lf-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Amending Phlx Rule 607, 64266-64268 [E7-22293]

Download as PDF 64266 Federal Register / Vol. 72, No. 220 / Thursday, November 15, 2007 / Notices file number should be included on the subject line if e-mail is used. To help the 25+ to 50 million ........................... 42,000 Commission process and review your in excess of 50 million .................. 55,000 comments more efficiently, please use only one method. The Commissionwill The Annual Fees for Structured post all comments on the Commission’s Products are billed each calendar Internet Web site (http://www.sec.gov/ quarter and are apportioned based on rules/sro.shtml). Copies of the the number of shares outstanding for an submission, all subsequent issue at the end of the preceding amendments, all written statements quarter. While the Exchange imposes a with respect to the proposed rule maximum total fee of $250,000 paid by change that are filed with the an issuer each year, this maximum fee Commission, and all written does not apply to Structured Products. communications relating to the proposed rule change between the 2. Statutory Basis Commission and any person, other than NYSE Arca believes that the proposal those that may be withheld from the is consistent with Section 6(b) of the public in accordance with the Act 4 in general, and Section 6(b)(4) of provisions of 5 U.S.C. 552, will be the Act 5 in particular, in that it provides available for inspection and copying in for the equitable allocation of reasonable the Commission’s Public Reference dues, fees and other charges among its Room, 100 F Street, NE., Washington, issuers and other persons using its DC 20549, on official business days facilities. between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be B. Self-Regulatory Organization’s available for inspection and copying at Statement on Burden on Competition the principal office of the Exchange. All The Exchange does not believe that comments received will be posted the proposed rule change will impose without change; the Commission does any burden on competition that is not not edit personal identifying necessary or appropriate in furtherance information from submissions. You of the purposes of the Act. should submit only information that C. Self-Regulatory Organization’s you wish to make available publicly. All Statement on Comments on the submissions should refer to File Proposed Rule Change Received From Number SR–NYSEArca–2007–87 and Members, Participants, or Others should be submitted on or before December 6, 2007. The Exchange has neither solicited nor received written comments on the For the Commission, by the Division of Market Regulation, pursuant to delegated proposed rule change. Shares outstanding Fee III. 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: authority.6 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–22295 Filed 11–14–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION pwalker on PROD1PC71 with NOTICES 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–NYSEArca–2007–87 on the subject line. [Release No. 34–56750; File No. SR–Phlx– 2007–85] 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–NYSEArca–2007–87. This November 6, 2007. lf-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Amending Phlx Rule 607 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 November 1, 2007, the Philadelphia Stock Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange 6 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 4 15 U.S.C. 78f (b). 5 15 U.S.C. 78f (b)(4). VerDate Aug<31>2005 19:50 Nov 14, 2007 1 15 Jkt 214001 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. 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. 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 Phlx proposes to amend Phlx Rule 607 to remove language regarding the NMS Linkage Plan (‘‘Plan’’). 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, 2007.5 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 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. 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 update Phlx Rule 607 to reflect the termination of the Plan. Phlx Rule 607 permits Phlx to collect the Covered Sale Fee 6 from its members and member organizations. In order to facilitate the collection of the Covered 3 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 5 See Securities Exchange Act No. 54551 (September 29, 2006), 71 FR 59148 (October 6, 2006). 6 Under Section 31 of the Act, the Exchange must pay certain fees to the Commission. To help fund the Exchange’s obligations to the Commission under Section 31, a Covered Sale Fee is assessed by the Exchange on members and member organizations. 4 17 E:\FR\FM\15NON1.SGM 15NON1 Federal Register / Vol. 72, No. 220 / Thursday, November 15, 2007 / Notices Sale Fee, Phlx amended Phlx Rule 607 to permit the Exchange to enter into agreements with other exchanges and with Participants in NASD’s (n/k/a FINRA) Alternative Display Facility (‘‘ADF Participant’’) to pass the Covered Sale Fee among the applicable exchanges or ADF Participants where the Exchange has collected the Covered Sale Fee from its members and member organizations for sale transactions executed on another exchange or ADF Participant through the Plan and when other exchanges or ADF Participants have collected the Covered Sale Fee from their members for sale transactions executed on the Exchange through the Plan.7 With the termination of the Plan, the agreements with the other exchanges and the ADF Participants are no longer needed.8 When the Plan began, certain exchanges and ADF Participants were unable to supply clearing or member information on orders routed through the Plan to other markets and therefore routed orders directly through the Plan without identifying a member or subscriber of the destination market.9 Because no member or subscriber of the destination market was involved in the transaction, there was no mechanism for the destination market to collect the Covered Sale Fee. The agreements provided for in Phlx Rule 607 permitted destination markets to collect the Covered Sale Fee for orders routed through the Plan that did not involve members or subscribers of the destination market. Now that the Plan has terminated, all access to the destination market is provided through members or subscribers, which are subject to the fees charged pursuant to rule or subscriber agreement. Therefore, Phlx proposes to delete that section of Phlx Rule 607 referring to agreements with other exchanges and ADF Participants. Phlx does not intend this deletion to affect any rights or obligations that have accrued to any party up to this point in time pursuant to any such agreements. pwalker on PROD1PC71 with NOTICES 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with 7 See Securities Exchange Act Release No. 54555 (October 2, 2006), 71 FR 59577 (October 10, 2006). 8 See Securities Exchange Act Release Nos. 56361 (September 6, 2007), 72 FR 52192 (September 12, 2007) (SR–Phlx–2007–66, deleting references to the Plan in the XLE Fee Schedule); 55569 (April 2, 2007), 72 FR 17978 (April 10, 2007) (SR–Phlx– 2007–31, deleting references to the Intermarket Trading System (‘‘ITS’’) Plan in Phlx Rule 607, when the ITS Plan terminated.) 9 See Securities Exchange Act Release No. 54548 (September 29, 2006), 71 FR 59159 (October 6, 2006) (footnote 6). VerDate Aug<31>2005 19:50 Nov 14, 2007 Jkt 214001 Section 6(b) of the Act 10 in general and furthers the objectives of Section 6(b)(5) 11 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to, and perfect the mechanism of, a free and open market and a national market system, and in general, to protect investors and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change would result in 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 Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) Impose any significant burden on competition; and (iii) Become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, it has become effective pursuant to Section 19(b)(3)(A) of the Act 12 and Rule 19b–4(f)(6) thereunder.13 As required under Rule 19b–4(f)(6)(iii) under the Act,14 the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of the filing of the proposed rule change. A proposed rule change filed under 19b–4(f)(6) normally may not become operative prior to 30 days after the date of filing.15 However, Rule 19b– 4(f)(6)(iii) 16 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the 10 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 12 15 U.S.C. 78s(b)(3)(A). 13 17 CFR 240.19b–4(f)(6). 14 17 CFR 240.19b–4(f)(6)(iii). 15 Id. 16 Id. 11 15 PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 64267 Commission waive the 30-day operative delay and render the proposed rule change operative immediately. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. Waiver of the 30-day operative delay would enable the Exchange to delete language in Phlx Rule 607 that is no longer needed due to the termination of the Plan as quickly as possible and prevent any potential confusion as to the applicability of this language. For the reasons stated above, the Commission therefore designates the proposal to become operative immediately.17 At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–Phlx–2007–85 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–2007–85. 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 17 For purposes of waiving the operative date of this proposal only, the Commission has considered the impact of the proposed rule on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). E:\FR\FM\15NON1.SGM 15NON1 64268 Federal Register / Vol. 72, No. 220 / Thursday, November 15, 2007 / Notices 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 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–2007–85 and should be submitted on or before December 6, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.18 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–22293 Filed 11–14–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56760; File No. SR–Phlx– 2007–40] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Order Granting Accelerated Approval to a Proposed Rule Change, as Modified by Amendment No. 3, Relating to Complex Orders pwalker on PROD1PC71 with NOTICES November 7, 2007. I. Introduction On May 21, 2007, the Philadelphia Stock Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 a proposed rule change 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 modify the definition of ‘‘Complex Trade’’ as it relates to the Plan for the Purpose of Creating and Operating an Intermarket 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 19:50 Nov 14, 2007 Jkt 214001 Options Linkage (‘‘Linkage Plan’’). 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 No. 2 to the proposal on October 1, 2007, and withdrew Amendment No. 2 on the same day. The Phlx filed Amendment No. 3 to the proposal on October 1, 2007.3 The proposed rule change, as modified by Amendment No. 3, was published for comment in the Federal Register on October 11, 2007.4 The Commission received no comments regarding the proposed rule change, as amended. This order approves the proposed rule change, as modified by Amendment No. 3, on an accelerated basis. II. Description of the Proposal A. Phlx Rule 1066(g) Currently, Phlx Rule 1066(g) defines a ‘‘synthetic option’’ as an order to buy or sell a stated number of option contracts and the underlying stock or ExchangeTraded Fund Share in an amount that would offset the options position on a one-for-one basis. The Phlx proposes to amend Phlx Rule 1066(g) to define a ‘‘synthetic option’’ as 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. The revised definition of ‘‘synthetic option’’ will permit the purchase or sale of options on the opposite side of the market representing the number of units of the underlying stock or convertible security necessary to create a delta neutral position, rather than requiring that the stock and option components of the synthetic option order offset each other on a one-for-one basis. The revised definition is substantially similar to the definition of ‘‘stock-option order’’ 3 Amendment No. 3 replaces and supersedes the original filing and previous amendments in their entirety. 4 See Securities Exchange Act Release No. 56608 (October 3, 2007), 72 FR 57985. PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 adopted by other U.S. options exchanges.5 B. Phlx Rule 1083(c) The Phlx also proposes to amend Phlx Rule 1083(c) to revise the definition of ‘‘Complex Trade’’ for purposes of the Linkage Plan, which provides an exception to Trade-Through 6 liability and Satisfaction Order 7 liability when the transaction that caused the TradeThrough was the result of a Complex Trade. The proposed changes to Phlx Rule 1083(c) are almost identical to changes proposed by the other Linkage Plan Participants,8 which the Commission is approving in a separate order today.9 Specifically, the Phlx proposes to revise Phlx Rule 1083(c) to: (1) Provide that the option orders in a Complex Trade may be in a ratio equal to or greater than one-to-three (.333) and less than or equal to three-to-one (3.0); and (2) add a certain limited type of synthetic option order to the definition of Complex Trade. Phlx Rule 1083(c)(ii) defines a ‘‘stock-option order’’ as 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 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 option contracts per unit of trading of the underlying stock or convertible security established for that series by the Clearing Corporation. 5 See, e.g., Amex Rule 950–ANTE(e)(viii)(1); CBOE Rule 1.1(ii); and ISE Rule 722(a)(5)(i). 6 In connection with the Linkage Plan, a ‘‘TradeThrough’’ 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 In connection with the Linkage Plan, 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). 8 Phlx Rule 1083(c)(ii) refers to ‘‘stock-option orders’’ as synonymous with ‘‘synthetic option orders’’ to be consistent with the definitions proposed by the other Linkage Plan Participants. 9 See Securities Exchange Act Release No. 56761 (November 7, 2007) (order approving File Nos. SR– Amex–2007–65; SR–BSE–2007–45; SR–CBOE– 2007–64; SR–ISE–2007–44; and SR–NYSEArca– 2007–65) (‘‘Complex Trade Order’’). E:\FR\FM\15NON1.SGM 15NON1

Agencies

[Federal Register Volume 72, Number 220 (Thursday, November 15, 2007)]
[Notices]
[Pages 64266-64268]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-22293]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56750; File No. SR-Phlx-2007-85]


lf-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Amending Phlx Rule 607

November 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 November 1, 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 substantially prepared by the Exchange. 
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. 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Phlx proposes to amend Phlx Rule 607 to remove language regarding 
the NMS Linkage Plan (``Plan''). 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.\5\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act No. 54551 (September 29, 2006), 
71 FR 59148 (October 6, 2006).
---------------------------------------------------------------------------

    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 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. 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 update Phlx Rule 607 
to reflect the termination of the Plan. Phlx Rule 607 permits Phlx to 
collect the Covered Sale Fee \6\ from its members and member 
organizations. In order to facilitate the collection of the Covered

[[Page 64267]]

Sale Fee, Phlx amended Phlx Rule 607 to permit the Exchange to enter 
into agreements with other exchanges and with Participants in NASD's 
(n/k/a FINRA) Alternative Display Facility (``ADF Participant'') to 
pass the Covered Sale Fee among the applicable exchanges or ADF 
Participants where the Exchange has collected the Covered Sale Fee from 
its members and member organizations for sale transactions executed on 
another exchange or ADF Participant through the Plan and when other 
exchanges or ADF Participants have collected the Covered Sale Fee from 
their members for sale transactions executed on the Exchange through 
the Plan.\7\
---------------------------------------------------------------------------

    \6\ Under Section 31 of the Act, the Exchange must pay certain 
fees to the Commission. To help fund the Exchange's obligations to 
the Commission under Section 31, a Covered Sale Fee is assessed by 
the Exchange on members and member organizations.
    \7\ See Securities Exchange Act Release No. 54555 (October 2, 
2006), 71 FR 59577 (October 10, 2006).
---------------------------------------------------------------------------

    With the termination of the Plan, the agreements with the other 
exchanges and the ADF Participants are no longer needed.\8\ When the 
Plan began, certain exchanges and ADF Participants were unable to 
supply clearing or member information on orders routed through the Plan 
to other markets and therefore routed orders directly through the Plan 
without identifying a member or subscriber of the destination 
market.\9\ Because no member or subscriber of the destination market 
was involved in the transaction, there was no mechanism for the 
destination market to collect the Covered Sale Fee. The agreements 
provided for in Phlx Rule 607 permitted destination markets to collect 
the Covered Sale Fee for orders routed through the Plan that did not 
involve members or subscribers of the destination market. Now that the 
Plan has terminated, all access to the destination market is provided 
through members or subscribers, which are subject to the fees charged 
pursuant to rule or subscriber agreement.
---------------------------------------------------------------------------

    \8\ See Securities Exchange Act Release Nos. 56361 (September 6, 
2007), 72 FR 52192 (September 12, 2007) (SR-Phlx-2007-66, deleting 
references to the Plan in the XLE Fee Schedule); 55569 (April 2, 
2007), 72 FR 17978 (April 10, 2007) (SR-Phlx-2007-31, deleting 
references to the Intermarket Trading System (``ITS'') Plan in Phlx 
Rule 607, when the ITS Plan terminated.)
    \9\ See Securities Exchange Act Release No. 54548 (September 29, 
2006), 71 FR 59159 (October 6, 2006) (footnote 6).
---------------------------------------------------------------------------

    Therefore, Phlx proposes to delete that section of Phlx Rule 607 
referring to agreements with other exchanges and ADF Participants. Phlx 
does not intend this deletion to affect any rights or obligations that 
have accrued to any party up to this point in time pursuant to any such 
agreements.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \10\ in general and furthers the 
objectives of Section 6(b)(5) \11\ in particular, in that it is 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to remove impediments 
to, and perfect the mechanism of, a free and open market and a national 
market system, and in general, to protect investors and the public 
interest.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 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 would 
result in 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

    Written comments were neither solicited nor received.

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

    Because the foregoing proposed rule change does not:
    (i) Significantly affect the protection of investors or the public 
interest;
    (ii) Impose any significant burden on competition; and
    (iii) Become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, if 
consistent with the protection of investors and the public interest, it 
has become effective pursuant to Section 19(b)(3)(A) of the Act \12\ 
and Rule 19b-4(f)(6) thereunder.\13\ As required under Rule 19b-
4(f)(6)(iii) under the Act,\14\ the Exchange provided the Commission 
with written notice of its intent to file the proposed rule change, 
along with a brief description and text of the proposed rule change, at 
least five business days prior to the date of the filing of the 
proposed rule change.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    A proposed rule change filed under 19b-4(f)(6) normally may not 
become operative prior to 30 days after the date of filing.\15\ 
However, Rule 19b-4(f)(6)(iii) \16\ permits the Commission to designate 
a shorter time if such action is consistent with the protection of 
investors and the public interest. The Exchange has requested that the 
Commission waive the 30-day operative delay and render the proposed 
rule change operative immediately. The Commission believes that waiving 
the 30-day operative delay is consistent with the protection of 
investors and the public interest. Waiver of the 30-day operative delay 
would enable the Exchange to delete language in Phlx Rule 607 that is 
no longer needed due to the termination of the Plan as quickly as 
possible and prevent any potential confusion as to the applicability of 
this language. For the reasons stated above, the Commission therefore 
designates the proposal to become operative immediately.\17\
---------------------------------------------------------------------------

    \15\ Id.
    \16\ Id.
    \17\ For purposes of waiving the operative date of this proposal 
only, the Commission has considered the impact of the proposed rule 
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-Phlx-2007-85 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-2007-85. 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

[[Page 64268]]

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 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-2007-85 and should be submitted on or before December 6, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\18\
---------------------------------------------------------------------------

    \18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-22293 Filed 11-14-07; 8:45 am]
BILLING CODE 8011-01-P