[Federal Register Volume 66, Number 84 (Tuesday, May 1, 2001)]
[Notices]
[Pages 21803-21804]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10749]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44218; File No. SR-SCCP-00-06]


Self-Regulatory Organization; Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by Stock Clearing Corporation 
of Philadelphia Relating to Proposed Fees for Processing of Units of 
Beneficial Interest in the Nasdaq 100 Trust, Series 1

April 25, 2001.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 8, 2000, Stock 
Clearing Corporation of Philadelphia (``SCCP'') filed with the 
Securities and Exchange Commission (``Commission'') and on December 15, 
2000, amended, the proposed rule change as described in Items I, II, 
and III, below, which Items have been prepared by SCCP. 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).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    SCCP proposes to institute a fee for the processing of Units of 
Beneficial Interest in the Nasdaq 100 Trust, Series 1 (``Nasdaq-100 
Index Tracking Stock'').

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

    In its filing with the Commission, SCCP 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

[[Page 21804]]

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.\2\
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    \2\ The Commission has modified the text of the summaries 
prepared by SCCP.
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A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of the proposed rule change is to enable SCCP to charge 
fees that will apply to trading of Units of Beneficial Interest in the 
Nasdaq-100 Index Tracking Stock. On December 13, 2000, the Commission 
granted accelerated approval of a proposed rule change submitted by the 
Philadelphia Stock Exchange, Inc. (``Phlx'') that, among other things, 
amended Phlx's rules to permit the trading, pursuant to unlisted 
trading privileges (``UTP''), of the Nasdaq-100 Index Tracking 
Stock.\3\ In addition, Phlx has obtained a license to use the Nasdaq-
100 Index in connection with the trading of the Nasdaq-100 Index 
Tracking Stock.
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    \3\ Securities Exchange Act Release No. 43717 (Dec. 13, 2000), 
65 FR 80976 (Dec. 22, 2000) (File No. SR-Phlx-00-54).
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    Specifically, SCCP will charge a fee of $0.30 per trade for all 
participants while specialists will pay a $0.50 fee per trade for the 
first 1,000 trades and $0.25 for all subsequent trades. No other SCCP 
transaction fees will apply to trades in the Nasdaq-100 Index Tracking 
Stock. Upon initiation of trading, SCCP participants will be notified 
by means of a circular of the new fees applicable to trading in the 
Nasdaq-100 Index Tracking Stock.
    The proposed fees for transactions in the Nasdaq-100 Index Tracking 
Stock are lower than the fees charged for other equities already 
processed through SCCP. It is SCCP's belief that the proposed lower 
fees should encourage trading of this new product while ensuring that 
the amounts collected will still cover SCCP's costs of processing 
Nasdaq-100 Index Tracking Stock.
    SCCP believes that the proposed rule change is consistent with 
Section 17A of the Act\4\ because it equitably allocates reasonable 
fees among SCCP participants as the fees apply equally to all 
participants that trade Nasdaq-100 Index Tracking Stock.
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    \4\ 15 U.S.C. 78q-1.
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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 were solicited or received.

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

    The proposed rule change has become effective pursuant to section 
19(b)(3)(A)(ii) of the Act\5\ and Rule 19b-4(f)(2)\6\ thereunder 
because the proposed rule change establishes a fee. At any time within 
sixty days of the filing of such 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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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(f)(2).
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III. 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 Phlx's principal office. All 
submissions should refer to File No. SR-SCCP-00-06 and should be 
submitted by May 22, 2001.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-10749 Filed 4-30-01; 8:45 am]
BILLING CODE 8010-01-M