Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Order Granting Approval to Proposed Rule Change and Amendment No. 1 Thereto Relating To Reducing Staffing Requirements for Options Specialist Units, 42706 [E6-12002]

Download as PDF 42706 Federal Register / Vol. 71, No. 144 / Thursday, July 27, 2006 / Notices delisting criteria for the Notes should help to maintain a minimum level of liquidity and therefore minimize the potential for manipulation of the Notes. The Exchange represents that it would file a proposed rule change, pursuant to Rule 19b–4,46 (which must be approved for continued trading of the Notes) if the Index Sponsor materially changes the composition of the GSCI, the Index, the methodology of calculating the value of the GSCI or the Index, or any other policies relevant to the Index. Finally, the Commission notes that the Information Memorandum that the Exchange will distribute will inform members and member organizations about the terms, characteristics and risks in trading the Notes, including their prospectus delivery obligations. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change (SR–NYSE–2006– 19), as amended, be, and it hereby is, approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.47 J. Lynn Taylor, Assistant Secretary. [FR Doc. E6–11985 Filed 7–26–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54190; File No. SR–Phlx– 2006–30] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Order Granting Approval to Proposed Rule Change and Amendment No. 1 Thereto Relating To Reducing Staffing Requirements for Options Specialist Units Allocation, Evaluation and Securities Committee (‘‘Options Allocation Committee’’) to require a unit to obtain additional staffing. On June 6, 2006, Phlx filed Amendment No. 1 to the proposed rule change.3 The proposed rule change, as amended, was published for comment in the Federal Register on June 20, 2006.4 The Commission received no comments regarding the proposal, as amended. This order approves the proposed rule change, as amended. Currently, Phlx Rule 501(d) requires that to be approved as an options or foreign currency options specialist unit and retain such status, the specialist unit must have at each quarter turret or trading post one head specialist, two assistant specialists (at least one of whom must be associated with the specialist unit), and one specialist clerk.5 However, as the Exchange and member organizations continue to enhance options trading technology and options orders are now automatically executed on the Exchange over 90% of the time, the Exchange believes that the need to maintain the present required staffing levels for every specialist unit is significantly reduced. The Exchange believes that, in light of such technological advances, and in conjunction with requests from specialist units for greater staffing flexibility, requiring only one assistant specialist and eliminating the requirement for a specialist clerk is warranted.6 Furthermore, the Phlx believes that the number of foreign currency option orders executed on the Exchange does not warrant the continued level of staffing.7 The Commission finds that the proposed rule change, as amended, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.8 In particular, the rwilkins on PROD1PC63 with NOTICES July 21, 2006. On May 4, 2006, 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 a proposed rule change to amend Phlx Rule 501(d) to reduce the mandatory staffing requirement to be approved as an options or foreign currency options specialist unit and to retain such status, while continuing to enable the Exchange’s Options 46 17 CFR 240.19b–4. CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 47 17 VerDate Aug<31>2005 16:46 Jul 26, 2006 Jkt 208001 Amendment No. 1, the Exchange clarified the rationale for reducing staffing for foreign currency options and made non-substantive changes to the proposed rule change. 4 See Securities Exchange Act Release No. 53979 (June 14, 2006), 71 FR 35475 (the ‘‘Notice’’). 5 The Exchange is also proposing to make nonsubstantive changes to Phlx Rule 501(d) such as deletion of obsolete references to quarter turrets, which are no longer used on the floor. 6 The changes proposed in Phlx Rule 501(d) herein are not intended to alter other specialist unit obligations established by Phlx rules. 7 In the Notice, the Exchange represented that in 2005, the number of foreign currency options orders executed on the Exchange was less than one percent of the overall number of option orders executed on the Exchange. 8 In approving this proposed rule change, as amended, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). PO 00000 3 In Frm 00082 Fmt 4703 Sfmt 4703 Commission believes that the proposal, as amended, is consistent with Section 6(b)(5) of the Act, which requires that the rules of an exchange be designed to promote just and equitable principles of trade, and to protect investors and the public interest. Specifically, the proposed rule change, as amended, should provide flexibility in options and foreign currency options specialist unit staffing by reducing the mandatory staffing requirement. At the same time, Phlx Rule 501(d) will continue to provide the Options Allocation Committee with the ability to require a specialist unit to obtain additional staffing depending upon the number of assigned options classes and associated order flow. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,9 that the proposed rule change (SR–Phlx–2006– 30), as amended, is hereby approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Jill M. Peterson, Assistant Secretary. [FR Doc. E6–12002 Filed 7–26–06; 8:45 am] BILLING CODE 8010–01–P DEPARTMENT OF STATE [Public Notice 5476] Bureau of Educational and Cultural Affairs (ECA) Request for Grant Proposals: Serbia Youth Leadership Program Announcement Type: New Grant. Funding Opportunity Number: ECA/ PE/C/PY–07–04. Catalog of Federal Domestic Assistance Number: 00.000 Application Deadline: September 21, 2006. Executive Summary: The Office of Citizen Exchanges, Youth Programs Division, of the Bureau of Educational and Cultural Affairs (ECA) announces an open competition for the Serbia Youth Leadership Program. Public and private non-profit organizations meeting the provisions described in Internal Revenue Code section 26 U.S.C. 501(c)(3) may submit proposals to recruit and select youth and adult participants in Serbia and to provide the participants with U.S.-based exchange projects focused on civic education and leadership. 9 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 10 17 E:\FR\FM\27JYN1.SGM 27JYN1

Agencies

[Federal Register Volume 71, Number 144 (Thursday, July 27, 2006)]
[Notices]
[Page 42706]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-12002]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54190; File No. SR-Phlx-2006-30]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Order Granting Approval to Proposed Rule Change and Amendment No. 1 
Thereto Relating To Reducing Staffing Requirements for Options 
Specialist Units

July 21, 2006.
    On May 4, 2006, 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\ a 
proposed rule change to amend Phlx Rule 501(d) to reduce the mandatory 
staffing requirement to be approved as an options or foreign currency 
options specialist unit and to retain such status, while continuing to 
enable the Exchange's Options Allocation, Evaluation and Securities 
Committee (``Options Allocation Committee'') to require a unit to 
obtain additional staffing. On June 6, 2006, Phlx filed Amendment No. 1 
to the proposed rule change.\3\ The proposed rule change, as amended, 
was published for comment in the Federal Register on June 20, 2006.\4\ 
The Commission received no comments regarding the proposal, as amended. 
This order approves the proposed rule change, as amended.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange clarified the rationale for 
reducing staffing for foreign currency options and made non-
substantive changes to the proposed rule change.
    \4\ See Securities Exchange Act Release No. 53979 (June 14, 
2006), 71 FR 35475 (the ``Notice'').
---------------------------------------------------------------------------

    Currently, Phlx Rule 501(d) requires that to be approved as an 
options or foreign currency options specialist unit and retain such 
status, the specialist unit must have at each quarter turret or trading 
post one head specialist, two assistant specialists (at least one of 
whom must be associated with the specialist unit), and one specialist 
clerk.\5\ However, as the Exchange and member organizations continue to 
enhance options trading technology and options orders are now 
automatically executed on the Exchange over 90% of the time, the 
Exchange believes that the need to maintain the present required 
staffing levels for every specialist unit is significantly reduced. The 
Exchange believes that, in light of such technological advances, and in 
conjunction with requests from specialist units for greater staffing 
flexibility, requiring only one assistant specialist and eliminating 
the requirement for a specialist clerk is warranted.\6\ Furthermore, 
the Phlx believes that the number of foreign currency option orders 
executed on the Exchange does not warrant the continued level of 
staffing.\7\
---------------------------------------------------------------------------

    \5\ The Exchange is also proposing to make non-substantive 
changes to Phlx Rule 501(d) such as deletion of obsolete references 
to quarter turrets, which are no longer used on the floor.
    \6\ The changes proposed in Phlx Rule 501(d) herein are not 
intended to alter other specialist unit obligations established by 
Phlx rules.
    \7\ In the Notice, the Exchange represented that in 2005, the 
number of foreign currency options orders executed on the Exchange 
was less than one percent of the overall number of option orders 
executed on the Exchange.
---------------------------------------------------------------------------

    The Commission finds that the proposed rule change, as amended, 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 believes that the proposal, as amended, 
is consistent with Section 6(b)(5) of the Act, which requires that the 
rules of an exchange be designed to promote just and equitable 
principles of trade, and to protect investors and the public interest. 
Specifically, the proposed rule change, as amended, should provide 
flexibility in options and foreign currency options specialist unit 
staffing by reducing the mandatory staffing requirement. At the same 
time, Phlx Rule 501(d) will continue to provide the Options Allocation 
Committee with the ability to require a specialist unit to obtain 
additional staffing depending upon the number of assigned options 
classes and associated order flow.
---------------------------------------------------------------------------

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

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-Phlx-2006-30), as amended, is 
hereby approved.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6-12002 Filed 7-26-06; 8:45 am]
BILLING CODE 8010-01-P