[Federal Register Volume 68, Number 137 (Thursday, July 17, 2003)]
[Notices]
[Page 42450]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-18123]


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SECURITIES AND EXCHANGE COMMISSION

(Release No. 34-48166; File No. SR-Phlx-2002-87)


Self-Regulatory Organizations; Order Approving Proposed Rule 
Change by the Philadelphia Stock Exchange, Inc. and Amendment No. 1 
Thereto Relating to the Imposition of a 500 Contract Cap on Payment for 
Order Flow Fees

July 11, 2003.
    On December 26, 2002, pursuant to section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4 
thereunder,\2\ the Philadelphia Stock Exchange, Inc. (``Phlx'') filed 
with the Securities and Exchange Commission a proposal to impose a 500-
contract cap on fees in connection with its payment for order flow 
program. On May 29, 2003, the Phlx filed Amendment No. 1 to the 
proposed rule change. Under the proposal, the applicable payment for 
order flow fee would be imposed only on the first 500 contracts per 
individual cleared side of a transaction.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change was published for comment in the Federal 
Register on June 6, 2003.\3\ The Commission received no comments on the 
proposal.
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    \3\ See Securities Exchange Act Release No. 47958 (May 30, 
2003), 68 FR 34026 (June 6, 2003).
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange, particularly 
section 6(b) of the Act \4\ and the rules and regulations 
thereunder.\5\ The Commission finds that the proposed rule change 
provides for the equitable allocation of reasonable dues, fees, and 
other charges among Phlx members and other persons using the Phlx's 
facilities, consistent with Section 6(b)(4) of the Act.\6\
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    \4\ 15 U.S.C. 78f(b).
    \5\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(4).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\7\ that the proposed rule change (File No. SR-Phlx-2002-87) be, 
and it hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    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. 03-18123 Filed 7-16-03; 8:45 am]
BILLING CODE 8010-01-P