[Federal Register Volume 68, Number 131 (Wednesday, July 9, 2003)]
[Notices]
[Pages 41035-41036]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-17358]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48112; File No. SR-Phlx-2003-39]


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

June 30, 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,

[[Page 41036]]

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 
by increasing three index option transaction charges.

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 Phlx 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 Phlx proposes to increase three index option transaction 
charges. Specifically, the Exchange proposes to increase the Registered 
Option Trader charge from $.19 per contract to $.21 per contract, to 
increase the Specialist charge from $.14 per contract to $.24 per 
contract, and to increase the Firm charge from $.10 per contract to 
$.15 per contract.\3\ These increases are proposed to be effective for 
contracts settling on or after June 1, 2003. These fee increases will 
raise revenue for the Exchange, which should help offset rising 
Exchange costs associated with maintaining a competitive marketplace 
for its members and investors.
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    \3\ These index option transaction charges had previously 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). 
The 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.
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2. Statutory Basis
    The Exchange believes that its proposal to amend its schedule of 
dues, fees and charges is consistent with section 6(b) of the Act in 
general,\4\ and furthers the objectives of section 6(b)(4) of the Act 
in particular,\5\ in that it is an 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.

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

    The proposed rule change has been designated as a fee change 
pursuant to section 19(b)(3)(A)(ii) of the Act \6\ and Rule 19b-4(f)(2) 
\7\ thereunder. 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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    \6\ 15 U.S.C. 78(s)(b)(3)(A)(ii).
    \7\ 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 
Phlx. All submissions should refer to File No. SR-Phlx-2003-39 and 
should be submitted by July 30, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-17358 Filed 7-8-03; 8:45 am]
BILLING CODE 8010-01-P