Self-Regulatory Organizations; The Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Web CRD Fingerprinting Fees, 58710-58711 [E7-20329]

Download as PDF 58710 Federal Register / Vol. 72, No. 199 / Tuesday, October 16, 2007 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56622; File No. SR–Phlx– 2007–77] may be examined at the places specified in Item IV below. The Phlx has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. Self-Regulatory Organizations; The Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Web CRD Fingerprinting Fees A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change October 5, 2007. Currently, the Exchange’s fee schedule includes fees that are imposed in connection with participation in the National Association of Securities Dealers, Inc. (‘‘NASD,’’ n/k/a/ the Financial Industry Regulatory Authority, Inc., ‘‘FINRA’’) Web Central Registration Depository (‘‘Web CRD’’). The fingerprinting fees are paid directly to FINRA and vary depending on the submission: for a first card submission, the fee is $35.00; for a second card submission, the fee is $13.00; and for a third card submission, the fee is $35.00. For processing fingerprint results for a member who had prints processed through a self-regulatory organization and not FINRA, the fee is $13.00. FINRA intends to amend the fingerprinting fees effective for fingerprints processed on or after October 1, 2007, so that the charge for the first and third submission of a fingerprint card will be lowered from $35.00 to $30.25.5 The fees for processing a second fingerprint card submission and for processing fingerprint cards where the member had prints processed through a selfregulatory organization and not FINRA will remain at $13.00. Therefore, the Exchange proposes to amend its fee schedule to reflect the lower Web CRD fingerprinting fees charged by FINRA. The Exchange also proposes to update its fee schedule to replace references to the NASD with references to FINRA. 1. Purpose Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on October 1, 2007, 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 substantially prepared by the Phlx. The Phlx has designated this proposal as one establishing or changing a due, fee, or other charge applicable only to a member under section 19(b)(3)(A)(ii) 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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Phlx proposes to amend its fingerprinting fees, which appear on Appendix A of its fee schedule, so that the charge for the first and third submission of a fingerprint card will be lowered from $35.00 to $30.25. The Exchange also proposes to replace references to ‘‘NASD’’ on the Exchange’s fee schedules with references to ‘‘FINRA.’’ The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, and at http://www.phlx.com. mmaher on PROD1PC70 with NOTICES 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 proposed rule change. The text of these statements U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). 04:12 Oct 16, 2007 The Exchange believes that its proposal to amend its schedule of fees is consistent with section 6(b) of the Act 6 in general, and furthers the objectives of section 6(b)(4) of the Act 7 in particular. The Exchange believes that it is an equitable allocation of reasonable fees and other charges among Exchange members because it will reflect FINRA’s reduction for the first 5 See FINRA Information Notice titled ‘‘Fingerprint Processing Fees’’ dated September 20, 2007. 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(4). 1 15 VerDate Aug<31>2005 2. Statutory Basis Jkt 214001 PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 and third submission of a fingerprint card from $35.00 to $30.25. 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 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 No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to section 19(b)(3)(A) of the Act 8 and Rule 19b–4(f)(2) 9 thereunder because it establishes or changes a due, fee, or other charge applicable only to a member. At any time within 60 days of the filing of such 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. 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 rulecomments@sec.gov. Please include File No. SR–Phlx–2007–77 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–Phlx–2007–77. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your 8 15 9 17 E:\FR\FM\16OCN1.SGM U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). 16OCN1 Federal Register / Vol. 72, No. 199 / Tuesday, October 16, 2007 / Notices 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 Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Phlx. 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–2007–77 and should be submitted on or before November 6, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–20329 Filed 10–15–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56626; File No. SR–Phlx– 2007–60] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing of a Proposed Rule Change Relating to Structured Equity Products mmaher on PROD1PC70 with NOTICES October 5, 2007. 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 August 14, 2007, 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 10 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Aug<31>2005 04:12 Oct 16, 2007 Jkt 214001 have been substantially prepared by the Exchange. The Commission is 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 update its rules regarding the listing of equity securities. Specifically, the Exchange proposes to modify Phlx Rule 802, Rule 806 (Initial Public Offerings), Rule 807 (Registration Under the Exchange Act), and Rule 837 (Annual Reports). The Phlx Fee Schedule will also be amended to add initial and continued listing fees for certain structured equity securities on the Exchange (‘‘Structured Equity Products’’).3 The text of the proposed rule change is available at the Commission’s Public Reference Room, at the Exchange, and at http:// www.Phlx.com. 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 Exchange 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. 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 Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to permit the Exchange to update certain of its listing rules and fees in order to attract the listing of Structured Equity Products. Currently, the vast majority of equity securities that trade on the Phlx are listed on other exchanges and traded on the Phlx pursuant to unlisted trading privileges (‘‘UTP’’). This allows the Exchange to compete for the trading volume of a security. However, the Phlx now intends to actively pursue serving as the 3 For purposes of this proposed rule change, Structured Equity Products are securities listed pursuant to the categories in Phlx Rule 803 entitled Other Securities, Equity Linked Notes, Basket Linked Notes, Index Linked Exchangeable Notes and Index Linked Securities. See Phlx Rule 803(f), (h), (k), (m) and (n). PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 58711 listing market for certain Structured Equity Products. The Phlx has long had a series of rules (the ‘‘800 Series’’) that create standards regarding both the security to be listed and traded on Phlx, as well as regarding the issuer of the security. In order to attract the listing of the Structured Equity Products, Phlx proposes modifications to the 800 Series to accommodate the specific attributes of many structured equity securities. Phlx Rule 802. Phlx Rule 802 identifies factors to be evaluated by the Exchange when reviewing and preparing its confidential listing opinion as to the eligibility of an applicant’s securities. Among other things, Phlx Rule 802 currently states that the applicant company must be a ‘‘going concern.’’ 4 The proposed rule change would delete the ‘‘going concern’’ requirement in order to remove uncertainty as to whether a Structured Equity Product qualifies as a ‘‘going concern.’’ The Exchange believes that the existing listing standards in Phlx Rule 803(a)(2) for traditional operating companies should sufficiently satisfy the ‘‘going concern’’ requirement for such other equity products that may become listed on the Exchange. Phlx Rule 806. Phlx Rule 806 permits new issues of securities to be listed on the Exchange on the day that the registration statement is effective with the SEC, or upon effectiveness of the registration statement or equivalent document if registration with the SEC is not required. However, the issuer must meet certain initial listing criteria. The proposed rule change would classify the two paragraphs of Phlx Rule 806 as (a) and (b). In addition, the proposed rule change would provide an exclusion for Structured Equity Products from Phlx Rule 806(b), which includes certain requirements relating to the distribution of new issues. This amendment would reflect the fact that distributors of Structured Equity Products generally make informal arrangements with dealers prior to going effective to provide assurance that sufficient creation units will be purchased from the issuer to meet the minimum listing requirements. Phlx Rule 807. Phlx Rule 807 requires that securities approved for listing by the Exchange must be registered under 4 ‘‘Going concern’’ refers to the ability of the applicant to meet its current obligations with cash or other assets that can be quickly converted into cash. If the applicant is not able to meet its current obligations, the ability of that applicant being able to continue to operate is in doubt. See email from John Dayton, Director and Counsel, Phlx, to Ronesha Butler, Special Counsel, Division of Market Regulation, Commission, dated September 14, 2007. E:\FR\FM\16OCN1.SGM 16OCN1

Agencies

[Federal Register Volume 72, Number 199 (Tuesday, October 16, 2007)]
[Notices]
[Pages 58710-58711]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-20329]



[[Page 58710]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56622; File No. SR-Phlx-2007-77]


Self-Regulatory Organizations; The Philadelphia Stock Exchange, 
Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to Web CRD Fingerprinting Fees

October 5, 2007.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on October 1, 2007, 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 substantially 
prepared by the Phlx. The Phlx has designated this proposal as one 
establishing or changing a due, fee, or other charge applicable only to 
a member under section 19(b)(3)(A)(ii) 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)(ii).
    \4\ 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 Phlx proposes to amend its fingerprinting fees, which appear on 
Appendix A of its fee schedule, so that the charge for the first and 
third submission of a fingerprint card will be lowered from $35.00 to 
$30.25. The Exchange also proposes to replace references to ``NASD'' on 
the Exchange's fee schedules with references to ``FINRA.''
    The text of the proposed rule change is available at the Exchange, 
the Commission's Public Reference Room, and at http://www.phlx.com.

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 proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The 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
    Currently, the Exchange's fee schedule includes fees that are 
imposed in connection with participation in the National Association of 
Securities Dealers, Inc. (``NASD,'' n/k/a/ the Financial Industry 
Regulatory Authority, Inc., ``FINRA'') Web Central Registration 
Depository (``Web CRD''). The fingerprinting fees are paid directly to 
FINRA and vary depending on the submission: for a first card 
submission, the fee is $35.00; for a second card submission, the fee is 
$13.00; and for a third card submission, the fee is $35.00. For 
processing fingerprint results for a member who had prints processed 
through a self-regulatory organization and not FINRA, the fee is 
$13.00.
    FINRA intends to amend the fingerprinting fees effective for 
fingerprints processed on or after October 1, 2007, so that the charge 
for the first and third submission of a fingerprint card will be 
lowered from $35.00 to $30.25.\5\ The fees for processing a second 
fingerprint card submission and for processing fingerprint cards where 
the member had prints processed through a self-regulatory organization 
and not FINRA will remain at $13.00.
---------------------------------------------------------------------------

    \5\ See FINRA Information Notice titled ``Fingerprint Processing 
Fees'' dated September 20, 2007.
---------------------------------------------------------------------------

    Therefore, the Exchange proposes to amend its fee schedule to 
reflect the lower Web CRD fingerprinting fees charged by FINRA. The 
Exchange also proposes to update its fee schedule to replace references 
to the NASD with references to FINRA.
2. Statutory Basis
    The Exchange believes that its proposal to amend its schedule of 
fees is consistent with section 6(b) of the Act \6\ in general, and 
furthers the objectives of section 6(b)(4) of the Act \7\ in 
particular. The Exchange believes that it is an equitable allocation of 
reasonable fees and other charges among Exchange members because it 
will reflect FINRA's reduction for the first and third submission of a 
fingerprint card from $35.00 to $30.25.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to section 
19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(2) \9\ thereunder because 
it establishes or changes a due, fee, or other charge applicable only 
to a member. At any time within 60 days of the filing of such 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-Phlx-2007-77 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2007-77. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your

[[Page 58711]]

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 Room, 100 F Street, NE., Washington, DC 20549, on official 
business days between the hours of 10 a.m. and 3 p.m. Copies of such 
filing also will be available for inspection and copying at the 
principal office of the Phlx. 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-2007-77 and should be submitted on or before 
November 6, 2007.
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-20329 Filed 10-15-07; 8:45 am]
BILLING CODE 8011-01-P