Advisory Committee on Veterans Business Affairs; Public Meeting, 2325 [E7-613]
Download as PDF
Federal Register / Vol. 72, No. 11 / Thursday, January 18, 2007 / Notices
parameters on the Exchange 7 and
efficiency of quote submission through
the Specialized Quote Feed (‘‘SQF’’), as
defined in Phlx Rule 1080, Commentary
.01. Failure to meet established
minimum performance requirements
could result in restriction by the OAESC
of additional options assignments;
suspension, termination, or restriction
of an existing assignment on one or
more options; or suspension,
termination, or restriction of an SQT’s
or RSQT’s status as such.
Phlx Rule 510 would establish
specific criteria for each option assigned
to an SQT or RSQT that would be
regularly evaluated by the Exchange.
First, the Exchange would evaluate the
percentage of total quotes submitted by
the SQT or RSQT that represent the
NBBO. If the percentage of the total
quotes that represent the NBBO is in the
lowest quartile of all SQTs or RSQTs for
two or more consecutive months, this
may be considered sub-standard
performance. Second, the Exchange
would evaluate the SQT or RSQT’s
adherence to the Exchange’s established
quoting requirements pursuant to Phlx
Rule 1014.8 If an SQT or RSQT fails to
meet the quoting requirements as
prescribed by the rule, this may be
considered sub-standard performance.
Third, the Exchange would consider the
number of requests for quote spread
parameter 9 relief for the purposes of
evaluating performance standards.
Finally, to evaluate efficient quote
submission to the Exchange, the
Exchange would consider how an SQT
or RSQT optimizes the submission of
quotes through the SQF, as defined in
Phlx Rule 1080, by evaluating the
number of individual quotes per quote
‘‘block’’ received by the Exchange.10 An
SQT or RSQT is assigned a number of
7 See
Phlx Rule 1014(c)(i)(A).
Rule 1014(b)(ii)(D)(1) provides that an SQT
and an RSQT shall be responsible to quote
continuous, two-sided markets in not less than 60%
of the series in each option in which such SQT or
RSQT is assigned, provided that, on any given day,
a Directed SQT (‘‘DSQT’’) or a Directed RSQT
(‘‘DRSQT’’) (as defined in Phlx Rule 1080(l)(i)(C))
shall be responsible to quote continuous, two-sided
markets in not less than 99% of the series listed on
the Exchange in at least 60% of the options in
which such DSQT or DRSQT is assigned. Whenever
a DSQT or DRSQT enters a quotation in an option
in which such DSQT or DRSQT is assigned, such
DSQT or DRSQT must maintain continuous
quotations for not less than 99% of the series of the
option listed on the Exchange until the close of that
trading day.
9 Phlx Rule 1034 establishes maximum allowable
bid/ask differentials on the Exchange.
10 A quote ‘‘block’’ is a component of the
Exhange’s SQF application that allows for delivery
of a set of multiple quotations from the SQT or
RSQT to the Exchange. Within a single ‘‘block,’’ the
SQT or RSQT can deliver quotes for any number
of option series ranging from 1 to 99.
pwalker on PROD1PC71 with NOTICES
8 Phlx
VerDate Aug<31>2005
17:52 Jan 17, 2007
Jkt 211001
ports or lines on which they can send
quote blocks. The number of lines
assigned dictates the number of blocks
that may be sent simultaneously by the
SQT or RSQT. The number of lines
assigned to an SQT or RSQT is generally
a function of the number of products
being quoted, taking into account the
throughput required to minimize quote
latency risk. The Exchange intends to
evaluate the average number of quotes
(1–99) submitted within the SQT or
RSQT’s quote blocks. The number of
quotes delivered in each block would
generally be a measure of the SQT or
RSQT’s quoting efficiency. For example,
a firm sending an average of 1 quote in
each block may be considered
inefficient while a firm sending an
average of 99 quotes in each block
would be considered very efficient.
The Exchange explained that, in
general, the expenditure of systemic
resources required to process an
inefficient block is nearly equal to the
expenditure of systemic resources
required to process an efficient block.
Therefore, an efficient SQT or RSQT can
achieve a much higher level of quote
submission than an inefficient SQT or
RSQT using nearly the same amount of
exchange system resources. The
Exchange believes that the regular
monitoring of quoting efficiency in this
fashion will result in more efficient
quoting on the Exchange (i.e., more
quotes submitted per block), thus
preserving and maximizing Exchange
system capacity for handling quote
traffic.
III. Discussion
After careful review of the proposal,
the Commission finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.11 In
particular, the Commission finds that
the proposal is consistent with Section
6(b)(5) of the Act,12 which requires,
among other things, that the rules of an
exchange be 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.
The Commission believes that the
Exchange’s proposal to establish
performance requirements for SQTs and
RSQTs should, among other things,
encourage Exchange traders to enhance
11 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
12 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
2325
quoting efficiency, preserve system
capacity, and minimize requests for
relief from quote spread parameters.
Consequently, the proposal should
encourage Phlx SQTs and RSQTs to
strive to improve their performance as
market makers on the Exchange, as well
as help to mitigate the Exchange’s quote
message traffic.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,13 that the
proposed rule change (SR–Phlx–2006–
51), be, and hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–586 Filed 1–17–07; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
Advisory Committee on Veterans
Business Affairs; Public Meeting
The U.S. Small Business
Administration (SBA), pursuant to the
Veterans Entrepreneurship and Small
Business Development Act of 1999 (Pub.
L. 106–50), Advisory Committee on
Veterans Business Affairs will host a
public meeting on Friday, January 26,
2007, starting at 9 a.m. until 5 p.m. EST.
The meeting will take place at SBA, 409
3rd Street, SW., Eisenhower Conference
Room, Side B, 2nd Floor, Washington,
DC 20416.
The purpose of the meeting is to
select the Committee’s Chairman and
Vice-Chairman and outline the agenda
for 2007.
Anyone wishing to attend must
contact Cheryl Clark, Program Liaison,
Office of Veterans Business
Development at (202) 205–6773, or send
e-mail to cheryl.clark@sba.gov.
Matthew Teague,
Committee Management Officer.
[FR Doc. E7–613 Filed 1–17–07; 8:45 am]
BILLING CODE 8025–01–P
13 15
14 17
E:\FR\FM\18JAN1.SGM
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
18JAN1
Agencies
[Federal Register Volume 72, Number 11 (Thursday, January 18, 2007)]
[Notices]
[Page 2325]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-613]
=======================================================================
-----------------------------------------------------------------------
SMALL BUSINESS ADMINISTRATION
Advisory Committee on Veterans Business Affairs; Public Meeting
The U.S. Small Business Administration (SBA), pursuant to the
Veterans Entrepreneurship and Small Business Development Act of 1999
(Pub. L. 106-50), Advisory Committee on Veterans Business Affairs will
host a public meeting on Friday, January 26, 2007, starting at 9 a.m.
until 5 p.m. EST. The meeting will take place at SBA, 409 3rd Street,
SW., Eisenhower Conference Room, Side B, 2nd Floor, Washington, DC
20416.
The purpose of the meeting is to select the Committee's Chairman
and Vice-Chairman and outline the agenda for 2007.
Anyone wishing to attend must contact Cheryl Clark, Program
Liaison, Office of Veterans Business Development at (202) 205-6773, or
send e-mail to cheryl.clark@sba.gov.
Matthew Teague,
Committee Management Officer.
[FR Doc. E7-613 Filed 1-17-07; 8:45 am]
BILLING CODE 8025-01-P