[Federal Register Volume 59, Number 114 (Wednesday, June 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14531]


[[Page Unknown]]

[Federal Register: June 15, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34180; File No. SR-PHLX-94-27]

 

Self-Regulatory Organizations; Filing and Immediate Effectiveness 
of Proposed Rule Change by the Philadelphia Stock Exchange, Inc., 
Relating to Revised Index Option Transaction Value Charges

June 8, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on May 25, 
1994, 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 self-regulatory 
organization. The Commission in publishing this notice to solicit 
comments on the proposed rule change from interested persons.

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    Currently, the option transaction value charge for customer orders 
with options premiums of less than $1.00 is $.15 per contract and $.30 
per contract for customer orders with premium values of $1.00 or more. 
The option transaction value charge for firms is $.06 per contract. The 
PHLX proposes to amend its schedule of dues, fees, and charges for 
options transactions to provide the following index option transaction 
value charges: $.20 per contract for customer orders with premium 
values of less than $1.00; $.40 per contract for customer orders with 
premium values of $1.00 or more; and $.10 per contract for firms. The 
revised index option transaction value charges do not apply to Value 
Line Index (``VLE'') options.
    The text of the proposed rule change is available at the Office of 
the Secretary, PHLX, and at the Commission.

II. Self-Regulatory Organizations: Statement of the Purpose of, and 
Statutory Basis For, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
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 self-regulatory organization 
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

    The PHLX proposed to amend its schedule of dues, fees and charges 
for the transaction of business on the PHLX's options floor, 
specifically the index option transaction value charge. Effective at 
the opening of business on Tuesday, May 31, 1994, the PHLX proposes to 
adopt the following index option transaction value charges; $.20 per 
contract for customer orders with premium market values of less than 
$1.00; $.40 per contract for customer orders with premium market values 
of $1.00 or more; and $.10 per contract for firms. The revised schedule 
does not apply to VLE options.
    The PHLX states that the revised index option transaction value 
charges are more reflective of the PHLX's cost of conducting business, 
including the support of the computation and dissemination of 
respective index values to market participants. The PHLX states that 
the proposal presents a fee structure designed to be more reflective of 
the actual cost of supporting the index options traded on the PHLX. In 
addition, the PHLX states that the revised index option transaction 
value charges are competitive with the rates charged by the other 
options market centers and substantially correspond to the existing 
charges for PHLX VLE options.
    The PHLX believes that the proposal is consistent with Section 6(b) 
of the Act, in general, and, in particular, with Section 6(B)(4), in 
that it provides for the equitable allocation of reasonable dues, fees 
and other charges among its members and other persons using the 
Exchange's facilities.

(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 rule change establishes or changes a due, fee 
or other charge imposed by the Exchange, it has become effective 
pursuant to Section 19(b)(3)(A) of the Act and subparagraph(e) of rule 
19b-4 thereunder. 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 purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. 
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 Section, 450 Fifth Street, NW., 
Washington, DC. Copies of such filing will also be available for 
inspection and copying at the principal office of the above-mentioned 
self-regulatory organization. All submissions should refer to the file 
number in the caption above and should be submitted by July 6, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\1\
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    \1\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-14531 Filed 6-14-94; 8:45 am]
BILLING CODE 8010-01-M