[Federal Register Volume 69, Number 242 (Friday, December 17, 2004)]
[Notices]
[Page 75584]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3708]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50832; File No. SR-Phlx-2004-62]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Order Granting Approval to Proposed Rule Change To Waive the Options 
Specialist Shortfall Fee for One Specialist Unit That Did Not Have a 
Specialized Quote Feed in Place

December 9, 2004.
    On September 23, 2004, the Philadelphia Stock Exchange, Inc. 
(``Phlx'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission''), pursuant to section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to waive the options specialist 
shortfall fee for the period May 2004 through August 2004 for one 
specialist unit that did not have a specialized quoted feed in place 
that could price an option accurately for any option where the primary 
volume in the underlying security shifted to another market. The 
proposed rule change was published for comment in the Federal Register 
on November 1, 2004.\3\ The Commission received no comments on the 
proposal. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 50591 (October 26, 
2004), 69 FR 63427.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \4\ and, in 
particular, the requirements of section 6 of the Act \5\ and the rules 
and regulations thereunder. The Commission finds specifically that the 
proposed rule change is consistent with section 6(b)(4) of the Act,\6\ 
which requires that the rules of the exchange provide for the equitable 
allocation of reasonable dues, fees, and other charges among its 
members and issuers and other persons using its facilities. The 
Commission believes that failure to grant the proposed waiver would 
result in an inequitable application of the Exchange's options 
specialist shortfall fee for one particular specialist that, because of 
a unique situation, did not have a specialized quote feed in place for 
the period from May 1, 2004 through August 31, 2004. The Commission's 
decision to approve this waiver from the Phlx specialist shortfall fee 
is limited in scope to this particular specialist at this time.\7\
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    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4).
    \7\ The waiver of the options specialist shortfall fee in this 
instance is fact-specific. Future requests for similar waivers, 
should any arise, must be filed for notice and comment pursuant to 
Section 19(b) of the Act. 15 U.S.C. 78s(b). See also, March 27, 2003 
letter from Annette L. Nazareth, Director, Division of Market 
Regulation, Commission, to T. Grant Callery, Executive Vice 
President and General Counsel, National Association of Securities 
Dealers.
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    It is therefore ordered, pursuant to section 19(b)(2) of the Act 
\8\, that the proposed rule change (SR-Phlx-2004-62) be, and it hereby 
is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E4-3708 Filed 12-16-04; 8:45 am]
BILLING CODE 8010-01-P