[Federal Register Volume 69, Number 67 (Wednesday, April 7, 2004)]
[Notices]
[Pages 18413-18414]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-7856]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49514; File No. SR-Phlx-2004-03]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change and Amendment No. 1 by the 
Philadelphia Stock Exchange, Inc. Relating to the Rescission of 
Exchange Rule 713

April 1, 2004.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on February 9, 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 March 29, 2004, the Phlx amended the 
proposal.\3\ The Exchange filed the proposed rule change under Section 
19(b)(3)(A) of the Act \4\ and Rule 19b-4(f)(6)\5\ thereunder, which 
renders the proposal effective upon filing with the Commission. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change, as amended, from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See March 26, 2004 letter from Mark I. Salvacion, Director 
and Counsel, Phlx, to Rose Wells, Division of Market Regulation, 
Commission and attachments (``Amendment No. 1''). Amendment No. 1 
replaces and supersedes the original filing in its entirety.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(6). The Phlx provided the Commission 
with written notice of its intention to file the proposed rule 
change on January 28, 2004. For purposes of calculating the 60-day 
abrogation period, the Commission considers the period to have begun 
on March 29, 2004, the date of filing of Amendment No. 1.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Phlx proposes to rescind Exchange Rule 713, Statements 
Available to Customers. Proposed deleted text is in brackets.
[Statements Available to Customers]
    [Rule 713. Each member organization shall make available to any 
customer of such organization at his request a statement of its 
financial condition as of the date of its most recent answer to the 
financial questionnaire of the Exchange or as of a date subsequent 
thereto. The financial statement shall fairly present the financial 
condition of such organization.
    As used herein, the term ``customer'' means any person who, in 
accordance with the ordinary usage of the trade, would be considered a 
customer at the time of the request.]

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 rescind Exchange Rule 
713, because it is obsolete.
    Currently, Rule 713 provides that each member organization shall 
make available to any customer of such organization at his request a 
statement of its financial condition as of the date of its most recent 
answer to the financial questionnaire of the Exchange or as of a date 
subsequent thereto. The Exchange no longer utilizes the financial 
questionnaire referred to in Rule 713. Those member organizations that 
are required to provide annual audited financial statements currently 
do so pursuant to Rule 17a-5(c)\6\ under the Act, rather than Rule 713.
---------------------------------------------------------------------------

    \6\ Amendment No. 1 contained a typographical error: Rule 17a-
5(d) was referenced instead of Rule 17a-5(c). As a result of a 
telephone conversation between Commission staff and Mark I. 
Salvacion on April 1, 2004, Commission staff corrected the error 
without requiring that an amendment be filed.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \8\ in particular, in that it is intended to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system and in general it is intended to protect 
investors and the public interest by eliminating obsolete and outdated 
rules applicable to exchange member firms.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange 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

    The foregoing proposed rule change has become effective pursuant to 
Section 19(b)(3)(A) of the Exchange Act \9\ and Rule 19b-4(f)(6) 
thereunder \10\ because the proposed rule change (1) does not 
significantly affect the protection of investors or the public 
interest, (2) does not impose any significant burden on competition, 
and (3) does not become operative for 30 days after the date of filing, 
or such shorter time as the Commission may designate if consistent with 
the protection of investors and the public interest, provided that the 
Phlx has given the Commission written notice of its intent to file the 
proposed rule change at least five business days prior to the filing 
date of the proposed rule change.\11\ At any time within 60 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 the furtherance of the 
purposes of the Act.\12\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ As required under Rule 19b-4(f)(6)(iii), the Phlx provided 
the Commission with written notice of its intent to file the 
proposed rule change at least five business days prior to the filing 
date, on January 28, 2004.
    \12\ 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing,

[[Page 18414]]

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-Phlx-2004-03. 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 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-2004-03 and should be submitted by April 28, 2004.
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-7856 Filed 4-6-04; 8:45 am]
BILLING CODE 8010-01-P