Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change as Modified by Amendment No. 1 Thereto Relating to Odd Lot Fees for XLE Transactions, 14316-14318 [E7-5547]
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Federal Register / Vol. 72, No. 58 / Tuesday, March 27, 2007 / Notices
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
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments on the proposed
rule change were neither solicited nor
received.
1. Purpose
The Exchange offers a Block
Mechanism for the execution of singlesided, block-sized orders. The Block
Mechanism exposes orders of at least 50
contracts to all ISE members for three
seconds, giving members an opportunity
to respond with contra-side trading
interest for their own account or on
behalf of their customers.3 Currently,
orders may be entered and executed
using the Block Mechanism at the
standard 5 and 10 cent increments and
at ‘‘split prices’’ (2.5 cents for options
trading in 5 cent standard increments
and 5 cents for options trading in 10
cent standard increments). The
Exchange proposes to allow these orders
to be entered and executed in penny
increments as a way to provide greater
flexibility in the pricing of block-size
orders and to allow a greater
opportunity for price improvement.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,4 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,5 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, 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. In
particular, the proposal will provide
additional pricing flexibility and
opportunities for block-size orders to
receive price improvement.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
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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.
3 Supplementary Material .03 to ISE Rule 716
prohibits members from entering Responses for the
account of an options market maker from another
options exchange. This is the only limitation
regarding who may enter Responses.
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
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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 proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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 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 No.
SR–ISE–2006–77 and should be
submitted on or before April 17, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.6
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–5546 Filed 3–26–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55494; File No. SR–Phlx–
2007–19]
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
No. SR–ISE–2006–77 on the subject
line.
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change as Modified by Amendment
No. 1 Thereto Relating to Odd Lot Fees
for XLE Transactions
March 20, 2007.
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 No.
SR–ISE–2006–77. 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 at 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
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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 March 8,
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
Exchange. On March 16, 2007, the
Exchange submitted Amendment No. 1
to the proposed rule change.3 The Phlx
has designated this amended proposal
as one establishing or changing a due,
fee, or other charge imposed by the
6 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 In Partial Amendment No. 1, the Exchange made
several clarifying and technical changes to the
original filing. In addition, the Exchange included
a revised Exhibit 5 in Partial Amendment No. 1 to
reflect technical and clarifying changes made
therein, which, for clarity and ease of reference,
replaces in its entirety the Exhibit 5 contained in
the original filing. The Exchange did not propose
any new fees in Partial Amendment No. 1.
1 15
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Federal Register / Vol. 72, No. 58 / Tuesday, March 27, 2007 / Notices
Exchange under Section 19(b)(3)(A),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 amended, from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Phlx proposes to amend the fees
applicable to certain odd lot
transactions 6 over XLE,7 the Exchange’s
equity trading system, as follows: to (1)
Decrease the execution fee for odd-lot
Immediate-or-Cancel (‘‘IOC’’) Cross and
Mid-Point Cross orders; and (2) increase
the fee for single-sided odd lot orders
routed to and executed at an away
market, as set forth in detail below. The
text of the proposed rule change is
available at the Exchange, 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,
Phlx included statements concerning
the purpose of, and basis for, the
proposed rule change and discussed any
comments it received on the proposal.
The text of these statements may be
examined at the places specified in Item
IV below. 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 continue to encourage
executions of odd lot IOC Cross and
Mid-Point Cross orders on XLE. The
Exchange believes that lowering the fees
4 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
6 An odd lot order means an order for less than
a round lot, which is defined for purposes of XLE
as a unit of trading that is 100 shares. See Exchange
Rules 1(w) and 1(gg). The execution fee for odd lot
orders applies to orders initially entered as odd lot
orders.
7 XLE provides the opportunity for entirely
automated executions to occur within a central
matching system accessible by Exchange members
and member organizations and their Sponsored
Participants. See Securities Exchange Act Release
Nos. 54538 (September 28, 2006), 71 FR 59184
(October 6, 2006) (SR–Phlx–2006–43) and 54941
(December 14, 2006), 71 FR 77079 (December 22,
2006) (SR–Phlx–2006–70) (establishing fees for the
trading of equity securities on XLE).
sroberts on PROD1PC70 with NOTICES
5 17
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for these types of transactions should, in
turn, encourage additional odd lot IOC
Cross and Mid-Point Cross transactions,
thereby allowing the Exchange to
remain competitive. In addition, the
Exchange believes that increasing the
odd lot fee for away market executions
should help it recover its costs
associated with away market
executions.
Currently, all odd lot executions (IOC
Cross and Mid-Point Cross orders and
single-sided orders) are charged the
execution fee for odd lot orders, which
is $0.003 per share for all tiers.8
Pursuant to this proposal: (1) The
execution fee for odd lot IOC Cross and
Mid-Point Cross orders entered over
technology provided by Phlx will be
reduced to $0.0023 per share per side
for all tiers.9 This is the same amount
as round lot IOC Cross and Mid-Point
Cross orders today, such that odd lot
and round lot IOC Cross and Mid-Point
Cross orders will be charged the same
amount when entered over technology
provided by Phlx; (2) odd lot IOC Cross
and Mid-Point Cross orders that are not
entered over technology provided by
Phlx will no longer be assessed any fee,
such that odd lot and round lot IOC
Cross and Mid-Point Cross orders not
entered over technology provided by
Phlx will not be charged execution fees.
In addition, the Exchange proposes to
increase the fee for single-sided odd lot
orders that are routed to and executed
at an away market from $0.003 to $0.03
per share for all tiers. The execution fee
for single-sided odd lot orders executed
on XLE against another XLE Participant
will remain at the current rate of $0.003
per share for all tiers.
The fee changes set forth in this
proposal are scheduled to become
effective for transactions settling on or
after March 9, 2007.
2. Statutory Basis
The Exchange believes that its
proposal to amend its schedule of fees
is consistent with Section 6(b) of the
Act,10 in general, and furthers the
objectives of Section 6(b)(4) of the Act,11
in particular, in that it is designed to
provide for the equitable allocation of
reasonable fees and other charges among
8 The execution fees for odd lot transactions are
set forth in the Miscellaneous Transaction Fee
section of the XLE fee schedule. The Exchange has
adopted volume tiers in connection with the
assessment of transaction fees, which are based on
the monthly shares executed per XLE Participant
Organization.
9 IOC Cross and Mid-Point Cross orders entered
over technology provided by Phlx are subject to a
maximum charge of $50.00 per trade side.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(4).
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14317
Phlx members and other persons using
its facilities.
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 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 solicited
or received with respect to the proposed
rule change.
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 12 and
subparagraph (f)(2) of Rule 19b–4
thereunder,13 since it establishes or
changes a due, fee or other charge
imposed by the Exchange. At any time
within 60 days of the filing of such
proposed rule change, the Commission
may summarily abrogate such rule
change if it appears to the Commission
that such action is necessary of
appropriate in the public interest, for
the protection of investors, or otherwise
in the furtherance of the purposes of the
Act.14
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Phlx–2007–19 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
12 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
14 For purposes of calculating the 60-day period
within which the Commission may summarily
abrogate the proposed rule change under Section
19(b)(3)(C) of the Act, the Commission considers
the period to commence on March 16, 2007, the
date on which Phlx filed Amendment No. 1. See 15
U.S.C. 78s(b)(3)(C).
13 17
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Federal Register / Vol. 72, No. 58 / Tuesday, March 27, 2007 / Notices
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–Phlx–2007–19. 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
should submit only information that
you wish to make available publicly. All
submissions should refer to File No.
SR–Phlx–2007–19 and should be
submitted on or before April 17, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–5547 Filed 3–26–07; 8:45 am]
BILLING CODE 8010–01–P
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Phlx proposes to amend
Exchange Rule 1080, Commentary .01,
to delete references to ‘‘Auto-Quote.’’
The text of the proposed rule change is
available on the Exchange’s Web site at
https://www.Phlx.com, at the Phlx’s
Office of the Secretary, 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
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55498; File No. SR–Phlx–
2007–15]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Delete the Exchange’s
Auto-Quote Options Pricing
Functionality
March 20, 2007.
sroberts on PROD1PC70 with NOTICES
22, 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 proposed
rule change pursuant to Section
19(b)(3)(A) of the Act 3 and Rule 19b–
4(f)(5) thereunder,4 which renders the
proposal immediately effective upon
filing. The Commission is publishing
this notice to solicit comments on the
proposed rule change from interested
persons.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 2 thereunder,
notice is hereby given that on February
1. Purpose
The purpose of the proposed rule
change is to eliminate the outmoded
and little-used options pricing
functionality of the Exchange’s
Automated Quotation System (‘‘AutoQuote’’), which should reduce updating
and modification costs which could
ultimately be passed on to customers, as
described more fully below. Auto-Quote
is the Exchange’s electronic options
pricing system, which enables
specialists, Streaming Quote Traders
(‘‘SQTs’’) 5 and Remote Streaming Quote
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(5).
5 An SQT is an Exchange Registered Options
Trader (‘‘ROT’’) who has received permission from
the Exchange to generate and submit options
4 17
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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16:38 Mar 26, 2007
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Traders (‘‘RSQTs’’),6 to automatically
monitor and instantly update and
submit electronic quotations for equity
option and index option contracts.7
Currently, the wide majority of traders
on the Exchange use their own
proprietary options pricing systems, and
access the Exchange’s electronic options
trading system, Phlx XL, through a
specialized connection, by-passing
Auto-Quote. This specialized
connection is known as a specialized
quote feed (‘‘SQF’’).8 SQF users who do
not use Auto-Quote submit proprietary
electronic option quotations via SQF.
SQF users submit electronic option
quotations through their own pricing
models or through quotation vendors.
In July, 2004, the Exchange
implemented its fully electronic trading
system for options, Phlx XL.9 At that
time, vendor options pricing systems
used by Exchange members often were
not technologically capable of providing
full options pricing services to Exchange
members. Consequently, many members
used Auto-Quote instead of vendor
option pricing systems. Since that time,
vendor options pricing systems have
been upgraded to address shortcomings
that existed previously. As a result, very
few options traders still use Auto-Quote
on the Exchange. Such options traders
have received written notification by
way of Exchange circular of the
Exchange’s intention to eliminate the
Auto-Quote options pricing
functionality from its options trading
systems and will make necessary
arrangements with the appropriate
vendors to price options and to access
the Exchange’s trading systems via SQF.
Recent changes in options trading
such as quoting and trading of options
in pennies, increased quote traffic, and
the automation of processing complex
orders, to name a few, would mandate
continual upgrades to the technological
requirements to maintain Auto-Quote as
a component of the Exchange’s options
trading systems. The Exchange’s
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 Exchange Rule 1014(b)(ii)(A).
6 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 Exchange
Rule 1014(b)(ii)(B).
7 See Exchange Rule 1080, Commentary .01(a).
8 See Exchange Rule 1080, Commentary .01(b).
9 See Securities Exchange Act Release No. 50100
(July 27, 2004), 69 FR 46612 (August 3, 2004) (SR–
Phlx–2003–59).
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]]>Agencies
[Federal Register Volume 72, Number 58 (Tuesday, March 27, 2007)]
[Notices]
[Pages 14316-14318]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-5547]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55494; File No. SR-Phlx-2007-19]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change as
Modified by Amendment No. 1 Thereto Relating to Odd Lot Fees for XLE
Transactions
March 20, 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 March 8, 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
Exchange. On March 16, 2007, the Exchange submitted Amendment No. 1 to
the proposed rule change.\3\ The Phlx has designated this amended
proposal as one establishing or changing a due, fee, or other charge
imposed by the
[[Page 14317]]
Exchange under Section 19(b)(3)(A),\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 amended, from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ In Partial Amendment No. 1, the Exchange made several
clarifying and technical changes to the original filing. In
addition, the Exchange included a revised Exhibit 5 in Partial
Amendment No. 1 to reflect technical and clarifying changes made
therein, which, for clarity and ease of reference, replaces in its
entirety the Exhibit 5 contained in the original filing. The
Exchange did not propose any new fees in Partial Amendment No. 1.
\4\ 15 U.S.C. 78s(b)(3)(A).
\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 Phlx proposes to amend the fees applicable to certain odd lot
transactions \6\ over XLE,\7\ the Exchange's equity trading system, as
follows: to (1) Decrease the execution fee for odd-lot Immediate-or-
Cancel (``IOC'') Cross and Mid-Point Cross orders; and (2) increase the
fee for single-sided odd lot orders routed to and executed at an away
market, as set forth in detail below. The text of the proposed rule
change is available at the Exchange, the Commission's Public Reference
Room, and https://www.phlx.com.
---------------------------------------------------------------------------
\6\ An odd lot order means an order for less than a round lot,
which is defined for purposes of XLE as a unit of trading that is
100 shares. See Exchange Rules 1(w) and 1(gg). The execution fee for
odd lot orders applies to orders initially entered as odd lot
orders.
\7\ XLE provides the opportunity for entirely automated
executions to occur within a central matching system accessible by
Exchange members and member organizations and their Sponsored
Participants. See Securities Exchange Act Release Nos. 54538
(September 28, 2006), 71 FR 59184 (October 6, 2006) (SR-Phlx-2006-
43) and 54941 (December 14, 2006), 71 FR 77079 (December 22, 2006)
(SR-Phlx-2006-70) (establishing fees for the trading of equity
securities on XLE). .
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, Phlx included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposal. The text of these
statements may be examined at the places specified in Item IV below.
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 continue to encourage
executions of odd lot IOC Cross and Mid-Point Cross orders on XLE. The
Exchange believes that lowering the fees for these types of
transactions should, in turn, encourage additional odd lot IOC Cross
and Mid-Point Cross transactions, thereby allowing the Exchange to
remain competitive. In addition, the Exchange believes that increasing
the odd lot fee for away market executions should help it recover its
costs associated with away market executions.
Currently, all odd lot executions (IOC Cross and Mid-Point Cross
orders and single-sided orders) are charged the execution fee for odd
lot orders, which is $0.003 per share for all tiers.\8\ Pursuant to
this proposal: (1) The execution fee for odd lot IOC Cross and Mid-
Point Cross orders entered over technology provided by Phlx will be
reduced to $0.0023 per share per side for all tiers.\9\ This is the
same amount as round lot IOC Cross and Mid-Point Cross orders today,
such that odd lot and round lot IOC Cross and Mid-Point Cross orders
will be charged the same amount when entered over technology provided
by Phlx; (2) odd lot IOC Cross and Mid-Point Cross orders that are not
entered over technology provided by Phlx will no longer be assessed any
fee, such that odd lot and round lot IOC Cross and Mid-Point Cross
orders not entered over technology provided by Phlx will not be charged
execution fees.
---------------------------------------------------------------------------
\8\ The execution fees for odd lot transactions are set forth in
the Miscellaneous Transaction Fee section of the XLE fee schedule.
The Exchange has adopted volume tiers in connection with the
assessment of transaction fees, which are based on the monthly
shares executed per XLE Participant Organization.
\9\ IOC Cross and Mid-Point Cross orders entered over technology
provided by Phlx are subject to a maximum charge of $50.00 per trade
side.
---------------------------------------------------------------------------
In addition, the Exchange proposes to increase the fee for single-
sided odd lot orders that are routed to and executed at an away market
from $0.003 to $0.03 per share for all tiers. The execution fee for
single-sided odd lot orders executed on XLE against another XLE
Participant will remain at the current rate of $0.003 per share for all
tiers.
The fee changes set forth in this proposal are scheduled to become
effective for transactions settling on or after March 9, 2007.
2. Statutory Basis
The Exchange believes that its proposal to amend its schedule of
fees is consistent with Section 6(b) of the Act,\10\ in general, and
furthers the objectives of Section 6(b)(4) of the Act,\11\ in
particular, in that it is designed to provide for the equitable
allocation of reasonable fees and other charges among Phlx members and
other persons using its facilities.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4).
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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 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 solicited or received with respect to the
proposed rule change.
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 \12\ and subparagraph (f)(2) of Rule 19b-4
thereunder,\13\ since it establishes or changes a due, fee or other
charge imposed by the Exchange. At any time within 60 days of the
filing of such proposed rule change, the Commission may summarily
abrogate such rule change if it appears to the Commission that such
action is necessary of appropriate in the public interest, for the
protection of investors, or otherwise in the furtherance of the
purposes of the Act.\14\
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\12\ 15 U.S.C. 78s(b)(3)(A)(ii).
\13\ 17 CFR 240.19b-4(f)(2).
\14\ For purposes of calculating the 60-day period within which
the Commission may summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission considers the period
to commence on March 16, 2007, the date on which Phlx filed
Amendment No. 1. 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, 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-2007-19 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission,
[[Page 14318]]
100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-Phlx-2007-19. 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 should submit only information that
you wish to make available publicly. All submissions should refer to
File No. SR-Phlx-2007-19 and should be submitted on or before April 17,
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. E7-5547 Filed 3-26-07; 8:45 am]
BILLING CODE 8010-01-P
