[Federal Register: June 2, 1999 (Volume 64, Number 105)] [Notices] [Page 29725-29726] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr02jn99-101] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-41449; File No. SR-PHLX-99-10] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Philadelphia Stock Exchange, Inc. Relating to Exchange Fees for Trading Floor Members Participating in the Wireless Telephone System May 25, 1999. Pursuant Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is thereby given that on April 19, 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.\3\ The Commission is publishing this notice to solicit comments on the proposed rule change from interest persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ Amendment No. 1, which proposed a Wireless Telephone System policy, was submitted on April 19, 1999. The Amendment was replaced by SR-PHLX-99-14 and subsequently withdrawn on May 18, 1999. See Letter to Michael Walinskas, Associate Director, Division of Market Regulation SEC from John Dayton Counsel Phlx, dated May 18, 1999. See also SR-PHLX-99-14 and SR-PHLX-99-15 relating to the use of wireless telephones. Securities Exchange Act Release Nos. 41450 (May 25, 1999) and 41451 (May 25, 1999). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Phlx proposes to amend its schedule of dues, fees and charges to adopt user fees for all option floor members participating in Phlx's new wireless telephone system.\4\ --------------------------------------------------------------------------- \4\ Phlx currently intends to make this telephone system available to the equity and index options floor, not the foreign currency options floor. --------------------------------------------------------------------------- II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, 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. 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 1. Purpose The purpose of this proposed rule change is to amend Phlx's fee schedule to adopt a wireless telephone system fee applicable to all option floor members participating in the Ericsson wireless telephone system offered by Phlx. All options floor members participating in the wireless telephone system would be assessed a one-time fee of $1,000 to purchase a handset, headset, battery, charger and clip. In addition, for each handset purchased, each participant must agree to pay a monthly charge of $200 for a period of twelve months. The twelve-month period will commence on the date of the agreement signed by the participant. At the end of the twelve-month period, a new agreement will be presented to the participant. Payment of the monthly fees will be governed by Phlx Rule 50. Furthermore, a fee for a lost, stolen or damaged headset, handset, battery charger or clip will be assessed at the current replacement or repair cost.\5\ --------------------------------------------------------------------------- \5\ Each Participant will be required to sign an agreement that states that a one-year warranty period does not apply (i) to damage caused by a subscriber, third parties or force of nature, and (ii) to any system repaired or altered, except by Ericsson, or subjected to misuse, negligence or accident. Batteries and accessories are not covered under the warranty. --------------------------------------------------------------------------- 2. Statutory Basis Phix believes that the proposed rule change is consistent with Section 6(b) \6\ of the Act in general and furthers the objectives of Section 6(b)(4) \7\ in particular, because it provides for the equitable allocation of reasonable dues, fees, and other charges among Phlx members using its facilities.\8\ --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(4). \8\ In reviewing the proposed rule change, the Commission considered its impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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 \9\ and subparagraph (f)(2) or rule 19b-4 thereunder.\10\ 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A). \10\ 17 CFR 240.19b-4(f)(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, 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-99-10 and should be submitted by June 23, 1999. [[Page 29726]] For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Margaret H. McFarland, Deputy Secretary. [FR Doc. 99-13866 Filed 6-1-99; 8:45 am] BILLING CODE 8010-01-M