Daily Rules, Proposed Rules, and Notices of the Federal Government
The Phlx proposes to change its Nasdaq-100 Index Tracking Stock ("QQQ")
First, in connection with the Phlx's QQQ Fee Schedule, the Phlx proposes to replace the current Customer, Non-PACE per-trade fee of $1.00 per-trade with the equity transaction charge currently in effect on the Phlx's Summary of Equity Charges. Therefore, the Customer, Non-PACE per-trade fee of $1.00 per-trade will be replaced with the following:
$50 maximum fee per-trade side.
Second, the Phlx proposes to eliminate the specialist $0.002 per-share ($50.00 cap per-trade) fee.
The Phlx intends to implement the changes beginning with transactions settling on or after February 3, 2003.
The text of the proposed rule change is available at the Phlx, and at the Commission.
In its filing with the Commission, the Phlx included statements concerning the purpose of and basis for the proposed rule change and discussed any
The purpose of the proposed rule change is to simplify the Phlx's fee schedule by applying the same equity transaction charge for customer non-PACE transaction charges for the QQQs that is currently in effect for equity transactions. In addition, the Phlx proposes to delete the specialist fee of $0.002 per-share to provide the specialist unit with incentives to grow its specialist activity in the QQQs by reducing its costs of doing business and providing it with additional funds to commit to trading, which should, in turn, promote liquidity.
The Phlx believes that its proposal to amend its schedule of dues, fees and charges is consistent with section 6(b) of the Act
The Phlx does not believe that the proposed rule change will impose any inappropriate burden on competition.
The Phlx neither solicited nor received written comments concerning the proposal.
Because the foregoing rule change establishes or changes a due, fee, or other charge imposed by the Phlx, it has become effective pursuant to section 19(b)(3)(A) of the Act
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 andExchange 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 at the Commission's Public Reference Room. Copies of such filing also will be available for inspection and copying at the principal office of the Phlx.
All submissions should refer to File No. SR-Phlx-2003-06 and should be submitted by March 25, 2003.