[Federal Register Volume 67, Number 2 (Thursday, January 3, 2002)]
[Notices]
[Pages 380-381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-75]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45193; File No. SR-Phlx-2001-118)


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. Relating to the Implementation of a Fee with Respect to 
Certain Individuals Who Work on the Exchange's Trading Floor

December 27, 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 December 19, 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 Exchange. 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 Exchange proposes to amend its schedule of dues, fees, and 
charges to adopt a fee of $25 per month to be imposed on member/
participant organizations for individuals employed by such member/
participant organizations who work on the Exchange's trading floor, but 
who are not registered as Exchange members or foreign currency options 
(``FCO'') participants.\3\ The Exchange intends to charge member/
participant organizations a $25 fee per month for such individuals 
registered as of the first trading day of the month. The Exchange 
states that it intends to implement this fee beginning on January 1, 
2002.\4\
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    \3\ According to the Exchange, individuals registered to be on 
the Exchange's trading floor, but who are not registered as members 
or FCO participants, include trading floor personnel such as clerks, 
interns, stock execution clerks, and other associated persons of 
member/participant organizations. These individuals are required to 
be registered with the Exchange Pursuant to Exchange Rule 620(b).
    \4\ The Exchange states that this fee will be 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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    The text of the proposed rule change is available at the Office of 
the Secretary, the Phlx, and at the Commission.

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 Exchange 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 Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

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

(1) Purpose
    The Exchange states that the purpose of the proposed rule change is 
to impose a fee on Exchange member/participant organizations for their 
employees who are registered to be on the Exchange's trading floor, but 
are not registered as members or FCO participants. The Exchange states 
that this fee is intended to help it offset the costs it incurs in 
registering these individuals.\5\
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    \5\ According to the Exchange, individuals who are registered as 
inactive nominees pursuant to Exchange By-Law Article XII, Section 
12-10 and Exchange Rule 21 will not be subject to the proposed fee.
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(2) Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\6\ in general, and furthers the 
objectives of Section 6(b)(4),\7\ in particular, in that it is an 
equitable allocation of reasonable fees among the Exchange's members 
because the member/participant organizations who pay the additional, 
minimal amount for registering their employees incur the benefit of 
having these employees on the Exchange's trading floor.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 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 foregoing rule change establishes or changes a due, fee, or 
charge imposed by the Exchange and, therefore, has become effective 
upon filing pursuant to Section 19(b)(A)(ii) of the Act \8\ and Rule 
19b-4(f)(2) hereunder.\9\ At any time within 60 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 purpose of the Act. The 
Exchange has stated that it intends to implement this fee beginning on 
January 1, 2002.
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    \8\ 15 U.S.C. 78(s)(b)(3)(A)(ii).
    \9\ 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

[[Page 381]]

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 Section. Copies of such filing will also be available for 
inspection and copying at the principal office of the Exchange. All 
submissions should refer to File No. SR-Phlx-2001-118 and should be 
submitted by January 24, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-75 Filed 1-2-02; 8:45 am]
BILLING CODE 8010-01-M