[Federal Register Volume 60, Number 198 (Friday, October 13, 1995)]
[Notices]
[Pages 53449-53451]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25445]
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[[Page 53450]]
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36348; File No. SR-Phlx-95-59]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Philadelphia Stock
Exchange, Inc. Regarding Registered Representative Fees
October 6, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on September 14, 1995 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 self-regulatory organization. On
October 3, 1995, the Exchange submitted Amendment No. 1 to the proposed
rule change.\2\ The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
\1\ 15 U.S.C. 78s(b)(1).
\2\ See Letter from Edith Hallahan, Special Counsel, Regulatory
Service, Phlx, to Glen Barrentine, Team Leader, Division of Market
Regulation, SEC, dated October 3, 1995. In Amendment No. 1, the
Exchange submitted Exhibit B, which was not included with the
original filing. Exhibit B sets forth the text of the proposed rule
change.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Phlx, pursuant to Rule 19b-4 of the Act, is increasing its
registration fee for Registered Representatives (``RR'') associated
with a member or member organization. Specifically, the Exchange will
increase the $8.00 fee for all new RR registrants to $10.00. The $8.00
annual maintenance fee also will increase to $10.00 for each RR.
Lastly, the $8.00 fee for transfers of RR registrations will increase
to $10.00. This increase will not become effective until January 1,
1996, such that any new registration in 1995 would continue to be
subject to the $8.00 fee, and any maintenance fees paid in 1995 will
not be charged the difference.
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 self-regulatory organization
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 self-regulatory organization
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 Phlx is increasing its fee for the new registration,
maintenance and transfer of RR registration with the Exchange from
$8.00 to $10.00. This fee, which was adopted in 1993,\3\ was intended
to offset Exchange regulatory costs based on the number of
registrations maintained by member organizations. In adopting the fee,
the Exchange cited the increasing costs associated with the maintenance
of a fair and orderly market in Exchange products due to increased
trading volume and the resultant need for enhanced automated
surveillance capabilities in an increasingly sophisticated trading
environment.\4\ The Exchange also cited an increase in the number of
listed products traded by the Exchange as ``primary issues,'' the
number of trading vehicles with new features, and the number of
surveillance investigations conducted, including the resultant
disciplinary actions.\5\
\3\ See Securities Exchange Act Release No. 32883 (September 14,
1993), 58 FR 48922 (September 20, 1993) (approving File No. SR-Phlx-
93-24).
\4\ See Securities Exchange Act Release No. 32692 (July 29,
1993), 58 FR 41535 (August 4, 1993) (Notice of Filing of File No.
SR-Phlx-93-24).
\5\ Id.
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The Exchange continues to believe that a strong regulatory program
is essential to an exchange's ability to maintain a fair and orderly
market for the investment community. Since the adoption of the RR fees,
the Exchange has listed additional primary issues and new products,
triggering additional regulatory costs. The continued automation
efforts respecting surveillance functions must also be enhanced as well
as updated to include additional issues; increased costs reflective of
more sophisticated surveillance technologies are necessary to surveil a
more technologically sophisticated market.
Most notably, the Exchange notes that general costs associated with
its regulatory program continue to rise. Inflationary increases have
affected the cost of staffing, equipment, technology and other
continuing expenses, which have risen since the current fee was
proposed in June 1993.
2. Statutory Basis
The proposed registration fee increase is consistent with Section
6(b)(4) of the Act \6\ in that it provides for the equitable allocation
of reasonable dues, fees, and other charges among the Exchange's
members and issuers and other persons using its facilities. The
Exchange notes that the American Stock Exchange, Chicago Board Options
Exchange, New York Stock Exchange, National Association of Securities
Dealers, and Pacific Stock Exchange also have implemented similar
fees.\7\ The Exchange believes that a fee increase from $8.00 to $10.00
is reasonable in light of increasing regulatory costs.
\6\ 15 U.S.C. 78f(b)(4).
\7\ See Securities Exchange Act Release Nos. 33456 (January 11,
1994), 59 FR 2886 (January 19, 1994) (Notice of Filing and Immediate
Effectiveness of File No. SR-AMEX-93-44); 36119 (August 18, 1995),
60 FR 44372 (August 25, 1995) (Notice of Filing and Immediate
Effectiveness of File No. SR-CBOE-95-31); 35796 (June 1, 1995), 60
FR 30625 (June 9, 1995) (Notice of Filing and Immediate
Effectiveness of File No. SR-NYSE-95-20); 32342 (May 20, 1993), 58
FR 30208 (May 26, 1993) (File No. SR-NASD-93-33); and 31425
(November 9, 1992), 57 FR 54271 (November 17, 1992) (Notice of
Filing and Immediate Effectiveness of File No. SR-PSE-92-31).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change constitutes or changes a due, fee, or
other charge imposed by the Exchange and, therefore, has become
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and
subparagraph (e) of Rule 19b-4 thereunder.\9\
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4.
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At any time within sixty days of the filing of such 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.
[[Page 53451]]
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549.
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. Sec. 552, will be available for inspection and copying at
the Commission's Public Reference Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such filing also will be available for
inspection and copying at the principal office of the Phlx. All
submissions should refer to File No. SR-Phlx-95-59 and should be
submitted by November 3, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
\10\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 95-25445 Filed 10-12-95; 8:45 am]
BILLING CODE 8010-01-M
