Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. Relating to Fees for Late FOCD Forms, 10013-10015 [E5-808]
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10013
Federal Register / Vol. 70, No. 39 / Tuesday, March 1, 2005 / Notices
IV. Commission’s Findings and Order
Granting Accelerated Approval of
Proposed Rule Change
After careful consideration, 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.15 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,16 which requires,
among other things, that the rules of a
national securities exchange be
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanisms of a free and
open market and to protect investors
and the public interest.
The Commission notes that standard
position and exercise limits have not
been increased in six years, during
which time overall options market
volume has continually increased, and
the number of accounts that approach
the current limits, exceed them, and are
granted exemptions from the limits has
also increased. The CBOE believes,
among other things, that restrictive
position limits result in lost liquidity by
preventing large customers from using
options to gain meaningful exposure to
individual stocks. In view of the
Exchange’s representations concerning
its surveillance procedures and
capabilities of identifying unusual or
illegal trading activity, as well as other
protections against market manipulation
noted in the proposal, the Commission
believes that it is appropriate at this
time to approve the proposed increases
in position and exercise limits for a
pilot program of six months.
The Commission also believes that the
proposal to implement the ‘‘reverse
collar’’ hedge exemption is consistent
with the existing hedge exemption
relating to the ‘‘collar’’ strategy, which
has already been approved by the
Commission. The additional
amendments appropriately adjust the
requirement that the Exchange post
reasonable notice of new position limits
to reflect current technology, and
eliminate an inaccuracy in the Exchange
rules.
The CBOE has requested that the
Commission find good cause for
approving the proposed rule change
prior to the thirtieth day after
publication of notice thereof in the
Federal Register. The Commission
believes that it is appropriate to
accelerate approval of the proposed rule
change so that the pilot program,
intended to ease restrictions that inhibit
liquidity in the options market,
consistent with the protection of
investors, may begin without delay.
Accordingly, the Commission finds
good cause, pursuant to Section 19(b)(2)
of the Act,17 for approving the proposed
rule change, as amended, prior to the
thirtieth day after the date of
publication of notice thereof in the
Federal Register.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,18 that the
proposed rule change (SR–CBOE–2003–
30), as amended, is hereby approved on
an accelerated basis for a pilot period to
expire on August 23, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.19
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–807 Filed 2–28–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51243; File No. SR–PCX–
2004–130]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
Pacific Exchange, Inc. Relating to Fees
for Late FOCD Forms
February 23, 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
23, 2004, the Pacific Exchange, Inc.
(‘‘PCX’’ or ‘‘Exchange’’), through its
wholly owned subsidiary PCX Equities,
Inc. (‘‘PCXE’’), 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 self-regulatory
organization. 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 which
15 In
approving this proposal, the Commission has
considered its impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
16 15 U.S.C. 78f(b)(4).
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14:21 Feb 28, 2005
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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 proposes to amend the PCXE
rules to adopt new fees for late
Financial and Operational Compliance
Department (‘‘FOCD’’) required forms.
The text of the proposed rule change is
below. Proposed new language is in
italics. Proposed deletions are in
brackets.
Rules of the Pacific Exchange, Inc.
Rule 11
Business Conduct
*
*
*
*
*
Prevention of the Misuse of Material,
Nonpublic Information
Rule 11.3(a) Every OTP Holder or
OTP Firm must establish, maintain and
enforce written policies and procedures
reasonably designed, taking into
consideration the nature of such OTP
Holder or OTP Firm’s business, to
prevent the misuse of material, nonpublic information by such OTP Holder
or OTP Firm or persons associated with
such OTP Holder or OTP Firm. OTP
Holders or OTP Firms for whom the
Exchange is the Designated Examining
Authority (‘‘DEA’’) that are required,
pursuant to Rule 4.5, to file SEC form
X–17A–5, with the Exchange on an
annual or more frequent basis must file
contemporaneously with the submission
for the calendar year end ITSFEA
compliance acknowledgments stating
that the procedures mandated by this
Rule have been established, enforced
and maintained. Any OTP Holder or
OTP Firm or Associated Person who
becomes aware of a possible misuse of
material, non-public information must
promptly notify the Exchange’s Options
Surveillance Department.
(b) Any OTP Holder or OTP Firm who
fails to file a compliance
acknowledgment form in a timely
manner shall be subject to a late filing
charge of $500.00 for each occurrence.
Repeated or aggravated failure to file
may be referred to the Enforcement
Department for appropriate disciplinary
action.
Commentary .01–.03—No change.
17 15
U.S.C. 78s(b)(2).
18 15 U.S.C. 78s(b)(2).
19 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).
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*
*
*
*
*
Disclosure of Financial Arrangements of
OTP Holders
Rule 11.11(a)—No change.
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Federal Register / Vol. 70, No. 39 / Tuesday, March 1, 2005 / Notices
(b) OTP Holders and OTP Firms with
financial arrangements must submit to
the Exchange notification of the
initiation, modification or termination
of such financial arrangements in a
form, time and manner approved by the
Exchange within ten business days of
the effective date of such arrangements
or within such shorter period of time as
the Exchange may require. Any OTP
Holder or OTP Firm who fails to file as
such in a timely manner shall be subject
to a late filing charge of $500.00 for
each occurrence. Repeated or
aggravated failure to file may be referred
to the Enforcement Department for
appropriate disciplinary action. [Failure
to disclose the terms of such financial
arrangements to the Exchange may
result in disciplinary action.]
*
*
*
*
*
Rules of PCX Equities, Inc.
Rule 6
Business Conduct
*
*
*
*
*
Prevention of the Misuse of Material,
Nonpublic Information
Rule 6.3(a) Every ETP Holder must
establish, maintain and enforce written
policies and procedures reasonably
designed, taking into consideration the
nature of such ETP Holder’s business, to
prevent the misuse of material, nonpublic information by such ETP Holder
or persons associated with such ETP
Holder. ETP Holders for whom the
Corporation is the Designated
Examining Authority (‘‘DEA’’) that are
required, pursuant to Rule 4.5, to file
SEC form X–17A–5, with the
Corporation on an annual or more
frequent basis must file
contemporaneously with the submission
for the calendar year end ITSFEA
compliance acknowledgments stating
that the procedures mandated by this
Rule have been established, enforced
and maintained. Any ETP Holder or
Associated Persons who becomes aware
of a possible misuse of material, nonpublic information must promptly
notify the Corporation’s Surveillance
Department.
(b) Any ETP Holder who fails to file
a compliance acknowledgment form in
a timely manner shall be subject to a
late filing charge of $500.00 for each
occurrence. Repeated or aggravated
failure to file may be referred to the
Enforcement Department for
appropriate disciplinary action.
Commentary .01–.03—No change.
*
*
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*
*
*
14:21 Feb 28, 2005
Jkt 205001
Disclosure of Financial Arrangements
Rule 6.11(a)—No change.
(b) ETP Holders with financial
arrangements must submit to the
Corporation notification of the
initiation, modification or termination
of such financial arrangements in a
form, time and manner approved by the
Corporation within ten business days of
the effective date of such arrangements
or within such shorter period of time as
the Corporation may require. Any ETP
Holder who fails to file as such in a
timely manner shall be subject to a late
filing charge of $500.00 for each
occurrence. Repeated or aggravated
failure to file may be referred to the
Enforcement Department for
appropriate disciplinary action. [Failure
to disclose the terms of such financial
arrangements to the Corporation may
result in disciplinary action.]
material, non-public information by the
respective Holder or persons associated
with such Holder. Holders for whom the
Exchange is the Designated Examining
Authority that are required, under PCX
and PCXE Rule 4.5, to file SEC Form X–
17A–5 with the Exchange on an annual
basis must file contemporaneously with
the submission for the calendar year end
ITSFEA compliance acknowledgments
stating that the procedures mandated by
PCX Rule 11.3 or PCXE 6.3 have been
established, enforced and maintained.
The Exchange proposes to assess a late
filing fee of $500 for each occurrence to
any Holder who fails to file the Annual
Compliance Acknowledgement Form in
a timely manner. Repeated or aggravated
failure to file may be referred to the
Enforcement Department for appropriate
disciplinary action.
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
self-regulatory organization 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 self-regulatory organization has
prepared summaries, set forth in
sections A, B and C below, of the most
significant aspects of such statements.
2. Financial Arrangement Disclosure
Form
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Purpose
The Exchange proposes to adopt fees
for late filings of certain required FOCD
forms. Options Trading Permit (‘‘OTP’’)
Holders and OTP Firms and Equities
Trading Permit (‘‘ETP’’) Holders
(collectively, ‘‘Holders’’) are required to
file a number of FOCD related forms in
a timely manner. The Exchange believes
that timely submission of FOCD forms
is a serious matter and believes it is
necessary to assess late fees to
encourage Holders to file such forms in
a timely manner.
The Exchange proposes to adopt late
fees for the FOCD related forms
described below.
1. Annual Compliance
Acknowledgement Form
Under PCX Rule 11.3 and PCXE Rule
6.3, every Holder must establish,
maintain, and enforce written policies
and procedures to prevent the misuse of
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Sfmt 4703
Under PCX Rule 11.11 and PCXE
6.11, Holders with financial
arrangements are required to submit to
the Exchange notification of the
initiation, modification or termination
of such financial arrangements in a
form, time and manner approved by the
Exchange within ten business days of
the effective date of such arrangements.
The Exchange proposes to assess a $500
late fee to those Holders who fail to file
the Financial Arrangement Disclosure
Form in a timely manner. Repeated or
aggravated failure to file may be referred
to the Enforcement Department for
appropriate disciplinary action.
Basis
The Exchange believes that the
proposal is consistent with Section
6(b) 4 of the Act, in general, and Section
6(b)(4) 5 of the Act, in particular, in that
it provides for the equitable allocation
of reasonable dues, fees and other
charges among its OTP Holders, OTP
Firms, ETP Holders, issuers, and other
persons using its 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.
4 15
5 15
E:\FR\FM\01MRN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
01MRN1
Federal Register / Vol. 70, No. 39 / Tuesday, March 1, 2005 / Notices
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 foregoing rule change has become
effective pursuant to section
19(b)(3)(A)(ii) 6 of the Act and
subparagraph (f)(2) of Act Rule 19b–4
thereunder,7 because it is concerned
solely with the administration of the
Exchange. At any time within 60 days
of the filing of such proposed rule
change, the Commission could have
summarily abrogated such rule change if
it appeared to the Commission that such
action was necessary or appropriate in
the public interest, for the protection of
investors, or otherwise in furtherance 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–2004–130 on the
subject line.
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 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–2004–130 and should
be submitted on or before March 22,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–808 Filed 2–28–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51239; File No. SR–Phlx–
2005–13]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to SIG Indices, LLLP
February 22, 2005.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
Paper Comments
notice is hereby given that on February
• Send paper comments in triplicate
16, 2005, the Philadelphia Stock
to Jonathan G. Katz, Secretary,
Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’)
Securities and Exchange Commission,
filed with the Securities and Exchange
450 Fifth Street, NW., Washington, DC
Commission (‘‘Commission’’) the
20549–0609.
proposed rule change as described in
All submissions should refer to File
items I and II below, which items have
Number SR–PCX–2004–130. This file
been prepared by the Phlx. The
number should be included on the
subject line if e-mail is used. To help the Exchange has filed the proposal as a
‘‘non-controversial’’ rule change
Commission process and review your
pursuant to section 19(b)(3)(A) of the
comments more efficiently, please use
Act 3 and Rule 19b–4(f)(6) thereunder,4
only one method. Copies of the
submission, all subsequent
which renders it effective upon filing
amendments, all written statements
with the Commission. The Commission
with respect to the proposed rule
is publishing this notice to solicit
change that are filed with the
comments on the proposed rule change
Commission, and all written
from interested persons.
communications relating to the
proposed rule change between the
8 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
Commission and any person, other than
2 17
CFR 240.19b–4.
U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
6 15
U.S.C. 78s(b)(3)(A)(ii).
7 17 CFR 240.19b–4(f)(2).
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Phlx proposes to amend Phlx
Rule 1104A, SIG Indices, LLLP Indexes,
to add five new SIG indices licensed by
Susquehanna Indices, LLLP (‘‘SI’’) to the
Exchange. Phlx Rule 1104A provides
generally that SI makes no express or
implied warranty as to results to be
obtained by any person or entity from
the use of any of the SIG indexes, and
makes no express or implied warranties
of merchantability or fitness for a
particular purpose with respect to any
of the named indexes.
The text of the proposed rule change
is below. Proposed new language is in
italics; proposed deletions are in
[brackets].
*
*
*
*
*
Rule 1104A. SIG Indices, LLLP
[Indexes]
SIG Indices, LLLP makes no warranty,
express or implied, as to results to be
obtained by any person or any entity
from the use of the SIG Investment
Managers IndexTM, the SIG Cable, Media
& Entertainment IndexTM, the SIG
Casino Gaming IndexTM, the SIG
Semiconductor Equipment IndexTM,
[and ]the SIG Semiconductor Device
IndexTM, the SIG Specialty Retail
IndexTM, the SIG Steel Producers
IndexTM, the SIG Footwear & Athletic
IndexTM, the SIG Education IndexTM,
and the SIG Restaurant IndexTM or any
data included therein in connection
with the trading of option contracts
thereon, or for any other use. SIG
Indices, LLLP makes no express or
implied warranties of merchantability or
fitness for a particular purpose for use
with respect to the SIG Investment
Managers IndexTM, the SIG Cable, Media
& Entertainment IndexTM, the SIG
Casino Gaming IndexTM, the SIG
Semiconductor Equipment IndexTM,
[and ]the SIG Semiconductor Device
IndexTM, the SIG Specialty Retail
IndexTM, the SIG Steel Producers
IndexTM, the SIG Footwear & Athletic
IndexTM, the SIG Education IndexTM,
and the SIG Restaurant IndexTM or any
data included therein.
*
*
*
*
*
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
Phlx 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
E:\FR\FM\01MRN1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 39 (Tuesday, March 1, 2005)]
[Notices]
[Pages 10013-10015]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-808]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51243; File No. SR-PCX-2004-130]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc.
Relating to Fees for Late FOCD Forms
February 23, 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 23, 2004, the Pacific Exchange, Inc. (``PCX'' or
``Exchange''), through its wholly owned subsidiary PCX Equities, Inc.
(``PCXE''), 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 self-
regulatory organization. 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\ 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).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The PCX proposes to amend the PCXE rules to adopt new fees for late
Financial and Operational Compliance Department (``FOCD'') required
forms. The text of the proposed rule change is below. Proposed new
language is in italics. Proposed deletions are in brackets.
Rules of the Pacific Exchange, Inc.
Rule 11
Business Conduct
* * * * *
Prevention of the Misuse of Material, Nonpublic Information
Rule 11.3(a) Every OTP Holder or OTP Firm must establish, maintain
and enforce written policies and procedures reasonably designed, taking
into consideration the nature of such OTP Holder or OTP Firm's
business, to prevent the misuse of material, non-public information by
such OTP Holder or OTP Firm or persons associated with such OTP Holder
or OTP Firm. OTP Holders or OTP Firms for whom the Exchange is the
Designated Examining Authority (``DEA'') that are required, pursuant to
Rule 4.5, to file SEC form X-17A-5, with the Exchange on an annual or
more frequent basis must file contemporaneously with the submission for
the calendar year end ITSFEA compliance acknowledgments stating that
the procedures mandated by this Rule have been established, enforced
and maintained. Any OTP Holder or OTP Firm or Associated Person who
becomes aware of a possible misuse of material, non-public information
must promptly notify the Exchange's Options Surveillance Department.
(b) Any OTP Holder or OTP Firm who fails to file a compliance
acknowledgment form in a timely manner shall be subject to a late
filing charge of $500.00 for each occurrence. Repeated or aggravated
failure to file may be referred to the Enforcement Department for
appropriate disciplinary action.
Commentary .01-.03--No change.
* * * * *
Disclosure of Financial Arrangements of OTP Holders
Rule 11.11(a)--No change.
[[Page 10014]]
(b) OTP Holders and OTP Firms with financial arrangements must
submit to the Exchange notification of the initiation, modification or
termination of such financial arrangements in a form, time and manner
approved by the Exchange within ten business days of the effective date
of such arrangements or within such shorter period of time as the
Exchange may require. Any OTP Holder or OTP Firm who fails to file as
such in a timely manner shall be subject to a late filing charge of
$500.00 for each occurrence. Repeated or aggravated failure to file may
be referred to the Enforcement Department for appropriate disciplinary
action. [Failure to disclose the terms of such financial arrangements
to the Exchange may result in disciplinary action.]
* * * * *
Rules of PCX Equities, Inc.
Rule 6
Business Conduct
* * * * *
Prevention of the Misuse of Material, Nonpublic Information
Rule 6.3(a) Every ETP Holder must establish, maintain and enforce
written policies and procedures reasonably designed, taking into
consideration the nature of such ETP Holder's business, to prevent the
misuse of material, non-public information by such ETP Holder or
persons associated with such ETP Holder. ETP Holders for whom the
Corporation is the Designated Examining Authority (``DEA'') that are
required, pursuant to Rule 4.5, to file SEC form X-17A-5, with the
Corporation on an annual or more frequent basis must file
contemporaneously with the submission for the calendar year end ITSFEA
compliance acknowledgments stating that the procedures mandated by this
Rule have been established, enforced and maintained. Any ETP Holder or
Associated Persons who becomes aware of a possible misuse of material,
non-public information must promptly notify the Corporation's
Surveillance Department.
(b) Any ETP Holder who fails to file a compliance acknowledgment
form in a timely manner shall be subject to a late filing charge of
$500.00 for each occurrence. Repeated or aggravated failure to file may
be referred to the Enforcement Department for appropriate disciplinary
action.
Commentary .01-.03--No change.
* * * * *
Disclosure of Financial Arrangements
Rule 6.11(a)--No change.
(b) ETP Holders with financial arrangements must submit to the
Corporation notification of the initiation, modification or termination
of such financial arrangements in a form, time and manner approved by
the Corporation within ten business days of the effective date of such
arrangements or within such shorter period of time as the Corporation
may require. Any ETP Holder who fails to file as such in a timely
manner shall be subject to a late filing charge of $500.00 for each
occurrence. Repeated or aggravated failure to file may be referred to
the Enforcement Department for appropriate disciplinary action.
[Failure to disclose the terms of such financial arrangements to the
Corporation may result in disciplinary action.]
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 self-regulatory organization
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 self-regulatory organization
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 adopt fees for late filings of certain
required FOCD forms. Options Trading Permit (``OTP'') Holders and OTP
Firms and Equities Trading Permit (``ETP'') Holders (collectively,
``Holders'') are required to file a number of FOCD related forms in a
timely manner. The Exchange believes that timely submission of FOCD
forms is a serious matter and believes it is necessary to assess late
fees to encourage Holders to file such forms in a timely manner.
The Exchange proposes to adopt late fees for the FOCD related forms
described below.
1. Annual Compliance Acknowledgement Form
Under PCX Rule 11.3 and PCXE Rule 6.3, every Holder must establish,
maintain, and enforce written policies and procedures to prevent the
misuse of material, non-public information by the respective Holder or
persons associated with such Holder. Holders for whom the Exchange is
the Designated Examining Authority that are required, under PCX and
PCXE Rule 4.5, to file SEC Form X-17A-5 with the Exchange on an annual
basis must file contemporaneously with the submission for the calendar
year end ITSFEA compliance acknowledgments stating that the procedures
mandated by PCX Rule 11.3 or PCXE 6.3 have been established, enforced
and maintained. The Exchange proposes to assess a late filing fee of
$500 for each occurrence to any Holder who fails to file the Annual
Compliance Acknowledgement Form in a timely manner. Repeated or
aggravated failure to file may be referred to the Enforcement
Department for appropriate disciplinary action.
2. Financial Arrangement Disclosure Form
Under PCX Rule 11.11 and PCXE 6.11, Holders with financial
arrangements are required to submit to the Exchange notification of the
initiation, modification or termination of such financial arrangements
in a form, time and manner approved by the Exchange within ten business
days of the effective date of such arrangements. The Exchange proposes
to assess a $500 late fee to those Holders who fail to file the
Financial Arrangement Disclosure Form in a timely manner. Repeated or
aggravated failure to file may be referred to the Enforcement
Department for appropriate disciplinary action.
Basis
The Exchange believes that the proposal is consistent with Section
6(b) \4\ of the Act, in general, and Section 6(b)(4) \5\ of the Act, in
particular, in that it provides for the equitable allocation of
reasonable dues, fees and other charges among its OTP Holders, OTP
Firms, ETP Holders, issuers, and other persons using its facilities.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
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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 10015]]
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 foregoing rule change has become effective pursuant to section
19(b)(3)(A)(ii) \6\ of the Act and subparagraph (f)(2) of Act Rule 19b-
4 thereunder,\7\ because it is concerned solely with the administration
of the Exchange. At any time within 60 days of the filing of such
proposed rule change, the Commission could have summarily abrogated
such rule change if it appeared to the Commission that such action was
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the Act.
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\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
\7\ 17 CFR 240.19b-4(f)(2).
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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-2004-130 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-2004-130. 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. 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 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-2004-130 and should be
submitted on or before March 22, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-808 Filed 2-28-05; 8:45 am]
BILLING CODE 8010-01-P
