[Federal Register Volume 64, Number 155 (Thursday, August 12, 1999)]
[Notices]
[Pages 44073-44074]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20850]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41711; File No. SR-PHLX-99-24]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Philadelphia Stock
Exchange, Inc. Relating to the Establishment of a Fee to Members for
Receiving On-line Options Information
August 5, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder, \2\ notice is hereby given
that on June 29, 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. 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).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Phlx proposes to adopt a real-time, trade information fee of
$.0025 per trade for members receiving option trade information on-line
(i.e., electronically) from the Exchange, beginning on July 1, 1999.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with Commission, the 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. The Phlx has prepared summaries, set forth in Sections
A, B, and C below, of the most significant aspects of such statements.
[[Page 44074]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Recently, the Exchange implemented an automation enhancement to the
options floor that provides option trade information on-line (i.e.
electronically) on a real-time basis. Members can now choose to connect
and log on to an interface to the options risk management system to
receive options (equity and index options) transaction information
real-time. Specifically, once transaction information is in the AUTOM
System, \3\ it becomes available to members such as clearing firms, who
may connect to the feature; clearing firms may determine to offer such
information to floor traders electronically, but the Exchange is not
proposing to do so at this time. The transaction information covered by
this feature includes the type of information generally captured in
Exchange systems as a trade.\4\ Currently, such information is made
available to members in hard-copy (paper ticket) form, which can be
confirmed against floor trader positions. The Exchange has created this
new electronic link to facilitate electronic position monitoring for
options. The feature is voluntary and does not replace the current
hard-copy printing of transaction information. Members choosing to log
on to the feature will be charged $.0025 per trade.\5\
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\3\ AUTOM is the Phlx Automatic Options Market System. See Phlx
Rule 1080.
\4\ This information includes the symbol, volume, price, time
and clearing information of the traded security. Telephone
conversation between Nandita Yagnik, Council, Phlx, and Heather
Traeger, Attorney, Division of Market Regulation (``Division''),
SEC, on July 16, 1999.
\5\ The Exchange chose to charge a user fee rather than a flat
fee to encourage more firms, including small firms, to use the
feature because it is an important risk management tool. Telephone
conversation between Nandita Yagnik, Council, Phlx, and Heather
Traeger, Attorney, Division, SEC, on July 19, 1999.
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b)(4) of the Act \6\ in that it provides for the equitable
allocation of reasonable dues, fees and other charges among its members
and other persons using its facilities.
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\6\ 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 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 \7\ and subparagraph (f)(2) of Rule
19b-4 thereunder.\8\ The Exchange implemented the fee on July 1, 1999.
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.
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(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 20549-0609.
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-99-24 and should
be submitted by September 2, 1999.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 240.30-2(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-20850 Filed 8-11-99; 8:45 am]
BILLING CODE 8010-01-M
