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Federal Register / Vol. 70, No.

113 / Tuesday, June 14, 2005 / Notices 34511

in Item IV below. The CBOE has B. Self-Regulatory Organization’s comments more efficiently, please use
prepared summaries, set forth in Statement on Burden on Competition only one method. The Commission will
Sections A, B, and C below, of the most The CBOE does not believe that the post all comments on the Commission’s
significant aspects of such statements. proposed rule change will impose any Internet Web site (http://www.sec.gov/
burden on competition that is not rules/sro.shtml). Copies of the
A. Self-Regulatory Organization’s
necessary or appropriate in furtherance submission, all subsequent
Statement of the Purpose of, and
of the purposes of the Act. amendments, all written statements
Statutory Basis for, the Proposed Rule
with respect to the proposed rule
Change C. Self-Regulatory Organization’s change that are filed with the
1. Purpose Statement on Comments on the Commission, and all written
Proposed Rule Change Received From communications relating to the
The Exchange proposes to amend its Members, Participants or Others proposed rule change between the
Fees Schedule to reduce public
No written comments were solicited Commission and any person, other than
customer transaction fees and the
or received with respect to the proposed those that may be withheld from the
license fee assessed to the Designated
rule change. public in accordance with the
Primary Market-Maker (‘‘DPM’’) and
provisions of 5 U.S.C. 552, will be
market-makers in options on the RUT. III. Date of Effectiveness of the available for inspection and copying in
Specifically, the Exchange proposes to Proposed Rule Change and Timing for the Commission’s Public Reference
reduce public customer transaction fees Commission Action Room. Copies of such filing also will be
to $.15 per contract for transactions in available for inspection and copying at
Because the foregoing rule change
RUT options. Currently, RUT customer the principal office of the CBOE. All
establishes or changes a due, fee, or
transaction fees are $.45 per contract if comments received will be posted
other charge imposed by the Exchange,
the premium is greater than or equal to without change; the Commission does
it has become effective pursuant to
$1 and $.25 per contract if the premium not edit personal identifying
Section 19(b)(3)(A) of the Act 9 and
is less than $1. The Exchange believes information from submissions. You
subparagraph (f)(2) of Rule 19b–4
this proposed fee reduction will help should submit only information that
thereunder.10
the Exchange compete more effectively At any time within 60 days of the you wish to make available publicly. All
for order flow in the RUT product. filing of the proposed rule change, the submissions should refer to File
The Exchange also proposes to reduce Commission may summarily abrogate Number SR–CBOE–2005–31 and should
from $.40 per contract to $.10 per such rule change if it appears to the be submitted on or before July 5, 2005.
contract the license fee that is currently Commission that such action is
assessed on all DPM and market-maker For the Commission, by the Division of
necessary or appropriate in the public Market Regulation, pursuant to delegated
transactions in RUT options (‘‘RUT interest, for the protection of investors, authority.12
License Fee’’). The RUT License Fee is or otherwise in furtherance of the Margaret H. McFarland,
assessed by the Exchange to help it purposes of the Act.11
recoup the license fees the Exchange Deputy Secretary.
pays to the Frank Russell Company IV. Solicitation of Comments [FR Doc. E5–3063 Filed 6–13–05; 8:45 am]
(‘‘Russell’’) for its license to trade the Interested persons are invited to BILLING CODE 8010–01–P
RUT product.6 The Exchange recently submit written data, views, and
renegotiated its license agreement with arguments concerning the foregoing,
Russell. The license fees owed to SECURITIES AND EXCHANGE
including whether the proposed rule
Russell have been lowered in COMMISSION
change, as amended, is consistent with
conjunction with the renegotiated the Act. Comments may be submitted by [Release No. 34–51795; File No. SR–PCX–
agreement. As a result, the Exchange has any of the following methods: 2005–67]
determined to reduce the amount of the
RUT License Fee as well as eliminate Electronic Comments Self-Regulatory Organizations; Pacific
the requirement that the RUT DPM • Use the Commission’s Internet Exchange, Inc.; Notice of Filing of
make up any shortfall between the comment form (http://www.sec.gov/ Proposed Rule Change Relating to
proceeds of the RUT License Fee and rules/sro.shtml); or Exchange Fees and Charges
the Exchange’s license obligation to • Send an e-mail to rule-
June 7, 2005.
Russell. comments@sec.gov. Please include File
The Exchange intends to implement Number SR–CBOE–2005–31 on the Pursuant to Section 19(b)(1) of the
these fee changes on May 1, 2005. subject line. Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
2. Statutory Basis Paper Comments notice is hereby given that on May 6,
The CBOE believes that the proposed • Send paper comments in triplicate 2005, the Pacific Exchange, Inc. (‘‘PCX’’
rule change is consistent with Section to Jonathan G. Katz, Secretary, or ‘‘Exchange’’) filed with the Securities
6(b) of the Act, 7 in general, and furthers Securities and Exchange Commission, and Exchange Commission
the objectives of Section 6(b)(4)8 of the 450 Fifth Street, NW., Washington, DC (‘‘Commission’’) the proposed rule
Act in particular, in that it is designed 20549–0609. change as described in Items I, II and III
to provide for the equitable allocation of All submissions should refer to File below, which Items have been prepared
reasonable dues, fees, and other charges Number SR–CBOE–2005–31. This file by the PCX. The Commission is
among CBOE members. number should be included on the publishing this notice to solicit
subject line if e-mail is used. To help the comments on the proposed rule change
6 See Securities Exchange Act Release No. 49601 Commission process and review your from interested persons.
(April 22, 2004), 69 FR 23836 (April 30, 2004) (SR–
CBOE–2004–19). 9 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 200.30–3(a)(12).
7 15 U.S.C. 78f(b). 10 17 CFR 240.19b–4(f)(2). 1 15 U.S.C. 78s(b)(1).
8 15 U.S.C. 78f(b)(4). 11 See supra note 3. 2 17 CFR 240.19b–4.

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34512 Federal Register / Vol. 70, No. 113 / Tuesday, June 14, 2005 / Notices

I. Self-Regulatory Organization’s execution with a monthly cap of A. By order approve such proposed
Statement of the Terms of Substance of $50,000 per initiating firm. rule change, or
the Proposed Rule Change The PCX seeks to make this fee B. Institute proceedings to determine
change retroactive because short stock whether the proposed rule change
The PCX, through its wholly-owned
interest spreads have been executed by should be disapproved.
subsidiary PCX Equities, Inc. (‘‘PCXE’’),
customers of the PCX with the
proposes to amend its Schedule of Fees IV. Solicitation of Comments
understanding, based on conversations
and Charges in order to modify the list
with Exchange staff, that these strategies Interested persons are invited to
of eligible strategies that apply to
were included in a group of strategies submit written data, views, and
Option Strategy Executions retroactive
that already qualified for reduced rates arguments concerning the foregoing,
to January 1, 2005. The text of the
and fees under the previously approved including whether the proposed rule
proposed rule change is available on the
Option Strategy Execution rate plan. change is consistent with the Act.
PCX’s Web site (http://
The PCX is applying to make this fee Comments may be submitted by any of
www.pacificex.com), at the PCX’s Office
change retroactive to January 1, 2005 so the following methods:
of the Secretary, and at the
that the Exchange may make
Commission’s Public Reference Room. Electronic Comments
adjustments to the accounts of all
II. Self-Regulatory Organization’s customers that may have executed short • Use the Commission’s Internet
Statement of the Purpose of, and interest spreads from that date forward comment form (http://www.sec.gov/
Statutory Basis for, the Proposed Rule based on their understanding that the rules/sro.shtml); or
Change fees for such transactions were capped. • Send an e-mail to rule-
The Exchange believes that by comments@sec.gov. Please include File
In its filing with the Commission, the
retroactively lowering these fees, the Number SR–PCX–2005–67 on the
PCX included statements concerning the
Exchange will not only be correcting subject line.
purpose of and basis for the proposed
customers accounts for previously
rule change. The text of these statements Paper Comments
executed trades but will be able to
may be examined at the places specified
continue to attract liquidity by • Send paper comments in triplicate
in Item IV below. The PCX has prepared
accommodating these transactions. to Jonathan G. Katz, Secretary,
summaries, set forth in Sections A, B,
Securities and Exchange Commission,
and C below, of the most significant 2. Statutory Basis
Station Place, 100 F Street, NE.,
aspects of such statements. The Exchange believes that the Washington, DC 20549–0609.
A. Self-Regulatory Organization’s proposed rule change is consistent with All submissions should refer to File
Statement of the Purpose of, and Section 6(b) of the Act,5 in general, and Number SR–PCX–2005–67. This file
Statutory Basis for, the Proposed Rule furthers the objectives of Section 6(b)(4) number should be included on the
Change of the Act,6 in particular, in that it subject line if e-mail is used. To help the
provides for the equitable allocation of Commission process and review your
1. Purpose dues, fees, and other charges among its comments more efficiently, please use
In a separate rule filing, SR–PCX– members. only one method. The Commission will
2005–65,3 the PCX proposed to modify B. Self-Regulatory Organization’s post all comments on the Commission’s
the list of strategies presently included Statement on Burden on Competition Internet Web site (http://www.sec.gov/
in the fee that applies to Option Strategy rules/sro.shtml). Copies of the
Executions to add two strategies: (1) The Exchange does not believe that submission, all subsequent
short interest spreads and (2) merger the proposed rule change will impose amendments, all written statements
spreads. That rule filing is prospective. any burden on competition that is not with respect to the proposed rule
The purpose of this rule filing is to necessary or appropriate in furtherance change that are filed with the
make one of these same changes of the purposes of the Act. Commission, and all written
retroactive to January 1, 2005. C. Self-Regulatory Organization’s communications relating to the
In SR–PCX–2005–65, the PCX added Statement on Comments on the proposed rule change between the
to its strategy fee cap a strategy used to Proposed Rule Change Received From Commission and any person, other than
capture short stock interest. The ‘‘short Members, Participants, or Others those that may be withheld from the
stock interest spread’’ is defined as a public in accordance with the
spread that uses two deep in the money Written comments on the proposed
provisions of 5 U.S.C. 552, will be
put options followed by the exercise of rule change were neither solicited nor
available for inspection and copying in
the resulting long position of the same received.
the Commission’s Public Reference
class in order to establish a short stock III. Date of Effectiveness of the Section, Securities and Exchange
interest arbitrage position.4 Proposed Rule Change and Timing for Commission, Station Place, 100 F Street,
Because the short stock interest Commission Action NE., Washington, DC 20549–0609.
spread transactions are generally Within 35 days of the date of Copies of such filing also will be
executed by professionals whose profit publication of this notice in the Federal available for inspection and copying at
margins are generally narrow, the Register or within such longer period (i) the principal office of the Exchange. All
Exchange proposes to cap the as the Commission may designate up to comments received will be posted
transaction fees associated with such 90 days of such date if it finds such without change; the Commission does
executions at $1,000 per strategy longer period to be appropriate and not edit personal identifying
publishes its reasons for so finding or information from submissions. You
3 See Securities Exchange Act Release No. 51787
(ii) as to which the Exchange consents, should submit only information that
(June 6, 2005).
the Commission will: you wish to make available publicly. All
4 In SR–PCX–2005–65, the PCX also added
submissions should refer to File
merger spreads to the strategy fee cap rule, but PCX
is not seeking to make that change retroactive and 5 15 U.S.C. 78f(b). Number SR–PCX–2005–67 and should
so merger spreads are not a part of this filing. 6 15 U.S.C. 78f(b)(4). be submitted on or before July 5, 2005.

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Federal Register / Vol. 70, No. 113 / Tuesday, June 14, 2005 / Notices 34513

For the Commission, by the Division of rule change and discussed any The Exchange believes it is important
Market Regulation, pursuant to delegated comments it received on the proposed for the Exchange to receive a copy of the
authority.7 rule change. The text of these statements written undertaking to ensure that the
Margaret H. McFarland, may be examined at the places specified Commission was properly notified that
Deputy Secretary. in Item IV below. The PCX has prepared the books and records of a member are
[FR Doc. 05–11680 Filed 6–13–05; 8:45 am] summaries, set forth in sections A, B being maintained by a third party. In
BILLING CODE 8010–01–P and C below, of the most significant addition, by receiving a copy of the
aspects of such statements. written undertaking, the Exchange will
have information with respect to the
A. Self-Regulatory Organization’s
SECURITIES AND EXCHANGE Holders’ books and records that is
Statement of the Purpose of, and
COMMISSION necessary for inspection purposes.
Statutory Basis for, the Proposed Rule
[Release No. 34–51791; File No. SR–PCX– Change 2. Statutory Basis
2005–22]
1. Purpose The Exchange believes that the
Self-Regulatory Organizations; Pacific The purpose of this proposal is to proposed rule change is consistent with
Exchange, Inc.; Notice of Filing and amend PCX Rule 9.17 and PCXE Rule Section 6(b) of the Act 3 in general, and
Immediate Effectiveness of Proposed 9.17 to require a Holder to provide the furthers the objectives of Section 6(b)(5)
Rule Change Relating to the Use of a PCX with a copy of the written of the Act 4 in particular, in that it is
Third Party to Maintain a Member’s undertaking required to be filed with designed to promote just and equitable
Books and Records the Commission pursuant to Rule 17a– principles of trade, to foster cooperation
4(i) under the Act when an outside and coordination with persons engaged
June 6, 2005. in facilitating transactions in securities,
service bureau maintains the Holder’s
Pursuant to Section 19(b)(1) of the and to remove impediments and perfect
books and records. Rules 17a–3 and
Securities Exchange Act of 1934 the mechanisms of a free and open
17a–4 under the Act set forth various
(‘‘Act’’) 1 and Rule 19b–4 under the market and to protect investors and the
provisions that require members of a
Act,2 notice is hereby given that on May public interest.
national securities exchange to make,
18, 2005, the Pacific Exchange, Inc.
keep current, and preserve certain books B. Self-Regulatory Organization’s
(‘‘PCX’’ or ‘‘Exchange’’) filed with the
and records. In addition, paragraph (i) of Statement on Burden on Competition
Securities and Exchange Commission
Rule 17a–4 specifies that if such records
(‘‘Commission’’) the proposed rule The Exchange does not believe that
are prepared or maintained by an
change as described in Items I, II and III the proposed rule change will impose
outside service bureau, depository,
below. These Items have been prepared any inappropriate burden on
bank, or other recordkeeping service on
by the PCX. The Commission is competition.
behalf of the member, such outside
publishing this notice to solicit
entity must file with the Commission a C. Self-Regulatory Organization’s
comments on the proposed rule change
written undertaking, signed by a duly Statement on Comments on the
from interested persons.
authorized person, specifying that the Proposed Rule Change Received From
I. Self-Regulatory Organization’s records prepared or maintained for the Members, Participants, or Others
Statement of the Terms of Substance of member are the property of the member, No written comments were either
the Proposed Rule Change that the records are subject to solicited or received.
The Exchange proposes to amend PCX examination by the Commission or its
Rule 9.17 and PCX Equities, Inc. designee, and that copies of the records III. Date of Effectiveness of the
(‘‘PCXE’’) Rule 9.17 to include a shall be promptly furnished upon Proposed Rule Change and Timing for
provision requiring OTP Holders, OTP request to the Commission or its Commission Action
Firms, and ETP Holders (collectively, designee. The proposed rule change is being
‘‘Holders’’) to provide the Exchange Currently, PCX Rule 9.17 and PCXE designated by the Exchange as ‘‘non-
with a copy of the written undertaking Rule 9.17 provide that OTP Holders, controversial’’ pursuant to Section
required to be filed with the OTP Firms, and ETP Holders shall make 19(b)(3)(A) of the Act 5 and
Commission pursuant to Rule 17a–4(i) and retain all the books and records subparagraph (f)(6) of Rule 19b–4 under
under the Act when a third party prescribed by the bylaws and rules of the Act 6 because the proposed rule
maintains the Holder’s books and the Exchange, the rules and regulations change: (1) Does not significantly affect
records. of the Commission, and any other rules the protection of investors or the public
The text of the proposed rule change and regulations to which the Holder is interest; (2) does not impose any
is available on the PCX’s Internet Web subject. Such books and records must be significant burden on competition; and
site (http://www.pacificex.com), at the retained for periods as prescribed and (3) does not become operative for 30
principal office of the PCX, and at the shall be made available for inspection days from the date on which it was
Commission’s Public Reference Room. by the Exchange. The Exchange filed, or such shorter time as the
proposes to add a provision to PCX Rule Commission may designate if consistent
II. Self-Regulatory Organization’s 9.17 and PCXE Rule 9.17 to require that with the protection of investors and the
Statement of the Purpose of, and if such books and records are prepared public interest. The PCX provided the
Statutory Basis for, the Proposed Rule or maintained by an outside service Commission with written notice of its
Change bureau, depository, bank or other intent to file this proposed rule change,
In its filing with the Commission, the recordkeeping service on behalf of the along with a brief description and text
PCX included statements concerning the Holder, the Holder must provide the of the proposed rule change, at least five
purpose of and basis for the proposed Exchange with a copy of the written
undertaking required to be filed with 3 15 U.S.C. 78f(b).
7 17 CFR 200.30–3(a)(12). the Commission pursuant to Rule 17a– 4 15 U.S.C. 78f(b)(5).
1 15 U.S.C. 78s(b)(1). 4(i) under the Act for the Exchange’s 5 15 U.S.C. 78s(b)(3)(A).
2 217 CFR 240.19b–4. records. 6 17 CFR 240.19b–4.

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