[Federal Register: June 4, 2003 (Volume 68, Number 107)]
[Notices]
[Page 33559-33560]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04jn03-140]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-47923; File No. SR-SCCP-2003-02]
Self-Regulatory Organizations; Stock Clearing Corporation of
Philadelphia; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to Fees for Processing Transactions in
DIAMONDS[reg] Exchange Traded Funds
May 23, 2003.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on March 24, 2003, 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).
---------------------------------------------------------------------------
[[Page 33560]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change amends SCCP's schedule of dues, fees, and
charges to adopt fees for the processing of participant transactions in
DIAMONDS[reg] Exchange Traded Funds (``DIAMONDS[reg]'').
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 purpose of and 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
The proposed rule change provides for SCCP fees that will apply to
trading of DIAMONDS[reg]. The proposed rule change amends SCCP's fee
schedule to adopt: (1) a non-specialist charge of $0.30 per trade side
for non-PACE executions with no charge for PACE executions and (2) a
specialist charge of $0.50 per trade for the first 1,000 trades and
$0.25 per trade for all subsequent trades with no further volume
discounts.\3\ No other SCCP transaction fees will apply to trades in
DIAMONDS[reg]. This proposal is scheduled to become effective for
transactions upon the implementation of trading in DIAMONDS[reg].
---------------------------------------------------------------------------
\3\ This is the same fee schedule that is currently in effect
for the processing of Units of Beneficial Interest in the Nasdaq 100
Trust, Series 1, traded under the symbol and widely known as QQQ and
Standard & Poor's Depositary Receipts''. See Securities Exchange Act
Release No. 44218 (April 25, 2001), 66 FR 21803 (May 1, 2001) (SR-
SCCP-00-06) and SR-SCCP-2003-01.
---------------------------------------------------------------------------
SCCP believes that these competitively priced fees should encourage
trading of DIAMONDS[reg], which should provide market participants with
a more affordable market for the trading of this product. SCCP further
believes that a more affordable, competitive market for trading should
attract more order flow in the DIAMONDS[reg] to the Philadelphia Stock
Exchange, Inc., which should, in turn, further increase liquidity of
DIAMONDS[reg] and create a tighter, more liquid market. Increased
market competition should both benefit investors and protect the public
interest in general.
SCCP believes that the proposed rule change is consistent with
17A(b)(3)(D) of the Act \4\ 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 because the fee structure proposed herein applies
to all participants that would be trading the DIAMONDS[reg].
---------------------------------------------------------------------------
\4\ 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 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 SCCP, it has become effective pursuant
to section 19(b)(3)(A)(ii) of the Act \5\ and Rule 19b-4(f)(2)
thereunder.\6\ 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 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.
Comments may also be submitted electronically at the following e-mail
address: rule-comments@sec.gov. All comment letters should refer to
File No. SR-SCCP-2003-02. This file number should be included on the
subject line if e-mail is used. To help us process and review comments
more efficiently, comments should be sent in hardcopy or by e-mail but
not by both methods. 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, NW, Washington, DC 20549. Copies
of such filing also will be available for inspection and copying at the
principal office of SCCP.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 03-13940 Filed 6-3-03; 8:45 am]
BILLING CODE 8010-01-P