Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change to Increase Position Limits and Exercise Limits for Options on Standard and Poor's Depositary Receipts (SPDRs®), 4911-4913 [E5-353]

Download as PDF Federal Register / Vol. 70, No. 19 / Monday, January 31, 2005 / Notices 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 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 Nasdaq consents, the Commission will: (A) By order approve such proposed rule change, as amended; or (B) Institute proceedings to determine whether the proposed rule change should be disapproved. 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 such filing also will be available for inspection and copying at the principal office of Nasdaq. 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-NASD–2004–173 and should be submitted on or before February 22, 2005. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.20 Margaret H. McFarland, Deputy Secretary. [FR Doc. 05–1697 Filed 1–28–05; 8:45 am] BILLING CODE 8010–01–P 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: SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51071; File No. SR-Phlx2005–05] • 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–NASD–2004–173 on the subject line. Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change to Increase Position Limits and Exercise Limits for Options on Standard and Poor’s Depositary Receipts (SPDRs) Paper Comments January 21, 2005. • Send paper comments in triplicate to Jonathan G. Katz, Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549–0609. All submissions should refer to File Number SR–NASD–2004–173. 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 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 January 19, 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 and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. In addition, the Commission is granting accelerated approval of the proposed rule change. Electronic Comments VerDate jul<14>2003 16:59 Jan 28, 2005 Jkt 205001 PO 00000 20 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 Frm 00100 Fmt 4703 Sfmt 4703 4911 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Exchange Rule 1001, Position Limits, to increase position limits and exercise limits for options on the Standard and Poor’s Depositary Receipts (‘‘SPDRs’’).3 The text of the proposed rule change is available on the Phlx’s Web site (http:/ /www.phlx.com), at the Phlx’s Office of the Secretary, and at the Commission’s Public Reference Room. 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 had received on the proposed rule change. The text of these statements may be examined at the places specified in item III 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 The Exchange proposes to amend Exchange Rule 1001 to increase the position limits and exercise limits 4 applicable to options on SPDRs from 75,000 to 300,000 contracts on the same side of the market. The Exchange began trading options on SPDRs on the Exchange’s electronic trading platform for options, Phlx XL, on January 10, 2005. Given the expected institutional demand for options on SPDRs, the Exchange believes that the current equity position limit of 75,000 contracts 5 is too low and could be a deterrent to the successful trading of the product. Options on SPDRs are 1/10th the size of options on the Standard and Poor’s 500 Index (‘‘SPX’’). Thus, a position limit of 75,000 contracts in options on SPDRs is equivalent to a 3 ‘‘Standard & Poor’s’’, ‘‘S&P’’, ‘‘S&P 500’’, ‘‘Standard & Poor’s 500’’, and ‘‘500’’ are trademarks of The McGraw-Hill Companies, Inc. Neither Standard & Poor’s nor its index compilation agent makes any recommendation concerning the advisability of investing in options on SPDRs. 4 Exchange Rule 1002, Exercise Limits, refers to exercise limits that correspond to aggregate long positions as described in Exchange Rule 1001. The position limit established in a given option under Exchange Rule 1001 is also the exercise limit for such option. 5 See Exchange Rule 1001, Commentary .05(a). E:\FR\FM\31JAN1.SGM 31JAN1 4912 Federal Register / Vol. 70, No. 19 / Monday, January 31, 2005 / Notices 7,500 contract position limit in options on SPX. Traders who trade options on SPDRs to hedge positions in SPX options are likely to find a position limit of 75,000 contracts in options on SPDRs too restrictive, which may adversely affect the Exchange’s ability to provide liquidity in this product. Comparable products, such as options on the Nasdaq-100 Index Tracking Stock (‘‘QQQ’’),6 are subject to a 300,000 contract limit.7 The Exchange proposes that options on SPDRs similarly be subject to position limits and exercise limits of 300,000 contracts. The Exchange believes that increasing position limits and exercise limits for options on SPDRs would lead to a more liquid and competitive market environment for options on SPDRs that would benefit customers interested in this product. Consistent with the reporting requirement for QQQ options, the Exchange would require that each member or member organization that maintains a position on the same side of the market, for its own account or for the account of a customer, report certain information.8 This data would include, but would not be limited to, the option position, whether such position is hedged and if so, a description of the hedge and if applicable, the collateral used to carry the position. Exchange specialists and Registered Options Traders (‘‘ROTs’’) would continue to be exempt from this reporting requirement as specialist and ROT information can be accessed through the Exchange’s market surveillance systems. In addition, the general reporting requirement for customer accounts that maintain an aggregate position of 200 or more option contracts would remain at this level for options on SPDRs.9 the objectives of section 6(b)(5) of the Act,11 in particular, in that it is designed to perfect the mechanisms of a free and open market and the national market system, promote just and equitable principles of trade and protect investors and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange 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 Written comments on the proposed rule change were neither solicited nor received. provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room. 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 publicly available. All submissions should refer to File Number SR-Phlx-2005–05 and should be submitted on or before February 22, 2005. IV. Commission’s Findings and Order Granting Accelerated Approval of Proposed Rule Change After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the III. Solicitation of Comments Act and the rules and regulations Interested persons are invited to thereunder, applicable to a national submit written data, views, and securities exchange,12 and, in particular, arguments concerning the foregoing, the requirements of Section 6(b)(5) of including whether the proposed rule the Act.13 Specifically, the Commission change is consistent with the Act. finds that the proposed rule change Comments may be submitted by any of should ensure that the Exchange’s the following methods: position limits and exercise limits on options on SPDRs provide its members Electronic Comments and member organizations with • Use the Commission’s Internet sufficient flexibility to participate in the comment form (https://www.sec.gov/ market for such options in a manner rules/sro.shtml); or that should provide greater depth and • Send an e-mail to ruleliquidity for all market participants. comments@sec.gov. Please include File The Commission finds good cause for Number SR-Phlx-2005–05 on the subject approving this proposed rule change line. prior to the thirtieth day after Paper Comments publication of notice thereof in the Federal Register. Specifically, the • Send paper comments in triplicate Commission believes that granting to Jonathan G. Katz, Secretary, accelerated approval to the proposed Securities and Exchange Commission, rule change should permit greater depth 450 Fifth Street, NW., Washington, DC and liquidity in the options on SPDRs 20549–0609. market that should benefit all market All submissions should refer to File 2. Statutory Basis participants, including retail investors. Number SR-Phlx-2005–05. This file The Exchange believes the proposed Because the higher position limits and number should be included on the rule change is consistent with section subject line if e-mail is used. To help the exercise limits mirror those that the 6(b) of the Act,10 in general, and furthers Commission has previously approved Commission process and review your for like products, the Commission comments more efficiently, please use 6 The Nasdaq-100, Nasdaq-100 Index, Nasdaq, only one method. The Commission will believes it is consistent with sections The Nasdaq Stock Market, Nasdaq-100 SharesSM, 14 15 Nasdaq-100 TrustSM, Nasdaq-100 Index Tracking post all comments on the Commission’s 6(b)(5) and 19(b)(2) of the Act to approve the Phlx’s proposed rule StockSM, and QQQSM are trademarks or service Internet Web site (https://www.sec.gov/ marks of The Nasdaq Stock Market, Inc. (‘‘Nasdaq’’) change on an accelerated basis. rules/sro.shtml). Copies of the and have been licensed for use for certain purposes submission, all subsequent by the Phlx pursuant to a license agreement with V. Conclusion Nasdaq. The Nasdaq-100 Index (‘‘Index’’) is amendments, all written statements It is therefore ordered, pursuant to determined, composed, and calculated by Nasdaq with respect to the proposed rule without regard to the licensee, the Nasdaq-100 section 19(b)(2) of the Act,16 that the change that are filed with the TrustSM, or the beneficial owners of Nasdaq-100 proposed rule change (SR–Phlx–2005– Commission, and all written SharesSM. Nasdaq has complete control and sole discretion in determining, comprising, or communications relating to the 12 In approving this proposal, the Commission has calculating the Index or in modifying in any way proposed rule change between the considered its impact on efficiency, competition, its method for determining, comprising, or Commission and any person, other than and capital formation. 15 U.S.C. 78c(f). calculating the Index in the future. those that may be withheld from the 13 15 U.S.C. 78f(b)(5). 7 See Exchange Rule 1001. 14 15 U.S.C. 78f(b)(5). 8 See Exchange Rule 1003. public in accordance with the 9 See 10 15 15 15 Exchange Rule 1003. U.S.C. 78f(b). VerDate jul<14>2003 17:46 Jan 28, 2005 11 15 Jkt 205001 PO 00000 U.S.C. 78f(b)(5). Frm 00101 Fmt 4703 16 15 Sfmt 4703 E:\FR\FM\31JAN1.SGM U.S.C. 78s(b)(2). U.S.C. 78s(b)(2). 31JAN1 Federal Register / Vol. 70, No. 19 / Monday, January 31, 2005 / Notices 05) is hereby approved on an accelerated basis. DEPARTMENT OF STATE For the Commission, by the Division of Market Regulation, pursuant to delegated authority.17 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–353 Filed 1–28–05; 8:45 am] 4913 [Public Notice 4981] BILLING CODE 8010–01–P DEPARTMENT OF STATE [Public Notice 4982] Culturally Significant Objects Imported for Exhibition Determinations: ‘‘Degas Sculptures’’ Department of State. Notice. AGENCY: ACTION: SUMMARY: Notice is hereby given of the following determinations: Pursuant to the authority vested in me by the Act of October 19, 1965 (79 Stat. 985; 22 U.S.C. 2459), Executive Order 12047 of March 27, 1978, the Foreign Affairs Reform and Restructuring Act of 1998 (112 Stat. 2681, et seq.; 22 U.S.C. 6501 note, et seq.), Delegation of Authority No. 234 of October 1, 1999, Delegation of Authority No. 236 of October 19, 1999, as amended, and Delegation of Authority No. 257 of April 15, 2003 [68 FR 19875], I hereby determine that the objects to be included in the exhibition ‘‘Degas Sculptures’’, imported from abroad for temporary exhibition within the United States, are of cultural significance. The objects are imported pursuant to loan agreements with the foreign owners. I also determine that the exhibition or display of the exhibit objects at the Milwaukee Art Museum, from on or about February 19, 2005, until on or about June 5, 2005, and at possible additional venues yet to be determined, is in the national interest. Public Notice of these Determinations is ordered to be published in the Federal Register. FOR FURTHER INFORMATION CONTACT: For further information, including a list of the exhibit objects, contact Richard Lahne, Attorney-Adviser, Office of the Legal Adviser, U.S. Department of State (telephone: 202–453–8058). The address is U.S. Department of State, SA–44, 301 4th Street, SW., Room 700, Washington, DC 20547–0001. Dated: January 21, 2005. C. Miller Crouch, Principal Deputy Assistant Secretary for Educational and Cultural Affairs, Department of State. [FR Doc. 05–1741 Filed 1–28–05; 8:45 am] Determination under Trade Agreements Act of 1979. ACTION: EFFECTIVE DATE: Culturally Significant Objects Imported for Exhibition Determinations: ‘‘Fra Angelico’’ SUMMARY: Notice is hereby given of the following determinations: Pursuant to the authority vested in me by the Act of October 19, 1965 (79 Stat. 985; 22 U.S.C. 2459), Executive Order 12047 of March 27, 1978, the Foreign Affairs Reform and Restructuring Act of 1998 (112 Stat. 2681, et seq.; 22 U.S.C. 6501 note, et seq.), Delegation of Authority No. 234 of October 1, 1999, and Delegation of Authority No. 236 of October 19, 1999, as amended, and Delegation of Authority No. 257 of April 15, 2003 [68 FR 19875], I hereby determine that the objects to be included in the exhibition ‘‘Fra Angelico,’’ imported from abroad for temporary exhibition within the United States, are of cultural significance. The objects are imported pursuant to a loan agreement with the foreign owners. I also determine that the exhibition or display of the exhibit objects at The Metropolitan Museum of Art, New York, NY from on or about October 25, 2005 to on or about January 29, 2006, and at possible additional venues yet to be determined, is in the national interest. Public Notice of these determinations is ordered to be published in the Federal Register. FOR FURTHER INFORMATION CONTACT: For further information, including a list of the exhibit objects, contact Carol B. Epstein, Attorney-Adviser, Office of the Legal Adviser, Department of State, (telephone: 202/453–8048). The address is Department of State, SA–44, 301 4th Street, SW., Room 700, Washington, DC 20547–0001. Dated: January 25, 2005. C. Miller Crouch, Principal Deputy Assistant Secretary for Educational and Cultural Affairs, Department of State. [FR Doc. 05–1742 Filed 1–28–05; 8:45 am] BILLING CODE 4710–08–P OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE Determination Regarding Waiver of Discriminatory Purchasing Requirements With Respect to Goods and Services Covered by Chapter 15 of the U.S.-Australia Free Trade Agreement BILLING CODE 4710–08–P Office of the United States Trade Representative. AGENCY: 17 17 CFR 200.30–3(a)(12). VerDate jul<14>2003 16:59 Jan 28, 2005 Jkt 205001 PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 January 24, 2005. Jean Heilman Grier, Senior Procurement Negotiator, Office of the United States Trade Representative, (202) 395–5097, or Melida Hodgson, Assistant General Counsel, Office of the United States Trade Representative, (202) 395–9512. On May 18, 2004, the United States and Australia entered into the United States-Australia Free Trade Agreement (‘‘the USAFTA’’). Chapter 15 of the USAFTA sets forth certain obligations with respect to government procurement of goods and services, as specified in Annex 15–A of the USAFTA. On August 3, 2004, the President signed into law the United States-Australia Free Trade Agreement Implementation Act (‘‘the USAFTA Act’’) (Pub. L. 108–286, 19 U.S.C. 3805 note). In section 101 of the USAFTA Act, the Congress approved the USAFTA and the statement of administrative action proposed to implement the USAFTA that the President submitted to Congress. The USAFTA entered into force on January 1, 2005. Section 1–201 of Executive Order 12260 of December 31, 1980 (46 FR 1653) delegates the functions of the President under Sections 301 and 302 of the Trade Agreements Act of 1979 (‘‘the Trade Agreements Act’’) (19 U.S.C. 2511, 2512) to the United States Trade Representative. Now, therefore, I, Robert B. Zoellick, United States Trade Representative, in conformity with the provisions of Sections 301 and 302 of the Trade Agreements Act, and Executive Order 12260, and in order to carry out U.S. obligations under Chapter 15 of the USAFTA, do hereby determine that: 1. Australia is a country, which, pursuant to the USAFTA, will provide appropriate reciprocal competitive government procurement opportunities to United States products and suppliers of such products. In accordance with section 301(b)(3) of the Trade Agreements Act, Australia is designated for purposes of section 301(a) of the Trade Agreements Act. 2. With respect to eligible products of Australia (i.e., goods and services covered by the Schedules of the United States in Annex 15–A of the USAFTA) and suppliers of such products, the application of any law, procedure, or practice regarding government procurement that would, if applied to such products and suppliers, result in treatment less favorable than accorded— FOR FURTHER INFORMATION CONTACT: E:\FR\FM\31JAN1.SGM 31JAN1

Agencies

[Federal Register Volume 70, Number 19 (Monday, January 31, 2005)]
[Notices]
[Pages 4911-4913]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-353]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51071; File No. SR-Phlx-2005-05]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Order Granting Accelerated Approval to a Proposed 
Rule Change to Increase Position Limits and Exercise Limits for Options 
on Standard and Poor's Depositary Receipts (SPDRs[supreg])

January 21, 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 January 19, 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 and 
II below, which Items have been prepared by the Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons. In addition, the 
Commission is granting accelerated approval of the proposed rule 
change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Exchange Rule 1001, Position Limits, 
to increase position limits and exercise limits for options on the 
Standard and Poor's Depositary Receipts (``SPDRs[supreg]'').\3\ 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 Room.
---------------------------------------------------------------------------

    \3\ ``Standard & Poor's[supreg]'', ``S&P[supreg]'', ``S&P 
500[supreg]'', ``Standard & Poor's 500'', and ``500'' are trademarks 
of The McGraw-Hill Companies, Inc. Neither Standard & Poor's nor its 
index compilation agent makes any recommendation concerning the 
advisability of investing in options on SPDRs[supreg].
---------------------------------------------------------------------------

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 had received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
item III 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
    The Exchange proposes to amend Exchange Rule 1001 to increase the 
position limits and exercise limits \4\ applicable to options on SPDRs 
from 75,000 to 300,000 contracts on the same side of the market. The 
Exchange began trading options on SPDRs on the Exchange's electronic 
trading platform for options, Phlx XL, on January 10, 2005. Given the 
expected institutional demand for options on SPDRs, the Exchange 
believes that the current equity position limit of 75,000 contracts \5\ 
is too low and could be a deterrent to the successful trading of the 
product. Options on SPDRs are 1/10th the size of options on the 
Standard and Poor's 500 Index (``SPX''). Thus, a position limit of 
75,000 contracts in options on SPDRs is equivalent to a

[[Page 4912]]

7,500 contract position limit in options on SPX. Traders who trade 
options on SPDRs to hedge positions in SPX options are likely to find a 
position limit of 75,000 contracts in options on SPDRs too restrictive, 
which may adversely affect the Exchange's ability to provide liquidity 
in this product.
---------------------------------------------------------------------------

    \4\ Exchange Rule 1002, Exercise Limits, refers to exercise 
limits that correspond to aggregate long positions as described in 
Exchange Rule 1001. The position limit established in a given option 
under Exchange Rule 1001 is also the exercise limit for such option.
    \5\ See Exchange Rule 1001, Commentary .05(a).
---------------------------------------------------------------------------

    Comparable products, such as options on the Nasdaq-100 Index 
Tracking Stock (``QQQ''),\6\ are subject to a 300,000 contract 
limit.\7\ The Exchange proposes that options on SPDRs similarly be 
subject to position limits and exercise limits of 300,000 contracts. 
The Exchange believes that increasing position limits and exercise 
limits for options on SPDRs would lead to a more liquid and competitive 
market environment for options on SPDRs that would benefit customers 
interested in this product.
---------------------------------------------------------------------------

    \6\ The Nasdaq-100[supreg], Nasdaq-100 Index[supreg], 
Nasdaq[supreg], The Nasdaq Stock Market[supreg], Nasdaq-100 
SharesSM, Nasdaq-100 TrustSM, Nasdaq-100 Index 
Tracking StockSM, and QQQSM are trademarks or 
service marks of The Nasdaq Stock Market, Inc. (``Nasdaq'') and have 
been licensed for use for certain purposes by the Phlx pursuant to a 
license agreement with Nasdaq. The Nasdaq-100 Index[supreg] 
(``Index'') is determined, composed, and calculated by Nasdaq 
without regard to the licensee, the Nasdaq-100 TrustSM, 
or the beneficial owners of Nasdaq-100 SharesSM. Nasdaq 
has complete control and sole discretion in determining, comprising, 
or calculating the Index or in modifying in any way its method for 
determining, comprising, or calculating the Index in the future.
    \7\ See Exchange Rule 1001.
---------------------------------------------------------------------------

    Consistent with the reporting requirement for QQQ options, the 
Exchange would require that each member or member organization that 
maintains a position on the same side of the market, for its own 
account or for the account of a customer, report certain 
information.\8\ This data would include, but would not be limited to, 
the option position, whether such position is hedged and if so, a 
description of the hedge and if applicable, the collateral used to 
carry the position. Exchange specialists and Registered Options Traders 
(``ROTs'') would continue to be exempt from this reporting requirement 
as specialist and ROT information can be accessed through the 
Exchange's market surveillance systems. In addition, the general 
reporting requirement for customer accounts that maintain an aggregate 
position of 200 or more option contracts would remain at this level for 
options on SPDRs.\9\
---------------------------------------------------------------------------

    \8\ See Exchange Rule 1003.
    \9\ See Exchange Rule 1003.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
section 6(b) of the Act,\10\ in general, and furthers the objectives of 
section 6(b)(5) of the Act,\11\ in particular, in that it is designed 
to perfect the mechanisms of a free and open market and the national 
market system, promote just and equitable principles of trade and 
protect investors and the public interest.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange 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

    Written comments on the proposed rule change were neither solicited 
nor received.

III. 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-2005-05 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-Phlx-2005-05. 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 Room. 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 publicly available. All submissions should refer to 
File Number SR-Phlx-2005-05 and should be submitted on or before 
February 22, 2005.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act and the rules and 
regulations thereunder, applicable to a national securities 
exchange,\12\ and, in particular, the requirements of Section 6(b)(5) 
of the Act.\13\ Specifically, the Commission finds that the proposed 
rule change should ensure that the Exchange's position limits and 
exercise limits on options on SPDRs provide its members and member 
organizations with sufficient flexibility to participate in the market 
for such options in a manner that should provide greater depth and 
liquidity for all market participants.
---------------------------------------------------------------------------

    \12\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
    \13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission finds good cause for approving this proposed rule 
change prior to the thirtieth day after publication of notice thereof 
in the Federal Register. Specifically, the Commission believes that 
granting accelerated approval to the proposed rule change should permit 
greater depth and liquidity in the options on SPDRs market that should 
benefit all market participants, including retail investors. Because 
the higher position limits and exercise limits mirror those that the 
Commission has previously approved for like products, the Commission 
believes it is consistent with sections 6(b)(5) \14\ and 19(b)(2) \15\ 
of the Act to approve the Phlx's proposed rule change on an accelerated 
basis.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78f(b)(5).
    \15\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\16\ that the proposed rule change (SR-Phlx-2005-

[[Page 4913]]

05) is hereby approved on an accelerated basis.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

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

Margaret H. McFarland,
Deputy Secretary.
 [FR Doc. E5-353 Filed 1-28-05; 8:45 am]
BILLING CODE 8010-01-P
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