[Federal Register Volume 66, Number 169 (Thursday, August 30, 2001)]
[Notices]
[Pages 45884-45885]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-21890]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44744; File No. SR-Phlx-2001-80]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. Adopting a Monthly Fee for Trading Post Space That 
Includes a Kiosk

August 24, 2001.
    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 August 22, 2001, 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 the 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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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Phlx proposes to amend its schedule of dues, fees, and charges 
to adopt a fee of $375 per month for trading post space that includes a 
kiosk,\3\ which will be imposed on the users of such kiosks, namely 
specialists.\4\
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    \3\ A kiosk is an open, flat surface that contains computer 
terminals and allows the specialists to face the trading crowd. 
Generally, post space is space on the Exchange's trading floor for 
specialists.
    \4\ Currently, the fee for trading post space totals $250. 
According to the Phlx, with respect to specialists at trading posts 
with a kiosk, the $375 fee would replace the $250 fee for trading 
post space. Telephone conversation between Edith Hallahan, First 
Vice President and Deputy General Counsel, Phlx, and Deborah Flynn, 
Assistant Director, Division of Market Regulation, Commission, on 
August 23, 2001.
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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.

[[Page 45885]]

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 amend the Exchange's 
schedule of dues, fees, and charges to include a fee for trading post 
space that includes a kiosk.
    During the past few years, at a considerable cost to the Exchange, 
the Exchange has constructed kiosks on its options trading floor to 
facilitate specialist interaction with the trading crowd by allowing 
them to directly face the trading crowd.\5\ The proposed fee would help 
to offset the expense incurred in constructing these kiosks.
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    \5\ The decision to construct a kiosk at a particular post is 
solely within the Exchange's discretion.
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    The proposed fee will be implemented beginning September 1, 
2001.\6\ In the case of a newly constructed kiosk, the fee will 
commence in the first full calendar month after construction is 
completed.
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    \6\ This fee is eligible for the monthly credit of up to $1,000 
to be applied against certain fees, dues, and charges and other 
amounts owed to the Exchange by certain members. See Securities 
Exchange Act Release No. 44292 (May 11, 2001), 66 FR 27715 (May 18, 
2001) (SR-Phlx-2001-49).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\7\ in general, and furthers the 
objectives of Section 6(b)(4),\8\ in particular, in that it is an 
equitable allocation of reasonable fees among the Exchange's members 
because the members who pay the additional amount for the kiosks incur 
the benefit of using the kiosks.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
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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 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 either solicited or received.

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

    The Exchange has designated the proposed rule change as a fee 
change pursuant to section 19(b)(3)(A)(ii) of the Act \9\ and Rule 19b-
4(f)(2) thereunder.\10\ Accordingly, the proposal will take effect upon 
filing with the Commission. 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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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 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 
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 the principal office of the 
Phlx. All submissions should refer to File No. SR-Phlx-2001-80 and 
should be submitted by September 20, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-21890 Filed 8-29-01; 8:45 am]
BILLING CODE 8010-01-M