[Federal Register Volume 67, Number 212 (Friday, November 1, 2002)]
[Notices]
[Pages 66697-66698]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27810]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46721; File No. SR-Phlx-2002-63]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. To Increase Maintenance and Transfer Registration Fees 
for Registered Representatives

October 25, 2002.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on October 15, 2002, the Philadelphia Stock Exchange, Inc. 
(``Exchange'' or ``Phlx'') submitted to 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, pursuant to Section 19(b)(1) of the Act \3\ and Rule 19b-
4 thereunder,\4\ proposes to amend its schedule of dues, fees and 
charges to increase from $50.00 to $55.00 both the maintenance and 
transfer registration fees for registered representatives.\5\ The 
initial registered representative registration fee will remain at 
$55.00.\6\ In addition, the Exchange proposes to make a minor change to 
its schedule of dues, fees and charges by changing the word 
``Maintenance'' that appears under Registered Representative 
Registration to ``Renewal.''
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    \3\ 15 U.S.C. 78s(b)(1).
    \4\ 17 CFR 240.19b-4.
    \5\ These fees are 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. 44947 (October 17, 
2001), 66 FR 53822 (October 24, 2001) (SR-Phlx-2001-90).
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    The proposed fee of $55.00 for maintenance and transfer 
registration for registered representatives will apply to 2003 
registered representative registrations.\7\ Consistent with current

[[Page 66698]]

practice, the Phlx intends that, on its behalf, the National 
Association of Securities Dealers, Inc. (``NASD'') will bill for year 
2003 registered representative renewal registration fees in November, 
2002 and will thereafter collect the maintenance fee for the 
Exchange.\8\
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    \7\ Registered representative categories include registered 
options principals, general securities representatives, general 
securities sales supervisors and United Kingdom-limited general 
securities registered representatives.
    \8\ In addition, the Exchange intends that, on its behalf, the 
NASD will bill and collect the initial and transfer fees in 2003, 
consistent with current practice.
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    The text of the proposed rule 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 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 generate additional 
revenue for the Exchange by increasing the maintenance (renewal) and 
transfer registered representative registration fees from $50.00 to 
$55.00.\9\ In addition, the Exchange believes that this fee increase is 
warranted based upon the Exchange's increased costs relating to its 
regulatory oversight and enforcement programs.
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    \9\ Two other exchanges recently increased their maintenance 
(also referred to as ``annual'') and transfer registration fees for 
registered representatives. See Securities Exchange Act Release Nos. 
46266 (July 25, 2002), 67 FR 49969 (August 1, 2002) (SR-CBOE-2002-
37) and 46239 (July 19, 2002), 67 FR 48962 (July 26, 2002) (SR-PCX-
2002-38).
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    The Exchange is also amending its schedule of dues, fees and 
charges by changing the word ``Maintenance'' that appears under 
Registered Representative Registration to ``Renewal.'' The Exchange 
believes that the word ``Renewal'' more readily reflects how the fee is 
implemented.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Act \10\ in general, and Section 6(b)(4) of the Act 
\11\ in particular, in that the proposal is designed to provide for the 
equitable allocation of reasonable dues, fees, and other charges among 
Exchange members.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Phlx 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 proposed rule change establishes or changes a 
due, fee or other charge, it has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \12\ and subparagraph (f)(2) of Rule 19b-4 
\13\ 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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    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \13\ 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 
Exchange. All submissions should refer to File No. SR-Phlx-2002-63 and 
should be submitted by November 22, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-27810 Filed 10-31-02; 8:45 am]
BILLING CODE 8010-01-P