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Notice

Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. Relating to Fees for Application for Approved Status Despite Grounds for Statutory Disqualification Fee

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Start Preamble June 15, 2001.

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 June 1, 2001, 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 Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The PCX proposes to change its schedule of Fees and Charges for Exchange Services by adding a fee for an Application for Approved Status Despite Grounds for Statutory Disqualification.[3] The text of the proposed rule change is below. New text is in italics.

Text of the Proposed Rule Change

SCHEDULE OF FEES AND CHARGES FOR EXCHANGE SERVICES

* * * * *

PCX General Membership Fees

Application for Approved Status Despite Ground for Statutory Disqualification$250.00 per application.

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 purpose of the proposed new fee is to cover the expenses of handling the Application for Approved Status Despite Grounds for Statutory Disqualification.

This fee is payable whenever a person or entity is subject to a statutory disqualification under the Act and (1) is an applicant for Exchange membership, (2) is seeking to be an associated person of an Exchange Member (except where the Exchange is merely asked to concur in an SEC Rule 19h-1 filing by another self-regulatory organization), or (3) is an existing Exchange member or associated person who submits an Application for Approved Status Despite Grounds for Statutory Disqualification. This fee is in addition to any other membership fees that might be applicable.

2. Statutory Basis

The Exchange believes that the proposal is consistent with Section 6(b) of the Act,[4] in general, and Section 6(b)(4) of the Act,[5] in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among its members.[6]

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 has become effective pursuant to Section 19(b)(3)(A) [7] of the Act and subparagraph (f)(2) of Rule 19b-4 [8] thereunder, because it establishes or changes a due, fee, or other charge. 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.[9]

IV. Solicitation of Comments

Interested persons are invited to submit written data, view and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Persons making written submissions should file six copies thereof with the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. 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 will also be available for inspection and copying at the principal office of the PCX. All submissions should refer to File No. Start Printed Page 33598SR-PCX-2001-22 and should be submitted by July 13, 2001.

Start Signature

For the Commission, by the Division of Market Regulation, pursuant to delegated authority.[10]

Margaret H. McFarland,

Deputy Secretary.

End Signature End Preamble

Footnotes

3.  See PCX Rule 1.7(a)—Denial of and Conditions to Membership.

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6.  The proposed fee will be applied to the expenses of Exchange staff review, investigation and evaluation of Applications for Approved Status Despite Grounds for Statutory Disqualification. Telephone discussion between Cindy L. Sink, Senior Staff Attorney, Regulatory Policy, PCX, Karl Varner, Senior Counsel, Division of Market Regulation (“Division”), Commission, and Frank N. Genco, Attorney Advisor, Division, Commission (June 11, 2001).

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9.  See 15 U.S.C. 78(b)(3)(C).

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[FR Doc. 01-15678 Filed 6-21-01; 8:45 am]

BILLING CODE 8010-01-M