[Federal Register Volume 67, Number 2 (Thursday, January 3, 2002)]
[Notices]
[Pages 380-381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-75]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-45193; File No. SR-Phlx-2001-118)
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Philadelphia Stock
Exchange, Inc. Relating to the Implementation of a Fee with Respect to
Certain Individuals Who Work on the Exchange's Trading Floor
December 27, 2001.
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 December 19, 2001, the Philadelphia Stock Exchange, Inc. (``Phlx''
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 Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange proposes to amend its schedule of dues, fees, and
charges to adopt a fee of $25 per month to be imposed on member/
participant organizations for individuals employed by such member/
participant organizations who work on the Exchange's trading floor, but
who are not registered as Exchange members or foreign currency options
(``FCO'') participants.\3\ The Exchange intends to charge member/
participant organizations a $25 fee per month for such individuals
registered as of the first trading day of the month. The Exchange
states that it intends to implement this fee beginning on January 1,
2002.\4\
---------------------------------------------------------------------------
\3\ According to the Exchange, individuals registered to be on
the Exchange's trading floor, but who are not registered as members
or FCO participants, include trading floor personnel such as clerks,
interns, stock execution clerks, and other associated persons of
member/participant organizations. These individuals are required to
be registered with the Exchange Pursuant to Exchange Rule 620(b).
\4\ The Exchange states that this fee will be 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).
---------------------------------------------------------------------------
The text of the proposed rule change is available at the Office of
the Secretary, the Phlx, 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 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 states that the purpose of the proposed rule change is
to impose a fee on Exchange member/participant organizations for their
employees who are registered to be on the Exchange's trading floor, but
are not registered as members or FCO participants. The Exchange states
that this fee is intended to help it offset the costs it incurs in
registering these individuals.\5\
---------------------------------------------------------------------------
\5\ According to the Exchange, individuals who are registered as
inactive nominees pursuant to Exchange By-Law Article XII, Section
12-10 and Exchange Rule 21 will not be subject to the proposed fee.
---------------------------------------------------------------------------
(2) Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\6\ in general, and furthers the
objectives of Section 6(b)(4),\7\ in particular, in that it is an
equitable allocation of reasonable fees among the Exchange's members
because the member/participant organizations who pay the additional,
minimal amount for registering their employees incur the benefit of
having these employees on the Exchange's trading floor.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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
No written comments were either solicited or 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
charge imposed by the Exchange and, therefore, has become effective
upon filing pursuant to Section 19(b)(A)(ii) of the Act \8\ and Rule
19b-4(f)(2) hereunder.\9\ At any time within 60 days of the filing of
such 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. The
Exchange has stated that it intends to implement this fee beginning on
January 1, 2002.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78(s)(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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
[[Page 381]]
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 Section. 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-2001-118 and should be
submitted by January 24, 2002.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-75 Filed 1-2-02; 8:45 am]
BILLING CODE 8010-01-M