Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Ratio Spreads, 18505-18507 [E7-6878]
Download as PDF
<![CDATA[
Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Notices
rmajette on PROD1PC67 with NOTICES
III. Discussion and Commission
Findings
After careful review, the Commission
finds that the proposed rule change is
consistent with Section 6(b) of the Act 10
in general and Section 6(b)(5) of the
Act 11 in particular, which require that
the rules of the Exchange be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade and, in
general, to protect investors and the
public interest.12 The proposed rule
change, as amended, enables the
Director of Arbitration to remove an
arbitrator when a conflict arises after the
commencement of the hearing or when
information required to be disclosed
pursuant to Exchange Rule 610 and of
which the parties were previously
unaware, is not disclosed. Similarly, the
proposed rule change also permits an
arbitrator to be removed where
circumstances known before the
commencement of the hearing develop
into a conflict after the commencement
of the hearing. Enabling the Director of
Arbitration to remove arbitrators with
any of these conflicts if they fail to
recuse themselves will address
circumstances in which an arbitrator
with a conflict could otherwise continue
serving on a panel. We believe that
allowing the Director of Arbitration to
exercise this authority will facilitate the
removal of arbitrators with either
previously undisclosed and unknown
conflicts or newly-arising conflicts
(whether from known or unknown
circumstances), and will therefore
enhance the fairness and transparency
of the arbitration process. Accelerated
Approval of the Proposed Rule Change
as Modified by Amendment Nos. 2 and
3. The Commission finds good cause for
approving the proposed rule change as
modified by Amendment Nos. 2 and 3
to the proposed rule change prior to the
thirtieth day after the amendment is
published for comment in the Federal
Register pursuant to Section 19(b)(2) of
the Act.13 Amendment No. 2 responded
to a comment by providing that parties
aware of conflicts prior to the time that
the arbitrator was appointed could not
delay action on that knowledge.
Amendment No. 3, which clarified
Amendment No. 2, set forth the two
grounds for removal of an arbitrator
after commencement of the hearing:
first, a conflict arising after the
10 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
12 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
13 15 U.S.C. 78s(b)(2).
11 15
VerDate Aug<31>2005
15:49 Apr 11, 2007
Jkt 211001
commencement of the hearing; and
second, a failure to disclose information
pursuant to Rule 610 if the parties were
previously unaware of the undisclosed
information. The Commission finds
that, given the concerns the commenter
raised with respect to the possibility
that the arbitration process might be
manipulated by parties seeking to
remove an arbitrator based on
information known to a party at an
earlier date but acted upon only after
the party assessed the arbitrator, it is
appropriate and responsive for the
Exchange to amend the proposed rule
change to provide that an arbitrator
cannot be removed after taking the oath
of arbitration for a particular case based
on a conflict of which the parties were
previously aware. In essence, the rule
provides that parties who come into
knowledge of a conflict may not delay
before requesting removal of an
arbitrator. Similarly, the Commission
believes that it is appropriate to permit
the Director of Arbitration to remove an
arbitrator for whom a conflict arises
after commencement of the hearing, as
the NYSE rules do not presently provide
for such removal. Accordingly, the
Commission finds good cause to
accelerate approval of the proposed rule
change, as amended.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the proposed rule
change as modified by Amendment Nos.
2 and 3, including whether Amendment
Nos. 2 and 3 are consistent with the Act.
Comments may be submitted by any of
the following methods:
18505
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 NYSE. 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–NYSE–2004–56 and should
be submitted on or before May 3, 2007.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 14 that the
proposed rule change (SR–NYSE–2004–
56), as amended, be, and hereby is,
approved on an accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–6935 Filed 4–11–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2004–56 on the
subject line.
[Release No. 34–55591; File No. SR–Phlx–
2007–30]
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–NYSE–2004–56. 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
April 6, 2007.
PO 00000
Frm 00049
Fmt 4703
Sfmt 4703
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Ratio Spreads
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 and II below, which Items have
been prepared substantially by the Phlx.
14 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
15 17
E:\FR\FM\12APN1.SGM
12APN1
18506
Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Notices
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.5 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Phlx proposes to amend Phlx
Rules 1033, ‘‘Bids and Offers—
Premium,’’ and 1066, ‘‘Certain Types of
Orders Defined,’’ to define and permit
ratio spreads in all options traded on the
Exchange.
The text of the proposed rule change
is available at the Exchange, in the
Commission’s Public Reference Room,
and at https://www.phlx.com.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Phlx included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. The Phlx has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
rmajette on PROD1PC67 with NOTICES
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 define and permit ratio
spreads in options overlying equities,
indexes, and Exchange Traded Fund
Shares (‘‘ETFs’’), and to establish by
rule permissible ratios for such orders.
Currently, Phlx Rule 1033 permits
members to trade spread orders in
which the respective legs consist of
different numbers of contracts (ratio
spreads) for foreign currency options
only. The proposed rule change would
expand the rule to permit ratio spreads
for all options traded on the Exchange
by deleting from the rules language
limiting such orders to options
overlying foreign currencies.
Specifically, the Phlx proposes to
amend Phlx Rule 1033(g) to permit ratio
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 The Phlx has asked the Commission to waive
the 30-day operative delay provided in Rule 19b–
4(f)(6)(iii), 17 CFR 240.19b–4(f)(6)(iii).
spreads for spread, straddle, and
combination orders, as defined in Phlx
Rule 1066, in equity, ETF, and index
options by deleting the current language
that limits such orders to foreign
currency options. The amended rules
would permit spread, straddle, and
combination orders in equity, ETF, and
index options with a ratio that is equal
to or greater than one-to-three and less
than or equal to three-to-one.
Phlx Rule 1066 currently defines a
‘‘spread order’’ as an order to buy a
stated number of option contracts and to
sell the same number of option
contracts in a different series of the
same option. The proposed amendment
would re-define the term ‘‘spread order’’
as an order to buy a stated number of
option contracts and to sell a stated
number of option contracts (which may
be a different number of contracts) in a
different series of the same option. The
definition would also clarify that such
an order may be bid for or offered on a
total net debit or credit basis.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 6 in general, and furthers the
objectives of Section 6(b)(5) of the Act 7
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest by
permitting ratio spreads in all options
traded on the Exchange.
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
The Phlx has filed the proposed rule
change pursuant to Section 19(b)(3)(A)
of the Act 8 and subparagraph (f)(6) of
Rule 19b–4 thereunder.9 Because the
Phlx has designated the foregoing
3 15
4 17
VerDate Aug<31>2005
15:49 Apr 11, 2007
Jkt 211001
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6).
6 15
PO 00000
Frm 00050
Fmt 4703
Sfmt 4703
proposed rule change as one that 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 and Rule 19b–4(f)(6)
thereunder. As required by Rule 19b–
4(f)(6)(iii) under the Act,10 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 filing the proposal with the
Commission or such shorter period as
designated by the Commission.
A proposed rule change filed under
Rule 19b–4(f)(6) under the Act 11
normally does not become operative
prior to 30 days after the date of filing.
However, Rule 19b–4(f)(6)(iii) permits
the Commission to designate a shorter
time if such action is consistent with the
protection of investors and the public
interest.12 The Phlx has asked the
Commission waive the 30-day operative
delay to allow the Phlx to have the same
rules governing ratio spreads as those
currently in effect on other options
exchanges.13
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it would allow the Phlx to
implement rules governing ratio spreads
consistent with those adopted by other
options exchanges without delay.14 For
this reason, the Commission designates
that the proposal become operative
immediately.
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,
10 17
CFR 240.19b–4(f)(6)(iii).
CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
13 See American Stock Exchange LLC Rule
950(e)(v); Chicago Board Options Exchange,
Incorporated Rule 6.53(n); International Securities
Exchange, LLC Rule 722(a)(6); and NYSE Arca, Inc.
Rule 6.62(j).
14 See note 13, supra. For the purposes only of
waiving the 30-day operative delay, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
11 17
E:\FR\FM\12APN1.SGM
12APN1
Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Notices
or otherwise in furtherance of the
purposes of the Act.15
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:
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–6878 Filed 4–11–07; 8:45 am]
BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #10843 and #10844]
Colorado Disaster #CO–00015
• 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–2007–30 on the
subject line.
rmajette on PROD1PC67 with NOTICES
Electronic Comments
AGENCY:
SUMMARY: This is a notice of an
Administrative declaration of a disaster
for the State of Colorado dated
04/05/2007.
Incident: Tornado.
Paper Comments
Incident Period: 03/28/2007.
Effective Date: 04/05/2007.
• Send paper comments in triplicate
Physical Loan Application Deadline
to Nancy M. Morris, Secretary,
Date: 06/04/2007.
Securities and Exchange Commission,
Economic Injury (EIDL) Loan
100 F Street, NE., Washington, DC
Application Deadline Date: 01/07/2008.
20549–1090.
ADDRESSES: Submit completed loan
All submissions should refer to File
applications to: U.S. Small Business
Number SR–Phlx–2007–30. This file
Administration, Processing and
number should be included on the
Disbursement Center, 14925 Kingsport
subject line if e-mail is used. To help the Road, Fort Worth, TX 76155.
Commission process and review your
FOR FURTHER INFORMATION CONTACT: A.
comments more efficiently, please use
Escobar, Office of Disaster Assistance,
only one method. The Commission will U.S. Small Business Administration,
post all comments on the Commission’s 409 3rd Street, SW., Suite 6050,
Internet Web site (https://www.sec.gov/
Washington, DC 20416.
rules/sro.shtml). Copies of the
SUPPLEMENTARY INFORMATION: Notice is
submission, all subsequent
hereby given that as a result of the
amendments, all written statements
Administrator’s disaster declaration,
with respect to the proposed rule
applications for disaster loans may be
change that are filed with the
filed at the address listed above or other
locally announced locations.
Commission, and all written
The following areas have been
communications relating to the
determined to be adversely affected by
proposed rule change between the
Commission and any person, other than the disaster:
Primary Counties: Prowers.
those that may be withheld from the
Contiguous Counties:
public in accordance with the
Colorado: Baca, Bent, Kiowa.
provisions of 5 U.S.C. 552, will be
Kansas: Greeley, Hamilton, Stanton.
available for inspection and copying in
The Interest Rates are:
the Commission’s Public Reference
Room. Copies of the filing also will be
Percent
available for inspection and copying at
the principal office of the Phlx. All
Homeowners with Credit Available
Elsewhere .................................
5.750
comments received will be posted
Homeowners without Credit Availwithout change; the Commission does
able Elsewhere .........................
2.875
not edit personal identifying
Businesses with Credit Available
information from submissions. You
Elsewhere .................................
8.000
should submit only information that
Businesses & Small Agricultural
you wish to make available publicly. All
Cooperatives without Credit
submissions should refer to File
Available Elsewhere ..................
4.000
Other (including Non-Profit OrgaNumber SR–Phlx–2007–30 and should
nizations) with Credit Available
be submitted on or before May 3, 2007.
15 See
15 U.S.C. 78s(b)(3)(C).
VerDate Aug<31>2005
15:49 Apr 11, 2007
16 17
Jkt 211001
PO 00000
CFR 200.30–3(a)(12).
Frm 00051
Fmt 4703
Sfmt 4703
Percent
Businesses and Non-Profit Organizations without Credit Available Elsewhere .........................
4.000
The number assigned to this disaster
for physical damage is 10843 C and for
economic injury is 10844 0.
The States which received an EIDL
Declaration # are Colorado, Kansas.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Dated: April 5, 2007.
Steven C. Preston,
Administrator.
[FR Doc. E7–6950 Filed 4–11–07; 8:45 am]
U.S. Small Business
Administration.
ACTION: Notice.
Elsewhere .................................
18507
5.250
BILLING CODE 8025–01–P
DEPARTMENT OF STATE
[Public Notice 5757]
Culturally Significant Objects Imported
for Exhibition; Determinations:
‘‘Divisionism/Neo-Impressionism:
Arcadia and Anarchy’’
Summary: Notice is hereby given of
the following determinations: Pursuant
to the authority vested in me by the Act
of October 19, 1965 (79 Stat. 985; 22
U.S.C. 2459), Executive Order 12047 of
March 27, 1978, the Foreign Affairs
Reform and Restructuring Act of 1998
(112 Stat. 2681, et seq.; 22 U.S.C. 6501
note, et seq.), Delegation of Authority
No. 234 of October 1, 1999, Delegation
of Authority No. 236 of October 19,
1999, as amended, and Delegation of
Authority No. 257 of April 15, 2003 [68
FR 19875], I hereby determine that the
objects to be included in the exhibition
‘‘Divisionism/Neo-Impressionism:
Arcadia and Anarchy,’’ imported from
abroad for temporary exhibition within
the United States, are of cultural
significance. The objects are imported
pursuant to loan agreements with the
foreign owners or custodians. I also
determine that the exhibition or display
of the exhibit objects at the Solomon R.
Guggenheim Museum, New York, New
York, from on or about April 27, 2007,
until on or about August 6, 2007, and
at possible additional venues yet to be
determined, is in the national interest.
Public Notice of these Determinations is
ordered to be published in the Federal
Register.
For Further Information Contact: For
further information, including a list of
the exhibit objects, contact Paul
Manning, Attorney-Adviser, Office of
the Legal Adviser, U.S. Department of
State (telephone: (202) 453–8050). The
address is U.S. Department of State, SA–
E:\FR\FM\12APN1.SGM
12APN1
]]>Agencies
[Federal Register Volume 72, Number 70 (Thursday, April 12, 2007)]
[Notices]
[Pages 18505-18507]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-6878]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55591; File No. SR-Phlx-2007-30]
Self-Regulatory Organizations; Philadelphia Stock Exchange,
Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Ratio Spreads
April 6, 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 and
II below, which Items have been prepared substantially by the Phlx.
[[Page 18506]]
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.\5\ The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
\5\ The Phlx has asked the Commission to waive the 30-day
operative delay provided in Rule 19b-4(f)(6)(iii), 17 CFR 240.19b-
4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Phlx proposes to amend Phlx Rules 1033, ``Bids and Offers--
Premium,'' and 1066, ``Certain Types of Orders Defined,'' to define and
permit ratio spreads in all options traded on the Exchange.
The text of the proposed rule change is available at the Exchange,
in the Commission's Public Reference Room, and at https://www.phlx.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Phlx included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Phlx has prepared summaries, set forth in Sections
A, B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to define and permit
ratio spreads in options overlying equities, indexes, and Exchange
Traded Fund Shares (``ETFs''), and to establish by rule permissible
ratios for such orders.
Currently, Phlx Rule 1033 permits members to trade spread orders in
which the respective legs consist of different numbers of contracts
(ratio spreads) for foreign currency options only. The proposed rule
change would expand the rule to permit ratio spreads for all options
traded on the Exchange by deleting from the rules language limiting
such orders to options overlying foreign currencies.
Specifically, the Phlx proposes to amend Phlx Rule 1033(g) to
permit ratio spreads for spread, straddle, and combination orders, as
defined in Phlx Rule 1066, in equity, ETF, and index options by
deleting the current language that limits such orders to foreign
currency options. The amended rules would permit spread, straddle, and
combination orders in equity, ETF, and index options with a ratio that
is equal to or greater than one-to-three and less than or equal to
three-to-one.
Phlx Rule 1066 currently defines a ``spread order'' as an order to
buy a stated number of option contracts and to sell the same number of
option contracts in a different series of the same option. The proposed
amendment would re-define the term ``spread order'' as an order to buy
a stated number of option contracts and to sell a stated number of
option contracts (which may be a different number of contracts) in a
different series of the same option. The definition would also clarify
that such an order may be bid for or offered on a total net debit or
credit basis.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \6\ in general, and furthers the objectives of Section
6(b)(5) of the Act \7\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest by
permitting ratio spreads in all options traded on the Exchange.
---------------------------------------------------------------------------
\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 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
The Phlx has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \8\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\9\ Because the Phlx has designated the foregoing proposed
rule change as one that 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 and Rule 19b-4(f)(6)
thereunder. As required by Rule 19b-4(f)(6)(iii) under the Act,\10\ 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 filing
the proposal with the Commission or such shorter period as designated
by the Commission.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) under the Act
\11\ normally does not become operative prior to 30 days after the date
of filing. However, Rule 19b-4(f)(6)(iii) permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest.\12\ The Phlx has asked
the Commission waive the 30-day operative delay to allow the Phlx to
have the same rules governing ratio spreads as those currently in
effect on other options exchanges.\13\
---------------------------------------------------------------------------
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ See American Stock Exchange LLC Rule 950(e)(v); Chicago
Board Options Exchange, Incorporated Rule 6.53(n); International
Securities Exchange, LLC Rule 722(a)(6); and NYSE Arca, Inc. Rule
6.62(j).
---------------------------------------------------------------------------
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it would allow the Phlx to implement rules governing ratio
spreads consistent with those adopted by other options exchanges
without delay.\14\ For this reason, the Commission designates that the
proposal become operative immediately.
---------------------------------------------------------------------------
\14\ See note 13, supra. For the purposes only of waiving the
30-day operative delay, the Commission has considered the proposed
rule's impact 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,
[[Page 18507]]
or otherwise in furtherance of the purposes of the Act.\15\
---------------------------------------------------------------------------
\15\ See 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------
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-2007-30 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-2007-30. 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-2007-30 and should be submitted on or before May 3,
2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-6878 Filed 4-11-07; 8:45 am]
BILLING CODE 8010-01-P
