[Federal Register Volume 68, Number 156 (Wednesday, August 13, 2003)]
[Notices]
[Pages 48436-48437]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-20545]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48286; File No. SR-SCCP-2003-03]


Self-Regulatory Organizations; Stock Clearing Corporation of 
Philadelphia; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Relating to Fees for Remote Competing Specialists 
for Odd-Lot Trades

August 5, 2003.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 28, 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 reduce the 
``SCCP transaction charge (remote competing specialists only)'' as it 
applies to odd-lot trades.

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 amends SCCP's schedule of dues, fees, and 
charges to reduce the amount of the ``SCCP transaction charge (remote 
competing specialists only)'' as it applies to odd-lot trades from 
$0.30 to $0.10 per trade side. The SCCP transaction charge applicable 
to round lot trades will remain at $0.30 per trade side.\3\ The 
combination of these fees remains capped at $100,000 per month.\4\
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    \3\ For purposes of this fee, an odd-lot is defined as a trade 
under 100 shares, whereas a round lot is defined as a trade of 100 
shares or more and includes partial round lots (for example, 125 
shares).
    \4\ This proposal is scheduled to become effective for 
transactions clearing on or after April 2, 2003.
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    SCCP states that the purpose of the proposed rule change is to 
encourage odd-lot business by reducing the SCCP transaction charge as 
it applies to odd-lot trades. Currently, the ``SCCP transaction charge 
(remote competing specialists only)'' is $0.30 per trade side capped at 
$100,000 per month without regard to size or type. This fee reduction 
is intended to provide an incentive for remote competing specialists to 
continue to trade odd-lots in addition to their regular businesses. 
SCCP believes that the proposed fee reduction will encourage these 
smaller trades as well as regular trades thereby enhancing SCCP's 
business and liquidity in the marketplace.
    SCCP believes that the proposed rule change is consistent with 
17A(b)(3)(D) of the Act \5\ 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 
equally to all SCCP participants with remote competing specialist 
operations or which clear for remote competing specialists.
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    \5\ 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 \6\ and Rule 19b-4(f)(2) 
thereunder.\7\ 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.

IV. Solicitation of Comments
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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-4(f)(2).
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    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-2003-03. 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 48437]]


    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. 03-20545 Filed 8-12-03; 8:45 am]
BILLING CODE 8010-01-P