[Federal Register Volume 66, Number 138 (Wednesday, July 18, 2001)]
[Notices]
[Page 37511]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-17888]



[[Page 37511]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44537; File No. SR-PHLX-2001-36]


Self Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Order Granting Approval to Proposed Rule Change To Revise the Fine 
Schedule for Options Floor Procedure Advices

July 11, 2001.
    On May 17, 2001, the Philadelphia Stock Exchange, Inc. (``Phlx'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to amend the Fine Schedule for Options Floor 
Procedure Advices. The Phlx amended the proposal on May 29, 2001.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change, as amended, was published for comment in 
the Federal Register on June 5, 2001.\3\ The Commission received no 
comments on the proposal.
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    \3\ See Securities Exchange Act Release No. 44366 (May 29, 
2001), 66 FR 30258.
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    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange \4\ 
and, in particular, the requirements of Section 6 of the Act \5\ and 
the rules and regulations thereunder. The Commission finds specifically 
that the proposed rule change is consistent with Section 6(b)(5) of the 
Act \6\ because it will help prevent fraudulent and manipulative acts 
and practices, as well as promote just and equitable principles of 
trade. The Commission finds the proposal is consistent with Section 
6(b)(6) of the Act,\7\ because the proposal provides a mechanism for 
the appropriate discipline for violations of certain rules and 
regulations.
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    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ 15 U.S.C. 78f(b)(6).
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    In addition, the Commission finds the proposal is consistent with 
Section 6(b)(7) of the Act \8\ because the proposal provides a fair 
procedure for the disciplining of members and persons associated with 
members. The Commission also finds the proposal is consistent with 
Section 6(b)(8) of the Act,\9\ in that it furthers the statutory goal 
of providing a fair procedure for disciplining the Phlx's members and 
associated persons. Finally, the Commission finds the proposal is 
consistent with Securities Exchange Act Rule 19d-1(c)(2) \10\ that 
governs minor rule violation plans.
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    \8\ 15 U.S.C. 78f(b)(7).
    \9\ 15 U.S.C. 78f(b)(8).
    \10\ 17 CFR 240.19d-1(c)(2).
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    In approving this proposal, the Commission in no way minimizes the 
importance of compliance with these rules, and all other rules subject 
to the imposition of fines under the Phlx's minor rule violation 
enforcement and reporting plan. The Commission believes that the 
violation of any self-regulatory organizations' rules, as well as 
Commission rules, is a serious matter. However, in an effort to provide 
the Exchange with greater flexibility in addressing certain violations, 
the minor rule violation enforcement and reporting plan provides a 
reasonable means to address rule violations that do not rise to the 
level of requiring formal disciplinary proceedings. The Commission 
expects that the Phlx will continue to conduct surveillance with due 
diligence, and make a determination based on its findings whether fines 
of more or less than the recommended amount are appropriate for 
violations of rules under its plan, on plan, on a case by case basis, 
or if a violation requires formal disciplinary action.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\11\ that the proposed rule change (SR-PHLX-2001-36), as amended, 
be, and it hereby is, approved.
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    \11\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-17888 Filed 7-17-01; 8:45 am]
BILLING CODE 8010-01-M