Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Remove References to Intermarket Trading System (“ITS”) Plan, 17978-17979 [E7-6670]
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17978
Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–6668 Filed 4–9–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55582; File No. SR–ODD–
2007–01]
Self-Regulatory Organizations; The
Options Clearing Corporation; Order
Granting Approval of Accelerated
Delivery of Supplement to the Options
Disclosure Document Reflecting
Certain Changes to Disclosure
Regarding Rate-Modified Cash-Settled
Foreign Currency Options
April 4, 2007.
On March 13, 2007, The Options
Clearing Corporation (‘‘OCC’’) submitted
to the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Rule 9b–1 under the Securities
Exchange Act of 1934 (‘‘Act’’),1 five
preliminary copies of a supplement to
its options disclosure document
(‘‘ODD’’) reflecting certain changes to
disclosure regarding rate-modified cashsettled foreign currency options (‘‘RateModified FCOs’’).2 On April 3, 2007, the
OCC submitted to the Commission five
definitive copies of the supplement.3
The ODD currently provides general
disclosures on the characteristics and
risks of trading standardize options.
Recently, an options exchange amended
its rules to permit the listing and trading
of Rate-Modified FCOs.4 The proposed
supplement, which supersedes and
replaces the January 2007 Supplement
to the ODD,5 provides disclosure on the
characteristics of non-rate modified
cash-settled foreign currency options
(‘‘Non-Rate Modified FCOs’’) and adds
new disclosure on the characteristics of
Rate-Modified FCOs.
In addition to providing new
disclosure on the characteristics of RateCFR 200.30–3(a)(12).
CFR 240.9b–1.
2 See letter from Jean M. Cawley, First Vice
President and Deputy General Counsel, OCC, to
Sharon Lawson, Senior Special Counsel, Division of
Market Regulation (‘‘Division’’), Commission, dated
March 5, 2007.
3 See letter from Jean M. Cawley, First Vice
President and Deputy General Counsel, OCC, to
Sharon Lawson, Senior Special Counsel, Division,
Commission, dated April 3, 2007.
4 See Securities Exchange Act Release No. 55575
(April 3, 2007) (approving File No. SR–ISE–2006–
59).
5 See Securities Exchange Act Release No. 55035
(December 29, 2006), 72 FR 1358 (January 11, 2007)
(SR–ODD–2006–01) (‘‘January 2007 Supplement’’).
Modified FCOs, the proposed
supplement to the ODD also reorganizes
the January 2007 Supplement to
distinguish disclosures regarding NonRate Modified FCOs from Rate-Modified
FCOs, as well as providing a separate
heading for certain disclosures
pertaining to all dollar-denominated
cash-settled foreign currency options.
Further, the proposed supplement adds
new clarification regarding exercise
settlement values of Rate-Modified
FCOs. The proposed supplement is
intended to be read in conjunction with
the more general ODD, which, as
described above, discusses the
characteristics and risks of options
generally.6
Rule 9b–1(b)(2)(i) under the Act 7
provides that an options market must
file five copies of an amendment or
supplement to the ODD with the
Commission at least 30 days prior to the
date definitive copies are furnished to
customers, unless the Commission
determines otherwise, having due
regard to the adequacy of information
disclosed and the public interest and
protection of investors.8 In addition,
five copies of the definitive ODD, as
amended or supplemented, must be
filed with the Commission not later than
the date the amendment or supplement,
or the amended options disclosure
document, is furnished to customers.
The Commission has reviewed the
proposed supplement and finds, having
due regard to the adequacy of
information disclosed and the public
interest and protection of investors, that
the proposed supplement may be
furnished to customers as of the date of
this order.
It is therefore ordered, pursuant to
Rule 9b–1 under the Act,9 that
definitive copies of the proposed
supplement to the ODD (SR–ODD–
2007–01), reflecting disclosure
regarding Non-Rate Modified FCOs and
adding disclosure regarding RateModified FCOs, may be furnished to
customers as of the date of this order.
7 17
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6 The Commission notes that the options markets
must continue to ensure that the ODD is in
compliance with the requirements of Rule 9b–
1(b)(2)(i) under the Act, 17 CFR 240.9b–1(b)(2)(i),
including when future changes are made regarding
Non-Rate Modified FCOs and Rate-Modified FCOs.
Any future changes to the rules of the options
markets would need to be submitted to the
Commission under Section 19(b) of the Act. 15
U.S.C. 78s(b).
7 17 CFR 240.9b–1(b)(2)(i).
8 This provision permits the Commission to
shorten or lengthen the period of time which must
elapse before definitive copies may be furnished to
customers.
9 17 CFR 240.9b–1.
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For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–6709 Filed 4–9–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55569; File No. SR–Phlx–
2007–031]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Remove References to
Intermarket Trading System (‘‘ITS’’)
Plan
April 2, 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 27,
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 prepared substantially by the
Exchange.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange is proposing to amend
Phlx Rules 452 and 607 and the XLE Fee
Schedule to remove references to the
Intermarket Trading System (‘‘ITS’’)
Plan and to delete Phlx Rules 2000–
2002, which implemented the ITS Plan
trading rules on the Exchange.
The text of the proposed rule change
is available at 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
Exchange 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
10 17
CFR 200.30–3(a)(39).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\10APN1.SGM
10APN1
Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices
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 conform the Exchange’s
rules to the recent elimination of the ITS
Plan.3 Phlx Rules 2000–2002 were
adopted to implement the ITS Plan on
the Exchange. Those rules contain the
trade-through and locked/crossed
market rules that governed trading in
certain securities pursuant to the ITS
Plan. Those rules are now obsolete with
the elimination of the ITS Plan. Tradethrough and locked/crossed market
rules are now mandated by Regulation
NMS 4 and codified in Phlx Rules 185
and 186. In addition, references to the
ITS Plan are being removed from Phlx
Rules 452 and 607 and the XLE Fee
Schedule.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act,5
in general, and furthers the objectives of
Section 6(b)(5) of the Act,6 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.
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 either
solicited or received.
cprice-sewell on PROD1PC66 with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not:
3 See Securities Exchange Act Release No. 55397
(March 5, 2007), 72 FR 11066 (March 12, 2007)(File
No. 4–208).
4 17 CFR 242.610–611.
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
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15:22 Apr 09, 2007
Jkt 211001
(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, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 7 and Rule 19b–4(f)(6) thereunder.8
As required under Rule 19b–4(f)(6)(iii)
under the Act,9 the Exchange 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 the filing of the proposed rule change.
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.10 However, Rule 19b–
4(f)(6)(iii) 11 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Phlx has requested that the Commission
waive the 30-day operative delay and
render the proposed rule change
operative immediately. The Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest. The Commission has
eliminated the ITS Plan, which makes
the various Phlx rules that refer to and
implement the trading rules of the ITS
Plan obsolete. For the reasons stated
above, the Commission therefore
designates the proposal to become
operative upon filing with the
Commission.12
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.
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
9 17 CFR 240.19b–4(f)(6)(iii).
10 Id.
11 Id.
12 For purposes of waiving the operative date of
this proposal only, the Commission has considered
the impact of the proposed rule on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
8 17
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17979
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–2007–31 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–2007–31. 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
Number SR–Phlx–2007–31 and should
be submitted on or before May 1, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–6670 Filed 4–9–07; 8:45 am]
BILLING CODE 8010–01–P
13 17
E:\FR\FM\10APN1.SGM
CFR 200.30–3(a)(12).
10APN1
]]>Agencies
[Federal Register Volume 72, Number 68 (Tuesday, April 10, 2007)]
[Notices]
[Pages 17978-17979]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-6670]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55569; File No. SR-Phlx-2007-031]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Remove References to Intermarket Trading System (``ITS'') Plan
April 2, 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 27, 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 prepared substantially by the
Exchange.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange is proposing to amend Phlx Rules 452 and 607 and the
XLE Fee Schedule to remove references to the Intermarket Trading System
(``ITS'') Plan and to delete Phlx Rules 2000-2002, which implemented
the ITS Plan trading rules on the Exchange.
The text of the proposed rule change is available at 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 Exchange 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
[[Page 17979]]
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 conform the
Exchange's rules to the recent elimination of the ITS Plan.\3\ Phlx
Rules 2000-2002 were adopted to implement the ITS Plan on the Exchange.
Those rules contain the trade-through and locked/crossed market rules
that governed trading in certain securities pursuant to the ITS Plan.
Those rules are now obsolete with the elimination of the ITS Plan.
Trade-through and locked/crossed market rules are now mandated by
Regulation NMS \4\ and codified in Phlx Rules 185 and 186. In addition,
references to the ITS Plan are being removed from Phlx Rules 452 and
607 and the XLE Fee Schedule.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 55397 (March 5,
2007), 72 FR 11066 (March 12, 2007)(File No. 4-208).
\4\ 17 CFR 242.610-611.
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\5\ in general, and furthers the objectives of Section 6(b)(5) of
the Act,\6\ 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 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, it
has become effective pursuant to Section 19(b)(3)(A) of the Act \7\ and
Rule 19b-4(f)(6) thereunder.\8\ As required under Rule 19b-4(f)(6)(iii)
under the Act,\9\ the Exchange 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 the filing of the proposed rule
change.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6).
\9\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\10\
However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Phlx has requested that the
Commission waive the 30-day operative delay and render the proposed
rule change operative immediately. The Commission believes that waiving
the 30-day operative delay is consistent with the protection of
investors and the public interest. The Commission has eliminated the
ITS Plan, which makes the various Phlx rules that refer to and
implement the trading rules of the ITS Plan obsolete. For the reasons
stated above, the Commission therefore designates the proposal to
become operative upon filing with the Commission.\12\
---------------------------------------------------------------------------
\10\ Id.
\11\ Id.
\12\ For purposes of waiving the operative date of this proposal
only, the Commission has considered the impact of the proposed rule
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
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 rule-comments@sec.gov. Please include
File Number SR-Phlx-2007-31 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-2007-31. 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 Number SR-Phlx-2007-31 and should be submitted on or before May 1,
2007.
For the Commission, by the Division of Market Regulation, pursuant
to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-6670 Filed 4-9-07; 8:45 am]
BILLING CODE 8010-01-P
