[Federal Register Volume 69, Number 48 (Thursday, March 11, 2004)]
[Notices]
[Pages 11689-11690]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5424]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49362; File No. SR-Phlx-2004-15]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto by 
the Philadelphia Stock Exchange, Inc. Relating to Modifications to the 
Fee Schedule To Delete Obsolete Fees and Clarify Language

March 4, 2004.
    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 February 13, 2004, the Philadelphia Stock Exchange, Inc. 
(``Phlx'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``SEC'' or ``Commission'') the proposed rule change as 
described in Items I, II, and III, below, which Items have been 
prepared by the Phlx. On February 27, 2004, the Phlx amended its 
proposal.\3\ The Exchange filed the proposed rule change under 
paragraph (f)(2) of Rule 19b-4 under the Act.\4\ 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.
    \3\ See Letter from Angela Saccomandi Dunn, Counsel, Phlx, to 
Nancy J. Sanow, Assistant Director, Division of Market Regulation, 
Commission, dated February 26, 2004 (``Amendment No. 1''). In 
Amendment No. 1, Phlx replaced Exhibit 2 to its Form 19b-4.
    \4\ 17 CFR 240.19b-4(f)(2).
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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 
(``fee schedule''), as described in detail below, to more accurately 
reflect charges that are currently imposed by the Exchange on its 
members. No new dues, fees and charges are being imposed pursuant to 
this proposed rule change.
    The Exchange proposes to delete in their entirety, all charges 
relating to: (1) ``Summary of Value Line Index Option Charges'' and (2) 
the ``eVWAP Fee Schedule.'' Additionally, the Exchange proposes to 
delete from Appendix A of its fee schedule references to the ``Option 
Mailgram Service'' and ``Quotron Equipment.'' The Phlx also proposed to 
revise the ``Summary of Equity Charges'' portion of the fee schedule. 
The proposed rule change would delete the reference to ``Remaining 
shares, $0.004'' that appears on the last line under the Equity 
Transaction Charge and, instead, the term ``Remaining shares'' will 
replace the language that appeared on the transaction fee line that 
read ``Next 7,500.'' \5\ The Phlx would make this change to indicate 
that all remaining shares that are not subject to the $0.0075 equity 
transaction charge are subject to the $0.005 equity transaction charge, 
subject to the $50 maximum. The text of the proposed rule change, as 
amended, is available at the Phlx and at the Commission.
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    \5\ Applying the amount of $0.004 to the remaining shares is 
unnecessary, because the $50.00 maximum fee per trade side is 
reached before the $0.004 can apply.
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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, 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 purpose of the proposed rule change is to make minor 
modifications to the Exchange's fee schedule to more accurately reflect 
the charges currently imposed by the Exchange and delete obsolete fees. 
Both the ``Option Mailgram Service'' fee and the ``Quotron Equipment'' 
fee are no longer charged by the Exchange; this service and equipment 
are no longer offered. In addition, eVWAP and Value Line Index

[[Page 11690]]

Option products, are no longer offered at the Exchange. Also, a minor 
modification to the reference to ``Remaining Shares'' that appears on 
the ``Summary of Equity Charges,'' under the ``Equity Transaction 
Charge'' section, will eliminate unnecessary language.\6\
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    \6\ See supra note 3.
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    By removing and clarifying the aforementioned portions of the 
Exchange's fee schedule, as described in detail above, the Exchange 
believes that its fee schedule will be more accurate and clear, and 
minimize member confusion.
2. Statutory Basis
    The Exchange believes that its proposal to amend its fee schedule 
is consistent with section 6(b) of the Act \7\ in general, and furthers 
the objectives of section 6(b)(4) of the Act \8\ in particular, in that 
it provides for the equitable allocation of reasonable dues, fees, and 
other charges among its members and issuers and other persons using its 
facilities.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 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, as 
amended, will impose any burden on competition not necessary or 
appropriate in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments on the proposed rule change were either 
solicited or received.

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

    The proposed rule change, as amended, has become effective pursuant 
to section 19(b)(3)(A)(ii) of the Act \9\ and Rule 19b-4(f)(2) \10\ 
thereunder because it establishes or changes a due, fee, or other 
charge imposed by the Exchange. At any time within 60 days of the 
filing of such 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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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 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, as amended, 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-Phlx-2004-15. This file number should be 
included on the subject line if e-mail is used. To help the Commission 
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 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-2004-15 and should 
be submitted by April 1, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-5424 Filed 3-10-04; 8:45 am]
BILLING CODE 8010-01-P