[Federal Register Volume 65, Number 132 (Monday, July 10, 2000)]
[Notices]
[Page 42414]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-17333]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43002; File No. SR-Phlx-00-45]


Self-Regulatory Organization; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc., Eliminating References to the Semi-Annual Payment of 
Dues in By-Law Article XIV, Section 14-1

June 30, 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 June 5, 2000, 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 Phlx. 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.
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1. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Phlx proposes to eliminate a reference to the semi-annual 
billing of dues in By-law Article XIV, Section 14-1 to reflect a recent 
amendment to the schedule of dues, fees and charges.\3\
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    \3\ See Securities and Exchange Act Release No. 42457 (March 3, 
2000) (SR-Phlx-99-61).
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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 Phlx 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 Phlx 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 purpose of the proposed rule change is to eliminate a reference 
to the semi-annual billing of dues in Article XIV of the By-laws to 
make Article XIV consistent with the recently amended schedule of dues, 
fees and charges.\4\ The amendment eliminates a provision in the By-
laws that requires the payment of dues and foreign currency options 
users fees on a semi-annual basis. The Board, when it amended the fee 
schedule, authorized the billing of dues and foreign currency options 
users fees on a monthly basis. The Phlx believed that the amended fee 
schedule would improve the efficiency of the billing process, allow 
members, member organizations, participants, and participant 
organizations to more accurately measure operating expenses on a 
monthly basis, and reduce operational cash flow burdens that may have 
resulted from the semi-annual billing schedule. To make Article XIV, 
Section 14-1 consistent with the amended fee schedule, Phlx proposes to 
eliminate the reference to semi-annual billing.
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    \4\ Id.
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2. Statutory Basis
    The Phlx believes that the proposed rule change is consistent with 
Section 6 of the Act,\5\ in general, and with Section 6(b)(4),\6\ in 
particular, in that it provides for an equitable allocation of dues, 
fees, and other charges among its members.

B. Self-Regulatory Organization's Statement on Burden on Competition
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
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    The Phlx does not believe that the proposed rule change will impose 
any 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 received in response to Circular 57-00, 
dated March 29, 2000.\7\
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    \7\ According to the Phlx, the proposed amendment to By-Law 
Article XIV Section 14-1 was initially approved by the Board on 
March 22, 2000 and was noticed to the membership in Circular 57-00 
on March 28, 2000 in compliance with Exchange By-law Article XXII, 
Section 22-2. No written request for a special meeting regarding the 
proposed amendment was filed with Office of the Secretary. On April 
11, 2000 the Secretary conducted a poll of the Board of Governors 
which resulted in unanimous consent in writing to adopt the proposed 
amendment to the By-Law and authorized the filing of the amendment 
with the Commission.
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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 the Exchange, it has become effective 
pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and subparagraph 
(f)(2) of Rule 19b-4 thereunder.\9\ At any time within 60 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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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 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 
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-00-45 and should be 
submitted by July 31, 2000.

    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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Jonathan G. Katz,
Secretary.
[FR Doc. 00-17333 Filed 7-7-00; 8:45 am]
BILLING CODE 8010-01-M