[Federal Register Volume 65, Number 107 (Friday, June 2, 2000)]
[Notices]
[Pages 35413-35414]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-13780]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42829; File No. SR-SCCP-00-03]


Self-Regulatory Organizations; Stock Clearing Corporation of 
Philadelphia; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Providing a Credit to Specialists

May 25, 2000.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on May 8, 2000, 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

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 provide a credit of 
$.20 per trade to specialists trading equities through the Philadelphia 
Stock Exchange Automated Communication and Execution (``PACE'') 
System.\2\ This credit will be effective on June 1, 2000.
---------------------------------------------------------------------------

    \2\ PACE is a real time order routing and execution system.
---------------------------------------------------------------------------

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 purpose of and 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.\3\
---------------------------------------------------------------------------

    \3\ The Commission has modified parts of these statements.
---------------------------------------------------------------------------

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    SCCP has exceeded its budgetary volume projects this year and has 
thus generated revenue far in excess of its budget. SCCP anticipates 
that this trend will continue. Thus, in order to address this 
situation, the proposed credit would apply to specialists, who have 
generated much of this revenue, that trade through the PACE System. 
Specifically, specialists that clear through SCCP are the principal 
client base upon which SCCP relies to cover its expenses. For instance, 
PACE trades represent approximately 90 percent of the volume SCCP 
processes. Therefore, SCCP proposes to credit $.20 per trade to 
specialists using the PACE System. This credit will be applied to the 
fees of specialists trading through the PACE System and will be 
effective on June 1, 2000.
    SCCP believes that the proposed rule change is consistent with 
Section 17A(b)(3)(D) of the Act \4\ 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.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78q-1(b)(3)(D).

---------------------------------------------------------------------------

[[Page 35414]]

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

    SCCP 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 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 \5\ and Rule 19b-4(e)(2) 
thereunder.\6\ 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.
---------------------------------------------------------------------------

    \5\ U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(e)(2).
---------------------------------------------------------------------------

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-
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 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 
File No. SR-SCCP-00-03 and should be submitted by June 23, 2000.

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

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-13780 Filed 6-1-00; 8:45 am]
BILLING CODE 8010-01-M