Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment Nos. 1 and 2 Thereto by the Pacific Exchange, Inc. Relating to Exchange Fees and Charges, 5261-5263 [E5-360]
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Federal Register / Vol. 70, No. 20 / Tuesday, February 1, 2005 / Notices
options on SPDRs similarly be subject to
position limits and exercise limits of
300,000 contracts. The Exchange
believes that increasing position limits
and exercise limits for SPDR options
would lead to a more liquid and
competitive market environment for
SPDR options that would benefit
customers interested in this product.
Consistent with the reporting
requirement for QQQ options, the
Exchange would require that each
Options Participant 5 that maintains a
position on the same side of the market
in excess of 10,000 contracts in the
SPDR option class, for its own account
or for the account of a customer, report
certain information.6 This data would
include, but would not be limited to, the
option position, whether such position
is hedged and if so, a description of the
hedge and if applicable, the collateral
used to carry the position. In addition,
the general reporting requirement for
customer accounts that maintain a
position in excess of 200 contracts
would remain at this level for SPDR
options.7
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements of Section 6(b) of the
Act 8 in general, and Section 6(b)(5) of
the Act,9 in particular, in that it is
designed to promote just and equitable
principles of trade, to prevent
fraudulent and manipulative acts and,
in general, to protect investors and the
public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would impose
any burden on competition 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 Exchange has neither solicited
nor received comments on the proposed
rule change.
III. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
5 Defined in Section 1(40) of Chapter I of the BOX
Rules.
6 See Section 10(b) of Chapter III of the BOX
Rules.
7 See Section 10(a) of Chapter III of the BOX
Rules.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
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5261
the requirements of Section 6(b)(5) of
the Act.11 Specifically, the Commission
finds that the proposed rule change
should ensure that the Exchange’s
position limits and exercise limits on
Electronic Comments
SPDR options provide its members with
• Use the Commission’s Internet
sufficient flexibility to participate in the
comment form (https://www.sec.gov/
market for such options in a manner
rules/sro.shtml); or
that should provide greater depth and
• Send an e-mail to ruleliquidity for all market participants.
comments@sec.gov. Please include File
The Commission finds good cause for
Number SR–BSE–2005–05 on the
approving this proposed rule change
subject line.
prior to the thirtieth day after
Paper Comments
publication of notice thereof in the
Federal Register. Specifically, the
• Send paper comments in triplicate
Commission believes that granting
to Jonathan G. Katz, Secretary,
accelerated approval to the proposed
Securities and Exchange Commission,
rule change should permit greater depth
450 Fifth Street, NW., Washington, DC
and liquidity in the SPDR options
20549–0609.
market that should benefit all market
All submissions should refer to File
Number SR–BSE–2005–05. This file
participants, including retail investors.
number should be included on the
Because the higher position limits and
subject line if e-mail is used. To help the exercise limits mirror those that the
Commission process and review your
Commission has previously approved
comments more efficiently, please use
for like products, the Commission
only one method. The Commission will believes it is consistent with Sections
post all comments on the Commission’s 6(b)(5) 12 and 19(b)(2) 13 of the Act to
Internet Web site (https://www.sec.gov/
approve the BSE’s proposed rule change
rules/sro.shtml). Copies of the
on an accelerated basis.
submission, all subsequent
V. Conclusion
amendments, all written statements
with respect to the proposed rule
It is therefore ordered, pursuant to
change that are filed with the
Section 19(b)(2) of the Act,14 that the
Commission, and all written
proposed rule change (SR–BSE–2005–
communications relating to the
05) is hereby approved on an
proposed rule change between the
accelerated basis.
Commission and any person, other than
For the Commission, by the Division
those that may be withheld from the
of Market Regulation, pursuant to
public in accordance with the
delegated authority.15
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
Margaret H. McFarland,
the Commission’s Public Reference
Deputy Secretary.
Section. Copies of such filing also will
[FR Doc. E5–361 Filed 1–31–05; 8:45 am]
be available for inspection and copying
BILLING CODE BILLING CODE 8010–01–U
at the principal office of the BSE. All
comments received will be posted
without change; the Commission does
SECURITIES AND EXCHANGE
not edit personal identifying
COMMISSION
information from submissions. You
should submit only information that
you wish to make available publicly. All [Release No. 34–51076; File No. SR–PCX–
2004–125]
submissions should refer to File
Number SR–BSE–2005–05 and should
Self-Regulatory Organizations; Notice
be submitted on or before February 22,
of Filing and Immediate Effectiveness
2005.
of Proposed Rule Change and
IV. Commission’s Findings and Order
Amendment Nos. 1 and 2 Thereto by
Granting Accelerated Approval of
the Pacific Exchange, Inc. Relating to
Proposed Rule Change
Exchange Fees and Charges
After careful review, the Commission
January 25, 2005.
finds that the proposed rule change is
Pursuant to Section 19(b)(1) of the
consistent with the requirements of the
Securities Exchange Act of 1934
Act and the rules and regulations
thereunder, applicable to a national
11 15 U.S.C. 78f(b)(5).
securities exchange,10 and, in particular,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
12 15
In approving this proposal, the Commission
has considered its impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
PO 00000
10 10
Frm 00133
Fmt 4703
Sfmt 4703
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(2).
14 15 U.S.C. 78s(b)(2).
15 17 CFR 200.30–3(a)(12).
13 15
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Federal Register / Vol. 70, No. 20 / Tuesday, February 1, 2005 / Notices
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
21, 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 January 12, 2005,
the Exchange filed Amendment No. 1 to
the proposed rule change. On January
13, 2005, the Exchange filed
Amendment No. 2 to the proposed rule
change. The Commission is publishing
this notice to solicit comments on the
proposed rule change, as amended, from
interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Schedule of Fees and Charges For
Exchange Services (‘‘Schedule’’) in
order to eliminate the Shortfall Fee and
corresponding Shortfall Credit and the
Designated Options Examining
Authority (‘‘DOEA’’) fee, add a
clarifying change to the $500
application fee for a request for a waiver
pursuant to PCX Rule 2.5(c)(4) and
make certain administrative changes.
The text of the proposed rule change is
available on the Exchange’s Web site
(https://www.pacificex.com/legal/
legal_pending.html), at the Exchange’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
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange 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 is proposing to amend
its Schedule in order to eliminate the
Shortfall Fee, as well as the
corresponding Shortfall Credit, and the
DOEA fee, add a clarifying change to the
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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15:06 Jan 31, 2005
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$500 application fee for a request for a
waiver pursuant to PCX Rule 2.5(c)(4)
and make certain administrative
changes.
The Shortfall Fee and Credit
The ‘‘Shortfall Fee’’ is a fee that is
charged on the volume difference
between 12% of the total national
market share in an option issue for one
month and the percentage executed by
the Lead Market Maker (‘‘LMM’’). The
current Shortfall Fee is $0.35 per
contract. An LMM is currently entitled
to a ‘‘Shortfall Credit’’ of $0.35 per
contract for any top 120 equity option
issues the LMM trades where the PCX
volume in the issue is higher than 12%
of the scaled national volume in that
issue for that month. The volume base
for the Shortfall Credit is the PCX
monthly volume for the issue less 12%
of the scaled monthly industry volume
for each qualifying issue. The Shortfall
Credit may be used by an LMM only to
offset a Shortfall Fee the LMM incurs for
the same month and may not be used to
offset other fees, or be carried forward
or applied retroactively to the Shortfall
Fee the LMM has incurred or will incur
for other months. For the purpose of
calculating the Shortfall Fee, the
national market share of any equity
option industry volume is capped at 2.9
million contracts per day. Shortfall Fee
billing commences after an issue
completes the first four full months of
trading under an LMM.
The Exchange is proposing to
eliminate the Shortfall Fee and the
corresponding Shortfall Credit in their
entirety. The Exchange believes that the
elimination of the Shortfall Fee is
appropriate in order to make the PCX
more competitive and to add liquidity to
the marketplace. The Exchange intends
to provide all LMMs with a rebate for
fees paid in the months of October and
November 2004.
DOEA Fee
Previously, the PCX contracted with
the NASD to conduct all DOEA
examinations for the Exchange. The
Exchange would pass along the cost of
the examination plus 17% to the entity
that was examined. NASD has stopped
providing this service to the Exchange,
and the Exchange no longer monitors
any firms that require DOEA
examinations. Accordingly, the
Exchange is proposing to eliminate the
DOEA fee from the Schedule.
$500 Application Fee for a Request for
a Waiver Pursuant to PCX Rule 2.5(c)(4)
The Exchange’s Shareholder and
Registration Services Department has
received numerous questions about the
PO 00000
Frm 00134
Fmt 4703
Sfmt 4703
application of the $500 application fee
for a request for a waiver pursuant to
PCX Rule 2.5(c)(4). Option Trading
Permit Holders (‘‘OTP Holders’’) and
applicants have expressed a desire for
further clarification as to the
circumstances under which they would
be subject to the fee. The purpose of the
fee is to allow the Exchange to recover
costs associated with independently
verifying each justification given by an
applicant as to why a waiver should be
granted.3 The fee does not apply to
circumstances where the Exchange only
has to verify that an applicant has
successfully completed an examination.
Therefore, the Exchange is proposing to
add clarifying language to the Schedule
that states the fee does not apply when
the request only involves validating that
an applicant has successfully completed
a qualifying examination.
Administrative Changes
The Exchange is proposing certain
changes to the Schedule that will
eliminate typographical errors, correct
grammatical errors and amend calendar
references. In addition, the Exchange is
proposing certain clarifying language
that is designed to make the Schedule
easier to comprehend. Specifically, the
Exchange is clarifying that for the
Vendor Equipment Room Usage Fee,
firms not using a full cabinet will not
pay the full fee. Instead such firms will
pay a pro rata portion thereof.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 4 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 5 in particular, in that the
proposal provides for the equitable
allocation of reasonable dues, fees and
other charges among the Exchange’s
OTP Holders and other persons using
the Exchange’s facilities for trading
option contracts.
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.
3 See Securities Exchange Act Release No. 50742
(November 29, 2004), 69 FR 70488 (December 6,
2004) (SR–PCX–2004–101).
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(4).
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Federal Register / Vol. 70, No. 20 / Tuesday, February 1, 2005 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 6 and Rule 19b–
4(f)(2) thereunder,7 because the
proposed rule change establishes or
changes a due, fee or other charge
applicable only to a member of the
Exchange. At any time within 60 days
of the filing of the proposed rule change,
the Commission may summarily
abrogate the rule change if it appears to
the Commission that the action is
necessary or appropriate in the public
interest, for the protection of investors,
or would otherwise further the purposes
of the Act.8
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–PCX–2004–125 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–2004–125. 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
6 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
8 For purposes 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 January 13, 2005, the
date the Exchange filed Amendment No. 2 to the
proposed rule change. See 15 U.S.C. 78s(b)(3)(C).
7 17
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15:06 Jan 31, 2005
Jkt 205001
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 Exchange. 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–2004–125 and should
be submitted on or before February 22,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–360 Filed 1–31–05; 8:45 am]
BILLING CODE 8010–01–U
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51080; File No. SR–Phlx–
2004–51]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Order Granting Approval to Proposed
Rule Change and Amendment No. 1
Thereto Relating to Phlx Regulation 5,
Visitors and Applicants
January 26, 2005.
On October 7, 2004, the Philadelphia
Stock Exchange, Inc. (‘‘Phlx’’ 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
update Phlx Regulation 5, Visitors and
Applicants, enacted as a rule of order
and decorum under Phlx Rule 60. On
December 6, 2004, Phlx filed
Amendment No. 1 to the proposed rule
PO 00000
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
15
Frm 00135
Fmt 4703
Sfmt 4703
5263
change.3 The proposed rule change, as
amended, was published for comment
in the Federal Register on December 22,
2004.4 The Commission received no
comments on the proposal.
Phlx is amending its Phlx Regulation
5 to more accurately reflect its current
practices. The Exchange amended Phlx
Regulation 5 in 1992 to create an
‘‘applicant’’ status for prospective
Exchange members.5 A person who fell
into the applicant category was issued
an Applicant Access Card and Floor
Badge that would allow for unescorted
floor access until the application
process was complete. Phlx no longer
issues such Applicant Access Cards and
Floor Badges to applicants, but instead
requires applicants to register as onfloor trading personnel pursuant to Phlx
Rule 620(b), Trading Floor Registration.
Applicants are now issued the same
access cards as are issued to Phlx
members, and their access to the floor
is governed by Phlx Rule 620(b), rather
than Regulation 5. Phlx proposes to
return Regulation 5 to its pre-1992
wording, which governs only guest
access to the floor. Phlx members who
do not adhere to the procedures set forth
in Regulation 5 would be subject to
sanction.
The Commission finds that the
proposed rule change, as amended, is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.6 In particular, the
Commission believes that the proposal
is consistent with Section 6(b)(5) of the
Act 7 because ensuring that
unauthorized persons do not have
improper access to the Exchange floor is
consistent with the protection of
investors and the public interest.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, 8 that the
proposed rule change (File No. SR–
Phlx–2004–51), as amended, be, and it
hereby is, approved.
3 Amendment No. 1 replaced the original filing in
its entirety. Amendment No. 1 clarified that
violations of Regulation 5 would be enforced
against members and not the guests themselves, and
added a description for the Applicant Access Card.
4 See Securities Exchange Act Release No. 50851
(December 14, 2004), 69 FR 76816.
5 See Securities Exchange Act Release No. 30416
(February 26, 1992), 57 FR 7836 (March 4, 1992)
(approving File No. SR–Phlx–91–06).
6 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
7 15 U.S.C. 78f(b)(5).
8 15 U.S.C. 78s(b)(2).
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]]>Agencies
[Federal Register Volume 70, Number 20 (Tuesday, February 1, 2005)]
[Notices]
[Pages 5261-5263]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-360]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51076; File No. SR-PCX-2004-125]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change and Amendment Nos. 1 and 2
Thereto by the Pacific Exchange, Inc. Relating to Exchange Fees and
Charges
January 25, 2005.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 5262]]
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 21, 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
January 12, 2005, the Exchange filed Amendment No. 1 to the proposed
rule change. On January 13, 2005, the Exchange filed Amendment No. 2 to
the proposed rule change. The Commission is publishing this notice to
solicit comments on the proposed rule change, as amended, from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its Schedule of Fees and Charges For
Exchange Services (``Schedule'') in order to eliminate the Shortfall
Fee and corresponding Shortfall Credit and the Designated Options
Examining Authority (``DOEA'') fee, add a clarifying change to the $500
application fee for a request for a waiver pursuant to PCX Rule
2.5(c)(4) and make certain administrative changes. The text of the
proposed rule change is available on the Exchange's Web site (https://
www.pacificex.com/legal/legal_pending.html), at the Exchange'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 Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange 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 is proposing to amend its Schedule in order to
eliminate the Shortfall Fee, as well as the corresponding Shortfall
Credit, and the DOEA fee, add a clarifying change to the $500
application fee for a request for a waiver pursuant to PCX Rule
2.5(c)(4) and make certain administrative changes.
The Shortfall Fee and Credit
The ``Shortfall Fee'' is a fee that is charged on the volume
difference between 12% of the total national market share in an option
issue for one month and the percentage executed by the Lead Market
Maker (``LMM''). The current Shortfall Fee is $0.35 per contract. An
LMM is currently entitled to a ``Shortfall Credit'' of $0.35 per
contract for any top 120 equity option issues the LMM trades where the
PCX volume in the issue is higher than 12% of the scaled national
volume in that issue for that month. The volume base for the Shortfall
Credit is the PCX monthly volume for the issue less 12% of the scaled
monthly industry volume for each qualifying issue. The Shortfall Credit
may be used by an LMM only to offset a Shortfall Fee the LMM incurs for
the same month and may not be used to offset other fees, or be carried
forward or applied retroactively to the Shortfall Fee the LMM has
incurred or will incur for other months. For the purpose of calculating
the Shortfall Fee, the national market share of any equity option
industry volume is capped at 2.9 million contracts per day. Shortfall
Fee billing commences after an issue completes the first four full
months of trading under an LMM.
The Exchange is proposing to eliminate the Shortfall Fee and the
corresponding Shortfall Credit in their entirety. The Exchange believes
that the elimination of the Shortfall Fee is appropriate in order to
make the PCX more competitive and to add liquidity to the marketplace.
The Exchange intends to provide all LMMs with a rebate for fees paid in
the months of October and November 2004.
DOEA Fee
Previously, the PCX contracted with the NASD to conduct all DOEA
examinations for the Exchange. The Exchange would pass along the cost
of the examination plus 17% to the entity that was examined. NASD has
stopped providing this service to the Exchange, and the Exchange no
longer monitors any firms that require DOEA examinations. Accordingly,
the Exchange is proposing to eliminate the DOEA fee from the Schedule.
$500 Application Fee for a Request for a Waiver Pursuant to PCX Rule
2.5(c)(4)
The Exchange's Shareholder and Registration Services Department has
received numerous questions about the application of the $500
application fee for a request for a waiver pursuant to PCX Rule
2.5(c)(4). Option Trading Permit Holders (``OTP Holders'') and
applicants have expressed a desire for further clarification as to the
circumstances under which they would be subject to the fee. The purpose
of the fee is to allow the Exchange to recover costs associated with
independently verifying each justification given by an applicant as to
why a waiver should be granted.\3\ The fee does not apply to
circumstances where the Exchange only has to verify that an applicant
has successfully completed an examination. Therefore, the Exchange is
proposing to add clarifying language to the Schedule that states the
fee does not apply when the request only involves validating that an
applicant has successfully completed a qualifying examination.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 50742 (November 29,
2004), 69 FR 70488 (December 6, 2004) (SR-PCX-2004-101).
---------------------------------------------------------------------------
Administrative Changes
The Exchange is proposing certain changes to the Schedule that will
eliminate typographical errors, correct grammatical errors and amend
calendar references. In addition, the Exchange is proposing certain
clarifying language that is designed to make the Schedule easier to
comprehend. Specifically, the Exchange is clarifying that for the
Vendor Equipment Room Usage Fee, firms not using a full cabinet will
not pay the full fee. Instead such firms will pay a pro rata portion
thereof.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \4\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \5\ in particular, in that the
proposal provides for the equitable allocation of reasonable dues, fees
and other charges among the Exchange's OTP Holders and other persons
using the Exchange's facilities for trading option contracts.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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.
[[Page 5263]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \6\ and Rule 19b-4(f)(2) thereunder,\7\
because the proposed rule change establishes or changes a due, fee or
other charge applicable only to a member of the Exchange. At any time
within 60 days of the filing of the proposed rule change, the
Commission may summarily abrogate the rule change if it appears to the
Commission that the action is necessary or appropriate in the public
interest, for the protection of investors, or would otherwise further
the purposes of the Act.\8\
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\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
\7\ 17 CFR 240.19b-4(f)(2).
\8\ For purposes 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 January 13, 2005, the date the Exchange filed
Amendment No. 2 to the proposed rule change. See 15 U.S.C.
78s(b)(3)(C).
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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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-PCX-2004-125 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-2004-125. 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 Exchange. 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-2004-125 and should be submitted on or before
February 22, 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. E5-360 Filed 1-31-05; 8:45 am]
BILLING CODE 8010-01-U
