[Federal Register Volume 60, Number 21 (Wednesday, February 1, 1995)]
[Notices]
[Pages 6332-6333]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2386]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35279; File No. SR-Phlx-94-75]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc., Amending the Phlx's Schedule of Fees and Charges 
Respecting Fees and Charges for the Transaction of Business on its 
Option Floor, Specifically the Options Transaction Value Charge

January 25, 1995.
    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 January 
4, 1995, 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.

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

    The Phlx, pursuant to Rule 19b-4 of the Act, proposes to amend the 
Phlx's Schedule of Fees and Charges respecting options transaction 
charges for the transaction of business on its options floor. 
Specifically, the rule change would provide a discount on certain 
options transactions charges regarding all Phlx equity and index 
options involving block transactions of 500-999 and 1000 or more 
contracts.\1\

    \1\The proposal originally stated that the options transaction 
value charge applied to ``Equity, Sectors and Value Line Index 
options.'' The Exchange filed Amendment No. 1 to the proposal on 
January 12, 1995 indicating that the options transaction value 
charge applies to all equity and index options for block 
transactions of 500-999 and 1000 or more contracts. See Letter from 
Murray L. Ross, Secretary, Phlx, to John Ayanian, Staff Attorney, 
Office of Market Supervision (``OMS''), Division of Market 
Regulation (``Division''), Commission, dated January 12, 1995, and 
telephone conversation between Michele Weisbaum, Associate General 
Counsel, Phlx, and John Ayanian, Staff Attorney, OMS, Division, 
Commission, on January 17, 1995. (``Amendment No. 1'').
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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, Phlx included statements 
concerning the purpose of and basis for 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 
Section (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 Phlx 
Schedule of Fees and Charges for the transaction of business on its 
options floor. Effective at the opening of business on Tuesday, January 
3, 1995, the Phlx adopted an amended options transaction value charge 
schedule to accord member firms transacting business for customers 
accounts, regarding all equity and index options, to receive a discount 
from the option transaction charges of 15% and 25% respectively for 
block transactions for customers executions of 500-999 contracts and 
1000 or more on a per trade basis, upon submission of a Phlx Customer 
Option Block Trade Discount Request Form with supporting documentation 
within thirty days of the monthly billing date. It should be noted that 
due to the limitations respecting the recording of transactions on the 
Phlx options trading floor, options customer block transactions will 
continue to be invoiced at the non-discounted customer execution rates. 
The purpose of these amended changes respecting all equity and index 
option transactions is to promote and encourage additional customer 
market participation in these products at the Phlx.
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act, in general, and furthers the objectives 
of Section 6(b)(4), in particular, in that it provides for the 
equitable allocation of reasonable dues, fees, and other charges among 
its members.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Phlx does not believe that the proposed rule change will impose 
any 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 solicited or received with respect to the 
proposed rule change.

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 filling for 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.

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 [[Page 6333]] 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 at the Commission's Public Reference Section, 450 Fifth Street, 
NW., 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 No. SR-Phlx-94-75 and should be 
submitted by February 22, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\2\

    \2\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-2386 Filed 1-31-95; 8:45 am]
BILLING CODE 8010-01-M