SEC NEWS DIGEST

Issue 2004-227                                            November 26, 2004


ENFORCEMENT PROCEEDINGS


COMMISSION SUSTAINS PHILADELPHIA STOCK EXCHANGE ACTION AGAINST PTR, INC. AND
DENNIS MCBRIDE

     The Commission has sustained Philadelphia Stock Exchange disciplinary
     action against PTR, Inc., a Philadelphia floor broker and Exchange
     member organization, and Dennis McBride, PTR’s executive vice president.
     The Exchange censured respondents, fined them $86,000, jointly and
     severally, and suspended McBride from Exchange membership or association
     with an Exchange member organization for a period of three months.
     
     The Commission found that respondents violated Exchange rules (1)
     requiring that floor brokers make reasonable efforts to ascertain
     whether orders submitted to them for execution are for the account of a
     public customer or a broker-dealer, and (2) requiring that the approval
     of all participants in a trade be obtained before a material change is
     made in its terms.
     
     In sustaining the Exchange’s sanctions, the Commission noted that
     McBride had been disciplined for similar misconduct less than three
     years prior to the violations at issue.  It stated that "the attitude
     displayed by McBride towards his regulatory responsibilities evidences a
     disturbing disregard for the standards that govern the conduct of
     securities professionals doing business on the Exchange."  (Rel.
     34-50737; File No. 3-11470)