[Federal Register Volume 63, Number 89 (Friday, May 8, 1998)]
[Notices]
[Page 25538]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12262]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39948; File No. SR-SCCP-98-02]


Self-Regulatory Organizations; Stock Clearing Corporation of 
Philadelphia; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Reducing Certain Trade Recording Fees

May 4, 1998.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on April 23, 1998, the Stock 
Clearing Corporation of Philadelphia (``SCCP'') 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 SCCP. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
parties.
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    \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 purpose of the proposed rule change is to extend on a pilot 
basis for two months through June 30, 1998, a reduction in SCCP's fee 
schedule for trade recording fees for certain specialists.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule

    In its filing with the Commission, SCCP included statements 
concerning the propose of a statutory basis for the proposed rule 
change. The text of these statements may be examined at the places 
specified in Item IV below. SCCP has prepared summaries, set forth in 
sections (A), (B), and (C) below, of the most significant aspects of 
such statements.\2\
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    \2\ The Commission has modified parts of these statements.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    SCCP proposes to extend, for a two month period, its pilot program 
reducing SCCP's trade recording fees for certain specialists. On 
February 9, 1998, the Commission temporarily approved the trade 
recording fee reduction effective for trades settling January 2, 1998, 
through April 30, 1998.\3\
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    \3\ Securities Exchange Act Release No. 39630 (February 17, 
1998), 63 FR 7848.
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    Prior to the approval and implementation of the pilot program, SCCP 
charged a trade recording fee of $.47 per side for regular trades. The 
proposed pilot program bifurcates the category of trade recording fees 
for regular trades into trades not matching with PACE orders and trades 
matching with PACE orders.\4\ The trade recording fees for trades not 
matching with PACE orders remains $.47 per side. The proposed pilot 
program reduces SCCP's trade recording fees for trades matching with 
PACE orders. For these trades, the trade recording fee is reduced to: 
(i) $.27 per side for the first 2,500 trades per month (a reduction of 
$.20 per trade) and (ii) $.10 per side for trades in excess of 2,500 
per month (a reduction of $.37 per trade).
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    \4\ PACE, an acronym for the Philadelphia Stock Exchange 
Automated Communication and Execution System, is a real time order 
routing and execution system.
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    SCCP has been working closely with the Philadelphia Stock Exchange, 
Inc. (``PHLX'') to reevaluate its fees. In connection with this effort, 
SCCP is proposing to extend the pilot program reducing these trade 
recording fees on a temporary basis through June 30, 1998.
    SCCP believes that the proposed rule change is consistent with 
Section 17A(b)(3)(D) of the Act,\5\ which requires that the rules of a 
registered clearing agency provide for equitable allocation of 
reasonable dues, fees, and other charges for services which it provides 
to its participants.
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    \5\ 15 U.S.C. 78q-1(b)(3)(D).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    SCCP does not believe that the proposed rule change will impact or 
impose a 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 have been 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 SCCP, it has become effective pursuant 
to Section 19(b)(3)(A)(ii) of the Act \6\ and Rule 19b-4(e)(2) 
thereunder.\7\ At any time within sixty days of the filing of 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.
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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-4(e)(2).
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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, 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. 552, will be available for inspection and copying in the 
Commission's Public Reference Section, 450 Fifth Street, N.W., 
Washington, D.C. 20549. Copies of such filing will also be available 
for inspection and copying at SCCP. All submissions should refer to the 
File No. SR-SCCP-98-02 and should be submitted by May 29, 1998.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 98-12262 Filed 5-7-98; 8:45 am]
BILLING CODE 8010-01-M