[Federal Register Volume 65, Number 43 (Friday, March 3, 2000)]
[Notices]
[Pages 11629-11630]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-5187]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42457; File No. SR-Phlx-99-61]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. Relating to Monthly Billing of Membership Dues, Foreign 
Currency User Fees, Foreign Currency Participation Fees, Trading Post/
Booth Space Fees and the Technology Fee

February 25, 2000.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on January 3, 2000, 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 
Exchange. On February 16, 2000, the Phlx submitted Amendment No. 1 to 
the proposed rule change.\3\ 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).
    \2\ 17 CFR 240.19b-4.
    \3\ Letter from Murray L. Ross, Vice President and Secretary, 
Phlx, to Kelly A. McCormick-Riley, Division of Market Regulation, 
SEC, dated February 3, 2000 (``Amendment No. 1''). Amendment No. 1 
included a corrected Exhibit B to the proposed rule change regarding 
the fees impacted by the proposed billing schedule, corrected the 
date of effectiveness and corrected the file number listed in the 
Solicitation of Comment section.
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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 dues, fees and charges 
to bill membership dues, foreign currency user fees, foreign currency 
participation

[[Page 11630]]

fees, trading post/booth space fees and the technology fee on a monthly 
basis rather than the semi-annual or quarterly basis currently 
utilized. The amounts of the charges of fees will remain unchanged; 
only the frequency of billing for such dues, fees or charges will 
change to a monthly basis. The proposed effective date of this 
amendment is at the opening of business, January 3, 2000. The text of 
the proposed change to the Phlx fee schedule is available for 
inspection at the places specified in Item IV below.

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

    In its filing with the Commission, the Exchange 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 Exchange 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
    According to the Exchange, the purpose of this proposed rule change 
is to amend its fee schedule to change the frequency that members, 
foreign currency options participants and member and participant 
organizations are billed for membership dues, foreign currency user 
fees, foreign currency participation fees, trading post/booth space and 
the technology fee.
    This change is being instituted on the recommendation of the 
Exchange's Finance Committee and is designed to enhance operational 
efficiency by billing monthly for such dues, fees and charges. The 
change in frequency of billing for such items will allow the Exchange's 
Accounting Department to operate more effectively, while allowing 
members and participants to more accurately gauge their operating 
expenses on a monthly basis and to reduce operational cash flow burdens 
which may result from the current payment schedule. The Phlx believes 
that the proposed amendments to the billing cycles for membership dues, 
foreign currency user fees, foreign currency participation fees, 
trading post/booth space and the technology fee are reasonable and 
equitable because they only change the frequency of billing not the 
amount billed.
2. Basis
    The Exchange believes the proposed rule change is consistent with 
section 6 of the Act,\4\ in general, and in particular, with section 
6(b)(4),\5\ because it provides for the equitable allocation of 
reasonable dues, fees and other charges among its members and other 
persons using its facilities.
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    \4\ 15 U.S.C. 78f.
    \5\ 15 U.S.C. 78f(b)(4).
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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

    The foregoing rule change establishes or changes a due, fee or 
charged imposed by the Exchange and, therefore, has become effective 
upon filing pursuant to section 19(b)(3)(A) of the Act \6\ and Rule 
19b-4(f)(2) \7\ thereunder. The Exchange intends to implement the fee 
changes on January 3, 2000. At any time within 60 days of the filing of 
such proposed rule change, the Commission may summarily abrogate such 
rate 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 purpose of the Act.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(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, NW, Washington, DC 20549-0609. 
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 Room. 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-99-61 and should 
be submitted by March 24, 2000.

    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. 00-5187 Filed 3-2-00; 8:45 am]
BILLING CODE 8010-01-M