imposed by the PCX under section 19(b)(3)(A)(ii) of the
Act,\3\ and Rule 19b-4(f)(2) 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The PCX is proposing to amend its Schedule of Fees and Charges For
Exchange Services (``Schedule'') in order to add provisions for the
handling of options on the Standard and Poor's Depositary Receipts
(ticker symbol ``SPY'') under the Exchange's marketing fee program. The
text of the proposed rule change is available on the PCX's Web site
(https://www.pacificex.com), 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, the PCX included statements
concerning the purpose of and basis for its proposal and discussed any
comments it had received regarding the proposal. 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
1. Purpose
The PCX states that the purpose of the proposed filing is to amend
the Schedule in order to add provisions for the handling of SPY options
under the Exchange's marketing fee program. The Exchange proposes to
collect a $1.00 per contract marketing fee for SPY options and assess
this fee on all transactions except for Market Maker to Market Maker
transactions. In addition, the Exchange is proposing to exclude trades
of SPY options from the existing cap on marketing fees. The PCX states
that this charge is necessary as a result of the costs associated with
trading SPY options. The Exchange believes that capping marketing fees
at $200 per trade would put it at a competitive disadvantage to other
exchanges that trade SPY options.
The Exchange has also proposed to revise the Schedule to show the
change in the symbol of the Nasdaq-100 Tracking Stock Options from QQQ
to QQQQ.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act \5\ in general, and furthers the
objectives of section 6(b)(4) of the Act \6\ in particular, in that it
is designed to provide for the equitable allocation of reasonable dues,
fees, and other charges among its members and other persons using its
facilities for trading option contracts.\7\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
\7\ Telephone conversation between Steven Matlin, Senior
Counsel, PCX, and Davis Liu, Attorney, Division of Market
Regulation, Commission, on January 14, 2005.
---------------------------------------------------------------------------
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
The PCX neither solicited nor received written comments with
respect to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change establishes or changes a due,
fee, or other charge imposed by the Exchange, it has become effective
pursuant to section 19(b)(3)(A)(ii) of the Act \8\ and subparagraph
(f)(2) of Rule 19b-4 thereunder.\9\ Accordingly, the proposal will take
effect upon filing with the Commission. 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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:
[[Page 4175]]
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-PCX-2005-03 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-2005-03. 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 (https://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 the
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-2005-03 and should be submitted on or before
February 18, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-326 Filed 1-27-05; 8:45 am]
BILLING CODE 8010-01-P
