[Federal Register Volume 63, Number 145 (Wednesday, July 29, 1998)]
[Notices]
[Pages 40578-40579]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-20189]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40247; File No. SR-SCCP-98-03]
Self-Regulatory Organizations; Stock Clearing Corporation of
Philadelphia; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Reducing Certain Trade Recording Fees
July 22, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on June 30, 1998, the Stock
Clearing Corporation of Philadelphia (``SCCP'') filed with the
Securities and Exchange Commission (``Commission'') 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 extend on a pilot
basis for three months through September 30, 1998, a reduction in
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
[[Page 40579]]
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
SCCP proposes to extend, for a three month period, its pilot
program reducing SCCP's trade recording fees for certain specialists.
On February 9, 1998, the Commission temporarily approved the trade
recording fee reduction effective for trades settling January 2, 1998,
through April 30, 1998.\3\ Subsequently, on May 4, 1998, the Commission
approved an extension of the pilot program through June 30, 1998.\4\
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\3\ Securities Exchange Act Release No. 39630 (February 9,
1998), 63 FR 7848.
\4\ Securities Exchange Act Release No. 39948 (May 4, 1998), 63
FR 25538.
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Prior to the approval and implementation of the pilot program, SCCP
charged a trade recording fee of $.47 per side for regular trades. The
pilot program bifurcates the category of trade recording fees for
regular trades into trades not matching with PACE orders and trades
matching with PACE orders.\5\ The trade recording fees for trades not
matching with PACE orders remains $.47 per side. The pilot program
reduces SCCP's trade recording fees for trades matching with PACE
orders. For these trades, the trade recording fee is reduced to: (i)
$.27 per side for the first 2,500 trades per month and (ii) $.10 per
side for trades in excess of 2,500 per month.
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\5\ 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. to reevaluate its fees. In connection with this effort, SCCP is
proposing to extend the pilot program reducing these trade recording
fees on a temporary basis through September 30, 1998.
SCCP believes that the proposed rule change is consistent with
Section 17A(b)(3)(D) of the Act,\6\ 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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\6\ 15 U.S.C. 78q-1(b)(3)(D).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
SCCP 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
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 \7\ and Rule 19b-4(e)(2)
thereunder.\8\ 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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\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 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, 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.
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, NW.,
Washington, DC 20549. Copies of such filing will also be available for
inspection and copying at SCCP. All submissions should refer to the
File No. SR-SCCP-98-03 and should be submitted by August 19, 1998.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-20189 Filed 7-28-98; 8:45 am]
BILLING CODE 8010-01-M
