[Federal Register Volume 60, Number 177 (Wednesday, September 13, 1995)]
[Notices]
[Pages 47639-47640]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-22709]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36198; File No. SR-Phlx-95-64]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc., Relating to the Amendment of the Exchange's Schedule of 
Fees and Charges

September 7, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on August 23, 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 self-regulatory organization. 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange submits a proposed rule change to amend the Phlx's 
Schedule of Fees and Charges respecting charges for nonexchange 
sponsored securities execution equipment operated by Phlx members and 
member organizations on the Phlx equity options trading floor. The 
proposed amendment would modify the existing $250.00 monthly fee 
assessed upon each stock execution machine on the Phlx equity options 
floor. A new securities execution equipment registration fee of $300.00 
per terminal would be imposed for the period September 1, 1995 through 
December 31, 1996, on each member operating equipment that has 
execution capability and/or order routing access to the common message 
switch of the primary registered national securities exchanges.

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 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

1. Purpose
    Since 1990, the Exchange has imposed a monthly proprietary stock 
execution machine charge of $250.00.\2\ Effective at the opening of 
business, Friday, September 1, 1995, the Exchange will impose a $300.00 
securities execution equipment registration fee for the period 
September 1, 1995 through December 31, 1996, on nonexchange sponsored 
terminals or computers configured for execution and/or routing 
capabilities to the common message switch of the primary registered 
national securities exchanges maintained on or accessible to the Phlx 
equity options trading floor. This registration fee will be assessed to 
each Phlx member or member organization maintaining and operating such 
nonexchange sponsored securities execution equipment on the Phlx 
options trading floors. The Phlx will continue to retain the monthly 
$250.00 fee charged to members and member organizations maintaining and 
operating such equipment on the Phlx equity trading floor.

    \2\ See Securities Exchange Act Release No. 28212 (July 17, 
1990), 55 FR 30065 (implementing a monthly charge on proprietary 
stock execution machines); Securities Exchange Act Release No. 33954 
(April 21, 1994), 59 FR 22191 (allowing members to earn a monthly 
credit of 50% of the fees charged for stock execution machines).
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act 
\3\ in general and furthers the objectives of Section 6(b)(4) \4\ in 
particular in that it provides for the equitable allocation of 
reasonable dues, fees, and other charges among the Exchange's members 
and other persons using its facilities.

    \3\ 15 U.S.C. 78f(B).
    \4\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes the proposed rule change does not impose any 
burden on competition.

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

    The Phlx Finance Committee and the Phlx Floor Procedure Committee 
provided specific recommendations to the Phlx's Board of Governors.
III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change constitutes or changes a due, fee, or 
other charge imposed by the Exchange and, therefore, has become 
effective pursuant to Section 19(b)(3)(A) of the Act \5\ and 
subparagraph (e) of Rule 19b-4 thereunder.\6\

    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4.
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    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 

[[Page 47640]]
    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, D.C. 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 at 
the Commission's Public Reference Section, 450 Fifth Street, N.W., 
Washington, D.C. 20549. Copies of such filing also will be available 
for inspection and copying at the principal office of the Philadelphia 
Stock Exchange. All submissions should refer to File No. SR-Phlx-95-64 
and should be submitted by October 13, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\

    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-22709 Filed 9-12-95; 8:45 am]
BILLING CODE 8010-01-M