Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change and Amendments No. 1 and 2 Thereto Relating to an Amendment to a Philadelphia Board of Trade Market Data Distribution Network Fee, 74975-74977 [E6-21157]
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Federal Register / Vol. 71, No. 239 / Wednesday, December 13, 2006 / Notices
system, which enabled escrow banks to
access the escrow system through the
Internet. Before the integration, escrow
banks were required to lease or buy a
personal computer that was configured
by OCC to provide secure access to the
escrow deposit system. Banks that
elected the lease alternative are
currently charged a $200 monthly fee of
which $150 is an equipment leasing fee
and $50 is an access fee.5 Banks that (i)
Elected the purchase alternative or (ii)
became escrow banks after the systems
integration are currently charged only
the $50 access fee, which is intended to
cover the costs associated with
administering the escrow deposit
program. Costs to administer the
program include: (1) Legal costs related
to addressing the contractual aspects of
the program; (2) audit costs related to
ensuring compliance with the external
audit reporting requirements of the
program; and (3) staff costs related to
servicing program users (i.e., escrow
banks and clearing members).
In connection with reviewing
different back-up solutions to internet
access, OCC also examined its costs to
administer the escrow program and
concluded that the costs greatly exceed
the $50 per month access fee.
Accordingly, OCC has determined to
charge all escrow banks a $200 per
month escrow program fee, which will
be reflected in OCC’s Schedule of Fees.
The escrow program fee will allow OCC
to partially offset its escrow program
administration costs but will not affect
the overwhelming majority of escrow
banks because the majority of escrow
banks already pay $200 per month in
aggregate escrow deposit program fees.
II. Discussion
Section 17A(b)(3)(D) of the Act 6
requires the rules of a registered clearing
agency to provide for the equitable
allocation of reasonable dues, fees, and
other charges among its participants.
The Commission finds that OCC’s
proposed amendment to its Schedule of
Fees is consistent with this requirement
because the $200 per month program fee
reflects OCC’s cost to administer the
escrow program with respect to escrow
banks accessing the program.
hsrobinson on PROD1PC76 with NOTICES
III. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
5 OCC has continued to charge current escrow
banks with leased equipment the $200 per month
total fee as they have retained such equipment as
a back-up to Internet access to the escrow system.
However, a different back-up solution is being
implemented for all escrow banks, which is
rendering the leased equipment obsolete for
purposes of accessing the escrow system.
6 15 U.S.C. 78q–1(b)(3)(D).
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21:31 Dec 12, 2006
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consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the Act 7
and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, that the
proposed rule change (File No. SR–
OCC–2006–12) be, and hereby is,
approved.8
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–21163 Filed 12–12–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54890; File No. SR–Phlx–
2006–59]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing of Proposed Rule
Change and Amendments No. 1 and 2
Thereto Relating to an Amendment to
a Philadelphia Board of Trade Market
Data Distribution Network Fee
December 7, 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, the Philadelphia
Stock Exchange, Inc. (‘‘Phlx’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Phlx. The Phlx filed
Amendment No. 1 to the proposed rule
change on November 1, 2006.3 The Phlx
filed Amendment No. 2 to the proposed
rule change on December 6, 2006.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
change, as amended, from interested
persons.
7 15
U.S.C. 78q–1.
approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
9 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Amendment No. 1 replaces and supersedes the
original filing in its entirety.
4 Amendment No. 2 clarified that the chart in this
filing reflects Phlx’s proposed change to thefee per
snapshot request; the current fee per snapshot
request is $0.00025; and the 15% Administrative
Fee is a credit to vendors which provide market
data to 200,000 or more Devices in any month.
8 In
PO 00000
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Fmt 4703
Sfmt 4703
74975
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Phlx proposes to change a fee
assessed by the Exchange’s wholly
owned subsidiary, the Philadelphia
Board of Trade (‘‘PBOT’’), on market
data vendors for certain index values
that subscribers receive over PBOT’s
Market Data Distribution Network
(‘‘MDDN’’). The text of the proposed
rule change is available on Phlx’s Web
site at 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 amend one of the fees
charged by the PBOT for certain market
data disseminated over the MDDN.5 The
Phlx has licensed the current and
closing index values underlying most of
the Phlx’s proprietary indexes to PBOT
for the purpose of selling, reproducing,
and distributing the index values over
PBOT’s MDDN. On each trading day,
the Exchange or its third party designee
objectively calculates and makes
available to PBOT a real-time index
value every 15 seconds and a closing
index value at the end of the day. By
agreement with PBOT, data vendors
make the market data widely available
to subscribers.6
On May 11, 2006, the Commission
approved the Exchange’s proposal to
5 The MDDN is an internet protocol multicast
network developed by PBOT and SAVVIS
Communications.
6 Approximately 65 vendors, including for
example Bloomberg L.P., Telekurs Financial
Information Ltd. and Thomson Financial, have
already entered into such market data agreements
wtih PBOT. The PBOT has contracted with one or
more major Market Data Vendors to receive realtime market data and will not offer snapshot or
delayed data. The fees described in this proposed
rule change cover values of all the indexes
disseminated over the MDDN.
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74976
Federal Register / Vol. 71, No. 239 / Wednesday, December 13, 2006 / Notices
allow PBOT to charge subscriber fees to
vendors of market data for all the values
of Phlx’s proprietary indexes
disseminated by PBOT’s MDDN.7 The
subscriber fees are set out in agreements
that PBOT executes with various market
data vendors for the right to receive,
store, and retransmit the current and
closing index values transmitted over
the MDDN. The fees approved by the
Commission in its May 11, 2006
approval order included a $.00025 per
request fee for ‘‘snapshot data,’’ which
is essentially market data that is
refreshed no more frequently than once
every 60 seconds. The Exchange is now
proposing to increase that fee to $.0025
per request for snapshot data.
The MDDN fees, including the fee that
would be amended by this proposal, are
summarized in table format below:
Fee
(per month)
Real-time continuous market data
Delayed
only
Per Device/User ID/ID Terminal .....................................................
$1.00 per Device* .........................................................................
None.
Fee (per month)
Snapshot Market Data ..................................................................
Delayed
Only.
$0.0025 per snapshot request * 8
OR .................................................................................................
$1,500 per month for unlimited snapshot requests*.
None.
* Vendors which provide market data to 200,000 or more Devices in any month qualify for a 15% Administrative Fee credit for that month.9
2. Statutory Basis
The Exchange believes that its
amended proposal is consistent with
Section 6(b) of the Act 10 in general, and
furthers the objectives of Section 6(b)(5)
of the Act 11 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, providing a fee structure
for market data recipients which is
reasonable.
The Exchange also believes that its
proposal furthers the objectives of
Section 6(b)(4) of the Act 12 in
particular, in that it is an equitable
allocation of reasonable fees among
persons using its facilities. The
Exchange believes that PBOT’s
proposed fee increase is reasonable and
equitable, as it reflects a more accurate
valuation of the value of snapshot data
to investors than the original snapshot
data fee did. Phlx also believes that the
fee increase to be charged by PBOT is
consistent with the requirements of
Commission Rule 603 (Distribution,
consolidation, and display of
information with respect to quotations
for and transactions in NMS stocks),13
in that it is fair and reasonable and not
unreasonably discriminatory.
hsrobinson on PROD1PC76 with NOTICES
B. Self-Regulatory Organization’s
Statement on Burden on Competition
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the Exchange consents,
the Commission will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the amended
proposed rule change is consistent with
the Act. Comments may be submitted by
any of the following methods:
Electronic Comments
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
7 See Securities Exchange Act Release No. 53790
(May 11, 2006), 71 FR 28738 (May 17, 2006)
(approving SR–Phlx–2006–04). There are no other
fees being changed by this proposed rule change.
8 The current fee is $0.00025.
9 All market data vendors which provide market
data to 200,000 or more Devices in any month
qualify for a 15% Administrative Fee credit for that
month, to be deducted from the monthly Subscriber
Fees that they collect and are obligated to pay PBOT
under the Vendor/Subvendor Agreement.
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21:31 Dec 12, 2006
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Frm 00081
Fmt 4703
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• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–Phlx–2006–59 on the subject
line.
Paper Comments
• 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
Number SR–Phlx–2006–59. 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 the Phlx. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
10 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
12 15 U.S.C. 78f(b)(4).
13 17 CFR 242.603.
11 15
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Federal Register / Vol. 71, No. 239 / Wednesday, December 13, 2006 / Notices
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–Phlx–2006–59 and should
be submitted on or before January 3,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–21157 Filed 12–12–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54889; File No. SR–Phlx–
2006–80]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to the Assignment of
Options Trading Privileges to
Streaming Quote Traders and Remote
Streaming Quote Traders
December 6, 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 December
5, 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 amend Phlx
Rule 507,5 which governs the
assignment of options to Streaming
Quote Traders (‘‘SQTs’’) 6 and Remote
14 17
CFR 200.30–3(a)(12).
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).
5 Phlx Rule 507 sets forth the process by which
the Committee assigns or reassigns equity options
to eligible Streaming Quote Traders and Remote
Streaming Quote Traders. See Phlx Rule 507.
6 An SQT is an Exchange Registered Options
Trader (‘‘ROT’’) who has received permission from
hsrobinson on PROD1PC76 with NOTICES
1 15
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21:31 Dec 12, 2006
Jkt 211001
Streaming Quote Traders (‘‘RSQTs’’),7
by: (i) Clarifying that all options traded
on the Exchange are Streaming Quote
Options; 8 (ii) deleting outdated
requirements contained in paragraph (f)
under Phlx Rule 507 regarding the
assignment of options during the first
six months of the roll-out of streaming
quote technology; (iii) moving the
existing text of Phlx Rule 507(a) to the
first paragraph of (b) and naming
paragraph (b) ‘‘Assignment in Options;’’
(iv) moving the language in 507(b)(iii) to
paragraph (a) and renaming it
‘‘Approval as an SQT and RSQT;’’ and
(v) applying some of the current criteria
for RSQT applicants (formerly in Phlx
Rule 507(b)(iii)) to SQT applicants as
well.
The text of the proposed rule change
is available on the Phlx’s Web site,
https://www.phlx.com, at the 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 update Phlx Rule 507 to
reflect the current status of options
trading on the Exchange.
the Exchange to generate and submit options
quotations electronically through AUTOM in
eligible options to which such SQT is assigned. An
SQT may only submit such quotations while such
SQT is physically present on the floor of the
Exchange. See Phlx Rule 1014(b)(ii)(A).
7 An RSQT is a ROT that is a member or member
organization with no physical trading floor
presence who has received permission from the
Exchange to generate and submit option quotations
electronically through AUTOM in eligible options
to which such RSQT has been assigned. An RSQT
may only submit such quotations electronically
from off the floor of the Exchange. See Phlx Rule
1014(b)(ii)(B).
8 A Streaming Quote Option is an option for
which the Options Committee determines the SQTs
may generate and submit options quotations from
the Exchange floor and that RSQTs may generate
and submit options quotations from off of the
Exchange floor, electronically. See Phlx Rule
1080(k).
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Frm 00082
Fmt 4703
Sfmt 4703
74977
First, the proposed amendments
modify outdated concepts and
requirements contained in Phlx Rule
507 by: (i) Clarifying that all options
traded on the Exchange are ‘‘Streaming
Quote Options,’’ and (ii) deleting
obsolete requirements for the
assignment of options contained in
paragraph (f) of Phlx Rule 507. The
Exchange’s introduction of the Phlx XL
technology allowed, among other things,
SQTs and RSQTs to generate and submit
electronic quotations. Initially, RSQTs
and SQTs could only stream electronic
quotations in designated options until
such technology was fully rolled-out to
all options, which occurred in February
2005. The Exchange is proposing to
amend Phlx Rule 507 to clarify the fact
that all options listed for trading on the
Exchange are now ‘‘Streaming Quote
Options.’’
For the same reason, the Exchange is
also proposing to delete the
requirements contained in paragraph (f)
under Phlx Rule 507 that were
applicable to member firms seeking
option assignments as an RSQT or SQT
during the first six months of the
streaming quote roll-out. This
amendment will update the Exchange’s
rules and remove rule text that may
cause confusion.
Second, the Exchange is proposing to
reorganize Phlx Rule 507(a) and (b) so
that paragraph (a) covers the approval of
SQTs and RSQTs as such, and
paragraph (b) covers the assignment of
options to SQTs and RSQTs. In order to
clarify that paragraph (b) covers the
assignment of specific options to SQTs
and RSQTs, paragraph (b)(i) would be
titled ‘‘Assignment in Options,’’ and the
introductory phrase, ‘‘When an option is
to be assigned or reassigned by the
Committee, the Committee will solicit
applications from all eligible SQTs and
RSQTs, as defined in Phlx Rule
1014(b)(ii)’’ is proposed to be deleted
from current paragraph (a) and inserted
into paragraph (b). The Exchange
believes that this should distinguish
paragraph (a), which covers applications
for approval of an applicant’s status as
an SQT or RSQT on the Exchange, from
paragraph (b), which covers an SQT or
RSQT’s application for assignment in a
particular option. Currently, the two
concepts are intermingled in these
paragraphs, which may be hard to
follow.
Third, the Exchange proposes to
extend some of the requirements
applicable to RSQT applicants to SQT
applicants. These requirements include
significant market-making and/or
specialist experience in a broad array of
securities; superior resources, including
capital, technology and personnel;
E:\FR\FM\13DEN1.SGM
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]]>Agencies
[Federal Register Volume 71, Number 239 (Wednesday, December 13, 2006)]
[Notices]
[Pages 74975-74977]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21157]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54890; File No. SR-Phlx-2006-59]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing of Proposed Rule Change and Amendments No. 1 and 2
Thereto Relating to an Amendment to a Philadelphia Board of Trade
Market Data Distribution Network Fee
December 7, 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, the Philadelphia Stock Exchange, Inc. (``Phlx''
or ``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Phlx. The Phlx
filed Amendment No. 1 to the proposed rule change on November 1,
2006.\3\ The Phlx filed Amendment No. 2 to the proposed rule change on
December 6, 2006.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change, as amended, from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1 replaces and supersedes the original filing
in its entirety.
\4\ Amendment No. 2 clarified that the chart in this filing
reflects Phlx's proposed change to thefee per snapshot request; the
current fee per snapshot request is $0.00025; and the 15%
Administrative Fee is a credit to vendors which provide market data
to 200,000 or more Devices in any month.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Phlx proposes to change a fee assessed by the Exchange's wholly
owned subsidiary, the Philadelphia Board of Trade (``PBOT''), on market
data vendors for certain index values that subscribers receive over
PBOT's Market Data Distribution Network (``MDDN''). The text of the
proposed rule change is available on Phlx's Web site at 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 amend one of the fees
charged by the PBOT for certain market data disseminated over the
MDDN.\5\ The Phlx has licensed the current and closing index values
underlying most of the Phlx's proprietary indexes to PBOT for the
purpose of selling, reproducing, and distributing the index values over
PBOT's MDDN. On each trading day, the Exchange or its third party
designee objectively calculates and makes available to PBOT a real-time
index value every 15 seconds and a closing index value at the end of
the day. By agreement with PBOT, data vendors make the market data
widely available to subscribers.\6\
---------------------------------------------------------------------------
\5\ The MDDN is an internet protocol multicast network developed
by PBOT and SAVVIS Communications.
\6\ Approximately 65 vendors, including for example Bloomberg
L.P., Telekurs Financial Information Ltd. and Thomson Financial,
have already entered into such market data agreements wtih PBOT. The
PBOT has contracted with one or more major Market Data Vendors to
receive real-time market data and will not offer snapshot or delayed
data. The fees described in this proposed rule change cover values
of all the indexes disseminated over the MDDN.
---------------------------------------------------------------------------
On May 11, 2006, the Commission approved the Exchange's proposal to
[[Page 74976]]
allow PBOT to charge subscriber fees to vendors of market data for all
the values of Phlx's proprietary indexes disseminated by PBOT's
MDDN.\7\ The subscriber fees are set out in agreements that PBOT
executes with various market data vendors for the right to receive,
store, and retransmit the current and closing index values transmitted
over the MDDN. The fees approved by the Commission in its May 11, 2006
approval order included a $.00025 per request fee for ``snapshot
data,'' which is essentially market data that is refreshed no more
frequently than once every 60 seconds. The Exchange is now proposing to
increase that fee to $.0025 per request for snapshot data.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 53790 (May 11,
2006), 71 FR 28738 (May 17, 2006) (approving SR-Phlx-2006-04). There
are no other fees being changed by this proposed rule change.
---------------------------------------------------------------------------
The MDDN fees, including the fee that would be amended by this
proposal, are summarized in table format below:
---------------------------------------------------------------------------
\8\ The current fee is $0.00025.
\9\ All market data vendors which provide market data to 200,000
or more Devices in any month qualify for a 15% Administrative Fee
credit for that month, to be deducted from the monthly Subscriber
Fees that they collect and are obligated to pay PBOT under the
Vendor/Subvendor Agreement.
------------------------------------------------------------------------
Real-time continuous
Fee (per month) market data Delayed only
------------------------------------------------------------------------
Per Device/User ID/ID Terminal. $1.00 per Device*..... None.
------------------------------------------------------------------------
Fee (per month) Snapshot Market Data.. Delayed Only.
------------------------------------------------------------------------
$0.0025 per snapshot
request * \8\
OR.................... None.
$1,500 per month for
unlimited snapshot
requests*.
------------------------------------------------------------------------
* Vendors which provide market data to 200,000 or more Devices in any
month qualify for a 15% Administrative Fee credit for that month.\9\
2. Statutory Basis
The Exchange believes that its amended proposal is consistent with
Section 6(b) of the Act \10\ in general, and furthers the objectives of
Section 6(b)(5) of the Act \11\ 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, providing a fee structure for market data recipients
which is reasonable.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange also believes that its proposal furthers the
objectives of Section 6(b)(4) of the Act \12\ in particular, in that it
is an equitable allocation of reasonable fees among persons using its
facilities. The Exchange believes that PBOT's proposed fee increase is
reasonable and equitable, as it reflects a more accurate valuation of
the value of snapshot data to investors than the original snapshot data
fee did. Phlx also believes that the fee increase to be charged by PBOT
is consistent with the requirements of Commission Rule 603
(Distribution, consolidation, and display of information with respect
to quotations for and transactions in NMS stocks),\13\ in that it is
fair and reasonable and not unreasonably discriminatory.
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\12\ 15 U.S.C. 78f(b)(4).
\13\ 17 CFR 242.603.
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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
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission will:
(A) By order approve such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the amended
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 No. SR-Phlx-2006-59 on the subject line.
Paper Comments
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 Number SR-Phlx-2006-59. 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 the Phlx. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You
[[Page 74977]]
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-Phlx-2006-59
and should be submitted on or before January 3, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6-21157 Filed 12-12-06; 8:45 am]
BILLING CODE 8011-01-P
