Document ID: SEC-2006-1084-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Stock Clearing Corporation of Philadelphia
Posted Date: 2006-08-23T04:00Z

[Federal Register: August 23, 2006 (Volume 71, Number 163)]
[Notices]               
[Page 49497-49498]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23au06-118]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54325; No. SR-SCCP-2006-01]

 
 Self-Regulatory Organizations; Stock Clearing Corporation of 
Philadelphia; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Amend Its Value Fees for RIO Accounts and To Remove 
Reference to Electronic Communications Networks From Its Fee Schedule

August 16, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on July 26, 2006, the Stock 
Clearing Corporation of Philadelphia (``SCCP'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change described in Items I, II, and III below, which items have been 
prepared primarily by SCCP. SCCP filed the proposed rule change 
pursuant to Section 19(b)(3)(A)(ii) of the Act \2\ and Rule 19b-4(f)(2) 
\3\ thereunder so that the proposal was effective upon filing with the 
Commission. The Commission is publishing this notice to solicit 
comments on the rule change from interested parties.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \3\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of the rule change is to amend the current ``Value 
Fees-Regional Interface Organization (``RIO'') Accounts'' \4\ from of 
$0.05 per $1,000 of contract value to $0.0012 per share.\5\ SCCP also 
proposes to update its fee schedule by removing references to 
Electronic Communications Networks (``ECNs'').
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    \4\ See SCCP Rules 1 and 10.
    \5\ The text of the proposed rule change is available at http://www.phlx.com/sccp/sccp_rules/sr-sccp-2006-01.pdf
.

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II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, SCCP 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. SCCP has prepared summaries, set forth in sections (A), 
(B), and (C) below, of the most significant aspects of these 
statements.\6\
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    \6\ The Commission has modified the text of the summaries 
prepared by SCCP.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    First, SCCP believes changing the calculation of Value Fees for RIO 
Accounts from a value-based system to a share-based system should make 
it easier for a participant organization or a participant to calculate 
current costs and to estimate future costs associated with these 
transactions.
    Second, SCCP is removing reference to ECNs throughout its fee 
schedule in order to update its fees to more accurately reflect the 
fees it is currently imposing. Pursuant to previous rule filings, SCCP 
waived certain fees and charges for SCCP participants for trades 
executed on the Philadelphia Stock Exchange, Inc. for ECNs. Because 
SCCP did not renew its pilot program of waiving these fees, the waivers 
are no longer in effect.\7\
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    \7\ Securities Exchange Act Release No. 51153 (February 8, 
2005), 70 FR 7786 (February 15, 2005) (SR-SCCP-2005-01). The 
Commission's temporary approval of SCCP's waiving certain fees 
associated with ECN trades expired on January 23, 2006.
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    SCCP believes the proposed rule change is consistent with Section 
17A of the Act,\8\ as amended, because it clarifies and updates SCCP's 
fee schedule. As such, it provides for the equitable allocation of fees 
among its participants and aligns fees for services with the associated 
cost to deliver the service.
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    \8\ 15 U.S.C. 78q-1.

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[[Page 49498]]

(B) Self-Regulatory Organization's Statement on Burden on Competition

    SCCP does not believe that the proposed rule change would impose 
any burden on competition not necessary or appropriate in furtherance 
of the purposes of the Act.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received from Members, Participants, or Others

    Written comments were not and are not intended to be solicited with 
respect to the proposed rule change, and none have been received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing proposed rule change has become effective upon filing 
pursuant to Section 19(b)(3)(A)(ii) of the Act \9\ and Rule 19b-4(f)(2) 
\10\ thereunder because the rule establishes a due, fee, or other 
charge. 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
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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. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
) or     Send an e-mail to rule-comments@sec.gov. Please include 

File Number SR-SCCP-2006-01 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-SCCP-2006-01. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). 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, 100 F Street, 
NE., Washington, DC 20549. Copies of such filings also will be 
available for inspection and copying at the principal office of SCCP 
and on SCCP's Web site at http://www.phlx.com/SCCP/memindex_sccpproposals.html.
 All comments received will be posted without 

change; the Commission does not edit personal identifying information 
from submissions. You should submit only information that you wish to 
make available publicly. All submissions should refer to File Number 
SR-SCCP-2006-01 and should be submitted on or before September 13, 
2006.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-13933 Filed 8-22-06; 8:45 am]

BILLING CODE 8010-01-P