Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Extending the Specialist Option Transaction Charge Credit Pilot Program, 40920-40921 [E7-14357]

Download as PDF 40920 Federal Register / Vol. 72, No. 142 / Wednesday, July 25, 2007 / Notices DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of NASD. 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–NASD–2007–039 and should be submitted on or before August 15, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–14359 Filed 7–24–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56101; File No. SR–Phlx– 2007–50] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Extending the Specialist Option Transaction Charge Credit Pilot Program July 19, 2007. rwilkins on PROD1PC63 with NOTICES 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 June 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 Exchange. Phlx has designated this proposal as one establishing or changing a due, fee, or other charge imposed by the Exchange 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. 13 17 CFR 200.30–3(a)(12). 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). 1 15 VerDate Aug<31>2005 19:31 Jul 24, 2007 Jkt 211001 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Phlx proposes to extend for a one-year period, until July 31, 2008, its current pilot program that provides for an option transaction charge credit of $0.21 per contract for Exchange options specialist units 5 that incur Phlx option transaction charges when a customer order is delivered to the limit order book via the Exchange’s Options Floor Broker Management System (‘‘FBMS’’) 6 and is then sent to an away market and executed via the Intermarket Option Linkage (‘‘Linkage’’) under the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage (‘‘Plan’’) 7 as a Principal Acting as Agent Order (‘‘P/A Order’’).8 The pilot program in effect is currently scheduled to expire on July 31, 2007.9 The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, and http:// 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, 5 The terms ‘‘specialist’’ and ‘‘specialist unit’’ are used interchangeably herein. 6 The FBMS is designed to enable Floor Brokers and/or their employeesto enter, route and report transactions stemming from options orders received on the Exchange. The FBMS also is designed to establish an electronic audit trail for options orders represented and executed by Floor Brokers on the Exchange, such that the audit trail provides an accurate, time-sequenced record of electronic and other orders, quotations and transactions on the Exchange, beginning with the receipt of an order by the Exchange, and further documenting the life of the order through the process of execution, partial execution, or cancellation of that order. See Phlx Rule 1080, Commentary .06. 7 See Securities Exchange Act Release Nos. 43086 (July 28, 2000), 65 FR 48023 (August 4, 2000) and 43573 (November 16, 2000), 65 FR 70851 (November 28, 2000) (order approving Phlx as a participant in the Plan). 8 A P/A order is an order for the principal account of a specialist (orequivalent entity on another participant exchange that is authorized to represent public customer orders), reflecting the terms of a related unexecuted public customer order for which the specialist is acting as agent. See Phlx Rule 1083(k)(i). 9 See Securities Exchange Act Release No. 54257 (August 1, 2006), 71 FR 45089 (August 8, 2006) (SR–Phlx–2006–46). This proposal is scheduled to be in effect for the same time period as fees for Linkage Principal Orders (‘‘P Orders’’) and P/A Orders. See Securities Exchange Act Release No. 54233 (July 27, 2006), 71 FR 44070 (August 3, 2006) (SR–Phlx–2006–44). The Exchange intends to file a separate proposed rule change to extend, for a oneyear period through July 31, 2008, the pilot relating to transaction fees applicable to the execution of P/ A Orders and P Orders sent to the Exchange via Linkage under the Plan. PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 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 Exchange has substantially 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, the Exchange provides an option transaction charge credit of $0.21 per contract for Exchange options specialist units that incur Phlx option transaction charges when a customer order is delivered to the limit order book via FBMS and is then sent to an away market and executed via Linkage under the Plan as a P/A Order. The purpose of this proposal is to continue to alleviate the potential economic burden of multiple transaction charges imposed on Exchange specialist units by establishing a credit for Exchange option transaction charges incurred by an Exchange specialist unit when a customer limit order placed on the limit order book by a Floor Broker 10 results in an execution of a P/A Order that is sent to another exchange via Linkage. The Exchange believes that continuing to give an options transaction charge credit of $0.21 per contract should encourage the use of Linkage and should allow the Exchange to remain competitive with other exchanges with respect to the assessment of Linkagerelated fees.11 This proposal is to remain in effect as a pilot program until July 31, 2008.12 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act 13 in general, and Section 6(b)(4) of the Act 14 in 10 A Floor Broker who wishes to place a limit order on the limit orderbook must submit such a limit order electronically through the FBMS. See Exchange Rule 1063, Commentary .01. See also Phlx Rule 1080, Commentary .02(b). 11 See Securities Exchange Act Release No. 53866 (May 25, 2006), 71 FR 31237 (June 1, 2006) (SR– CBOE–2006–44) (rebate of certain transaction fees to Designated Primary Market Makers related to the execution of outbound P Orders and P/A Orders). See also Footnote 8 and Section 21 of the CBOE Fees Schedule. 12 This proposal is in connection with an existing pilot program forLinkage P and P/A Orders and is scheduled to be in effect for the same time period as the pilot program for Linkage P and P/A Orders. See supra at note 9. 13 15 U.S.C. 78f(b). 14 15 U.S.C. 78f(b)(4). E:\FR\FM\25JYN1.SGM 25JYN1 Federal Register / Vol. 72, No. 142 / Wednesday, July 25, 2007 / Notices particular, in that it is an equitable allocation of reasonable dues, 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. 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 foregoing proposed rule change has been designated as a fee change pursuant to Section 19(b)(3)(A)(ii) of the Act 15 and Rule 19b–4(f)(2) 16 thereunder, because it establishes or changes a due, fee, or other charge applicable only to a member. Accordingly, the proposal became effective upon filing with the Commission. 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 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 rwilkins on PROD1PC63 with NOTICES Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. 16 17 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.17 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–14357 Filed 7–24–07; 8:45 am] BILLING CODE 8010–01–P DEPARTMENT OF TRANSPORTATION Federal Highway Administration • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–Phlx–2007–50 on the subject line. 15 15 All submissions should refer to File Number SR–Phlx–2007–50. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such 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 Number SR–Phlx–2007–50 and should be submitted on or before August 15, 2007. Environmental Impact Statement; Buncombe County, NC Federal Highway Administration (FHWA), DOT. ACTION: Notice of Intent. AGENCY: SUMMARY: The FHWA is issuing this notice to advise the public that an environmental impact statement will be prepared for the proposed extension of I–26 from I–40 to US 19–23–70, including widening I–240 from the I–26/I–40/I–240 interchange to US 19– 23–74 (Patton Avenue), and U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). VerDate Aug<31>2005 19:31 Jul 24, 2007 17 17 Jkt 211001 PO 00000 CFR 200.30–3(a)(12). Frm 00097 Fmt 4703 Sfmt 4703 40921 construction on new location from US 19–23–74 (Patton Avenue) across the French Broad River to US 19–23–70 in Buncombe County, North Carolina. FOR FURTHER INFORMATION CONTACT: Clarence W. Coleman, P.E., Operations Engineer, Federal Highway Administration, 310 New Bern Avenue, Suite 410, Raleigh, North Carolina 27601–1418, Telephone: (919) 856– 4350, Extension 133. SUPPLEMENTARY INFORMATION: The FHWA, in cooperation with the North Carolina Department of Transportation (NCDOT), will prepare an environmental impact statement (EIS) on a proposal for extending I–26, partly on new location, from I–40 to US 19– 23–70 including the I–26/I–40/I–240 interchange. The project is commonly referred to as the I–26 Connector and is intended to provide a link between existing I–26 and US 19–23–70 north of Asheville, completing a gap in the I–26 corridor through Asheville. The project includes upgrading the I–26/I–40/I–240 interchange and improving I–240 (including the interchanges) north to the I–240/US 19–23–74A/Patton Avenue interchange west of the French Broad River. The project also includes construction of a multilane freeway segment on new location from the I– 240/US 19–23–74A/Patton Avenue interchange across the French Broad River, merging into US 19–23–70 south of the existing US 19–23–70 interchange with SR 1781 (Broadway). Improvements to the corridor are considered necessary to provide for the existing and projected traffic demand and improve connectivity between I–26 south of Asheville and US 19–23–70 north of Asheville. In addition, upgrades are needed on existing interstates within the study area to meet current design standards. Opportunities have been provided for involvement with the public in defining the project purpose and need and determining the range of alternatives to be considered for the project. Further opportunities for the public to comment on the environmental review process will be provided throughout the remainder of the project development process. From 1989 to 1995, the I–26 Connector was studied as part of the Asheville Urban Area Corridor Preservation Pilot Project in order to develop the Asheville Urban Area Thoroughfare Plan, a long-range regional transportation plan. Extensive public involvement was incorporated to identify overall transportation goals, specific projects in the Asheville area that would fulfill those goals (which identified the I–26 Connector as one of E:\FR\FM\25JYN1.SGM 25JYN1

Agencies

[Federal Register Volume 72, Number 142 (Wednesday, July 25, 2007)]
[Notices]
[Pages 40920-40921]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-14357]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56101; File No. SR-Phlx-2007-50]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating To Extending the Specialist Option Transaction Charge Credit 
Pilot Program

July 19, 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 June 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 
Exchange. Phlx has designated this proposal as one establishing or 
changing a due, fee, or other charge imposed by the Exchange 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Phlx proposes to extend for a one-year period, until July 31, 2008, 
its current pilot program that provides for an option transaction 
charge credit of $0.21 per contract for Exchange options specialist 
units \5\ that incur Phlx option transaction charges when a customer 
order is delivered to the limit order book via the Exchange's Options 
Floor Broker Management System (``FBMS'') \6\ and is then sent to an 
away market and executed via the Intermarket Option Linkage 
(``Linkage'') under the Plan for the Purpose of Creating and Operating 
an Intermarket Option Linkage (``Plan'') \7\ as a Principal Acting as 
Agent Order (``P/A Order'').\8\ The pilot program in effect is 
currently scheduled to expire on July 31, 2007.\9\ The text of the 
proposed rule change is available at the Exchange, the Commission's 
Public Reference Room, and http://www.phlx.com.
---------------------------------------------------------------------------

    \5\ The terms ``specialist'' and ``specialist unit'' are used 
interchangeably herein.
    \6\ The FBMS is designed to enable Floor Brokers and/or their 
employeesto enter, route and report transactions stemming from 
options orders received on the Exchange. The FBMS also is designed 
to establish an electronic audit trail for options orders 
represented and executed by Floor Brokers on the Exchange, such that 
the audit trail provides an accurate, time-sequenced record of 
electronic and other orders, quotations and transactions on the 
Exchange, beginning with the receipt of an order by the Exchange, 
and further documenting the life of the order through the process of 
execution, partial execution, or cancellation of that order. See 
Phlx Rule 1080, Commentary .06.
    \7\ See Securities Exchange Act Release Nos. 43086 (July 28, 
2000), 65 FR 48023 (August 4, 2000) and 43573 (November 16, 2000), 
65 FR 70851 (November 28, 2000) (order approving Phlx as a 
participant in the Plan).
    \8\ A P/A order is an order for the principal account of a 
specialist (orequivalent entity on another participant exchange that 
is authorized to represent public customer orders), reflecting the 
terms of a related unexecuted public customer order for which the 
specialist is acting as agent. See Phlx Rule 1083(k)(i).
    \9\ See Securities Exchange Act Release No. 54257 (August 1, 
2006), 71 FR 45089 (August 8, 2006) (SR-Phlx-2006-46). This proposal 
is scheduled to be in effect for the same time period as fees for 
Linkage Principal Orders (``P Orders'') and P/A Orders. See 
Securities Exchange Act Release No. 54233 (July 27, 2006), 71 FR 
44070 (August 3, 2006) (SR-Phlx-2006-44). The Exchange intends to 
file a separate proposed rule change to extend, for a one-year 
period through July 31, 2008, the pilot relating to transaction fees 
applicable to the execution of P/A Orders and P Orders sent to the 
Exchange via Linkage under the Plan.
---------------------------------------------------------------------------

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 Exchange has substantially 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, the Exchange provides an option transaction charge 
credit of $0.21 per contract for Exchange options specialist units that 
incur Phlx option transaction charges when a customer order is 
delivered to the limit order book via FBMS and is then sent to an away 
market and executed via Linkage under the Plan as a P/A Order.
    The purpose of this proposal is to continue to alleviate the 
potential economic burden of multiple transaction charges imposed on 
Exchange specialist units by establishing a credit for Exchange option 
transaction charges incurred by an Exchange specialist unit when a 
customer limit order placed on the limit order book by a Floor Broker 
\10\ results in an execution of a P/A Order that is sent to another 
exchange via Linkage. The Exchange believes that continuing to give an 
options transaction charge credit of $0.21 per contract should 
encourage the use of Linkage and should allow the Exchange to remain 
competitive with other exchanges with respect to the assessment of 
Linkage-related fees.\11\
---------------------------------------------------------------------------

    \10\ A Floor Broker who wishes to place a limit order on the 
limit orderbook must submit such a limit order electronically 
through the FBMS. See Exchange Rule 1063, Commentary .01. See also 
Phlx Rule 1080, Commentary .02(b).
    \11\ See Securities Exchange Act Release No. 53866 (May 25, 
2006), 71 FR 31237 (June 1, 2006) (SR-CBOE-2006-44) (rebate of 
certain transaction fees to Designated Primary Market Makers related 
to the execution of outbound P Orders and P/A Orders). See also 
Footnote 8 and Section 21 of the CBOE Fees Schedule.
---------------------------------------------------------------------------

    This proposal is to remain in effect as a pilot program until July 
31, 2008.\12\
---------------------------------------------------------------------------

    \12\ This proposal is in connection with an existing pilot 
program forLinkage P and P/A Orders and is scheduled to be in effect 
for the same time period as the pilot program for Linkage P and P/A 
Orders. See supra at note 9.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \13\ in general, and Section 6(b)(4) of 
the Act \14\ in

[[Page 40921]]

particular, in that it is an equitable allocation of reasonable dues, 
fees, and other charges among Exchange members.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b).
    \14\ 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.

III. Date of Effectiveness of the Proposed Rule Change and Timing For 
Commission Action

    The foregoing proposed rule change has been designated as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \15\ and Rule 
19b-4(f)(2) \16\ thereunder, because it establishes or changes a due, 
fee, or other charge applicable only to a member. Accordingly, the 
proposal became effective upon filing with the Commission. 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 or appropriate in the public 
interest, for the protection of investors, or otherwise in furtherance 
of the purposes of the Act.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \16\ 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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-Phlx-2007-50 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-2007-50. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Room, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of such 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 Number SR-Phlx-2007-50 and should be 
submitted on or before August 15, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

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

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-14357 Filed 7-24-07; 8:45 am]
BILLING CODE 8010-01-P