Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Exchange Fees and Charges, 4955-4956 [E6-1088]

Download as PDF Federal Register / Vol. 71, No. 19 / Monday, January 30, 2006 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53165; File No. SR–PCX– 2005–136] Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Exchange Fees and Charges January 20, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on December 30, 2005, the Pacific Exchange, Inc. (‘‘Exchange’’ or ‘‘PCX’’) 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 the PCX. On January 18, 2006, the PCX filed Amendment No. 1 to the proposed rule change.3 The PCX has designated this proposal as establishing or changing a due, fee, or other charge imposed by a selfregulatory organization pursuant to Section 19(b)(3)(A) of the Act 4 and Rule 19b–4(f)(2) 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, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The PCX proposes to amend its Schedule of Fees and Charges for option contracts. The text of the proposed rule change is available on the PCX Web site, (http://www.archipelago.com), at the PCX’s principal office, and at the Commission’s Public Reference Room. cprice-sewell on PROD1PC66 with NOTICES 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 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. The PCX has prepared 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 In Amendment No. 1, the PCX made nonsubstantive changes to the text of the proposed rule change and made clarifying changes to the purpose section. 4 15 U.S.C. 78s(b)(3)(A). 5 17 CFR 240.19b–4(f)(2). 2 17 VerDate Aug<31>2005 14:07 Jan 27, 2006 Jkt 208001 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 PCX charges transaction fees associated with all option contracts that are executed on the Exchange. Presently there are four categories of transaction fees included in the PCX Schedule of Rates and Charges: Customer, Firm, Broker/Dealer, and Market Maker. The current Firm transaction fee applies to OTP Firm 6 proprietary trades that have a customer of that firm on the contra side of the transaction. The Exchange offers this rate as an incentive to OTP Firms to direct their customer orders to PCX for execution. In the past, these transactions were brokered between an OTP Firm’s proprietary trading account, which was an off-floor account, and the account of a customer of the same OTP Firm. Market Makers did not historically participate in these types of trades. With the changes in the structure of how OTP Firms conduct their business, many OTP Firms now have market making entities on the PCX. At present, the Exchange does not apply the Firm transaction fee to PCX Market Makers that transact with customers of that Market Maker’s OTP Firm. The Exchange proposes to expand the application of the Firm transaction fee to PCX market maker accounts. In order to be consistent, the PCX proposes to apply the Firm transaction fee to all trades between an OTP Firm and a customer of the same OTP Firm, no matter what proprietary account the Firm uses to effect the trade. The Firm transaction fee will be assessed to market maker accounts in lieu of, not in addition to, the Market Maker fee presently charged. This will in effect offer a lower rate for market maker transactions when a Market Maker is trading with a customer of the Market Maker’s OTP Firm. The Firm fee will apply only to accounts of Market Makers associated with OTP Holders or OTP Firms of the PCX. Many OTP Firms operate as Market Makers on the PCX and, as such, trade with customers of their OTP Firm. By applying the Firm transaction fee to all transactions, including market maker 6 An OTP Firm is defined in PCX Rule 1(r) as ‘‘a sole proprietorship, partnership, corporation, limited liability company or other organization in good standing who holds an OTP or upon whom an individual OTP Holder has conferred trading privileges on the Exchange’s Trading Facilities * * *’’ PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 4955 accounts, involving an OTP Firm’s customers, the PCX hopes to attract additional order flow, which in turn should create additional liquidity providing better markets for all trading participants. The Exchange intends to make the new fee effective as of January 3, 2006. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act 7 in general, and furthers the objectives of Section 6(b)(4) of the Act 8 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among its members. OTP Holders and OTP Firms are considered ‘‘members’’ of the Exchange under the Act. 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 The Exchange has neither solicited nor received comments on the proposed rule change. 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) of the Act 9 and subparagraph (f)(2) of Rule 19b–4 thereunder,10 because it establishes or changes a due, fee, or other charge imposed by 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 purposes of the Act.11 7 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 9 15 U.S.C. 78s(b)(3)(A). 10 17 CFR 240.19b–4(f)(2). 11 The effective date of the original proposed rule change is December 30, 2005, and the effective date of Amendment No. 1 is January 18, 2006. For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change, as amended, under Section 19(b)(3)(C) of the Act, the Commission considers the period to commence on January 18, 2006, the date on which the PCX submitted Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C). 8 15 E:\FR\FM\30JAN1.SGM 30JAN1 4956 Federal Register / Vol. 71, No. 19 / Monday, January 30, 2006 / Notices 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: For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Nancy M. Morris, Secretary. [FR Doc. E6–1088 Filed 1–27–06; 8:45 am] BILLING CODE 8010–01–P SMALL BUSINESS ADMINISTRATION • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–PCX–2005–136 on the subject line. cprice-sewell on PROD1PC66 with NOTICES Electronic Comments [Disaster Declaration #10222 and #10223] Florida Disaster Number FL–00011 U.S. Small Business Administration. ACTION: Amendment 6. AGENCY: SUMMARY: This is an amendment of the Presidential declaration of a major Paper Comments disaster for the State of Florida ( FEMA– 1609–DR), dated October 24, 2005. • Send paper comments in triplicate Incident: Hurricane Wilma. to Nancy M. Morris, Secretary, Incident Period: October 23, 2005 Securities and Exchange Commission, through November 18, 2005. 100 F Street, NE., Washington, DC Effective Date: January 20, 2006. 20549–9303. Physical Loan Application Deadline Date: January 31, 2006. All submissions should refer to File EIDL Loan Application Deadline Date: Number SR–PCX–2005–136. This file July 24, 2006. number should be included on the subject line if e-mail is used. To help the ADDRESSES: Submit completed loan applications to: U.S. Small Business Commission process and review your Administration, National Processing comments more efficiently, please use only one method. The Commission will and Disbursement Center, 14925 post all comments on the Commission’s Kingsport Road, Fort Worth , TX 76155. FOR FURTHER INFORMATION CONTACT: A. Internet Web site (http://www.sec.gov/ Escobar, Office of Disaster Assistance, rules/sro.shtml). Copies of the U.S. Small Business Administration, submission, all subsequent 409 3rd Street, SW., Suite 6050, amendments, all written statements Washington, DC 20416 with respect to the proposed rule SUPPLEMENTARY INFORMATION: The notice change that are filed with the of the President’s major disaster Commission, and all written declaration for the State of Florida, communications relating to the dated October 24, 2005, is hereby proposed rule change between the Commission and any person, other than amended to extend the deadline for filing applications for physical damages those that may be withheld from the as a result of this disaster to January 31, public in accordance with the 2006. provisions of 5 U.S.C. 552, will be All other information in the original available for inspection and copying in declaration remains unchanged. the Commission’s Public Reference (Catalog of Federal Domestic Assistance Room. Copies of the filing also will be Numbers 59002 and 59008) available for inspection and copying at the principal office of the PCX. All Cheri L. Cannon, comments received will be posted Acting Associate Administrator for Disaster without change; the Commission does Assistance. not edit personal identifying [FR Doc. E6–1082 Filed 1–27–06; 8:45 am] information from submissions. You BILLING CODE 8025–01–P should submit only information that you wish to make available publicly. All SMALL BUSINESS ADMINISTRATION submissions should refer to File Number SR–PCX–2005–136 and should Advisory Committee on Veterans be submitted on or before February 21, Business Affairs Public Meeting 2006. The U.S. Small Business Administration (SBA) Advisory 12 17 VerDate Aug<31>2005 14:07 Jan 27, 2006 Jkt 208001 PO 00000 CFR 200.30–3(a)(12). Frm 00067 Fmt 4703 Sfmt 4703 Committee on Veterans Business Affairs, pursuant to the Veterans Entrepreneurship and Small Business Development Act of 1999 (Pub. L. 106– 50), will host a public meeting on Tuesday, February 7, 2006 until Wednesday, February 8, 2006. The meeting will be held at the U.S. Small Business Administration, 409 3rd Street SW., Washington, DC 20416. This meeting will start at 9 am until 5 pm, in the Administrator’s Conference Room located on the 7th Floor, Suite 700. Anyone wishing to attend must contact Cheryl Clark, Program Liaison, in the Office of Veterans Business Development, at (202) 205–6773, or email Cheryl.Clark@sba.gov. Matthew K. Becker, Committee Management Officer. [FR Doc. E6–1081 Filed 1–27–06; 8:45 am] BILLING CODE 8025–01–P SMALL BUSINESS ADMINISTRATION Small Business Size Standards: Waiver of the Nonmanufacturer Rule Small Business Administration. Notice of denial to waive the Nonmanufacturer Rule for Commercial Cooking Equipment. AGENCY: ACTION: SUMMARY: The U. S. Small Business Administration (SBA) is denying a request for a waiver of the Nonmanufacturer Rule for Commercial Cooking Equipment based on our recent discovery of a small business manufacturer for this class of products. Denying this waiver will require recipients of contracts set aside for small businesses, service-disabled veteran-owned small businesses, or SBA’s 8(a) Business Development Program to provide the products of small business manufacturers or processors on such contracts. DATES: This notice of denial is effective February 14, 2006. FOR FURTHER INFORMATI0N CONTACT: Edith Butler, Program Analyst, by telephone at (202) 619–0422; by fax at (202) 481–1788; or by e-mail at edith.butler@sba.gov. SUPPLEMENTARY INFORMATION: Section 8(a)(17) of the Small Business Act (Act), 15 U.S.C. 637(a)(17), requires that recipients of Federal contracts set aside for small businesses, service-disabled veteran-owned small businesses, or SBA’s 8(a) Business Development Program provide the product of a small business manufacturer or processor, if the recipient is other than the actual manufacturer or processor of the product. This requirement is commonly E:\FR\FM\30JAN1.SGM 30JAN1

Agencies

[Federal Register Volume 71, Number 19 (Monday, January 30, 2006)]
[Notices]
[Pages 4955-4956]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-1088]



[[Page 4955]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53165; File No. SR-PCX-2005-136]


Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change and 
Amendment No. 1 Thereto Relating to Exchange Fees and Charges

January 20, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on December 30, 2005, the Pacific Exchange, Inc. (``Exchange'' or 
``PCX'') 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 the PCX. On January 
18, 2006, the PCX filed Amendment No. 1 to the proposed rule change.\3\ 
The PCX has designated this proposal as establishing or changing a due, 
fee, or other charge imposed by a self-regulatory organization pursuant 
to Section 19(b)(3)(A) of the Act \4\ and Rule 19b-4(f)(2) 
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, as amended, from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the PCX made non-substantive changes to 
the text of the proposed rule change and made clarifying changes to 
the purpose section.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The PCX proposes to amend its Schedule of Fees and Charges for 
option contracts. The text of the proposed rule change is available on 
the PCX Web site, (http://www.archipelago.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 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. The 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 PCX charges transaction fees associated with all option 
contracts that are executed on the Exchange. Presently there are four 
categories of transaction fees included in the PCX Schedule of Rates 
and Charges: Customer, Firm, Broker/Dealer, and Market Maker. The 
current Firm transaction fee applies to OTP Firm \6\ proprietary trades 
that have a customer of that firm on the contra side of the 
transaction. The Exchange offers this rate as an incentive to OTP Firms 
to direct their customer orders to PCX for execution. In the past, 
these transactions were brokered between an OTP Firm's proprietary 
trading account, which was an off-floor account, and the account of a 
customer of the same OTP Firm. Market Makers did not historically 
participate in these types of trades. With the changes in the structure 
of how OTP Firms conduct their business, many OTP Firms now have market 
making entities on the PCX. At present, the Exchange does not apply the 
Firm transaction fee to PCX Market Makers that transact with customers 
of that Market Maker's OTP Firm. The Exchange proposes to expand the 
application of the Firm transaction fee to PCX market maker accounts. 
In order to be consistent, the PCX proposes to apply the Firm 
transaction fee to all trades between an OTP Firm and a customer of the 
same OTP Firm, no matter what proprietary account the Firm uses to 
effect the trade. The Firm transaction fee will be assessed to market 
maker accounts in lieu of, not in addition to, the Market Maker fee 
presently charged. This will in effect offer a lower rate for market 
maker transactions when a Market Maker is trading with a customer of 
the Market Maker's OTP Firm. The Firm fee will apply only to accounts 
of Market Makers associated with OTP Holders or OTP Firms of the PCX.
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    \6\ An OTP Firm is defined in PCX Rule 1(r) as ``a sole 
proprietorship, partnership, corporation, limited liability company 
or other organization in good standing who holds an OTP or upon whom 
an individual OTP Holder has conferred trading privileges on the 
Exchange's Trading Facilities * * *''
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    Many OTP Firms operate as Market Makers on the PCX and, as such, 
trade with customers of their OTP Firm. By applying the Firm 
transaction fee to all transactions, including market maker accounts, 
involving an OTP Firm's customers, the PCX hopes to attract additional 
order flow, which in turn should create additional liquidity providing 
better markets for all trading participants. The Exchange intends to 
make the new fee effective as of January 3, 2006.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \7\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act \8\ in particular, in that it 
is designed to provide for the equitable allocation of reasonable dues, 
fees, and other charges among its members. OTP Holders and OTP Firms 
are considered ``members'' of the Exchange under the Act.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

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 comments on the 
proposed rule change.

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) of the Act \9\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\10\ because it establishes or changes a due, fee, or other 
charge imposed by 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 purposes of 
the Act.\11\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(2).
    \11\ The effective date of the original proposed rule change is 
December 30, 2005, and the effective date of Amendment No. 1 is 
January 18, 2006. For purposes of calculating the 60-day period 
within which the Commission may summarily abrogate the proposed rule 
change, as amended, under Section 19(b)(3)(C) of the Act, the 
Commission considers the period to commence on January 18, 2006, the 
date on which the PCX submitted Amendment No. 1. See 15 U.S.C. 
78s(b)(3)(C).

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[[Page 4956]]

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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-PCX-2005-136 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.

All submissions should refer to File Number SR-PCX-2005-136. 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 (http://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 the 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-
2005-136 and should be submitted on or before February 21, 2006.

    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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Nancy M. Morris,
Secretary.
 [FR Doc. E6-1088 Filed 1-27-06; 8:45 am]
BILLING CODE 8010-01-P