[Federal Register Volume 69, Number 28 (Wednesday, February 11, 2004)]
[Notices]
[Pages 6712-6713]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-2908]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49190; File No. SR-SCCP-2003-07]


Self-Regulatory Organizations; Stock Clearing Corporation of 
Philadelphia; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Equity Charges for Specialists

February 4, 2004.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 30, 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 
persons.
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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

    SCCP proposes to amend its schedule of dues, fees, and charges by 
eliminating the $.20 credit for Philadelphia Stock Exchange (``Phlx'') 
equity specialists' trades against Phlx Automated Communication and 
Execution System (``PACE'') executions \2\ for trades settling on or 
after January 2, 2004.\3\
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    \2\ PACE is Phlx's automated order entry, routing, and executing 
system. Phlx Rules 229 and 229A.
    \3\ SCCP previously implemented the $.20 PACE specialist credit 
effective June 1, 2000. Securities Exchange Act Release No. 42804 
(May 19, 2000), 65 FR 34244 (May 26, 2000) (SR-Phlx-00-42). A copy 
of SCCP's schedule of dues, fees, and charges is attached as Exhibit 
2 to its proposed rule filing.
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II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, SCCP 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. SCCP has prepared summaries, set forth in sections A, B, 
and C below, of the most significant aspects of such statements.\4\
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    \4\ The Commission has modified the text of the summaries 
prepared by SCCP.

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[[Page 6713]]

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

    The PACE specialist credit currently applies to Phlx specialists 
for their trades against PACE executions. The purpose of the proposed 
rule change is to eliminate the PACE specialist credit, which should 
generate additional revenue for SCCP and simplify SCCP's billing 
structure. SCCP intends to eliminate the PACE specialist credit for 
trades settling on or after January 2, 2004.
    SCCP believes that the proposed rule change is consistent with 
section 17A(b)(3)(D) of the Act \5\ which requires that the rules of a 
registered clearing agency provide for the equitable allocation of 
reasonable dues, fees, and other charges among its participants.
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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

    SCCP has not solicited or received any written comments relating to 
the proposed rule change.

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

    The foregoing proposed rule change has become effective pursuant to 
section 19(b)(3)(A)(ii) of the Act \6\ and Rule 19b-4(f)(2) \7\ 
thereunder because it changes a due, fee, or other charge. 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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    \6\ 15 U.S.C. 78s(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 5th Street NW, Washington, DC 20549-0069. 
Comments may also be submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-SCCP-2003-07. This file number should be included on the 
subject line if e-mail is used. To help the Commission process and 
review your 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 rule filing that are filed with the Commission, and all 
written communications relating to the rule filing between the 
Commission and any person, other than those that may be withheld from 
the public in accordance with provisions of 5 U.S.C. 552, will be 
available for inspection and copying in the Commission's Public 
Reference Room in Washington, DC. Copies of such filing will also be 
available for inspection and copying at SCCP's principal office and on 
SCCP's Web site at http://www.phlx.com/exchange/memos/SCCP/sccp_rules/122903.pdf. All submissions should refer to File No. SR-SCCP-2003-07 
and should be submitted by March 3, 2004.

    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. 04-2908 Filed 2-10-04; 8:45 am]
BILLING CODE 8010-01-P