[Federal Register Volume 67, Number 3 (Friday, January 4, 2002)]
[Notices]
[Page 622]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-179]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45184; File No. SR-Phlx-2001-98]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Order Approving Proposed Rule Change and Amendments No. 1 and 2 
Relating to the Establishment of a Remote Specialist Program

December 21, 2001.
    On October 22, 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 establish a remote specialist 
program.
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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 and Amendment No. 1 were published for 
comment in the Federal Register on November 12, 2001.\3\ No comments 
were received on the proposal. The proposal was amended on November 29, 
2001.\4\ In this order, the Commission is approving the proposed rule 
change, as amended.
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    \3\ See Securities Exchange Act Release No. 45014 (November 2, 
2001), 66 FR 56888.
    \4\ See letter from Carla Behnfeldt, Director, Legal Department 
New Product Development Group, Phlx to John Riedel, Attorney 
Adviser, Division of Market Regulation (``Division''), Commission, 
dated November 28, 2001 (``Amendment No. 2''). In Amendment No. 2, 
several technical edits are made to subsection (n) of proposed rule 
461 that do not need to be published for comment.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \5\ and, in 
particular, with the requirements of section 6(b)(5).\6\
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    \5\ 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).
    \6\ 15 U.S.C. 78f(b)(5).
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    The Commission finds that the proposed rule change is consistent 
with section 6(b)(5) of the Act \7\ because it is designed to perfect 
the mechanisms of a free and open market and a national market system 
and, in general, to protect investors and the public interest. The 
Commission believes that a remote specialist program will assist the 
Exchange in maintaining an efficient and open market.
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    \7\ 15 U.S.C. 78f(b)(5).
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    The Commission approves this proposed rule change provided that the 
Exchange meet the following conditions: (i) The Exchange shall have 
place specific information barrier policies and surveillance policies 
that are consistent with the Exchange's existing rules and that are 
acceptable be the Commission's Office of Compliance Inspections and 
Examinations (``OCIE''); (ii) each remote PACE terminal shall be 
individually identified and associated with (an) authorized and 
qualified specialist(s) and/or registered clerk(s) and will require a 
non-transferable Remote Authorization; and (iii) all registered 
specialists and clerks, except those currently operating as floor 
specialists and clerks, must complete a floor training program.\8\ The 
training may be waived by the Exchange for people in exceptional 
circumstances if other arrangements are made with and approved by the 
Exchange. However, a waiver will only be permitted if the Exchange is 
assured that the person requesting the waiver has made other 
arrangements that ensure that the person meet all of the training 
requirements. The training may not be waived for easily remedied 
reasons such as geographical location or inconvenience.
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    \8\ The floor training must include, among other things: 
communication procedures with Floor Brokers, PACE Desk, 
Surveillance, Systems Support, and ITS coordination with the Floor; 
remote/competing specialist program and Unlisted Trading Privilege 
applications and procedures, stock allocation procedures; trading 
halt procedures; and books and records/reports available.
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    The Commission finds good cause for approving Amendment No. 2 prior 
to the thirtieth day after notice of the publication in the Federal 
Register. Amendment No. 2 makes minor technical changes to the proposed 
rule language, dealing with non-transferability of the remote 
authorizations. The Commission therefore finds that acceleration of 
Amendment No. 2 is appropriate.

Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning Amendment No. 2, including whether the proposed 
amendments are 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 amendments that are 
filed with the Commission, and all written communications relating to 
the amendments 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 at the 
Commission's Public Reference Room. Copies of such filing also will be 
available for inspection and copying at the principal office of the 
Phlx. All submissions should refer to File No. SR-Phlx-2001-98 and 
should be submitted by January 25, 2002.
    It Is Therefore Ordered, pusuant to section 19(b)(2) of the Act,\9\ 
that the proposed rule change (SR-Phlx-2001-98), as amended, is 
approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    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. 02-179 Filed 1-3-02; 8:45 am]
BILLING CODE 8010-01-M