Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Phlx Rule 607 and the XLE Fee Schedule, 16845-16846 [E7-6375]

Download as PDF Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Notices 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 self-regulatory organization 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. the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–NYSEArca–2007–17 and should be submitted on or before April 26, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.6 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–6372 Filed 4–4–07; 8:45 am] BILLING CODE 8010–01–P 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: SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55553; File No. SR–Phlx– 2007–23] • 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–2007–17 on the subject line. jlentini on PROD1PC65 with NOTICES Electronic Comments Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Phlx Rule 607 and the XLE Fee Schedule March 29, 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 20, Paper Comments 2007, the Philadelphia Stock Exchange, • Send paper comments in triplicate Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with to Nancy M. Morris, Secretary, the Securities and Exchange Securities and Exchange Commission, Commission (‘‘Commission’’) the 100 F Street, NE., Washington, DC proposed rule change as described in 20549–1090. Items I, II, and III, below, which Items have been substantially prepared by the All submissions should refer to File Phlx. The Phlx has designated this Number SR–NYSEArca–2007–17. This proposal as one establishing or changing file number should be included on the subject line if e-mail is used. To help the a due, fee, or other charge applicable only to a member under Section Commission process and review your 19(b)(3)(A)(ii) of the Act,3 and Rule comments more efficiently, please use only one method. The Commission will 19b–4(f)(2) thereunder,4 which renders post all comments on the Commission’s the proposal effective upon filing with the Commission. The Commission is Internet Web site (https://www.sec.gov/ publishing this notice to solicit rules/sro.shtml). Copies of the comments on the proposed rule change submission, all subsequent from interested persons. amendments, all written statements with respect to the proposed rule I. Self-Regulatory Organization’s change that are filed with the Statement of the Terms of Substance of Commission, and all written the Proposed Rule Change communications relating to the The Phlx proposes to amend Phlx proposed rule change between the Commission and any person, other than Rule 607,5 Covered Sale Fee, and the those that may be withheld from the 6 17 CFR 200.30–3(a)(12). public in accordance with the 1 15 U.S.C. 78s(b)(1). provisions of 5 U.S.C. 552, will be 2 17 CFR 240.19b–4. available for inspection and copying in 3 15 U.S.C. 78s(b)(3)(A)(ii). the Commission’s Public Reference 4 17 CFR 240.19b–4(f)(2). Room. Copies of such filing also will be 5 The Commission notes that the text of Phlx Rule 607 was incorrectly reflected in Exhibit 5A of the available for inspection and copying at VerDate Aug<31>2005 17:37 Apr 04, 2007 Jkt 211001 PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 16845 XLE Fee Schedule to include sale transactions that are routed through the Exchange’s routing facility. The Exchange also proposes to clarify and update the language in Phlx Rule 607 and on the XLE Fee Schedule that relates to the routing of orders over the NMS Linkage Plan. This proposal is scheduled to become effective for transactions settling on or after March 20, 2007. The text of the proposed rule change is available at the Exchange, on the Exchange’s Web site at www.phlx.com, 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 1. Purpose Currently, pursuant to Phlx Rule 607, each Phlx member and member organization engaged in executing sale transactions on the Exchange or executing transactions on another exchange or on a Participant in NASD’s Alternative Display Facility (‘‘ADF Participant’’), which were routed over the NMS Linkage Plan, pays a Covered Sale fee equal to (i) The Section 31 fee rate multiplied by (ii) the member’s aggregate dollar amount of covered sales.6 A sale transaction may now be routed through the Exchange’s outbound routing facility,7 which is not covered Exchange’s Form 19b–4 filing. Specifically, the Exchange did not include two references to the ‘‘Intermarket Trading System’’ that were contained in the third paragraph of Rule 607 (the third paragraph of the rule is not affected by this proposed rule change). These two references have subsequently been deleted as part of another immediately effective proposed rule change (see File No. SR–Phlx–2007–31), filed on March 27, 2007. 6 The term ‘‘Covered Sale fee’’ describes the fee that Phlx imposes to recover what it owes pursuant to Section 31 of the Act (15 U.S.C. 78ee). Other exchanges may use different terms to describe the same fee (e.g., ‘‘Activity Assessment Fee’’ or ‘‘Sales Value Fee’’). 7 See Phlx Rule 185(g). E:\FR\FM\05APN1.SGM 05APN1 16846 Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Notices by the language set forth above. The Exchange’s outbound routing facility sends outbound orders to an away market broker for execution on an away market. Any covered sale type-fee assessed by an away market and incurred by the away market broker is then passed back to Phlx for payment, through the Exchange’s outbound routing facility. This proposal inserts language to reflect that sale transactions may be routed over the Exchange’s routing facility. Also, the proposed language reflects that the Covered Sale fee may be collected by the Exchange for these transactions to help the Exchange recover the amounts paid to other exchanges. Additionally, the Exchange proposes to delete the reference to transactions routed over the NMS Linkage Plan, as it is no longer applicable. As discussed above, the Exchange has contracted with its outbound routing facility to route the Exchange’s outbound orders. Thus, these orders are no longer routed outbound through the NMS Linkage Plan. Deleting the language relating to outbound routing over the NMS Linkage Plan will update Phlx Rule 607 and the XLE Fee Schedule to reflect the Exchange’s current outbound routing practices. The provisions of Phlx Rule 607 pertaining to arrangements with other exchanges remain unchanged because the Exchange accepts orders routed inbound through the NMS Linkage Plan. 2. Statutory Basis The Exchange believes that its proposal to amend its schedule of fees is consistent with Section 6(b) of the Act 8 in general, and furthers the objectives of Section 6(b)(4) of the Act 9 in particular, in that it is an equitable allocation of reasonable fees and other charges among Exchange members. B. Self-Regulatory Organization’s Statement on Burden on Competition The 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. jlentini on PROD1PC65 with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received by the Exchange. 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 10 and paragraph (f)(2) of Rule 19b–4 11 thereunder because it establishes a due, fee, or other charge applicable only to a member. 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 (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–Phlx–2007–23 on the subject line. 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-2007–23 and should be submitted on or before April 26, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–6375 Filed 4–4–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55558; File No. SR–Phlx– 2007–25] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Exchange’s Automated Opening System March 29, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 Paper Comments (‘‘Act’’),1 and Rule 19b–4 thereunder,2 • Send paper comments in triplicate notice is hereby given that on March 20, to Nancy M. Morris, Secretary, 2007, the Philadelphia Stock Exchange, Securities and Exchange Commission, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with 100 F Street, NE., Washington, DC the Securities and Exchange 20549–1090. Commission (‘‘Commission’’) the All submissions should refer to File proposed rule change as described in Number SR–Phlx–2007–23. This file Items I, II, and III below, which Items number should be included on the have been substantially prepared by the subject line if e-mail is used. To help the Phlx. The Phlx has filed the proposed Commission process and review your rule change as one effecting a change in comments more efficiently, please use an existing order-entry or trading system only one method. The Commission will of a self-regulatory organization post all comments on the Commission’s pursuant to Section 19(b)(3)(A)(ii) of the Internet Web site (https://www.sec.gov/ Act 3 and Rule 19b–4(f)(5) thereunder,4 rules/sro.shtml). Copies of the which renders the proposal effective submission, all subsequent upon filing with the Commission. The amendments, all written statements Commission is publishing this notice to with respect to the proposed rule solicit comments on the proposed rule change that are filed with the change from interested persons. Commission, and all written I. Self-Regulatory Organization’s communications relating to the Statement of the Terms of Substance of proposed rule change between the Commission and any person, other than the Proposed Rule Change those that may be withheld from the The Phlx proposes to amend public in accordance with the Exchange Rule 1017, Openings in provisions of 5 U.S.C. 552, will be available for inspection and copying in 12 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). the Commission’s Public Reference 2 17 8 15 U.S.C. 78f(b). 9 15 U.S.C. 78f(b)(4). VerDate Aug<31>2005 17:37 Apr 04, 2007 10 15 U.S.C. 78s(b)(3)(A)(ii). 11 17 CFR 240.19b–4(f)(2). Jkt 211001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 CFR 240.19b–4. U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(5). 3 15 E:\FR\FM\05APN1.SGM 05APN1

Agencies

[Federal Register Volume 72, Number 65 (Thursday, April 5, 2007)]
[Notices]
[Pages 16845-16846]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-6375]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55553; File No. SR-Phlx-2007-23]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Phlx Rule 607 and the XLE Fee Schedule

March 29, 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 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, II, 
and III, below, which Items have been substantially prepared by the 
Phlx. The Phlx has designated this proposal as one establishing or 
changing a due, fee, or other charge applicable only to a member under 
Section 19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2) 
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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Phlx proposes to amend Phlx Rule 607,\5\ Covered Sale Fee, and 
the XLE Fee Schedule to include sale transactions that are routed 
through the Exchange's routing facility. The Exchange also proposes to 
clarify and update the language in Phlx Rule 607 and on the XLE Fee 
Schedule that relates to the routing of orders over the NMS Linkage 
Plan.
---------------------------------------------------------------------------

    \5\ The Commission notes that the text of Phlx Rule 607 was 
incorrectly reflected in Exhibit 5A of the Exchange's Form 19b-4 
filing. Specifically, the Exchange did not include two references to 
the ``Intermarket Trading System'' that were contained in the third 
paragraph of Rule 607 (the third paragraph of the rule is not 
affected by this proposed rule change). These two references have 
subsequently been deleted as part of another immediately effective 
proposed rule change (see File No. SR-Phlx-2007-31), filed on March 
27, 2007.
---------------------------------------------------------------------------

    This proposal is scheduled to become effective for transactions 
settling on or after March 20, 2007. The text of the proposed rule 
change is available at the Exchange, on the Exchange's Web site at 
www.phlx.com, 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

1. Purpose
    Currently, pursuant to Phlx Rule 607, each Phlx member and member 
organization engaged in executing sale transactions on the Exchange or 
executing transactions on another exchange or on a Participant in 
NASD's Alternative Display Facility (``ADF Participant''), which were 
routed over the NMS Linkage Plan, pays a Covered Sale fee equal to (i) 
The Section 31 fee rate multiplied by (ii) the member's aggregate 
dollar amount of covered sales.\6\
---------------------------------------------------------------------------

    \6\ The term ``Covered Sale fee'' describes the fee that Phlx 
imposes to recover what it owes pursuant to Section 31 of the Act 
(15 U.S.C. 78ee). Other exchanges may use different terms to 
describe the same fee (e.g., ``Activity Assessment Fee'' or ``Sales 
Value Fee'').
---------------------------------------------------------------------------

    A sale transaction may now be routed through the Exchange's 
outbound routing facility,\7\ which is not covered

[[Page 16846]]

by the language set forth above. The Exchange's outbound routing 
facility sends outbound orders to an away market broker for execution 
on an away market. Any covered sale type-fee assessed by an away market 
and incurred by the away market broker is then passed back to Phlx for 
payment, through the Exchange's outbound routing facility. This 
proposal inserts language to reflect that sale transactions may be 
routed over the Exchange's routing facility. Also, the proposed 
language reflects that the Covered Sale fee may be collected by the 
Exchange for these transactions to help the Exchange recover the 
amounts paid to other exchanges.
---------------------------------------------------------------------------

    \7\ See Phlx Rule 185(g).
---------------------------------------------------------------------------

    Additionally, the Exchange proposes to delete the reference to 
transactions routed over the NMS Linkage Plan, as it is no longer 
applicable. As discussed above, the Exchange has contracted with its 
outbound routing facility to route the Exchange's outbound orders. 
Thus, these orders are no longer routed outbound through the NMS 
Linkage Plan. Deleting the language relating to outbound routing over 
the NMS Linkage Plan will update Phlx Rule 607 and the XLE Fee Schedule 
to reflect the Exchange's current outbound routing practices. The 
provisions of Phlx Rule 607 pertaining to arrangements with other 
exchanges remain unchanged because the Exchange accepts orders routed 
inbound through the NMS Linkage Plan.
2. Statutory Basis
    The Exchange believes that its proposal to amend its schedule of 
fees is consistent with Section 6(b) of the Act \8\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \9\ in 
particular, in that it is an equitable allocation of reasonable fees 
and other charges among Exchange members.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 by the 
Exchange.

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 \10\ and paragraph (f)(2) of Rule 19b-4 \11\ 
thereunder because it establishes a due, fee, or other charge 
applicable only to a member. 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-2007-23 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-2007-23. 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-2007-23 and should be submitted on or before April 26, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-6375 Filed 4-4-07; 8:45 am]
BILLING CODE 8010-01-P
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