Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Definition of “Complex Trade”, 9056-9057 [E7-3492]

Download as PDF 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 (http://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 (http://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 http:// 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). VerDate Aug<31>2005 1 15 Jkt 211001 PO 00000 Frm 00098 Fmt 4703 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 E:\FR\FM\28FEN1.SGM 28FEN1 Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Notices Electronic Comments investors and the public interest by establishing a uniform definition of ‘‘Complex Trade’’ for purposes of the Linkage Plan. 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 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 Because the foregoing 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 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, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 12 and Rule 19b–4(f)(6) thereunder.13 As required by Rule 19b– 4(f)(6)(iii),14 the Phlx provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change. 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. sroberts on PROD1PC70 with NOTICES 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: U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 14 17 CFR 240.19b–4(f)(6)(iii). DEPARTMENT OF TRANSPORTATION • 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–2007–09 on the subject line. Office of the Secretary Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.15 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–3492 Filed 2–27–07; 8:45 am] BILLING CODE 8010–01–P 15 17 Jkt 211001 Department of Transportation. Notice of Order To Show Cause (Order 2007–2–20), Docket OST–2003– 15099. AGENCY: SUMMARY: The Department of Transportation is directing all interested persons to show cause why it should not issue an order revoking the Canadian charter air taxi registration of All submissions should refer to File Flight-Ops International d/b/a Number SR–Phlx–2007–09. This file SkyXpress Airline. number should be included on the subject line if e-mail is used. To help the DATES: Persons wishing to file objections should do so no later than Commission process and review your March 7, 2007. comments more efficiently, please use only one method. The Commission will ADDRESSES: Objections and answers to post all comments on the Commission’s objections should be filed in Docket OST–2003–15099 and addressed to U.S. Internet Web site (http://www.sec.gov/ Department of Transportation, Docket rules/sro.shtml). Copies of the Operations, (M–30, Room PL–401), 400 submission, all subsequent Seventh Street, SW., Washington, DC amendments, all written statements 20590, and should be served upon the with respect to the proposed rule parties listed in Attachment A to Order change that are filed with the 2007–2–20. Commission, and all written FOR FURTHER INFORMATION CONTACT: communications relating to the Jonathan R. Dols, Office of Aviation proposed rule change between the Commission and any person, other than Enforcement and Proceedings (C–70, Room 4116), U.S. Department of those that may be withheld from the Transportation, 400 Seventh Street, public in accordance with the SW., Washington, DC 20590, (202) 366– provisions of 5 U.S.C. 552, will be 9342. available for inspection and copying in Dated: February 20, 2007. the Commission’s Public Reference Andrew Steinberg, Room. Copies of the filing also will be Assistant Secretary for Aviation and available for inspection and copying at International Affairs. the principal office of the Phlx. All [FR Doc. 07–880 Filed 2–27–07; 8:45 am] comments received will be posted BILLING CODE 4910–9X–M without change; the Commission does not edit personal identifying information from submissions. You DEPARTMENT OF TRANSPORTATION should submit only information that you wish to make available publicly. All Federal Aviation Administration submissions should refer to File Number SR–Phlx–2007–09 and should Aviation Rulemaking Advisory be submitted on or before March 21, Committee Meeting on Transport Airplane and Engine Issues 2007. 13 17 16:08 Feb 27, 2007 Proposed Revocation of the Canadian Charter Air Taxi Authority of FlightOps International, Inc., D/B/A SkyXpress Airline ACTION: 12 15 VerDate Aug<31>2005 9057 PO 00000 CFR 200.30–3(a)(12). Frm 00099 Fmt 4703 Sfmt 4703 Federal Aviation Administration (FAA), DOT. ACTION: Notice of public meeting. AGENCY: SUMMARY: This notice announces a public meeting of the FAA’s Aviation Rulemaking Advisory Committee (ARAC) to discuss transport airplane and engine (TAE) issues. DATES: The meeting is scheduled for Thursday, March 22, 2007 starting at 9 a.m. Daylight Savings Time. Arrange for oral presentations by March 8, 2007. E:\FR\FM\28FEN1.SGM 28FEN1

Agencies

[Federal Register Volume 72, Number 39 (Wednesday, February 28, 2007)]
[Notices]
[Pages 9056-9057]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-3492]


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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 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on February 7, 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, II 
and III below, which Items have been substantially prepared by the 
Phlx. The Exchange filed the proposal pursuant to 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.
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    \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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Phlx proposes to amend Exchange Rule 1083(c) to revise the 
definition of ``Complex Trade'' as that definition applies to trades 
under the Plan for the Purpose of Creating and Operating an Options 
Intermarket Linkage (the ``Linkage Plan''). The text of the proposed 
rule change is available at the Exchange, in the Commission's Public 
Reference Room, and at http://www.phlx.com/exchange/phlx_rule_
fil.html.

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 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 one-to-three and less than or equal to three-
to-one. A Complex Trade is exempt from trade-through liability.\5\
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    \5\ See Exchange Rule 1085(b)(7).
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    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 one-for-one 
basis, and to establish priority for such orders in all options traded 
on the Exchange.\8\
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    \6\ See Exchange Rules 1066(f) and (g).
    \7\ See Exchange Rules 1033(f), (g), and (h).
    \8\ See File No. SR-Phlx-2006-91.
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    This proposal would adopt the same definition of ``Complex Trade'' 
for Linkage Plan purposes as that adopted by other options 
exchanges.\9\
---------------------------------------------------------------------------

    \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).
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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

[[Page 9057]]

investors and the public interest by establishing a uniform definition 
of ``Complex Trade'' for purposes of the Linkage Plan.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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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 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

    Because the foregoing 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 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, the proposed rule 
change has become effective pursuant to Section 19(b)(3)(A) of the Act 
\12\ and Rule 19b-4(f)(6) thereunder.\13\ As required by Rule 19b-
4(f)(6)(iii),\14\ the Phlx provided the Commission with written notice 
of its intent to file the proposed rule change, along with a brief 
description and text of the proposed rule change, at least five 
business days prior to the date of filing of the proposed rule change.
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
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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.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-Phlx-2007-09 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-2007-09. 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 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-2007-09 and should be submitted on or before March 21, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-3492 Filed 2-27-07; 8:45 am]
BILLING CODE 8010-01-P