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 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 (http://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 (http://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 http:// 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 (http://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 (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 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 http://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 (http://
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 (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 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\
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    \20\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-7246 Filed 5-11-06; 8:45 am]
BILLING CODE 8010-01-P