Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Order Granting Accelerated Approval to a Proposed Rule Change and Amendment No. 1 Thereto Relating to the Automated Delivery and Handling of Stop and Stop-Limit Orders, 23977-23978 [E6-6147]

Download as PDF Federal Register / Vol. 71, No. 79 / Tuesday, April 25, 2006 / Notices B. Self-Regulatory Organization’s Statement on Burden on Competition Nasdaq does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. 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 Nasdaq has designated the foregoing rule change as a ‘‘non-controversial’’ rule change pursuant to Section 19(b)(3)(A) of the Act 8 and Rule 19b– 4(f)(6) thereunder 9 because the rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; or (iii) become operative for 30 days from the day on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest. 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. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: All submissions should refer to File Number SR–NASD–2006–049. 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 (http://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 NASD. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–NASD–2006–049 and should be submitted on or before May 16, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Nancy M. Morris, Secretary. [FR Doc. E6–6126 Filed 4–24–06; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53673; File No. SR–Phlx– 2005–80] wwhite on PROD1PC65 with NOTICES Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Order Granting Accelerated Approval to a Proposed Rule Change and Amendment No. 1 Thereto Relating to the Automated Delivery and Handling of Stop and Stop-Limit Orders Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. I. Introduction On December 15, 2005, the Philadelphia Stock Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) pursuant to section 19(b)(1) of the Securities Exchange Act 9 17 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). VerDate Aug<31>2005 16:59 Apr 24, 2006 April 18, 2006. 10 17 Jkt 208001 PO 00000 CFR 200.30–3(a)(12). Frm 00084 Fmt 4703 II. Description of the Proposal The Phlx proposed to amend Phlx Rules 1066(c)(1) and 1080(b)(i)(A) and (C), and to delete Options Floor Procedure Advices (‘‘OFPAs’’) A–5 and A–6, to permit customer and off-floor broker-dealer stop 5 and stop-limit 6 orders in options to be delivered via the Exchange’s Automated Options Market (‘‘AUTOM’’) System 7 and to be handled electronically. The Exchange also proposed to amend Phlx Rule 1080(b)(i)(A) to include the definition of ‘‘agency order’’ in the rule and to delete certain provisions in the Exchange’s rules that were either redundant or no longer practical. III. Discussion The Commission has reviewed the proposed rule change, as amended, and finds that it is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.8 In particular, the Commission finds the U.S.C. 78s(b)(l). CFR 240.19b–4. 3 Amendment No. 1, which replaced the original filing in its entirety, added clarifying language to the description of the proposed rule change and adopted a definition of ‘‘agency order’’ in Phlx Rule 1080(b)(i)(A). 4 See Securities Exchange Act Release No. 53514 (March 17, 2006), 71 FR 15240 (March 27, 2006). 5 A stop order is a contingency order to buy or sell when the market for a particular option contract reaches a specified price. A stop order to buy becomes a market order when the option contract trades or is bid at or above the stop price. A stop order to sell becomes a market order when the option contract trades or is offered at or below the stop price. See Phlx Rule 1066(c)(1). 6 A stop-limit order is a contingency order to buy or sell at a limited price when the market for a particular option contract reaches a specified price. A stop limit order to buy becomes a limit order executable at the limit price or better when the option contract trades or is bid at or above the stoplimit price. A stop limit order to sell becomes a limit order executable at the limit price or better when the option contract trades or is offered at or below the stop limit price. See id. 7 See Phlx Rule 1080. 8 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 2 17 Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASD–2006–049 on the subject line. 8 15 of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 the proposed rule change relating to the automated delivery and handling of stop and stop-limit orders. On March 6, 2006, Phlx filed Amendment No. 1 to the proposed rule change with the Commission.3 The proposed rule change, as amended, was published for comment in the Federal Register on March 27, 2006.4 The Commission received no comments on the proposal. This order approves the proposed rule change, as amended, on an accelerated basis. 1 15 BILLING CODE 8010–01–P Sfmt 4703 23977 E:\FR\FM\25APN1.SGM 25APN1 23978 Federal Register / Vol. 71, No. 79 / Tuesday, April 25, 2006 / Notices proposed rule change, as amended, is consistent with section 6(b)(5) of the Act 9 which, among other things, requires that the rules of a national securities exchange be designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating securities transactions, to remove impediments to 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 proposal is intended to increase the number of orders handled electronically and establish rules that permit the electronic delivery and handling of stop and stop-limit orders via the Exchange’s AUTOM System. The Commission notes that increasing the number of orders handled electronically should increase the efficiency and accuracy of the handling of such orders. In addition, the proposal is substantially similar to a rule currently in effect on the International Securities Exchange, Inc.10 The Exchange requests accelerated approval of the proposal to permit implementation of the functionality for stop and stop-limit orders in AUTOM as soon as possible. Therefore, the Exchange requests that the Commission find good cause for approving the proposal, as amended, prior to the thirtieth day after the date of publication of notice of filing thereof in the Federal Register. The Commission notes that the proposal and Amendment No. 1 were noticed for the full 21-day comment period, and the Commission received no comments regarding the proposal, as amended. As discussed more fully above, the Commission believes that the proposed rule change should permit the Exchange to handle stop orders and stop limit orders more efficiently. Accordingly, the Commission finds good cause pursuant to section 19(b)(2) of the Act 11 to approve the proposed rule change, as amended, prior to the thirtieth day after the date of publication of notice of filing thereof in the Federal Register. IV. Conclusion wwhite on PROD1PC65 with NOTICES It is therefore ordered, pursuant to section 19(b)(2) of the Act,12 that the proposed rule change (File No. SR– Phlx–2005–80), as amended, be and 9 15 16:59 Apr 24, 2006 Jkt 208001 The number assigned to this disaster for physical damage is 10453. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Nancy M. Morris, Secretary. [FR Doc. E6–6147 Filed 4–24–06; 8:45 am] (Catalog of Federal Domestic Assistance Number 59008) BILLING CODE 8010–01–P Herbert L. Mitchell, Associate Administrator for Disaster Assistance. [FR Doc. E6–6192 Filed 4–24–06; 8:45 am] BILLING CODE 8025–01–P SMALL BUSINESS ADMINISTRATION SMALL BUSINESS ADMINISTRATION [Disaster Declaration # 10453] [Disaster Declaration # 10442 and # 10443] Kansas Disaster # KS–00012 Missouri Disaster Number MO–00003 U.S. Small Business Administration. ACTION: Notice. AGENCY: SUMMARY: This is a Notice of the Presidential declaration of a major disaster for Public Assistance Only for the State of Kansas (FEMA–1638–DR), dated 4/13/2006. Incident: Severe Storms, Tornadoes, and Straight Line Winds. Incident Period: 3/12/2006 through 3/ 13/2006. Effective Date: 4/13/2006. Physical Loan Application Deadline Date: 6/12/2006. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, National Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: Notice is hereby given that as a result of the President’s major disaster declaration on 04/13/2006, applications for Private Non-Profit organizations that provide essential services of a governmental nature may file disaster loan applications at the address listed above or other locally announced locations. The following areas have been determined to be adversely affected by the disaster: Primary Counties: Douglas, Wyandotte. The Interest Rates are: Other (Including Non-Profit Organizations) With Credit Available Elsewhere: ................................ Businesses And Non-Profit Organizations Without Credit Available Elsewhere: ........................ 13 17 PO 00000 CFR 200.30–3(a)(12). Frm 00085 Fmt 4703 Sfmt 4703 U.S. Small Business Administration. ACTION: Amendment 1. AGENCY: Percent U.S.C. 78f(b)(5). 10 See Securities Exchange Act Release No. 48811 (November 20, 2003), 68 FR 66909 (November 28, 2003). 11 15 U.S.C. 78s(b)(2). 12 15 U.S.C. 78s(b)(2). VerDate Aug<31>2005 hereby is, approved on an accelerated basis. 5.000 4.000 SUMMARY: This is an amendment of the Presidential declaration of a major disaster for the State of Missouri (FEMA–1635–DR ), dated 4/5/2006. Incident: Severe Storms, Tornadoes, and Flooding Incident Period: 3/30/2006 through 4/ 3/2006. Effective Date: 4/17/2006. Physical Loan Application Deadline Date: 6/5/2006. EIDL Loan Application Deadline Date: 1/5/2007. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, National Processing And Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: The notice of the Presidential disaster declaration for the State of Missouri, dated 4/5/2006 is hereby amended to include the following areas as adversely affected by the disaster: Primary Counties: Andrew, Butler, Dunklin, Pettis, St. Francois, Stoddard. Contiguous Counties: Missouri: Benton, Bollinger, Buchanan, Cape Girardeau, Carter, Cooper, Dekalb , Gentry, Henry, Holt, Iron, Jefferson, Johnson, Lafayette, Madison, Morgan, Nodaway, Perry, Ripley, Saline, Scott, Ste. Genevieve, Washington, Wayne. Arkansas: Clay, Craighead, Greene. Kansas: Doniphan. All other information in the original declaration remains unchanged. E:\FR\FM\25APN1.SGM 25APN1

Agencies

[Federal Register Volume 71, Number 79 (Tuesday, April 25, 2006)]
[Notices]
[Pages 23977-23978]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-6147]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53673; File No. SR-Phlx-2005-80]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Order Granting Accelerated Approval to a Proposed Rule Change and 
Amendment No. 1 Thereto Relating to the Automated Delivery and Handling 
of Stop and Stop-Limit Orders

April 18, 2006.

I. Introduction

    On December 15, 2005, the Philadelphia Stock Exchange, Inc. 
(``Phlx'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission'') pursuant to section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder,\2\ the proposed rule change relating to the automated 
delivery and handling of stop and stop-limit orders. On March 6, 2006, 
Phlx filed Amendment No. 1 to the proposed rule change with the 
Commission.\3\ The proposed rule change, as amended, was published for 
comment in the Federal Register on March 27, 2006.\4\ The Commission 
received no comments on the proposal. This order approves the proposed 
rule change, as amended, on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(l).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1, which replaced the original filing in its 
entirety, added clarifying language to the description of the 
proposed rule change and adopted a definition of ``agency order'' in 
Phlx Rule 1080(b)(i)(A).
    \4\ See Securities Exchange Act Release No. 53514 (March 17, 
2006), 71 FR 15240 (March 27, 2006).
---------------------------------------------------------------------------

II. Description of the Proposal

    The Phlx proposed to amend Phlx Rules 1066(c)(1) and 1080(b)(i)(A) 
and (C), and to delete Options Floor Procedure Advices (``OFPAs'') A-5 
and A-6, to permit customer and off-floor broker-dealer stop \5\ and 
stop-limit \6\ orders in options to be delivered via the Exchange's 
Automated Options Market (``AUTOM'') System \7\ and to be handled 
electronically. The Exchange also proposed to amend Phlx Rule 
1080(b)(i)(A) to include the definition of ``agency order'' in the rule 
and to delete certain provisions in the Exchange's rules that were 
either redundant or no longer practical.
---------------------------------------------------------------------------

    \5\ A stop order is a contingency order to buy or sell when the 
market for a particular option contract reaches a specified price. A 
stop order to buy becomes a market order when the option contract 
trades or is bid at or above the stop price. A stop order to sell 
becomes a market order when the option contract trades or is offered 
at or below the stop price. See Phlx Rule 1066(c)(1).
    \6\ A stop-limit order is a contingency order to buy or sell at 
a limited price when the market for a particular option contract 
reaches a specified price. A stop limit order to buy becomes a limit 
order executable at the limit price or better when the option 
contract trades or is bid at or above the stop-limit price. A stop 
limit order to sell becomes a limit order executable at the limit 
price or better when the option contract trades or is offered at or 
below the stop limit price. See id.
    \7\ See Phlx Rule 1080.
---------------------------------------------------------------------------

III. Discussion

    The Commission has reviewed the proposed rule change, as amended, 
and finds that it is consistent with the requirements of the Act and 
the rules and regulations thereunder applicable to a national 
securities exchange.\8\ In particular, the Commission finds the

[[Page 23978]]

proposed rule change, as amended, is consistent with section 6(b)(5) of 
the Act \9\ which, among other things, requires that the rules of a 
national securities exchange be designed to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in regulating securities transactions, to remove 
impediments to perfect the mechanism of a free and open market and a 
national market system and, in general, to protect investors and the 
public interest.
---------------------------------------------------------------------------

    \8\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The proposal is intended to increase the number of orders handled 
electronically and establish rules that permit the electronic delivery 
and handling of stop and stop-limit orders via the Exchange's AUTOM 
System. The Commission notes that increasing the number of orders 
handled electronically should increase the efficiency and accuracy of 
the handling of such orders. In addition, the proposal is substantially 
similar to a rule currently in effect on the International Securities 
Exchange, Inc.\10\
---------------------------------------------------------------------------

    \10\ See Securities Exchange Act Release No. 48811 (November 20, 
2003), 68 FR 66909 (November 28, 2003).
---------------------------------------------------------------------------

    The Exchange requests accelerated approval of the proposal to 
permit implementation of the functionality for stop and stop-limit 
orders in AUTOM as soon as possible. Therefore, the Exchange requests 
that the Commission find good cause for approving the proposal, as 
amended, prior to the thirtieth day after the date of publication of 
notice of filing thereof in the Federal Register.
    The Commission notes that the proposal and Amendment No. 1 were 
noticed for the full 21-day comment period, and the Commission received 
no comments regarding the proposal, as amended. As discussed more fully 
above, the Commission believes that the proposed rule change should 
permit the Exchange to handle stop orders and stop limit orders more 
efficiently. Accordingly, the Commission finds good cause pursuant to 
section 19(b)(2) of the Act \11\ to approve the proposed rule change, 
as amended, prior to the thirtieth day after the date of publication of 
notice of filing thereof in the Federal Register.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\12\ that the proposed rule change (File No. SR-Phlx-2005-80), as 
amended, be and hereby is, approved on an accelerated basis.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(2).
    \13\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
Nancy M. Morris,
Secretary.
[FR Doc. E6-6147 Filed 4-24-06; 8:45 am]
BILLING CODE 8010-01-P