[Federal Register Volume 67, Number 212 (Friday, November 1, 2002)]
[Notices]
[Pages 66697-66698]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27810]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-46721; File No. SR-Phlx-2002-63]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Philadelphia Stock
Exchange, Inc. To Increase Maintenance and Transfer Registration Fees
for Registered Representatives
October 25, 2002.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that on October 15, 2002, the Philadelphia Stock Exchange, Inc.
(``Exchange'' or ``Phlx'') submitted to 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 Phlx.
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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Phlx, pursuant to Section 19(b)(1) of the Act \3\ and Rule 19b-
4 thereunder,\4\ proposes to amend its schedule of dues, fees and
charges to increase from $50.00 to $55.00 both the maintenance and
transfer registration fees for registered representatives.\5\ The
initial registered representative registration fee will remain at
$55.00.\6\ In addition, the Exchange proposes to make a minor change to
its schedule of dues, fees and charges by changing the word
``Maintenance'' that appears under Registered Representative
Registration to ``Renewal.''
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\3\ 15 U.S.C. 78s(b)(1).
\4\ 17 CFR 240.19b-4.
\5\ These fees are not eligible for the monthly credit of up to
$1,000 to be applied against certain fees, dues and charges and
other amounts owed to the Exchange by certain members. See
Securities Exchange Act Release No. 44292 (May 11, 2001), 66 FR
27715 (May 18, 2001) (SR-Phlx-2001-49).
\6\ See Securities Exchange Act Release No. 44947 (October 17,
2001), 66 FR 53822 (October 24, 2001) (SR-Phlx-2001-90).
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The proposed fee of $55.00 for maintenance and transfer
registration for registered representatives will apply to 2003
registered representative registrations.\7\ Consistent with current
[[Page 66698]]
practice, the Phlx intends that, on its behalf, the National
Association of Securities Dealers, Inc. (``NASD'') will bill for year
2003 registered representative renewal registration fees in November,
2002 and will thereafter collect the maintenance fee for the
Exchange.\8\
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\7\ Registered representative categories include registered
options principals, general securities representatives, general
securities sales supervisors and United Kingdom-limited general
securities registered representatives.
\8\ In addition, the Exchange intends that, on its behalf, the
NASD will bill and collect the initial and transfer fees in 2003,
consistent with current practice.
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The text of the proposed rule is available at the Office of the
Secretary, the Phlx, and 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 Phlx 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 rule change is to generate additional
revenue for the Exchange by increasing the maintenance (renewal) and
transfer registered representative registration fees from $50.00 to
$55.00.\9\ In addition, the Exchange believes that this fee increase is
warranted based upon the Exchange's increased costs relating to its
regulatory oversight and enforcement programs.
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\9\ Two other exchanges recently increased their maintenance
(also referred to as ``annual'') and transfer registration fees for
registered representatives. See Securities Exchange Act Release Nos.
46266 (July 25, 2002), 67 FR 49969 (August 1, 2002) (SR-CBOE-2002-
37) and 46239 (July 19, 2002), 67 FR 48962 (July 26, 2002) (SR-PCX-
2002-38).
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The Exchange is also amending its schedule of dues, fees and
charges by changing the word ``Maintenance'' that appears under
Registered Representative Registration to ``Renewal.'' The Exchange
believes that the word ``Renewal'' more readily reflects how the fee is
implemented.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Act \10\ in general, and Section 6(b)(4) of the Act
\11\ in particular, in that the proposal is designed to provide for the
equitable allocation of reasonable dues, fees, and other charges among
Exchange members.
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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 Phlx 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
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change establishes or changes a
due, fee or other charge, it has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \12\ and subparagraph (f)(2) of Rule 19b-4
\13\ thereunder. 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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\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 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
Exchange. All submissions should refer to File No. SR-Phlx-2002-63 and
should be submitted by November 22, 2002.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-27810 Filed 10-31-02; 8:45 am]
BILLING CODE 8010-01-P