Self-Regulatory Organizations; Order Approving Proposed Rule Change and Amendment Nos. 1 and 2 Thereto by the Pacific Exchange, Inc. and Notice of Filing and Order Granting Accelerated Approval to Amendment No. 3 Thereto Relating to a Proposed Listing Fee Schedule for Structured Products, 6489-6490 [E5-471]
Download as PDF
<![CDATA[
Federal Register / Vol. 70, No. 24 / Monday, February 7, 2005 / Notices
allow Participants to either gather
sufficient information to justify the need
for the pilot program or determine that
the exemption from trade-through
liability is no longer necessary.
Increasing the maximum number of
contracts to be satisfied with respect to
Satisfaction Orders in the last seven
minutes of trading in options to 50
contracts will enhance customer order
protection.
At any time within 60 days of the
filing of such proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
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–2005–08 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–2005–08. 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
VerDate jul<14>2003
21:04 Feb 04, 2005
Jkt 205001
available for inspection and copying at
the principal offices 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–2005–08 and should
be submitted on or before February 28,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–466 Filed 2–4–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51094; File No. SR–PCX–
2004–43]
Self-Regulatory Organizations; Order
Approving Proposed Rule Change and
Amendment Nos. 1 and 2 Thereto by
the Pacific Exchange, Inc. and Notice
of Filing and Order Granting
Accelerated Approval to Amendment
No. 3 Thereto Relating to a Proposed
Listing Fee Schedule for Structured
Products
January 28, 2005.
I. Introduction
On May 11, 2004, the Pacific
Exchange, Inc. (‘‘PCX’’) submitted to 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 its fee schedule to provide
separate listing fees for structured
products. PCX filed Amendment No. 1
to the proposed rule change on August
9, 2004.3 PCX filed Amendment No. 2
to the proposed rule change on August
23, 2004.4
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See letter from Tania Blanford, Regulatory
Policy, PCX, to Nancy J. Sanow, Assistant Director,
Division of Market Regulation (‘‘Division’’),
Commission, dated August 5, 2004 (‘‘Amendment
No. 1’’). Amendment No. 1 replaced and
superseded the original filing in its entirety. In
Amendment No. 1, PCX added a definition of
‘‘Structured Products’’ to the proposal and made
other clarifying changes.
4 See letter from Tania Blanford, Regulatory
Policy, PCX, to Nancy J. Sanow, Assistant Director,
Division, Commission, dated August 20, 2004
(‘‘Amendment No. 2’’). In Amendment No. 2, PCX
made a minor typographical correction to its
proposed rule text.
PO 00000
16 17
1 15
Frm 00083
Fmt 4703
Sfmt 4703
6489
The proposed rule change and
Amendment Nos. 1 and 2 were
published for comment in the Federal
Register on September 24, 2004.5 The
Commission received no comment
letters on the proposed rule change and
Amendment Nos. 1 and 2. PCX filed
Amendment No. 3 to the proposed rule
change on December 9, 2004.6 This
order approves the proposed rule
change and Amendment Nos. 1 and 2,
and issues notice of filing of, and
approves on an accelerated basis,
Amendment No. 3.
II. Description of the Proposed Rule
Change
The PCX, through its wholly-owned
subsidiary PCX Equities, Inc. (‘‘PCXE’’),
has proposed to adopt new listing fees
specifically for Structured Products
listed and traded on the Archipelago
Exchange. The proposed listing fees
include a non-refundable listing
application fee, initial listing fees, and
annual maintenance fees for Structured
Products. The proposal adds a
definition of ‘‘Structured Products’’ 7 to
the PCXE rules to clarify which
products would be assessed the
proposed listing fees.
In Amendment No. 3 to the proposed
rule change, PCX added definitions of
‘‘Exchange-Traded Fund’’ 8 and
‘‘Closed-End Fund’’ 9 to the PCXE rules
and a definition of ‘‘Funds’’ 10 to the
PCXE fee schedule. Amendment No. 3
also modified the proposed definition of
‘‘Structured Products.’’ Amendment No.
5 See Securities Exchange Act Release No. 50448
(October 1, 2004), 69 FR 58989.
6 In Amendment No. 3, PCX added definitions for
exchange-traded funds and closed-end funds and
added a statement to the fee schedule to clarify that
the term ‘‘Funds’’ refers to exchange-traded funds
and closed-end funds in order to properly
distinguish Funds from Structured Products.
7 As modified by Amendment No. 3, Structured
Products are defined as ‘‘products that are derived
from and/or based on a single security or securities,
a basket of stocks, an index, a commodity, debt
issuance and/or a foreign currency, among other
things’’ and would include ‘‘index and equity
linked notes, term notes and units generally
consisting of a contract to purchase equity and/or
debt securities at a specified time.’’
8 Amendment No. 3 defines Exchange-Traded
Funds as ‘‘unit investment trusts, portfolio
depository receipts and trust issued receipts
designed to track the performance of the broad
stock or bond market, stock industry sector, and
U.S. Treasury and corporate bonds, among other
things.’’
9 Amendment No. 3 defines Closed-End Funds
(‘‘CEFs’’) as ‘‘a type of investment company
registered under the Investment Company Act of
1940 that offers a fixed number of shares’’ that ‘‘are
professionally managed in accordance with the
CEF’s investment objectives and policies, and may
be invested in stocks, fixed income securities or a
combination of both.’’
10 Amendment No. 3 provides that ‘‘Funds’’, as
that term is used in the Fee Schedule, include
Exchange-Traded Funds and Closed-End Funds.
E:\FR\FM\07FEN1.SGM
07FEN1
6490
Federal Register / Vol. 70, No. 24 / Monday, February 7, 2005 / Notices
3 seeks to distinguish Structured
Products from Funds and to further
clarify the application of the different
listing fees.
IV. Discussion and Commission
Findings
After careful review, the Commission
finds that the proposed rule change, as
amended, is consistent with the Act and
III. Solicitation of Comments
the rules and regulations thereunder
applicable to a national securities
Interested persons are invited to
exchange.11 In particular, the
submit written data, views and
Commission finds that the proposed
arguments concerning Amendment No.
3, including whether Amendment No. 3 rule change, as amended, is consistent
with Section 6(b)(4) of the Act,12 which
is consistent with the Act. Comments
requires that a national securities
may be submitted by any of the
exchange’s rules provide for the
following methods:
equitable allocation of reasonable dues,
Electronic Comments
fees, and other charges among its
members and issuers and other persons
• (Use the Commission’s Internet
using its facilities.
comment form (https://www.sec.gov/
The Commission notes that the
rules/sro.shtml); or
proposed rule change would enact a
• (Send an e-mail to rulerevised fee schedule to provide separate
comments@sec.gov. Please include File
fees for the listing of structured
Number SR–PCX–2004–43 on the
products. The Commission also notes
subject line.
that the proposed fees would apply
indiscriminately to all issuers of
Paper Comments
structured products. The Commission
• (Send paper comments in triplicate believes that the revised fee schedule
should provide clarity to issuers
to Jonathan G. Katz, Secretary,
regarding the appropriate fees
Securities and Exchange Commission,
applicable to structured products.
450 Fifth Street, NW., Washington, DC
Therefore the Commission believes that
20549–0609.
the proposed rule change, as amended,
All submissions should refer to File
is consistent with the Act.
Number SR–PCX–2004–43. This file
The Commission finds good cause for
number should be included on the
accelerating approval of Amendment
subject line if e-mail is used. To help the No. 3 prior to the thirtieth day after
Commission process and review your
publication in the Federal Register. The
comments more efficiently, please use
Commission notes that the proposed
only one method. The Commission will rule change and Amendment Nos. 1 and
post all comments on the Commission’s 2 thereto were noticed for the full
Internet Web site (https://www.sec.gov/
comment period and that no comments
rules/sro.shtml). Copies of the
have been received on the proposal. The
submission, all subsequent
Commission further notes that
amendments, all written statements
Amendment No. 3 merely clarifies the
with respect to the proposed rule
proposal by adding definitions to its
change that are filed with the
rules to codify the application of the
Commission, and all written
various fees for the different derivative
communications relating to the
products. The Commission believes that
proposed rule change between the
accelerated approval should permit PCX
Commission and any person, other than to begin promptly to assess the new
those that may be withheld from the
listing fees for structured products. For
public in accordance with the
this reason, the Commission finds good
provisions of 5 U.S.C. 552, will be
cause exists, consistent with Section
available for inspection and copying in
19(b)(2) of the Act,13 to approve
the Commission’s Public Reference
Amendment No. 3 on an accelerated
Room, 450 Fifth Street, NW.,
basis.
Washington, DC 20549. Copies of such
V. Conclusion
filing also will be available for
inspection and copying at the principal
It is therefore ordered, pursuant to
office of the Exchange. All comments
Section 19(b)(2) of the Act,14 that the
received will be posted without change; proposed rule change (SR–PCX–2004–
the Commission does not edit personal
43), as amended by Amendment Nos. 1
identifying information from
11 In approving this proposed rule change, the
submissions. You should submit only
Commission notes that it has considered the
information that you wish to make
proposed rule’s impact on efficiency, competition,
available publicly. All submissions
and capital formation. See 15 U.S.C. 78c(f).
should refer to File Number SR–PCX–
12 15 U.S.C. 78f(b)(4).
13 15 U.S.C. 78s(b)(2).
2004–43 and should be submitted on or
14 Id.
before February 28, 2005.
VerDate jul<14>2003
21:04 Feb 04, 2005
Jkt 205001
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
and 2, is hereby approved, and that
Amendment No. 3 is hereby approved
on an accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–471 Filed 2–4–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51118; File No. SR–PCX–
2005–07]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
Pacific Exchange, Inc. Relating to the
OptiMark System
February 1, 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
20, 2005, the Pacific Exchange, Inc.
(‘‘PCX’’ or ‘‘Exchange’’), through its
wholly owned subsidiary PCX Equities,
Inc. (‘‘PCXE’’), filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange filed the
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(6) thereunder,4 which renders
the proposed rule change 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 Exchange proposes to amend its
rules governing the Archipelago
Exchange (‘‘ArcaEx’’), the equities
trading facility of PCXE. The Exchange
proposes to delete certain rules that
have been determined by the Exchange
as obsolete. The text of the proposed
rule change is available at the
Exchange’s Web site (https://
www.pacificex.com), at the Exchange’s
office of the secretary, and at the
Commission’s public reference room.
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
1 15
E:\FR\FM\07FEN1.SGM
07FEN1
]]>Agencies
[Federal Register Volume 70, Number 24 (Monday, February 7, 2005)]
[Notices]
[Pages 6489-6490]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-471]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51094; File No. SR-PCX-2004-43]
Self-Regulatory Organizations; Order Approving Proposed Rule
Change and Amendment Nos. 1 and 2 Thereto by the Pacific Exchange, Inc.
and Notice of Filing and Order Granting Accelerated Approval to
Amendment No. 3 Thereto Relating to a Proposed Listing Fee Schedule for
Structured Products
January 28, 2005.
I. Introduction
On May 11, 2004, the Pacific Exchange, Inc. (``PCX'') submitted to
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 its fee
schedule to provide separate listing fees for structured products. PCX
filed Amendment No. 1 to the proposed rule change on August 9, 2004.\3\
PCX filed Amendment No. 2 to the proposed rule change on August 23,
2004.\4\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See letter from Tania Blanford, Regulatory Policy, PCX, to
Nancy J. Sanow, Assistant Director, Division of Market Regulation
(``Division''), Commission, dated August 5, 2004 (``Amendment No.
1''). Amendment No. 1 replaced and superseded the original filing in
its entirety. In Amendment No. 1, PCX added a definition of
``Structured Products'' to the proposal and made other clarifying
changes.
\4\ See letter from Tania Blanford, Regulatory Policy, PCX, to
Nancy J. Sanow, Assistant Director, Division, Commission, dated
August 20, 2004 (``Amendment No. 2''). In Amendment No. 2, PCX made
a minor typographical correction to its proposed rule text.
---------------------------------------------------------------------------
The proposed rule change and Amendment Nos. 1 and 2 were published
for comment in the Federal Register on September 24, 2004.\5\ The
Commission received no comment letters on the proposed rule change and
Amendment Nos. 1 and 2. PCX filed Amendment No. 3 to the proposed rule
change on December 9, 2004.\6\ This order approves the proposed rule
change and Amendment Nos. 1 and 2, and issues notice of filing of, and
approves on an accelerated basis, Amendment No. 3.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 50448 (October 1,
2004), 69 FR 58989.
\6\ In Amendment No. 3, PCX added definitions for exchange-
traded funds and closed-end funds and added a statement to the fee
schedule to clarify that the term ``Funds'' refers to exchange-
traded funds and closed-end funds in order to properly distinguish
Funds from Structured Products.
---------------------------------------------------------------------------
II. Description of the Proposed Rule Change
The PCX, through its wholly-owned subsidiary PCX Equities, Inc.
(``PCXE''), has proposed to adopt new listing fees specifically for
Structured Products listed and traded on the Archipelago Exchange. The
proposed listing fees include a non-refundable listing application fee,
initial listing fees, and annual maintenance fees for Structured
Products. The proposal adds a definition of ``Structured Products'' \7\
to the PCXE rules to clarify which products would be assessed the
proposed listing fees.
---------------------------------------------------------------------------
\7\ As modified by Amendment No. 3, Structured Products are
defined as ``products that are derived from and/or based on a single
security or securities, a basket of stocks, an index, a commodity,
debt issuance and/or a foreign currency, among other things'' and
would include ``index and equity linked notes, term notes and units
generally consisting of a contract to purchase equity and/or debt
securities at a specified time.''
---------------------------------------------------------------------------
In Amendment No. 3 to the proposed rule change, PCX added
definitions of ``Exchange-Traded Fund'' \8\ and ``Closed-End Fund'' \9\
to the PCXE rules and a definition of ``Funds'' \10\ to the PCXE fee
schedule. Amendment No. 3 also modified the proposed definition of
``Structured Products.'' Amendment No.
[[Page 6490]]
3 seeks to distinguish Structured Products from Funds and to further
clarify the application of the different listing fees.
---------------------------------------------------------------------------
\8\ Amendment No. 3 defines Exchange-Traded Funds as ``unit
investment trusts, portfolio depository receipts and trust issued
receipts designed to track the performance of the broad stock or
bond market, stock industry sector, and U.S. Treasury and corporate
bonds, among other things.''
\9\ Amendment No. 3 defines Closed-End Funds (``CEFs'') as ``a
type of investment company registered under the Investment Company
Act of 1940 that offers a fixed number of shares'' that ``are
professionally managed in accordance with the CEF's investment
objectives and policies, and may be invested in stocks, fixed income
securities or a combination of both.''
\10\ Amendment No. 3 provides that ``Funds'', as that term is
used in the Fee Schedule, include Exchange-Traded Funds and Closed-
End Funds.
---------------------------------------------------------------------------
III. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning Amendment No. 3, including whether Amendment No. 3
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-2004-43 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-2004-43. 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, 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
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-
2004-43 and should be submitted on or before February 28, 2005.
IV. Discussion and Commission Findings
After careful review, the Commission finds that the proposed rule
change, as amended, is consistent with the Act and the rules and
regulations thereunder applicable to a national securities
exchange.\11\ In particular, the Commission finds that the proposed
rule change, as amended, is consistent with Section 6(b)(4) of the
Act,\12\ which requires that a national securities exchange's rules
provide for the equitable allocation of reasonable dues, fees, and
other charges among its members and issuers and other persons using its
facilities.
---------------------------------------------------------------------------
\11\ 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).
\12\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Commission notes that the proposed rule change would enact a
revised fee schedule to provide separate fees for the listing of
structured products. The Commission also notes that the proposed fees
would apply indiscriminately to all issuers of structured products. The
Commission believes that the revised fee schedule should provide
clarity to issuers regarding the appropriate fees applicable to
structured products. Therefore the Commission believes that the
proposed rule change, as amended, is consistent with the Act.
The Commission finds good cause for accelerating approval of
Amendment No. 3 prior to the thirtieth day after publication in the
Federal Register. The Commission notes that the proposed rule change
and Amendment Nos. 1 and 2 thereto were noticed for the full comment
period and that no comments have been received on the proposal. The
Commission further notes that Amendment No. 3 merely clarifies the
proposal by adding definitions to its rules to codify the application
of the various fees for the different derivative products. The
Commission believes that accelerated approval should permit PCX to
begin promptly to assess the new listing fees for structured products.
For this reason, the Commission finds good cause exists, consistent
with Section 19(b)(2) of the Act,\13\ to approve Amendment No. 3 on an
accelerated basis.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\14\ that the proposed rule change (SR-PCX-2004-43), as amended by
Amendment Nos. 1 and 2, is hereby approved, and that Amendment No. 3 is
hereby approved on an accelerated basis.
---------------------------------------------------------------------------
\14\ Id.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-471 Filed 2-4-05; 8:45 am]
BILLING CODE 8010-01-P
