[Federal Register Volume 62, Number 220 (Friday, November 14, 1997)]
[Notices]
[Pages 61160-61161]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29933]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39311; File No. SR-PCX-97-40]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. 
Relating to a Fee Change for ASAP Members

November 7, 1997.
    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 30, 1997, the Pacific Exchange, Inc. (``PCX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC'') the proposed rule change as described in 
Items I, II and III below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange is proposing to modify its Schedule of Rates for 
Exchange Services by changing its annual fee for Automatic System 
Access Privilege (``ASAP'') Members.\3\ The text of the proposed rule 
is available at the Office of the Secretary, the PCX, and at the 
Commission.
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    \3\ ASAP Memberships are governed by PCX Rule 1.14.
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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 self-regulatory organization 
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 self-regulatory organization 
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
    Under the Exchange's current Schedule of Rates, an ASAP Member is 
required to pay the Exchange an annual fee equal to 20% of the average 
price of Exchange membership sales in the three months immediately 
preceding the Member's activation or renewal of membership.\4\ The 
minimum ASAP fee is $4,000 (and it is non-refundable).
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    \4\ See Exchange Act Release No. 37913 (November 1, 1996) 61 FR 
57936 (November 8, 1996) (PCX-96-33). In that filing, the Exchange 
had changed its fee from $4,000 a year to the current schedule as 
described in the text.
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    The Exchange is now proposing to modify this fee, making it $4,000 
per year (non-refundable).
    The Exchange is reducing its fee for ASAP memberships in order to 
make its rates applicable to electronic trading more competitive. The 
proposal is also intended to reduce the significant increase in fees 
for ASAP memberships that has accompanied the recent rise in Exchange 
seat prices.\5\
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    \5\ A PCX seat was sold for $380,000 recently; about the same 
time last year, a seat was sold for $145,000. Telephone conversation 
between Michael D. Pierson, Senior Attorney, PCX, and Vicky Berberi-
Doumar, Special Counsel, Division of Market Regulation, Commission, 
on November 4, 1997.
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2. Statutory Basis
    The proposal is consistent with Section 6(b) of the Act, in 
general, and Section 6(b)(4),\6\ in particular, in that it is designed 
to provide for the equitable allocation of reasonable dues, fees and 
other charges among its members.
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    \6\ 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

    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 rule change establishes or changes a due, 
fee, or other charge imposed by the Exchange, it has become effective 
pursuant to Section 19(b)(3)(A) \7\ of the Act and Rule 19b-4(e) under 
the Act.\8\ 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(e).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549. 
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

[[Page 61161]]

available for inspection and copying in the Commission's Public 
Reference Room, 450 Fifth Street, N.W., Washington, D.C. 20549. Copies 
of such filing will also be available for inspection and copying at the 
principal office of the PCX. All submissions should refer to File No. 
SR-PCX-97-40 and should be submitted by December 5, 1997.

    For the Commission, by the Division of Market Regulations, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-29933 Filed 11-13-97; 8:45 am]
BILLING CODE 8010-01-M