Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change Relating to Dissemination of the Underlying Index Value for Trust Shares and Index Fund Shares, 60125-60127 [E5-5653]

Download as PDF Federal Register / Vol. 70, No. 198 / Friday, October 14, 2005 / Notices 2. Statutory Basis The Exchange believes that its proposal, as amended, is consistent with Section 6(b) of the Act 32 in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act 33 in particular, in that it is an equitable allocation of reasonable dues, fees, and other charges among the Phlx’s members. B. Self-Regulatory Organization’s Statement on Burden on Competition 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 proposed rule change, as amended, has been designated as a fee change pursuant to Section 19(b)(3)(A)(ii) of the Act 34 and Rule 19b–4(f)(2) 35 thereunder, because it establishes or changes a due, fee, or other charge imposed by the Exchange. Accordingly, the proposal will take effect upon filing with the Commission. At any time within 60 days of the filing of such proposed rule change, as amended, 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.36 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 specific terms governing the orders that qualify for payment and the amounts to be paid). 32 15 U.S.C. 78f(b). 33 15 U.S.C. 78f(b)(4)–(5). 34 15 U.S.C. 78s(b)(3)(A)(ii). 35 17 CFR 240.19b–4(f)(2). 36 The effective date of the original proposed rule change is September 29, 2005, the effective date of Amendment No. 1 is October 3, 2005. For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposal, the Commission considers the period to commence on October 3, 2005, the date on which the Exchange submitted Amendment No. 1. 13:54 Oct 13, 2005 Jkt 208001 the Act. Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION Electronic Comments [Release No. 34–52572; File No. SR–Phlx– 2005–57] • 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–2005–58 on the subject line. Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change Relating to Dissemination of the Underlying Index Value for Trust Shares and Index Fund Shares Paper Comments The Exchange does not believe that the proposed rule change, as amended, will impose any inappropriate burden on competition not necessary or appropriate in furtherance of the purposes of the Act. VerDate Aug<31>2005 60125 October 7, 2005. • Send paper comments in triplicate to Jonathan G. Katz, Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549–9303. All submissions should refer to File Number SR–Phlx–2005–58. 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, as amended, 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 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–2005–58 and should be submitted on or before November 4, 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 September 21, 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 Phlx. 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. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.37 J. Lynn Taylor, Assistant Secretary. [FR Doc. E5–5645 Filed 10–13–05; 8:45 am] BILLING CODE 8010–01–P I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Phlx proposes to amend Sections (i) and (l) of Phlx Rule 803, the listing standards for two kinds of exchange traded funds, Trust Shares and Index Fund Shares, to provide that the current value of the underlying index must be widely disseminated by one or more major market data vendors at least every 15 seconds during the time the Trust Share or Index Fund Share trades on the Exchange. The text of the proposed rule change is set forth below. Proposed new language is in italics; proposed deletions are in brackets. * * * * * Rule 803 Criteria for Listing—Tier I * * * * * (a)–(h) No Change. (i) Trust Shares (1)–(10) No Change. (11) The Exchange may approve a series of Trust Shares for trading, whether by listing or pursuant to unlisted trading privileges, pursuant to Rule 19b–4(e) under the Securities Exchange Act of 1934 provided each of the following criteria is satisfied: (a) No Change. 1 15 37 17 PO 00000 CFR 200.30–3(a)(12). Frm 00066 Fmt 4703 Sfmt 4703 2 17 E:\FR\FM\14OCN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 14OCN1 60126 Federal Register / Vol. 70, No. 198 / Friday, October 14, 2005 / Notices (b) Index Methodology and Calculation. (i) No Change. (ii) No Change. (iii) The current index value will be widely disseminated by one or more major market data vendors at least every 15 seconds during the time when the Trust Shares trade on the Exchange [over the Consolidated Tape Association’s Network B]. (c)–(h) No Change. (j) No Change. (k) No Change. (l) Index Fund Shares (1)–(5) No Change. (6) Listing Pursuant to SEC Rule 19b– 4(e). The Exchange may approve a series of Index Fund Shares for listing pursuant to Rule 19b–4(e) under the Securities Exchange Act of 1934 provided each of the following criteria is satisfied: (A) No Change. (B) Index Methodology and Calculation. (I) The index underlying a series of Index Fund Shares will be calculated based on either the market capitalization, modified market capitalization, price, equal-dollar or modified equal-dollar weighting methodology; (II) If the index is maintained by a broker-dealer, the broker-dealer shall erect a ‘‘fire wall’’ around the personnel who have access to information concerning changes and adjustments to the index and the index shall be calculated by a third party who is not a broker-dealer; and (III) The current index value will be widely disseminated by one or more major market data vendors at least every 15 seconds during the time when the Index Fund Shares trade on the Exchange [over the Consolidated Tape Association’s Network B]. (C)–(H) No Change. (7)–(8) No Change. * * * * * 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. VerDate Aug<31>2005 13:54 Oct 13, 2005 Jkt 208001 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Sections (i)(11) and (l)(6) of Phlx Rule 803 provide listing standards for Trust Shares and Index Fund Shares, respectively, to permit listing and trading of these securities pursuant to Rule 19b–4(e) under the Act.3 Rule 19b– 4(e) provides that the listing and trading of a new derivative securities product by a self-regulatory organization shall not be deemed a proposed rule change, pursuant to paragraph (c)(1) of Rule 19b–4, if the Commission has approved, pursuant to Section 19(b) of the Act, the self-regulatory organization’s trading rules, procedures and listing standards for the product class that would include the new derivative securities product, and the self-regulatory organization has a surveillance program for the product class.4 The Phlx rules for Trust Shares and Index Fund Shares currently provide that the current index value for the index underlying a series of Trust Shares (in the case of Phlx Rule 803(i)(11)) and Index Fund Shares (in the case of Phlx Rule 803(l)(6)) will be disseminated every 15 seconds over the Consolidated Tape Association’s Network B. The Phlx believes that, rather than identifying specifically in their rules the index dissemination service (that is, the Consolidated Tape Association’s Network B), it is preferable to reflect in the rules a requirement for wide dissemination of the underlying index values. This proposed rule change would make clear that the value of the underlying index must be widely disseminated by a reputable index dissemination service, such as the Consolidated Tape Association, Reuters, or Bloomberg. The Phlx believes that the specific identity of the index dissemination service is not necessary, and the purpose of the rule would be achieved, as long as the service used for dissemination is reputable, accepted in the investment community, and effects appropriately wide dissemination of the particular index. The Exchange therefore proposes to change the generic listing standards for Trust Shares and Index Fund Shares to provide that the value of the underlying index must be widely disseminated by one or more major market data vendors 3 17 CFR 240.19b–4(e). 4 See Securities Exchange Act Release No. 40761 (December 8, 1998), 63 FR 70952 (December 22,1998). PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 at least every 15 seconds during the time when the Trust Shares or Index Fund Shares trade on the Exchange. As currently is the case, if the official index does not change during some or all of the period when trading is occurring (as is typically the case with pre-market-open and after-hours trading, and also with foreign indexes because of time zone differences or holidays in the countries where such indexes’ components trade), then the last official calculated index value must remain available throughout the Phlx trading hours. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the provisions of Section 6(b) of the Act,5 in general, and furthers the objectives of Section 6(b)(5) of the Act,6 in particular, in that it is designed 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 Phlx believes that clarifying the rules helps all market participants. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change would 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 No written comments were either solicited or 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 rulecomments@sec.gov. Please include File Number SR–Phlx–2005–57 on the subject line. Paper Comments • Send paper comments in triplicate to Jonathan G. Katz, Secretary, 5 15 6 15 E:\FR\FM\14OCN1.SGM U.S.C. 78f(b). U.S.C. 78f(b)(5). 14OCN1 Federal Register / Vol. 70, No. 198 / Friday, October 14, 2005 / Notices Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–9303. All submissions should refer to File Number SR–Phlx–2005–57. 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, 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 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 publicly available. All submissions should refer to File Number SR–Phlx–2005–57 and should be submitted on or before November 4, 2005. IV. Commission’s Findings and Order Granting Accelerated Approval of Proposed Rule Change After careful consideration, 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.7 In particular, the Commission believes that the proposed rule change is consistent with Section 6(b)(5) of the Act.8 The Commission notes that the proposed index dissemination requirement is similar to the index dissemination requirement used in the listing standards for narrow-based index options.9 The Phlx defines ‘‘one or more 7 In approving this proposal, the Commission has considered its impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 8 15 U.S.C. 78f(b)(5). 9 See e.g., Chicago Board Options Exchange Rule 24.2(b); International Securities Exchange Rule 2002(b); Pacific Exchange Rule 5.13; and Philadelphia Stock Exchange Rule 1009A(b) (listing standards for narrow-based index options requiring that, among other things, the current underlying VerDate Aug<31>2005 13:54 Oct 13, 2005 Jkt 208001 60127 major market data vendor’’ to include the Consolidated Tape Association or private vendors, such as Reuters or Bloomberg.10 The Commission believes, however, that it is critical that such service widely disseminate such index value to market participants. The Phlx has requested that the Commission find good cause for approving the proposed rule change prior to the thirtieth day after publication of notice thereof in the Federal Register. The Commission notes that it has recently approved similar proposals regarding the dissemination of the underlying index value for exchange traded funds traded on Nasdaq, the American Stock Exchange LLC (‘‘Amex’’), and the New York Stock Exchange, Inc. (‘‘NYSE’’).11 The Commission believes that granting accelerated approval of the proposal will allow the Phlx to immediately implement these listing standards for dissemination of the underlying index value that are in place on Nasdaq, the Amex, and the NYSE. Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act,12 for approving the proposed rule change prior to the thirtieth day after the date of publication of notice thereof in the Federal Register. DEPARTMENT OF STATE V. Conclusion Editorial Note: This document was received in the Office of the Federal Register on October 11, 2005. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,13 that the proposed rule change (SR–Phlx–2005– 57) be, and hereby is, approved on an accelerated basis. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 J. Lynn Taylor, Assistant Secretary. [FR Doc. E5–5653 Filed 10–13–05; 8:45 am] BILLING CODE 8010–01–P index value be reported at least once every 15 seconds during the time the index option trades on the exchange). 10 The Commission notes, however, that if a selfregulatory organization designates a data vendor, on an exclusive basis, to disseminate an index value on behalf of the self-regulatory organization, such vendor would be an ‘‘exclusive processor’’ under Section 3(a)(22)(B) of the Act and, absent an exemption, required to register as a securities information processor under Section 11A(b)(1) of the Act. 11 See Securities Exchange Act Release Nos. 51748 (May 26, 2005), 70 FR 32684 (June 3, 2005) (SR–NASD–2005–024); 51868 (June 17, 2005), 70 FR 36672 (June 24, 2005) (SR–Amex–2005–044); and 52081 (July 20, 2005), 70 FR 43488 (July 27, 2005) (SR–NYSE–2005–44). 12 15 U.S.C. 78s(b)(2). 13 15 U.S.C. 78s(b)(2). 14 17 CFR 200.30–3(a)(12). PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 [Public Notice 5206] Determination Under Section 564 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995, Public Law 103–236, as Amended; Suspending Prohibitions on Certain Sales and Leases Under the AntiEconomic Discrimination Act of 1994 Pursuant to the authority vested in the President by Section 564 of the Foreign Relations Authorization Act (‘‘the Act’’), Fiscal Years 1994 and 1995, Public Law 103–236, as amended, which was delegated to the Secretary of State on April 24, 1997, I hearby determine that instituting the suspension of the application of Section 564(a) of the Act to Iraq and extending the suspension of the application of Section 564(a) of the Act to the following eight countries until May 1, 2006 will promote the objectives of section 564: Bahrain, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, United Arab Emirates, Yemen. This determination will be reported to the appropriate committees of the Congress and published in the Federal Register. Dated: May 13, 2005. Condoleezza Rice, Secretary of State, Department of State. [FR Doc. 05–20609 Filed 10–13–05; 8:45 am] BILLING CODE 4710–31–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration [Docket No. FAA–2005–22679; Notice No. 05–09] Guidance on Aircraft Noise Certification Documents for International Flights Federal Aviation Administration, DOT. ACTION: Notice of availability; request for comments. AGENCY: SUMMARY: The FAA is notifying operators of a proposed advisory circular entitled ‘‘Guidance on Aircraft Noise Certification Documents for International Flights.’’ This advisory circular (AC) is in response to the International Civil Aviation Organization (ICAO) adoption of three acceptable options for managing noise certification documents. This AC offers guidance to affected operators on E:\FR\FM\14OCN1.SGM 14OCN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 70, Number 198 (Friday, October 14, 2005)]
[Notices]
[Pages 60125-60127]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-5653]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52572; File No. SR-Phlx-2005-57]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Order Granting Accelerated Approval to a Proposed 
Rule Change Relating to Dissemination of the Underlying Index Value for 
Trust Shares and Index Fund Shares

October 7, 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 September 21, 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 Phlx. 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 Phlx proposes to amend Sections (i) and (l) of Phlx Rule 803, 
the listing standards for two kinds of exchange traded funds, Trust 
Shares and Index Fund Shares, to provide that the current value of the 
underlying index must be widely disseminated by one or more major 
market data vendors at least every 15 seconds during the time the Trust 
Share or Index Fund Share trades on the Exchange. The text of the 
proposed rule change is set forth below. Proposed new language is in 
italics; proposed deletions are in brackets.
* * * * *

Rule 803

Criteria for Listing--Tier I
* * * * *
    (a)-(h) No Change.
    (i) Trust Shares
    (1)-(10) No Change.
    (11) The Exchange may approve a series of Trust Shares for trading, 
whether by listing or pursuant to unlisted trading privileges, pursuant 
to Rule 19b-4(e) under the Securities Exchange Act of 1934 provided 
each of the following criteria is satisfied:
    (a) No Change.

[[Page 60126]]

    (b) Index Methodology and Calculation.
    (i) No Change.
    (ii) No Change.
    (iii) The current index value will be widely disseminated by one or 
more major market data vendors at least every 15 seconds during the 
time when the Trust Shares trade on the Exchange [over the Consolidated 
Tape Association's Network B].
    (c)-(h) No Change.
    (j) No Change.
    (k) No Change.
    (l) Index Fund Shares
    (1)-(5) No Change.
    (6) Listing Pursuant to SEC Rule 19b-4(e). The Exchange may approve 
a series of Index Fund Shares for listing pursuant to Rule 19b-4(e) 
under the Securities Exchange Act of 1934 provided each of the 
following criteria is satisfied:
    (A) No Change.
    (B) Index Methodology and Calculation. (I) The index underlying a 
series of Index Fund Shares will be calculated based on either the 
market capitalization, modified market capitalization, price, equal-
dollar or modified equal-dollar weighting methodology; (II) If the 
index is maintained by a broker-dealer, the broker-dealer shall erect a 
``fire wall'' around the personnel who have access to information 
concerning changes and adjustments to the index and the index shall be 
calculated by a third party who is not a broker-dealer; and (III) The 
current index value will be widely disseminated by one or more major 
market data vendors at least every 15 seconds during the time when the 
Index Fund Shares trade on the Exchange [over the Consolidated Tape 
Association's Network B].
    (C)-(H) No Change.
    (7)-(8) No Change.
* * * * *

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
    Sections (i)(11) and (l)(6) of Phlx Rule 803 provide listing 
standards for Trust Shares and Index Fund Shares, respectively, to 
permit listing and trading of these securities pursuant to Rule 19b-
4(e) under the Act.\3\ Rule 19b-4(e) provides that the listing and 
trading of a new derivative securities product by a self-regulatory 
organization shall not be deemed a proposed rule change, pursuant to 
paragraph (c)(1) of Rule 19b-4, if the Commission has approved, 
pursuant to Section 19(b) of the Act, the self-regulatory 
organization's trading rules, procedures and listing standards for the 
product class that would include the new derivative securities product, 
and the self-regulatory organization has a surveillance program for the 
product class.\4\
---------------------------------------------------------------------------

    \3\ 17 CFR 240.19b-4(e).
    \4\ See Securities Exchange Act Release No. 40761 (December 8, 
1998), 63 FR 70952 (December 22,1998).
---------------------------------------------------------------------------

    The Phlx rules for Trust Shares and Index Fund Shares currently 
provide that the current index value for the index underlying a series 
of Trust Shares (in the case of Phlx Rule 803(i)(11)) and Index Fund 
Shares (in the case of Phlx Rule 803(l)(6)) will be disseminated every 
15 seconds over the Consolidated Tape Association's Network B. The Phlx 
believes that, rather than identifying specifically in their rules the 
index dissemination service (that is, the Consolidated Tape 
Association's Network B), it is preferable to reflect in the rules a 
requirement for wide dissemination of the underlying index values. This 
proposed rule change would make clear that the value of the underlying 
index must be widely disseminated by a reputable index dissemination 
service, such as the Consolidated Tape Association, Reuters, or 
Bloomberg. The Phlx believes that the specific identity of the index 
dissemination service is not necessary, and the purpose of the rule 
would be achieved, as long as the service used for dissemination is 
reputable, accepted in the investment community, and effects 
appropriately wide dissemination of the particular index.
    The Exchange therefore proposes to change the generic listing 
standards for Trust Shares and Index Fund Shares to provide that the 
value of the underlying index must be widely disseminated by one or 
more major market data vendors at least every 15 seconds during the 
time when the Trust Shares or Index Fund Shares trade on the Exchange.
    As currently is the case, if the official index does not change 
during some or all of the period when trading is occurring (as is 
typically the case with pre-market-open and after-hours trading, and 
also with foreign indexes because of time zone differences or holidays 
in the countries where such indexes' components trade), then the last 
official calculated index value must remain available throughout the 
Phlx trading hours.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the provisions of Section 6(b) of the Act,\5\ in general, and furthers 
the objectives of Section 6(b)(5) of the Act,\6\ in particular, in that 
it is designed 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 Phlx believes that 
clarifying the rules helps all market participants.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 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 would 
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

    No written comments were either solicited or 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-2005-57 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary,

[[Page 60127]]

Securities and Exchange Commission, 100 F Street, NE., Washington, DC 
20549-9303.
    All submissions should refer to File Number SR-Phlx-2005-57. 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, 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 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 publicly available. All 
submissions should refer to File Number SR-Phlx-2005-57 and should be 
submitted on or before November 4, 2005.

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

    After careful consideration, 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.\7\ In particular, the Commission believes that the proposed 
rule change is consistent with Section 6(b)(5) of the Act.\8\ The 
Commission notes that the proposed index dissemination requirement is 
similar to the index dissemination requirement used in the listing 
standards for narrow-based index options.\9\ The Phlx defines ``one or 
more major market data vendor'' to include the Consolidated Tape 
Association or private vendors, such as Reuters or Bloomberg.\10\ The 
Commission believes, however, that it is critical that such service 
widely disseminate such index value to market participants.
---------------------------------------------------------------------------

    \7\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(b)(5).
    \9\ See e.g., Chicago Board Options Exchange Rule 24.2(b); 
International Securities Exchange Rule 2002(b); Pacific Exchange 
Rule 5.13; and Philadelphia Stock Exchange Rule 1009A(b) (listing 
standards for narrow-based index options requiring that, among other 
things, the current underlying index value be reported at least once 
every 15 seconds during the time the index option trades on the 
exchange).
    \10\ The Commission notes, however, that if a self-regulatory 
organization designates a data vendor, on an exclusive basis, to 
disseminate an index value on behalf of the self-regulatory 
organization, such vendor would be an ``exclusive processor'' under 
Section 3(a)(22)(B) of the Act and, absent an exemption, required to 
register as a securities information processor under Section 
11A(b)(1) of the Act.
---------------------------------------------------------------------------

    The Phlx has requested that the Commission find good cause for 
approving the proposed rule change prior to the thirtieth day after 
publication of notice thereof in the Federal Register. The Commission 
notes that it has recently approved similar proposals regarding the 
dissemination of the underlying index value for exchange traded funds 
traded on Nasdaq, the American Stock Exchange LLC (``Amex''), and the 
New York Stock Exchange, Inc. (``NYSE'').\11\ The Commission believes 
that granting accelerated approval of the proposal will allow the Phlx 
to immediately implement these listing standards for dissemination of 
the underlying index value that are in place on Nasdaq, the Amex, and 
the NYSE. Accordingly, the Commission finds good cause, pursuant to 
Section 19(b)(2) of the Act,\12\ for approving the proposed rule change 
prior to the thirtieth day after the date of publication of notice 
thereof in the Federal Register.
---------------------------------------------------------------------------

    \11\ See Securities Exchange Act Release Nos. 51748 (May 26, 
2005), 70 FR 32684 (June 3, 2005) (SR-NASD-2005-024); 51868 (June 
17, 2005), 70 FR 36672 (June 24, 2005) (SR-Amex-2005-044); and 52081 
(July 20, 2005), 70 FR 43488 (July 27, 2005) (SR-NYSE-2005-44).
    \12\ 15 U.S.C. 78s(b)(2).
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V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\13\ that the proposed rule change (SR-Phlx-2005-57) be, and hereby 
is, approved on an accelerated basis.
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    \13\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5-5653 Filed 10-13-05; 8:45 am]
BILLING CODE 8010-01-P

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