[Federal Register Volume 63, Number 31 (Tuesday, February 17, 1998)]
[Notices]
[Page 7848]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-3856]
[[Page 7848]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39630; File No. SR-SCCP-97-05]
Self-Regulatory Organizations; Stock Clearing Corporation of
Philadelphia; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Reducing Certain Trade Record Fees
February 9, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 22, 1997, the
Stock Clearing Corporation of Philadelphia (``SCCP'') filed with the
Securities and Exchange Commission (``Commission'') and on January 13,
1998, amended the proposed rule change as described in Items I, II, and
III below, which items have been prepared primarily by SCCP. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested parties.
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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 purpose of the proposed rule change is to reduce on a pilot
basis for four months SCCP's fee schedule for trade recording fees for
certain specialists.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
In its filing with the Commission, SCCP included statements
concerning the purpose of and statutory basis for the proposed rule
change. The text of these statements may be examined at the places
specified in Item IV below. SCCP has prepared summaries, set forth in
sections (A), (B), and (C) below, of the most significant aspects of
such statements.\2\
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\2\ The Commission has modified parts of these statements.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
Curently, SCCP charges a trade recording fee of $.47 per side for
regular trades. The proposed rule change bifurcates the category of
trade recording fees for regular trades into trades not matching with
PACE orders and trades matching with PACE orders.\3\ The trade
recording fees for trades not matching with PACE orders remains $.47
per side. The proposed rule change reduces SCCP's trade recording fees
for trades matching with PACE orders. For the trades, the trade
recording fee is reduced to: (i) $.27 per side for the first 2,500
trades per month (a reduction of $.20 per trade) and (ii) $.10 per side
for trades in excess of 2,500 per month (a reduction of $.37 per
trade).
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\3\ PACE, an acronym for the Philadelphia Stock Exchange
Automated Communication and Execution System, is a real time order
routing and execution system.
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SCCP has been working closely with the Philadelphia Stock Exchange,
Inc. (``PHLX'') to reevaluate its fees. In connection with this effort,
SCCP is reducing these trade recording fees on a temporary basis. These
fees will be in effect for trades settling on January 2, 1998, through
April 30, 1998.
SCCP believes that the proposed rule change is consistent with
Section 17A(b)(3)(D) of the Act,\4\ which requires that the rules of a
registered clearing agency provide for equitable allocation of
reasonable dues, fees, and other charges for services which it provides
to its participants.
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\4\ 15 U.S.C. 78q-1(b)(3)(D).
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(B) Self-Regulatory Organization's Statement on Burden on
CompetitionSCCP does not believe that the proposed rule change will
impact or impose a 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 have been solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change establishes or changes a due,
fee, or other charge imposed by SCCP, it has become effective pursuant
to Section 19(b)(3)(A)(ii) of the Act \5\ and Rule 19b-4(e)(2)
thereunder.\6\ At any time within sixty 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.
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\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 17 CFR 240.19b-4(e)(2).
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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, 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 in the
Commission's Public Reference Section, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Copies of such filing will also be available
for inspection and copying at SCCP. All submission should refer to the
File No. SR-SCCP-97-05 and should be submitted by March 10, 1998.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-3856 Filed 2-13-98; 8:45 am]
BILLING CODE 8010-01-M
