[Federal Register Volume 67, Number 50 (Thursday, March 14, 2002)]
[Notices]
[Pages 11541-11542]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-6161]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45525; File No. SR-SCCP-2002-01]


Self-Regulatory Organizations; Stock Clearing Corporation of 
Philadelphia; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Relating to Fees Applicable to Philadelphia Stock 
Exchange Competing Specialists

March 8, 2002.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 9, 2002, the Stock 
Clearing Corporation of Philadelphia (``SCCP'') 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 primarily by SCCP. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
parties.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The proposed rule change amends SCCP's fee schedule to establish 
clearly that SCCP's fees, credits, discounts, and other charges which 
are based upon Philadelphia Stock Exchange (``Phlx'') equity 
specialists'' specialist activities also apply to competing 
specialists' specialist activities.

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

    In its filing with the Commission, SCCP included statements 
concerning the purpose of and statutory basis for the proposed rule 
change. The text of these statements may be examined at the places 
specified in Item IV below. SCCP has prepared summaries, set forth in 
sections (A), (B), and (C) below, of the most significant aspects of 
such statements.\2\
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    \2\ The Commission has modified parts of these statements.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of the proposed rule change is to clearly establish 
that any fees and charges (as well as any credits and discounts) 
included in SCCP's fee schedule which are based upon Phlx equity 
specialists' specialist activities also apply to competing specialists' 
specialist activities. On December 21, 2001, the Commission approved a 
Phlx proposed rule change to adopt rules designed to facilitate the 
establishment of a competing specialist program on Phlx.\3\ The new 
rules provide for the approval by Phlx's Equity Allocation, Evaluation 
and Securities Committee of applications by qualified specialist units 
to act as competing specialists in one or more equity securities. Phlx 
contemplates commencing a competing specialist program in the near 
future. Under that program, equity securities traded on Phlx may have 
both a primary specialist (contemplated to be Phlx's current sole 
specialist in the security) and one or more competing specialists. At 
this time, SCCP is proposing to apply all specialist fees and charges 
(as well as any applicable credits or discounts) to Phlx specialists 
whether primary or competing.
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    \3\ Securities Exchange Act Release No. 34-45183 (December 21, 
2001), 67 FR 118 (January 2, 2002) (order approving SR-Phlx-2001-
97).
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    For these reasons, SCCP believes that the proposed rule change is 
consistent with Section 17A(b)(3)(D) of the Act \4\ which requires that 
the rules of a registered clearing agency provide for equitable 
allocation of reasonable dues, fees, and other charges for services 
which it provides to its participants because SCCP will charge the same 
for primary and competing specialists.
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    \4\ 15 U.S.C. 78q-1(b)(3)(D).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    SCCP 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

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by SCCP, it has become effective pursuant 
to Section 19(b)(3)(A)(ii) of the Act \5\ and Rule 19b-4(f)(2) 
thereunder.\6\ At any time within sixty 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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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 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 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

[[Page 11542]]

provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Section, 450 Fifth Street, 
NW., Washington, DC 20549. Copies of such filing will also be available 
for inspection and copying at SCCP. All submissions should refer to the 
File No. SR-SCCP-2002-01 and should be submitted by April 4, 2002.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-6161 Filed 3-13-02; 8:45 am]
BILLING CODE 8010-01-P