Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Revisions to the Series 9/10 Examination Program, 74083-74085 [E5-7306]

Download as PDF Federal Register / Vol. 70, No. 239 / Wednesday, December 14, 2005 / Notices they will now direct the Exchange to make on their behalf those payment for order flow payments to the order flow providers. The Exchange also proposes to specifically request that books and records regarding the rate (for example, $0.25 per contract or a flat monthly rate) that is paid to order flow providers and the basis for the amount that Directed ROTs, specialists, and specialist units direct the Exchange to pay to order flow providers be maintained. 2. Statutory Basis The Exchange believes the proposal is consistent with section 6(b) of the Act 7, in general, and furthers the objectives of section 6(b)(1) of the Act,8 in particular, in that it assist the Exchange in determining and enforcing compliance with its rules assist the Exchange in determining an enforcing compliance with its rules (i.e., the specific terms of the Exchange’s payment for order flow program). By enabling the Exchange to verify that the payment for order flow program is being administered in accordance with the terms thereof as approved by the Exchange and set forth in its filing with the Commission, this proposal also promotes just and equitable principles of trade consistent with section 6(b)(1) of the Act.9 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. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others No written comments were solicited or received by the Exchange on this proposal. 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 Exchange consents, the Commission will: A. By order approve the proposed rule change, or 7 15 U.S.C. 78f(b). U.S.C. 78f(b)(1). 9 15 U.S.C. 78f(b)(1). 8 15 VerDate Aug<31>2005 15:29 Dec 13, 2005 B. Institute proceedings to determine whether the proposed rule change 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–2005–67 on the subject line. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Jonathan G. Katz, Secretary. [FR Doc. E5–7299 Filed 12–13–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52916; File No. SR–Phlx– 2005–71] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Revisions to the Series 9/ 10 Examination Program December 7, 2005. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 • Send paper comments in triplicate (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on November to Jonathan G. Katz, Secretary, 16, 2005, the Philadelphia Stock Securities and Exchange Commission, Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) 100 F Street, NE., Washington, DC filed with the Securities and Exchange 20549–9303. Commission (‘‘SEC’’ or ‘‘Commission’’) All submissions should refer to File the proposed rule change as described Number SR–Phlx–2005–67. This file in Items I, II, and III below, which Items number should be included on the have been prepared by the Phlx. On subject line if e-mail is used. To help the November 29, 2005, Phlx filed Commission process and review your Amendment No. 1 to the proposed rule comments more efficiently, please use change. Phlx has designated the only one method. The Commission will proposed rule change as constituting a post all comments on the Commission’s stated policy, practice, or interpretation Internet Web site (https://www.sec.gov/ with respect to the meaning, rules/sro.shtml). Copies of the administration, or enforcement of an submission, all subsequent existing rule of the self-regulatory amendments, all written statements organization pursuant to section with respect to the proposed rule 19(b)(3)(A)(i) of the Act 3 and Rule 19b– change that are filed with the 4(f)(1) thereunder,4 which renders the proposal effective upon filing with the Commission, and all written Commission. The Commission is communications relating to the publishing this notice to solicit proposed rule change between the Commission and any person, other than comments on the proposed rule change, as amended, from interested persons. those that may be withheld from the public in accordance with the I. Self-Regulatory Organization’s provisions of 5 U.S.C. 552, will be Statement of the Terms of Substance of available for inspection and copying in the Proposed Rule Change the Commission’s Public Reference The Phlx proposes to file revisions to Room. Copies of the filing also will be the study outline and selection available for inspection and copying at specifications for the Limited the principal office of the Exchange. All Principal—General Securities comments received will be posted Supervisor (Series 9/10) examination without change; the Commission does (‘‘Series 9/10 Examination’’), which is not edit personal identifying administered by the National information from submissions. You Association of Securities Dealers, Inc. should submit only information that (‘‘NASD’’). The proposed revisions you wish to make available publicly. All 10 17 CFR 200.30–3(a)(12). submissions should refer to File 1 15 U.S.C. 78s(b)(1). Number SR–Phlx–2005–67 and should 2 17 CFR 240.19b–4. be submitted on or before January 4, 3 15 U.S.C. 78s(b)(3)(A)(i). 2006. 4 Paper Comments 17 CFR 240.19b–4(f)(1). Jkt 208001 74083 PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 E:\FR\FM\14DEN1.SGM 14DEN1 74084 Federal Register / Vol. 70, No. 239 / Wednesday, December 14, 2005 / Notices update the material to reflect changes to the laws, rules, and regulations covered by the Series 9/10 Examination, as well as modify the content of the examination program to track more closely the functional workflow of a Series 9/10 limited principal. Phlx is not proposing any textual changes to its rules. The revised Series 9/10 Examination study outline is available on Phlx’s Web site (https://www.phlx.com), at the Phlx, and at the Commission.5 However, The Exchange has omitted the Series 9/10 Examination selection specifications from this filing and has submitted the specifications under separate cover to the Commission with a request for confidential treatment pursuant to Rule 24b–2 under the Act.6 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 Phlx included statements concerning the purpose of and basis for the proposed rule change 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 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 Series 9/10 Examination tests a candidate’s knowledge of securities industry rules and regulations and certain statutory provisions pertinent to the supervision of sales activities. The Series 9/10 Examination is shared by Phlx and the following SROs: The NASD, the American Stock Exchange LLC , the Chicago Board Options Exchange, Inc., the Municipal Securities Rule Making Board (‘‘MSRB’’) , the New York Stock Exchange, Inc. (‘‘NYSE’’), and the Pacific Exchange, Inc. A committee of industry representatives, together with the staff of NASD and the other SROs, recently undertook a periodic review of the Series 9/10 examination program. As a result of this review, the NASD has filed a rule change proposal with the 5 The Series 9/10 Examination study outline is also available on NASD’s Web site (https:// www.nasd.com). 6 17 CFR 240.24b–2. VerDate Aug<31>2005 15:29 Dec 13, 2005 Jkt 208001 Commission 7 and Phlx is proposing a similar rule change to update the content of the examination to cover Regulation S–P,8 MSRB Rules G–37/G– 38, SRO research analyst and antimoney laundering rules, municipal fund securities (e.g., 529 college savings plans), and exchange traded funds. Phlx is further proposing revisions to the study outline to reflect the Commission’s short sale requirements. In addition, as part of an ongoing effort to align the examination more closely to the supervisory duties of a Series 9/10 limited principal, the proposal would modify the content of the examination to track the functional workflow of a Series 9/10 limited principal, and would include questions related to parallel rules of NASD, the options exchanges, the MSRB, and the NYSE in the same section of the exam. As a result of the revisions, Phlx is proposing to modify the main section headings and the number of questions on each section of the Series 9/10 study outline as follows: Section 1—Hiring, Qualifications, and Continuing Education, 9 questions; section 2— Supervision of Accounts and Sales Activities, 94 questions; section 3— Conduct of Associated Persons, 14 questions; section 4—Recordkeeping Requirements, 8 questions; section 5— Municipal Securities Regulation, 20 questions; section 6—Options Regulation, 55 questions. Sections 1 through 5 constitute the Series 10 portion of the examination. Section 6 constitutes the Series 9 portion of the examination. Series 10 covers general securities and municipal securities, and Series 9 covers options. The revised examination continues to cover the areas of knowledge required for the supervision of sales activities. Phlx is proposing these changes to the entire content of the Series 9/10 examination, including the selection specifications and question bank. The number of questions on the Series 9/10 examination will remain at 200, and candidates will continue to have four hours to complete the Series 10 portion and one and one-half hours to complete the Series 9 portion. Also, each question will continue to count one point, and each candidate must correctly answer 70 percent of the questions on each series, 9 and 10, to receive a passing grade. Phlx believes that the other SROs are filing similar proposals. 7 See Securities Exchange Act Release No. 52548 (September 30, 2005), 70 FR 59111 (October 11, 2005) (SR-NASD–2005–111). In the filing, the NASD proposes an implementation date of no later than November 30, 2005. 8 17 CFR 248.1–18; 17 CFR 248.30; and 17 CFR 248, Appendix A. PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 As further discussed below, the Exchange is filing the proposed rule change for immediate effectiveness. The Exchange will announce the proposed revisions in a Notice to Members to be published prior to the implementation date. 2. Statutory Basis The Exchange believes that its proposal is consistent with section 6(b) of the Actl9 in general and furthers the objectives of section 6(c)(3),10 which authorize Phlx to prescribe standards of training, experience and competence for members of the Exchange or persons associated with them. B. Self-Regulatory Organization’s Statement on Burden on Competition The Phlx does not believe that the proposed rule change, as amended, will impose any burden on competition 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 The proposed rule change, as amended, has become effective pursuant to section 19(b)(3)(A)(i) 11 of the Act and Rule 19b-4(f)(1) thereunder,12 in that the proposed rule change constitutes a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule. At any time within 60 days of the filing of the proposed rule change, 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.13 9 15 U.S.C. 78f(b). U.S.C. 78f(c)(3). 11 15 U.S.C. 78s(b)(3)(A)(i). 12 17 CFR 240.19b–4(f)(1). 13 The effective date of the original proposed rule is November 16, 2005. The effective date of Amendment No. 1 is November 29, 2005. For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change under section 19(b)(3)(C) of the Act, the Commission considers the period to commence on November 29, 2005, the date on which Phlx submitted Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C). 10 15 E:\FR\FM\14DEN1.SGM 14DEN1 Federal Register / Vol. 70, No. 239 / Wednesday, December 14, 2005 / Notices 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: For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 Jonathan G. Katz, Secretary. [FR Doc. E5–7306 Filed 12–13–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION 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-2005–71 on the subject line. Paper Comments • 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-2005–71. 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 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-2005–71 and should be submitted on or before January 4, 2006. [Release No. 34–52919; File No. SR–Phlx– 2005–66] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Revisions to the Series 4 Examination Program December 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 November 9, 2005, the Philadelphia Stock Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by Phlx. On November 28, 2005, Phlx filed Amendment No. 1 to the proposed rule change. Phlx has designated the proposed rule change as constituting a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule of the self-regulatory organization pursuant to Section 19(b)(3)(A)(i) of the Act 3 and Rule 19b– 4(f)(1) thereunder,4 which renders the proposal effective upon filing with the Commission. 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 Phlx is filing revisions to the study outline and selection specifications for the Limited Principal—Registered Options (Series 4) examination program (‘‘Series 4 Examination’’), which is administered by the National Association of Securities Dealers, Inc. (‘‘NASD’’). The proposed revisions update the material to reflect changes to 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(i). 4 17 CFR 240.19b–4(f)(1). 1 15 VerDate Aug<31>2005 15:29 Dec 13, 2005 Jkt 208001 PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 74085 the laws, rules, and regulations covered by the Series 4 Examination, as well as to modify the content of the examination program to track more closely the functional workflow of a Series 4 limited principal. Phlx is not proposing any textual changes to its rules. The revised Series 4 Examination study outline is available on Phlx’s Web site (https://www.phlx.com), at the Phlx, and at the Commission. However, the Exchange has omitted the Series 4 Examination selection specifications from this filing and has submitted the specifications under separate cover to the Commission with a request for confidential treatment pursuant to Rule 24b–2 under the Act.5 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, Phlx included statements concerning the purpose of and basis for the proposed rule change 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. 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 Phlx Rule 1024 states that a member organization shall not transact any business with the public in option contracts unless those persons engaged in the management of the member organization’s business pertaining to option contracts are registered with and approved by the Exchange as Options Principals. Additionally, the rule states that no individual member shall transact any business directly with the public in option contracts unless he is registered with and approved by the Exchange as an Options Principal. The Series 4 examination, an industry-wide examination, qualifies an individual to function as a Registered Options and Security Futures Principal, but only for purposes of supervising a member firm’s options activities.6 The Series 4 Examination tests a candidate’s knowledge of options 5 17 CFR 240.24b–2. Registered Options and Security Futures Principal must complete an additional continuing education program before such person can supervise security futures activities. 6A E:\FR\FM\14DEN1.SGM 14DEN1

Agencies

[Federal Register Volume 70, Number 239 (Wednesday, December 14, 2005)]
[Notices]
[Pages 74083-74085]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-7306]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52916; File No. SR-Phlx-2005-71]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
and Amendment No. 1 Thereto Relating to Revisions to the Series 9/10 
Examination Program

December 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 November 16, 2005, the Philadelphia Stock Exchange, Inc. (``Phlx'' 
or ``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the Phlx. 
On November 29, 2005, Phlx filed Amendment No. 1 to the proposed rule 
change. Phlx has designated the proposed rule change as constituting a 
stated policy, practice, or interpretation with respect to the meaning, 
administration, or enforcement of an existing rule of the self-
regulatory organization pursuant to section 19(b)(3)(A)(i) of the Act 
\3\ and Rule 19b-4(f)(1) thereunder,\4\ which renders the proposal 
effective upon filing with the Commission. 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\ 15 U.S.C. 78s(b)(3)(A)(i).
    \4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------

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

    The Phlx proposes to file revisions to the study outline and 
selection specifications for the Limited Principal--General Securities 
Supervisor (Series 9/10) examination (``Series 9/10 Examination''), 
which is administered by the National Association of Securities 
Dealers, Inc. (``NASD''). The proposed revisions

[[Page 74084]]

update the material to reflect changes to the laws, rules, and 
regulations covered by the Series 9/10 Examination, as well as modify 
the content of the examination program to track more closely the 
functional workflow of a Series 9/10 limited principal. Phlx is not 
proposing any textual changes to its rules.
    The revised Series 9/10 Examination study outline is available on 
Phlx's Web site (https://www.phlx.com), at the Phlx, and at the 
Commission.\5\
---------------------------------------------------------------------------

    \5\ The Series 9/10 Examination study outline is also available 
on NASD's Web site (https://www.nasd.com).
---------------------------------------------------------------------------

    However, The Exchange has omitted the Series 9/10 Examination 
selection specifications from this filing and has submitted the 
specifications under separate cover to the Commission with a request 
for confidential treatment pursuant to Rule 24b-2 under the Act.\6\
---------------------------------------------------------------------------

    \6\ 17 CFR 240.24b-2.
---------------------------------------------------------------------------

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 Phlx included statements 
concerning the purpose of and basis for the proposed rule change 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 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 Series 9/10 Examination tests a candidate's knowledge of 
securities industry rules and regulations and certain statutory 
provisions pertinent to the supervision of sales activities. The Series 
9/10 Examination is shared by Phlx and the following SROs: The NASD, 
the American Stock Exchange LLC , the Chicago Board Options Exchange, 
Inc., the Municipal Securities Rule Making Board (``MSRB'') , the New 
York Stock Exchange, Inc. (``NYSE''), and the Pacific Exchange, Inc.
    A committee of industry representatives, together with the staff of 
NASD and the other SROs, recently undertook a periodic review of the 
Series 9/10 examination program. As a result of this review, the NASD 
has filed a rule change proposal with the Commission \7\ and Phlx is 
proposing a similar rule change to update the content of the 
examination to cover Regulation S-P,\8\ MSRB Rules G-37/G-38, SRO 
research analyst and anti-money laundering rules, municipal fund 
securities (e.g., 529 college savings plans), and exchange traded 
funds. Phlx is further proposing revisions to the study outline to 
reflect the Commission's short sale requirements. In addition, as part 
of an ongoing effort to align the examination more closely to the 
supervisory duties of a Series 9/10 limited principal, the proposal 
would modify the content of the examination to track the functional 
workflow of a Series 9/10 limited principal, and would include 
questions related to parallel rules of NASD, the options exchanges, the 
MSRB, and the NYSE in the same section of the exam.
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 52548 (September 30, 
2005), 70 FR 59111 (October 11, 2005) (SR-NASD-2005-111). In the 
filing, the NASD proposes an implementation date of no later than 
November 30, 2005.
    \8\ 17 CFR 248.1-18; 17 CFR 248.30; and 17 CFR 248, Appendix A.
---------------------------------------------------------------------------

    As a result of the revisions, Phlx is proposing to modify the main 
section headings and the number of questions on each section of the 
Series 9/10 study outline as follows: Section 1--Hiring, 
Qualifications, and Continuing Education, 9 questions; section 2--
Supervision of Accounts and Sales Activities, 94 questions; section 3--
Conduct of Associated Persons, 14 questions; section 4--Recordkeeping 
Requirements, 8 questions; section 5--Municipal Securities Regulation, 
20 questions; section 6--Options Regulation, 55 questions. Sections 1 
through 5 constitute the Series 10 portion of the examination. Section 
6 constitutes the Series 9 portion of the examination. Series 10 covers 
general securities and municipal securities, and Series 9 covers 
options. The revised examination continues to cover the areas of 
knowledge required for the supervision of sales activities.
    Phlx is proposing these changes to the entire content of the Series 
9/10 examination, including the selection specifications and question 
bank. The number of questions on the Series 9/10 examination will 
remain at 200, and candidates will continue to have four hours to 
complete the Series 10 portion and one and one-half hours to complete 
the Series 9 portion. Also, each question will continue to count one 
point, and each candidate must correctly answer 70 percent of the 
questions on each series, 9 and 10, to receive a passing grade. Phlx 
believes that the other SROs are filing similar proposals.
    As further discussed below, the Exchange is filing the proposed 
rule change for immediate effectiveness. The Exchange will announce the 
proposed revisions in a Notice to Members to be published prior to the 
implementation date.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with section 
6(b) of the Act--\9\ in general and furthers the objectives of section 
6(c)(3),\10\ which authorize Phlx to prescribe standards of training, 
experience and competence for members of the Exchange or persons 
associated with them.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(c)(3).
---------------------------------------------------------------------------

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

    The Phlx does not believe that the proposed rule change, as 
amended, will impose any burden on competition 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

    The proposed rule change, as amended, has become effective pursuant 
to section 19(b)(3)(A)(i) \11\ of the Act and Rule 19b-4(f)(1) 
thereunder,\12\ in that the proposed rule change constitutes a stated 
policy, practice, or interpretation with respect to the meaning, 
administration, or enforcement of an existing rule.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A)(i).
    \12\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, 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.\13\
---------------------------------------------------------------------------

    \13\ The effective date of the original proposed rule is 
November 16, 2005. The effective date of Amendment No. 1 is November 
29, 2005. For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
section 19(b)(3)(C) of the Act, the Commission considers the period 
to commence on November 29, 2005, the date on which Phlx submitted 
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).

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

[[Page 74085]]

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-2005-71 on the subject line.

Paper Comments

     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-2005-71. 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 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-2005-71 
and should be submitted on or before January 4, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).

Jonathan G. Katz,
Secretary.
 [FR Doc. E5-7306 Filed 12-13-05; 8:45 am]
BILLING CODE 8010-01-P
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