Federal Register / Vol. 66, No. 95 / Wednesday, May 16, 2001 / Notices 27193

1 15 U.S.C. 78s(b)(1).

2PACE is the Philadelphia Stock Exchange’s

Automated Communication and Execution System.

It is the Exchange’s order routing, delivery,

execution, and reporting system for its equity

trading floor.

3The Commission has modified parts of these

statements.

4For a detailed listing of the above fees, please

see Exhibit B of this proposed rule change in the

Commission’s Public Reference Section.

5 15 U.S.C. 78q–1(b)(3)(D).

6 15 U.S.C. 78s(b)(3)(A)(ii).

7 17 CFR 240.19b–4(f)(2).

8 17 CFR 200.30–3(s)(12).

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44278; File No. SR–SCCP–

2001–05]

Self-Regulatory Organizations; Stock

Clearing Corporation of Philadelphia;

Notice of Filing and Immediate

Effectiveness of a Proposed Rule

Change Eliminating Certain Specialist

Fees, Discounts, and Credits

May 8, 2001.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

April 2, 2001, 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.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change amends

SCCP’s fee schedule by eliminating

certain equity floor specialist fees,

discounts, and credits for transactions

with orders entered before the opening

of trading on PACE.2 Under the

proposed rule change, certain trade

recording and value fees are eliminated.

The proposed amendment also

eliminates volume related discounts

given to specialists for trades cleared

through a SCCP margin account as well

as a $.20 credit per specialist trade on

PACE.

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.3

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

The purpose of the proposed rule

change is to eliminate certain specialist

fees, discounts, and credits which

pertain to trades that a specialist

executes on PACE on the opening.

Presently, orders entered in the PACE

system prior to the opening which are

executed on the opening are subject to

the following SCCP fees and credits: (1)

Trade recording fees; (2) value fees; (3)

specialist discounts for trades cleared

through a SCCP margin account; and (4)

a PACE specialist credit of $.20. The

proposed rule change eliminates the

above charges and credits in relation to

orders entered on PACE before the

opening which were executed by the

specialist and not matched

automatically by PACE.4

In some instances, where PACE

cannot match a buy and sell order, the

specialist is responsible for their

independent execution and fees. The

proposed rule change eliminates the

transaction fees imposed by the

Philadelphia Stock Exchange in the

above circumstances which affect

specialists with orders on the opening

that are not executed automatically

through PACE. SCCP believes that the

proposed rule change will enable the

specialist to continue to provide the

market with prompt execution of orders

that require his intervention without the

additional burden of a transaction fee.

SCCP states that a more affordable, fair,

and competitive market for specialists

should encourage the specialists’ efforts

in attracting more order flow which in

turn should promote a more liquid

market. SCCP intends to implement the

proposed rule change effective May 1,

2001.

For these reasons, 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.

(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 6 and Rule 19b–

4(f)(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.

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 in

the Commission’s Public Reference

Section, 450 Fifth Street, NW.,

Washington, DC 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–2001–05 and should be

submitted by June 6, 2001.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–12279 Filed 5–15–01; 8:45 am]

BILLING CODE 8010–01–M