[Federal Register Volume 70, Number 49 (Tuesday, March 15, 2005)]
[Notices]
[Pages 12770-12771]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1100]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51333; File No. SR-Phlx-2005-15]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Eliminating Its Floor Brokerage Transaction Fee

March 8, 2005.
    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 28, 2005, 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 Exchange. The proposed 
rule change has been filed by the Phlx as establishing or changing a 
due, fee, or other charge, pursuant to Section 19(b)(3)(A)(ii) of the 
Act \3\ and Rule 19b-4(f)(2) \4\ 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 from 
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \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 fees to eliminate the 
$.05 per contract Floor Brokerage Transaction Fee from the Exchange's 
Summary of Equity Option Charges and the Summary of Index Option and 
FXI Options Charges, effective for

[[Page 12771]]

transactions settling on or after March 1, 2005.
    The Exchange is also proposing to make minor technical changes to 
correct two footnote numbers that appear on the Exchange's fee 
schedule.\5\
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    \5\ Because the Phlx recently has filed several rule change 
proposals that affect the numbering of footnotes in the fee 
schedule, the Phlx intends to amend File No. SR-Phlx-2005-16 to 
further adjust this numbering. Telephone conversation between 
Cynthia Hoekstra, Counsel, Phlx, and Ira L. Brandriss, Assistant 
Director, Division of Market Regulation, Commission, March 8, 2005.
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    The text of the proposed rule change is available on the Phlx's Web 
site (http://www.phlx.com), at the Phlx's Office of the Secretary, 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 remain competitive in 
connection with the transaction charges assessed by the Exchange. 
Eliminating the $.05 per contract floor brokerage transaction fee will, 
of course, decrease costs for those floor brokers to whom the fee has 
applied. The purpose of changing the numbers of the footnotes that 
appear on page 2 of the Exchange's Summary of Equity Option Charges and 
page 1 of the Exchange's Summary of Index Option and FXI Options 
Charges is to correct a typographical error in connection with the 
numbering of these footnotes.
2. Statutory Basis
    The Exchange believes that its proposal to amend its schedule of 
fees 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 is an equitable allocation of reasonable fees 
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 foregoing proposed rule change has become effective pursuant to 
Section 19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-4(f)(2) \9\ 
thereunder, because it changes a fee imposed by the Exchange. At any 
time within 60 days of the filing of the proposed rule change, as 
amended, 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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    \8\ 15 U.S.C. 78(s)(b)(3)(A)(ii).
    \9\ 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 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-2005-15 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-2005-15. 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-2005-15 and should be submitted on or before April 
5, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
Jill M. Peterson,
Assistant Secretary.
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    \10\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E5-1100 Filed 3-14-05; 8:45 am]
BILLING CODE 8010-01-P