[Federal Register Volume 67, Number 68 (Tuesday, April 9, 2002)]
[Notices]
[Pages 17098-17099]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-8515]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45681; File No. SR-PHLX-2002-19]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. Relating to Increasing the Amount of the Late Charge 
Imposed Pursuant to Exchange Rule 50

April 2, 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 March 15, 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 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 the amount of the late charge that is 
imposed by the Phlx as set forth in Phlx Rule 50. Currently, the late 
charge is set at a rate of 1 percent simple interest for each thirty-
day period or fraction thereof, calculated on a daily basis, during 
which accounts payable to the Exchange remain outstanding at least 
thirty-one days. The Exchange proposes to increase the amount of the 
late charge from 1 percent to 1.5 percent. All other provisions 
relating to the Exchange's late charge as specified in Rule 50 would 
remain the same.
    The text of the proposed rule change is available at the Office of 
the Secretary, the Phlx, and the Commission.

[[Page 17099]]

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 Exchange is proposing to increase the amount of the late charge 
imposed by the Exchange from 1 percent to 1.5 percent in order to 
encourage members to pay, on a timely basis, monies due and owed the 
Exchange, which, in turn, should deter the practice of late payments.
    The Exchange notes that the proposed fee change will be effective 
with respect to all account receivable balances that are due to Phlx on 
or after April 1, 2002. Thus, delinquent balances due in March at a 
rate of 1 percent will be charged a rate of 1.5 percent effective April 
1, 2002.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act \3\ in general, and furthers the 
objectives of section 6(b)(4) of the Act \4\ in particular, in that it 
is an equitable allocation of reasonable dues, fees, and other charges 
among the Exchange's members who do not make timely payments to the 
Exchange. The Exchange also believes that the higher interest rate 
should encourage prompt payment of monies due and owed the Exchange.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 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 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 Exchange has neither solicited nor received any written 
comments on the proposed rule change.

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

    Because the foregoing proposed rule change establishes or changes a 
due, fee, or charge imposed by the Exchange, it has become effective 
upon filling pursuant to section 19(b)(3)(A) of the Act,\5\ and Rule 
19b-4(f)(2) \6\ thereunder. At any time within 60 days of the filing of 
such 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).
    \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 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-2002-19 and 
should be submitted by April 30, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 240.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-8515 Filed 4-8-02; 8:45 am]
BILLING CODE 8010-01-P