Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 2 Thereto Establishing a Pilot Option Transaction Charge Credit for Specialists That Send Certain Principal Acting as Agent Orders for Execution Via the Intermarket Option Linkage, 27768-27770 [E6-7246]
Download as PDF
<![CDATA[
27768
Federal Register / Vol. 71, No. 92 / Friday, May 12, 2006 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any written
comments from members or other
interested parties.
III. Date of Effectiveness of the
Proposed Rule
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 self-regulatory
organization consents, the Commission
will:
(A) By order approve such proposed
rule change; or
(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 is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–PCX–2006–16 on the subject
line.
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 NYSE Arca.
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–2006–16 and should
be submitted by June 2, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.25
Nancy M. Morris,
Secretary.
[FR Doc. E6–7270 Filed 5–11–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53761; File No. SR–Phlx–
2006–20]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change and Amendment No. 2 Thereto
Establishing a Pilot Option Transaction
Charge Credit for Specialists That
Send Certain Principal Acting as Agent
Orders for Execution Via the
Intermarket Option Linkage
May 5, 2006.
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
to Nancy M. Morris, Secretary,
notice is hereby given that on March 31,
Securities and Exchange Commission,
2006, the Philadelphia Stock Exchange,
100 F Street, NE., Washington, DC
Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with
20549–1090.
the Securities and Exchange
All submissions should refer to File
Commission (‘‘Commission’’) the
Number SR–PCX–2006–16. This file
proposed rule change as described in
number should be included on the
Items I, II and III below, which Items
subject line if e-mail is used. To help the have been prepared by the Exchange.
Commission process and review your
On April 25, 2006, the Exchange filed
comments more efficiently, please use
Amendment No. 1 to the proposed rule
only one method. The Commission will change, and withdrew Amendment No.
post all comments on the Commissions
1 on May 4, 2006. On May 5, 2006, the
Internet Web site (https://www.sec.gov/
Exchange filed Amendment No. 2.3 The
rules/sro.shtml). Copies of the
25 17 CFR 200.30–3(a)(12).
submission, all subsequent
1 15 U.S.C. 78s(b)(1).
amendments, all written statements
2 17 CFR 240.19b–4.
with respect to the proposed rule
3 In Amendment No. 2, the Exchange clarified
change that are filed with the
that the proposed rule change is a pilot that will
Commission, and all written
expire on July 31, 2006. In Amendment No. 2, the
Exchange also clarified the purpose of the proposed
communications relating to the
sroberts on PROD1PC70 with NOTICES
Paper Comments
VerDate Aug<31>2005
16:54 May 11, 2006
Jkt 208001
PO 00000
Frm 00108
Fmt 4703
Sfmt 4703
Exchange has designated this proposal
as one establishing or changing a due,
fee, or other charge imposed by a selfregulatory organization pursuant to
Section 19(b)(3)(A)(ii) of the Act 4 and
Rule 19b–4(f)(2) thereunder,5 which
renders the proposal effective upon
filing with the Commission.6 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 establish
an option transaction charge credit of
$0.21 per contract for Exchange options
specialist units7 that incur Phlx option
transaction charges when a customer
order is delivered to the limit order
book via the Exchange’s Options Floor
Broker Management System (‘‘FBMS’’) 8
and is then sent to an away market and
executed via the Intermarket Option
Linkage (‘‘Linkage’’) under the Plan for
the Purpose of Creating and Operating
an Intermarket Option Linkage (
‘‘Plan’’) 9 as a Principal Acting as Agent
Order (‘‘P/A Order’’).10
This proposal is a pilot that will
expire on July 31, 2006, is in connection
rule change and made technical changes to the
proposed rule change, including the proposed rule
text.
4 15 U.S.C. 78s(b)(3)(A)(ii).
5 17 CFR 240.19b–4(f)(2).
6 For purposes of calculating the 60-day period
within which the Commission may summarily
abrogate the proposed rule change the Commission
considers the period to commence on May 5, 2006,
the date on which the Exchange filed Amendment
No. 2. See 15 U.S.C. 78s(b)(3)(C).
7 The Exchange uses the terms ‘‘specialist’’ and
‘‘specialist unit’’ interchangeably in its proposed
rule change.
8 The FBMS is a component of the Exchange’s
Automated Options Market (AUTOM) System
designed to enable Floor Brokers and/or their
employees to enter, route and report transactions
stemming from options orders received on the
Exchange. The Options FBMS also is designed to
establish an electronic audit trail for options orders
represented and executed by Floor Brokers on the
Exchange, such that the audit trial provides an
accurate, time-sequenced record of electronic and
other orders, quotations and transactions on the
Exchange, beginning with the receipt of an order by
the Exchange, and further documenting the life of
the order through the process of execution, partial
execution, or cancellation of that order. See Phlx
Rule 1080, Commentary .06.
9 See Securities Exchange Act Release Nos. 43086
(July 28, 2000), 65 FR 48023 (August 4, 2000); and
43573 (November 16, 2000), 65 FR 70851
(November 28, 2000) (order approving Phlx as a
participant in the Plan).
10 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 Phlx
Rule 1083(k)(i).
E:\FR\FM\12MYN1.SGM
12MYN1
Federal Register / Vol. 71, No. 92 / Friday, May 12, 2006 / Notices
with an existing pilot program that is
currently scheduled to expire on July
31, 2006,11 and applies to transactions
settling on or after April 3, 2006.
The text of the proposed rule change
is available at the Commission’s Public
Reference Room, at the Office of the
Secretary of the Exchange, and on the
Exchange’s Web site at https://
www.Phlx.com.
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 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
sroberts on PROD1PC70 with NOTICES
11 Fees for Linkage P and P/A orders are currently
subject to a pilot program scheduled to expire on
July 31, 2006. See, e.g., Securities Exchange Act
Release No. 52095 (July 21, 2005), 70 FR 43733
(July 28, 2005) (SR-Phlx-2005–46).
12 A Floor Broker who wishes to place a limit
order on the limit order book must submit such a
limit order electronically through the FBMS. See
Exchange Rule 1063, Commentary .01. See also,
Exchange Rule 1080, Commentary .02(b).
16:54 May 11, 2006
Jkt 208001
2. Statutory Basis
The Exchange believes that its
proposal to amend its schedule of fees
is consistent with Section 6(b) of the
Act 15 in general, and furthers the
objectives of Section 6(b)(4) of the Act 16
in particular, in that it is an equitable
allocation of reasonable fees and other
charges among Exchange members and
issuers and other persons using its
facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
1. Purpose
The purpose of this proposed rule
change is to alleviate the potential
economic burden of multiple
transaction charges imposed on
Exchange specialist units by
establishing a credit for Exchange
option transaction charges incurred by
an Exchange specialist unit when a
customer limit order placed on the limit
order book by a Floor Broker 12 results
in an execution of a P/A Order that is
sent to another exchange via Linkage.
Currently, when an Exchange
specialist sends a P/A Order through
Linkage to an away market, the
specialist unit ultimately pays fees to
execute the order at both the Exchange
and the away market center. The
Exchange believes that the imposition of
both fees may place an economic
burden on Exchange specialist units.
The purpose of this proposal is to credit
the specialist for the fee that is charged
by the Exchange. The Exchange believes
that an options transaction charge credit
of $0.21 per contract should encourage
VerDate Aug<31>2005
the use of the Linkage and reduce the
potential economic burden of multiple
fees that may be incurred by specialist
units when a customer order is
delivered to the limit order book via the
FBMS and is then sent and executed via
the Linkage. In addition, this proposal
should allow the Exchange to remain
competitive with other exchanges with
respect to the assessment of Linkagerelated fees.13
This proposal is a pilot that will
expire on July 31, 2006, is in connection
with an existing pilot program that is
currently scheduled to expire on July
31, 2006,14 and applies to transactions
settling on or after April 3, 2006.
The Exchange does not believe that
the proposed rule change 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 foregoing proposed rule change
establishes or changes a due, fee, or
other charge applicable only to a
member pursuant to Section
19(b)(3)(A)(ii) of the Act 17 and Rule
19b–4(f)(2) thereunder.18 Accordingly,
13 See Securities Exchange Act Release Nos.
53526 (March 21, 2006), 71 FR 15794 (March 29,
2006) (SR-PCX–2006–19) (rebate of the transaction
fees charged to Market Makers when they use the
Linkage to send a P/A Order to another options
exchange); and 53372 (February 24, 2006), 71 FR
11003 (March 3, 2006) (SR–CBOE–2006–10) (rebate
of certain transaction fees to Designated Primary
Market Makers related to the execution of outbound
P/A Orders).
14 See supra at note 11.
15 15 U.S.C. 78f(b).
16 15 U.S.C. 78f(b)(4).
17 15 U.S.C. 78s(b)(3)(A)(ii).
18 17 CFR 240.19b–4(f)(2).
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
27769
the proposal took effect upon filing with
the Commission.
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.19
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–2006–20 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–Phlx–2006–20. 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 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
19 See
E:\FR\FM\12MYN1.SGM
supra at note 6.
12MYN1
27770
Federal Register / Vol. 71, No. 92 / Friday, May 12, 2006 / Notices
you wish to make available publicly. All
submissions should refer to File
Number SR–Phlx–2006–20 and should
be submitted on or before June 2, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.20
Nancy M. Morris,
Secretary.
[FR Doc. E6–7246 Filed 5–11–06; 8:45 am]
BILLING CODE 8010–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Public Notice of Intent To Release
Grant Acquired Property at the OpaLocka Airport, Miami-Dade County, FL
Federal Aviation
Administration (FAA), DOT.
ACTION: Request for public comment.
AGENCY:
sroberts on PROD1PC70 with NOTICES
The Property Location
South of Tract 13 along the northern
boundary of Opa-Locka Airport across
the Biscayne Drainage Canal that
parallel Runway 9L/27R. It is more
specifically located on the west side of
NW 4th Court approximately 350 feet
south of NW 157th Street and 170 feet
north of theoretical NW 155 Terrace.
The Property is part of Parcel 4 and
is currently vacant. It was acquired by
the MDAD with Federal participation
under Federal aid projects (FAAP 9–08–
054–D2014–D603) to satisfy airport
development and runway protection
requirements for current Runway 9L/
27R.
The property will be disposed of for
the purpose of selling it to the adjacent
property owner who desires to increase
his residential lot size.
The fair market value of the property
has been determined by appraisal to be
$17,000,00. The airport will receive fair
market value for the property, and will
subsequently reinvest it in an eligible
airport improvement project at the OpaLocka Airport and/or returned to the
Trust fund.
Documents reflecting the Sponsor’s
request are available, by appointment
only, for inspection of the Miami-Dade
Aviation Department (MDAD), Office of
the Manager for Development and at the
Orlando FAA Airports District Office.
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
16:54 May 11, 2006
Jkt 208001
Section
125 of The Wendell H. Ford Aviation
Investment and Reform Act for the 21st
Century (AIR–21) requires the FAA to
provide an opportunity for public notice
and comment prior to the ‘‘waiver’’ or
‘‘modification’’ of a sponsor’s Federal
obligation to use certain airport land for
non-aeronautical purposes.
Items to address:
• Property location.
Begin at the southeast corner of the
North 320 feet of the East 1⁄2 of Tract 13,
Venetian Gardens, as recorded in Plat
Book 31 at Page 37 of the public records
of Miami-Dade County, Florida; thence
run S00°48′15″W along the East line of
said Tract 13 and the Opa-Locka Airport
property line for 39.97 feet; thence run
N89°10′55″W along the westerly
extension of the South line of the North
360 feet of Tract 15 of said Venetian
Gardens for 108.68 feet; thence run
N00°49′49″E along the West line of the
East 1⁄2 of said Tract 13 for 39.84 feet;
thence run S89°14′33″E along the South
line of the North 320 feet of the East 1⁄2
of said Tract 13 and the Opa-Locka
Airport property line for 107.54 feet to
the point of beginning.
Containing 4.314 SF or 0.10 acre.
• Property’s existing aeronautical use.
The subject property is part of a larger
parcel of land (Parcel 4) that was
acquired with Federal participation
under Federal-aid Projects (FAAP–9–
08–054–D2014–D603) for airport
development and runway protection
requirements. The land is vacant and
appears to be a remnant located outside
of the airport building restriction line of
Runway 9L/27R.
• Sponsor’s proposed nonaeronautical use.
The purpose for this release of land is
to facilitate the transfer of this property
to the adjacent property owner who
SUPPLEMENTARY INFORMATION:
SUMMARY: The Federal Aviation
Administration is requesting public
comment on the Miami-Dade Aviation
Department (MDAD) request to release a
portion of airport property, ±4,314
square feet, for other than aeronautical
purposes.
20 17
Comments must be received on
or before June 12, 2006.
ADDRESSES: Documents are available for
review, at the MDAD Manager of
Development, Miami International
Airport, Miami-Dade County Aviation
Department, Mr. Sunil Harman, 4200
NW. 36th Street, Building 5A, Suite 400,
Miami, Florida 33122, telephone (305)
876–7090 and at the FAA Orlando
Airports District Office, Ilia A.
Quinones, 5950 Hazeltine National
Drive, Suite 400, Orlando, Florida 32822
and telephone number (407) 812–6331.
Written comments on the Sponsor’s
request must be delivered or mailed, in
duplicate to Ilia A. Quinones, Program
Manager, 5950 Hazeltine National
Drive, Suite 400, Orlando, Florida
32822, telephone number (407) 812–
6331.
DATES:
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
desires to increase his residential lot
size.
FOR FURTHER INFORMATION CONTACT: Ilia
A. Quinones, Program Manager,
Orlando Airports District Office, 5950
Hazeltine National Drive, Suite 400,
Orlando, FL 32822–5024.
Bart Vernace,
Acting Manager, Orlando Airports District
Office, Southern Region.
[FR Doc. 06–4476 Filed 5–11–06; 8:45 am]
BILLING CODE 4910–13–M
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Notice of Availability of the Final
Environmental Impact Statement
Containing a DOT Section 4(f)/303(c)
Evaluation for a Proposed
Replacement Airport for the City of St.
George, UT
The lead federal agency is the
Federal Aviation Administration (FAA),
DOT. The National Park Service (NPS)
is a cooperative Federal agency.
ACTION: Notice of Availability of the
Final Environmental Impact Statement.
AGENCY:
SUMMARY: The Federal Aviation
Administration (FAA) is issuing this
Notice of Availability to advise the
public that a Final Environmental
Impact Statement (FEIS) containing a
DOT section 4(f)/303(c) evaluation has
been prepared for the proposed
replacement airport for the City of St.
George, Utah. The FEIS will be available
for public review beginning May 19,
2006. The FAA will accept comments
on new and/or revised/updated
information and analyses disclosed in
Appendix T through Y and in Chapter
6, section 6.4, Air Quality, until 5 p.m.
Pacific Daylight Time, Monday, July 3,
2006, at the address listed in the section
entitled: FOR FURTHER INFORMATION
CONTACT.
The FEIS addresses the environmental
impacts associated with the
development of a replacement airport
for St. George Municipal Airport in the
City of St. George, Washington City, and
Washington County, Utah. The FEIS is
submitted for review pursuant to major
environmental directives to comply
with NEPA: Section 102(2)(c) of the
National Environmental Policy Act of
1969 (Pub. L. 91–190); and other
applicable Federal and state
environmental laws, regulations,
Executive Orders, and statutes.
The FAA will not make a decision on
the proposed action for a minimum of
45 days following the publishing of the
Notice of Availability of the FEIS in the
E:\FR\FM\12MYN1.SGM
12MYN1
]]>Agencies
[Federal Register Volume 71, Number 92 (Friday, May 12, 2006)]
[Notices]
[Pages 27768-27770]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-7246]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53761; File No. SR-Phlx-2006-20]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
and Amendment No. 2 Thereto Establishing a Pilot Option Transaction
Charge Credit for Specialists That Send Certain Principal Acting as
Agent Orders for Execution Via the Intermarket Option Linkage
May 5, 2006.
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 March 31, 2006, 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 Exchange. On April
25, 2006, the Exchange filed Amendment No. 1 to the proposed rule
change, and withdrew Amendment No. 1 on May 4, 2006. On May 5, 2006,
the Exchange filed Amendment No. 2.\3\ The Exchange has designated this
proposal as one establishing or changing a due, fee, or other charge
imposed by a self-regulatory organization pursuant to Section
19(b)(3)(A)(ii) of the Act \4\ and Rule 19b-4(f)(2) thereunder,\5\
which renders the proposal effective upon filing with the
Commission.\6\ 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. 2, the Exchange clarified that the proposed
rule change is a pilot that will expire on July 31, 2006. In
Amendment No. 2, the Exchange also clarified the purpose of the
proposed rule change and made technical changes to the proposed rule
change, including the proposed rule text.
\4\ 15 U.S.C. 78s(b)(3)(A)(ii).
\5\ 17 CFR 240.19b-4(f)(2).
\6\ For purposes of calculating the 60-day period within which
the Commission may summarily abrogate the proposed rule change the
Commission considers the period to commence on May 5, 2006, the date
on which the Exchange filed Amendment No. 2. See 15 U.S.C.
78s(b)(3)(C).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to establish an option transaction charge
credit of $0.21 per contract for Exchange options specialist units\7\
that incur Phlx option transaction charges when a customer order is
delivered to the limit order book via the Exchange's Options Floor
Broker Management System (``FBMS'') \8\ and is then sent to an away
market and executed via the Intermarket Option Linkage (``Linkage'')
under the Plan for the Purpose of Creating and Operating an Intermarket
Option Linkage ( ``Plan'') \9\ as a Principal Acting as Agent Order
(``P/A Order'').\10\
---------------------------------------------------------------------------
\7\ The Exchange uses the terms ``specialist'' and ``specialist
unit'' interchangeably in its proposed rule change.
\8\ The FBMS is a component of the Exchange's Automated Options
Market (AUTOM) System designed to enable Floor Brokers and/or their
employees to enter, route and report transactions stemming from
options orders received on the Exchange. The Options FBMS also is
designed to establish an electronic audit trail for options orders
represented and executed by Floor Brokers on the Exchange, such that
the audit trial provides an accurate, time-sequenced record of
electronic and other orders, quotations and transactions on the
Exchange, beginning with the receipt of an order by the Exchange,
and further documenting the life of the order through the process of
execution, partial execution, or cancellation of that order. See
Phlx Rule 1080, Commentary .06.
\9\ See Securities Exchange Act Release Nos. 43086 (July 28,
2000), 65 FR 48023 (August 4, 2000); and 43573 (November 16, 2000),
65 FR 70851 (November 28, 2000) (order approving Phlx as a
participant in the Plan).
\10\ 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 Phlx Rule 1083(k)(i).
---------------------------------------------------------------------------
This proposal is a pilot that will expire on July 31, 2006, is in
connection
[[Page 27769]]
with an existing pilot program that is currently scheduled to expire on
July 31, 2006,\11\ and applies to transactions settling on or after
April 3, 2006.
---------------------------------------------------------------------------
\11\ Fees for Linkage P and P/A orders are currently subject to
a pilot program scheduled to expire on July 31, 2006. See, e.g.,
Securities Exchange Act Release No. 52095 (July 21, 2005), 70 FR
43733 (July 28, 2005) (SR-Phlx-2005-46).
---------------------------------------------------------------------------
The text of the proposed rule change is available at the
Commission's Public Reference Room, at the Office of the Secretary of
the Exchange, and on the Exchange's Web site at https://www.Phlx.com.
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 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 this proposed rule change is to alleviate the
potential economic burden of multiple transaction charges imposed on
Exchange specialist units by establishing a credit for Exchange option
transaction charges incurred by an Exchange specialist unit when a
customer limit order placed on the limit order book by a Floor Broker
\12\ results in an execution of a P/A Order that is sent to another
exchange via Linkage.
---------------------------------------------------------------------------
\12\ A Floor Broker who wishes to place a limit order on the
limit order book must submit such a limit order electronically
through the FBMS. See Exchange Rule 1063, Commentary .01. See also,
Exchange Rule 1080, Commentary .02(b).
---------------------------------------------------------------------------
Currently, when an Exchange specialist sends a P/A Order through
Linkage to an away market, the specialist unit ultimately pays fees to
execute the order at both the Exchange and the away market center. The
Exchange believes that the imposition of both fees may place an
economic burden on Exchange specialist units. The purpose of this
proposal is to credit the specialist for the fee that is charged by the
Exchange. The Exchange believes that an options transaction charge
credit of $0.21 per contract should encourage the use of the Linkage
and reduce the potential economic burden of multiple fees that may be
incurred by specialist units when a customer order is delivered to the
limit order book via the FBMS and is then sent and executed via the
Linkage. In addition, this proposal should allow the Exchange to remain
competitive with other exchanges with respect to the assessment of
Linkage-related fees.\13\
---------------------------------------------------------------------------
\13\ See Securities Exchange Act Release Nos. 53526 (March 21,
2006), 71 FR 15794 (March 29, 2006) (SR-PCX-2006-19) (rebate of the
transaction fees charged to Market Makers when they use the Linkage
to send a P/A Order to another options exchange); and 53372
(February 24, 2006), 71 FR 11003 (March 3, 2006) (SR-CBOE-2006-10)
(rebate of certain transaction fees to Designated Primary Market
Makers related to the execution of outbound P/A Orders).
---------------------------------------------------------------------------
This proposal is a pilot that will expire on July 31, 2006, is in
connection with an existing pilot program that is currently scheduled
to expire on July 31, 2006,\14\ and applies to transactions settling on
or after April 3, 2006.
---------------------------------------------------------------------------
\14\ See supra at note 11.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal to amend its schedule of
fees is consistent with Section 6(b) of the Act \15\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \16\ in
particular, in that it is an equitable allocation of reasonable fees
and other charges among Exchange members and issuers and other persons
using its facilities.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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 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 foregoing proposed rule change establishes or changes a due,
fee, or other charge applicable only to a member pursuant to Section
19(b)(3)(A)(ii) of the Act \17\ and Rule 19b-4(f)(2) thereunder.\18\
Accordingly, the proposal took effect upon filing with the Commission.
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78s(b)(3)(A)(ii).
\18\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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.\19\
---------------------------------------------------------------------------
\19\ See supra at note 6.
---------------------------------------------------------------------------
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-2006-20 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-Phlx-2006-20. 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 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
[[Page 27770]]
you wish to make available publicly. All submissions should refer to
File Number SR-Phlx-2006-20 and should be submitted on or before June
2, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\20\
---------------------------------------------------------------------------
\20\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-7246 Filed 5-11-06; 8:45 am]
BILLING CODE 8010-01-P
