[Federal Register Volume 69, Number 225 (Tuesday, November 23, 2004)]
[Notices]
[Pages 68206-68207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3298]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50676; File No. SR-Phlx-2004-67]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating To Assessing Index Option Charges for FXI Options

November 16, 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 October 19, 2004, the Philadelphia Stock Exchange, Inc. (``Phlx'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Phlx. On November 16, 
2004, the Exchange filed Amendment No. 1 to the proposed rule 
change.\3\ 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\ Amendment No. 1 made a minor technical change to the 
proposed Summary of Index Option and FXI Options Charges.
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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 Summary of Index Option Charges fee 
schedule to include options listed on the iShares FTSE/Xinhua China 25 
Index Fund (``FXI Options''),\4\ an exchange-traded fund (``ETF''). 
Specifically, the Exchange proposes to charge transactions involving 
FXI Options according to the Exchange's

[[Page 68207]]

Summary of Index Option Charges, as opposed to the fees set forth in 
the Exchange's Summary of Equity Option Charges.
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    \4\ The Exchange started listing and trading FXI Options, a 
product that is an equity option, on October 19, 2004.
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    The Exchange also proposes to delete references on its fee schedule 
to the Specialist Unit Fixed Monthly Fee (``fixed monthly fee''), as 
that fee is no longer in effect.\5\
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    \5\ The fixed monthly fee was in effect for transactions 
settling through August 31, 2004. See Securities Exchange Act 
Release Nos. 49467 (March 24, 2004), 69 FR 17017 (March 31, 2004) 
(SR-Phlx-2004-17); 49693 (May 12, 2004), 69 FR 28974 (May 19, 2004) 
(SR-Phlx-2004-30); and 50229 (August 23, 2004), 69 FR 52953 (August 
30, 2004) (SR-Phlx-2004-42).
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    The proposal to include the FXI options in the Exchange's Summary 
of Index Options is effective for transactions settling on or after 
October 19, 2004.
    The text of the proposed rule change, including the Exchange's 
Summary of Equity Option Charges, Summary of Index Option Charges, and 
fixed monthly fee schedule is available at the Phlx and at the 
Commission.

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 charge for the FXI 
Options in the same manner that the Exchange charges for index options. 
The Exchange believes that charging for FXI Options according to the 
rates set forth in the Exchange's Summary of Index Option Charges is 
reasonable for these types of products because the higher charges 
should help defray some of the license fees incurred by the Exchange in 
connection with the listing and trading of FXI Options.
    The purpose of the proposed rule change as it relates to deleting 
references to the fixed monthly fee is to update the Exchange's fee 
schedule to accurately reflect the fees currently charged by the 
Exchange.
2. Statutory Basis
    The Exchange believes that its proposal to amend its schedule of 
dues, fees and charges is consistent with section 6(b) of the Act \6\ 
in general, and furthers the objectives of section 6(b)(4) of the Act 
\7\ in particular, in that it provides for an equitable allocation of 
reasonable dues, fees, and other charges among Exchange members.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 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 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 proposed rule change has been designated as a fee change 
pursuant to section 19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-4(f)(2) 
thereunder.\9\ Accordingly, the proposal has become effective upon 
filing with the Commission. 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 furtherance of the purposes of the Act.\10\
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    \8\ 15 U.S.C. 78(s)(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
    \10\ For purposes of calculating the 60-day abrogation period, 
the Commission considers the proposal to have been filed on November 
15, 2004, the date the Phlx filed Amendment No. 1.
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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. Comments may be 
submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-Phlx-2004-67 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-Phlx-2004-67. 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, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 the 
filing also will be available for inspection and copying at the 
principal office of the Phlx.
    All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You 
should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-Phlx-2004-67 
and should be submitted on or before December 14, 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. E4-3298 Filed 11-22-04; 8:45 am]
BILLING CODE 8010-01-P