Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to 100 Share Away Markets in Non-Nasdaq Securities on XLE, 9054-9056 [E7-3491]
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9054
Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Notices
Letter’’) regarding the CBOE proposal.12
In its approval notice, the Commission
stated that ‘‘the Citadel Letter does not
raise any issues that would preclude
approval of the proposed rule change.’’
NYSE Arca feels that any similar issues
contained in the Citadel Letter that may
be raised in regard to proposed rule
changes contained in this filing would
not preclude approval.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,13 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,14 in particular, because it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
sroberts on PROD1PC70 with NOTICES
Because the proposed rule change
does not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days after the date of
filing (or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest), the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 15 and
12 See letter dated May 17, 2006 to Mr. Jonathan
Katz, Secretary, Commission, from Mr. Matthew
Hinerfeld, Deputy General Counsel, Citadel
Investment Group, L.L.C. on behalf of Citadel
Derivatives Group LLC.
13 15 U.S.C. 78f(b).
14 15 U.S.C. 78f(b)(5).
15 15 U.S.C. 78s(b)(3)(A).
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subparagraph (f)(6) of Rule 19b–4
thereunder.16
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 the furtherance of the
purposes of the Act.
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSEArca–2007–06 and
should be submitted on or before March
21, 2007.
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:
BILLING CODE 8010–01–P
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2007–06 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–NYSEArca–2007–06. 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
16 17
PO 00000
CFR 240.19b–4(f)(6).
Frm 00096
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For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–3494 Filed 2–27–07; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55333; File No. SR–Phlx–
2007–13]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to 100 Share Away
Markets in Non-Nasdaq Securities on
XLE
February 22, 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 February
20, 2007, 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 has designated the proposed
rule change as constituting a ‘‘noncontroversial’’ rule change under
Section 19(b)(3)(A) of the Act 3 and Rule
19b-4(f)(6) thereunder,4 which renders
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 modify XLE,
Phlx’s equity trading system, so as to
prevent XLE from trading through 100
share away quotations in non-Nasdaq
securities. In addition, XLE will be
modified to route to 100 share away
quotations in non-Nasdaq securities.
Accordingly, Phlx Rule 1(cc)(3) will be
modified to include 100 share away
quotations in the definition of Protected
17 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).
1 15
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Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Notices
Bids, Offers and Quotations for nonNasdaq securities before the Trading
Phase Date. The text of the proposed
rule change is available at the Phlx, the
Commission’s Public Reference Room,
and https://www.phlx.com.
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
sroberts on PROD1PC70 with NOTICES
1. Purpose
The purpose of the proposed rule
change is to reflect the impending
elimination of the Intermarket Trading
System (‘‘ITS’’) Plan in favor of the
Trading Phase Date of Regulation NMS
on March 5, 2007 by protecting
additional away quotations in XLE. This
would be accomplished by modifying
XLE to consider 100 share bids, offers
and quotations in non-Nasdaq securities
in other markets as Protected Bids,
Offers and Quotations beginning on
February 26, 2007. Therefore, XLE
would route to 100 share away
quotations in non-Nasdaq securities and
would not trade through or quote
through such quotations unless
simultaneously routing to those
quotations, pursuant to Phlx Rules.
Currently, XLE trades and quotes
through 100 share away quotations in
non-Nasdaq securities. Additionally,
XLE does not route to 100 share away
quotations in non-Nasdaq securities.
This is because in the ITS Plan, which
applies to non-Nasdaq securities, and
the Phlx Rules adopted pursuant to the
ITS Plan, provide an exemption from
trade-through and from locking and
crossing protection for 100 share bids
and offers of away markets. In contrast,
commencing with the Trading Phase
Date of Regulation NMS, which is
currently March 5, 2007, the exemption
for 100 share away quotation in the ITS
Plan will not be available to Phlx (or
any other exchange) under the new
Order Protection Rule, Rule 611.5 XLE
will be ready for the Trading Phase Date
in that it will not, among other things,
trade or quote through 100 share away
markets. However, Phlx believes that it
is appropriate to modify its trading
system, XLE, on February 26, 2007, to
take 100 share away markets in nonNasdaq securities into account for
trading, quoting and routing because
Phlx is currently rolling out XLE’s
routing functionality in non-Nasdaq
securities.
Phlx has observed that other markets
trading non-Nasdaq securities pursuant
to the ITS Plan have modified or
adapted their systems to provide for
very rapid or immediate execution of
their displayed quotations, including
quotations of 100 shares. Phlx believes
that the system modification in this
proposed rule change could provide
more opportunities for executions of
orders that XLE routes away pursuant to
Phlx Rules, since XLE would begin
routing to 100 share away quotations, in
addition to larger quotations. Finally,
Phlx would modify Phlx Rule 1(cc)(3) to
clarify the change to XLE by stating that
a Protected Bid, Offer or Quotation in
non-Nasdaq securities includes a 100
share bid, offer or quotation.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 6 in general, and furthers the
objectives of Section 6(b)(5) of the Act 7
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, by
increasing the category of Protected
Bids, Offers and Quotations in nonNasdaq securities to include 100 share
away bids, offers and quotations.
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.
6 15
5 17
CFR 242.611.
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16:08 Feb 27, 2007
7 15
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U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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9055
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 8 and Rule 19b–4(f)(6)
thereunder 9 because the proposal does
not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) 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.10
The Exchange has requested that the
Commission waive the 30-day operative
delay and make the proposed rule
change operative on February 26, 2007.
The Commission hereby grants the
request.11 The Commission believes that
such waiver is consistent with the
protection of investors and the public
interest because the earlier operative
date would enhance the protection of
quotations in non-Nasdaq exchangelisted securities displayed in away
markets in that, pursuant to the
proposal, the Phlx would no longer
trade or quote though 100 share away
quotations in non-Nasdaq securities.
Further, the earlier operative date will
allow XLE Participants to gain
additional experience with the
expanded XLE trading environment and
functionality prior to its full
implementation on the Trading Phase
Date.
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.12
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
10 Rule 19b–4(f)(6)(iii) under the Act requires that
a self-regulatory organization submit to the
Commission written notice of its intent to file the
proposed rule change, along with a brief description
and text of 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. Phlx has satisfied
the pre-filing requirement.
11 For purposes only of waiving the 30-day
operative delay of the proposal, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
12 See 15 U.S.C. 78s(b)(3)(C).
9 17
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9056
Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Notices
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
sroberts on PROD1PC70 with NOTICES
• 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–2007–13 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55331; File No. SR–Phlx–
2007–09]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to the Definition of
‘‘Complex Trade’’
February 22, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
Paper Comments
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on February
• Send paper comments in triplicate
7, 2007, the Philadelphia Stock
to Nancy M. Morris, Secretary,
Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’)
Securities and Exchange Commission,
filed with the Securities and Exchange
100 F Street, NE., Washington, DC
Commission (‘‘Commission’’) the
20549–1090.
proposed rule change as described in
All submissions should refer to File
Items I, II and III below, which Items
Number SR–Phlx–2007–13. This file
have been substantially prepared by the
number should be included on the
Phlx. The Exchange filed the proposal
subject line if e-mail is used. To help the pursuant to Section 19(b)(3)(A) of the
Commission process and review your
Act 3 and Rule 19b–4(f)(6) thereunder,4
comments more efficiently, please use
which renders the proposal effective
only one method. The Commission will upon filing with the Commission. The
post all comments on the Commission’s Commission is publishing this notice to
Internet Web site (https://www.sec.gov/
solicit comments on the proposed rule
rules/sro.shtml). Copies of the
change from interested persons.
submission, all subsequent
I. Self-Regulatory Organization’s
amendments, all written statements
Statement of the Terms of Substance of
with respect to the proposed rule
the Proposed Rule Change
change that are filed with the
The Phlx proposes to amend
Commission, and all written
Exchange Rule 1083(c) to revise the
communications relating to the
definition of ‘‘Complex Trade’’ as that
proposed rule change between the
Commission and any person, other than definition applies to trades under the
Plan for the Purpose of Creating and
those that may be withheld from the
Operating an Options Intermarket
public in accordance with the
Linkage (the ‘‘Linkage Plan’’). The text
provisions of 5 U.S.C. 552, will be
of the proposed rule change is available
available for inspection and copying in
at the Exchange, in the Commission’s
the Commission’s Public Reference
Public Reference Room, and at https://
Room. Copies of the filing also will be
www.phlx.com/exchange/
available for inspection and copying at
phlx_rule_fil.html.
the principal office of the Phlx. All
comments received will be posted
II. Self-Regulatory Organization’s
without change; the Commission does
Statement of the Purpose of, and
not edit personal identifying
Statutory Basis for, the Proposed Rule
information from submissions. You
Change
should submit only information that
In its filing with the Commission, the
you wish to make available publicly. All
Phlx included statements concerning
submissions should refer to File
the purpose of, and basis for, the
Number SR–Phlx–2007–13 and should
proposed rule change and discussed any
be submitted on or before March 21,
comments it received on the proposed
2007.
rule change. The text of these statements
For the Commission, by the Division of
may be examined at the places specified
Market Regulation, pursuant to delegated
in Item IV below. The Phlx has prepared
authority.13
summaries, set forth in Sections A, B,
and C below, of the most significant
Florence E. Harmon,
aspects of such statements.
Deputy Secretary.
[FR Doc. E7–3491 Filed 2–27–07; 8:45 am]
BILLING CODE 8010–01–P
13 17
16:08 Feb 27, 2007
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).
2 17
CFR 200.30–3(a)(12).
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Sfmt 4703
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 the definition of
‘‘Complex Trade’’ in the Exchange’s
rules that relate to the Linkage Plan. For
Linkage purposes, Exchange Rule
1083(c) currently defines a ‘‘Complex
Trade’’ as a trade reflecting the
execution of an order in an options
series in conjunction with one or more
other orders in different series in the
same underlying security for the
equivalent number of contracts.
Under the proposal, a ‘‘Complex
Trade’’ includes a spread, straddle, or
combination order where the number of
contracts on the legs of the spread,
straddle, or combination order differs by
any ratio equal to or greater than oneto-three and less than or equal to threeto-one. A Complex Trade is exempt
from trade-through liability.5
The Exchange notes that its current
rules provide that the components of
spread, straddle, and combination
orders must generally offset one another
on a one-for-one basis,6 and that priority
concerning ratio and other types of
spreads currently applies only to foreign
currency options.7 In order to make
those rules and the instant proposal
consistent, the Exchange has filed a
separate proposed rule change to permit
such order types on other than a onefor-one basis, and to establish priority
for such orders in all options traded on
the Exchange.8
This proposal would adopt the same
definition of ‘‘Complex Trade’’ for
Linkage Plan purposes as that adopted
by other options exchanges.9
2. Statutory Basis
The Exchange believes that its
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
5 See
Exchange Rule 1085(b)(7).
Exchange Rules 1066(f) and (g).
7 See Exchange Rules 1033(f), (g), and (h).
8 See File No. SR-Phlx-2006–91.
9 See Securities Exchange Act Release No. 55138
(January 19, 2007), 72 FR 3451 (January 25, 2007)
(order approving File Nos. SR–Amex–2006–119;
SR–BSE–2006–55; SR–CBOE–2006–109; SR–ISE–
2006–73; and SR–NYSEArca–2007–01).
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
6 See
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]]>Agencies
[Federal Register Volume 72, Number 39 (Wednesday, February 28, 2007)]
[Notices]
[Pages 9054-9056]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-3491]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55333; File No. SR-Phlx-2007-13]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to 100 Share Away Markets in Non-Nasdaq Securities on XLE
February 22, 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 February 20, 2007, 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 has
designated the proposed rule change as constituting a ``non-
controversial'' rule change under Section 19(b)(3)(A) of the Act \3\
and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Phlx proposes to modify XLE, Phlx's equity trading system, so
as to prevent XLE from trading through 100 share away quotations in
non-Nasdaq securities. In addition, XLE will be modified to route to
100 share away quotations in non-Nasdaq securities. Accordingly, Phlx
Rule 1(cc)(3) will be modified to include 100 share away quotations in
the definition of Protected
[[Page 9055]]
Bids, Offers and Quotations for non-Nasdaq securities before the
Trading Phase Date. The text of the proposed rule change is available
at the Phlx, the Commission's Public Reference Room, and https://
www.phlx.com.
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 reflect the impending
elimination of the Intermarket Trading System (``ITS'') Plan in favor
of the Trading Phase Date of Regulation NMS on March 5, 2007 by
protecting additional away quotations in XLE. This would be
accomplished by modifying XLE to consider 100 share bids, offers and
quotations in non-Nasdaq securities in other markets as Protected Bids,
Offers and Quotations beginning on February 26, 2007. Therefore, XLE
would route to 100 share away quotations in non-Nasdaq securities and
would not trade through or quote through such quotations unless
simultaneously routing to those quotations, pursuant to Phlx Rules.
Currently, XLE trades and quotes through 100 share away quotations
in non-Nasdaq securities. Additionally, XLE does not route to 100 share
away quotations in non-Nasdaq securities. This is because in the ITS
Plan, which applies to non-Nasdaq securities, and the Phlx Rules
adopted pursuant to the ITS Plan, provide an exemption from trade-
through and from locking and crossing protection for 100 share bids and
offers of away markets. In contrast, commencing with the Trading Phase
Date of Regulation NMS, which is currently March 5, 2007, the exemption
for 100 share away quotation in the ITS Plan will not be available to
Phlx (or any other exchange) under the new Order Protection Rule, Rule
611.\5\ XLE will be ready for the Trading Phase Date in that it will
not, among other things, trade or quote through 100 share away markets.
However, Phlx believes that it is appropriate to modify its trading
system, XLE, on February 26, 2007, to take 100 share away markets in
non-Nasdaq securities into account for trading, quoting and routing
because Phlx is currently rolling out XLE's routing functionality in
non-Nasdaq securities.
---------------------------------------------------------------------------
\5\ 17 CFR 242.611.
---------------------------------------------------------------------------
Phlx has observed that other markets trading non-Nasdaq securities
pursuant to the ITS Plan have modified or adapted their systems to
provide for very rapid or immediate execution of their displayed
quotations, including quotations of 100 shares. Phlx believes that the
system modification in this proposed rule change could provide more
opportunities for executions of orders that XLE routes away pursuant to
Phlx Rules, since XLE would begin routing to 100 share away quotations,
in addition to larger quotations. Finally, Phlx would modify Phlx Rule
1(cc)(3) to clarify the change to XLE by stating that a Protected Bid,
Offer or Quotation in non-Nasdaq securities includes a 100 share bid,
offer or quotation.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \6\ in general, and furthers the objectives of Section
6(b)(5) of the Act \7\ 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,
by increasing the category of Protected Bids, Offers and Quotations in
non-Nasdaq securities to include 100 share away bids, offers and
quotations.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 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.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) thereunder \9\ because
the proposal does not: (i) Significantly affect the protection of
investors or the public interest; (ii) impose any significant burden on
competition; and (iii) 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.\10\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ Rule 19b-4(f)(6)(iii) under the Act requires that a self-
regulatory organization submit to the Commission written notice of
its intent to file the proposed rule change, along with a brief
description and text of 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. Phlx
has satisfied the pre-filing requirement.
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The Exchange has requested that the Commission waive the 30-day
operative delay and make the proposed rule change operative on February
26, 2007. The Commission hereby grants the request.\11\ The Commission
believes that such waiver is consistent with the protection of
investors and the public interest because the earlier operative date
would enhance the protection of quotations in non-Nasdaq exchange-
listed securities displayed in away markets in that, pursuant to the
proposal, the Phlx would no longer trade or quote though 100 share away
quotations in non-Nasdaq securities. Further, the earlier operative
date will allow XLE Participants to gain additional experience with the
expanded XLE trading environment and functionality prior to its full
implementation on the Trading Phase Date.
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\11\ For purposes only of waiving the 30-day operative delay of
the proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. See 15
U.S.C. 78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.\12\
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\12\ 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,
[[Page 9056]]
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-2007-13 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-2007-13. 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-2007-13 and should be submitted on or before March 21, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-3491 Filed 2-27-07; 8:45 am]
BILLING CODE 8010-01-P
