[Federal Register Volume 64, Number 128 (Tuesday, July 6, 1999)]
[Notices]
[Pages 36417-36418]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16950]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41567; File No. SR-PCX-99-19]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Stock Exchange,
Inc. Relating to Fines for Damage of Exchange Property
June 28, 1999.
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 4, 1999, the Pacific Exchange, Inc. (``PCX'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'' or
``SEC'') the proposed rule change as described in Items I, II, and III
below, which Items have been prepared by the Exchange. On June 21,
1999, the Exchange filed Amendment No. 1. The Commission is publishing
this notice to solicit comments on the proposed rule change, as
amended, from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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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 PCX Rule 10.13 to include fines for the
intentional or reckless use and/or damage of Exchange equipment. The
text of the proposed rule change is available at the Office of the
Secretary, 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.
[[Page 36418]]
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 Rule 10.13, governing Minor Rule
Plan violations, to include fines for the intentional or reckless use
and/or damage of Exchange equipment. First, if there is abuse of
property but no property damage is involved, the Exchange proposes
fines of $100, $250, and $500 for the first, second, and third
violations respectively.
Second, for abuse of equipment where property damage is involved,
the Exchange proposes fines of $500, $750, and $1,000 for the first,
second, and third violations respectively, plus the cost to repair or
replace the equipment. The Exchange proposes these fines to cover costs
of repairing or replacing equipment resulting from intentional or
reckless use by Members. In addition, the Exchange proposes these fines
to deter intentional or reckless use and subsequent damage of
equipment.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
section 6(b) \3\ of the Act in general and furthers the objectives of
section 6(b)(4) \4\ in particular, because it provides for the
equitable allocation of reasonable dues, fees, and other charges among
its members and issuers and other person using its facilities.\5\
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(4).
\5\ In reviewing the proposed rule change, the Commission
considered its impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
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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 has become effective pursuant to Section
19(b)(3)(A) of the Act \6\ and subparagraph (f)(6) of Rule 19b-4
thereunder \7\ because the proposed rule change (1) does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
(3) does not become operative for 30 days from the date of filing, or
such shorter time that the Commission may designate if consistent with
the protection of investors and the public interest; and (4) the PCX
provided the Commission with written notice of its intent to file the
proposed rule change at least five business days prior to the filing
date. 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.
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6).
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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. 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 at 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 submissions should refer to File No. SR-PCX-99-19 and should
be submitted by July 27, 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. 99-16950 Filed 7-2-99; 8:45 am]
BILLING CODE 8010-01-M
