[Federal Register Volume 63, Number 245 (Tuesday, December 22, 1998)]
[Notices]
[Pages 70821-70822]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33817]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40792; File No. SR-PCX-98-61]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc.
Relating to Cordless Telephone Fees
December 15, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4(e)(2) thereunder,\2\ notice is hereby
given that on December 4, 1998, 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 PCX. 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(e)(2).
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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 change its Schedule of Fees and
Charges for Exchange Services by reducing cordless telephone charges.
The text of the proposed rule change is available at the Office of the
Secretary, the PCX 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 PCX 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 Exchange originally imposed a fee of $50 per month per cordless
telephone on Options Floor members to reflect the costs of upgrading
the Erickson cordless telephone system.\3\ It was determined at the
time of the upgrade that a fee of $50 per month per cordless telephone
would be required to cover the costs of the system over the useful life
of the system.
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\3\ See Securities Exchange Act Release No. 40293 (July 31,
1998), 63 FR 42896 (August 11, 1998).
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The Exchange proposes to reduce the fees associated with cordless
telephone use on the Options Floor from $50 per month per cordless
telephone to $40 per month per cordless telephone. An analysis of the
cordless telephone fees based on actual costs incurred indicates that a
fee of $40 per month per cordless telephone is sufficient to cover the
costs incurred by the upgrading of the Erickson cordless telephone
system over the anticipated useful life of the system. The Exchange
estimates that the useful life of the system is approximately four
years. At $40 per month per cordless telephone, the PCX can recover
expenses incurred for the Erickson telephone system over a 4-year
period.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) \4\ of the Act, in general, and furthers the objectives of
Section 6(b)(4),\5\ in particular, because it provides 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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\4\ 15 U.S.C. 78f(b).
\5\ 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 would impose
any inappropriate burden on competition.
[[Page 70822]]
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 and, therefore, has become effective pursuant to Section
19(b)(3)(A) of the Act \6\ and subparagraph (e)(2) of Rule 19b-4
thereunder.\7\
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(e)(2).
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At any time within 60 days of the filing of the 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.
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. 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 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. SR-PCX-98-61 and should
be submitted by January 12, 1999.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-33817 Filed 12-21-98; 8:45 am]
BILLING CODE 8010-01-M
