[Federal Register Volume 66, Number 204 (Monday, October 22, 2001)]
[Notices]
[Page 53467]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26484]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44930; File No. SR-Phlx-2001-77]


Self-Regulatory Organizations; Order Granting Approval of 
Proposed Rule Change by the Philadelphia Stock Exchange, Inc. To Amend 
Exchange Rule 625, Trading Floor Training, Equity Floor Procedure 
Advice F-30, and Options Floor Procedure Advice F-30

October 12, 2001.
    On August 9, 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 Phlx Rule 625 (``Trading Floor 
Training''), Equity Floor Procedure Advice F-30, and Options Floor 
Procedure Advice F-30 (collectively referred to as ``Advice F-30'') \3\ 
to allow the Exchange to require from time to time its members and 
their respective personnel to attend mandatory training sessions 
related to conduct, health and safety on the Exchange's equity and 
options trading floors (collectively referred to as ``trading floor''). 
The Phlx also proposed to amend the fine schedule in Equity Floor 
Procedure Advice F-30 to be consistent with the fine schedule in the 
corresponding Options Floor Procedure Advice.\4\ Notice of the proposed 
rule change appeared in the Federal Register on August 30, 2001.\5\ The 
Commission received no comments on the proposed rule change. This order 
approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Advice F-30 and the accompanying fine schedules are part of 
the Exchange's minor rule violation and reporting plan (``minor rule 
plan''). The Exchange's minor rule plan, codified in Phlx Rule 970 
(``Floor Procedure Advices: Violations, Penalties, and 
Procedures''), contains floor procedure advices with accompanying 
fine schedules such that a minor rule violation and reporting plan 
citation could be issued. Rule 19d-1(c)(2) under the Act authorizes 
national securities exchanges to adopt minor rule violation plans 
for summary discipline and abbreviated reporting. 17 CFR 240.19d-
1(c)(2). Rule 19d-1(c)(1) under the Act requires prompt filing with 
the Commission of any final disciplinary actions. 17 CFR 240.19d-
1(c)(1). However, minor rule violations not exceeding $2,500 are 
deemed not final, thereby permitting periodic, as opposed to 
immediate reporting.
    \4\ The fine schedule applicable to Options Floor Procedure 
Advice F-30 was recently amended and reflects the same fines as 
proposed herein. See Securities Exchange Act Release No. 44537 (July 
11, 2001), 66 FR 37511 (July 18, 2001) (order approving SR-Phlx-
2001-36).
    \5\ See Securities Exchange Act Release No. 44742 (August 23, 
2001), 65 FR 45885.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of Section 6 of the Act \6\ in general, and the 
rules and regulations thereunder.\7\ In particular, the Commission 
believes that the proposal is consistent with Section 6(c)(3)(B) of the 
Act,\8\ which provides, among other things, that a national securities 
exchange may require its members to meet certain standards of training, 
experience and competence as prescribed by the rules of an exchange. 
The Commission believes that requiring, providing notice of, and 
conducting training sessions related to conduct, health and safety on 
the trading floor by the Exchange should promote a safer work 
environment by informing Exchange members and their respective 
personnel of important issues related to the Exchange's trading floor.
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    \6\ 15 U.S.C. 78f.
    \7\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(c)(3)(B).
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    The Commission also finds that the proposed rule change is 
consistent with Section 6(b)(4) of the Act,\9\ which requires that the 
rules of the exchange provide for the equitable allocation of 
reasonable dues, fees, and other charges to exchange members, in that 
the Exchange's proposed fine schedule for its Equity Floor Procedure is 
consistent with the already existing fine schedule of the Exchange's 
Option Floor Procedures.\10\
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    \9\ 15 U.S.C. 78f(b)(4).
    \10\ See note 4, supra.
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    It is therefore ordered,pursuant to Section 19(b)(2) of the 
Act,\11\ that the proposed rule change (SR-Phlx-2001-77) be, and 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 the 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. 01-26484 Filed 10-19-01; 8:45 am]
BILLING CODE 8010-01-M