[Federal Register Volume 66, Number 117 (Monday, June 18, 2001)]
[Notices]
[Pages 32859-32860]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-15223]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44405; File No. SR-Phlx-2001-08]


Self-Regulatory Organizations; Order Approving and Notice of 
Filing and Other Granting Accelerated Approval of Amendment No. 1 to 
the Proposed Rule Change of the Philadelphia Stock Exchange, Inc. 
Concerning the Maintenance, Retention, and Furnishing of Records and 
Other Information Related to Payment for Order Flow Arrangements

June 11, 2001.
    On January 19, 2001, pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (Act) \1\ and Rule 19b-4 thereunder,\2\ the 
Philadelphia Stock Exchange, Inc. (Phlx) filed with the Securities and 
Exchange Commission a proposed rule change to amend Phlx Rule 760 to 
require Phlx members and member organizations to make, keep current, 
and preserve records relating to payment for order flow arrangements 
and, upon request, to make those records available to the Phlx for 
inspection and review. The proposed change was published for comment in 
the Federal Register on April 2, 2001.\3\ The Commission received no 
comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 44102 (March 26, 2001), 
66 FR 17591 (April 2, 2001).
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    On May 22, 2001, the Phlx filed Amendment No. 1 to the proposed 
rule change, which replaced the original filing in its entirety. 
Amendment No. 1 added supplemental language to Phlx Rule 760 to clarify 
that the recordkeeping requirement apply only to Phlx specialists and 
specialist units that participate in the Phlx's payment for order flow 
program, and not to all Phlx members generally. The text of the 
proposed rule change is available at the principal offices of the Phlx 
and at the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change, as amended by Amendment 
No. 1, and is issuing this Order approving the proposed amended rule 
change.
    Pursuant to Section 19(b)(2) of the Act,\4\ the Commission has 
determined to accelerate approval of the proposed rule change. The 
Commission notes that, prior to the filing of Amendment No. 1, the 
proposed rule change was noticed for public comment and did not attract 
any comments. Because Amendment No. 1 to the proposed rule change 
simply clarifies that the proposed recordkeeping requirements apply 
only to Phlx specialists and Phlx specialist units and not to Phlx 
members generally, the Commission finds good cause to approve the 
proposed rule change prior to the thirtieth day after the date of 
publication of notice of this filing in the Federal Register. The 
Commission believes that the proposed rule change, as amended, will 
assist the Phlx to review and verify that its payment for order flow 
program is being administered pursuant to the terms that the Phlx has 
established.
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    \4\ 15 U.S.C. 78s(b)(2).
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    The Commission finds that the proposed rule change, as amended by 
Amendment No. 1, is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange, particularly Section 6 of the

[[Page 32860]]

Act \5\ and the rules and regulations thereunder.\6\ The Commission 
also finds that the proposed rule change, as amended, will promote just 
and equitable principles of trade consistent with Section 6(b)(5) of 
the Act.\7\
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    \5\ 15 U.S.C. 78f.
    \6\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(5).
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    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended, is consistent with the Act. Persons making written 
submission 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-2001-08 and should be submitted by July 9, 2001.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (File No. SR-Phlx-2001-08), as 
amended, be, and it hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).
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    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).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-15223 Filed 6-15-01; 8:45 am]
BILLING CODE 8010-01-M