Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, Relating to Fees for U.S. Dollar-Settled Foreign Currency Options, 52191-52192 [E7-17959]

Download as PDF Federal Register / Vol. 72, No. 176 / Wednesday, September 12, 2007 / Notices For the Commission, by the Division of Market Regulation, pursuant to delegated authority.18 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–17947 Filed 9–11–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56360; File No. SR–Phlx– 2007–61] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, Relating to Fees for U.S. Dollar-Settled Foreign Currency Options September 6, 2007. jlentini on PROD1PC65 with NOTICES Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on August 15, 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. On August 30, 2007, the Exchange filed Amendment No. 1 to the proposed rule change. The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Phlx proposes to amend its Summary of Index Option and U.S. Dollar-Settled Foreign Currency Option Charges (‘‘Fee Schedule’’) to cap U.S. dollar-settled foreign currency option transaction charges applicable to customer executions at 10,000 contracts per trade per side. Specifically, on the Exchange’s Fee Schedule, the option transaction charge applicable to customer executions for U.S. dollarsettled foreign currency option transactions would be amended to add the following: Subject to a maximum charge of $4,000 per trade per side for U.S. dollar-settled foreign currency transactions. This change reflects the proposed 10,000 contract cap multiplied by the current $.40 per contract charge. This proposal is scheduled to become 18 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Aug<31>2005 18:43 Sep 11, 2007 Jkt 211001 effective for trades settling on or after August 16, 2007. The text of the proposed rule change is available on the Exchange’s Web site at https://www.Phlx.com/exchange/ phlx_rule_fil.html, at the Exchange, 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 The purpose of this proposal is to raise revenue by attracting to the Exchange large U.S. dollar-settled foreign currency option trades. By adopting a maximum option transaction charge of $4,000 per trade per side as described above, the Exchange believes that additional order flow may be directed to the Exchange. Specifically, the Exchange seeks to increase the number of U.S. dollar-settled foreign currency option customer transactions on the Exchange. The Exchange began trading U.S. dollar-settled foreign currency options in January 2007 and seeks to increase business in this product line.3 2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6(b) of the Act,4 in general, and furthers the objectives of Section 6(b)(4) of the Act,5 in particular, in that it is an equitable allocation of reasonable fees and other charges among Exchange members. The Exchange believes that it is equitable to apply the proposed cap on customer U.S. dollarsettled foreign currency option transaction charges because once the cap is reached, no additional option 3 See Securities Exchange Act Release Nos. 54989 (December 21, 2006), 71 FR 78506 (December 29, 2006) (SR–Phlx–2006–34) and 56034 (July 10, 2007), 72 FR 38853 (July 16, 2007) (SR–Phlx–2007– 34). 4 15 U.S.C. 78f(b). 5 15 U.S.C. 78f(b)(4). PO 00000 Frm 00147 Fmt 4703 Sfmt 4703 52191 transaction charges would be assessed on these types of transactions, which should, in turn, promote this type of business at the Exchange.6 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 Because the foregoing rule change establishes or changes a due, fee, or other charge imposed by the Exchange, it has become effective pursuant to Section 19(b)(3)(A) of the Act 7 and Rule 19b–4(f)(2) 8 thereunder. 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.9 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 No. SR–Phlx–2007–61 on the subject line. 6 Similarly, the Exchange does not charge customer option comparison charges on customer executions pursuant to the Exchange’s Summary of Equity Option and RUT and RMN Charges. 7 15 U.S.C. 78s(b)(3)(A). 8 17 CFR 19b–4(f)(2). 9 For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change, the Commission considers the period to commence on August 30, 2007, the date on which the Exchange filed Amendment No. 1. E:\FR\FM\12SEN1.SGM 12SEN1 52192 Federal Register / Vol. 72, No. 176 / Wednesday, September 12, 2007 / Notices Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56361; File No. SR–Phlx– 2007–66] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate All submissions should refer to File Effectiveness of Proposed Rule Number SR–Phlx–2007–61. This file Change Relating to Deletion of the number should be included on the subject line if e-mail is used. To help the NMS Linkage Fee Commission process and review your September 6, 2007. comments more efficiently, please use Pursuant to Section 19(b)(1) of the only one method. The Commission will Securities Exchange Act of 1934 post all comments on the Commission’s (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Internet Web site (https://www.sec.gov/ notice is hereby given that on August rules/sro.shtml). Copies of the 30, 2007, the Philadelphia Stock submission, all subsequent Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) amendments, all written statements filed with the Securities and Exchange with respect to the proposed rule Commission (‘‘Commission’’) the change that are filed with the proposed rule change as described in Commission, and all written Items I, II, and III, below, which Items communications relating to the have been substantially prepared by the proposed rule change between the Phlx. The Commission is publishing Commission and any person, other than this notice to solicit comments on the proposed rule change from interested those that may be withheld from the persons. public in accordance with the provisions of 5 U.S.C. 552, will be I. Self-Regulatory Organization’s available for inspection and copying in Statement of the Terms of Substance of the Commission’s Public Reference the Proposed Rule Change Room, 100 F Street, NE., Washington, The Phlx proposes to eliminate from DC 20549, on official business days the XLE Fee Schedule: (1) the execution between the hours of 10 a.m. and 3 p.m. fee for incoming NMS Linkage Orders; Copies of such filing also will be and (2) another reference to NMS available for inspection and copying at Linkage Orders that appears in a the principal office of the Phlx. All footnote. The text of the proposed rule comments received will be posted change is available on the Exchange’s without change; the Commission does Web site at https://www.Phlx.com. not edit personal identifying II. Self-Regulatory Organization’s information from submissions. You Statement of the Purpose of, and should submit only information that you wish to make available publicly. All Statutory Basis for, the Proposed Rule Change submissions should refer to File Number SR–Phlx–2007–61 and should In its filing with the Commission, the be submitted on or before October 3, Phlx included statements concerning the purpose of and basis for the 2007. proposed rule change and discussed any For the Commission, by the Division of comments it received on the proposed Market Regulation, pursuant to delegated rule change. The text of these statements 10 authority. may be examined at the places specified Florence E. Harmon, in Item IV below. The Phlx has prepared Deputy Secretary. summaries, set forth in sections A, B, [FR Doc. E7–17959 Filed 9–11–07; 8:45 am] and C below, of the most significant aspects of such statements. BILLING CODE 8010–01–P A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change jlentini on PROD1PC65 with NOTICES 1. Purpose The purpose of the proposed rule change is to delete a fee that is no longer applicable due to the termination of the 1 15 10 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 18:43 Sep 11, 2007 2 17 Jkt 211001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00148 Fmt 4703 Sfmt 4703 NMS Linkage Plan (‘‘Plan’’).3 The Plan was utilized by certain exchanges, including Phlx, for the purpose of routing and receiving orders in NMS Stocks. The Plan ended by its own terms on June 30, 2007.4 Phlx had imposed a fee on incoming NMS Linkage Orders of $0.003 per share executed on XLE. Since the end of the Plan, this fee is no longer applicable and Phlx proposes deleting it from the XLE Fee Schedule. In addition, Phlx proposes deleting a reference to ‘‘liquidity provided by NMS Linkage Orders’’ in footnote 2 of the XLE Fee Schedule. With the termination of the Plan, there will be no more orders sent to Phlx over NMS Linkage and therefore no liquidity provided by NMS Linkage Orders. 2. Statutory Basis The Exchange believes that its proposal to amend its schedule of fees is consistent with Section 6(b) of the Act 5 in general, and furthers the objectives of Section 6(b)(4) of the Act 6 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. 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 rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act 7 and paragraph (f)(2) of Rule 19b–4 8 thereunder, because it establishes or changes a due, fee, or other charge imposed by the Exchange. 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, 3 See Securities Exchange Act No. 54551 (September 29, 2006), 71 FR 59148 (October 6, 2006). 4 See id. 5 5 U.S.C. 78f(b). 6 15 U.S.C. 78f(b)(4). 7 15 U.S.C. 78s(b)(3)(A)(ii). 8 17 CFR 240.19b–4(f)(2). E:\FR\FM\12SEN1.SGM 12SEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 72, Number 176 (Wednesday, September 12, 2007)]
[Notices]
[Pages 52191-52192]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-17959]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56360; File No. SR-Phlx-2007-61]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change, 
as Modified by Amendment No. 1 Thereto, Relating to Fees for U.S. 
Dollar-Settled Foreign Currency Options

 September 6, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on August 15, 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. On August 30, 2007, the Exchange filed Amendment 
No. 1 to the proposed rule change. The Commission is publishing this 
notice to solicit comments on the proposed rule change, as amended, 
from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Phlx proposes to amend its Summary of Index Option and U.S. 
Dollar-Settled Foreign Currency Option Charges (``Fee Schedule'') to 
cap U.S. dollar-settled foreign currency option transaction charges 
applicable to customer executions at 10,000 contracts per trade per 
side. Specifically, on the Exchange's Fee Schedule, the option 
transaction charge applicable to customer executions for U.S. dollar-
settled foreign currency option transactions would be amended to add 
the following: Subject to a maximum charge of $4,000 per trade per side 
for U.S. dollar-settled foreign currency transactions. This change 
reflects the proposed 10,000 contract cap multiplied by the current 
$.40 per contract charge. This proposal is scheduled to become 
effective for trades settling on or after August 16, 2007.
    The text of the proposed rule change is available on the Exchange's 
Web site at https://www.Phlx.com/exchange/phlx--rule--fil.html, at the 
Exchange, 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
    The purpose of this proposal is to raise revenue by attracting to 
the Exchange large U.S. dollar-settled foreign currency option trades. 
By adopting a maximum option transaction charge of $4,000 per trade per 
side as described above, the Exchange believes that additional order 
flow may be directed to the Exchange. Specifically, the Exchange seeks 
to increase the number of U.S. dollar-settled foreign currency option 
customer transactions on the Exchange. The Exchange began trading U.S. 
dollar-settled foreign currency options in January 2007 and seeks to 
increase business in this product line.\3\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release Nos. 54989 (December 21, 
2006), 71 FR 78506 (December 29, 2006) (SR-Phlx-2006-34) and 56034 
(July 10, 2007), 72 FR 38853 (July 16, 2007) (SR-Phlx-2007-34).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule 
is consistent with Section 6(b) of the Act,\4\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act,\5\ in particular, in that 
it is an equitable allocation of reasonable fees and other charges 
among Exchange members. The Exchange believes that it is equitable to 
apply the proposed cap on customer U.S. dollar-settled foreign currency 
option transaction charges because once the cap is reached, no 
additional option transaction charges would be assessed on these types 
of transactions, which should, in turn, promote this type of business 
at the Exchange.\6\
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
    \6\ Similarly, the Exchange does not charge customer option 
comparison charges on customer executions pursuant to the Exchange's 
Summary of Equity Option and RUT and RMN Charges.
---------------------------------------------------------------------------

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

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by the Exchange, it has become effective 
pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(2) \8\ 
thereunder. 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.\9\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 19b-4(f)(2).
    \9\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change, the 
Commission considers the period to commence on August 30, 2007, the 
date on which the Exchange filed Amendment No. 1.
---------------------------------------------------------------------------

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 No. SR-Phlx-2007-61 on the subject line.

[[Page 52192]]

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

    All submissions should refer to File Number SR-Phlx-2007-61. 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, 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 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-2007-61 and should be 
submitted on or before October 3, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-17959 Filed 9-11-07; 8:45 am]
BILLING CODE 8010-01-P

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