Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt Rule 185A, Intermarket Sweep Orders-Temporary, 67687-67689 [E6-19730]
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Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(iii) of the Act 12 and Rule
19b–4(f)(6) thereunder,13 because it: (i)
Does not 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 after the date of
the filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest.14
NYSE Arca requests that the
Commission waive the 30-day operative
period under Rule 19b–4(f)(6)(iii).15 The
Commission believes that it is
consistent with the protection of
investors and the public interest to
waive the 30-day operative delay,
because waiving the operative delay
will allow NYSE Arca investors to
immediately trade and price complex
orders in one cent increments on NYSE
Arca.16
At any time within 60 days of the
filing of such 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.17
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
12 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
14 As required by Rule 19b–4(f)(6)(iii) of the Act,
NYSE Arca provided the Commission with written
notice of its intent to file the proposed rule change,
along with a brief description of the text of the
proposed rule change, at least five business days
prior to the date of the filing of the proposed rule
change.
15 17 CFR 240.19b–4(f)(6)(iii).
16 For purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
17 See Section 19(b)(3)(C) of the Act, 15 U.S.C.
78s(b)(3)(C).
No. SR–NYSEArca–2006–81 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–54760; File No. SR–Phlx–
2006–76]
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File No.
SR–NYSEArca–2006–81. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of 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–NYSEArca–2006–81 and
should be submitted on or before
December 13, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.18
Nancy M. Morris,
Secretary.
[FR Doc. E6–19737 Filed 11–21–06; 8:45 am]
BILLING CODE 8011–01–P
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67687
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Adopt Rule 185A,
Intermarket Sweep Orders—Temporary
November 15, 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
13, 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 ‘‘noncontroversial’’ 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Phlx proposes to adopt Phlx Rule
185A, Intermarket Sweep Orders—
Temporary, which describes: (1) The
obligations of the Exchange sending
orders to other market centers, and (2)
the obligations of XLE Participants
sending Intermarket Sweep Orders
(‘‘ISOs’’) 5 or IOC Cross Orders that are
marked as meeting the requirement to
route to other market centers 6 (both
types of orders hereinafter are referred
to as ‘‘Incoming Sweep Orders’’).
Specifically, before Rule 611 of
Regulation NMS 7 is operative on the
Exchange (the ‘‘Trading Phase Date’’),8
Phlx would use away market obligations
instead of immediate-or-cancel
intermarket sweep orders. An away
market obligation is an immediate or
cancel limit order for an NMS stock
generated by Phlx in connection with
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
5 See Phlx Rule 185(b)(2)(C).
6 See Phlx Rule 185(c)(2)(D).
7 17 CFR 242.611.
8 The Trading Phase Date is February 5, 2007.
SeeSecurities Exchange Act Release No. 53829 (May
18, 2006), 71 FR 30038 (May 24, 2006) (File No. S7–
10–04).
2 17
18 17
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CFR 200.30–3(a)(12).
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Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Notices
the execution of an order by Phlx and
routed to one or more away market
centers to execute against all betterpriced protected quotations displayed
by the other market centers up to their
displayed size. If the away market
center is capable of receiving an
intermarket sweep order, the Exchange
may generate and utilize an intermarket
sweep order as the away market
obligation. In addition, before the
Trading Phase Date, the proposed new
rule would expressly require XLE
Participants sending Incoming Sweep
Orders to simultaneously send an
intermarket sweep order (or comparable
order) for the full displayed size of the
top of book of every other market center
displaying a better-priced protected
quotation. The text of the proposed rule
change is available 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.
pwalker on PROD1PC61 with NOTICES
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 clarify the operation of
XLE’s outbound routing and Incoming
Sweep Orders before the Trading Phase
Date. Currently, Phlx Rules
185(b)(1)(C)(i)–(ii) and (b)(2)(B) state
that when routing out to away market
centers, Phlx will use ‘‘immediate-orcancel intermarket sweep orders’’ to
execute against any away market centers
with better-priced quotations. However,
prior to the Trading Phase Date, not all
away market centers will accept
intermarket sweep orders. Therefore, in
order to implement away routing before
the Trading Phase Date, Phlx will use
‘‘away market obligations’’ instead of
‘‘immediate-or-cancel intermarket
sweep orders.’’ In addition, before the
Trading Phase Date, Phlx will require
XLE Participants who send Incoming
Sweep Orders to the Exchange to
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simultaneously send an intermarket
sweep order (or comparable order) for
the full displayed size of the top of book
of every other market center displaying
a better-priced protected quotation. This
requirement is intended to mirror the
requirement, which will be operative
after the Trading Phase Date, that all
such Incoming Sweep Orders meet the
requirement of intermarket sweep
orders in Rule 600(b)(30) of Regulation
NMS.9 The Exchange notes that it has
requested an exemption from the
provisions of the Intermarket Trading
System Plan to allow, among other
things, the Exchange and its XLE
Participants to implement outbound
routing and Incoming Sweep Orders in
this manner prior the Trading Phase
Date.10
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.
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
No written comments were either
solicited or received by the Exchange.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule (i) Does not
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
9 17
CFR 242.600(b)(30).
Letter from John Dayton, Director and
Counsel,Phlx, to Nancy M. Morris, Secretary,
Commission, dated November 9, 2006. See also
Letter from David Shillman, Associate Director,
Division of Market Regulation, Commission, to John
Dayton, Director and Counsel, Phlx, dated
November 14, 2006.
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(5).
10 See
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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 operation of XLE.
The Commission notes that the
Exchange has represented that the
proposed rule change is based upon a
proposed rule change of the American
Stock Exchange LLC (‘‘Amex’’).18 For
these reasons, the Commission
designates the 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
13 15
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. 54709
(November 3, 2006), 71 FR 65847 (November 9,
2006) (SR–Amex–2006–72) (approval order for
Amex’s new electronic trading system on a pilot
basis, specifically Amex Rules 126A–AEMI–One
and 131–AEMI–One).
19 For the purposes 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).
14 17
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Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Notices
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:
pwalker on PROD1PC61 with NOTICES
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–2006–76 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–2006–76. 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–2006–76 and should
be submitted on or before December 13,
2006.
20 See
21 17
15 U.S.C. 78s(b)(3)(C).
CFR 200.30–3(a)(12).
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22:25 Nov 21, 2006
Jkt 211001
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.21
Nancy M. Morris,
Secretary.
[FR Doc. E6–19730 Filed 11–21–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54756; File No. SR–SCCP–
2006–03]
Self-Regulatory Organizations; Stock
Clearing Corporation of Philadelphia;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change Relating to Trade Recording
and Value Fees and NMS Linkage
November 15, 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
September 26, 2006, Stock Clearing
Corporation of Philadelphia (‘‘SCCP’’)
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 SCCP. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
SCCP, pursuant to Section 19(b)(1) of
the Act 3 and Rule 19b–4 thereunder,4 is
amending its Trade Recording Fee and
its Value Fee (together ‘‘Fees’’) that are
set forth in its Fee Schedule. The
amendment extends the application of
the Fees to an order that is executed by
way of an outbound NMS Linkage order
when such outbound NMS Linkage
order reflects the PACE order’s clearing
information after being delivered to the
Philadelphia Stock Exchange, Inc.
(‘‘Phlx’’) by the PACE system.5 The Fees
will not apply where a PACE order was
executed against an inbound NMS
Linkage order.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(1).
4 17 CFR 240.19b–4.
5 PACE is Phlx’s automated order routing,
delivery, execution and reporting system for
equities. Phlx Rule 229.
2 17
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67689
I. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
SCCP 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. SCCP 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
The purpose of the proposed rule
change is treat PACE trades that interact
with NMS Linkage 6 orders the same as
Intermarket Trading System (‘‘ITS’’)
commitments with respect to the Fees.7
The NMS Linkage Plan is the successor
plan to the ITS Plan. While there are
some operational differences between
the two plans, both facilitate
intermarket linkage among market
centers trading certain listed securities,
and SCCP believes the NMS Linkage
Plan will be used in a similar manner
as the ITS Plan by Phlx members and
member organizations. Therefore, SCCP
proposes to apply the Fees to PACE
trades that interact with NMS Linkage
orders in the identical manner as PACE
trades that interact with ITS
commitments. This is accomplished by
adding the words ‘‘or NMS Linkage
order’’ to footnote 1 in the SCCP Fee
Schedule.
SCCP believes that the proposed rule
change is consistent with Section 17A of
the Act and with Section 17A(b)(3)(D) in
particular because it provides for the
equitable allocation of reasonable fees
and other charges among its
participants.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
SCCP does not believe that the
proposed rule change will impose any
inappropriate burden on competition.
6 The Commission published notice of the NMS
Linkage Plan in Securities Exchange Act Release
No. 54239 (July 28, 2006), 71 FR 44328 (August 4,
2006) [File No. 4–524]. A NMS Linkage Plan, dated
August 1, 2006, and reflecting Phlx’s inclusion as
a Participant, was sent to the Commission on
August 8, 2006.
7 Securities Exchange Act Release No. 47922 (May
23, 2003), 68 FR 33560 (June 4, 2003) [File No. SR–
SCCP–2002–08] (order adopting the current fee
treatment of PACE trades that interact with ITS
commitments).
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]]>Agencies
[Federal Register Volume 71, Number 225 (Wednesday, November 22, 2006)]
[Notices]
[Pages 67687-67689]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-19730]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54760; File No. SR-Phlx-2006-76]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Adopt Rule 185A, Intermarket Sweep Orders--Temporary
November 15, 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 13, 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 adopt Phlx Rule 185A, Intermarket Sweep
Orders--Temporary, which describes: (1) The obligations of the Exchange
sending orders to other market centers, and (2) the obligations of XLE
Participants sending Intermarket Sweep Orders (``ISOs'') \5\ or IOC
Cross Orders that are marked as meeting the requirement to route to
other market centers \6\ (both types of orders hereinafter are referred
to as ``Incoming Sweep Orders''). Specifically, before Rule 611 of
Regulation NMS \7\ is operative on the Exchange (the ``Trading Phase
Date''),\8\ Phlx would use away market obligations instead of
immediate-or-cancel intermarket sweep orders. An away market obligation
is an immediate or cancel limit order for an NMS stock generated by
Phlx in connection with
[[Page 67688]]
the execution of an order by Phlx and routed to one or more away market
centers to execute against all better-priced protected quotations
displayed by the other market centers up to their displayed size. If
the away market center is capable of receiving an intermarket sweep
order, the Exchange may generate and utilize an intermarket sweep order
as the away market obligation. In addition, before the Trading Phase
Date, the proposed new rule would expressly require XLE Participants
sending Incoming Sweep Orders to simultaneously send an intermarket
sweep order (or comparable order) for the full displayed size of the
top of book of every other market center displaying a better-priced
protected quotation. The text of the proposed rule change is available
on Phlx's Web site, https://www.phlx.com, at Phlx's principal office,
and at the Commission's Public Reference Room.
---------------------------------------------------------------------------
\5\ See Phlx Rule 185(b)(2)(C).
\6\ See Phlx Rule 185(c)(2)(D).
\7\ 17 CFR 242.611.
\8\ The Trading Phase Date is February 5, 2007. SeeSecurities
Exchange Act Release No. 53829 (May 18, 2006), 71 FR 30038 (May 24,
2006) (File No. S7-10-04).
---------------------------------------------------------------------------
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 clarify the operation
of XLE's outbound routing and Incoming Sweep Orders before the Trading
Phase Date. Currently, Phlx Rules 185(b)(1)(C)(i)-(ii) and (b)(2)(B)
state that when routing out to away market centers, Phlx will use
``immediate-or-cancel intermarket sweep orders'' to execute against any
away market centers with better-priced quotations. However, prior to
the Trading Phase Date, not all away market centers will accept
intermarket sweep orders. Therefore, in order to implement away routing
before the Trading Phase Date, Phlx will use ``away market
obligations'' instead of ``immediate-or-cancel intermarket sweep
orders.'' In addition, before the Trading Phase Date, Phlx will require
XLE Participants who send Incoming Sweep Orders to the Exchange to
simultaneously send an intermarket sweep order (or comparable order)
for the full displayed size of the top of book of every other market
center displaying a better-priced protected quotation. This requirement
is intended to mirror the requirement, which will be operative after
the Trading Phase Date, that all such Incoming Sweep Orders meet the
requirement of intermarket sweep orders in Rule 600(b)(30) of
Regulation NMS.\9\ The Exchange notes that it has requested an
exemption from the provisions of the Intermarket Trading System Plan to
allow, among other things, the Exchange and its XLE Participants to
implement outbound routing and Incoming Sweep Orders in this manner
prior the Trading Phase Date.\10\
---------------------------------------------------------------------------
\9\ 17 CFR 242.600(b)(30).
\10\ See Letter from John Dayton, Director and Counsel,Phlx, to
Nancy M. Morris, Secretary, Commission, dated November 9, 2006. See
also Letter from David Shillman, Associate Director, Division of
Market Regulation, Commission, to John Dayton, Director and Counsel,
Phlx, dated November 14, 2006.
---------------------------------------------------------------------------
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
No written comments were either solicited or received by the
Exchange.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule (i) Does not 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 operation of
XLE. The Commission notes that the Exchange has represented that the
proposed rule change is based upon a proposed rule change of the
American Stock Exchange LLC (``Amex'').\18\ For these reasons, the
Commission designates the 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. 54709 (November 3,
2006), 71 FR 65847 (November 9, 2006) (SR-Amex-2006-72) (approval
order for Amex's new electronic trading system on a pilot basis,
specifically Amex Rules 126A-AEMI-One and 131-AEMI-One).
\19\ For the purposes 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
[[Page 67689]]
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-2006-76 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-2006-76. 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-2006-76 and should be submitted on or before
December 13, 2006.
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\21\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\21\
Nancy M. Morris,
Secretary.
[FR Doc. E6-19730 Filed 11-21-06; 8:45 am]
BILLING CODE 8011-01-P
