Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Add to Its Current Revenue Sharing Program an Opportunity To Share in ETP Operating Revenue for Cross Orders in Tape C Securities, 66885-66887 [E5-6083]
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Federal Register / Vol. 70, No. 212 / Thursday, November 3, 2005 / Notices
for compliance with NYSE Rule 472.
According to the NYSE, factors to be
considered in conducting a risk-based
review of institutional sales material
must include, at minimum:
(1) The source of the material (i.e., the
department from which the material
originates to identify possible interdepartmental conflicts of interest); 16
(2) The functions and responsibilities
of persons producing the material (to
identify persons with access to sensitive
information);
(3) The quantity of material produced
per person (to concentrate on those
persons issuing the most material);
(4) The disciplinary history of persons
producing the material (a disciplinary
history might warrant pre-use review, or
other regulatory action in some
instances);
(5) The content and formatting of the
material, to determine whether it
qualifies for post-distribution review as
institutional sales material under NYSE
Rule 472 Supplementary Material .10(6)
(i.e., to determine that it is not research
or advertising), and to review for
conflicts of interest (e.g.,
recommendations of securities in which
the author or the firm holds a
proprietary position); and
(6) Whether the material complies
with the content standards of NYSE
Rule 472(i).
In sum, the Exchange believes the
proposed amendment would expedite
the transmission of time-sensitive
market materials to sophisticated
customers, while retaining appropriate
supervisory controls, follow-up, and
review.
It is also proposed that paragraph
472(a)(2) be repositioned and
renumbered 472(a)(3) and that the
reference to this paragraph in 472.10(2)
be likewise amended to reflect the
change. The NYSE believes that these
are non-substantive amendments.
(2) Statutory Basis
The statutory basis for this proposed
rule change is Section 6(b)(5) of the
Exchange Act 17 which requires, among
other things, that the rules of the
Exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, and in general to
protect investors and the public
interests. The proposed rule is
consistent with this section in that it
would expedite transmission of time
sensitive communication to
16 See NYSE Information Memo No. 91–22, dated
June 28, 1991 for joint NYSE/NASD guidance on
‘‘Chinese Wall’’ policies and procedures with
respect to material, non-public information.
17 15 U.S.C. 78f(b)(5).
VerDate Aug<31>2005
18:27 Nov 02, 2005
Jkt 208001
sophisticated investors while retaining
appropriate controls, follow-up, and
review of such materials and persons.
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 not
necessary or appropriate in furtherance
of the purposes of the Exchange Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding, or
(ii) as to which the Exchange consents,
the Commission:
(a) By order approve such proposed
rule change, or
(b) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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 e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2005–17 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number SR–NYSE–2005–17. 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
PO 00000
Frm 00070
Fmt 4703
Sfmt 4703
66885
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 NYSE. 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–NYSE–2005–17 and should
be submitted on or before November 25,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.18
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6094 Filed 11–2–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52672; File No. SR–PCX–
2005–121]
Self-Regulatory Organizations; Pacific
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Add to Its Current
Revenue Sharing Program an
Opportunity To Share in ETP Operating
Revenue for Cross Orders in Tape C
Securities
October 25, 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 October
21, 2005, the Pacific Exchange, Inc.
(‘‘PCX’’ or ‘‘Exchange’’), through its
wholly owned subsidiary, PCX Equities,
Inc. (‘‘PCXE’’), filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\03NON1.SGM
03NON1
66886
Federal Register / Vol. 70, No. 212 / Thursday, November 3, 2005 / Notices
by the Exchange. The Exchange filed the
proposal pursuant to Section 19(b)(3)(A)
of the Act,3 and Rule 19b–4(f)(6) 4
thereunder,5 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 Exchange proposes to amend its
rules governing the Archipelago
Exchange (‘‘ArcaEx’’), the equities
trading facility of PCXE. With this
proposed rule change, the Exchange
proposes to add to its current revenue
sharing program an opportunity to share
in ETP Operating Revenue for Cross
Orders 6 in Tape C securities. The text
of the proposed rule change is available
at the PCX’s Web site (https://
www.pacificex.com), at the PCX’s
principal office, 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
its proposal and discussed any
comments it received regarding the
proposal. 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
The Exchange proposes to modify the
current ArcaEx revenue sharing program
applicable to Cross Orders executed in
ArcaEx Tape C securities. The Exchange
proposes to add language to the ArcaEx
fee schedule describing the new ETP
Operating Revenue sharing program.
The proposal is similar to revenue
sharing programs currently in place at
the Nasdaq Stock Market and the
National Stock Exchange,7 although it
3 15
U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
5 The Exchange provided the Commission with
written notice of its intention to file this proposed
rule change on September 9, 2005. See Rule 19b–
4(f)(6), 17 CFR 240.19b–4(f)(6).
6 See PCXE Rule 7.31 for Cross Order definitions.
7 See Securities Exchange Act Release Nos. 48303
(August 8, 2003), 68 FR 48654 (August 14, 2003)
VerDate Aug<31>2005
18:27 Nov 02, 2005
Jkt 208001
will be a more narrow application of
such programs because it is limited to
Cross Orders.
Under the proposal, ETP Holders
would be eligible to share in ETP
Operating Revenue (‘‘ETPOR’’)
associated with Cross Orders in Tape C
securities. Specifically, ETPOR is
defined as operating revenue that is
generated by ETP Holders and consists
of transaction fees and market data
revenue that is attributable to ETP
Holders’ Cross Order executions.
ETPOR shall not include any
investment income or regulatory
monies.
The sharing of ETPOR shall be based
on each ETP Holder’s pro rata
contribution to ETPOR and the amount
shared shall not exceed ETPOR. Under
the proposal, PCX’s Board of Directors
would have the authority to determine
the appropriate amount of ETPOR to be
shared with ETP Holders. In making this
determination, the Board would balance
the objective of sharing a meaningful
percentage of ETPOR with the objective
of maintaining ArcaEx’s financial
integrity.8 Such payments would be
made quarterly after ArcaEx has
accounted for operating expenses and
working capital contributions. ArcaEx
proposes to implement such changes
effective November 1, 2005.
A specific example of how the
proposal would be implemented
follows.
First, the number of cross order
executions in Tape C securities would
be determined by ETP Holder for the
quarter. Second, transaction fees and
market data revenue (ETPOR) associated
with such executions would be
calculated. Third, PCX’s Board of
Directors would determine what
percentage of ETPOR would be shared
with ETP Holders. Fourth, that
percentage would be allocated on a pro
rata basis to ETP Holders based on their
relative number of cross order
executions in Tape C securities.
The rationale for these changes is to
reduce the costs incurred by ETP
Holders in executing Cross Orders on
ArcaEx and to make the pricing for
executions on the ArcaEx more
competitive. The Exchange evaluated
the economics of modifying its current
revenue sharing program and
and 46688 (October 18, 2002), 67 FR 65816 (October
28, 2002). The NSX program includes book fees and
technology fees, and the Nasdaq program includes
technology fees. ArcaEx does not charge technology
fees or book fees, and as such, these fees are not
included in the proposed calculation of ETP
Operating Revenue, infra.
8 Regulatory fees are currently separately
allocated to PCX and as such, ArcaEx will not
compromise funds that would be used for
regulatory responsibilities.
PO 00000
Frm 00071
Fmt 4703
Sfmt 4703
determined that is [sic] was feasible and
appropriate, given the costs involved
and competitive concerns.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) 9 of the Act, in general, and
furthers the objectives of Section
6(b)(5),10 in particular, because it is
designed to facilitate transactions in
securities, to promote just and equitable
principles of trade, to enhance
competition, and to protect investors
and the public interest.
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
Because the foregoing proposed rule
change does not:
(i) Significantly affect the protection
of investors or the public interest;
(ii) Impose any significant burden on
competition; and
(iii) Become operative for 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 11 and Rule 19b–4(f)(6)
thereunder.12 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.
The PCX has asked the Commission to
waive the 30-day operative delay. The
Commission believes waiving the 30day operative delay is consistent with
the protection of investors and the
public interest. Such waiver will allow
the PCX to implement competitive
pricing of ArcaEx Cross Orders in Tape
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(6).
10 15
E:\FR\FM\03NON1.SGM
03NON1
Federal Register / Vol. 70, No. 212 / Thursday, November 3, 2005 / Notices
C securities. For these reasons, the
Commission designates the proposal to
be effective and operative upon filing
with the Commission.13
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–PCX–2005–121 on the
subject line.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6083 Filed 11–2–05; 8:45 am]
BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration # 10222 and # 10223]
Florida Disaster # FL–00011
Small Business Administration.
Notice.
AGENCY:
ACTION:
SUMMARY: This is a Notice of the
Presidential declaration of a major
disaster for the State of Florida (FEMA–
1609–DR), dated October 24, 2005.
Incident: Hurricane Wilma.
Incident Period: October 23, 2005 and
Paper Comments
continuing.
• Send paper comments in triplicate
Effective Date: October 24, 2005.
to Jonathan G. Katz, Secretary,
Physical Loan Application Deadline
Securities and Exchange Commission,
Date: December 23, 2005.
100 F Street, NE, Washington, DC
EIDL Loan Application Deadline Date:
20549–9303.
July 24, 2006.
All submissions should refer to File
ADDRESSES: Submit completed loan
Number SR–PCX–2005–121. This file
applications to: U.S. Small Business
number should be included on the
subject line if e-mail is used. To help the Administration, National Processing
and Disbursement Center, 14925
Commission process and review your
Kingsport Road, Fort Worth, TX 76155.
comments more efficiently, please use
only one method. The Commission will FOR FURTHER INFORMATION CONTACT: A.
post all comments on the Commission’s Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
Internet Web site (https://www.sec.gov/
409 3rd Street, Suite 6050, Washington,
rules/sro.shtml). Copies of the
DC 20416.
submission, all subsequent
amendments, all written statements
SUPPLEMENTARY INFORMATION: Notice is
with respect to the proposed rule
hereby given that as a result of the
change that are filed with the
President’s major disaster declaration on
Commission, and all written
October 24, 2005, applications for
communications relating to the
disaster loans may be filed at the
proposed rule change between the
address listed above or other locally
Commission and any person, other than announced locations.
those that may be withheld from the
The following areas have been
public in accordance with the
determined to be adversely affected by
provisions of 5 U.S.C. 552, will be
the disaster:
available for inspection and copying in
Primary Counties:
the Commission’s Public Reference
Collier, Lee, and Monroe.
Room. Copies of such filing also will be Contiguous Counties:
available for inspection and copying at
Florida: Broward, Charlotte, Glades,
the principal office of the PCX.
Hendry, and Miami-Dade.
All comments received will be posted
The Interest Rates are:
without change; the Commission does
not edit personal identifying
Percent
information from submissions. You
should submit only information that
Homeowners with Credit Available
you wish to make available publicly. All
Elsewhere ...................................
5.375
Homeowners without Credit Availsubmissions should refer to File
able Elsewhere ...........................
2.687
Number SR–PCX–2005–121 and should
be submitted on or before November 25, Businesses with Credit Available
Elsewhere ...................................
6.557
2005.
13 For
purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Aug<31>2005
18:27 Nov 02, 2005
Jkt 208001
Businesses & Small Agricultural
Cooperatives
without
Credit
Available Elsewhere ....................
14 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00072
Fmt 4703
Sfmt 4703
4.000
66887
Percent
Other (Including Non-Profit Organizations) with Credit Available
Elsewhere ...................................
Businesses and Non-Profit Organizations without Credit Available
Elsewhere ...................................
4.750
4.000
The number assigned to this disaster
for physical damage is 102228 and for
economic injury is 102230.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Herbert L. Mitchell,
Associate Administrator for Disaster
Assistance.
[FR Doc. 05–21956 Filed 11–2–05; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration # 10222 and # 10223]
Florida Disaster Number FL–00011
Small Business Administration.
Amendment 1.
AGENCY:
ACTION:
SUMMARY: This is an amendment of the
Presidential declaration of a major
disaster for the State of Florida (FEMA–
1609–DR), dated 10/24/2005.
Incident: Hurricane Wilma.
Incident Period: 10/23/2005 and
continuing.
Effective Date: 10/26/2005.
Physical Loan Application Deadline
Date: 12/23/2005.
EIDL Loan Application Deadline Date:
07/24/2006.
ADDRESSES: Submit completed loan
applications to: Small Business
Administration, National Processing
and Disbursement Center, 14925
Kingsport Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, Suite 6050, Washington,
DC 20416.
SUPPLEMENTARY INFORMATION: The notice
of the Presidential disaster declaration
for the State of Florida, dated 10/24/
2005, is hereby amended to include the
following areas as adversely affected by
the disaster:
Primary Counties:
Broward, Glades, Hendry, MiamiDade, Martin, Palm Beach, and St.
Lucie.
Contiguous Counties:
Florida: De Soto, Highlands, Indian
River, and Okeechobee.
All other information in the original
declaration remains unchanged.
E:\FR\FM\03NON1.SGM
03NON1
]]>Agencies
[Federal Register Volume 70, Number 212 (Thursday, November 3, 2005)]
[Notices]
[Pages 66885-66887]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-6083]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52672; File No. SR-PCX-2005-121]
Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Add to
Its Current Revenue Sharing Program an Opportunity To Share in ETP
Operating Revenue for Cross Orders in Tape C Securities
October 25, 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 October 21, 2005, the Pacific Exchange, Inc. (``PCX'' or
``Exchange''), through its wholly owned subsidiary, PCX Equities, Inc.
(``PCXE''), filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared
[[Page 66886]]
by the Exchange. The Exchange filed the proposal pursuant to Section
19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(6) \4\ thereunder,\5\
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).
\4\ 17 CFR 240.19b-4(f)(6).
\5\ The Exchange provided the Commission with written notice of
its intention to file this proposed rule change on September 9,
2005. See Rule 19b-4(f)(6), 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its rules governing the Archipelago
Exchange (``ArcaEx''), the equities trading facility of PCXE. With this
proposed rule change, the Exchange proposes to add to its current
revenue sharing program an opportunity to share in ETP Operating
Revenue for Cross Orders \6\ in Tape C securities. The text of the
proposed rule change is available at the PCX's Web site (https://
www.pacificex.com), at the PCX's principal office, and at the
Commission's Public Reference Room.
---------------------------------------------------------------------------
\6\ See PCXE Rule 7.31 for Cross Order definitions.
---------------------------------------------------------------------------
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 its proposal and discussed any
comments it received regarding the proposal. 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
The Exchange proposes to modify the current ArcaEx revenue sharing
program applicable to Cross Orders executed in ArcaEx Tape C
securities. The Exchange proposes to add language to the ArcaEx fee
schedule describing the new ETP Operating Revenue sharing program. The
proposal is similar to revenue sharing programs currently in place at
the Nasdaq Stock Market and the National Stock Exchange,\7\ although it
will be a more narrow application of such programs because it is
limited to Cross Orders.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release Nos. 48303 (August 8,
2003), 68 FR 48654 (August 14, 2003) and 46688 (October 18, 2002),
67 FR 65816 (October 28, 2002). The NSX program includes book fees
and technology fees, and the Nasdaq program includes technology
fees. ArcaEx does not charge technology fees or book fees, and as
such, these fees are not included in the proposed calculation of ETP
Operating Revenue, infra.
---------------------------------------------------------------------------
Under the proposal, ETP Holders would be eligible to share in ETP
Operating Revenue (``ETPOR'') associated with Cross Orders in Tape C
securities. Specifically, ETPOR is defined as operating revenue that is
generated by ETP Holders and consists of transaction fees and market
data revenue that is attributable to ETP Holders' Cross Order
executions. ETPOR shall not include any investment income or regulatory
monies.
The sharing of ETPOR shall be based on each ETP Holder's pro rata
contribution to ETPOR and the amount shared shall not exceed ETPOR.
Under the proposal, PCX's Board of Directors would have the authority
to determine the appropriate amount of ETPOR to be shared with ETP
Holders. In making this determination, the Board would balance the
objective of sharing a meaningful percentage of ETPOR with the
objective of maintaining ArcaEx's financial integrity.\8\ Such payments
would be made quarterly after ArcaEx has accounted for operating
expenses and working capital contributions. ArcaEx proposes to
implement such changes effective November 1, 2005.
---------------------------------------------------------------------------
\8\ Regulatory fees are currently separately allocated to PCX
and as such, ArcaEx will not compromise funds that would be used for
regulatory responsibilities.
---------------------------------------------------------------------------
A specific example of how the proposal would be implemented
follows.
First, the number of cross order executions in Tape C securities
would be determined by ETP Holder for the quarter. Second, transaction
fees and market data revenue (ETPOR) associated with such executions
would be calculated. Third, PCX's Board of Directors would determine
what percentage of ETPOR would be shared with ETP Holders. Fourth, that
percentage would be allocated on a pro rata basis to ETP Holders based
on their relative number of cross order executions in Tape C
securities.
The rationale for these changes is to reduce the costs incurred by
ETP Holders in executing Cross Orders on ArcaEx and to make the pricing
for executions on the ArcaEx more competitive. The Exchange evaluated
the economics of modifying its current revenue sharing program and
determined that is [sic] was feasible and appropriate, given the costs
involved and competitive concerns.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) \9\ of the Act, in general, and furthers the
objectives of Section 6(b)(5),\10\ in particular, because it is
designed to facilitate transactions in securities, to promote just and
equitable principles of trade, to enhance competition, and to protect
investors and the public interest.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 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 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
Because the foregoing proposed rule change does not:
(i) Significantly affect the protection of investors or the public
interest;
(ii) Impose any significant burden on competition; and
(iii) Become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \11\ and
Rule 19b-4(f)(6) thereunder.\12\ 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
The PCX has asked the Commission to waive the 30-day operative
delay. The Commission believes waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
Such waiver will allow the PCX to implement competitive pricing of
ArcaEx Cross Orders in Tape
[[Page 66887]]
C securities. For these reasons, the Commission designates the proposal
to be effective and operative upon filing with the Commission.\13\
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\13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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-2005-121 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549-9303.
All submissions should refer to File Number SR-PCX-2005-121. 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-2005-121
and should be submitted on or before November 25, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. E5-6083 Filed 11-2-05; 8:45 am]
BILLING CODE 8010-01-P
