[Federal Register Volume 68, Number 43 (Wednesday, March 5, 2003)]
[Notices]
[Pages 10562-10563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-5159]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47408; File No. SR-Phlx-2003-09]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. Relating to Index Option Charges

February 26, 2003.
    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 February 19, 2003, 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 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 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 by terminating the Index Option Book Charge of $1000 per month 
on Phlx specialists in the Exchange's Sector Index Options (``Index 
Options''), and the $2000 per month charge on Phlx specialists in the 
KBW Bank SectorSM (``BKX SM''), the Oil Service 
SectorSM (``OSX SM''), the Semiconductor 
SectorSM (``SOX SM'') and the Gold and Silver 
SectorSM (``XAU SM''). The Index Option Book 
Charge became effective on January 2, 2003.\3\ The text of the proposed 
rule change is set forth below. Deleted text is in brackets.
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    \3\ See Securities Exchange Act Release No. 47087 (December 23, 
2002), 68 FR 146 (January 2, 2003).
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Summary of Index Option Charges

Option Comparison Charge I (applicable to all trades--except specialist 
trades)
Registered Option Trader--$.03 per contract
Firm (Proprietary and Customer Executions)--$.04 per contract
Option Transaction Charge I
Customer Executions
    Market value less than $1.00*--$.20 per contract
    Market value $1.00 or over*--$.40 per contract
Firm **--$.10 per contract
Registered Option Trade--$.19 per contract
Specialist--$.14 per contract
[Option Book Charge I
KBW Bank Sector\SM\--$2,000 per month
Oil Service Sector\SM\
Semiconductor Sector\SM\
Gold and Silver Sector\SM\
All other Index Options--$1,000 per month]
Option Floor Brokerage Assessment I
5% of net floor brokerage income.
Floor Brokerage Transaction Fee I
$.05 per contract, for floor brokers executing transactions for their 
own member firms.

Real-Time Risk Management Fee I

$.0025 per contract for firms/members receiving information on a real-
time basis See Appendix A for additional fees.

    I denotes fee eligible for monthly credit of up to $1,000.

    * Block transaction for customer executions of 500 to 999 contracts 
and 1000 contracts and more are eligible for a discount to such charges 
of 15% and 25% respectively from the stated rates upon submission to 
the PHLX of a customer option block discount request form with 
supportive documentation within thirty (30) days of monthly billing 
date.
    ** Non-clearing firm members' proprietary transactions are eligible 
for the ``firm'' rate based upon submission of a PHLX rebate request 
form with supportive documentation within thirty (30) days of invoice 
date.

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 terminate the Index 
Option Book Charge of $1000 per month on Phlx specialists in the 
Exchange's Index

[[Page 10563]]

Options, and the $2000 per month charge on Phlx specialists in the KBW 
Bank Sector\SM\ (``BKX\SM\''), the Oil Service Sector\SM\ 
(``OSX\SM\''), the Semiconductor Sector\SM\ (``SOX\SM\'') and the Gold 
and Silver Sector\SM\ (``XAU\SM\'') Index Options. The Index Option 
Book Charge became effective on January 2, 2003.
    2. Statutory Basis
    The Exchange believes that its proposal to terminate the Index 
Option Book Charge consistent with section 6(b) of the Act,\4\ in 
general, and furthers the objectives of section 6(b)(4) of the Act,\5\ 
in particular, in that it provides for the equitable allocation of 
reasonable dues, fees, and other charges among Exchange members.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 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 either solicited or received.\6\
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    \6\ One comment letter regarding SR-Phlx-2002-80 was received 
after the proposed rule change was effective. No comments were 
solicited or received regarding the present proposed rule change.
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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 \7\ and rule 
19b-4(f)(2) thereunder.\8\ 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 purpose of the Act.
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    \7\ 15 U.S.C. 78(s)(b)(3)(A)(ii).
    \8\ 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 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-2003-09 and 
should be submitted by March 26, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-5159 Filed 3-4-03; 8:45 am]
BILLING CODE 8010-01-P