Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto by the Pacific Exchange, Inc. Relating to Arbitration Fees, 6063-6065 [E5-434]
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Federal Register / Vol. 70, No. 23 / Friday, February 4, 2005 / Notices
the Act,12 which requires, among other
things, that NASD’s rules be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. NASD believes that the
procedures to hear denial of access
complaints would maintain the integrity
of the ADF and provide a fair process
for review.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASD does not believe that the
proposed rule change, as amended,
would 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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding, or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
A. By order approve such proposed
rule change, or
B. institute proceedings to determine
whether the proposed rule change
should be disapproved.
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send e-mail to rulecomments@sec.gov. Please include File
Number SR-NASD–2004–159 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-NASD–2004–159. 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 such filing will also be
available for inspection and copying at
the principal office of NASD. 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-NASD–2004–159 and
should be submitted on or before
February 25, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–431 Filed 2–3–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51102; File No. SR–PCX–
2004–118]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change and
Amendment No. 1 Thereto by the
Pacific Exchange, Inc. Relating to
Arbitration Fees
January 28, 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 December
2, 2004, 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 the Exchange. On January
28, 2005, the Exchange filed
Amendment No. 1 to the proposed rule
change. 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
PCX is proposing to amend the PCX
Options and PCX Equities, Inc.
arbitration fees (‘‘Options Fees’’ and
‘‘PCXE Fees,’’ respectively) with respect
to fees that only affect OTP Holders and
OTP Firms 3 and ETP Holders.4 The text
of the proposed rule change is available
on the PCX Web site (https://
www.pacificex.com/legal/docs/prf/
2004/SR–PCX–2004–118.pdf), at the
principal office of the PCX, and in 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. 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
Purpose
The Exchange proposes to amend its
arbitration fees with respect to OTP
Holders and Firms and ETP Holders to
increase and, in some instances, add
arbitration-related fees. The proposed
amendments are based on the National
Association of Securities Dealers’
(‘‘NASD’s’’) arbitration fees.
The Exchange’s arbitration program
offers a comparable level of service to
that of the NASD and is one of the
competing forums for securities
arbitration. The Exchange sought to
amend its fees in 2002,5 but due to the
U.S.C. 78o–3(b)(6).
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13 17
3 See
1 15
12 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
4 See
Frm 00101
Fmt 4703
Sfmt 4703
6063
PCX Rule 1(q)–(r).
PCXE Rule 1(n).
5 See SR–PCX–2002–45.
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Federal Register / Vol. 70, No. 23 / Friday, February 4, 2005 / Notices
uncertainty of arbitration programs in
California, the Exchange withdrew the
filing and retained its then-current fee
structure. As a result, the Exchange’s
arbitration fees remain deficient as
compared to the fees that other selfregulatory organizations charge for
arbitration. Thus, the Exchange
proposes to modify its fees with respect
to OTP Holders and OTP Firms and ETP
Holders in order to bring its fees in line
with competing forums as well as
recover costs associated with the PCX
arbitration program.
1. OTP Firm or OTP Holder
Controversies/ETP Controversies
The Exchange proposes to amend the
fee schedules applicable to ‘‘OTP Firm
or OTP Holder Controversies’’ under
PCX Rule 12.31 for the Options Fees
and ‘‘ETP Holder Controversies’’ under
PCXE Rule 12.32 for the PCXE Fees.
These fee schedules apply to cases that
are between OTP Holders and Firms or
associated persons thereof, or between
ETP Holders or associated persons
thereof. The Exchange proposes to
modify the required fee for the Amount
in Dispute, Filing Fee, Simplified (No
Hearing) Fee, and the Hearing Session
Deposit. These fee modifications are
identical to the current fees imposed at
the NASD.6
2. Pre-Hearing and Hearing Process Fees
The Exchange proposes new PCX
Rule 12.33 and new PCXE Rule 12.32(k)
to adopt pre-hearing and hearing
process fees that mirror the fees charged
by the NASD.7 The Exchange proposes
that each OTP Holder, OTP Firm, or
ETP Holder that is a party to an
arbitration proceeding in which more
than $25,000 is in dispute pay a nonrefundable pre-hearing process fee of
$750, due at the time the parties are sent
notification of the arbitration panel.
Thereafter, a non-refundable hearing
process fee will be due when the parties
are notified of the date and location of
the first hearing session in accordance
with the proposed hearing process fee
schedule. If an associated person of an
OTP Holder, OTP Firm or ETP Holder
is a party, the OTP Holder, OTP Firm,
or the ETP Holder that employed the
associated person at the time of the
events which gave rise to the dispute,
claim or controversy will be charged the
process fees, even if the OTP Holder,
OTP Firm, or ETP Holder is not a party.
These processing fees will bring
revenue to the Exchange and
compensate the Exchange at an earlier
stage of the arbitration process. The
6 See
7 See
processing fees are particularly
important because much of the time and
money spent by the Exchange to
administer cases is required during the
first months of the arbitration process.
3. Surcharge
The Exchange proposes to amend PCX
Rule 12.32(c) and PCXE Rule 12.33(c) in
order to modify the OTP Holder/OTP
Firm Surcharge and ETP Holder
Surcharge, respectively. The surcharge
will continue to be based on the amount
in dispute. The Exchange proposes to
amend PCX Rule 12.32(a) and PCXE
Rule 12.33(a) to provide that these
surcharges may be refundable in an
arbitration filed by a customer if the
arbitration panel: (1) Denies all of the
customer’s claims against the OTP
Holder, OTP Firm, ETP Holder, or
associated person, and (2) allocates all
forum fees assessed pursuant to PCX
Rule 12.31 or PCXE Rule 12.32 against
the customer. The Director may also
refund or cancel the OTP Holder/OTP
Firm Surcharge or the ETP Holder
Surcharge in other extraordinary
circumstances. The Exchange believes it
is appropriate to modify the surcharge
in order to bring the surcharge up to
date and ensure sufficient cost recovery
associated with the PCX arbitration
program.
Basis
The Exchange believes that the
proposal is consistent with Section
6(b) 8 of the Act, in general, and Section
6(b)(4) 9 of the Act, in particular, in that
it provides for the equitable allocation
of reasonable dues, fees and other
charges among the Exchange’s OTP
Holders, OTP Firms, ETP Holders, and
other persons using the Exchange’s
facilities.
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
Written comments on the proposed
rule change were neither solicited nor
received.
8 15
NASD Rule 10205(k).
NASD Rule 10333(b).
VerDate jul<14>2003
18:52 Feb 03, 2005
9 15
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PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
Frm 00102
Fmt 4703
Sfmt 4703
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) 10 of the Act and
subparagraph (f) of Rule 19b–4
thereunder,11 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 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 purpose of the
Act.12
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–PCX–2004–118 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
No. SR–PCX–2004–118. 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
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
12 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 28, 2005, the
date on which the Exchange filed Amendment No.
1 to the proposed rule change. See 15 U.S.C.
78s(b)(3)(C).
11 17
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Federal Register / Vol. 70, No. 23 / Friday, February 4, 2005 / Notices
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, 450 Fifth Street, NW.,
Washington, DC 20549–0609. Copies of
such filing will also 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 No. SR–PCX–2004–
118 and should be submitted on or
before February 25, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–434 Filed 2–3–05; 8:45 am]
BILLING CODE 8010–01–P
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
Request for Public Comment
Regarding Andean Trade Promotion
and Drug Eradication Act (ATPDEA)
Beneficiary Countries
Office of the United States
Trade Representative.
ACTION: Notice; request for comments.
AGENCY:
SUMMARY: In compliance with section
203(f) of the Andean Trade Preference
Act (ATPA) (19 U.S.C. 3201), as
amended by the Andean Trade
Promotion and Drug Eradication Act ,
the Office of the United States Trade
Representative (USTR) is requesting the
views of interested parties on whether
the countries designated as ATPA
beneficiary countries in Presidential
Proclamation 7616 of October 31, 2002,
are meeting the eligibility criteria
provided for in section 204(b)(6)(B) of
the ATPA. This information will be
used in the preparation of a report to the
U.S. Congress on the operation of the
program.
Public comments are due at
USTR no later than 5 p.m., March 18,
2005.
ADDRESSES: Submissions by electronic
mail: FR0518@USTR.EOP.GOV.
DATES:
13 17
CFR 200.30–3(a)(12).
VerDate jul<14>2003
18:52 Feb 03, 2005
Jkt 205001
Submissions by facsimile: Gloria Blue,
Executive Secretary, Trade Policy Staff
Committee, at (202) 395–6143. The
public is strongly encouraged to submit
documents electronically rather than by
facsimile. See requirements for
submissions below.
FOR FURTHER INFORMATION CONTACT:
Russell Smith, Office of the Americas,
Office of the United States Trade
Representative, 600 17th Street, NW.,
Room 523, Washington, DC 20508. The
telephone number is (202) 395–9450.
SUPPLEMENTARY INFORMATION: Signed
into law on August 6, 2002, the Trade
Act of 2002 contains, in title XXXI,
provisions for enhanced trade benefits
for eligible Andean countries. Titled the
‘‘Andean Trade Promotion and Drug
Eradication Act’’ (ATPDEA), the
ATPDEA renews the Andean Trade
Preference Act (ATPA), and amends the
ATPA to provide preferential treatment
for certain products previously
excluded from such treatment. In
Presidential Proclamation 7616 of
October 31, 2002, the President
designated Bolivia, Colombia, Ecuador
and Peru as ATPA beneficiary countries.
Section 203(f) of the ATPA requires the
USTR, not later than April 30, 2005, to
submit to Congress a report on the
operation of the ATPA. Section 203(f)(2)
requires USTR, before submitting such
report, to request comments on whether
beneficiary countries are meeting the
criteria set forth in section 204(b)(6)(B)
(which incorporates by reference the
criteria set forth in sections 203(c) and
(d)). USTR refers interested parties to
the Federal Register notice published
on August 15, 2002 (67 FR 53379), for
a full list of the eligibility criteria.
Requirements for Submissions. In
order to facilitate prompt processing of
submissions, the Office of the United
States Trade Representative strongly
urges and prefers electronic (e-mail)
submissions in response to this notice.
In the event that an e-mail submission
is impossible, submissions should be
made by facsimile.
Persons making submissions by email should use the following subject
line: ‘‘ATPA Beneficiary Countries.’’
Documents should be submitted as
either WordPerfect, MSWord, or text
(.TXT) files. Spreadsheets submitted as
supporting documentation are
acceptable as Quattro Pro or Excel files.
If any document submitted
electronically contains business
confidential information, the file name
of the business confidential version
should begin with the characters ‘‘BC-,’’
and the file name of the public version
should begin with the characters ‘‘P-.’’
The ‘‘P-’’ or ‘‘BC-’’ should be followed
PO 00000
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6065
by the name of the submitter. Persons
who make submissions by e-mail should
not provide separate cover letters;
information that might appear in a cover
letter should be included in the
submission itself. To the extent
possible, any attachments to the
submission should be included in the
same file as the submission itself, and
not as separate files.
Written comments, notice of
testimony, and testimony will be placed
in a file open to public inspection
pursuant to 15 CFR 2003.5, except
business confidential information
exempt from public inspection in
accordance with 15 CFR 2003.6.
Business confidential information
submitted in accordance with 15 CFR
2003.6 must be clearly marked
‘‘BUSINESS CONFIDENTIAL’’ at the top
of each page, including any cover letter
or cover page, and must be accompanied
by a non-confidential summary of the
confidential information. All public
documents and non-confidential
summaries shall be available for public
inspection in the USTR Reading Room.
The USTR Reading Room is open to the
public, by appointment only, from 10
a.m. to noon and 1 p.m. to 4 p.m.,
Monday through Friday. An
appointment to review the file must be
scheduled at least 48 hours in advance
and may be made by calling (202) 395–
6186.
Carmen Suro-Bredie,
Chairman, Trade Policy Staff Committee.
[FR Doc. 05–2188 Filed 2–3–05; 8:45 am]
BILLING CODE 3190–W5–P
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
Notice of List of Products Subject to
Possible Withdrawal of Concessions in
Response to European Union (EU)
Changes to Its Rice Import Regime
Office of the United States
Trade Representative.
ACTION: Notice.
AGENCY:
SUMMARY: In response to the European
Union’s changes to its rice import
regime, the United States has notified
the World Trade Organization of its
intent to withdraw concessions by
March 1, 2005, with respect to the goods
in the attached list.
Background: In Federal Register
notices 04–20543, dated September 10,
2004, 04–21762 and dated September
28, 2004, the Office of the U.S. Trade
Representative sought comments
concerning a list of goods for which
tariff concessions may be withdrawn
and duties may be increased in the
E:\FR\FM\04FEN1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 23 (Friday, February 4, 2005)]
[Notices]
[Pages 6063-6065]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-434]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51102; File No. SR-PCX-2004-118]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto by
the Pacific Exchange, Inc. Relating to Arbitration Fees
January 28, 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 December 2, 2004, 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 the
Exchange. On January 28, 2005, the Exchange filed Amendment No. 1 to
the proposed rule change. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
PCX is proposing to amend the PCX Options and PCX Equities, Inc.
arbitration fees (``Options Fees'' and ``PCXE Fees,'' respectively)
with respect to fees that only affect OTP Holders and OTP Firms \3\ and
ETP Holders.\4\ The text of the proposed rule change is available on
the PCX Web site (https://www.pacificex.com/legal/docs/prf/2004/SR-PCX-
2004-118.pdf), at the principal office of the PCX, and in the
Commission's Public Reference Room.
---------------------------------------------------------------------------
\3\ See PCX Rule 1(q)-(r).
\4\ See PCXE Rule 1(n).
---------------------------------------------------------------------------
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. 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
Purpose
The Exchange proposes to amend its arbitration fees with respect to
OTP Holders and Firms and ETP Holders to increase and, in some
instances, add arbitration-related fees. The proposed amendments are
based on the National Association of Securities Dealers' (``NASD's'')
arbitration fees.
The Exchange's arbitration program offers a comparable level of
service to that of the NASD and is one of the competing forums for
securities arbitration. The Exchange sought to amend its fees in
2002,\5\ but due to the
[[Page 6064]]
uncertainty of arbitration programs in California, the Exchange
withdrew the filing and retained its then-current fee structure. As a
result, the Exchange's arbitration fees remain deficient as compared to
the fees that other self-regulatory organizations charge for
arbitration. Thus, the Exchange proposes to modify its fees with
respect to OTP Holders and OTP Firms and ETP Holders in order to bring
its fees in line with competing forums as well as recover costs
associated with the PCX arbitration program.
---------------------------------------------------------------------------
\5\ See SR-PCX-2002-45.
---------------------------------------------------------------------------
1. OTP Firm or OTP Holder Controversies/ETP Controversies
The Exchange proposes to amend the fee schedules applicable to
``OTP Firm or OTP Holder Controversies'' under PCX Rule 12.31 for the
Options Fees and ``ETP Holder Controversies'' under PCXE Rule 12.32 for
the PCXE Fees. These fee schedules apply to cases that are between OTP
Holders and Firms or associated persons thereof, or between ETP Holders
or associated persons thereof. The Exchange proposes to modify the
required fee for the Amount in Dispute, Filing Fee, Simplified (No
Hearing) Fee, and the Hearing Session Deposit. These fee modifications
are identical to the current fees imposed at the NASD.\6\
2. Pre-Hearing and Hearing Process Fees
The Exchange proposes new PCX Rule 12.33 and new PCXE Rule 12.32(k)
to adopt pre-hearing and hearing process fees that mirror the fees
charged by the NASD.\7\ The Exchange proposes that each OTP Holder, OTP
Firm, or ETP Holder that is a party to an arbitration proceeding in
which more than $25,000 is in dispute pay a non-refundable pre-hearing
process fee of $750, due at the time the parties are sent notification
of the arbitration panel. Thereafter, a non-refundable hearing process
fee will be due when the parties are notified of the date and location
of the first hearing session in accordance with the proposed hearing
process fee schedule. If an associated person of an OTP Holder, OTP
Firm or ETP Holder is a party, the OTP Holder, OTP Firm, or the ETP
Holder that employed the associated person at the time of the events
which gave rise to the dispute, claim or controversy will be charged
the process fees, even if the OTP Holder, OTP Firm, or ETP Holder is
not a party.
---------------------------------------------------------------------------
\6\ See NASD Rule 10205(k).
\7\ See NASD Rule 10333(b).
---------------------------------------------------------------------------
These processing fees will bring revenue to the Exchange and
compensate the Exchange at an earlier stage of the arbitration process.
The processing fees are particularly important because much of the time
and money spent by the Exchange to administer cases is required during
the first months of the arbitration process.
3. Surcharge
The Exchange proposes to amend PCX Rule 12.32(c) and PCXE Rule
12.33(c) in order to modify the OTP Holder/OTP Firm Surcharge and ETP
Holder Surcharge, respectively. The surcharge will continue to be based
on the amount in dispute. The Exchange proposes to amend PCX Rule
12.32(a) and PCXE Rule 12.33(a) to provide that these surcharges may be
refundable in an arbitration filed by a customer if the arbitration
panel: (1) Denies all of the customer's claims against the OTP Holder,
OTP Firm, ETP Holder, or associated person, and (2) allocates all forum
fees assessed pursuant to PCX Rule 12.31 or PCXE Rule 12.32 against the
customer. The Director may also refund or cancel the OTP Holder/OTP
Firm Surcharge or the ETP Holder Surcharge in other extraordinary
circumstances. The Exchange believes it is appropriate to modify the
surcharge in order to bring the surcharge up to date and ensure
sufficient cost recovery associated with the PCX arbitration program.
Basis
The Exchange believes that the proposal is consistent with Section
6(b) \8\ of the Act, in general, and Section 6(b)(4) \9\ of the Act, in
particular, in that it provides for the equitable allocation of
reasonable dues, fees and other charges among the Exchange's OTP
Holders, OTP Firms, ETP Holders, and other persons using the Exchange's
facilities.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 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.
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 were neither solicited
nor received.
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) \10\ of the Act and subparagraph (f) of Rule 19b-4
thereunder,\11\ 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 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 purpose of the Act.\12\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f).
\12\ 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 28, 2005, the date on which the Exchange
filed Amendment No. 1 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, 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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-PCX-2004-118 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 No. SR-PCX-2004-118. 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
[[Page 6065]]
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, 450 Fifth Street, NW., Washington,
DC 20549-0609. Copies of such filing will also 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 No. SR-PCX-2004-118 and should be
submitted on or before February 25, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-434 Filed 2-3-05; 8:45 am]
BILLING CODE 8010-01-P
