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]
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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.
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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 (https://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 (https://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
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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, https://
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
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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).
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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
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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 (https://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 (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 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: https://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 https://
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
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]]>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]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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, https://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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\10\ See supra note 5 (noting that the Exchange will publish a
circular listing the applicable ETFs).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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).
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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\
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\20\ See 15 U.S.C. 78s(b)(3)(C).
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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 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 (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 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
