[Federal Register Volume 68, Number 107 (Wednesday, June 4, 2003)]
[Notices]
[Pages 33562-33563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-13942]



[[Page 33562]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47921; File No. SR-SCCP-2003-01]


Self-Regulatory Organizations; Stock Clearing Corporation of 
Philadelphia; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Relating to Fees for Processing Transactions in 
Standard & Poor's Depositary Receipts[reg]

May 23, 2003.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 14, 2003, the Stock 
Clearing Corporation of Philadelphia (``SCCP'') 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 primarily by SCCP. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
parties.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change amends SCCP's fee schedule to adopt new 
fees for the processing of participant transactions in Standard & 
Poor's Depositary Receipts[reg] (``SPDRs''). The proposed rule change 
also makes minor clarifying amendments to its fee schedule regarding 
trades matching with PACE trades on the opening.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule

    In its filing with the Commission, SCCP included statements 
concerning the purpose of and statutory basis for the proposed rule 
change. The text of these statements may be examined at the places 
specified in Item IV below. SCCP has prepared summaries, set forth in 
sections (A), (B), and (C) below, of the most significant aspects of 
such statements.\2\
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    \2\ The Commission has modified parts of these statements.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The proposed rule change adopts: (1) A non-specialist charge of 
$0.30 per trade side for non-PACE executions, with no charge for PACE 
executions and (2) a specialist charge of $0.50 per trade for the first 
1,000 trades and $0.25 per trade for all subsequent trades with no 
further volume discounts.\3\ No other SCCP transaction fees will apply 
to trades in SPDRs.\4\ The proposed rule change also makes minor 
amendments to its fee schedule to clarify that the non-specialist 
charge of $0.30 is assessed per trade side and that the specialist 
charges of either $0.50 per trade and $0.25 per trade are not 
applicable to specialist trades matching with PACE trades on the 
opening.\5\
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    \3\ This is the same fee schedule that is currently in effect 
for the processing of Units of Beneficial Interest in the Nasdaq 100 
Trust, Series 1, traded under the symbol and widely known as QQQ. 
See Securities Exchange Act Release No. 44218 (April 25, 2001), 66 
FR 21803 (May 1, 2001) (SR-SCCP-00-06).
    \4\ Specialists will be eligible for a SCCP credit for 
specialist trades matching with PACE trades on the opening. See 
Securities Exchange Act Release No. 44278 (May 8, 2001), 66 FR 27193 
(May 16, 2001) (SR-SCCP-2001-05). Additionally, there are optional 
services offered by SCCP to which a specialist firm may subscribe, 
such as research requests.
    \5\ See supra note 5.
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    The purpose of the proposed rule change is to specifically provide 
for SCCP fees that will apply to trading of SPDRs. SCCP believes that 
these competitively priced fees should encourage trading of SPDRs, 
which should provide market participants with a more affordable market 
for the trading of this product. SCCP states that a more affordable, 
competitive market for trading should attract more order flow in the 
SPDRs to the Philadelphia Stock Exchange, Inc., which should, in turn, 
further increase liquidity of SPDRs and create a tighter, more liquid 
market. Increase market competition should both benefit investors and 
protect the public interest in general. This proposal is scheduled to 
become effective for transactions upon the implementation of trading in 
SPDRs.
    SCCP believes that the proposed rule change is consistent with 
17A(b)(3)(D) of the Act \6\ which requires that the rules of a 
registered clearing agency provide for equitable allocation of 
reasonable dues, fees, and other charges for services which it provides 
to its participants because the fee structure proposed herein applies 
to all participants that would be trading the SPDRs.
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    \6\ 15 U.S.C. 78q-1(b)(3)(D).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    SCCP 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 rule change establishes or changes a due, 
fee, or other charge imposed by SCCP, it has become effective pursuant 
to Section 19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-4(f)(2) 
thereunder.\8\ At any time within sixty 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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    \7\ 15 U.S.C. 78s(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. 
Comments may also be submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-SCCP-2003-01. This file number should be included on the 
subject line if e-mail is used. To help us process and review comments 
more efficiently, comments should be sent in hardcopy or by e-mail but 
not by both methods. 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 Section, 450 Fifth Street, NW., Washington, DC 20549. Copies 
of such filing also will be available for inspection and copying at the 
principal office of SCCP.


[[Page 33563]]


    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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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 03-13942 Filed 6-3-03; 8:45 am]
BILLING CODE 8010-01-P