[Federal Register Volume 64, Number 39 (Monday, March 1, 1999)]
[Notices]
[Page 10054]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-4957]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41079; File No. SR-Phlx-98-38]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Order Approving Proposed Rule Change Relating to the Assessment of a
Fee on Persons Who Unsuccessfully Contest an Options Ruling Involving a
Trading Dispute
February 22, 1999.
I. Introduction
On August 26, 1998, the Philadelphia Stock Exchange, Inc. (``Phlx''
or ``Exchange'') submitted to 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 assessing a fee on persons who unsuccessfully
contest an options ruling involving a trading dispute. Several
amendments were thereafter received.\3\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ By letter dated August 31, 1998, the Exchange revised the
effective date of its proposal. See letter from Linda S. Christie,
Counsel, Phlx, to Mandy Cohen, Special Counsel, Division of Market
Regulation (``Division''), Commission (``Amendment No. 1''). Next,
the Exchange (a) clarified that the proposed fee would apply to
frivolous appeals of option floor decisions only, and (b) made
conforming changes to Rule 124 and Options Floor Procedure Advice F-
27. See letter from Nandita Yagnik, Attorney, Phlx, to Mandy Cohen,
Special Counsel, Division, Commission, dated November 18, 1998
(``Amendment No. 2''). In its December 9, 1998 letter, the Exchange
clarified that (a) the Options Committee approved the changes made
by Amendment No. 2, and (b) the amendment dated November 18, 1998,
is Amendment No. 2. In addition, the Phlx made minor technical
changes to the rule language. See letter from Nandita Yagnik,
Attorney, Phlx, to Mandy Cohen, Special Counsel, Division,
Commission (``Amendment No. 3''). The Exchange also made technical
changes to its proposed rule language and further clarified that the
proposed rule change amends only Advice F-27 for options and not for
equities. See letter from Nandita Yagnik, Attorney, Phlx, to Mandy
Cohen, Special Counsel, Division, Commission, dated December 23,
1998 (``Amendment No. 4''). In a final amendment, the Exchange made
technical changes to its proposed rule change. See letter from
Nandita Yagnik, Attorney, Phlx, to Mandy Cohen, Special Counsel,
Division, Commission dated January 12, 1999 (``Amendment No. 5'').
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The proposed rule change, as amended by Amendments No. 1 through 4,
was published for comment in the Federal Register on January 22,
1999.\4\ No comments were received on the proposal. This order approves
the approval.
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\4\ Securities Exchange Act Release No. 40936 (January 12,
1999), 64 FR 3581. Since Amendment No. 5 was technical in nature, it
does not require publication for notice and comment.
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II. Description
The Exchange proposes to amend Phlx Rule 124 and Options Floor
Procedure Advice F-27, Floor Official Rulings, to assess a $250.00 fee
on persons who unsuccessfully contest an options ruling imposed under
Phlx Rule 124, upon a finding by a Rule 124(d) review panel that the
appeal is frivolous.
III. Discussion
After careful review the Commission finds that the proposed rule
change, as amended, is consistent with the Act and the rules and
regulations thereunder applicable to a national securities exchange.\5\
Specifically, the Commission believes that the proposal is consistent
with the requirements of section 6(b)(5) of the Act,\6\ because it is
designed to promote just and equitable principles of trade, prevent
fraudulent and manipulative acts and practices and remove impediments
to and perfect the mechanism of a free and open market and a national
market system by discouraging unwarranted appeals that may slow the
appeals process, and allowing swifter access to the appeals process by
bona fide claimants.
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\5\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition and
capital formation. 15 U.S.C. 78c(f).
\6\ 15 U.S.C. 78f(b)(5).
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IV. Conclusion
It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\7\ that the proposed rule change (SR-Phlx-98-38) is approved.
\7\ 15 U.S.C. 78s(b)(2).
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-4957 Filed 2-26-99; 8:45 am]
BILLING CODE 8010-01-M
