Document ID: SEC-2005-0361-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Pacific Exchange, Inc.
Posted Date: 2005-12-12T05:00Z

[Federal Register: December 12, 2005 (Volume 70, Number 237)]
[Notices]               
[Page 73506-73507]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12de05-104]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52882; File No. SR-PCX-2005-130]

 
Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating to 
Market Maker Transaction Credits for Round Lots of Certain Listed 
Securities

December 2, 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 November 29, 2005, the Pacific Exchange, Inc. (``PCX'' or 
``Exchange''), through its wholly-owned subsidiary PCX Equities, Inc. 
(``PCXE''), submitted to 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. The Exchange 
filed the proposed rule change pursuant to Section 19(b)(3)(A) of the 
Act \3\ which renders it effective upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the PCXE Schedule of Fees and 
Charges (``Schedule'') to reduce the transaction credit payable to 
Market Makers for the execution of round lot orders of NYSE listed 
securities. The text of the proposed rule change is below. Additions 
are italicized; deletions are [bracketed].

Schedule of Fees and Charges for Exchange Services

Archipelago Exchange: Market Maker Fees and Charges

* * * * *

                    Market Maker Transaction Credits

Round Lots:
    NYSE Listed Securities [(other than  $0.001[25] per share (credit)
     ETFs and ADRs)].                     (applicable to Q orders
                                          executed against other
                                          participants' orders).
    Listed Securities (other than NYSE   $0.002 per share (credit)
     Listed) and Nasdaq Securities.       (applicable to Q orders
                                          executed against other
                                          participants' orders).

[[Page 73507]]

* * * * *

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

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

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

1.Purpose
    The Exchange proposes to amend the Fee Schedule, effective December 
1, 2005, to reduce the transaction credit payable to Market Makers \4\ 
for Q Orders \5\ executed against other Exchange participants' orders 
for round lots of NYSE listed securities. Currently, the credit to 
Market Makers for transactions of this type is $0.0025 per share; 
however, as a strategy to better manage costs to the Exchange due to an 
increase in Market Maker participants and while maintaining incentives 
for providing liquidity in NYSE listed securities, the Exchange 
proposes to reduce these transaction credits to $0.001 per share for 
NYSE listed securities and maintain the existing $0.002 per share 
credit for securities listed on an exchange other than the NYSE and for 
Nasdaq listed securities.
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    \4\ As defined by PCXE Rule 1.1(u).
    \5\ As defined by PCXE Rule 7.31(k)
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6 of the Act,\6\ in general, and furthers the objectives 
of Section 6(b)(4) of the Act,\7\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees, and other 
charges among its ETP Holders, issuers, and other persons using its 
facilities.
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    \6\ 15 U.S.C. 78f.
    \7\ 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

    The foregoing rule change establishes or changes a due, fee, or 
other charge imposed by the Exchange and therefore has become effective 
pursuant to Section 19(b)(3)(A) of the Act \8\ and subparagraph (f)(2) 
of Rule 19b-4 thereunder.\9\ At any time within 60 days of the filing 
of such 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 purpose of the Act.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(1)(2).
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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 (http://www.sec.gov/rules/sro.shtml.
); or     Send an e-mail to rule-comments@sec.gov. Please include 

File Number SR-PCX-2005-130 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, 20549-0609.
    All submissions should refer to File Number SR-PCX-2005-130. 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 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-2005-130 and should be submitted on or before 
January 3, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
 [FR Doc. E5-7190 Filed 12-9-05; 8:45 am]

BILLING CODE 8010-01-P