Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Impose Licensing Fees in Connection With the Firm-Related Equity Option and Index Option Fee Cap, 46899-46901 [E5-4352]
Download as PDF
<![CDATA[
Federal Register / Vol. 70, No. 154 / Thursday, August 11, 2005 / Notices
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 on the proposed
rule change were neither solicited nor
received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the PCX consents, the
Commission will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–PCX–2005–59 on the
subject line.
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
Room. Copies of the filing also will be
available for inspection and copying at
the principal office of the PCX. 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–PCX–2005–59 and should
be submitted on or before September 1,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5–4348 Filed 8–10–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52220; File No. SR–Phlx–
2005–49]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Impose Licensing Fees in
Connection With the Firm-Related
Equity Option and Index Option Fee
Cap
August 5, 2005.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
Paper Comments
notice is hereby given that on July 28,
• Send paper comments in triplicate
2005, the Philadelphia Stock Exchange,
to Jonathan G. Katz, Secretary,
Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with
Securities and Exchange Commission,
the Securities and Exchange
100 F Street, NE., Washington, DC
Commission (‘‘Commission’’) the
20549–9303.
proposed rule change as described in
All submissions should refer to File
items I, II, and III below, which items
Number SR–PCX–2005–59. This file
have been prepared by the Exchange.
number should be included on the
Phlx has designated this proposal as one
subject line if e-mail is used. To help the
establishing or changing a due, fee, or
Commission process and review your
other charge imposed by a selfcomments more efficiently, please use
regulatory organization pursuant to
only one method. The Commission will
section 19(b)(3)(A) of the Act,3 and Rule
post all comments on the Commission’s
19b–4(f)(2) thereunder,4 which renders
Internet Web site (https://www.sec.gov/
the proposal effective upon filing with
rules/sro.shtml). Copies of the
the Commission. The Commission is
submission, all subsequent
amendments, all written statements
9 17 CFR 200.30–3(a)(12).
with respect to the proposed rule
1 15 U.S.C. 78s(b)(1).
change that are filed with the
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
Commission, and all written
4 17 CFR 240.19b–4(f)(2).
communications relating to the
VerDate jul<14>2003
16:14 Aug 10, 2005
Jkt 205001
PO 00000
Frm 00091
Fmt 4703
Sfmt 4703
46899
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Phlx proposes to amend its
schedule of fees to adopt a license fee
of $0.10 for options traded on the
following products: 5 (1) Keefe, Bruyette
& Woods Regional Banking Index or the
KBW Regional Banking Index, traded
under the symbol KRX, and (2) Keefe,
Bruyette & Woods Mortgage Finance
Index or the KBW Mortgage Finance
Index, traded under the symbol MFX
(collectively ‘‘KBW products’’), to be
assessed per contract side for index
option ‘‘firm’’ transactions (comprised
of index option firm/proprietary
comparison transactions, index option
firm/proprietary transactions and index
option firm/proprietary facilitation
transactions). This license fee will be
imposed only after the Exchange’s
$60,000 ‘‘firm-related’’ equity option
and index option comparison and
transaction charge cap, described more
fully below, is reached.
Currently, the Exchange imposes a
cap of $60,000 per member
organization 6 on all ‘‘firm-related’’
equity option and index option
comparison and transaction charges
combined.7 Specifically, ‘‘firm-related’’
charges include equity option firm/
proprietary comparison charges, equity
option firm/proprietary transaction
charges, equity option firm/proprietary
facilitation transaction charges, index
option firm/proprietary comparison
charges, index option firm/proprietary
transaction charges, and index option
firm/proprietary facilitation transaction
charges (collectively ‘‘firm-related
charges’’). Thus, such firm-related
charges in the aggregate for one billing
month may not exceed $60,000 per
month per member organization.
5 This
fee will be charged to Exchange members.
firm/proprietary comparison or transaction
charge applies to member organizations for orders
for the proprietary account of any member or nonmember broker-dealer that derives more than 35%
of its annual, gross revenues from commissions and
principal transactions with customers. Member
organizations are required to verify this amount to
the Exchange by certifying that they have reached
this threshold by submitting a copy of their annual
report, which was prepared in accordance with
Generally Accepted Accounting Principles
(‘‘GAAP’’). In the event that a member organization
has not been in business for one year, the most
recent quarterly reports, prepared in accordance
with GAAP, are accepted. See Securities Exchange
Act Release No. 43558 (November 14, 2000), 65 FR
69984 (November 21, 2000) (SR–Phlx–2000–85).
7 See Securities Exchange Act Release No. 51024
(January 11, 2005), 70 FR 3088 (January 19, 2005)
(SR–Phlx–2004–94).
6 The
E:\FR\FM\11AUN1.SGM
11AUN1
46900
Federal Register / Vol. 70, No. 154 / Thursday, August 11, 2005 / Notices
The Exchange also imposes a license
fee of $0.10 per contract side for equity
option and index option ‘‘firm’’
transactions on certain licensed
products (collectively ‘‘licensed
products’’) after the $60,000 cap, as
described above, is reached.8 Therefore,
when a member organization exceeds
the $60,000 cap (comprised of combined
firm-related charges), the member
organization is charged $60,000, plus
license fees of $0.10 per contract side
for any contracts in licensed products (if
any) over those that were included in
reaching the $60,000 cap. In other
words, if the cap is reached, the $0.10
license fee is imposed on all subsequent
equity option and index option firm
transactions; these license fees are
charged in addition to the $60,000 cap.
The Exchange proposes to adopt a
$0.10 license fee per contract side for
the KBW products for index option firm
transactions, which will be imposed
after the $60,000 cap is reached in the
same way as the current licensed
product fees are assessed. Thus, when a
member organization exceeds the
$60,000 cap, the member organization
will be charged $60,000 plus any
applicable license fees for trades of
licensed products, including the KBW
products, over those trades that were
counted in reaching the $60,000 cap.9
The fees set forth in this proposal are
scheduled to become effective for
transactions settling on or after August
1, 2005.
The text of the proposed rule change
is available on the Phlx’s Web site,
https://www.phlx.com, at the Phlx’s
Office of the Secretary, and at the
Commission’s Public Reference Section.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Phlx included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposal.
The text of these statements may be
8 For a complete list of licensed products, see
$60,000 ‘‘Firm Related’’ Equity Option and Index
Option Cap on the Exchange’s fee schedule. See
also, Securities Exchange Act Release No. 52054
(July 18, 2005), 70 FR 42611 (July 25, 2005) (SR–
Phlx–2005–40).
9 Consistent with current practice, when
calculating the $60,000 cap, the Exchange first
calculates all equity option and index option
transaction and comparison charges for products
without license fees and then equity option and
index option transaction and comparison charges
for products with license fees (e.g., QQQ license
fees) that are assessed by the Exchange after the
$60,000 cap is reached. See Securities Exchange Act
Release No. 50836 (December 10, 2004), 69 FR
75584 (December 17, 2004) (SR–Phlx–2004–70).
VerDate jul<14>2003
16:14 Aug 10, 2005
Jkt 205001
examined at the places specified in item
IV below. The Exchange has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
IV. Solicitation of Comments
1. Purpose
The purpose of assessing the KBW
products license fee of $0.10 per
contract side after reaching the $60,000
cap as described in this proposal is to
help defray licensing costs associated
with the trading of these products,
while still capping member
organizations’ fees enough to attract
volume from other exchanges. The cap
operates this way in order to offer an
incentive for additional volume without
leaving the Exchange with significant
out-of-pocket costs.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act 10 in general, and
furthers the objectives of section 6(b)(4)
of the Act 11 in particular, in that it is
an equitable allocation of reasonable
dues, fees, and other charges among
Exchange members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Phlx believes that the proposed
rule change would impose no burden on
competition that is 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
The Exchange did not solicit or
receive any written comments with
respect to the proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has been designated as a fee change
pursuant to section 19(b)(3)(A)(ii) of the
Act 12 and Rule 19b–4(f)(2) 13
thereunder. Accordingly, the proposal is
effective upon filing with the
Commission. 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
PO 00000
10 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
12 15 U.S.C. 78s(b)(3)(A)(ii).
13 17 CFR 240.19b–4(f)(2).
11 15
Frm 00092
Fmt 4703
Sfmt 4703
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Phlx–2005–49 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–9303.
All submissions should refer to File
Number SR–Phlx–2005–49. 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 (https://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. Copies of such filing also will
be available for inspection and copying
at the principal office of the Exchange.
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–Phlx–2005–49 and should
be submitted on or before September 1,
2005.
E:\FR\FM\11AUN1.SGM
11AUN1
46901
Federal Register / Vol. 70, No. 154 / Thursday, August 11, 2005 / Notices
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4352 Filed 8–10–05; 8:45 am]
BILLING CODE 8010–01–P
SOCIAL SECURITY ADMINISTRATION
Agency Information Collection
Activities: Proposed Request and
Comment Request
The Social Security Administration
(SSA) publishes a list of information
collection packages that will require
clearance by the Office of Management
and Budget (OMB) in compliance with
Public Law 104–13, the Paperwork
Reduction Act of 1995, effective October
1, 1995. The information collection
packages that may be included in this
notice are for revisions to OMBapproved information collections,
extensions (no change) of OMBapproved information collections and
new information collection requests.
SSA is soliciting comments on the
accuracy of the agency’s burden
estimate; the need for the information;
its practical utility; ways to enhance its
quality, utility, and clarity; and on ways
to minimize burden on respondents,
including the use of automated
collection techniques or other forms of
information technology. Written
comments and recommendations
regarding the information collection(s)
should be submitted to the OMB Desk
Officer and the SSA Reports Clearance
Officer. The information can be mailed
and/or faxed to the individuals at the
addresses and fax numbers listed below:
(OMB) Office of Management and
Budget, Fax: 202–395–6974.
(SSA) Social Security Administration,
DCFAM, Attn: Reports Clearance
Officer, 1333 Annex Building, 6401
Security Blvd., Baltimore, MD 21235.
Fax: 410–965–6400.
I. The information collections listed
below are pending at SSA and will be
submitted to OMB within 60 days from
the date of this notice. Therefore, your
comments should be submitted to SSA
within 60 days from the date of this
publication. You can obtain copies of
the collection instruments by calling the
SSA Reports Clearance Officer at 410–
965–0454 or by writing to the address
listed above.
2. Protection and Advocacy for
Beneficiaries of Social Security
(PABSS)—0960–NEW
Background
1. Annual Registration Statement
Identifying Separated Participants With
Deferred Benefits, Schedule SSA—
0960–0606
Schedule SSA is a form filed annually
as part of a series of pension plan
documents required by section 6057 of
the IRS Code. Administrators of pension
benefit plans are required to report
specific information on future plan
benefits for those participants who left
plan coverage during the year. SSA
maintains the information until a claim
for Social Security benefits has been
approved. At that time, SSA notifies the
beneficiary of his/her potential
eligibility for payments from the private
pension plan. The respondents are
administrators of pension benefit plans
or their service providers employed to
prepare the schedule SSA on behalf of
the pension benefit plan. Below are the
estimates of the cost and hour burdens
for completing and filing schedule
SSA(s). We have used an average to
estimate the hour burden. However, the
burden may be greater or smaller
depending on whether the respondent is
a large or small pension benefit plan
and how many schedule SSA’s are filed
in a given year.
Type of Request: Extension of an
OMB-approved information collection.
Number of Respondents: 88,000.
Frequency of Response: 1.
Average Burden Per Response: 2.5
hours.
Estimated Annual Burden: 220,000
hours.
Estimated Annual Cost Burden for all
Respondents: $12,194,400.
Number of
annual
responses
Title of collection
In August of 2004, SSA announced its
intention to award grants to establish
community-based protection and
advocacy projects in every State and
U.S. Territory, as authorized under
section 1150 of the Social Security Act.
Potential awardees were protection and
advocacy organizations established
under Title I of the Developmental
Disabilities Assistance and Bill of Rights
Act which submitted a timely
application conforming to the
requirements in the notice. The projects
funded under this grant are part of
SSA’s strategy to increase the number of
beneficiaries who return to work and
achieve self-sufficiency as the result of
receiving advocacy or other services.
The overall goal of the program is to
provide information and advice about
obtaining vocational rehabilitation and
employment services and to provide
advocacy or other services that a
beneficiary with a disability may need
to secure, maintain, or regain gainful
employment.
Collection Activities
The PABSS project collects
identifying information from the project
sites and benefits specialists. In
addition, data are collected from the
beneficiaries on background,
employment, training, benefits, and
work incentives. SSA uses the
information to manage the program,
with particular emphasis on contract
administration, budgeting, and training.
SSA also uses the information to
evaluate the efficacy of the program and
to ensure that those dollars appropriated
for PABSS services are being spent on
SSA beneficiaries. The project data will
be valuable to SSA in its analysis of and
future planning for the Social Security
Disability Insurance and Supplemental
Security Income programs.
Type of Request: New information
collection.
Frequency of
response
Average
burden per
response
(minutes)
Estimated
annual burden
hours
Site ...................................................................................................................
Specialist ..........................................................................................................
Beneficiary .......................................................................................................
57
225
60,000
5
5
1
1.8
1.8
5.3
8.6
33.8
5,300
Total Estimated Annual Burden ...............................................................
........................
........................
........................
5,342
14 17
CFR 200.30–3(a)(12).
VerDate jul<14>2003
16:14 Aug 10, 2005
Jkt 205001
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
E:\FR\FM\11AUN1.SGM
11AUN1
]]>Agencies
[Federal Register Volume 70, Number 154 (Thursday, August 11, 2005)]
[Notices]
[Pages 46899-46901]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4352]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52220; File No. SR-Phlx-2005-49]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Impose Licensing Fees in Connection With the Firm-Related Equity Option
and Index Option Fee Cap
August 5, 2005.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on July 28, 2005, the Philadelphia Stock Exchange, Inc. (``Phlx'' or
``Exchange'') 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 by the Exchange. Phlx has
designated this proposal as one establishing or changing a due, fee, or
other charge imposed by a self-regulatory organization pursuant to
section 19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(2) thereunder,\4\
which renders the proposal effective upon filing with the Commission.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Phlx proposes to amend its schedule of fees to adopt a license
fee of $0.10 for options traded on the following products: \5\ (1)
Keefe, Bruyette & Woods Regional Banking Index or the KBW Regional
Banking Index, traded under the symbol KRX, and (2) Keefe, Bruyette &
Woods Mortgage Finance Index or the KBW Mortgage Finance Index, traded
under the symbol MFX (collectively ``KBW products''), to be assessed
per contract side for index option ``firm'' transactions (comprised of
index option firm/proprietary comparison transactions, index option
firm/proprietary transactions and index option firm/proprietary
facilitation transactions). This license fee will be imposed only after
the Exchange's $60,000 ``firm-related'' equity option and index option
comparison and transaction charge cap, described more fully below, is
reached.
---------------------------------------------------------------------------
\5\ This fee will be charged to Exchange members.
---------------------------------------------------------------------------
Currently, the Exchange imposes a cap of $60,000 per member
organization \6\ on all ``firm-related'' equity option and index option
comparison and transaction charges combined.\7\ Specifically, ``firm-
related'' charges include equity option firm/proprietary comparison
charges, equity option firm/proprietary transaction charges, equity
option firm/proprietary facilitation transaction charges, index option
firm/proprietary comparison charges, index option firm/proprietary
transaction charges, and index option firm/proprietary facilitation
transaction charges (collectively ``firm-related charges''). Thus, such
firm-related charges in the aggregate for one billing month may not
exceed $60,000 per month per member organization.
---------------------------------------------------------------------------
\6\ The firm/proprietary comparison or transaction charge
applies to member organizations for orders for the proprietary
account of any member or non-member broker-dealer that derives more
than 35% of its annual, gross revenues from commissions and
principal transactions with customers. Member organizations are
required to verify this amount to the Exchange by certifying that
they have reached this threshold by submitting a copy of their
annual report, which was prepared in accordance with Generally
Accepted Accounting Principles (``GAAP''). In the event that a
member organization has not been in business for one year, the most
recent quarterly reports, prepared in accordance with GAAP, are
accepted. See Securities Exchange Act Release No. 43558 (November
14, 2000), 65 FR 69984 (November 21, 2000) (SR-Phlx-2000-85).
\7\ See Securities Exchange Act Release No. 51024 (January 11,
2005), 70 FR 3088 (January 19, 2005) (SR-Phlx-2004-94).
---------------------------------------------------------------------------
[[Page 46900]]
The Exchange also imposes a license fee of $0.10 per contract side
for equity option and index option ``firm'' transactions on certain
licensed products (collectively ``licensed products'') after the
$60,000 cap, as described above, is reached.\8\ Therefore, when a
member organization exceeds the $60,000 cap (comprised of combined
firm-related charges), the member organization is charged $60,000, plus
license fees of $0.10 per contract side for any contracts in licensed
products (if any) over those that were included in reaching the $60,000
cap. In other words, if the cap is reached, the $0.10 license fee is
imposed on all subsequent equity option and index option firm
transactions; these license fees are charged in addition to the $60,000
cap.
---------------------------------------------------------------------------
\8\ For a complete list of licensed products, see $60,000 ``Firm
Related'' Equity Option and Index Option Cap on the Exchange's fee
schedule. See also, Securities Exchange Act Release No. 52054 (July
18, 2005), 70 FR 42611 (July 25, 2005) (SR-Phlx-2005-40).
---------------------------------------------------------------------------
The Exchange proposes to adopt a $0.10 license fee per contract
side for the KBW products for index option firm transactions, which
will be imposed after the $60,000 cap is reached in the same way as the
current licensed product fees are assessed. Thus, when a member
organization exceeds the $60,000 cap, the member organization will be
charged $60,000 plus any applicable license fees for trades of licensed
products, including the KBW products, over those trades that were
counted in reaching the $60,000 cap.\9\
---------------------------------------------------------------------------
\9\ Consistent with current practice, when calculating the
$60,000 cap, the Exchange first calculates all equity option and
index option transaction and comparison charges for products without
license fees and then equity option and index option transaction and
comparison charges for products with license fees (e.g., QQQ license
fees) that are assessed by the Exchange after the $60,000 cap is
reached. See Securities Exchange Act Release No. 50836 (December 10,
2004), 69 FR 75584 (December 17, 2004) (SR-Phlx-2004-70).
---------------------------------------------------------------------------
The fees set forth in this proposal are scheduled to become
effective for transactions settling on or after August 1, 2005.
The text of the proposed rule change is available on the Phlx's Web
site, https://www.phlx.com, at the Phlx's Office of the Secretary, and
at the Commission's Public Reference Section.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Phlx included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposal. The text of these
statements may be examined at the places specified in item IV below.
The Exchange 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of assessing the KBW products license fee of $0.10 per
contract side after reaching the $60,000 cap as described in this
proposal is to help defray licensing costs associated with the trading
of these products, while still capping member organizations' fees
enough to attract volume from other exchanges. The cap operates this
way in order to offer an incentive for additional volume without
leaving the Exchange with significant out-of-pocket costs.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act \10\ in general, and furthers the
objectives of section 6(b)(4) of the Act \11\ in particular, in that it
is an equitable allocation of reasonable dues, fees, and other charges
among Exchange members.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Phlx believes that the proposed rule change would impose no
burden on competition that is 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
The Exchange did not solicit or receive any written comments with
respect to the proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has been designated as a fee
change pursuant to section 19(b)(3)(A)(ii) of the Act \12\ and Rule
19b-4(f)(2) \13\ thereunder. Accordingly, the proposal is effective
upon filing with the Commission. 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.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A)(ii).
\13\ 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. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-Phlx-2005-49 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-9303.
All submissions should refer to File Number SR-Phlx-2005-49. 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 (https://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. Copies of
such filing also will be available for inspection and copying at the
principal office of the Exchange. 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-Phlx-2005-49 and should be submitted on or before
September 1, 2005.
[[Page 46901]]
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4352 Filed 8-10-05; 8:45 am]
BILLING CODE 8010-01-P
