[Federal Register Volume 64, Number 105 (Wednesday, June 2, 1999)]
[Notices]
[Pages 29725-29726]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13866]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41449; File No. SR-PHLX-99-10]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Philadelphia Stock
Exchange, Inc. Relating to Exchange Fees for Trading Floor Members
Participating in the Wireless Telephone System
May 25, 1999.
Pursuant Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is thereby given
that on April 19, 1999, the Philadelphia Stock Exchange, Inc. (``Phlx''
or ``Exchange'') filed with the Securities and Exchange Commission
(``Commission'' or ``SEC'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange.\3\ The Commission is publishing this notice to solicit
comments on the proposed rule change from interest persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1, which proposed a Wireless Telephone System
policy, was submitted on April 19, 1999. The Amendment was replaced
by SR-PHLX-99-14 and subsequently withdrawn on May 18, 1999. See
Letter to Michael Walinskas, Associate Director, Division of Market
Regulation SEC from John Dayton Counsel Phlx, dated May 18, 1999.
See also SR-PHLX-99-14 and SR-PHLX-99-15 relating to the use of
wireless telephones. Securities Exchange Act Release Nos. 41450 (May
25, 1999) and 41451 (May 25, 1999).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
Phlx proposes to amend its schedule of dues, fees and charges to
adopt user fees for all option floor members participating in Phlx's
new wireless telephone system.\4\
---------------------------------------------------------------------------
\4\ Phlx currently intends to make this telephone system
available to the equity and index options floor, not the foreign
currency options floor.
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, 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. 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 this proposed rule change is to amend Phlx's fee
schedule to adopt a wireless telephone system fee applicable to all
option floor members participating in the Ericsson wireless telephone
system offered by Phlx. All options floor members participating in the
wireless telephone system would be assessed a one-time fee of $1,000 to
purchase a handset, headset, battery, charger and clip. In addition,
for each handset purchased, each participant must agree to pay a
monthly charge of $200 for a period of twelve months. The twelve-month
period will commence on the date of the agreement signed by the
participant. At the end of the twelve-month period, a new agreement
will be presented to the participant. Payment of the monthly fees will
be governed by Phlx Rule 50.
Furthermore, a fee for a lost, stolen or damaged headset, handset,
battery charger or clip will be assessed at the current replacement or
repair cost.\5\
---------------------------------------------------------------------------
\5\ Each Participant will be required to sign an agreement that
states that a one-year warranty period does not apply (i) to damage
caused by a subscriber, third parties or force of nature, and (ii)
to any system repaired or altered, except by Ericsson, or subjected
to misuse, negligence or accident. Batteries and accessories are not
covered under the warranty.
---------------------------------------------------------------------------
2. Statutory Basis
Phix believes that the proposed rule change is consistent with
Section 6(b) \6\ of the Act in general and furthers the objectives of
Section 6(b)(4) \7\ in particular, because it provides for the
equitable allocation of reasonable dues, fees, and other charges among
Phlx members using its facilities.\8\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4).
\8\ In reviewing the proposed rule change, the Commission
considered its impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any 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, which establishes or changes a due, fee,
or other charge imposed by the Exchange, has become effective pursuant
to Section 19(b)(3)(A) of the Act \9\ and subparagraph (f)(2) or rule
19b-4 thereunder.\10\ 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609.
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-99-10 and should
be submitted by June 23, 1999.
[[Page 29726]]
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-13866 Filed 6-1-99; 8:45 am]
BILLING CODE 8010-01-M
