[Federal Register Volume 62, Number 225 (Friday, November 21, 1997)]
[Notices]
[Pages 62395-62396]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30624]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39325; File No. SR-PHLX-97-58]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Philadelphia Stock
Exchange, Inc., Relating to a Revision to the Exchange's Equity Floor
Brokerage Assessment Fee
November 13, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on November 5, 1997, 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. 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).
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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 under the Act, proposes to amend
the Exchange's Equity Floor Brokerage Assessment schedule which
currently determines the rate of the assessment on a member's monthly
equity floor brokerage based upon whether the member is a specialist
with funds on deposit at the Stock Clearing Corporation of Philadelphia
(SCCP) or not. The Exchange hereby proposes to change the fee to a flat
rate of 1.25% of the amount that any member bills out in floor
brokerage on the Phlx Equity floor each month. The schedule will be
amended as follows (brackets indicate deletions, italics indicates
additions):
Summary of Equity Charges
EQUITY FLOOR BROKERAGE ASSESSMENT
[5%] 1.25% of net floor brokerage income [with specialist credits]
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
Currently, the Exchange assesses a monthly fee on the amount of
money a floor broker bills to its customers each month for floor
brokerage services with respect to equity securities. The rate used to
calculate the fee is either 5% if the member only conducts business as
a floor broker, or is discounted to 1.25% if the member also conducts
business as an equity specialist with funds on deposit at SCCP. When
this fee was originally adopted in 1974, the Exchange intended to
encourage members who conducted business on the equity floor as floor
brokers to also become specialists and open an account at SCCP. In
recent years, the Exchange has observed that almost all floor brokers
on the Equity floor were also specialists, thereby taking advantage of
the lower rate. The Exchange has now decided that the fee should be
determined solely by the amount of business a floor broker conducts.
Accordingly, the Exchange is proposing to redesignate the fee as 1.25%
of a member's floor brokerage on the Exchange Equity floor.
2. Statutory Basis
The Exchange represents that the proposed rule change is consistent
with Section 6(b) of the Act,\2\ in general, and furthers the
objectives of Section 6(b)(4) \3\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among the Exchange's members and other persons using its
facilities.
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\2\ 15 U.S.C. 78f(b).
\3\ 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
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 establishes 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 \4\ and
subparagraph (e)(2) of Rule 19b-4 thereunder.\5\
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\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(e)(2).
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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.
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
[[Page 62396]]
Secretary, Securities and Exchange Commission, 450 Fifth Street, N.W.,
Washington, D.C. 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. 552, will be
available for inspection and copying at the Commission's Public
Reference Room. 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-97-58 and should be
submitted by December 12, 1997.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-30624 Filed 11-20-97; 8:45 am]
BILLING CODE 8010-01-M
