[Federal Register Volume 65, Number 225 (Tuesday, November 21, 2000)]
[Notices]
[Pages 69980-69982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29711]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-43547; File No. SR-Phlx-00-95]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Philadelphia Stock
Exchange, Inc. Relating to Registration Fees for Registered
Representatives
November 13, 2000
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 October 25, 2000, the Philadelphia Stock Exchange, Inc. (``Phlx'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. On November 2, 2000, the Phlx filed
[[Page 69981]]
Amendment No. 1 to the proposed rule change.\3\ 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.
\3\ In Amendment No. 1, the Phlx corrected a typographical error
which stated that ``initial, maintenance, and transfer registration
fees pertaining to Registered Representative registration will each
be increased from $125 to $45.'' The correct amount of the increase,
as stated above, is from $25 to $45. The Phlx also provided a
corrected Exhibit B with rule language that conforms to its initial
filing. See Letter from Murray L. Ross, Vice President and
Secretary, Phlx, to Sapna C. Patel, Law Clerk, Division of Market
Regulation, Commission, dated November 1, 2000.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange, pursuant to Rule 19b-4 under the Act, proposes to
amend its fee schedule for Registered Representative registration.
Specifically, the initial, maintenance, and transfer registration fees
pertaining to Registered Representative registration will each be
increased from $25.00 to $45.00. The proposed effective date of the
increase is January 1, 2001. Below is the text of the rule change.
Additions are italicized and deletions are in brackets.
Fee Schedule
* * * * *
Registered Representative Registration:
Initial [$25.00] $45.00
Maintenance [$25.00 $45.00
annual] annual
Transfer [$25.00] $45.00
II. Self-Regulatory Organization's Statements 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 Exchange proposes to increase its fees for the initial
registration, maintenance, and transfer of Registered Representative
registrations with the Exchange from $25.00 to $45.00. These fees,
which were adopted in 1993,\4\ and subsequently adjusted in 1995,\5\
1997 \6\ and 1999,\7\ are payable by member organizations that apply
for, maintain, and transfer Registered Representative registrations.
The proposed fee increase would become effective on January 1, 2001.
The $45.00 fees apply to year 2001 registrations. Any initial
registration in 2000 would continue to be subject to the $25.00 initial
registration fee. Similarly, any maintenance and transfer fees incurred
for calendar year 2000 would continue to be subject to the $25.00
maintenance or transfer fee. The National Association of Securities
Dealers, Inc. (``NASD'') will bill for the year 2001 fees in November
2000, and will thereafter collect the fees for the Exchange.\8\
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\4\ See Securities Exchange Act Release No. 32833 (September 14,
1993), 58 FR 48922 (September 20, 1993).
\5\ See Securities Exchange Act Release No. 36348 (October 6,
1995), 60 FR 53450 (October 13, 1995).
\6\ See Securities Exchange Act Release No. 39044 (September 10,
1997), 62 FR 48914 (September 17, 1997).
\7\ See Securities Exchange Act Release No. 42122 (November 10,
1999), 64 FR 63098 (November 18, 1999).
\8\ The Exchange has represented that initial, transfer, and
maintenance Registered Representative fees have traditionally been
billed and collected by the NASD. The NASD would continue to bill
for and collect these fees under the proposed rule change. Phone
message from Jurij Trypupenko, Counsel, Phlx, to Melinda Diller, Law
Clerk, Division, Commission, on October 28, 1999. See Securities
Exchange Act Release No. 42122 (November 10, 1999), 64 FR 63098
(November 18, 1999), at footnote 7.
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The purpose of the proposed rule change is to address the increased
costs associated with maintaining surveillance and regulatory programs
in an increasingly sophisticated trading environment. The Exchange
continues to believe that strong surveillance and regulatory programs
are essential to the ability of the Exchange to maintain a fair and
orderly market for the investment community.
According to the Exchange, the general costs associated with the
Exchange's surveillance and regulatory programs have continued to rise.
Since the last Registered Representative fee increase in 1999,\9\ costs
associated with the Exchange's surveillance and regulatory programs
have increased dramatically. This increase in costs is attributable to,
among other things, inflationary and competitive pressures upon the
cost of staffing, equipment, computer technology as well as expansion
of the Exchange's surveillance and regulatory programs. Moreover, the
Exchange has listed, and will likely continue to list, new issues and
products, which trigger significant additional surveillance and
regulatory costs.
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\9\ See supra note 7.
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Act \10\ in general and furthers the objectives of
Section 6(b)(4) of the Act \11\ in particular, in that is 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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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4).
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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 inappropriate burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
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 imposed by the Exchange and, therefore, has become
effective pursuant to Section 19(b)(3)(A)(ii) of the Act \12\ and Rule
19b-4(f)(2) thereunder,\13\ upon the date Amendment No. 1 was received,
November 2, 2000. The Exchange intends to implement the fee effective
as of January 1, 2001. At any time within 60 days of the filing of
Amendment No. 1 to 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
purpose of the Act.
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\12\ 15 U.S.C. 78s(b)(3)(A)(ii).
\13\ 17 CFR 240.19b-4(f)(2).
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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
[[Page 69982]]
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
Phlx. All submissions should refer to File No. SR-Phlx-00-95 and should
be submitted by December 12, 2000.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\14\
Margaret H. McFarland,
Deputy Secretary.
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\14\ 17 CFR 200.30-2(a)(12).
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[FR Doc. 00-29711 Filed 1-20-00; 8:45 am]
BILLING CODE 8010-01-M