Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Revisions to the Series 4 Examination Program, 32690-32692 [E5-2832]
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32690
Federal Register / Vol. 70, No. 106 / Friday, June 3, 2005 / Notices
PCX understands that Amex and
NASD also will file with the SEC similar
proposed rule changes to delay until no
later than November 30, 2005 the
implementation date of the revisions to
the Series 4 Examination.
2. Statutory Basis
PCX believes that the proposed rule
change is consistent with Section 6(b) of
the Act,10 in general, and furthers the
objectives of Section 6(b)(1) 11 in
particular, in that it is designed to
enforce compliance by Options Trading
Permit (‘‘OTP’’) Holders and OTP Firms
and persons associated with the rules of
the Exchange.
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–2005–57 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.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51727; File No. SR–PCX–
2005–51]
Self-Regulatory Organizations; Pacific
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1
Thereto Relating to Revisions to the
Series 4 Examination Program
May 24, 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 April 12,
2005, the Pacific Exchange, Inc. (‘‘PCX’’
All submissions should refer to File
B. Self-Regulatory Organization’s
or ‘‘Exchange’’) filed with the Securities
Number SR–PCX–2005–57. This file
Statement on Burden on Competition
and Exchange Commission
number should be included on the
The Exchange believes that the
subject line if e-mail is used. To help the (‘‘Commission’’) the proposed rule
proposed rule change will impose no
change as described in Items I, II, and
Commission process and review your
burden on competition that is not
III below, which Items have been
comments more efficiently, please use
necessary or appropriate in furtherance
prepared by PCX. PCX has designated
only one method. The Commission will the proposed rule change as one
of the purposes of the Act, as amended.
post all comments on the Commission’s constituting a stated policy, practice, or
C. Self-Regulatory Organization’s
Internet Web site (https://www.sec.gov/
interpretation with respect to the
Statement on Comments on the
rules/sro.shtml). Copies of the
meaning, administration, or
Proposed Rule Change Received From
submission, all subsequent
enforcement of an existing rule of PCX
Members, Participants, or Others
amendments, all written statements
pursuant to section 19(b)(3)(A)(i) of the
Written comments were neither
with respect to the proposed rule
Act 3 and Rule 19b–4(f)(1) thereunder,4
solicited nor received by the Exchange
change that are filed with the
which renders the proposal effective
on this proposal.
Commission, and all written
upon filing with the Commission. The
communications relating to the
Exchange filed Amendment No. 1 to the
III. Date of Effectiveness of the
proposed rule change between the
proposed rule change on May 16, 2005.5
Proposed Rule Change and Timing for
Commission and any person, other than The Commission is publishing this
Commission Action
notice to solicit comments on the
those that may be withheld from the
The proposed rule change has become public in accordance with the
proposed rule change, as amended, from
effective pursuant to Section
interested persons.
provisions of 5 U.S.C. 552, will be
19(b)(3)(A)(i) of the Act 12 and Rule 19b–
available for inspection and copying at
I. Self-Regulatory Organization’s
4(f)(1) thereunder,13 in that the
the principal office of PCX. All
Statement of the Terms of Substance of
proposed rule change constitutes a
comments received will be posted
the Proposed Rule Change
stated policy, practice, or interpretation
without change; the Commission does
with respect to the meaning,
Pursuant to the provisions of section
not edit personal identifying
administration, or enforcement of an
19(b)(1) of the Act,6 the Exchange is
information from submissions. You
existing rule of PCX.
filing with the Commission revisions to
should submit only information that
At any time within 60 days of the
the study outline and selection
you wish to make available publicly. All specifications for the Limited
filing of the proposed rule change, the
submissions should refer to the File
Commission may summarily abrogate
Principal—Registered Options (Series 4)
Number SR–PCX–2005–57 and should
such rule change if it appears to the
examination (‘‘Series 4 Examination’’).
be submitted on or before June 24, 2005.
Commission that such action is
1 15 U.S.C. 78s(b)(1).
necessary or appropriate in the public
For the Commission, by the Division of
2 17 CFR 240.19b–4.
interest, for the protection of investors,
Market Regulation, pursuant to delegated
3 15 U.S.C. 78s(b)(3)(A)(i).
or otherwise in furtherance of the
authority.14
1 17 CFR 240.19b–4(f)(1).
purposes of the Act.
Margaret H. McFarland,
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
Deputy Secretary.
[FR Doc. E5–2831 Filed 6–2–05; 8:45 am]
BILLING CODE 8010–01–P
10 15
U.S.C. 78f(b).
U.S.C. 78f(b)(1).
12 15 U.S.C. 78s(b)(3)(A)(i).
13 17 CFR 240.19b–4(f)(1).
11 15
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CFR 200.30–3(a)(12).
Frm 00127
Fmt 4703
Sfmt 4703
5 In Amendment No. 1, PCX provided a new
statutory basis for the proposed rule change and
made technical corrections to the proposed rule
change. PCX also included a copy of a Commission
letter regarding procedures for filing qualification
exams. See letter from Belinda Blaine, Associate
Director, Division of Market Regulation
Commission, to Alden S. Adkins, Senior Vice
President & General Counsel, NASD Regulation,
Inc., dated July 24, 2000. 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 the period to commence on
May 16, 2005, the date on which the Exchange filed
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
6 15 U.S.C. 78(b)(1).
E:\FR\FM\03JNN1.SGM
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Federal Register / Vol. 70, No. 106 / Friday, June 3, 2005 / Notices
The proposed revisions update the
material to reflect changes to the laws,
rules, and regulations covered by the
Series 4 Examination. PCX is not
proposing any textual changes to its
rules.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
PCX 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. PCX 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
Pursuant to section 6(c)(3) of the Act,7
which allows PCX to examine and
verify the standards of training,
experience, and competence for persons
associated with PCX Options Trading
Permit (‘‘OTP’’) Holders or OTP Firms,
PCX has developed examinations, and
requires satisfaction of examinations
developed by other self-regulatory
organizations (‘‘SROs’’), that are
designed to establish that persons
associated with PCX OTP Holders or
OTP Firms have attained specified
levels of competence and knowledge.
PCX periodically reviews the content of
examinations to determine whether
revisions are necessary or appropriate in
view of changes pertaining to the
subject matter covered by the
examinations.
PCX Rule 9.18 states that no OTP
Firm or OTP Holder shall be approved
to transact business with the public in
options contracts, unless those persons
associated with the OTP Firm or OTP
Holder who are designated as Options
Principals or who are designated as
Registered Representatives have been
approved by and registered with the
Exchange. The Series 4 Examination, an
industry-wide examination, qualifies an
individual to function as an Options
Principal. The Series 4 Examination
tests a candidate’s knowledge of options
trading generally, the PCX’s rules
applicable to trading of options
contracts, and the rules of registered
clearing agencies for options. The Series
4 Examination covers, among other
things, equity options, foreign currency
options, index options, and options on
government and mortgage-backed
securities.
The Series 4 Examination is shared by
PCX and the following SROs: The
American Stock Exchange LLC, the
Chicago Board Options Exchange,
Incorporated, the National Association
of Securities Dealers, Inc., the New York
Stock Exchange, Inc., and the
Philadelphia Stock Exchange, Inc.
A committee of industry
representatives, together with the staff
of PCX and the SROs referenced above,
recently undertook a periodic review of
the Series 4 Examination. As a result of
this review and as part of an ongoing
effort to align the Series 4 Examination
more closely to the supervisory duties of
a Series 4 principal, PCX is proposing
to modify the content of the Series 4
Examination to track the functional
workflow of a Series 4 principal. More
specifically, PCX is proposing to revise
the main section headings and the
number of questions on each section of
the Series 4 study outline as follows:
Options Investment Strategies,
decreased from 35 to 34 questions;
Supervision of Sales Activities and
Trading Practices, increased from 71 to
75 questions; and Supervision of
Employees, Business Conduct and
Recordkeeping and Reporting
Requirements, decreased from 19 to 16
questions. PCX is further proposing
revisions to the study outline to reflect
the new Commission short sale
requirements. The revised Series 4
Examination continues to cover the
areas of knowledge required to
supervise options activities.
PCX is proposing similar changes to
the corresponding sections of the Series
4 Examination selection specifications
and question bank. The number of
questions on the Series 4 Examination
will remain at 125, and candidates will
have three hours to complete the exam.
Also, each candidate must correctly
answer 70 percent of the questions to
receive a passing grade.
2. Statutory Basis
PCX believes that the proposed rule
change is consistent with section 6(b) of
the Act,8 in general, and furthers the
objectives of section 6(b)(1) 9 in
particular, in that it is designed to
enforce compliance by OTP Holders and
OTP Firms and persons associated with
the rules of the Exchange.
8 15
7 15
U.S.C. 78f(c)(3).
VerDate jul<14>2003
18:03 Jun 02, 2005
9 15
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PO 00000
U.S.C. 78f(
U.S.C. 78f(b)(1).
Frm 00128
Fmt 4703
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments on the proposed
rule change were neither solicited nor
received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become
effective pursuant to section
19(b)(3)(A)(i) of the Act10 and Rule 19b–(f)(1) thereunder,11 in that the
proposed rule change constitutes a
stated policy, practice, or interpretation
with respect to the meaning,
administration, or enforcement of an
existing rule of PCX.
At any time within 60 days of the
filing of the 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, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–PCX–2005–51 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–2005–51. This file
number should be included on the
subject line if e-mail is used. To help the
10 15
11 17
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32691
E:\FR\FM\03JNN1.SGM
U.S.C. 78s(b)(3)(A)(i).
U.S.C. 240.19b–4(f)(1).
03JNN1
32692
Federal Register / Vol. 70, No. 106 / Friday, June 3, 2005 / Notices
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 at
the principal office of 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 the File
Number SR–PCX–2005–51 and should
be submitted on or before June 24, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–2832 Filed 6–2–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51731; File No. SR–Phlx–
2005–02]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing of a Proposed Rule
Change and Amendment Nos. 1 and 2
Thereto Relating to Volume Weighted
Average Price Crosses
May 24, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1, and Rule 19b–4 2 thereunder,
notice is hereby given that on January
25, 2005, the Philadelphia Stock
Exchange, Inc. (‘‘Phlx’’ 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 Phlx. On
May 4, 2005, the Phlx submitted
Amendment No. 1 to the proposed rule
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate jul<14>2003
18:03 Jun 02, 2005
Jkt 205001
change,3 and on May 18, 2005, the Phlx
submitted Amendment No. 2 to the
proposed rule change.4 The Commission
is publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Phlx proposes to amend Phlx
Rule 126, ‘‘Crossing’’ Orders, by adding
new subsection (i) dealing with volume
weighted average price (‘‘VWAP’’)
crosses. The text of amended Phlx Rule
126 is set forth below. New language is
italicized.
Rule 126.
‘‘Crossing’’ Orders
When a member has an order to buy
and an order to sell the same security,
he must offer such security at a price
which is higher than his bid by the
minimum variation permitted in such
security before making a transaction
with himself.
Supplementary Material
(a)–(h) No Change.
(i) This section applies to the
execution of certain transactions
hereinafter referred to as VWAP crosses
which are customer-to-customer crosses
that are equal to any single market or
consolidated market volume weighted
average prices either for the entire
trading day from 9:30 a.m. to 4 p.m., or
for any portion of the trading day.
VWAP crosses are not subject to the
Exchange’s auction market rules and
thus, may not be broken-up upon entry
to the Exchange. VWAP crosses must be
identified as VWAP on each order
ticket, entered by symbol and price,
identified as ‘agency’ and, when
applicable, identified as ‘‘short
exempt’’. The basis upon which the
VWAP is to be calculated (including the
time of day in which the trades to be
included in the VWAP formula must
occur, and whether such trades are
limited to those occurring on a
particular market or include all trades
on the consolidated market) must be
documented upon receipt of the order.
VWAP crosses may be executed only
3 In Amendment No. 1, the Phlx (1) eliminated
the concept of linking a VWAP cross to a ‘‘primary
market’’ and instead proposed to link a VWAP cross
to correspond to any single market, and (2)
requested relief from the provisions of SEC Rule
11Ac1–1 under the Act (the ‘‘Quote Rule’’) with
respect to VWAP crosses.
4 In Amendment No. 2, the Phlx (1) eliminated
the proposed rule text addressing the treatment of
VWAP crosses in the case of trading halts, (2)
corrected a citing reference to Phlx auction market
rules, and (3) clarified the description of the ‘‘b’’
modifier.
PO 00000
Frm 00129
Fmt 4703
Sfmt 4703
during the Exchange’s Post Primary
Session and reported with the identifier
‘‘b’’, to the nearest decimal eligible for
reporting by the Exchange.
*
*
*
*
*
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, as amended, 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 Phlx 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 Exchange represents that the
purpose of the proposed rule change is
to permit certain customer-to-customer 5
crosses to be executed at a VWAP 6
during the Exchange’s Post Primary
Session.7 The new crossing transactions
would be permitted to be executed at
prices which are equal to any single
market or consolidated market volume
weighted average prices calculated for
the entire trading day from 9:30 a.m. to
4 p.m., or for any portion of the trading
5 Pursuant to Phlx Rule 126(d) a ‘‘customer’’ order
would include any order which a broker represents
in an agency capacity, including any order of a
market maker or other broker-dealer not affiliated
with the broker, and it would not include any order
of a broker-dealer affiliated with the executing
broker, or any associated person of such brokerdealer.
6 The Commission has observed that the VWAP
for a security is generally determined by: (1)
Calculating raw values for regular session trades
reported by the Consolidated Tape during the
regular trading day by multiplying each such price
by the total number of shares traded at that price;
(2) compiling an aggregate sum by adding each
calculated raw value from step one above; and (3)
dividing the aggregate sum by the total number of
reported shares for that day in the security. See
Securities Exchange Act Release No. 48709 (Oct. 28,
2003), 68 FR 62972, 62982 at n. 88 (Nov. 6, 2003)
(the Regulation SHO Proposing Release). Pursuant
to the Exchange’s proposed rule change, however,
members would be able to elect to calculate a
VWAP using only a single market’s prices rather
than all trades reported by the Consolidated Tape,
and could elect to base that calculation on trades
reported during a particular time slice during the
day rather than including all trades reported during
the regular trading day. Members would be required
to document the particular trades they have agreed
to be used in the calculation.
7 According to Phlx Rule 101, the Post Primary
Session (‘‘PPS’’) operates from 4 to 4:15 p.m.
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]]>Agencies
[Federal Register Volume 70, Number 106 (Friday, June 3, 2005)]
[Notices]
[Pages 32690-32692]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-2832]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51727; File No. SR-PCX-2005-51]
Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change and
Amendment No. 1 Thereto Relating to Revisions to the Series 4
Examination Program
May 24, 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 April 12, 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, II, and III below, which
Items have been prepared by PCX. PCX has designated the proposed rule
change as one constituting a stated policy, practice, or interpretation
with respect to the meaning, administration, or enforcement of an
existing rule of PCX pursuant to section 19(b)(3)(A)(i) of the Act \3\
and Rule 19b-4(f)(1) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. The Exchange filed Amendment
No. 1 to the proposed rule change on May 16, 2005.\5\ The Commission is
publishing this notice to solicit comments on the proposed rule change,
as amended, 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)(i).
\1\ 17 CFR 240.19b-4(f)(1).
\5\ In Amendment No. 1, PCX provided a new statutory basis for
the proposed rule change and made technical corrections to the
proposed rule change. PCX also included a copy of a Commission
letter regarding procedures for filing qualification exams. See
letter from Belinda Blaine, Associate Director, Division of Market
Regulation Commission, to Alden S. Adkins, Senior Vice President &
General Counsel, NASD Regulation, Inc., dated July 24, 2000. 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 the period
to commence on May 16, 2005, the date on which the Exchange filed
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Pursuant to the provisions of section 19(b)(1) of the Act,\6\ the
Exchange is filing with the Commission revisions to the study outline
and selection specifications for the Limited Principal--Registered
Options (Series 4) examination (``Series 4 Examination'').
[[Page 32691]]
The proposed revisions update the material to reflect changes to the
laws, rules, and regulations covered by the Series 4 Examination. PCX
is not proposing any textual changes to its rules.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78(b)(1).
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, PCX 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. PCX 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
Pursuant to section 6(c)(3) of the Act,\7\ which allows PCX to
examine and verify the standards of training, experience, and
competence for persons associated with PCX Options Trading Permit
(``OTP'') Holders or OTP Firms, PCX has developed examinations, and
requires satisfaction of examinations developed by other self-
regulatory organizations (``SROs''), that are designed to establish
that persons associated with PCX OTP Holders or OTP Firms have attained
specified levels of competence and knowledge. PCX periodically reviews
the content of examinations to determine whether revisions are
necessary or appropriate in view of changes pertaining to the subject
matter covered by the examinations.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(c)(3).
---------------------------------------------------------------------------
PCX Rule 9.18 states that no OTP Firm or OTP Holder shall be
approved to transact business with the public in options contracts,
unless those persons associated with the OTP Firm or OTP Holder who are
designated as Options Principals or who are designated as Registered
Representatives have been approved by and registered with the Exchange.
The Series 4 Examination, an industry-wide examination, qualifies an
individual to function as an Options Principal. The Series 4
Examination tests a candidate's knowledge of options trading generally,
the PCX's rules applicable to trading of options contracts, and the
rules of registered clearing agencies for options. The Series 4
Examination covers, among other things, equity options, foreign
currency options, index options, and options on government and
mortgage-backed securities.
The Series 4 Examination is shared by PCX and the following SROs:
The American Stock Exchange LLC, the Chicago Board Options Exchange,
Incorporated, the National Association of Securities Dealers, Inc., the
New York Stock Exchange, Inc., and the Philadelphia Stock Exchange,
Inc.
A committee of industry representatives, together with the staff of
PCX and the SROs referenced above, recently undertook a periodic review
of the Series 4 Examination. As a result of this review and as part of
an ongoing effort to align the Series 4 Examination more closely to the
supervisory duties of a Series 4 principal, PCX is proposing to modify
the content of the Series 4 Examination to track the functional
workflow of a Series 4 principal. More specifically, PCX is proposing
to revise the main section headings and the number of questions on each
section of the Series 4 study outline as follows: Options Investment
Strategies, decreased from 35 to 34 questions; Supervision of Sales
Activities and Trading Practices, increased from 71 to 75 questions;
and Supervision of Employees, Business Conduct and Recordkeeping and
Reporting Requirements, decreased from 19 to 16 questions. PCX is
further proposing revisions to the study outline to reflect the new
Commission short sale requirements. The revised Series 4 Examination
continues to cover the areas of knowledge required to supervise options
activities.
PCX is proposing similar changes to the corresponding sections of
the Series 4 Examination selection specifications and question bank.
The number of questions on the Series 4 Examination will remain at 125,
and candidates will have three hours to complete the exam. Also, each
candidate must correctly answer 70 percent of the questions to receive
a passing grade.
2. Statutory Basis
PCX believes that the proposed rule change is consistent with
section 6(b) of the Act,\8\ in general, and furthers the objectives of
section 6(b)(1) \9\ in particular, in that it is designed to enforce
compliance by OTP Holders and OTP Firms and persons associated with the
rules of the Exchange.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(
\9\ 15 U.S.C. 78f(b)(1).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments on the proposed rule change were neither solicited
nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become effective pursuant to section
19(b)(3)(A)(i) of the Act\10\ and Rule 19b--(f)(1) thereunder,\11\ in
that the proposed rule change constitutes a stated policy, practice, or
interpretation with respect to the meaning, administration, or
enforcement of an existing rule of PCX.
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\10\ 15 U.S.C. 78s(b)(3)(A)(i).
\11\ 17 U.S.C. 240.19b-4(f)(1).
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At any time within 60 days of the filing of the 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, as amended, is consistent with the Act. Comments may be
submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-PCX-2005-51 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-2005-51. This file
number should be included on the subject line if e-mail is used. To
help the
[[Page 32692]]
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 at the
principal office of 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 the File
Number SR-PCX-2005-51 and should be submitted on or before June 24,
2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-2832 Filed 6-2-05; 8:45 am]
BILLING CODE 8010-01-P
