[Federal Register Volume 59, Number 173 (Thursday, September 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22126]
[[Page Unknown]]
[Federal Register: September 8, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34620; File No. SR-PHLX-94-39]
Self-Regulatory Organizations; the Philadelphia Stock Exchange,
Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change Amending the PHLX's Schedule of Fees and Charges Respecting Fees
and Charges for the Transaction of Business on Its Option Floor
August 31, 1994.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on July 29, 1994, the
Philadelphia Stock Exchange, Inc. (the ``PHLX'' or the ``Exchange'')
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 the PHLX. 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) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The PHLX proposes to amend its Schedule of Fees and Charges
respecting options transactions charges for the transaction of business
on its options floor. Specifically, proprietary transactions of non-
Options Clearing Corporation (``OCC'') member firms (``non-clearing
firm member'') will be eligible for a rebate to reduce their option
transaction charges for equity, sectors index, and value line options
from the customer execution rate to the firm rate. This reduction will
be $.09 or $.24/per contract (for equity options), $.10 or $.30/per
contract (for sectors index options), and $.09 or $.29/per contract
(for value line options), depending upon the market value of the
contract given to OCC members.\2\
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\2\Customer transactions are billed at two rates. A higher rate
is charged for contracts that are over $1.00 in market value. The
same ``firm'' rate is charged for all member proprietary
transactions.
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the 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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the proposed rule change is to amend the Exchange's
Schedule of Fees and Charges for the transaction of business on its
option floor, specifically the options transaction charge for equity,
value line, and sectors index options. Effective at the opening of
business on Monday, August 1, 1994, the PHLX adopted an amended options
transaction charge schedule to allow non-clearing firm members
conducting business for their proprietary account to receive the same
``firm'' rate given to OCC members. Due to the limitations of OCC's
clearance and settlement date entry coding format, non-clearing firm
members' proprietary transactions will continue to be invoiced by the
PHLX at customer rates. The Exchange instead will provide the reduction
to non-clearing firm members in the form of a rebate. To obtain the
rebate, the non-clearing firm member is required to submit a PHLX
rebate request form with supporting documentation within thirty days of
the invoice date. The purpose of these amended charges is to promote
and encourage additional market participation by non-clearing firm
members in these products at the PHLX.
The PHLX believes that the proposed rule change is consistent with
Section 6(b)(4) of the Act in that it provides for the equitable
allocation of reasonable dues, fees, and charges among the PHLX members
and other persons using the PHLX facilities.\3\
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\3\15 U.S.C. 78f(b)(4) (1988).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The PHLX does not believe that the proposed rule change imposes any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act.
C. Self-Regulatory Organization's Statement of Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Comments on the proposed rule change have not been solicited or
received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act and subparagraph (e)(2) of Rule 19b-4 under
the Act in that the proposed rule change establishes or changes a due,
fee, or other charge imposed by the Exchange. At any time within sixty
days of the filing of such 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.
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, 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. Sec. 552, will be available for inspection and copying in
the Commission's Public Reference Section, 450 Fifth Street, N.W.,
Washington, DC 20549. Copies of such filing will also be available for
inspection and copying at the principal office of the PHLX. All
submissions should refer to file number SR-PHLX-94-39 and should be
submitted by September 29, 1994.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\4\
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\4\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-22126 Filed 9-7-94; 8:45 am]
BILLING CODE 8010-01-M
