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]
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64266
Federal Register / Vol. 72, No. 220 / Thursday, November 15, 2007 / Notices
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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
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post all comments on the Commission’s
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Internet Web site (https://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 (https://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).
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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 https://
www.phlx.com.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
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
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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).
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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
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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 (https://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 (https://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
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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
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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.
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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’’).
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]]>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).
---------------------------------------------------------------------------
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 https://www.phlx.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the 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\
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\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.
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\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).
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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\
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\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).
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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 (https://
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 (https://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\
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\18\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-22293 Filed 11-14-07; 8:45 am]
BILLING CODE 8011-01-P
