Document ID: SEC-2006-0378-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Pacific Exchange, Inc.
Posted Date: 2006-03-22T05:00Z

[Federal Register: March 22, 2006 (Volume 71, Number 55)]
[Notices]               
[Page 14564-14565]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22mr06-114]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53485; File No. SR-PCX-2006-15]

 
Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Make 
Certain Housekeeping Changes to Its Schedule of Fees and Charges

March 14, 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 February 23, 2006, 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 the Exchange. The PCX 
filed the proposed rule change pursuant to Section 19(b)(3)(A)(ii) of 
the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 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 
(``Schedule'') in order to make certain housekeeping changes to the 
Schedule. The text of the proposed rule change is available at NYSE 
Arca, at http://www.archipelago.com/regulation/filings.asp and at the 

Commission.

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 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 purpose of this proposed rule change is to make certain 
housekeeping changes to the PCX Schedule.

Trade Related Charges

    On the present Schedule, in the section entitled Trade Related 
Charges, the rate table shows transaction fees for different market 
participants. Presently the Firm transaction fee is $0.10 per contract, 
the Broker/Dealers transaction fee is $0.21 per contract and the Market 
Makers transaction fee is $0.21 per contract. Customers are not charged 
a transaction fee. In this same table is the On-Line Comparison fee, 
which is $0.05, assessed on all Firm, Broker/Dealer and Market Maker 
transactions. The On-Line Comparison fee is not assessed on Customer 
transactions.
    Since the On-Line Comparison fee is the same for Firm, Broker/
Dealer and Market Maker transactions, and is not charged on Customer 
transactions, the PCX proposes to simplify the Schedule by eliminating 
the separate On-Line Comparison fee and incorporating it into the 
transaction fees. Under the new Schedule, the rate table will now show 
the Firm transaction Fee of $0.15 per contract, the Broker/Dealer 
transaction fee of $0.26 per contract and the Market Maker transaction 
fee of $0.26 per contract. The Customer transaction fee will remain at 
zero. While the published rate schedule will appear different than it 
presently does, there is actually no net change to the amount the 
Exchange assesses for trade related charges.

Order Cancellation Fee

    The PCX proposes to correct an error in the footnote associated 
with this fee. The PCX charges an OTP Firm a cancellation fee, under 
certain conditions, when it cancels a certain number of orders in any 
given month. In the footnote attached to this fee, under condition (i), 
where it reads ``500 contracts'' the word ``contracts'' was mistakenly 
used instead of ``orders.'' In order to make the rule text consistent, 
the PCX proposes to change the word to now read ``orders''.
2. Statutory Basis
    The PCX believes the proposed rule change is consistent with 
Section 6(b) of the Act,\5\ in general, and furthers the objectives of 
Section 6(b)(4) of the Act,\6\

[[Page 14565]]

in particular, in that it is designed to provide for the equitable 
allocation of reasonable dues, fees and other charges among its members 
and issuers and other persons using its facilities.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15.U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The PCX 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 applicable only to a member imposed by the 
Exchange, it has become effective upon filing pursuant to section 
19(b)(3)(A)(ii) of the Act \7\ and subparagraph (f)(2) of Rule 19b-4 
thereunder.\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 the Act.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 U.S.C. 240.19b-4(f)(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 No. SR-PCX-2006-15 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

    All submissions should refer to File Number SR-PCX-2006-15. 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-2006-15 and should be submitted on or before April 
12, 2006.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
Nancy M. Morris,
Secretary.
[FR Doc. E6-4121 Filed 3-21-06; 8:45 am]

BILLING CODE 8010-01-P