[Federal Register Volume 67, Number 87 (Monday, May 6, 2002)]
[Notices]
[Pages 30409-30410]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-11106]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45847; File No. SR-Phlx-2002-30]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. Relating to the Adoption of a Fee for Construction of 
Kiosks

April 30, 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 April 24, 2002, the Philadelphia Stock Exchange, Inc. (``Phlx'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the

[[Page 30410]]

proposed rule change as described in Items I and II below, which Items 
have been prepared by the Exchange. 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.
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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 require specialists and specialist units (collectively 
referred to as ``specialist units'') to pay for the construction cost 
of a kiosk if the specialist unit initiates the construction request 
for the kiosk.\3\ The text of the proposed rule change is available at 
the Phlx's Office of the Secretary and at the Commission.
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    \3\ A kiosk is an open, flat surface that contains computer 
terminals and allows the specialist units to face the trading crowd.
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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 III below. The Exchange 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 require specialist 
units to pay for the cost of constructing a kiosk, if requested by 
them, due to the considerable costs associated with construction. These 
requests for construction may not be consistent with the Exchange's 
floor development plans, thereby requiring an unbudgeted expenditure of 
capital by the Exchange. However, consistent with current Exchange 
billing policies, if the Exchange chooses to construct a kiosk, it will 
charge the specialist unit the fee for a trading post with kiosk. 
Therefore, for future kiosk construction requests initiated by a 
specialist unit, the Exchange will pass through the construction cost 
to the specialist unit.\4\
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    \4\ The decision to construct a kiosk at a particular post is 
solely within the Exchange's discretion, even if the specialist unit 
pays for the construction cost for the kiosk.
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    The Exchange intends to request one-half of the cost prior to 
construction, with the remainder charged after construction is 
completed.\5\ Because the specialist unit would pay for the 
construction cost of the kiosk, the Exchange's current monthly fee of 
$375 for trading post with kiosk will not apply.\6\ However, the 
Exchange's current monthly fee of $250 for a trading post will continue 
to apply.\7\
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    \5\ This fee is not eligible 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).
    \6\ See Securities Exchange Act Release No. 44744 (August 24, 
2001), 66 FR 45884 (August 30, 2001) (SR-Phlx-2001-80).
    \7\ Generally, post space is space on the Exchange's trading 
floor for specialist units.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\8\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act,\9\ in particular, by 
providing for the equitable allocation of reasonable dues, fees and 
other charges among the Exchange's members because the members who 
request and pay for the construction of the kiosk will incur the 
benefit of using the kiosk.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 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 solicited or received with respect to the 
proposed rule change.

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

    The foregoing rule change establishes or changes a due, fee, or 
charge imposed by the Exchange and, therefore, has become effective 
upon filing pursuant to Section 19(b)(3)(A)(ii) of the Act \10\ and 
Rule 19b-4(f)(2) thereunder.\11\ At any time within 60 days of the 
filing of Amendment No. 1 to 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 
purpose of the Act.
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    \10\ 15 U.S.C. 78(s)(b)(3)(A)(ii).
    \11\ 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, as amended, 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 at 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 
No. SR-Phlx-2002-30 and should be submitted by May 28, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-11106 Filed 5-3-02; 8:45 am]
BILLING CODE 8010-01-P