[Federal Register Volume 68, Number 7 (Friday, January 10, 2003)]
[Notices]
[Pages 1497-1498]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-456]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47124; File No. SR-Phlx-2002-84]


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

January 3, 2003.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'' or ``Exchange Act''),\1\ and rule 19b-4 thereunder,\2\ notice 
is hereby given that on December 18, 2002, the Philadelphia Stock 
Exchange, Inc. (``Phlx'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``SEC'' or ``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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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: (1) Future off-floor traders to pay an initial 
registration fee of $100, an increase from $50; and (2) current and 
future off-floor traders registered as of April 1 of each year to pay 
an annual fee of $350, an increase from $250. An off-floor trader is a 
person who is compensated directly or indirectly by a member or 
participant organization for which the Exchange is the Designated 
Examination Authority (``DEA'') for the solicitation or handling of 
business in securities, including trading securities for the account of 
the member or participant organization, and who is not otherwise 
required to register with the Exchange.\3\ The proposed increase in the 
initial registration fee is to become effective January 2, 2003, with 
the increased annual fee to be implemented April 1, 2003.\4\ The text 
of the proposed rule change is available at the principal

[[Page 1498]]

offices of the Phlx and at the Commission.
---------------------------------------------------------------------------

    \3\ Off-floor traders are required to file the Uniform 
Application for Securities Industry Registration or Transfer form 
(``form U-4'') with the Exchange. See Phlx rule 604(e)(i).
    \4\ The Exchange has not designated the Off-Floor Trader 
Registration Fee as eligible for the monthly credit. See Securities 
Exchange Act Release No. 44292 (May 11, 2001), 66 FR 27715 (May 18, 
2001) (SR-Phlx-2001-49). The monthly credit allows Exchange members 
to receive a monthly credit of up to $1,000 to be applied against 
certain fees, dues, charges and other such amounts.
---------------------------------------------------------------------------

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 the 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 increase initial and 
annual off-floor trader fees to generate additional revenue to help 
off-set the Exchange's costs associated with conducting off-floor 
trader examinations, including administrative costs, such as cost 
incurred in conducting background checks on the individuals to whom the 
fees apply, processing of forms, fingerprint charges, and requests for 
disciplinary history from the Central Registration Depository.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\5\ in general, and furthers the 
objectives of section 6(b)(4) of the Act,\6\ in particular, in that it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among its members.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in 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

    Written comments were neither solicited nor received.

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

    The foregoing rule change has become effective pursuant to section 
19(b)(3)(A)(ii) of the Act \7\ and rule 19b-4(f)(2) thereunder,\8\ as 
establishing or changing a due, fee, or other charge. 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.\9\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
    \9\ See section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------

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-2002-84 and 
should be submitted by January 31, 2003.
    For the Commission, by the Division of Market Regulation, pursuant 
to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-456 Filed 1-9-03; 8:45 am]
BILLING CODE 8010-01-P