[Federal Register Volume 67, Number 17 (Friday, January 25, 2002)]
[Notices]
[Pages 3771-3772]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-1908]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45304; File No. SR-Phlx-2001-112]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. Reducing Exchange Fees for Trading Floor Members 
Participating in the Wireless Phone System

January 17, 2002.
    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 17, 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 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 decrease from $200 to $100 the fee per month for each phone used by 
Phlx members on the equity and options floors of the Exchange 
participating in the Exchange's Ericsson Wireless Phone

[[Page 3772]]

System (``system''). \3\ The proposed amended fee will be implemented 
beginning January 1, 2002. \4\
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    \3\ A $200 fee per month for each phone used on the system has 
been in effect since 1999. See Securities Exchange Act Release No. 
41449 (May 25, 1999), 64 FR 29725 (June 2, 1999) (SR-Phlx-99-10). 
Users of the system are also assessed a one-time fee to purchase a 
handset, headset, battery, and accessories. While the system is 
available for use on both the equity and options floors, at this 
time it is used only on the options floor.
    \4\ This fee will continue to be ineligible 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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II. Self-regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, 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. Phlx 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 purpose of the proposed rule change is to amend the Exchange's 
schedule of dues, fees and charges to decrease from $200 to $100 the 
fee per month for each phone used by members on the equity and options 
floors participating in the system. Each member user of the wireless 
phones has to agree to pay a monthly fee per phone (which will be 
reduced to $100 commencing January 1, 2002) for a period of twelve 
months, or, if an agreement has been already signed, for the remainder 
of the twelve month period. At the end of the twelve-month period, a 
new agreement will be presented to the user. Phlx Rule 50 will govern 
payment of the monthly fees.
    The Exchange believes that the proposed decrease in the monthly 
wireless phone fee is reasonable and equitable to all members on the 
equity and options floors of the Exchange that use the wireless phone 
system. This fee will help to offset the expense incurred in using and 
maintaining the system.
2. Statutory Basis
    The Exchange believes that its proposal to amend its schedule of 
dues, fees and charges is consistent with Section 6(b) \5\ of the Act 
in general, and furthers the objectives of section 6(b)(4) \6\ in 
particular, in that it is an equitable allocation of reasonable fees 
among the Exchange's members, because the members who pay the reduced 
monthly fee incur the benefit of using the phones on the Exchange's 
wireless phone system.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Phlx does not believe that the proposed rule change will impose 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Phlx has neither solicited nor received written comments with 
respect to the proposed rule change.

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

    The foregoing proposed rule change has been designated as a fee 
change pursuant to section 19(b)(3)(A) \7\ of the Act and Rule 19b-
4(f)(2) \8\ thereunder. 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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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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 concering 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-2001-112 and 
should be submitted by February 15, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 02-1908 Filed 1-24-02; 8:45 am]
BILLING CODE 8010-01-M