Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Order Approving a Proposed Rule Change Relating to Phlx Rule 1023, 48794 [E5-4534]
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Federal Register / Vol. 70, No. 160 / Friday, August 19, 2005 / Notices
(A) By order approve such proposed
rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.4
Jonathan G. Katz,
Secretary.
[FR Doc. E5–4535 Filed 8–18–05; 8:45 am]
IV. Solicitation of Comments
BILLING CODE 8010–01–P
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
No. SR–NYSE–2005–54 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52254; File No. SR–Phlx–
2005–36]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Order Approving a Proposed Rule
Change Relating to Phlx Rule 1023
August 15, 2005.
I. Introduction
On May 19, 2005, the Philadelphia
Stock Exchange, Inc. (‘‘Phlx’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
Paper Comments
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
• Send paper comments in triplicate
of 1934 (‘‘Act’’) 1 and Rule 19b–4
to Jonathan G. Katz, Secretary,
thereunder,2 a proposal to amend Phlx
Securities and Exchange Commission,
Rule 1023, ‘‘Specialist’s Transactions
Station Place, 100 F Street, NE.,
with Listed Company.’’ The proposed
Washington, DC 20549–9303.
rule change was published for comment
All submissions should refer to File
in the Federal Register on July 7, 2005.3
Number SR–NYSE–2005–54. This file
The Commission received no comments
number should be included on the
regarding the proposal. This order
subject line if e-mail is used. To help the approves the proposed rule change.
Commission process and review your
II. Description of the Proposal
comments more efficiently, please use
Phlx Rule 1023(a) currently prohibits
only one method. The Commission will
a specialist from effecting any business
post all comments on the Commissions
transaction with a company or any
Internet Web site (https://www.sec.gov/
officer, director, or 10% shareholder of
rules/sro.shtml). Copies of the
a company underlying an option in
submission, all subsequent
which the specialist is registered. The
amendments, all written statements
Phlx proposes to amend Phlx Rule
with respect to the proposed rule
1023(a) to exclude from its restriction
change that are filed with the
on an option specialist’s business
Commission, and all written
transactions with the issuer of the
communications relating to the
underlying stock and related persons
proposed rule change between the
Commission and any person, other than business transactions in goods and
services on terms generally available to
those that may be withheld from the
the public. The Phlx believes that the
public in accordance with the
proposed exception will not provide the
provisions of 5 U.S.C. 552, will be
option specialist with access to material
available for inspection and copying in
non-public information concerning the
the Commission’s Public Reference
Room. Copies of such filing also will be issuer or give rise to a control
relationship between the issuer and the
available for inspection and copying at
specialist.
the principal office of the NYSE. All
comments received will be posted
III. Discussion
without change; the Commission does
The Commission finds that the
not edit personal identifying
proposed rule change is consistent with
information from submissions. You
the requirements of the Act and the
should submit only information that
you wish to make available publicly. All
4 17 CFR 200.30–3(a)(12).
submissions should refer to File
1 15 U.S.C. 78s(b)(1).
Number SR–NYSE–2005–54 and should
2 17 CFR 240.19b–4.
be submitted on or before September 9,
3 See Securities Exchange Act Release No. 51928
2005.
(June 28, 2005), 70 FR 39351.
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rules and regulations thereunder
applicable to a national securities
exchange.4 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,5 which requires,
among other things, that the rules of a
national securities exchange be
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
The Commission believes that the
proposal will ease the restriction in Phlx
Rule 1023(a) on a specialist’s business
transactions with the issuer of the stock
underlying an option in which the
specialist is registered and related
persons without providing the specialist
with access to material non-public
information regarding the issuer or
giving rise to a control relationship
between the issuer and the specialist. In
addition, the Commission notes that
Phlx Rule 1023(a), as amended, is
substantially similar to Chicago Board
Options Exchange Rule (‘‘CBOE’’)
8.91(b).6
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,7 that the
proposed rule change (SR–Phlx–2005–
36) is approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
Jonathan G. Katz,
Secretary.
[FR Doc. E5–4534 Filed 8–18–05; 8:45 am]
BILLING CODE 8010–01–P
4 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
5 15 U.S.C. 78f(b)(5).
6 CBOE Rule 8.9(b) provides, in part, that
‘‘Neither a DPM for an equity option, nor any
member affiliated with the DPM, shall engage in
any material business transaction with the issuer of
the security that underlies the equity option or with
any officer, director, or 10% shareholder of the
issuer of the security * * *. For purposes of this
paragraph (b), a material business transaction shall
be deemed to be a transaction which is material in
value either to the issuer or the DPM, would
provide access to material non-public information
relating to the issuer, or would give rise to a control
relationship between the issuer and the DPM.
Notwithstanding the foregoing, the receipt of
routine business services, goods, materials, or
insurance, on terms that would be generally
available shall not be deemed a material business
transaction for the purposes of this paragraph (b).’’
7 15 U.S.C. 78s(b)(2).
8 17 CFR 200.30–3(a)(12).
E:\FR\FM\19AUN1.SGM
19AUN1
]]>Agencies
[Federal Register Volume 70, Number 160 (Friday, August 19, 2005)]
[Notices]
[Page 48794]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4534]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52254; File No. SR-Phlx-2005-36]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Order Approving a Proposed Rule Change Relating to Phlx Rule 1023
August 15, 2005.
I. Introduction
On May 19, 2005, the Philadelphia Stock Exchange, Inc. (``Phlx'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposal to amend Phlx Rule 1023, ``Specialist's Transactions with
Listed Company.'' The proposed rule change was published for comment in
the Federal Register on July 7, 2005.\3\ The Commission received no
comments regarding the proposal. This order approves the proposed rule
change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 51928 (June 28,
2005), 70 FR 39351.
---------------------------------------------------------------------------
II. Description of the Proposal
Phlx Rule 1023(a) currently prohibits a specialist from effecting
any business transaction with a company or any officer, director, or
10% shareholder of a company underlying an option in which the
specialist is registered. The Phlx proposes to amend Phlx Rule 1023(a)
to exclude from its restriction on an option specialist's business
transactions with the issuer of the underlying stock and related
persons business transactions in goods and services on terms generally
available to the public. The Phlx believes that the proposed exception
will not provide the option specialist with access to material non-
public information concerning the issuer or give rise to a control
relationship between the issuer and the specialist.
III. Discussion
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.\4\ In
particular, the Commission finds that the proposed rule change is
consistent with Section 6(b)(5) of the Act,\5\ which requires, among
other things, that the rules of a national securities exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest.
---------------------------------------------------------------------------
\4\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission believes that the proposal will ease the restriction
in Phlx Rule 1023(a) on a specialist's business transactions with the
issuer of the stock underlying an option in which the specialist is
registered and related persons without providing the specialist with
access to material non-public information regarding the issuer or
giving rise to a control relationship between the issuer and the
specialist. In addition, the Commission notes that Phlx Rule 1023(a),
as amended, is substantially similar to Chicago Board Options Exchange
Rule (``CBOE'') 8.91(b).\6\
---------------------------------------------------------------------------
\6\ CBOE Rule 8.9(b) provides, in part, that ``Neither a DPM for
an equity option, nor any member affiliated with the DPM, shall
engage in any material business transaction with the issuer of the
security that underlies the equity option or with any officer,
director, or 10% shareholder of the issuer of the security * * *.
For purposes of this paragraph (b), a material business transaction
shall be deemed to be a transaction which is material in value
either to the issuer or the DPM, would provide access to material
non-public information relating to the issuer, or would give rise to
a control relationship between the issuer and the DPM.
Notwithstanding the foregoing, the receipt of routine business
services, goods, materials, or insurance, on terms that would be
generally available shall not be deemed a material business
transaction for the purposes of this paragraph (b).''
---------------------------------------------------------------------------
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (SR-Phlx-2005-36) is approved.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jonathan G. Katz,
Secretary.
[FR Doc. E5-4534 Filed 8-18-05; 8:45 am]
BILLING CODE 8010-01-P
