[Federal Register Volume 59, Number 173 (Thursday, September 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22126]


[[Page Unknown]]

[Federal Register: September 8, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34620; File No. SR-PHLX-94-39]

 

Self-Regulatory Organizations; the Philadelphia Stock Exchange, 
Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule 
Change Amending the PHLX's Schedule of Fees and Charges Respecting Fees 
and Charges for the Transaction of Business on Its Option Floor

August 31, 1994.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on July 29, 1994, the 
Philadelphia Stock Exchange, Inc. (the ``PHLX'' or the ``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 primarily 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) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The PHLX proposes to amend its Schedule of Fees and Charges 
respecting options transactions charges for the transaction of business 
on its options floor. Specifically, proprietary transactions of non-
Options Clearing Corporation (``OCC'') member firms (``non-clearing 
firm member'') will be eligible for a rebate to reduce their option 
transaction charges for equity, sectors index, and value line options 
from the customer execution rate to the firm rate. This reduction will 
be $.09 or $.24/per contract (for equity options), $.10 or $.30/per 
contract (for sectors index options), and $.09 or $.29/per contract 
(for value line options), depending upon the market value of the 
contract given to OCC members.\2\
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    \2\Customer transactions are billed at two rates. A higher rate 
is charged for contracts that are over $1.00 in market value. The 
same ``firm'' rate is charged for all member proprietary 
transactions.
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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 PHLX 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 purpose of the proposed rule change is to amend the Exchange's 
Schedule of Fees and Charges for the transaction of business on its 
option floor, specifically the options transaction charge for equity, 
value line, and sectors index options. Effective at the opening of 
business on Monday, August 1, 1994, the PHLX adopted an amended options 
transaction charge schedule to allow non-clearing firm members 
conducting business for their proprietary account to receive the same 
``firm'' rate given to OCC members. Due to the limitations of OCC's 
clearance and settlement date entry coding format, non-clearing firm 
members' proprietary transactions will continue to be invoiced by the 
PHLX at customer rates. The Exchange instead will provide the reduction 
to non-clearing firm members in the form of a rebate. To obtain the 
rebate, the non-clearing firm member is required to submit a PHLX 
rebate request form with supporting documentation within thirty days of 
the invoice date. The purpose of these amended charges is to promote 
and encourage additional market participation by non-clearing firm 
members in these products at the PHLX.
    The PHLX believes that the proposed rule change is consistent with 
Section 6(b)(4) of the Act in that it provides for the equitable 
allocation of reasonable dues, fees, and charges among the PHLX members 
and other persons using the PHLX facilities.\3\
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    \3\15 U.S.C. 78f(b)(4) (1988).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The PHLX does not believe that the proposed rule change imposes any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act.

C. Self-Regulatory Organization's Statement of Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Comments on the proposed rule change have not been solicited or 
received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act and subparagraph (e)(2) of Rule 19b-4 under 
the Act in that the proposed rule change establishes or changes a due, 
fee, or other charge imposed by the Exchange. At any time within sixty 
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, N.W., 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. Sec. 552, will be available for inspection and copying in 
the Commission's Public Reference Section, 450 Fifth Street, N.W., 
Washington, DC 20549. 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 number SR-PHLX-94-39 and should be 
submitted by September 29, 1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\4\
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    \4\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-22126 Filed 9-7-94; 8:45 am]
BILLING CODE 8010-01-M