[Federal Register Volume 59, Number 114 (Wednesday, June 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14531]
[[Page Unknown]]
[Federal Register: June 15, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34180; File No. SR-PHLX-94-27]
Self-Regulatory Organizations; Filing and Immediate Effectiveness
of Proposed Rule Change by the Philadelphia Stock Exchange, Inc.,
Relating to Revised Index Option Transaction Value Charges
June 8, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on May 25,
1994, the Philadelphia Stock Exchange, Inc. (``PHLX'') or ``Exchange'')
filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the self-regulatory
organization. The Commission in publishing this notice to solicit
comments on the proposed rule change from interested persons.
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
Currently, the option transaction value charge for customer orders
with options premiums of less than $1.00 is $.15 per contract and $.30
per contract for customer orders with premium values of $1.00 or more.
The option transaction value charge for firms is $.06 per contract. The
PHLX proposes to amend its schedule of dues, fees, and charges for
options transactions to provide the following index option transaction
value charges: $.20 per contract for customer orders with premium
values of less than $1.00; $.40 per contract for customer orders with
premium values of $1.00 or more; and $.10 per contract for firms. The
revised index option transaction value charges do not apply to Value
Line Index (``VLE'') options.
The text of the proposed rule change is available at the Office of
the Secretary, PHLX, and at the Commission.
II. Self-Regulatory Organizations: 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 it 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
The PHLX proposed to amend its schedule of dues, fees and charges
for the transaction of business on the PHLX's options floor,
specifically the index option transaction value charge. Effective at
the opening of business on Tuesday, May 31, 1994, the PHLX proposes to
adopt the following index option transaction value charges; $.20 per
contract for customer orders with premium market values of less than
$1.00; $.40 per contract for customer orders with premium market values
of $1.00 or more; and $.10 per contract for firms. The revised schedule
does not apply to VLE options.
The PHLX states that the revised index option transaction value
charges are more reflective of the PHLX's cost of conducting business,
including the support of the computation and dissemination of
respective index values to market participants. The PHLX states that
the proposal presents a fee structure designed to be more reflective of
the actual cost of supporting the index options traded on the PHLX. In
addition, the PHLX states that the revised index option transaction
value charges are competitive with the rates charged by the other
options market centers and substantially correspond to the existing
charges for PHLX VLE options.
The PHLX believes that the proposal is consistent with Section 6(b)
of the Act, in general, and, in particular, with Section 6(B)(4), in
that it provides for the equitable allocation of reasonable dues, fees
and other charges among its members and other persons using the
Exchange's facilities.
(B) Self-Regulatory Organization's Statement on Burden on Competition
The PHLX 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
Because the foregoing rule change establishes or changes a due, fee
or other charge imposed by the Exchange, it 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 Section, 450 Fifth Street, NW.,
Washington, DC. Copies of such filing will also be available for
inspection and copying at the principal office of the above-mentioned
self-regulatory organization. All submissions should refer to the file
number in the caption above and should be submitted by July 6, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\1\
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\1\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-14531 Filed 6-14-94; 8:45 am]
BILLING CODE 8010-01-M