[Federal Register Volume 67, Number 32 (Friday, February 15, 2002)]
[Notices]
[Pages 7209-7210]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3714]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45425; File No. SR-Phlx-2002-07]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. Relating to Fees Applicable to Competing Specialists

February 8, 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 8, 2002, 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 Phlx proposes to amend its schedule of dues, fees and charges 
to establish clearly that the Exchange's fees, credits, discounts and 
other charges that are based upon an equity specialist's activity apply 
to competing specialists. The Exchange proposes to add language to its 
fee schedule to make clear that such fees, credits, discounts and other 
charges apply to competing specialists.
    The text of the proposed rule change is available at the Office of 
the Secretary, the Phlx, and 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 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. The 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 establish clearly 
that any fees and charges (as well as any credits and discounts) on the 
Exchange's schedule of dues, fees and other charges that are based upon 
an equity specialist's activity apply to competing specialists. On 
December 21, 2001, the Commission approved a proposed rule change to 
adopt rules designed to facilitate the establishment of a competing 
specialist program on the Exchange.\3\ The new rules provide for the 
approval by the Exchange's Equity Allocation, Evaluation and Securities 
Committee of applications by qualified specialist units to act as 
competing specialists in one or more equity securities. The Exchange 
contemplates commencing a competing specialist program in the near 
future. Under that program, equity securities traded on the Exchange 
may have both a primary specialist (contemplated to be the Exchange's 
current sole specialist in the security) and one or more competing 
specialists. At this time, the Exchange is proposing to apply all 
specialist fees and charges (as well as any applicable credits or 
discounts) to Exchange specialists, whether primary or competing.
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    \3\ See Securities Exchange Act Release No. 45183, 67 FR 118 
(January 2, 2002) (SR-Phlx-2001-97).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with section 
6(b) of the Act,\4\ in general, and section 6(b)(4) of the Act,\5\ in 
particular, because it provides for the equitable allocation of 
reasonable dues, fees and other charges among its members and other 
persons using its facilities.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 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 burden on competition.

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

    Written comments were neither solicited nor received.

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

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by the Exchange, it has become effective 
pursuant to section 19(b)(3)(A) of the Act \6\ and subparagraph (f)(2) 
of Rule 19b-4 \7\ thereunder. 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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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 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,

[[Page 7210]]

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 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-2002-07 and should be 
submitted by March 8, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Magaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-3714 Filed 2-14-02; 8:45 am]
BILLING CODE 8010-01-P