[Federal Register Volume 65, Number 247 (Friday, December 22, 2000)]
[Notices]
[Pages 80975-80976]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32651]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43719; File No. SR-PHLX-00-97]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. Relating to the Establishment of a Systems Change and a 
Fee to Members and Member Organizations for Receiving On-line Options 
Information

December 13, 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 November 14, 2000, the Philadelphia Stock Exchange, Inc. (``Phlx'' 
or ``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC'') the proposed rule change as described in 
Items I, II and III below, which Items have been prepared by the 
Exchange. 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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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Phlx proposes to effect a systems change and adopt a real-time, 
trade information fee of $.0025 per contract for members or member 
organizations receiving option trade information on-line (i.e., 
electronically) from the Exchange.

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 this proposed rule change is to effect an 
information-related enhancement to the AUTOM System \3\ and to amend 
the Phlx's fee schedule to impose a $.0025 per contract fee to members 
and member organizations who choose to use this enhancement.
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    \3\ AUTOM is the Phlx's Automated Options Market System. See 
Phlx Rule 1080.
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    Recently, the Exchange made available a back-office enhancement to 
the AUTOM System on the options floor that provides option trade 
information on-line (meaning electronically) on a real-time basis. 
Members and member organizations can now choose to connect and log on 
to an interface with the AUTOM System to receive options (equity and 
index options) transaction information real-time. Specifically, once 
transaction information is in the AUTOM System, it becomes available to 
member organizations, who may connect to the feature; member 
organizations may determine to offer such information to their floor 
traders electronically.\4\ The transaction information covered by this 
feature includes the type of information generally captured in Exchange 
systems as a trade.\5\
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    \4\ According to the Exchange, members and member organizations 
that are logged on to the AUTOM System and choose to receive the 
options transaction information real-time may determine how to 
distribute the information to their floor traders, including using 
hand-held devices. As per telephone conversation between John 
Dayton, Assistant Secretary and Counsel, Phlx, and Heather Traeger, 
Attorney, SEC, Division of Market Regulation, on December 13, 2000.
    \5\ This information includes the symbol, volume, price, time 
and clearing information of the traded security.
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    Currently, such information is available in hard copy (paper 
ticket) form, which can be confirmed against floor trader positions. 
The Exchange has created this electronic link in order to facilitate 
electronic position monitoring for options. The feature is voluntary 
and does not replace the current hard-copy printing of transaction 
information. Member organizations choosing to log on to the feature 
will be charged $.0025 per contract. The Exchange chooses to charge a 
per contract fee rather than a flat fee for the service to encourage 
more firms, including small firms, to use this important risk 
management tool.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b)(4) and (b)(5) of the Act \6\ in that it provides for the 
equitable allocation of reasonable dues, fees and other charges among 
its members and other persons using its facilities and promotes just 
and equitable principles of trade.
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    \6\ 15 U.S.C. 78f(b)(4) and (b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange 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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    The foregoing rule change, which (1) establishes or changes a due, 
fee, or other charge imposed by the Exchange and (2) effects a change 
in an existing order-entry or trading system of the Exchange that (i) 
does not significantly affect the protection of investors or the public 
interest; (ii) does not impose any significant burden on competition; 
and (iii) does not have the effect of limiting the access to or 
availability of the system, has become effective pursuant to Section 
19(b)(3)(A) of the Act \7\ and subparagraph (f)(2) and (f)(5) of Rule 
19b-4 thereunder.\8\ 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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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(2) and (f)(5).
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IV. Solicitation of Comments

    Interest 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 file 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 at the 
Commission's Public Reference Room. Copies of such filing also will be 
available for inspection and copying at

[[Page 80976]]

the principal office of the Phlx. All submissions should refer to File 
No. SR-PHLX-00-97 and should be submitted by January 12, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-32651 Filed 12-21-00; 8:45 am]
BILLING CODE 8010-01-M