[Federal Register Volume 68, Number 118 (Thursday, June 19, 2003)]
[Notices]
[Pages 36860-36861]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-15502]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48026; File No. SR-Phlx-2003-38]


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

June 12, 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 May 30, 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, 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 proposes to amend its schedule of dues, fees, and charges 
applicable to equity option transactions. The text of the proposed rule 
change is available at the Office of the Secretary, the Phlx, and at 
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

[[Page 36861]]

in item IV below and is set forth in sections A, B, and C below.

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

1. Purpose
    The Phlx proposes to amend its schedule of dues, fees and charges 
applicable to equity options by increasing: (1) The Firm/Proprietary 
transaction charge from $.15 per contract to $.20 per contract; (2) the 
Firm/Proprietary Facilitation transaction charge from $.08 per contract 
to $.10 per contract; (3) the Registered Options Trader (on-floor) 
transaction charge from $.16 per contract to $.19 per contract; and (4) 
the Specialist transaction charge from $.18 per contract to $.21 per 
contract (the ``Amended Fees'').\3\ The Amended Fees are scheduled to 
be implemented on transactions settling on or after June 1, 2003. In 
addition, the Exchange proposes to delete the text of footnote 9 of its 
schedule of dues, fees, and charges, which inadvertently was not 
changed when amendments were made to the Firm/Proprietary Facilitation 
transaction charge in May 2002.\4\
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    \3\ These equity option transaction charges had heretofore been 
eligible for a 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). 
This credit program expired effective May 2003. The Exchange intends 
to file a separate proposed rule change to remove references to the 
member credit throughout the entire schedule of dues, fees and 
charges.
    \4\ See Securities Exchange Act Release No. 45942 (May 16, 
2002), 67 FR 36060 (May 22, 2002) (SR-Phlx-2002-32).
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    The Exchange states that the purpose of the proposed fee changes to 
the Firm/Proprietary transaction charge, the Firm/Proprietary 
Facilitation transaction charge, the Registered Option trader (on-
floor) transaction charge, and the Specialist transaction charge is to 
raise revenue for the Exchange from equity options transactions, which 
the Exchange believes should help offset rising Exchange costs 
associated with maintaining a competitive marketplace for its members 
and investors.
2. Statutory Basis
    The Exchange believes that its 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 
is an equitable allocation of reasonable dues, fees, and other charges 
among Exchange members, as it raises the equity option transaction fee 
for many users.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 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.

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

    The foregoing proposed rule change has been designated as a fee 
change pursuant to section 19(b)(3)(A)(ii) of the Act \7\ and rule 19b-
4(f)(2) thereunder.\8\ Accordingly, the proposal will take effect upon 
filing with the Commission. 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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    \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 proposal 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-2003-38 and should be 
submitted by July 10, 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. 03-15502 Filed 6-18-03; 8:45 am]
BILLING CODE 8010-01-P