Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Elimination of the Short Sale Price Test, 67618-67619 [E7-23171]
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67618
Federal Register / Vol. 72, No. 229 / Thursday, November 29, 2007 / Notices
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CHX–2007–26 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–CHX–2007–26. 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 CHX. 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–CHX–2007–26 and should
be submitted on or before December 20,
2007.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Nancy M. Morris,
Secretary.
[FR Doc. E7–23170 Filed 11–28–07; 8:45 am]
rmajette on PROD1PC64 with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56836; File No. SR–Phlx–
2007–55]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to the Elimination of
the Short Sale Price Test
November 21, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’), 1 and Rule 19b–4 2 thereunder,
notice is hereby given that on July 31,
2007, the Philadelphia Stock Exchange,
Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
have been substantially prepared by the
Phlx. Phlx has designated the proposed
rule change as constituting a ‘‘noncontroversial’’ rule change under
paragraph (f)(6) of Rule 19b–4 under the
Act.3 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
The Phlx, pursuant to Section 19(b)(1)
of the Act 4 and Rule 19b–4 thereunder,5
proposes to amend Phlx Rules 185, 455,
785 and 1072 to reflect the elimination
of the short sale price test, including
any tick or bid test of any self-regulatory
organization (‘‘Price Test’’) and the
elimination of the ‘‘short exempt’’
marking requirement.6
The text of the proposed rule change
is available at the Exchange, on the
Exchange’s Web site at https://
www.Phlx.com, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Phlx included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
4 15 U.S.C. 78s(b)(1).
5 17 CFR 240.19b–4.
6 See Securities Exchange Act Release No. 55970
(June 28, 2007).
2 17
18 17
CFR 200.30–3(a)(12).
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14:52 Nov 28, 2007
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in Item IV below. The Phlx has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to conform Phlx Rules to
Rules 200(g) and 201(b) of Regulation
SHO.7 On June 28, 2007, the SEC
approved final rules deleting the price
test of Rule 10a–1 8 and amending
Regulation SHO to prohibit any SRO
from having a price test in place. In
addition, Rule 200(g) of Regulation SHO
was modified to remove the requirement
upon broker-dealers to mark sell orders
as ‘‘short exempt.’’
Phlx Rules 185, 455, 785 and 1072
contain language regarding the Price
Test and the ‘‘short exempt’’ marking
requirement. Phlx Rule 185 contains
language regarding the entry, display
and execution of sell short orders on
XLE, Phlx’s electronic equity trading
system, that are subject to the Price Test.
With the elimination of the Price Test,
sell short orders will not be handled any
differently by XLE and the amendments
to this rule will so reflect. Phlx Rule 455
stated that XLE will not execute a sell
order unless effected in compliance
with Rule 10a–1. Rule 10a–1 contained
the Price Test and is being eliminated.
The amendments to Phlx Rule 455 will
reflect this.
Phlx Rule 785 requires member
organizations to make an automated
submission of trading data, including
marking orders as short exempt, where
appropriate. Phlx Rule 785 will be
amended to reflect the elimination of
the ‘‘short exempt’’ marking
requirement. Phlx Rule 1072 outlines
the requirements on options specialists
and Registered Options Traders
(‘‘ROTs’’) regarding their use of an
exception to the NASD (n/k/a Financial
Industry Regulatory Authority, Inc.) bid
test (which was a type of Price Test)
available to hedging options
transactions. The elimination of the
Price Test extended to the NASD bid
test and therefore options specialist and
ROTs will not need the exemption
outlined in Phlx Rule 1072. Phlx Rule
1072 will be deleted.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
7 17
8 17
CFR 242.200(g) and 17 CFR 242.201(b).
CFR 240.10a–1.
E:\FR\FM\29NON1.SGM
29NON1
Federal Register / Vol. 72, No. 229 / Thursday, November 29, 2007 / Notices
of the Act 9 in general, and furthers the
objectives of Section 6(b)(5) of the Act 10
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition 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 within 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate, it has become effective
upon filing pursuant to Section
19(b)(3)(A) of the Act 11 and Rule 19b–
4(f)(6) thereunder.12 Phlx has requested
that the Commission waive the 5-day
pre-filing notice requirement and the
30-day operative delay of the proposal.
The Commission believes that such
waivers are consistent with the
protection of investors and the public
interest because the proposed rule
change conforms Phlx’s rules to
currently effective Commission Rules
and should eliminate potential
confusion relating to orders on XLE.13
For this reason, the Commission
designates the proposal to be operative
upon filing with the Commission.
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
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(6).
13 For purposes only of waiving the 30-day preoperative period, the Commission has considered
the impact of the proposed rule change on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
rmajette on PROD1PC64 with NOTICES
10 15
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14:52 Nov 28, 2007
Jkt 211001
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–2007–55 on the
subject line.
67619
be submitted on or before December 20,
2007.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Nancy M. Morris,
Secretary.
[FR Doc. E7–23171 Filed 11–28–07; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice 5969]
Shipping Coordinating Committee;
Notice of Meeting
The Subcommittee on Fire Protection
of the Shipping Coordinating Committee
(SHC) will conduct an open meeting at
10 a.m. on Tuesday, December 11, 2007
in the Radio Technical Commission for
Maritime Services (RTCM) Headquarters
Building, 1800 N. Kent Street, Suite
Paper Comments
1060, Arlington, VA 22209. The primary
purpose of the meeting is to prepare for
• Send paper comments in triplicate
the 52nd Session of the International
to Nancy M. Morris, Secretary,
Maritime Organization (IMO)
Securities and Exchange Commission,
Subcommittee on Fire Protection to be
100 F Street, NE., Washington, DC
held at Central Hall Westminster in
20549–1090.
London, UK from January 14–18, 2008.
All submissions should refer to File
Discussion will focus on papers
Number SR–Phlx–2007–55. This file
received and draft U.S. positions
number should be included on the
regarding:
subject line if e-mail is used. To help the —Performance testing and approval
Commission process and review your
standards for fire safety systems;
comments more efficiently, please use
—Comprehensive review of the Fire
only one method. The Commission will
Test Procedures Code;
post all comments on the Commission’s —Review of fire safety of external areas
on passenger ships;
Internet Web site (https://www.sec.gov/
—Measures to prevent fires in enginerules/sro.shtml). Copies of the
rooms and cargo pump-rooms;
submission, all subsequent
—Fire resistance of ventilation ducts;
amendments, all written statements
—Review of the Code of Safety for
with respect to the proposed rule
Special Purpose Ships (SPS Code);
change that are filed with the
—Application of requirements for
Commission, and all written
requirements for dangerous goods in
communications relating to the
the International Convention for the
proposed rule change between the
Safety of Life at Sea (SOLAS) and the
Commission and any person, other than
High-Speed Craft Code 2000 (2000
those that may be withheld from the
HSC Code);
public in accordance with the
—Unified interpretation on the number/
provisions of 5 U.S.C. 552, will be
arrangement of portable extinguishers;
available for inspection and copying in
—Development of provisions for gas
the Commission’s Public Reference
fueled ships;
Room, 100 F Street, NE., Washington,
—Consideration of International
DC 20549 on official business days
Association of Classification Societies
between the hours of 10 a.m. and 3 p.m.
(IACS) unified interpretations;
Copies of the filing also will be available —Fixed hydrocarbon gas detection
for inspection and copying at the
systems on double-hull tankers;
principal office of the Phlx. All
—Clarification of SOLAS chapter II–2
comments received will be posted
requirements regarding
without change; the Commission does
interrelationship between control
not edit personal identifying
station and safety center; and
information from submissions. You
—Analysis of fire casualty records.
should submit only information that
Members of the public are invited to
you wish to make available publicly. All attend this meeting up to the seating
submissions should refer to File
Number SR–Phlx–2007–55 and should
14 17 CFR 200.30–3(a)(12).
PO 00000
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]]>Agencies
[Federal Register Volume 72, Number 229 (Thursday, November 29, 2007)]
[Notices]
[Pages 67618-67619]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-23171]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56836; File No. SR-Phlx-2007-55]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to the Elimination of the Short Sale Price Test
November 21, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), \1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that on July 31, 2007, the Philadelphia Stock Exchange, Inc. (``Phlx''
or ``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been substantially prepared by
the Phlx. Phlx has designated the proposed rule change as constituting
a ``non-controversial'' rule change under paragraph (f)(6) of Rule 19b-
4 under the Act.\3\ 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\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Phlx, pursuant to Section 19(b)(1) of the Act \4\ and Rule 19b-
4 thereunder,\5\ proposes to amend Phlx Rules 185, 455, 785 and 1072 to
reflect the elimination of the short sale price test, including any
tick or bid test of any self-regulatory organization (``Price Test'')
and the elimination of the ``short exempt'' marking requirement.\6\
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(1).
\5\ 17 CFR 240.19b-4.
\6\ See Securities Exchange Act Release No. 55970 (June 28,
2007).
---------------------------------------------------------------------------
The text of the proposed rule change is available at the Exchange,
on the Exchange's Web site at https://www.Phlx.com, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Phlx included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Phlx has prepared summaries, set forth in sections
A, B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to conform Phlx Rules to
Rules 200(g) and 201(b) of Regulation SHO.\7\ On June 28, 2007, the SEC
approved final rules deleting the price test of Rule 10a-1 \8\ and
amending Regulation SHO to prohibit any SRO from having a price test in
place. In addition, Rule 200(g) of Regulation SHO was modified to
remove the requirement upon broker-dealers to mark sell orders as
``short exempt.''
---------------------------------------------------------------------------
\7\ 17 CFR 242.200(g) and 17 CFR 242.201(b).
\8\ 17 CFR 240.10a-1.
---------------------------------------------------------------------------
Phlx Rules 185, 455, 785 and 1072 contain language regarding the
Price Test and the ``short exempt'' marking requirement. Phlx Rule 185
contains language regarding the entry, display and execution of sell
short orders on XLE, Phlx's electronic equity trading system, that are
subject to the Price Test. With the elimination of the Price Test, sell
short orders will not be handled any differently by XLE and the
amendments to this rule will so reflect. Phlx Rule 455 stated that XLE
will not execute a sell order unless effected in compliance with Rule
10a-1. Rule 10a-1 contained the Price Test and is being eliminated. The
amendments to Phlx Rule 455 will reflect this.
Phlx Rule 785 requires member organizations to make an automated
submission of trading data, including marking orders as short exempt,
where appropriate. Phlx Rule 785 will be amended to reflect the
elimination of the ``short exempt'' marking requirement. Phlx Rule 1072
outlines the requirements on options specialists and Registered Options
Traders (``ROTs'') regarding their use of an exception to the NASD (n/
k/a Financial Industry Regulatory Authority, Inc.) bid test (which was
a type of Price Test) available to hedging options transactions. The
elimination of the Price Test extended to the NASD bid test and
therefore options specialist and ROTs will not need the exemption
outlined in Phlx Rule 1072. Phlx Rule 1072 will be deleted.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b)
[[Page 67619]]
of the Act \9\ in general, and furthers the objectives of Section
6(b)(5) of the Act \10\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 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 will
impose any burden on competition 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 within 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective upon filing pursuant to Section 19(b)(3)(A) of the Act
\11\ and Rule 19b-4(f)(6) thereunder.\12\ Phlx has requested that the
Commission waive the 5-day pre-filing notice requirement and the 30-day
operative delay of the proposal. The Commission believes that such
waivers are consistent with the protection of investors and the public
interest because the proposed rule change conforms Phlx's rules to
currently effective Commission Rules and should eliminate potential
confusion relating to orders on XLE.\13\ For this reason, the
Commission designates the proposal to be operative upon filing with the
Commission.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
\13\ For purposes only of waiving the 30-day pre-operative
period, the Commission has considered the impact of the proposed
rule change 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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-Phlx-2007-55 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-2007-55. 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 the filing also will be available for
inspection and copying at the principal office of the Phlx. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-2007-55 and should be
submitted on or before December 20, 2007.
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Nancy M. Morris,
Secretary.
[FR Doc. E7-23171 Filed 11-28-07; 8:45 am]
BILLING CODE 8011-01-P
