[Federal Register Volume 59, Number 82 (Friday, April 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10205]
[[Page Unknown]]
[Federal Register: April 29, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33954; File No. SR-Phlx-94-19]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Philadelphia Stock
Exchange, Inc. Amending its Schedule of Fees and Charges Relating to
Charges on Stock Execution Machines.
April 21, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notices hereby given that on March 29,
1994, 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 self-regulatory
organization. On April 21, 1994, the Phlx submitted to the Commission
Amendment No. 1 to the proposal.\1\ The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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\1\See letter from William W. Uchimoto, Vice President and
General Counsel, Phlx, to Louis A. Randazzo, Attorney, SEC, dated
April 21, 1994. Amendment No. 1 deleted text requiring member firms
to clear trades through the Stock Clearing Corporation of
Philadelphia in order to receive the discount.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Phlx is proposing to amend its Schedule of Fees and Charges
respecting the charges of non-exchange sponsored stock execution
equipment\2\ operated by Phlx members on the Phix floor. The proposed
amendment would provide a 50 percent credit on the fees charged on each
stock execution machine operated by any member firm for each 2,500
trades such member executes on the PHlx in a non-specialist account.
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\2\The Exchange stated that stock execution machines are
terminals that route order flow to other market places. Currently,
the only stock execution machines at the Phlx are Designated Order
Turnaround machines (``DOT'') that route orders to the New York
Stock Exchange (``NYSE'').
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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 self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change and discussed any comments if received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
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
Since 1990, the Exchange has imposed a proprietary stock execution
machine charge of $250.\3\ Effective for the Exchange's April 1994
billing cycle, the Phix shall provide a monthly credit of 50 percent of
the fees charged for each stock execution machine operated by a member
per each 2,500 trades executed by such member of the Phlx. The credit
shall not exceed 50 percent of the total stock execution machine
billing charges per member operating such machine.
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\3\See Securities Exchange Act Release No. 28212 (July 17,
1990), 55 FR 30065 (July 24, 1990).
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Accordingly, a member firm with three stock execution machines,
executing 7,500 trades in a non-specialist account, would be entitled
to a credit of $375.00. In this example, the charges for the stock
execution machines would be $750 ($250 fee multiplied by the 3
machines) minus the credit of $375 (\1/2\ [$250 fee] multiplied by 3
machines. If, however, in the above example the member firm had
operated only two stock execution machines, the credit given would be
$250 because the credit per member would be capped at 50 percent of the
member's total stock execution machine billing charges. Thus, in the
latter case, the total charges would be $250, which equals the total
fees ($500) minus the credit per each machine (2 multiplied by $125).
The purpose of the proposed rule change is to amend the Phlx's
current schedule of fees and charges and to also enhance the Exchange's
equity floor as a highly attractive floor of execution for a member
firm's business.
2. Statutory Basis
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 other charges among its members and other persons using
its facilities.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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 were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change establishes or changes a due, fee or
other charge imposed by the Exchange and therefore has become effective
pursuant to Section 19(b)(3)(A) of the Act and subparagraph (e) of Rule
19b-4 thereunder. At any time within 60 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 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 at the
Commission's Public Reference Room. Copies of the filing will also be
available for inspection and copying at the principal office of the
Phlx. All submissions should refer to File No. SR-Phlx-94-19 and should
be submitted by May 20, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-10205 Filed 4-28-94; 8:45 am]
BILLING CODE 8010-01-M