Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto Relating to the Modification of the Definition of Firm Customer Quote Size and the Removal of Certain Restrictions on Sending Secondary P/A Orders Under the Linkage Plan, 55443-55445 [05-18768]
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Federal Register / Vol. 70, No. 182 / Wednesday, September 21, 2005 / Notices
Section 6(b)(1) of the Act,10 in
particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, and to remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system.
IV. Solicitation of Comments
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.
• 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–2005–53 on the
subject line.
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.
Paper Comments
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange requested that the
proposed rule change be given
expedited review and accelerated
approval pursuant to Section 19(b)(2) of
the Act. The Exchange believes that the
proposed rule proposal is consistent
with the requirements of Section 6(b)(5)
of the Act and the rules and regulations
thereunder applicable to a national
securities exchange. In particular, the
Exchange believes that its proposal to
implement the PL Order adds
significant value to investors and Users,
will enhance available order interaction
opportunities, and does not raise any
new regulatory issues. Accordingly, the
Exchange believes that its proposal will
facilitate transactions in securities,
remove impediments to and perfect the
mechanism of a free and open market
and a national system, and, in general,
protect investors and the public interest.
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 Exchange 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, as
amended, should be disapproved.
10 15
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
• 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-PCX–2005–53. 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, Station Place, 100 F Street, NE.,
Washington, DC 20549. Copies of such
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–
2005–53 and should be submitted on or
before October 12, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Jonathan G. Katz,
Secretary.
[FR Doc. 05–18762 Filed 9–20–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52425; File No. SR–Phlx–
2005–27]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing of Proposed Rule
Change and Amendment No. 1 Thereto
Relating to the Modification of the
Definition of Firm Customer Quote Size
and the Removal of Certain
Restrictions on Sending Secondary P/
A Orders Under the Linkage Plan
September 14, 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 April 26,
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 Phlx. On
September 2, 2005, the Exchange
submitted Amendment No. 1 to the
proposed rule change.3 The Commission
is publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
rules governing the operation of the
intermarket option linkage to conform
with a proposed amendment 4 to the
Plan for the Purpose of Creating and
Operating an Intermarket Option
Linkage (‘‘Linkage Plan’’).5 The
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b-4.
3 In Amendment No. 1, the Exchange made
clarifying changes to the proposed rule text relating
to the availability of Participant exchanges’
automatic execution system.
4 See Securities Exchange Act Release No. 52401
(September 9, 2005) (File No. 4–429).
5 On July 28, 2000, the Commission approved a
national market system plan for the purpose of
creating and operating an intermarket option market
linkage proposed by the American Stock Exchange,
LLC, Chicago Board Options Exchange,
Incorporated, and International Securities
Exchange, Inc. See Securities Exchange Act Release
No. 43086 (July 28, 2000), 65 FR 48023 (August 4,
1 15
U.S.C. 78f(b)(1).
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14:40 Sep 20, 2005
55443
Continued
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E:\FR\FM\21SEN1.SGM
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55444
Federal Register / Vol. 70, No. 182 / Wednesday, September 21, 2005 / Notices
Exchange is proposing to amend: (i)
Exchange Rule 1083 by modifying the
definition of Firm Customer Quote Size
(‘‘FCQS’’), and (ii) Exchange Rule 1084
by deleting certain restrictions on
sending secondary Principal Acting as
Agent Orders (‘‘P/A Orders’’)6 pursuant
to the Linkage Plan. The text of the
proposed rule change, as amended, is
available on Phlx’s Web site at
(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, as amended,
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 amend the definition of
FCQS to reflect current practices of the
respective Linkage Plan participants
(‘‘Participants’’)7 relating to
disseminated size that were not in
existence at the time the Linkage Plan
was originally adopted. At the time the
Linkage Plan was originally adopted,
options quote sizes generally were not
disseminated through the Options Price
Reporting Authority and most
Participants employed automatic
execution systems that guaranteed
2000). Subsequently, upon separate requests by the
Phlx, Pacific Exchange, Inc. and Boston Stock
Exchange, Inc. the Commission issued orders to
permit these exchanges to participate in the Linkage
Plan. See Securities Exchange Act Release Nos.
43573 (November 16, 2000), 65 FR 70850
(November 28, 2000), 43574 (November 16, 2000),
65 FR 70851 (November 28, 2000) and 49198
(February 5, 2004), 69 FR 7029 (February 12, 2004).
6 A P/A Order is an order for the principal
account of a specialist (or equivalent entity on
another Participant Exchange that is authorized to
represent Public Customer orders), reflecting the
terms of a related unexecuted Public Customer
order for which the specialist is acting as agent. See
Exchange Rule 1083(k)(i).
7 Section 2(24) of the Linkage Plan defines
‘‘Participant’’ as an Eligible Exchange whose
participation in the Linkage Plan has become
effective pursuant to Section 4(c) of the Linkage
Plan.
VerDate Aug<31>2005
14:40 Sep 20, 2005
Jkt 205001
automatic executions of orders under a
certain contract size (which was
generally a static number). At that time,
the FCQS was calculated based on the
number of contracts the sending and
receiving Participants guaranteed they
would automatically execute. Now that
all Participants disseminate dynamic
quotes with size, the Exchange believes
that it is appropriate to calculate the
FCQS based on the size of the
disseminated quotation of the
Participant receiving the P/A Order.
Accordingly, the Exchange proposes to
amend Exchange Rule 1083(g) to define
FCQS as the size of the disseminated
quotation of the Participant receiving
the P/A Order.
Another purpose of the proposed rule
change is to eliminate a 15-second
waiting period for sending a secondary
P/A Order pursuant to Exchange Rule
1084(c)(2), which governs the manner in
which a P/A Order larger than the FCQS
can be broken into smaller P/A Orders.
Currently, an initial P/A Order can be
sent to the Participant whose
disseminated price that is the National
Best Bid or Offer (‘‘NBBO’’) for a size
that is the FCQS. If the receiving
Participant that is disseminating the
NBBO continues to disseminate the
same price after 15 seconds from the
execution of the initial P/A Order, a
secondary P/A Order can be sent for at
least the lesser of: (i) The size of the
disseminated quote; (ii) 100 contracts;
or (iii) the remainder of the customer
order underlying the P/A Orders. The
Exchange proposes to eliminate the 15second wait period because the dynamic
quotes with size now employed by the
Participants obviate the need for a
manual quote refresh period for P/A
Orders. The Exchange also proposes to
amend Exchange Rule 1084 to clarify
that an automatic execution of a P/A
Order is not required if the P/A Order
is larger than the Firm Customer Quote
Size, and that automatic execution will
be provided for P/A orders at or below
the FCQS, if automatic execution is
available.8
2. Statutory Basis
The Exchange believes that its
proposed rule change, as amended, is
consistent with Section 6(b) of the Act 9
in general, and furthers the objectives of
Section 6(b)(5) of the Act 10 in
particular, in that it is designed to
8 The Commission made technical corrections to
this sentence pursuant to a telephone conversation
with Phlx, as noted herein. Telephone call between
Tim Fox, Special Counsel, Commission, and
Richard Rudolph, Vice President and Counsel, Phlx
on September 12, 2005.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00114
Fmt 4703
Sfmt 4703
perfect the mechanisms of a free and
open market and a national market
system, protect investors and the public
interest and promote just and equitable
principles of trade, by amending the
definition of FCQS to reflect current
practices of the Participants relating to
disseminated size, and by eliminating
the 15-second wait period for the
sending of secondary P/A Orders to
reflect current systems in place on the
various Participants.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change, as amended,
would 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
Written comments 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 Phlx 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, as
amended, 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–Phlx–2005–27 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
E:\FR\FM\21SEN1.SGM
21SEN1
Federal Register / Vol. 70, No. 182 / Wednesday, September 21, 2005 / Notices
Station Place, 100 F Street, NE.,
Washington, DC 20549–9303.
All submissions should refer to File
Number SR–Phlx–2005–27. 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 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-2005–27 and should
be submitted on or before October 12,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Jonathan G. Katz,
Secretary.
[FR Doc. 05–18768 Filed 9–20–05; 8:45 am]
BILLING CODE 8010–01–P
DEPARTMENT OF STATE
[Public Notice 5191]
Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘The
Terracotta Warriors of Emperor Qin
Shihuang’’
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
11 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
14:40 Sep 20, 2005
Jkt 205001
55445
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
‘‘The Terracotta Warriors of Emperor
Qin Shihuang,’’ 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 or custodians. I also
determine that the exhibition or display
of the exhibit objects at The John F.
Kennedy Center for the Performing Arts,
Washington, DC, from on or about
October 1, 2005 to on or about October
31, 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 Wolodymyr
R. Sulzynsky, the Office of the Legal
Adviser, Department of State,
(telephone: 202/453–8050). The address
is Department of State, SA–44, 301 4th
Street, SW., Room 700, Washington, DC
20547–0001.
1998 that is separate from the London
Convention. It sets forth a regime that is
more comprehensive, more stringent,
and more protective of the marine
environment than the London
Convention.
The public meeting will be held at the
Department of State located at 2201 C
Street, NW., Washington, DC 20520 in
Room 7835. Interested members of the
public are invited to attend, up to the
capacity of the room.
For further information and preclearance into the Department of State,
please contact: Anne Chick, Office of
Ocean Affairs, U.S. Department of State,
Room 5805, 2201 C Street, NW.,
Washington, DC 20520, telephone (202)
647–3879, or email chickal@state.gov by
Monday, October 17, 2005.
Dated: September 14, 2005.
C. Miller Crouch,
Principal Deputy Assistant Secretary for
Educational and Cultural Affairs, Department
of State.
[FR Doc. 05–18848 Filed 9–20–05; 8:45 am]
Notice of Meeting of the Industry Trade
Advisory Committee on Small and
Minority Business (ITAC–11)
BILLING CODE 4710–08–P
DEPARTMENT OF STATE
[Public Notice 5166]
Shipping Coordinating Committee;
Notice of Meeting
The Department of State’s Shipping
Coordinating Committee; Subcommittee
on Ocean Dumping will hold an open
meeting on Wednesday, October 19,
2005, from 1 p.m. to 3 p.m. to obtain
public comment on the issues to be
addressed at the October 24–28, 2005,
Twenty-seventh Consultative Meeting of
Contracting Parties to the London
Convention. The London Convention of
1972 is the global international treaty
regulating ocean dumping. The meeting
will also review the results of the
Twenty-eighth Scientific Group Meeting
of the London Convention that was held
in London, United Kingdom from May
23–27, 2005.
In addition, participants at this
meeting will discuss plans for
ratification, by the United States, of the
1996 London Protocol. The Protocol is
a treaty signed by the United States in
PO 00000
Frm 00115
Fmt 4703
Sfmt 4703
Dated: September 15, 2005.
Clayton Diamond,
Executive Secretary, Shipping Coordinating
Committee, Department of State.
[FR Doc. 05–18849 Filed 9–20–05; 8:45 am]
BILLING CODE 4710–09–P
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
Office of the United States
Trade Representative.
ACTION: Notice of a partially opened
meeting.
AGENCY:
SUMMARY: The Industry Trade Advisory
Committee on Small and Minority
Business (ITAC–11) will hold a meeting
on Monday, October 3, 2005, from 9
a.m. to 3 p.m. The meeting will be
opened to the public from 9 a.m. to 12
p.m. and closed to the public from 12
p.m. to 3 p.m.
DATES: The meeting is scheduled for
October 3, 2005, unless otherwise
notified.
The meeting will be held at
the Marriott Greensboro High Point—
Magnolia Inn, located at One Marriott
Drive, Greensboro, North Carolina
27409 (336) 852–6450.
FOR FURTHER INFORMATION CONTACT:
Heather Tomasetti, DFO for ITAC–11 at
(202) 482–3487, Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION: During the
opened portion of the meeting the
following agenda items will be
considered.
• North Carolina Trade Policy
Agenda Update by Senator Kay Hagan
ADDRESSES:
E:\FR\FM\21SEN1.SGM
21SEN1
]]>Agencies
[Federal Register Volume 70, Number 182 (Wednesday, September 21, 2005)]
[Notices]
[Pages 55443-55445]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-18768]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52425; File No. SR-Phlx-2005-27]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto
Relating to the Modification of the Definition of Firm Customer Quote
Size and the Removal of Certain Restrictions on Sending Secondary P/A
Orders Under the Linkage Plan
September 14, 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 April 26, 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 Phlx. On September
2, 2005, the Exchange submitted Amendment No. 1 to the proposed rule
change.\3\ The Commission is publishing this notice to solicit comments
on the proposed rule change, as amended, from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ In Amendment No. 1, the Exchange made clarifying changes to
the proposed rule text relating to the availability of Participant
exchanges' automatic execution system.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its rules governing the operation of
the intermarket option linkage to conform with a proposed amendment \4\
to the Plan for the Purpose of Creating and Operating an Intermarket
Option Linkage (``Linkage Plan'').\5\ The
[[Page 55444]]
Exchange is proposing to amend: (i) Exchange Rule 1083 by modifying the
definition of Firm Customer Quote Size (``FCQS''), and (ii) Exchange
Rule 1084 by deleting certain restrictions on sending secondary
Principal Acting as Agent Orders (``P/A Orders'')\6\ pursuant to the
Linkage Plan. The text of the proposed rule change, as amended, is
available on Phlx's Web site at (www.phlx.com), at the Phlx's Office of
the Secretary, and at the Commission's Public Reference Room.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 52401 (September 9,
2005) (File No. 4-429).
\5\ On July 28, 2000, the Commission approved a national market
system plan for the purpose of creating and operating an intermarket
option market linkage proposed by the American Stock Exchange, LLC,
Chicago Board Options Exchange, Incorporated, and International
Securities Exchange, Inc. See Securities Exchange Act Release No.
43086 (July 28, 2000), 65 FR 48023 (August 4, 2000). Subsequently,
upon separate requests by the Phlx, Pacific Exchange, Inc. and
Boston Stock Exchange, Inc. the Commission issued orders to permit
these exchanges to participate in the Linkage Plan. See Securities
Exchange Act Release Nos. 43573 (November 16, 2000), 65 FR 70850
(November 28, 2000), 43574 (November 16, 2000), 65 FR 70851
(November 28, 2000) and 49198 (February 5, 2004), 69 FR 7029
(February 12, 2004).
\6\ A P/A Order is an order for the principal account of a
specialist (or equivalent entity on another Participant Exchange
that is authorized to represent Public Customer orders), reflecting
the terms of a related unexecuted Public Customer order for which
the specialist is acting as agent. See Exchange Rule 1083(k)(i).
---------------------------------------------------------------------------
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, as
amended, 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 amend the definition
of FCQS to reflect current practices of the respective Linkage Plan
participants (``Participants'')\7\ relating to disseminated size that
were not in existence at the time the Linkage Plan was originally
adopted. At the time the Linkage Plan was originally adopted, options
quote sizes generally were not disseminated through the Options Price
Reporting Authority and most Participants employed automatic execution
systems that guaranteed automatic executions of orders under a certain
contract size (which was generally a static number). At that time, the
FCQS was calculated based on the number of contracts the sending and
receiving Participants guaranteed they would automatically execute. Now
that all Participants disseminate dynamic quotes with size, the
Exchange believes that it is appropriate to calculate the FCQS based on
the size of the disseminated quotation of the Participant receiving the
P/A Order. Accordingly, the Exchange proposes to amend Exchange Rule
1083(g) to define FCQS as the size of the disseminated quotation of the
Participant receiving the P/A Order.
---------------------------------------------------------------------------
\7\ Section 2(24) of the Linkage Plan defines ``Participant'' as
an Eligible Exchange whose participation in the Linkage Plan has
become effective pursuant to Section 4(c) of the Linkage Plan.
---------------------------------------------------------------------------
Another purpose of the proposed rule change is to eliminate a 15-
second waiting period for sending a secondary P/A Order pursuant to
Exchange Rule 1084(c)(2), which governs the manner in which a P/A Order
larger than the FCQS can be broken into smaller P/A Orders. Currently,
an initial P/A Order can be sent to the Participant whose disseminated
price that is the National Best Bid or Offer (``NBBO'') for a size that
is the FCQS. If the receiving Participant that is disseminating the
NBBO continues to disseminate the same price after 15 seconds from the
execution of the initial P/A Order, a secondary P/A Order can be sent
for at least the lesser of: (i) The size of the disseminated quote;
(ii) 100 contracts; or (iii) the remainder of the customer order
underlying the P/A Orders. The Exchange proposes to eliminate the 15-
second wait period because the dynamic quotes with size now employed by
the Participants obviate the need for a manual quote refresh period for
P/A Orders. The Exchange also proposes to amend Exchange Rule 1084 to
clarify that an automatic execution of a P/A Order is not required if
the P/A Order is larger than the Firm Customer Quote Size, and that
automatic execution will be provided for P/A orders at or below the
FCQS, if automatic execution is available.\8\
---------------------------------------------------------------------------
\8\ The Commission made technical corrections to this sentence
pursuant to a telephone conversation with Phlx, as noted herein.
Telephone call between Tim Fox, Special Counsel, Commission, and
Richard Rudolph, Vice President and Counsel, Phlx on September 12,
2005.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposed rule change, as amended, is
consistent with Section 6(b) of the Act \9\ in general, and furthers
the objectives of Section 6(b)(5) of the Act \10\ in particular, in
that it is designed to perfect the mechanisms of a free and open market
and a national market system, protect investors and the public interest
and promote just and equitable principles of trade, by amending the
definition of FCQS to reflect current practices of the Participants
relating to disseminated size, and by eliminating the 15-second wait
period for the sending of secondary P/A Orders to reflect current
systems in place on the various Participants.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 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, as
amended, would 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
Written comments 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 Phlx 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, as amended, 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 rule-comments@sec.gov. Please include
File Number SR-Phlx-2005-27 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission,
[[Page 55445]]
Station Place, 100 F Street, NE., Washington, DC 20549-9303.
All submissions should refer to File Number SR-Phlx-2005-27. 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 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-2005-27 and should be submitted on
or before October 12, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 05-18768 Filed 9-20-05; 8:45 am]
BILLING CODE 8010-01-P
