[Federal Register Volume 70, Number 20 (Tuesday, February 1, 2005)]
[Notices]
[Pages 5263-5264]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-367]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51080; File No. SR-Phlx-2004-51]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Order Granting Approval to Proposed Rule Change and Amendment No. 1 
Thereto Relating to Phlx Regulation 5, Visitors and Applicants

January 26, 2005.
    On October 7, 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 update Phlx Regulation 5, Visitors and 
Applicants, enacted as a rule of order and decorum under Phlx Rule 60. 
On December 6, 2004, Phlx filed Amendment No. 1 to the proposed rule 
change.\3\ The proposed rule change, as amended, was published for 
comment in the Federal Register on December 22, 2004.\4\ The Commission 
received no comments on the proposal.
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    \1\ 5 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 replaced the original filing in its 
entirety. Amendment No. 1 clarified that violations of Regulation 5 
would be enforced against members and not the guests themselves, and 
added a description for the Applicant Access Card.
    \4\ See Securities Exchange Act Release No. 50851 (December 14, 
2004), 69 FR 76816.
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    Phlx is amending its Phlx Regulation 5 to more accurately reflect 
its current practices. The Exchange amended Phlx Regulation 5 in 1992 
to create an ``applicant'' status for prospective Exchange members.\5\ 
A person who fell into the applicant category was issued an Applicant 
Access Card and Floor Badge that would allow for unescorted floor 
access until the application process was complete. Phlx no longer 
issues such Applicant Access Cards and Floor Badges to applicants, but 
instead requires applicants to register as on-floor trading personnel 
pursuant to Phlx Rule 620(b), Trading Floor Registration. Applicants 
are now issued the same access cards as are issued to Phlx members, and 
their access to the floor is governed by Phlx Rule 620(b), rather than 
Regulation 5. Phlx proposes to return Regulation 5 to its pre-1992 
wording, which governs only guest access to the floor. Phlx members who 
do not adhere to the procedures set forth in Regulation 5 would be 
subject to sanction.
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    \5\ See Securities Exchange Act Release No. 30416 (February 26, 
1992), 57 FR 7836 (March 4, 1992) (approving File No. SR-Phlx-91-
06).
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    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange.\6\ 
In particular, the Commission believes that the proposal is consistent 
with Section 6(b)(5) of the Act \7\ because ensuring that unauthorized 
persons do not have improper access to the Exchange floor is consistent 
with the protection of investors and the public interest.
    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
\8\ that the proposed rule change (File No. SR-Phlx-2004-51), as 
amended, be, and it hereby is, approved.
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    \6\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ 15 U.S.C. 78s(b)(2).


[[Page 5264]]


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    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. E5-367 Filed 1-31-05; 8:45 am]
BILLING CODE 8010-01-P