Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Adopt an Appeal Fee, 2078-2079 [E7-479]

Download as PDF 2078 Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / 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 Numbers SR–NYSE–2006–78 and/or SR–NASD–2006–113. The file numbers should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule changes that are filed with the Commission, and all written communications relating to the proposed rule changes 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 filings also will be available for inspection and copying at the principal office of the NYSE and NASD. 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 Numbers SR–NYSE–2006–78 and/or SR–NASD–2006–113 and should be submitted on or before March 5, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.39 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–548 Filed 1–16–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55071; File No. SR–Phlx– 2006–84] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Adopt an Appeal Fee January 9, 2007. 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 8, 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 substantially prepared by the Exchange. On December 20, 2006, the Exchange filed Amendment No. 1 to the proposed rule change.3 The Exchange has designated this proposal as one establishing or changing a due, fee, or other charge imposed by a selfregulatory organization pursuant to Section 19(b)(3)(A)(ii) of the Act 4 and Rule 19b–4(f)(2) thereunder,5 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change, as modified by Amendment No. 1, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to adopt a $250.00 appeal fee for Appeals to the Board of Governors from decisions of Standing Committees 6 (‘‘Appeal Fee’’). An appeal from a decision of the Business Conduct Committee, the Hearing Officer, or a Hearing Panel, pursuant to Exchange Rule 960.9 and By-Law Article XI, Section 11–3, as well as an appeal from a decision of the Nominating, Elections and Governance Committee, pursuant to By-Law Article XI, Section 11–1, will not be subject to 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 In Amendment No. 1, the Exchange modified the scope of its proposal to exempt appeals of decisions of the Nominating, Elections and Governance Committee from the proposed fee. Amendment No. 1 replaced the original filing in its entirety. 4 15 U.S.C. 78s(b)(3)(A)(ii). 5 17 CFR 240.19b–4(f)(2). 6 See Exchange By-Law Article X, Section 10–1 for the list of Standing Committees of the Exchange. mstockstill on PROD1PC61 with NOTICES 2 17 39 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 13:58 Jan 16, 2007 Jkt 211001 PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 the Appeal Fee.7 The Appeal Fee, which will be paid by appellant at the time of filing an appeal, will be refunded to the appellant in the event the Board of Governors overturns the decision of the Standing Committee. This fee became effective January 1, 2007. The text of the proposed rule change is available at the Commission’s Public Reference Room, the Exchange’s Web site at http://www.phlx.com/ exchange/rulefilings/2006/SR–2006– 84.pdf, and at the Exchange. 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 Exchange 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 Exchange 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 Exchange represents that the purpose of the proposed rule change is to reduce the number of frivolous appeals by assessing a fee for all appeals that are upheld. Currently, three Governors hear appeals from decisions of Standing Committees, with the exception of an appeal from the Nominating, Elections and Governance Committee, which is heard by a majority of Governors who are not then candidates for office. The appeal may require several hours of time from each Governor. The Exchange believes that the appeal process is subject to abuse by members, participants, member organizations and participant organizations who incur no downside to filing repeated appeals, whether valid or otherwise. The Exchange believes that, currently, the ease with which an appeal can be filed and receive a ‘‘second look’’ at no cost creates a potential for abuse. This fee will become effective January 1, 2007. An appeal from a decision of the Business Conduct Committee, the Hearing Officer or a Hearing Panel, 7 Telephone conversation between Leah Mesfin, Special Counsel, Division of Market Regulation, Commission, and Angela Dunn, Director and Counsel, Phlx, on December 21, 2006. E:\FR\FM\17JAN1.SGM 17JAN1 Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Notices pursuant to Exchange Rule 960.9 and By-Law Article XI, Section 11–3, and an appeal from a decision of the Nominating, Elections and Governance Committee, pursuant to By-Law Article XI, Section 11–1, will not be subject to the Appeal Fee. The Appeal Fee, which will be paid by appellant at the time of filing an appeal, will be refunded to the appellant in the event the Board of Governors overturns the decision of the Standing Committee. 2. Statutory Basis The Exchange believes that its proposal to amend its schedule of fees is consistent with Section 6(b) of the Act 8 in general, and furthers the objectives of Section 6(b)(5) 9 in particular in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principals of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove the impediments to and perfect the mechanism of a free and open market and a national market system. Finally, the proposed rule change furthers the objectives of Section 6(b)(4) of the Act 10 in particular, in that it is an equitable allocation of reasonable fees and other charges among Exchange members. B. Self-Regulatory Organization’s Statement on Burden on Competition The Phlx does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. mstockstill on PROD1PC61 with NOTICES 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 The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act 11 and subparagraph (f)(2) of Rule 19b–4 thereunder 12 because it establishes or changes a due, fee, or other charge. 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 8 15 U.S.C. 78f(b). U.S.C. 78(f)(b)(5). 10 15 U.S.C. 78f(b)(4). 11 15 U.S.C. 78s(b)(3)(A)(ii). 12 17 CFR 240.19b–4(f)(2). 9 15 VerDate Aug<31>2005 13:58 Jan 16, 2007 necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act.13 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: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–Phlx–2006–84 on the subject line. be submitted on or before February 7, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–479 Filed 1–16–07; 8:45 am] BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION Data Collection Available for Public Comments and Recommendations Notice and request for comments. ACTION: SUMMARY: In accordance with the Paperwork Reduction Act of 1995, this notice announces the Small Business Administration’s intentions to request Paper Comments approval on a new and/or currently • Send paper comments in triplicate approved information collection. to Nancy M. Morris, Secretary, DATES: Submit comments on or before Securities and Exchange Commission, March 19, 2007. 100 F Street, NE., Washington, DC 20549–1090. ADDRESSES: Send all comments regarding whether these information All submissions should refer to File collections are necessary for the proper Number SR–Phlx–2006–84. This file performance of the function of the number should be included on the subject line if e-mail is used. To help the agency, whether the burden estimates are accurate, and if there are ways to Commission process and review your minimize the estimated burden and comments more efficiently, please use only one method. The Commission will enhance the quality of the collections, to post all comments on the Commission’s Cynthia Pitts, Administrative Officer, Office of Disaster Assistance, Small Internet Web site (http://www.sec.gov/ Business Administration, 409 3rd Street rules/sro.shtml). Copies of the SW., 6th Floor, Washington, DC 20416. submission, all subsequent amendments, all written statements FOR FURTHER INFORMATION CONTACT: with respect to the proposed rule Cynthia Pitts, Administrative Officer, change that are filed with the Office of Disaster Assistance 202–205– Commission, and all written 7570, cynthia.pitts#@sba.gov. Curtis B. communications relating to the Rich, Management Analyst, 202–205– proposed rule change between the 7030, curtis.rich@sba.gov. Commission and any person, other than SUPPLEMENTARY INFORMATION: those that may be withheld from the Title: ‘‘Disaster Business Loan public in accordance with the Application’’ provisions of 5 U.S.C. 552, will be Description of Respondents: available for inspection and copying in Personnel that assist in the processing of the Commission’s Public Reference loan applications and disbursement of Room. Copies of such filing also will be loan funds to victims of Hurricanes available for inspection and copying at Katrina, Rita and Wilma. the principal office of the Exchange. All Form No: 5,1368. comments received will be posted Annual Responses: 12,742. without change; the Commission does Annual Burden: 29,754. not edit personal identifying Title: ‘‘Alternative Creditworthiness information from submissions. You Assessment’’ should submit only information that Description of Respondents: you wish to make available publicly. All Personnel that assist in the processing of submissions should refer to File loan applications and disbursement of Number SR–Phlx–2006–84 and should loan funds to victims of Hurricanes Katrina, Rita and Wilma. 13 For purposes of calculating the 60-day period Form No.: 2294. within which the Commission may summarily Annual Responses: 1,849. abrogate the proposed rule change the Commission Annual Burden: 8. considers the period to commence on December 20, 2006, the date on which the Exchange filed Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C). Jkt 211001 2079 PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 14 17 E:\FR\FM\17JAN1.SGM CFR 200.30–3(a)(12). 17JAN1

Agencies

[Federal Register Volume 72, Number 10 (Wednesday, January 17, 2007)]
[Notices]
[Pages 2078-2079]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-479]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55071; File No. SR-Phlx-2006-84]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
and Amendment No. 1 Thereto To Adopt an Appeal Fee

January 9, 2007.
    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 8, 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 substantially prepared by the 
Exchange. On December 20, 2006, the Exchange filed Amendment No. 1 to 
the proposed rule change.\3\ The Exchange has designated this proposal 
as one establishing or changing a due, fee, or other charge imposed by 
a self-regulatory organization pursuant to Section 19(b)(3)(A)(ii) of 
the Act \4\ and Rule 19b-4(f)(2) thereunder,\5\ which renders the 
proposal effective upon filing with the Commission. The Commission is 
publishing this notice to solicit comments on the proposed rule change, 
as modified by Amendment No. 1, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange modified the scope of its 
proposal to exempt appeals of decisions of the Nominating, Elections 
and Governance Committee from the proposed fee. Amendment No. 1 
replaced the original filing in its entirety.
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to adopt a $250.00 appeal fee for Appeals to 
the Board of Governors from decisions of Standing Committees \6\ 
(``Appeal Fee''). An appeal from a decision of the Business Conduct 
Committee, the Hearing Officer, or a Hearing Panel, pursuant to 
Exchange Rule 960.9 and By-Law Article XI, Section 11-3, as well as an 
appeal from a decision of the Nominating, Elections and Governance 
Committee, pursuant to By-Law Article XI, Section 11-1, will not be 
subject to the Appeal Fee.\7\ The Appeal Fee, which will be paid by 
appellant at the time of filing an appeal, will be refunded to the 
appellant in the event the Board of Governors overturns the decision of 
the Standing Committee.
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    \6\ See Exchange By-Law Article X, Section 10-1 for the list of 
Standing Committees of the Exchange.
    \7\ Telephone conversation between Leah Mesfin, Special Counsel, 
Division of Market Regulation, Commission, and Angela Dunn, Director 
and Counsel, Phlx, on December 21, 2006.
---------------------------------------------------------------------------

    This fee became effective January 1, 2007. The text of the proposed 
rule change is available at the Commission's Public Reference Room, the 
Exchange's Web site at http://www.phlx.com/exchange/rulefilings/2006/
SR-2006-84.pdf, and at the Exchange.

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 Exchange 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 Exchange 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 Exchange represents that the purpose of the proposed rule 
change is to reduce the number of frivolous appeals by assessing a fee 
for all appeals that are upheld. Currently, three Governors hear 
appeals from decisions of Standing Committees, with the exception of an 
appeal from the Nominating, Elections and Governance Committee, which 
is heard by a majority of Governors who are not then candidates for 
office. The appeal may require several hours of time from each 
Governor. The Exchange believes that the appeal process is subject to 
abuse by members, participants, member organizations and participant 
organizations who incur no downside to filing repeated appeals, whether 
valid or otherwise. The Exchange believes that, currently, the ease 
with which an appeal can be filed and receive a ``second look'' at no 
cost creates a potential for abuse. This fee will become effective 
January 1, 2007.
    An appeal from a decision of the Business Conduct Committee, the 
Hearing Officer or a Hearing Panel,

[[Page 2079]]

pursuant to Exchange Rule 960.9 and By-Law Article XI, Section 11-3, 
and an appeal from a decision of the Nominating, Elections and 
Governance Committee, pursuant to By-Law Article XI, Section 11-1, will 
not be subject to the Appeal Fee. The Appeal Fee, which will be paid by 
appellant at the time of filing an appeal, will be refunded to the 
appellant in the event the Board of Governors overturns the decision of 
the Standing Committee.
2. Statutory Basis
    The Exchange believes that its proposal to amend its schedule of 
fees is consistent with Section 6(b) of the Act \8\ in general, and 
furthers the objectives of Section 6(b)(5) \9\ in particular in that it 
is designed to prevent fraudulent and manipulative acts and practices, 
to promote just and equitable principals of trade, to foster 
cooperation and coordination with persons engaged in facilitating 
transactions in securities, and to remove the impediments to and 
perfect the mechanism of a free and open market and a national market 
system. Finally, the proposed rule change furthers the objectives of 
Section 6(b)(4) of the Act \10\ in particular, in that it is an 
equitable allocation of reasonable fees and other charges among 
Exchange members.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78(f)(b)(5).
    \10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Phlx does not believe that the proposed rule change will impose 
any burden on competition 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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \11\ and subparagraph (f)(2) of Rule 19b-4 
thereunder \12\ because it establishes or changes a due, fee, or other 
charge. 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.\13\
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    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \12\ 17 CFR 240.19b-4(f)(2).
    \13\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change the 
Commission considers the period to commence on December 20, 2006, 
the date on which the Exchange filed Amendment No. 1. See 15 U.S.C. 
78s(b)(3)(C).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended, is consistent with the Act. Comments may be 
submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-Phlx-2006-84 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-2006-84. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Room. Copies of such 
filing also will be available for inspection and copying at the 
principal office of the Exchange. 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-2006-84 and should be submitted on or before 
February 7, 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).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-479 Filed 1-16-07; 8:45 am]
BILLING CODE 8011-01-P