Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change and Amendments No. 1 and 2 Thereto Requiring Electronic Filing of Form U4 and Form U5 by ETP Holders Through the CRD, 15674-15675 [E5-1335]

Download as PDF 15674 Federal Register / Vol. 70, No. 58 / Monday, March 28, 2005 / Notices general, protect investors and the public interest. The Exchange has requested that the Commission approve the proposed rule change, as amended, on an accelerated basis. The Commission finds good cause, pursuant to Section 19(b)(2) of the Act,9 for approving the proposed rule change, as amended, prior to the thirtieth day after the date of publication of notice in the Federal Register. The Commission has previously approved a substantially similar proposed rule change submitted by the American Stock Exchange LLC to provide for the processing of the Forms U4 and U5 through Web CRD10 and does not believe that the proposed rule change raises novel regulatory issues. The proposed rule change, as amended, promotes uniformity of registration in the industry. Accordingly, the Commission finds that there is good cause, consistent with Section 6(b)(5) of the Act,11 to approve the proposed rule change, as amended, on an accelerated basis. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change, as amended, (SR– PCX–2005–10) is hereby approved on an accelerated basis.12 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–1334 Filed 3–25–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51399; File No. SR–PCX– 2005–11] Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change and Amendments No. 1 and 2 Thereto Requiring Electronic Filing of Form U4 and Form U5 by ETP Holders Through the CRD March 18, 2005 Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 9 15 U.S.C. 78s(b)(2). Securities Exchange Act Release No. 48067 (June 19, 2003), 68 FR 39601 (July 2, 2003) (SR– Amex–2003–48). 11 15 U.S.C. 78s(b)(5). 12 15 U.S.C. 78s(b)(2). 13 17 CFR 200.30–3(a)(12). 10 See VerDate jul<14>2003 15:12 Mar 25, 2005 Jkt 205001 (‘‘Act’’)1 and Rule 19b–4 thereunder,2 notice is hereby given that on January 31, 2005, the Pacific Exchange, Inc. (‘‘PCX’’ or ‘‘Exchange’’) 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. On February 28, 2005, the Exchange filed Amendment No. 1, and on March 16, 2005, the Exchange filed Amendment No. 2 to the proposal. The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons and is approving the proposed rule change, as amended, on an accelerated basis. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The PCX, through its wholly owned subsidiary PCX Equities, Inc. (‘‘PCXE’’) proposes to amend PCXE Rules 2.3, 2.16 and 2.21 to support the implementation of an electronic registration process. The text of the proposed rule change is available on the PCX’s Web site https:// www.pacificex.com, at the PCX’s Office of the Secretary, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item III below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The current PCX procedures require Equities Trading Permit (‘‘ETP’’) applicants to submit the Uniform Application for Securities Industry Registration or Transfer (‘‘Form U4’’) to the Exchange when they are requesting approval to become an ETP Holder and the Uniform Termination Notice for Securities Industry Registration (‘‘Form U5’’) when they wish to withdraw from the Exchange. These forms are currently PO 00000 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00062 Fmt 4703 Sfmt 4703 submitted to the Exchange’s Shareholder and Registration Services (‘‘SRS’’) department. The Exchange is now proposing to require all current ETP Holders and new applicants to use the National Association of Securities Dealers, Inc. (‘‘NASD’’) Central Registration Depository (‘‘CRD’’) as the mechanism for submitting required Forms U4 and U5 filings to the Exchange. As a result of this change, all ETP Holders that currently submit paper Forms U4 and U5 filings to the Exchange would be required to submit these forms electronically through Web CRD. The CRD is a Web based system that provides broker-dealers and their associated persons with ‘‘one stop filing’’ with the Commission, NASD, and other self-regulatory organizations and regulators. The CRD is operated by NASD and is used by participating regulators in connection with registering and licensing broker-dealers and their associated persons. As a result of moving from a manual application process to a fully electronic application process, the Exchange is proposing to reduce the time period, in which ETP Holders must file amendments to their applications, from fifteen business days to ten business days. The Exchange feels that the switch from a manual application process to a fully electronic application justifies such a reduction in time and therefore will not place any additional burden on the applicant. The Exchange has also proposed certain technical changes to the rule text that are necessary to adopt the rules associated with an electronic filing process. The Exchange is also proposing to require ETP Holders to electronically file within ten (10) business days of such termination Form U5 with the CRD when any person associated with an ETP Holder terminates his association with such ETP Holder. In addition, any amendments to the Form U5 must be filed within ten business days of the occurrence causing the amendment. This proposed rule is necessary to fully automate the registration/termination process. The Exchange anticipates that during the period between April 18, 2005, and May 13, 2005, ETP Holders will submit an updated Form U4 to Web CRD for all individuals who are employees of ETP Holders who have not previously submitted a Form U4 to Web CRD.3 The proposed rule change would require any 3 A number of individuals that are employees of ETP Holders already have submitted Form U4 to Web CRD if they work for dual PCXE/NASD member firms and their job responsibilities require registration with NASD. E:\FR\FM\28MRN1.SGM 28MRN1 Federal Register / Vol. 70, No. 58 / Monday, March 28, 2005 / Notices person seeking to become an ETP Holder or any individual employed by an ETP Holder to electronically file a Form U4 with Web CRD. The Exchange believes that automating the review of registration applications and termination notices by transmitting all Forms U4 and U5 filings to Web CRD will enable the Exchange to perform more efficiently its regulatory responsibilities with respect to ETP Holders and, thereby, will ultimately enhance investor protection. 2. Statutory Basis The Exchange believes that the proposed rule change, as amended, is consistent with Section 6(b) of the Act4 in general, and furthers the objectives of Section 6(b)(5) of the Act5 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to, and perfect the mechanism of, a free and open market and a national market system. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change, as amended, 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. 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–2005–11 on the subject line. 4 15 5 15 U.S.C. 78F(B). U.S.C. 78F(B)(5). VerDate jul<14>2003 15:12 Mar 25, 2005 Jkt 205001 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–2005–11. 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 also will 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–2005–11 and should be submitted on or before April 18, 2005. IV. Commission’s Findings and Order Granting Accelerated Approval of Proposed Rule Change The Commission finds that the proposed rule change, as amended, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.6 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,7 which requires, among other things, that the Exchange’s rules promote just and equitable principles of trade and facilitate transactions in securities, and, in general, protect investors and the public interest. The Exchange has requested that the Commission approve the proposed rule change, as amended, on an accelerated 6 In approving this proposal, the Commission has considered its impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 7 15 U.S.C. 78f(b)(5). PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 15675 basis. The Commission finds good cause, pursuant to Section 19(b)(2) of the Act,8 for approving the proposed rule change, as amended, prior to the thirtieth day after the date of publication of notice in the Federal Register. The Commission has previously approved a substantially similar proposed rule change submitted by the American Stock Exchange LLC to provide for the processing of the Forms U4 and U5 through Web CRD 9 and does not believe that the proposed rule change raises novel regulatory issues. The proposed rule change, as amended, promotes uniformity of registration in the industry. Accordingly, the Commission finds that there is good cause, consistent with Section 6(b)(5) of the Act,10 to approve the proposed rule change, as amended, on an accelerated basis. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change, as amended, (SR– PCX–2005–11) is hereby approved on an accelerated basis.11 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–1335 Filed 3–25–05; 8:45 am] BILLING CODE 8010–01–P DEPARTMENT OF STATE [Public Notice 5019] Defense Trade Advisory Group; Notice of Open Meeting Department of State. Notice. AGENCY: ACTION: The Defense Trade Advisory Group (DTAG) will meet in open session from 9 a.m. to 12 noon on Tuesday, May 3, 2005, in Room 1912 at the U.S. Department of State, Harry S. Truman Building, 2201 C Street NW., Washington, DC. Entry and registration will begin at 8:15. Please use the building entrance located at 23rd Street, NW., Washington, DC between C & D Streets. The membership of this advisory committee consists of private sector defense trade specialists, appointed by the Assistant Secretary of 8 15 U.S.C. 78s(b)(2). Securities Exchange Act Release No. 48067 (June 19, 2003), 68 FR 39601 (July 2, 2003) (SR– Amex–2003–48). 10 15 U.S.C. 78s(b)(5). 11 15 U.S.C. 78s(b)(2). 12 17 CFR 200.30–3(a)(12). 9 See E:\FR\FM\28MRN1.SGM 28MRN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 70, Number 58 (Monday, March 28, 2005)]
[Notices]
[Pages 15674-15675]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1335]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51399; File No. SR-PCX-2005-11]


Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of 
Filing and Order Granting Accelerated Approval of Proposed Rule Change 
and Amendments No. 1 and 2 Thereto Requiring Electronic Filing of Form 
U4 and Form U5 by ETP Holders Through the CRD

March 18, 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 31, 2005, the Pacific Exchange, Inc. (``PCX'' or 
``Exchange'') 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. On February 
28, 2005, the Exchange filed Amendment No. 1, and on March 16, 2005, 
the Exchange filed Amendment No. 2 to the proposal. The Commission is 
publishing this notice to solicit comments on the proposed rule change, 
as amended, from interested persons and is approving the proposed rule 
change, as amended, on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

Self-Regulatory Organization's Statement of the Terms of Substance of 
the Proposed Rule Change

    The PCX, through its wholly owned subsidiary PCX Equities, Inc. 
(``PCXE'') proposes to amend PCXE Rules 2.3, 2.16 and 2.21 to support 
the implementation of an electronic registration process. The text of 
the proposed rule change is available on the PCX's Web site https://
www.pacificex.com, at the PCX's Office of the Secretary, and at the 
Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item III below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The current PCX procedures require Equities Trading Permit 
(``ETP'') applicants to submit the Uniform Application for Securities 
Industry Registration or Transfer (``Form U4'') to the Exchange when 
they are requesting approval to become an ETP Holder and the Uniform 
Termination Notice for Securities Industry Registration (``Form U5'') 
when they wish to withdraw from the Exchange. These forms are currently 
submitted to the Exchange's Shareholder and Registration Services 
(``SRS'') department.
    The Exchange is now proposing to require all current ETP Holders 
and new applicants to use the National Association of Securities 
Dealers, Inc. (``NASD'') Central Registration Depository (``CRD'') as 
the mechanism for submitting required Forms U4 and U5 filings to the 
Exchange. As a result of this change, all ETP Holders that currently 
submit paper Forms U4 and U5 filings to the Exchange would be required 
to submit these forms electronically through Web CRD. The CRD is a Web 
based system that provides broker-dealers and their associated persons 
with ``one stop filing'' with the Commission, NASD, and other self-
regulatory organizations and regulators. The CRD is operated by NASD 
and is used by participating regulators in connection with registering 
and licensing broker-dealers and their associated persons.
    As a result of moving from a manual application process to a fully 
electronic application process, the Exchange is proposing to reduce the 
time period, in which ETP Holders must file amendments to their 
applications, from fifteen business days to ten business days. The 
Exchange feels that the switch from a manual application process to a 
fully electronic application justifies such a reduction in time and 
therefore will not place any additional burden on the applicant. The 
Exchange has also proposed certain technical changes to the rule text 
that are necessary to adopt the rules associated with an electronic 
filing process.
    The Exchange is also proposing to require ETP Holders to 
electronically file within ten (10) business days of such termination 
Form U5 with the CRD when any person associated with an ETP Holder 
terminates his association with such ETP Holder. In addition, any 
amendments to the Form U5 must be filed within ten business days of the 
occurrence causing the amendment. This proposed rule is necessary to 
fully automate the registration/termination process.
    The Exchange anticipates that during the period between April 18, 
2005, and May 13, 2005, ETP Holders will submit an updated Form U4 to 
Web CRD for all individuals who are employees of ETP Holders who have 
not previously submitted a Form U4 to Web CRD.\3\ The proposed rule 
change would require any

[[Page 15675]]

person seeking to become an ETP Holder or any individual employed by an 
ETP Holder to electronically file a Form U4 with Web CRD. The Exchange 
believes that automating the review of registration applications and 
termination notices by transmitting all Forms U4 and U5 filings to Web 
CRD will enable the Exchange to perform more efficiently its regulatory 
responsibilities with respect to ETP Holders and, thereby, will 
ultimately enhance investor protection.
---------------------------------------------------------------------------

    \3\ A number of individuals that are employees of ETP Holders 
already have submitted Form U4 to Web CRD if they work for dual 
PCXE/NASD member firms and their job responsibilities require 
registration with NASD.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change, as amended, is 
consistent with Section 6(b) of the Act\4\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act\5\ in particular, in that it 
is designed to prevent fraudulent and manipulative acts and practices, 
to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in facilitating 
transactions in securities, and to remove impediments to, and perfect 
the mechanism of, a free and open market and a national market system.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78F(B).
    \5\ 15 U.S.C. 78F(B)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change, as 
amended, 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. 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-2005-11 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-2005-11. 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 also will 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-2005-11 and should be submitted on or before April 
18, 2005.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange.\6\ 
In particular, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(5) of the Act,\7\ which requires, among 
other things, that the Exchange's rules promote just and equitable 
principles of trade and facilitate transactions in securities, and, in 
general, protect investors and the public interest.
---------------------------------------------------------------------------

    \6\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. See 15 
U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange has requested that the Commission approve the proposed 
rule change, as amended, on an accelerated basis. The Commission finds 
good cause, pursuant to Section 19(b)(2) of the Act,\8\ for approving 
the proposed rule change, as amended, prior to the thirtieth day after 
the date of publication of notice in the Federal Register. The 
Commission has previously approved a substantially similar proposed 
rule change submitted by the American Stock Exchange LLC to provide for 
the processing of the Forms U4 and U5 through Web CRD \9\ and does not 
believe that the proposed rule change raises novel regulatory issues. 
The proposed rule change, as amended, promotes uniformity of 
registration in the industry. Accordingly, the Commission finds that 
there is good cause, consistent with Section 6(b)(5) of the Act,\10\ to 
approve the proposed rule change, as amended, on an accelerated basis.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(2).
    \9\ See Securities Exchange Act Release No. 48067 (June 19, 
2003), 68 FR 39601 (July 2, 2003) (SR-Amex-2003-48).
    \10\ 15 U.S.C. 78s(b)(5).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change, as amended, (SR-PCX-2005-11) is hereby 
approved on an accelerated basis.\11\
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1335 Filed 3-25-05; 8:45 am]
BILLING CODE 8010-01-P

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