Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 3, Relating to the Definition of “Complex Trade”, 57985-57986 [E7-19937]

Download as PDF Federal Register / Vol. 72, No. 196 / Thursday, October 11, 2007 / Notices 57985 SECURITIES AND EXCHANGE COMMISSION Public Reference Room, and http:// www.phlx.com. definition proposed by other Linkage Plan Participants.8 [Release No. 34–56608; File No. SR–Phlx– 2007–40] II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change Synthetic Option Order Currently, Rule 1066(g), ‘‘Synthetic Option,’’ defines a ‘‘synthetic option order’’ as an order to buy or sell a stated number of option contracts and buy or sell the underlying stock or ExchangeTraded Fund Share in an amount that would offset (on a one-for-one basis) the option position. The proposed rule change would redefine ‘‘synthetic option order’’ to mean an order to buy or sell a stated number of units of an underlying stock or a security convertible into the underlying stock (‘‘convertible security’’) coupled with either (i) the purchase or sale of option contract(s) on the opposite side of the market representing either the same number of units of the underlying stock or convertible security or the number of units of the underlying stock or convertible security necessary to create a delta neutral position; or (ii) the purchase or sale of an equal number of put and call option contracts, each having the same exercise price, expiration date, and each representing the same number of units of stock as, and on the opposite side of the market from, the stock or convertible security portion of the order. Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 3, Relating to the Definition of ‘‘Complex Trade’’ October 3, 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 May 21, 2007, the Philadelphia Stock Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change as described in Items I, II, and III below, which Items have been prepared substantially by the Phlx. The Exchange filed Amendment No. 1 to the proposal on September 4, 2007, and withdrew Amendment No. 1 on October 1, 2007. The Exchange filed Amendment Nos. 2 and 3 to the proposal on October 1, 2007, and withdrew Amendment No. 2 on the same day.3 The Commission is publishing this notice to solicit comments on the proposed rule change, as modified by Amendment No. 3, 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 Rule 1066, ‘‘Certain Types of Orders Defined,’’ to revise the definition of ‘‘synthetic option,’’ and to amend Phlx Rule 1083(c) to change the definition of ‘‘Complex Trade’’ as it relates to the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage (the ‘‘Linkage Plan’’).4 The text of the proposed rule change is available at Phlx, the Commission’s 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Amendment No. 3 replaces and supersedes the previously filed proposed rule change in its entirety. 4 On July 28, 2000, the Commission approved a national market system plan for the purpose of creating and operating the Linkage proposed by the American Stock Exchange LLC, Chicago Board Options Exchange, Incorporated, and International Securities Exchange, LLC (‘‘ISE’’). See Securities Exchange Act Release No. 43086 (July 28, 2000), 65 FR 48023 (August 4, 2000). Subsequently, Phlx, Pacific Exchange, Inc. (n/k/a NYSE Arca, Inc.), and Boston Stock Exchange, Inc. joined the Linkage Plan. See Securities Exchange Act Release Nos. 43573 (November 16, 2000), 65 FR 70851 (November 28, 2000); 43574 (November 16, 2000), 65 FR 70850 (November 28, 2000); and 49198 (February 5, 2004), 69 FR 7029 (February 12, 2004). rwilkins on PROD1PC63 with NOTICES 2 17 VerDate Aug<31>2005 16:09 Oct 10, 2007 Jkt 214001 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, first, to amend Phlx Rule 1066(g) by adopting a new definition of ‘‘synthetic option order’’ to address strategies for synthetic option orders that often require a delta neutral position among the various components of the synthetic option order instead of the current requirement that such components offset one another on a onefor-one basis. The proposed definition is consistent with the definition of ‘‘stockoption order’’ adopted by other U.S. options exchanges.5 A further purpose of the proposed rule change is to add a certain type of synthetic option order (as described more fully below) to the definition of ‘‘Complex Trade’’ in Phlx Rule 1083 so that such an order that resulted in a Trade-Through 6 would qualify for an exception to TradeThrough and Satisfaction Order 7 liability under the Exchange’s Rules and for purposes of the Linkage Plan. The proposed changes to the definition of ‘‘Complex Trade’’ in Phlx Rule 1083 conform the Phlx’s proposed definition of ‘‘Complex Trade’’ to the revised 5 See, e.g., ISE Rule 722(a)(5)(i). means a transaction in an options series at a price that is inferior to the National Best Bid or Offer (‘‘NBBO’’), but shall not include a transaction that occurs at a price that is one minimum quoting increment inferior to the NBBO provided a Linkage Order is contemporaneously sent to each Participant Exchange disseminating the NBBO for the full size of the Participant Exchange’s bid (offer) that represents the NBBO. See Phlx Rule 1083(t). 7 A Satisfaction Order is an order sent through the Linkage to notify a member of another Participant Exchange of a Trade-Through and to seek satisfaction of the liability arising from that TradeThrough. See Phlx Rule 1083(k)(iii). 6 ‘‘Trade-Through’’ PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 Complex Trade The proposal would also amend Phlx Rule 1083 to revise the definition of ‘‘Complex Trade’’ for purposes of the Linkage Plan, which provides an exception to Trade-Through and Satisfaction Order liability when the transaction that caused the TradeThrough was the result of a ‘‘Complex Trade.’’ 9 Specifically, the Exchange proposes first to modify the portion of the definition of ‘‘Complex Trade’’ that deals with ratio spreads to mean the execution of an order in an options series in conjunction with the execution of one or more related orders(s) in different options series in the same underlying security occurring at or near the same time in a ratio that is equal to or greater than one-to-three (.333) and less than or equal to three-to-one (3.0) and for the purpose of executing a particular investment strategy. Secondly, the Exchange proposes to include a certain limited type of 8 See Securities Exchange Act Release No. 56555 (September 27, 2007) (File Nos. SR–Amex–2007–65; SR–BSE–2007–45; SR–CBOE–2007–64; SR–ISE– 2007–44; and SR–NYSEArca–2007–65). 9 See Phlx Rule 1085(b)(7). The Exchange notes that the other Participants in the Linkage Plan have filed proposed rule changes to adopt the same definition of ‘‘Complex Trade.’’ See supra, note 8. E:\FR\FM\11OCN1.SGM 11OCN1 57986 Federal Register / Vol. 72, No. 196 / Thursday, October 11, 2007 / Notices synthetic option order in the definition of Complex Trade to afford an exception from Trade-Through liability in the case of the execution of a synthetic option order 10 to buy or sell a stated number of units of an underlying stock or a security convertible into the underlying stock (‘‘convertible security’’), coupled with the purchase or sale of option contract(s) on the opposite side of the market representing either (A) the same number of units of the underlying stock or convertible security; or (B) the number of units of the underlying stock or convertible security necessary to create a delta neutral position, but in no case in a ratio greater than eight (8) option contracts per unit of trading of the underlying stock or convertible security established for that series by the Clearing Corporation. The Exchange believes that the proposed rule change should provide consistency in the Exchange’s rules with rules proposed by the other Linkage Plan Participants. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,11 in general, and furthers the objectives of Section 6(b)(5) of the Act,12 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 modernizing the Exchange’s rules. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange believes that the proposed rule change will not 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. rwilkins on PROD1PC63 with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the Federal Register or within such longer period (i) 10 The proposed text of Phlx Rule 1083(c)(ii) refers to ‘‘stock-option orders’’ as synonymous with ‘‘synthetic option orders’’ in order to be consistent with the definitions proposed by the other Linkage Plan Participants. 11 15 U.S.C. 78f(b). 12 15 U.S.C. 78f(b)(5). VerDate Aug<31>2005 16:09 Oct 10, 2007 Jkt 214001 as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which Phlx consents, the Commission will: (A) By order approve such proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. 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 rulecomments@sec.gov. Please include File Number SR–Phlx–2007–40 on the subject line. should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–Phlx–2007–40 and should be submitted on or before November 1, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Nancy M. Morris, Secretary. [FR Doc. E7–19937 Filed 10–10–07; 8:45 am] BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration # 11055 and # 11056] Texas Disaster # TX–00265 U.S. Small Business Administration. ACTION: Notice. AGENCY: SUMMARY: This is a Notice of the Presidential declaration of a major disaster for the State of Texas (FEMA– 1730–DR), dated 10/02/2007. Incident: Tropical Storm Erin. Paper Comments Incident Period: 08/14/2007 through • Send paper comments in triplicate 08/20/2007. to Nancy M. Morris, Secretary, Effective Date: 10/02/2007. Securities and Exchange Commission, Physical Damage Loan Application 100 F Street, NE., Washington, DC Deadline Date: 12/03/2007. 20549–1090. Economic Injury (EIDL) Loan All submissions should refer to File Application Deadline Date: 07/02/2008. Number SR–Phlx–2007–40. This file ADDRESSES: Submit completed loan number should be included on the subject line if e-mail is used. To help the applications to: U.S. Small Business Administration, Processing and Commission process and review your Disbursement Center, 14925 Kingsport comments more efficiently, please use only one method. The Commission will Road, Fort Worth, TX 76155. post all comments on the Commission’s FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, Internet Web site (http://www.sec.gov/ U.S. Small Business Administration, rules/sro.shtml). Copies of the 409 3rd Street, SW., Suite 6050, submission, all subsequent Washington, DC 20416. amendments, all written statements with respect to the proposed rule SUPPLEMENTARY INFORMATION: Notice is change that are filed with the hereby given that as a result of the Commission, and all written President’s major disaster declaration on communications relating to the 10/02/2007, applications for disaster proposed rule change between the loans may be filed at the address listed Commission and any person, other than above or other locally announced those that may be withheld from the locations. The following areas have been public in accordance with the determined to be adversely affected by provisions of 5 U.S.C. 552, will be the disaster: available for inspection and copying in Primary Counties (Physical Damage and the Commission’s Public Reference Economic Injury Loans): Bexar: Room, 100 F Street, NE., Washington, Harris, Jones, Kendall, Medina, DC 20549, on official business days Taylor. between the hours of 10 am and 3 pm. Contiguous Counties (Economic Injury Copies of the filing also will be available Loans Only): for inspection and copying at the Texas: Atascosa, Bandera, Blanco, principal office of the Phlx. All Brazoria, Callahan, Chambers, comments received will be posted Coleman, Comal, Fisher, Fort Bend, without change; the Commission does Frio, Galveston, Gillespie, not edit personal identifying 13 17 CFR 200.30–3(a)(12). information from submissions. You PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 E:\FR\FM\11OCN1.SGM 11OCN1

Agencies

[Federal Register Volume 72, Number 196 (Thursday, October 11, 2007)]
[Notices]
[Pages 57985-57986]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-19937]



[[Page 57985]]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56608; File No. SR-Phlx-2007-40]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 
3, Relating to the Definition of ``Complex Trade''

October 3, 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 May 21, 2007, the Philadelphia Stock Exchange, Inc. (``Phlx'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') a proposed rule change as described in Items I, II, 
and III below, which Items have been prepared substantially by the 
Phlx. The Exchange filed Amendment No. 1 to the proposal on September 
4, 2007, and withdrew Amendment No. 1 on October 1, 2007. The Exchange 
filed Amendment Nos. 2 and 3 to the proposal on October 1, 2007, and 
withdrew Amendment No. 2 on the same day.\3\ The Commission is 
publishing this notice to solicit comments on the proposed rule change, 
as modified by Amendment No. 3, from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 3 replaces and supersedes the previously filed 
proposed rule change in its entirety.
---------------------------------------------------------------------------

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

    The Phlx proposes to amend Phlx Rule 1066, ``Certain Types of 
Orders Defined,'' to revise the definition of ``synthetic option,'' and 
to amend Phlx Rule 1083(c) to change the definition of ``Complex 
Trade'' as it relates to the Plan for the Purpose of Creating and 
Operating an Intermarket Option Linkage (the ``Linkage Plan'').\4\
---------------------------------------------------------------------------

    \4\ On July 28, 2000, the Commission approved a national market 
system plan for the purpose of creating and operating the Linkage 
proposed by the American Stock Exchange LLC, Chicago Board Options 
Exchange, Incorporated, and International Securities Exchange, LLC 
(``ISE''). See Securities Exchange Act Release No. 43086 (July 28, 
2000), 65 FR 48023 (August 4, 2000). Subsequently, Phlx, Pacific 
Exchange, Inc. (n/k/a NYSE Arca, Inc.), and Boston Stock Exchange, 
Inc. joined the Linkage Plan. See Securities Exchange Act Release 
Nos. 43573 (November 16, 2000), 65 FR 70851 (November 28, 2000); 
43574 (November 16, 2000), 65 FR 70850 (November 28, 2000); and 
49198 (February 5, 2004), 69 FR 7029 (February 12, 2004).
---------------------------------------------------------------------------

    The text of the proposed rule change is available at Phlx, 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 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, first, to amend Phlx 
Rule 1066(g) by adopting a new definition of ``synthetic option order'' 
to address strategies for synthetic option orders that often require a 
delta neutral position among the various components of the synthetic 
option order instead of the current requirement that such components 
offset one another on a one-for-one basis. The proposed definition is 
consistent with the definition of ``stock-option order'' adopted by 
other U.S. options exchanges.\5\ A further purpose of the proposed rule 
change is to add a certain type of synthetic option order (as described 
more fully below) to the definition of ``Complex Trade'' in Phlx Rule 
1083 so that such an order that resulted in a Trade-Through \6\ would 
qualify for an exception to Trade-Through and Satisfaction Order \7\ 
liability under the Exchange's Rules and for purposes of the Linkage 
Plan. The proposed changes to the definition of ``Complex Trade'' in 
Phlx Rule 1083 conform the Phlx's proposed definition of ``Complex 
Trade'' to the revised definition proposed by other Linkage Plan 
Participants.\8\
---------------------------------------------------------------------------

    \5\ See, e.g., ISE Rule 722(a)(5)(i).
    \6\ ``Trade-Through'' means a transaction in an options series 
at a price that is inferior to the National Best Bid or Offer 
(``NBBO''), but shall not include a transaction that occurs at a 
price that is one minimum quoting increment inferior to the NBBO 
provided a Linkage Order is contemporaneously sent to each 
Participant Exchange disseminating the NBBO for the full size of the 
Participant Exchange's bid (offer) that represents the NBBO. See 
Phlx Rule 1083(t).
    \7\ A Satisfaction Order is an order sent through the Linkage to 
notify a member of another Participant Exchange of a Trade-Through 
and to seek satisfaction of the liability arising from that Trade-
Through. See Phlx Rule 1083(k)(iii).
    \8\ See Securities Exchange Act Release No. 56555 (September 27, 
2007) (File Nos. SR-Amex-2007-65; SR-BSE-2007-45; SR-CBOE-2007-64; 
SR-ISE-2007-44; and SR-NYSEArca-2007-65).
---------------------------------------------------------------------------

Synthetic Option Order
    Currently, Rule 1066(g), ``Synthetic Option,'' defines a 
``synthetic option order'' as an order to buy or sell a stated number 
of option contracts and buy or sell the underlying stock or Exchange-
Traded Fund Share in an amount that would offset (on a one-for-one 
basis) the option position.
    The proposed rule change would re-define ``synthetic option order'' 
to mean an order to buy or sell a stated number of units of an 
underlying stock or a security convertible into the underlying stock 
(``convertible security'') coupled with either (i) the purchase or sale 
of option contract(s) on the opposite side of the market representing 
either the same number of units of the underlying stock or convertible 
security or the number of units of the underlying stock or convertible 
security necessary to create a delta neutral position; or (ii) the 
purchase or sale of an equal number of put and call option contracts, 
each having the same exercise price, expiration date, and each 
representing the same number of units of stock as, and on the opposite 
side of the market from, the stock or convertible security portion of 
the order.
Complex Trade
    The proposal would also amend Phlx Rule 1083 to revise the 
definition of ``Complex Trade'' for purposes of the Linkage Plan, which 
provides an exception to Trade-Through and Satisfaction Order liability 
when the transaction that caused the Trade-Through was the result of a 
``Complex Trade.'' \9\
---------------------------------------------------------------------------

    \9\ See Phlx Rule 1085(b)(7). The Exchange notes that the other 
Participants in the Linkage Plan have filed proposed rule changes to 
adopt the same definition of ``Complex Trade.'' See supra, note 8.
---------------------------------------------------------------------------

    Specifically, the Exchange proposes first to modify the portion of 
the definition of ``Complex Trade'' that deals with ratio spreads to 
mean the execution of an order in an options series in conjunction with 
the execution of one or more related orders(s) in different options 
series in the same underlying security occurring at or near the same 
time in a ratio that is equal to or greater than one-to-three (.333) 
and less than or equal to three-to-one (3.0) and for the purpose of 
executing a particular investment strategy.
    Secondly, the Exchange proposes to include a certain limited type 
of

[[Page 57986]]

synthetic option order in the definition of Complex Trade to afford an 
exception from Trade-Through liability in the case of the execution of 
a synthetic option order \10\ to buy or sell a stated number of units 
of an underlying stock or a security convertible into the underlying 
stock (``convertible security''), coupled with the purchase or sale of 
option contract(s) on the opposite side of the market representing 
either (A) the same number of units of the underlying stock or 
convertible security; or (B) the number of units of the underlying 
stock or convertible security necessary to create a delta neutral 
position, but in no case in a ratio greater than eight (8) option 
contracts per unit of trading of the underlying stock or convertible 
security established for that series by the Clearing Corporation.
---------------------------------------------------------------------------

    \10\ The proposed text of Phlx Rule 1083(c)(ii) refers to 
``stock-option orders'' as synonymous with ``synthetic option 
orders'' in order to be consistent with the definitions proposed by 
the other Linkage Plan Participants.
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change should provide 
consistency in the Exchange's rules with rules proposed by the other 
Linkage Plan Participants.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\11\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\12\ 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 modernizing the Exchange's rules.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed rule change will not 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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which Phlx consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

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-2007-40 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-2007-40. 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 
am and 3 pm. 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-2007-40 and should be submitted on 
or before November 1, 2007.


    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
[FR Doc. E7-19937 Filed 10-10-07; 8:45 am]
BILLING CODE 8011-01-P