Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Exchange's Automated Opening System, 65120-65121 [E7-22484]
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Federal Register / Vol. 72, No. 222 / Monday, November 19, 2007 / 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)
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 the self-regulatory
organization 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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Phlx–2007–83 on the
subject line.
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–Phlx–2007–83 and should
be submitted on or before December 10,
2007.
Options’’ to establish additional criteria
to determine the single opening price in
a particular option series when the
Exchange’s system could open trading
in such series at two or more prices.5
The text of the proposed rule change is
available at the Exchange, the
Commission’s Public Reference Room,
and https://www.phlx.com.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority. 6
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–22481 Filed 11–16–07; 8:45 am]
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 substantially prepared summaries,
set forth in Sections A, B, and C below,
of the most significant aspects of such
statements.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56776; File No. SR–Phlx–
2007–81]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change Relating to the Exchange’s
Automated Opening System
November 9, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on October
to Nancy M. Morris, Secretary,
16, 2007, the Philadelphia Stock
Securities and Exchange Commission,
Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’)
100 F Street, NE., Washington, DC
filed with the Securities and Exchange
20549–1090.
Commission (‘‘Commission’’) the
All submissions should refer to File
proposed rule change as described in
Number SR–Phlx–2007–83. This file
Items I and II below, which Items have
number should be included on the
subject line if e-mail is used. To help the been substantially prepared by the
Exchange. The Exchange filed the
Commission process and review your
proposal as a ‘‘non-controversial’’
comments more efficiently, please use
only one method. The Commission will proposed rule change pursuant to
3
the
post all comments on the Commission’s Section 19(b)(3)(A) of 4 Act and Rule
19b–4(f)(6) thereunder, which renders
Internet Web site (https://www.sec.gov/
the proposal effective upon filing with
rules/sro.shtml). Copies of the
the Commission. The Commission is
submission, all subsequent
publishing this notice to solicit
amendments, all written statements
comments on the proposed rule change
with respect to the proposed rule
from interested persons.
change that are filed with the
Commission, and all written
I. Self-Regulatory Organization’s
communications relating to the
Statement of the Terms of Substance of
proposed rule change between the
the Proposed Rule Change
Commission and any person, other than
The Exchange proposes to amend
those that may be withheld from the
Exchange Rule 1017 ‘‘Openings in
public in accordance with the
provisions of 5 U.S.C. 552, will be
6 17 CFR 200.30–3(a)(12).
available for inspection and copying in
1 15 U.S.C. 78s(b)(1).
the Commission’s Public Reference
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
Room, 100 F Street, NE., Washington,
4 17 CFR 240.19b–4(f)(6).
DC 20549, on official business days
rwilkins on PROD1PC63 with NOTICES
Paper Comments
VerDate Aug<31>2005
20:17 Nov 16, 2007
Jkt 214001
PO 00000
Frm 00135
Fmt 4703
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II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange states that the purpose
of the proposed rule change is to ensure
that the Exchange’s opening price in a
particular option series is established at
a single price when two or more
opening prices would satisfy the
requirement in Exchange Rule 1017(c)
that such price be the price at which the
maximum quantity of contracts will
trade. The Exchange believes that this
proposal should facilitate fair and
orderly markets on the opening of a
particular option series on the Exchange
at a single price.
Rule 1017(c) sets forth the
methodology by which the Exchange’s
system establishes the opening price of
a series. Generally, the opening price of
a series is the price at which the
maximum quantity of contracts will be
traded. The Exchange notes that
frequently, however, there will be more
than one price that will satisfy the
‘‘maximum quantity’’ test in
determining the opening price of a
series. Accordingly, Rule 1017(c) lists a
number of ‘‘tie-breakers’’ used by the
5 The Exchange has advised that it anticipates
implementing the proposed rule change on
December 1, 2007. The Exchange states that, if this
date is delayed, it will inform its members through
a circular. Telephone conversation among Richard
Rudolph, Vice President and Counsel, Exchange,
and Hong-Anh Tran and Michou H.M. Nguyen,
Special Counsels, Division of Market Regulation,
Commission on November 6, 2007.
E:\FR\FM\19NON1.SGM
19NON1
Federal Register / Vol. 72, No. 222 / Monday, November 19, 2007 / Notices
system to determine the actual opening
price of a series.
Currently, Rule 1017(c)(i) defines the
opening price as the price at which the
maximum quantity of contracts would
be traded. The rule establishes a series
of ‘‘tie-breakers,’’ which are additional
criteria that the system follows in
establishing the opening price when two
or more prices would satisfy the
maximum quantity criteria. Specifically,
when the maximum quantity of
contracts could be traded at two or more
prices, the system establishes the
opening price based on the following
criteria, in the following order: (1) The
price at which the greatest number of
customer orders would be traded; (2) the
price at which the maximum number of
Phlx XL participants would trade; and
(3) the price that is closest to the closing
price from the previous trading session.6
The Exchange has observed that the
existing ‘‘tie-breakers’’ in Rule 1017(c)
can still result in the situation where
two or more prices could satisfy the
maximum quantity criteria.
Accordingly, the Exchange proposes to
add another ‘‘tie-breaker’’ to be used in
determining the opening price when
two or more prices satisfy the maximum
quantity criteria.
Specifically, the Exchange proposes to
amend Rule 1017(c) to provide that,
after all existing ‘‘tie-breakers’’ have
been exhausted, should there continue
to be two or more prices that satisfy the
maximum quantity criteria, the opening
price will be the mid-point of the
highest possible price and lowest
possible price that satisfy the maximum
quantity criteria (rounded as needed to
the side of the market with the greatest
number of Phlx XL participants).
2. Statutory Basis
rwilkins on PROD1PC63 with NOTICES
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,7 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,8 in particular, because 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 clarifying the single
opening price in a particular series on
the Exchange when two or more prices
would result in the maximum number
6 For
a complete description of the Exchange’s
automated opening system, see Securities Exchange
Act Release No. 52667 (October 25, 2005), 70 FR
65953 (November 1, 2005) (SR–Phlx–2005–25).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
VerDate Aug<31>2005
20:17 Nov 16, 2007
Jkt 214001
of contracts traded at the opening in
such series.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would 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
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the 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 after the date of
filing (or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest), the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 9 and
subparagraph (f)(6) of Rule 19b–4
thereunder.10
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 the 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-2007–81 on the subject
line.
Paper Comments:
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
10 17
PO 00000
Frm 00136
Fmt 4703
Sfmt 4703
65121
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–Phlx–2007–81. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–Phlx–2007–81 and should
be submitted on or before December 10,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–22484 Filed 11–16–07; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice 5993]
Bureau of Political-Military Affairs:
Directorate of Defense Trade Controls;
Notifications to the Congress of
Proposed Commercial Export Licenses
SUMMARY: Notice is hereby given that
the Department of State has forwarded
the attached Notifications of Proposed
Export Licenses to the Congress on the
dates indicated pursuant to sections
36(c) and 36(d) and in compliance with
11 17
E:\FR\FM\19NON1.SGM
CFR 200.30–3(a)(12).
19NON1
]]>Agencies
[Federal Register Volume 72, Number 222 (Monday, November 19, 2007)]
[Notices]
[Pages 65120-65121]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-22484]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56776; File No. SR-Phlx-2007-81]
Self-Regulatory Organizations; Philadelphia Stock Exchange,
Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change Relating to the Exchange's Automated Opening System
November 9, 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 October 16, 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 as a ``non-controversial'' proposed
rule change pursuant to Section 19(b)(3)(A) \3\ of the Act 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
The Exchange proposes to amend Exchange Rule 1017 ``Openings in
Options'' to establish additional criteria to determine the single
opening price in a particular option series when the Exchange's system
could open trading in such series at two or more prices.\5\ The text of
the proposed rule change is available at the Exchange, the Commission's
Public Reference Room, and https://www.phlx.com.
---------------------------------------------------------------------------
\5\ The Exchange has advised that it anticipates implementing
the proposed rule change on December 1, 2007. The Exchange states
that, if this date is delayed, it will inform its members through a
circular. Telephone conversation among Richard Rudolph, Vice
President and Counsel, Exchange, and Hong-Anh Tran and Michou H.M.
Nguyen, Special Counsels, Division of Market Regulation, Commission
on November 6, 2007.
---------------------------------------------------------------------------
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 substantially prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange states that the purpose of the proposed rule change is
to ensure that the Exchange's opening price in a particular option
series is established at a single price when two or more opening prices
would satisfy the requirement in Exchange Rule 1017(c) that such price
be the price at which the maximum quantity of contracts will trade. The
Exchange believes that this proposal should facilitate fair and orderly
markets on the opening of a particular option series on the Exchange at
a single price.
Rule 1017(c) sets forth the methodology by which the Exchange's
system establishes the opening price of a series. Generally, the
opening price of a series is the price at which the maximum quantity of
contracts will be traded. The Exchange notes that frequently, however,
there will be more than one price that will satisfy the ``maximum
quantity'' test in determining the opening price of a series.
Accordingly, Rule 1017(c) lists a number of ``tie-breakers'' used by
the
[[Page 65121]]
system to determine the actual opening price of a series.
Currently, Rule 1017(c)(i) defines the opening price as the price
at which the maximum quantity of contracts would be traded. The rule
establishes a series of ``tie-breakers,'' which are additional criteria
that the system follows in establishing the opening price when two or
more prices would satisfy the maximum quantity criteria. Specifically,
when the maximum quantity of contracts could be traded at two or more
prices, the system establishes the opening price based on the following
criteria, in the following order: (1) The price at which the greatest
number of customer orders would be traded; (2) the price at which the
maximum number of Phlx XL participants would trade; and (3) the price
that is closest to the closing price from the previous trading
session.\6\
---------------------------------------------------------------------------
\6\ For a complete description of the Exchange's automated
opening system, see Securities Exchange Act Release No. 52667
(October 25, 2005), 70 FR 65953 (November 1, 2005) (SR-Phlx-2005-
25).
---------------------------------------------------------------------------
The Exchange has observed that the existing ``tie-breakers'' in
Rule 1017(c) can still result in the situation where two or more prices
could satisfy the maximum quantity criteria. Accordingly, the Exchange
proposes to add another ``tie-breaker'' to be used in determining the
opening price when two or more prices satisfy the maximum quantity
criteria.
Specifically, the Exchange proposes to amend Rule 1017(c) to
provide that, after all existing ``tie-breakers'' have been exhausted,
should there continue to be two or more prices that satisfy the maximum
quantity criteria, the opening price will be the mid-point of the
highest possible price and lowest possible price that satisfy the
maximum quantity criteria (rounded as needed to the side of the market
with the greatest number of Phlx XL participants).
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\7\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\8\ in particular, because 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 clarifying the single opening
price in a particular series on the Exchange when two or more prices
would result in the maximum number of contracts traded at the opening
in such series.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 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
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
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the 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 after the date of filing (or such shorter time as the Commission
may designate if consistent with the protection of investors and the
public interest), the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \9\ and subparagraph (f)(6)
of Rule 19b-4 thereunder.\10\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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 the 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-2007-81 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-2007-81. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-2007-81 and should be
submitted on or before December 10, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-22484 Filed 11-16-07; 8:45 am]
BILLING CODE 8011-01-P
