Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Definition of Core Session for XLE, 67418-67420 [E6-19623]

Download as PDF 67418 Federal Register / Vol. 71, No. 224 / Tuesday, November 21, 2006 / Notices exchanges would normally begin introducing LEAPS expiring in 2010 making a 2009 implementation impracticable). The delay in implementation will ensure that all options series opened before the ODD disclosure is made available (other than certain ‘‘flex’’ options that will be grandfathered under the old rule) will have expired before the change is effected.12 While delaying the implementation until 2009 postpones the benefit of making this needed change, it accommodates the many firms that find the operational hurdles and fairness issues associated with an earlier implementation onerous. OCC believes that the proposed rule change is consistent with the requirements of Section 17A of the Act 13 and the rules and regulations thereunder applicable to OCC because (1) it is intended to eliminate inequities that result from certain rounding practices currently required by OCC’s By-Laws and thus protect investors and (2) it is intended to make more predictable when cash distributions by an issuer will result in an adjustment to an option contract and thus make the process for adjustments more equitable for all investors. (B) Self-Regulatory Organization’s Statement on Burden on Competition OCC does not believe that the proposed rule change would impose any burden on competition. (C) Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments were not and are not intended to be solicited with respect to the proposed rule change and none have been received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action sroberts on PROD1PC70 with NOTICES Within thirty-five days of the date of publication of this notice in the Federal 12 OCC intends to take a ‘‘snapshot’’ of flex series expiring after January 31, 2009, that are outstanding at the time when ODD disclosure of the rule change is made. Those series will be assigned distinctive trading symbols and ‘‘grandfathered’’ under the old rule. Trading will continue normally in grandfathered series until their expiration, but the exchanges would be free to open otherwise identical non-grandfathered series, which would be identified by conventional flex trading symbols. If ODD disclosure is not made until after the December 2006 expiration, it may also be necessary to grandfather two classes of LEAPs with December expirations (SPY and S&P 100 i-Shares) because the exchanges would ordinarily introduce new series expiring in December 2009 after the December 2006 expiration. 13 15 U.S.C. 78q–1. VerDate Aug<31>2005 14:17 Nov 20, 2006 Jkt 211001 Register or within such longer period (i) as the Commission may designate up to ninety 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. information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–OCC–2006–01 and should be submitted on or before December 12, 2006. 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: BILLING CODE 8011–01–P 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–OCC–2006–01 on the subject line. For the Commission by the Division of Market Regulation, pursuant to delegated authority.14 Nancy M. Morris, Secretary. [FR Doc. E6–19619 Filed 11–20–06; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54749; File No. SR–Phlx– 2006–73] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Definition of Core Session for XLE November 14, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 Paper Comments (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on November • Send paper comments in triplicate 9, 2006, the Philadelphia Stock to Nancy M. Morris, Secretary, Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) Securities and Exchange Commission, filed with the Securities and Exchange 100 F Street, NE., Washington, DC Commission (‘‘Commission’’) the 20549–1090. proposed rule change as described in All submissions should refer to File Items I and II below, which Items have Number SR-OCC–2006–01. This file been prepared by the Phlx. The number should be included on the subject line if e-mail is used. To help the Exchange filed the proposal as a ‘‘noncontroversial’’ rule change pursuant to Commission process and review your Section 19(b)(3)(A) of the Act 3 and Rule comments more efficiently, please use 4 only one method. The Commission will 19b–4(f)(6) thereunder, which rendered the proposal effective upon filing with post all comments on the Commission’s the Commission. The Commission is Internet Web site (http://www.sec.gov/ publishing this notice to solicit rules/sro.shtml). Copies of the comments on the proposed rule change submission, all subsequent from interested persons. amendments, all written statements with respect to the proposed rule I. Self-Regulatory Organization’s change that are filed with the Statement of the Terms of Substance of Commission, and all written the Proposed Rule Change communications relating to the The Phlx proposes to modify the proposed rule change between the definition of ‘‘Core Session’’ in Phlx Commission and any person, other than Rule 101, Supplementary Material those that may be withheld from the .02(2), to state that the Core Session public in accordance with the shall take place for each equity security provisions of 5 U.S.C. 552, will be from 9:30 a.m. until 4 p.m., except for available for inspection and copying in specified exchange-traded funds the Commission’s Public Reference (‘‘ETFs’’) in which case the Core Session Section, 100 F Street, NE., Washington, shall continue until 4:15 p.m. The text DC 20549. Copies of such filing also will of the proposed rule change is available be available for inspection and copying at the principal office of OCC and on 14 17 CFR 200.30–3(a)(12). OCC’s Web site at www.theocc.com. All 1 15 U.S.C. 78s(b)(1). comments received will be posted 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). without change; the Commission does 4 17 CFR 240.19b–4(f)(6). not edit personal identifying PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 E:\FR\FM\21NON1.SGM 21NON1 Federal Register / Vol. 71, No. 224 / Tuesday, November 21, 2006 / Notices trading hours’’ as defined in Rule 600(b)(64) of Regulation NMS,8 Phlx inadvertently failed to make its Core Session coextensive with existing primary sessions employed by other II. Self-Regulatory Organization’s exchanges with respect to ETF trading. Statement of the Purpose of, and The Exchange notes that while other Statutory Basis for, the Proposed Rule exchanges have adopted rules extending Change their primary trading session until 4:15 In its filing with the Commission, the p.m. for certain securities (i.e., ETFs), Phlx included statements concerning ‘‘the Commission has not approved an the purpose of and basis for the [exchange] rule modifying the definition proposed rule change and discussed any of regular trading hours [to some time comments it received on the proposed p.m] for purposes of Rule rule change. The text of these statements other than 4 9 600(b)(64).’’ may be examined at the places specified The Exchange now proposes to in Item IV below. The Phlx has prepared modify the definition of its Core Session summaries, set forth in Sections A, B, for XLE to allow the Exchange to set the and C below, of the most significant aspects of such statements. ending time of the Core Session to 4:15 p.m. for certain ETFs.10 This will allow A. Self-Regulatory Organization’s those ETFs that trade until 4:15 p.m. to Statement of the Purpose of, and trade until that time during XLE’s Core Statutory Basis for, the Proposed Rule Session. The Exchange believes that this Change proposed rule change should reduce 1. Purpose confusion among market participants who enter orders on multiple exchanges The purpose of the proposed rule change is to ensure that ETFs 5 that trade in these products by allowing for the on the Exchange have the same primary harmonization of trading times across Phlx and other exchanges. or core trading hours as these securities have on their listing exchanges. When 2. Statutory Basis the Phlx begins trading using its new 6 the hours equity trading system, XLE, The Exchange believes that its of operation will change from the proposal is consistent with Section 6(b) current hours of operation used on the of the Act 11 in general, and furthers the physical equity trading floor. Currently, objectives of Section 6(b)(5) of the Act 12 for any given security, the Primary in particular, in that it is designed to Trading Session hours on Phlx are promote just and equitable principles of identical to the hours of trading for that trade, to remove impediments to and security on its primary market.7 Many perfect the mechanism of a free and ETFs trade on their primary market open market and a national market until 4:15 p.m. system, and, in general to protect In adopting XLE, Phlx intended to investors and the public interest. modify its trading hours for equities, but did not intend to change the ‘‘primary’’ B. Self-Regulatory Organization’s or ‘‘core’’ hours that securities are Statement on Burden on Competition usually traded. Specifically, Phlx The Exchange does not believe that adopted its XLE Trading Hours with a Pre Market Session, a Core Session, and the proposed rule change will impose any burden on competition that is not a Post Market Session. The Exchange necessary or appropriate in furtherance intended the Core Session to be of the purposes of the Act. coextensive with existing primary sessions that are employed by other C. Self-Regulatory Organization’s exchanges. Phlx defined the Core Statement on Comments on the Session as taking place ‘‘for each Proposed Rule Change Received From security during that security’s ‘regular Members, Participants, or Others trading hours’ as that term is defined in Rule 600(b)(64) of Regulation NMS.’’ The Exchange has neither solicited However, by using the term ‘‘regular nor received written comments on the proposed rule change. sroberts on PROD1PC70 with NOTICES on Phlx’s Web site, http:// www.phlx.com, at Phlx’s principal office, and at the Commission’s Public Reference Room. 5 The Exchange represents that it will publish, via an Exchange circular, a list of the exchange-traded funds that will have a Core Session that ends at 4:15 p.m. 6 XLE is the new equity trading system on Phlx for trading NMS Stocks. See Securities Exchange Act Release No. 54538 (September 28, 2006), 71 FR 59184 (October 6, 2006) (SR–Phlx–2006–43). 7 See the pre-XLE version of Phlx Rule 101, Supplementary .02(i). VerDate Aug<31>2005 14:17 Nov 20, 2006 Jkt 211001 III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing rule does not (i) significantly affect the protection of investors or the public interest; (ii) does not impose any significant burden on competition; and (iii) by its terms, does not become operative for 30 days from the date 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, provided that the Exchange has given the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change or such shorter time as designated by the Commission, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 13 and Rule 19b–4(f)(6) thereunder.14 As required under Rule 19b–4(f)(6)(iii) under the Act,15 Phlx provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, prior to the date of the filing of the proposed rule change. A proposed rule change filed under Rule 19b–4(f)(6) under the Act 16 normally may not become operative prior to 30 days after the date of filing. However, Rule 19b–4(f)(6)(iii) under the Act 17 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay, which would make the rule change effective and operative upon filing. The Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest, because it allows the Exchange to implement this proposal without delay in order to accommodate the Exchange’s plans to commence operations of XLE. The Commission notes that the Exchange has represented that its proposed rule change is based upon a similar rule of the Chicago Stock Exchange, Inc. (‘‘CHX’’).18 For these reasons, the Commission designates the 13 15 8 17 CFR 600(b)(64). 9 See Division of Market Regulation: Response to Frequently Asked Questions Concerning Rule 611 and Rule 610 of Regulation NMS Question 7.02. 10 See supra note 5 (noting that the Exchange will publish a circular listing the applicable ETFs). 11 15 U.S.C. 78f(b). 12 15 U.S.C. 78f(b)(5). PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 67419 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 15 17 CFR 240.19b–4(f)(6)(iii). 16 17 CFR 240.19b–4(f)(6). 17 17 CFR 240.19b–4(f)(6)(iii). 18 See Securities Exchange Act Release No. 54550 (September 29, 2006), 71 FR 59563 (October 10, 2006) (SR–CHX–2006–05) (approval order for CHX’s new electronic trading system). 14 17 E:\FR\FM\21NON1.SGM 21NON1 67420 Federal Register / Vol. 71, No. 224 / Tuesday, November 21, 2006 / Notices proposal to be effective and operative upon filing with the Commission.19 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.20 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 Number SR–Phlx–2006–73 on the subject line. sroberts on PROD1PC70 with NOTICES 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–2006–73. 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 the filing also will be available for inspection and copying at the principal office of the Phlx. All comments received will be posted 19 For the purposess only of accelerating the operative date of this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 20 See 15 U.S.C. 78s(b)(3)(C). VerDate Aug<31>2005 14:17 Nov 20, 2006 Jkt 211001 without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–Phlx–2006–73 and should be submitted on or before December 12, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.21 Nancy M. Morris, Secretary. [FR Doc. E6–19623 Filed 11–20–06; 8:45 am] BILLING CODE 8011–01–P DEPARTMENT OF TRANSPORTATION 4910–22–P Federal Highway Administration [Docket No. FHWA–2006–26363] Agency Information Collection Activities: Request for Comments for a New Information Collection Federal Highway Administration (FHWA), Department of Transportation (DOT). ACTION: Notice and request for comments. AGENCY: SUMMARY: The FHWA invites public comments about our intention to request the Office of Management and Budget’s (OMB) approval for a new information collection, which is summarized below under Supplementary Information. We are required to publish this notice in the Federal Register by the Paperwork Reduction Act of 1995. DATES: Please submit comments by January 22, 2007. ADDRESSES: You may submit comments identified by DOT DMS Docket Number FHWA–2006–26363 by any of the following methods: • Web site: http://dms.dot.gov. Follow the instructions for submitting comments on the DOT electronic docket site. • Fax: 1–202–493–2251 • Mail: Docket Management Facility; U.S. Department of Transportation, 400 Seventh Street, SW., Nassif Building, Room PL–401, Washington, DC, 20590– 0001. • Hand Delivery: Room PL–401 on the plaza level of the Nassif Building, 400 Seventh Street, S.W., Washington, DC, 20590–0001 between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. Docket: For access to the docket to read background documents or 21 17 PO 00000 CFR 200.30–3(a)(12). Frm 00095 Fmt 4703 Sfmt 4703 comments received, go to http:// dms.dot.gov at any time or to Room 401 on the plaza level of the Nassif Building, 400 Seventh Street, SW., Washington, DC, 20590, between 9 a.m. and 5p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: Michael Koontz, 202–366–2076, or Robert Kafalenos, 202–366–2079, Office of Natural and Human Environment, Federal Highway Administration, Department of Transportation, 400 Seventh Street, SW., Washington, DC, 20590. Office hours are from 8 a.m. to 5 p.m., Monday through Friday, except Federal holidays. SUPPLEMENTARY INFORMATION: Title: Annual Reporting for the Congestion Mitigation and Air Quality Improvement (CMAQ) Program. Background: Section 1808 of the Safe, Accountable, Flexible, Efficient Transportation Equity. Act: A Legacy for Users of 2005 (SAFETEA–LU) calls for an Evaluation and Assessment of CMAQ Projects. The statute calls for the identification and analysis of a representative sample of CMAQ projects and the development and population of a database that describes the impacts of the program both on traffic congestion levels and air quality. To establish and maintain this database, the FHWA is requesting States to submit annual reports on their CMAQ investments that cover projected air quality benefits, financial information, a brief description of projects, and several other factors outlined in the Interim Program Guidance for the CMAQ program. States are requested to provide the end of year summary reports via the automated system provided through FHWA by the first day of February of each year, covering the prior Federal fiscal year. Respondents: 51; each State DOT, and Washington DC. Frequency: Annually. Estimated Average Burden per Response: 6 hours per annual report. Estimated Total Annual Burden Hours: 306 hours. Public Comments Invited: You are asked to comment on any aspect of this information collection, including: (1) Whether the proposed collection is necessary for the FHWA’s performance; (2) the accuracy of the estimated burdens; (3) ways for the FHWA to enhance the quality, usefulness, and clarity of the collected information; and (4) ways that the burden could be minimized, including the use of electronic technology, without reducing the quality of the collected information. The agency will summarize and/or E:\FR\FM\21NON1.SGM 21NON1

Agencies

[Federal Register Volume 71, Number 224 (Tuesday, November 21, 2006)]
[Notices]
[Pages 67418-67420]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-19623]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54749; File No. SR-Phlx-2006-73]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Definition of Core Session for XLE

November 14, 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 November 9, 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 and 
II below, which Items have been prepared by the Phlx. The Exchange 
filed the proposal as a ``non-controversial'' rule change pursuant to 
Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ 
which rendered the proposal effective upon filing with the Commission. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Phlx proposes to modify the definition of ``Core Session'' in 
Phlx Rule 101, Supplementary Material .02(2), to state that the Core 
Session shall take place for each equity security from 9:30 a.m. until 
4 p.m., except for specified exchange-traded funds (``ETFs'') in which 
case the Core Session shall continue until 4:15 p.m. The text of the 
proposed rule change is available

[[Page 67419]]

on Phlx's Web site, http://www.phlx.com, at Phlx's principal office, 
and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Phlx included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Phlx has prepared summaries, set forth in Sections 
A, B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to ensure that ETFs \5\ 
that trade on the Exchange have the same primary or core trading hours 
as these securities have on their listing exchanges. When the Phlx 
begins trading using its new equity trading system, XLE,\6\ the hours 
of operation will change from the current hours of operation used on 
the physical equity trading floor. Currently, for any given security, 
the Primary Trading Session hours on Phlx are identical to the hours of 
trading for that security on its primary market.\7\ Many ETFs trade on 
their primary market until 4:15 p.m.
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    \5\ The Exchange represents that it will publish, via an 
Exchange circular, a list of the exchange-traded funds that will 
have a Core Session that ends at 4:15 p.m.
    \6\ XLE is the new equity trading system on Phlx for trading NMS 
Stocks. See Securities Exchange Act Release No. 54538 (September 28, 
2006), 71 FR 59184 (October 6, 2006) (SR-Phlx-2006-43).
    \7\ See the pre-XLE version of Phlx Rule 101, Supplementary 
.02(i).
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    In adopting XLE, Phlx intended to modify its trading hours for 
equities, but did not intend to change the ``primary'' or ``core'' 
hours that securities are usually traded. Specifically, Phlx adopted 
its XLE Trading Hours with a Pre Market Session, a Core Session, and a 
Post Market Session. The Exchange intended the Core Session to be 
coextensive with existing primary sessions that are employed by other 
exchanges. Phlx defined the Core Session as taking place ``for each 
security during that security's `regular trading hours' as that term is 
defined in Rule 600(b)(64) of Regulation NMS.'' However, by using the 
term ``regular trading hours'' as defined in Rule 600(b)(64) of 
Regulation NMS,\8\ Phlx inadvertently failed to make its Core Session 
coextensive with existing primary sessions employed by other exchanges 
with respect to ETF trading. The Exchange notes that while other 
exchanges have adopted rules extending their primary trading session 
until 4:15 p.m. for certain securities (i.e., ETFs), ``the Commission 
has not approved an [exchange] rule modifying the definition of regular 
trading hours [to some time other than 4 p.m] for purposes of Rule 
600(b)(64).'' \9\
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    \8\ 17 CFR 600(b)(64).
    \9\ See Division of Market Regulation: Response to Frequently 
Asked Questions Concerning Rule 611 and Rule 610 of Regulation NMS 
Question 7.02.
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    The Exchange now proposes to modify the definition of its Core 
Session for XLE to allow the Exchange to set the ending time of the 
Core Session to 4:15 p.m. for certain ETFs.\10\ This will allow those 
ETFs that trade until 4:15 p.m. to trade until that time during XLE's 
Core Session. The Exchange believes that this proposed rule change 
should reduce confusion among market participants who enter orders on 
multiple exchanges in these products by allowing for the harmonization 
of trading times across Phlx and other exchanges.
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    \10\ See supra note 5 (noting that the Exchange will publish a 
circular listing the applicable ETFs).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \11\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \12\ in particular, in that it is designed to 
promote just and equitable principles of trade, to remove impediments 
to and perfect the mechanism of a free and open market and a national 
market system, and, in general to protect investors and the public 
interest.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing rule does not (i) significantly affect the 
protection of investors or the public interest; (ii) does not impose 
any significant burden on competition; and (iii) by its terms, does not 
become operative for 30 days from the date 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, provided that the 
Exchange has given the Commission written notice of its intent to file 
the proposed rule change at least five business days prior to the date 
of filing of the proposed rule change or such shorter time as 
designated by the Commission, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-
4(f)(6) thereunder.\14\ As required under Rule 19b-4(f)(6)(iii) under 
the Act,\15\ Phlx provided the Commission with written notice of its 
intent to file the proposed rule change, along with a brief description 
and text of the proposed rule change, prior to the date of the filing 
of the proposed rule change.
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 17 CFR 240.19b-4(f)(6)(iii).
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    A proposed rule change filed under Rule 19b-4(f)(6) under the Act 
\16\ normally may not become operative prior to 30 days after the date 
of filing. However, Rule 19b-4(f)(6)(iii) under the Act \17\ permits 
the Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has requested that the Commission waive the 30-day operative delay, 
which would make the rule change effective and operative upon filing. 
The Commission believes that waiver of the 30-day operative delay is 
consistent with the protection of investors and the public interest, 
because it allows the Exchange to implement this proposal without delay 
in order to accommodate the Exchange's plans to commence operations of 
XLE. The Commission notes that the Exchange has represented that its 
proposed rule change is based upon a similar rule of the Chicago Stock 
Exchange, Inc. (``CHX'').\18\ For these reasons, the Commission 
designates the

[[Page 67420]]

proposal to be effective and operative upon filing with the 
Commission.\19\
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    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 17 CFR 240.19b-4(f)(6)(iii).
    \18\ See Securities Exchange Act Release No. 54550 (September 
29, 2006), 71 FR 59563 (October 10, 2006) (SR-CHX-2006-05) (approval 
order for CHX's new electronic trading system).
    \19\ For the purposess only of accelerating the operative date 
of this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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.\20\
---------------------------------------------------------------------------

    \20\ See 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------

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 rule-comments@sec.gov. Please include 
File Number SR-Phlx-2006-73 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-2006-73. 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 the filing 
also will be available for inspection and copying at the principal 
office of the Phlx. All comments received will be posted without 
change; the Commission does not edit personal identifying information 
from submissions. You should submit only information that you wish to 
make available publicly. All submissions should refer to File Number 
SR-Phlx-2006-73 and should be submitted on or before December 12, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-19623 Filed 11-20-06; 8:45 am]
BILLING CODE 8011-01-P