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 Arbitration Fees, 13563-13564 [E5-1203]
Download as PDF
<![CDATA[
Federal Register / Vol. 70, No. 53 / Monday, March 21, 2005 / Notices
qualified audit opinion on its annual
audit.) In order to protect NSCC and its
other members, it is important that
credit risk staff maintain the discretion
to downgrade a member’s rating on the
Matrix and thus subject the member to
closer monitoring and possibly
additional reporting and/or additional
clearing fund requirements. All rated
members, including those on the watch
list, are monitored monthly or quarterly,
depending upon the member’s financial
filing frequency, against basic minimum
financial requirements and other
parameters.
All broker-dealer members included
on the watch list are monitored more
closely. This means that they are also
monitored for various parameter breaks
which may include but are not limited
to such things as a defined decline in
excess net capital over a one month or
three month period, a defined period
loss, a defined aggregate indebtedness/
net capital ratio, a defined net capital/
aggregate debit items ratio, and a
defined net capital/regulatory net
capital ratio. All bank members
included on the watch list are also
monitored more closely for watch list
parameter breaks which may include
but are not limited to such things as a
defined quarter loss, a defined decline
in equity, a defined tier one leverage
ratio, a defined tier one risk-based
capital ratio, and a defined total riskbased capital ratio. Monitoring for the
above more stringent parameter breaks
is done only for those members placed
on the watch list.
NSCC will continually evaluate the
methodology and its effectiveness and
will make such changes as it deems
prudent and practicable within such
time frame as is determined to be
appropriate by NSCC. NSCC will update
the Commission staff on its evaluations
of the Matrix pursuant to a schedule
developed by FICC, NSCC, and
Commission staff.
B. Questionnaire
Currently, Addendums B, I, Q, and R
(standards of financial responsibility
and operational capability for settling,
fund, insurance carrier, and third party
administrator members and applicants,
respectively) include questionnaires
that members and applicants are
currently required to complete and to
return to NSCC. NSCC Rule 15 also
provides that NSCC has the authority to
examine and to require adequate
assurance of the financial responsibility
and operational capability of members
and applicants. Because NSCC routinely
receives information related to its
members’ and applicants’ financial
responsibility and operational capability
VerDate jul<14>2003
18:36 Mar 18, 2005
Jkt 205001
and has the authority to request
additional information as the need
arises, NSCC is eliminating these
questionnaires from its Rules and
Procedures. Furthermore, NSCC has
found the information contained in the
questionnaires to be duplicative of the
other information it routinely receives
throughout the year.
NSCC has determined to rely on its
ability under Rule 15, Section 2 to
obtain pertinent information for
members and applicants rather than
require responses to specific
questionnaires. NSCC will solicit such
information in such form and within
such timeframes as it may require from
time to time.
III. Discussion
Section 17A(b)(3)(F) of the Act
requires among other things that the
rules of a clearing agency be designed to
facilitate the safeguarding of securities
and funds which are in its custody or
control or for which it is responsible
and in general will protect investors and
the public interest.4 The Commission
finds that NSCC’s proposed rule change
is consistent with this requirement
because it improves NSCC’s member
surveillance process which should
better enable NSCC to safeguard the
securities and funds which are in its
custody or control or for which it is
responsible.
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and in
particular section 17A of the Act and
the rules and regulations thereunder.
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,5 that the
proposed rule change (File No. SR–
NSCC–2003–11) be and hereby is
approved.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.6
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–1209 Filed 3–18–05; 8:45 am]
BILLING CODE 8010–01–P
PO 00000
13563
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51369; File No. SR–PCX–
2005–14]
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
Arbitration Fees
March 15, 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 February
1, 2005, 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 February
23, 2005, the Exchange filed
Amendment No. 1 to the proposed rule
change. On March 8, 2005, the Exchange
filed Amendment No. 2 to the proposed
rule change. 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The PCX is proposing to amend the
PCX Options and PCX Equities, Inc.
(‘‘PCXE’’) arbitration rules to include an
arbitration hearing venue surcharge
applicable to OTP Holders, OTP Firms 4
and ETP Holders 5 (‘‘Holders’’). The text
of the proposed rule change is available
on the PCX Web site (https://
www.pacificex.com/legal/docs/prf/
2005/SR–PCX–2005–14-amend2.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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 See PCX Rule 1(q)–(r).
5 See PCXE Rule 1(n).
2 17
4 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78s(b)(2).
6 17 CFR 200.30–3(a)(12).
5 15
Frm 00121
Fmt 4703
Sfmt 4703
E:\FR\FM\21MRN1.SGM
21MRN1
13564
Federal Register / Vol. 70, No. 53 / Monday, March 21, 2005 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Purpose
The Exchange proposes to adopt new
PCX Rule 12.31(l) and PCXE Rule
12.32(l) to include an arbitration hearing
venue surcharge applicable to Holders.
Under the proposed rules, the Director
of Arbitration (‘‘Director’’) will make
arrangements with an off-site venue for
each arbitration hearing and the costs
for such arrangement will be directly
passed to the Holder(s) that are parties
to the dispute (‘‘Arbitrating Holders’’).
The Arbitrating Holder(s) will be liable
for the entire amount of the arrangement
for the arbitration hearing venue. For
each associated person who is named,
the surcharge shall be assessed against
the Holder which employed the
associated person at the time of the
events which gave rise to the dispute,
claim or controversy. In the event that
multiple Arbitrating Holders or
associated persons are parties to a
dispute, the arbitrator(s) shall determine
which Arbitrating Holders will be liable
for the surcharge unless the surcharge is
waived by the Director.
Currently, arbitration hearings at the
PCX are held in conference rooms
within the PCX corporate headquarters.
These conference rooms are shared by
various PCX departments and are
located on the same floors as the
departments, which include the
Membership, Regulation, General
Counsel, and Enforcement departments.
Due to the sharing of space and close
quarters in which the arbitration
hearings are held, the parties to the
dispute often do not have alternate
locations to discuss matters with their
counsel and/or discuss possible
settlements or resolutions. Furthermore,
the level of confidentiality and integrity
of the Exchange may be in jeopardy
with various unattended parties in the
hallways of the PCX corporate
headquarters. Therefore, the Exchange
believes an off-site hearing venue,
which would provide an appropriate
and confidential environment for the
arbitration parties, would be in the best
VerDate jul<14>2003
18:36 Mar 18, 2005
Jkt 205001
interest of the arbitration parties as well
as the Exchange.
Comments may be submitted by any of
the following methods:
Basis
Electronic Comments
The Exchange believes that the
proposal is consistent with section 6(b) 6
of the Act, in general, and section
6(b)(4) 7 of the Act, in particular, in that
it provides for the equitable allocation
of reasonable dues, fees and other
charges among the Exchange’s Holders.
• 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–2005–14 on the subject
line.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
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.
Paper Comments
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 foregoing rule change has become
effective pursuant to section
19(b)(3)(A)(ii) 8 of the Act and
subparagraph (f) of Rule 19b–4
thereunder,9 because the proposed rule
change establishes a charge applicable
only to members 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.10
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.
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
8 15 U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f).
10 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 March 8, 2005, the date
on which the Exchange filed Amendment No. 2 to
the proposed rule change. See 15 U.S.C.
78s(b)(3)(C).
PO 00000
6 15
7 15
Frm 00122
Fmt 4703
Sfmt 4703
• 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–2005–14. 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 20549–0609. 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–2005–
14 and should be submitted on or before
April 11, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1203 Filed 3–18–05; 8:45 am]
BILLING CODE 8010–01–P
11 17
E:\FR\FM\21MRN1.SGM
CFR 200.30–3(a)(12).
21MRN1
]]>Agencies
[Federal Register Volume 70, Number 53 (Monday, March 21, 2005)]
[Notices]
[Pages 13563-13564]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1203]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51369; File No. SR-PCX-2005-14]
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 Arbitration Fees
March 15, 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 February 1, 2005, 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 February 23, 2005, the Exchange filed Amendment No. 1 to
the proposed rule change. On March 8, 2005, the Exchange filed
Amendment No. 2 to the proposed rule change. 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 is proposing to amend the PCX Options and PCX Equities,
Inc. (``PCXE'') arbitration rules to include an arbitration hearing
venue surcharge applicable to OTP Holders, OTP Firms \4\ and ETP
Holders \5\ (``Holders''). The text of the proposed rule change is
available on the PCX Web site (https://www.pacificex.com/legal/docs/prf/
2005/SR-PCX-2005-14-amend2.pdf), at the principal office of the PCX,
and in the Commission's Public Reference Room.
---------------------------------------------------------------------------
\4\ See PCX Rule 1(q)-(r).
\5\ 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
[[Page 13564]]
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 adopt new PCX Rule 12.31(l) and PCXE Rule
12.32(l) to include an arbitration hearing venue surcharge applicable
to Holders. Under the proposed rules, the Director of Arbitration
(``Director'') will make arrangements with an off-site venue for each
arbitration hearing and the costs for such arrangement will be directly
passed to the Holder(s) that are parties to the dispute (``Arbitrating
Holders''). The Arbitrating Holder(s) will be liable for the entire
amount of the arrangement for the arbitration hearing venue. For each
associated person who is named, the surcharge shall be assessed against
the Holder which employed the associated person at the time of the
events which gave rise to the dispute, claim or controversy. In the
event that multiple Arbitrating Holders or associated persons are
parties to a dispute, the arbitrator(s) shall determine which
Arbitrating Holders will be liable for the surcharge unless the
surcharge is waived by the Director.
Currently, arbitration hearings at the PCX are held in conference
rooms within the PCX corporate headquarters. These conference rooms are
shared by various PCX departments and are located on the same floors as
the departments, which include the Membership, Regulation, General
Counsel, and Enforcement departments. Due to the sharing of space and
close quarters in which the arbitration hearings are held, the parties
to the dispute often do not have alternate locations to discuss matters
with their counsel and/or discuss possible settlements or resolutions.
Furthermore, the level of confidentiality and integrity of the Exchange
may be in jeopardy with various unattended parties in the hallways of
the PCX corporate headquarters. Therefore, the Exchange believes an
off-site hearing venue, which would provide an appropriate and
confidential environment for the arbitration parties, would be in the
best interest of the arbitration parties as well as the Exchange.
Basis
The Exchange believes that the proposal is consistent with section
6(b) \6\ of the Act, in general, and section 6(b)(4) \7\ of the Act, in
particular, in that it provides for the equitable allocation of
reasonable dues, fees and other charges among the Exchange's Holders.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 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 foregoing rule change has become effective pursuant to section
19(b)(3)(A)(ii) \8\ of the Act and subparagraph (f) of Rule 19b-4
thereunder,\9\ because the proposed rule change establishes a charge
applicable only to members 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.\10\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-4(f).
\10\ 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 March 8, 2005, the date on which the Exchange filed
Amendment No. 2 to the proposed rule change. See 15 U.S.C.
78s(b)(3)(C).
---------------------------------------------------------------------------
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 No. SR-PCX-2005-14 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-2005-14. 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 20549-0609. 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-
2005-14 and should be submitted on or before April 11, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1203 Filed 3-18-05; 8:45 am]
BILLING CODE 8010-01-P
