[Federal Register: May 8, 1998 (Volume 63, Number 89)] [Notices] [Page 25538] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr08my98-102] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-39948; File No. SR-SCCP-98-02] Self-Regulatory Organizations; Stock Clearing Corporation of Philadelphia; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Reducing Certain Trade Recording Fees May 4, 1998. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ notice is hereby given that on April 23, 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). --------------------------------------------------------------------------- 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 two months through June 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 propose of a statutory basis for the proposed rule change. The text of these statements may be examined at 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\ --------------------------------------------------------------------------- \2\ The Commission has modified parts of these statements. --------------------------------------------------------------------------- (A) Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change SCCP proposes to extend, for a two 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\ --------------------------------------------------------------------------- \3\ Securities Exchange Act Release No. 39630 (February 17, 1998), 63 FR 7848. --------------------------------------------------------------------------- Prior to the approval and implementation of the pilot program, SCCP charged a trade recording fee of $.47 per side for regular trades. The proposed 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.\4\ The trade recording fees for trades not matching with PACE orders remains $.47 per side. The proposed 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 (a reduction of $.20 per trade) and (ii) $.10 per side for trades in excess of 2,500 per month (a reduction of $.37 per trade). --------------------------------------------------------------------------- \4\ PACE, an acronym for the Philadelphia Stock Exchange Automated Communication and Execution System, is a real time order routing and execution system. --------------------------------------------------------------------------- SCCP has been working closely with the Philadelphia Stock Exchange, Inc. (``PHLX'') 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 June 30, 1998. SCCP believes that the proposed rule change is consistent with Section 17A(b)(3)(D) of the Act,\5\ 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. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78q-1(b)(3)(D). --------------------------------------------------------------------------- (B) Self-Regulatory Organization's Statement on Burden on Competition SCCP does not believe that the proposed rule change will impact or impose a 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 \6\ and Rule 19b-4(e)(2) thereunder.\7\ 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. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78s(b)(3)(A)(ii). \7\ 17 CFR 240.19b-4(e)(2). --------------------------------------------------------------------------- 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, N.W., Washington, D.C. 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, N.W., Washington, D.C. 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-98-02 and should be submitted by May 29, 1998. For the Commission by the Division of Market Regulation, pursuant to delegated authority.\8\ --------------------------------------------------------------------------- \8\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Jonathan G. Katz, Secretary. [FR Doc. 98-12262 Filed 5-7-98; 8:45 am] BILLING CODE 8010-01-M