[Federal Register Volume 67, Number 26 (Thursday, February 7, 2002)]
[Notices]
[Pages 5870-5871]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-2961]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45383; File No. SR-Phlx-2002-02]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change and Amendment No. 1 by the 
Philadelphia Stock Exchange, Inc. To Conform Its Fee Schedule to 
Congress' Amendment of Section 31 of the Securities Exchange Act of 
1934

February 1, 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 January 10, 2002, the Philadelphia Stock Exchange, Inc. (``Phlx'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC'') the proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the 
Exchange. On February 1, 2002, the Exchange amended the proposal.\3\ 
The Exchange filed this proposal under section 19(b)(3)(A) of the 
Act,\4\ and Rule 19b-4(f)(2) \5\ thereunder, which renders the proposal 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit comments on the proposed rule change, as 
amended, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See January 31, 2002 letter from Cynthia K. Hoekstra, 
Counsel, Phlx, to Joseph P. Morra, Special Counsel, Division of 
Market Regulation, SEC (``Amendment No. 1''). In Amendment No. 1, 
the Phlx provided new text to the proposed rule, and clarified that 
although the fee referred to in section 31 of the Act is imposed on 
national securities exchanges, the Phlx imposes this same fee on its 
members.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(2).
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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 reflect the revised fees imposed pursuant to section 31 of 
the Act.\6\ Until recently, section 31 of the Act required that 
national securities exchanges pay to the SEC ``a fee at a rate equal to 
1/300 of one percent of the aggregate dollar amount of the sales of 
securities (other than bonds, debentures, other evidences of 
indebtedness and security futures products) transacted on such national 
securities exchange * * * '' Congress recently passed the ``Investor 
and Capital Markets Relief Act'' (``ICMRA''),\7\ which amends section 
31 of the Act. The ICMRA will reduce the fee to $15 per $1 million of 
the aggregate dollar amount of the sale of securities. In addition, 
section 31 fees would no longer apply to sales of options on securities 
indexes (other than narrow-based security indexes). The Phlx proposes 
to amend its schedule of dues, fees and charges to reflect the reduced 
section 31 fee.\8\ The new fee is effective as of December 28, 2001. 
The text of the proposed rule change is available at the Phlx and at 
the Commission.
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    \6\ 15 U.S.C. 78ee.
    \7\ H.R. 1088, 107th Cong. (2001).
    \8\ While the fee referred to in section 31 of the Act is 
imposed on national securities exchanges, the Phlx imposes this same 
fee on its members. See Amendment No. 1.
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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 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

[[Page 5871]]

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 Phlx proposes to amend its schedule of dues, fees and charges 
to incorporate the amended section 31 fee passed by Congress.
 2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6 of the Act \9\ in general, and in particular, with 
section 6(b)(4),\10\ by providing for the equitable allocation of 
reasonable dues, fees and other charges among its members.
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    \9\ 15 U.S.C. 78f.
    \10\ 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 proposed rule change has become effective pursuant to section 
19(b)(3)(A)(ii) of the Act \11\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\12\ because it involves a due, fee, or other charge. 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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    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \12\ 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 proposal 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 Exchange. All 
submissions should refer to file number SR-Phlx-2002-02, and should be 
submitted by February 28, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-2961 Filed 2-6-02; 8:45 am]
BILLING CODE 8010-01-P