[Federal Register Volume 65, Number 74 (Monday, April 17, 2000)]
[Notices]
[Pages 20503-20504]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-9490]


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SECURITIES AND EXCHANGE COMMISSION

  

[Release No. 34-42659; Filed No. SR-PHlx-00-23]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. To Modify the Frequency of Billing for the Controller 
Space Charge, Floor Facilities Fees, Shelf Space Fee on the Equity 
Options Floor, and Direct Wire Changes From a Quarterly to a Monthly 
Basis

April 10, 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 March 9, 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 March 22, 2000, the Exchange submitted Amendment No. 1 to 
the proposed rule change.\3\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange provided an updated 
schedule of dues, fees and charges in Appendix A to the proposed 
rule change. See Letter from Murray L. Ross, Vice President and 
Secretary, Phlx, to Nancy Sanow, Assistant Director, Division of 
Market Regulation (``Division''), SEC, Dated March 21, 2000.
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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 
so that it will bill the controller space charge, floor facilities 
fees, shelf space fee on the equity options floor and direct wire 
charges on a monthly basis rather than the quarterly basis the Exchange 
currently uses. The amounts of the charges of fees will remain 
unchanged; only the frequency of billing for such fees or charges will 
change to a monthly basis. The Phlx proposes that the change in the 
frequency of billing for the fees or charges mentioned above become 
effective at the opening of business on April 1, 2000.

II. Self-Regulatory Organization's Statements 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. 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
    The Exchange proposes to amend the Phlx's fee schedule to change 
the frequency that Exchange members, foreign currency option (``FCO'') 
participants and member organizations and participant organizations are 
billed for the controller space charge, floor facilities fees, shelf 
space fee for the equity options floor and the direct wire charges. The 
Exchange proposes to bill these fees or charges on a monthly basis, 
instead of on a quarterly basis.\4\
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    \4\ The Exchange will bill the controller space charge at a rate 
of $250.00 per month instead of the current rate of $750.00 per 
quarter. The Exchange will bill the floor facilities fees and the 
shelf space fee at a rate of $125.00 per month instead of the 
current rate of $375.00 per quarter. The Exchange will bill the 
direct wire charges at a rate of $20.00 per month instead of the 
current rate of $60.00 per quarter.
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    The Exchange's Finance Committee is recommending that the fees or 
charges mentioned above be billed monthly instead of quarterly to 
enhance operational efficiency for the Exchange and its members and 
participants. The Exchange represents that the proposed rule change 
would permit the Exchange's Accounting Department to operate more 
effectively. The Exchange further represents that the proposed rule 
change would allow Exchange members and participants to more accurately 
gauge their monthly operating expenses, and to permit them to reduce 
their operational cash flow burdens that may result from the current 
quarterly payment schedule.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6 of the Act \5\ in general, and further the objectives of 
Section 6(b)(4) \6\ in particular, in that it provides for the 
equitable allocation of reasonable dues, fees, and other charges amount 
its members and other persons using its facilities. Specifically, the 
Exchange believes that the proposed rule change is reasonable and 
equitable because only the frequency of billing for the fees or charges 
mentioned above will be changed, and not the amount billed.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 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 fee, due or 
charge imposed by the Exchange and, therefore, has become effective 
upon filing pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 
19b-4(f)(2) thereunder.\8\ The Exchange intends to implement the change 
to the frequency of billing for the fees or charges mentioned above at 
the opening of business on April 1, 2000. At any time within 60 days of 
filing of such proposed rule change, the Commission may summarily 
abrogate such rule

[[Page 20504]]

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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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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.;\9\ 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-00-23 and should be submitted by May 8, 2000.
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    \9\ In reviewing this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margared H. McFarland,
Deputy Secretary.
[FR Doc. 00-9490 Filed 4-14-00; 8:45 am]
BILLING CODE 8010-01-M