[Federal Register Volume 69, Number 46 (Tuesday, March 9, 2004)]
[Notices]
[Pages 11058-11059]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5273]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49355; File No. SR-SCCP-2004-02]


Self-Regulatory Organizations; Stock Clearing Corporation of 
Philadelphia; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Trade Ticket Adjustment Fees

March 2, 2004.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\, notice is hereby given that on January 29, 2004, 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 fee schedule by adopting a trade ticket 
adjustment fee ranging from $50 to $300 for each erroneous trade ticket 
that creates a false margin deficit.\2\
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    \2\ A copy of SCCP's fee schedule is attached as an exhibit to 
SCCP's 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 
Items IV below. SCCP has prepared summaries, set forth in sections A, 
B, and C below, of the most significant aspects of such statements.\3\
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    \3\ The Commission has modified the text of the summaries 
prepared by SCCP.
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A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to amend SCCP's fee 
schedule to adopt a trade ticket adjustment fee ranging from $50 to 
$300 for each erroneous trade ticket that creates a false margin 
deficit. Trade ticket adjustments occur whenever a SCCP margin member 
submits a trade ticket for an adjustment or correction due, for 
example, to clerical errors or missing or incorrect trade tickets. 
Incorrect trade tickets may cause a false impression of a margin 
deficiency and thereby result in a false margin call.
    The recalculation of account margin and the correction of incorrect 
or incomplete trade data using trade ticket adjustments is a manually 
intensive process that requires special handling and oversight by SCCP 
staff. Trade ticket adjustments take up considerable SCCP resources 
expended in researching the source of a trade ticket error. The trade 
ticket adjustment fee would apply only to those trade ticket 
adjustments that, prior to correction, resulted in a false margin 
deficiency in the SCCP margin member's margin account. The new trade 
ticket adjustment fee was effective on February 1, 2004.
    SCCP believes that the proposed rule change is consistent with 
section 17A(b)(3)(D) of the Act \4\ because it provides for the 
equitable allocation of dues, fees, and other charges.
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    \4\ 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 written comments on 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 \5\ and Rule 19b-4(f)(2) \6\ 
thereunder because it establishes or 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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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 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-2004-02. 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

[[Page 11059]]

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/SCCP/memindex_sccpproposals.html. All submissions should refer to File No. 
SR-SCCP-2004-02 and should be submitted by March 30, 2004.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 04-5273 Filed 3-8-04; 8:45 am]
BILLING CODE 8010-01-P