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]

Download as PDF 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 (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 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 http:// 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). VerDate Aug<31>2005 14:52 Nov 28, 2007 Jkt 211001 PO 00000 Frm 00026 Fmt 4703 Sfmt 4703 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 VerDate Aug<31>2005 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 (http://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 (http://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 Frm 00027 Fmt 4703 Sfmt 4703 E:\FR\FM\29NON1.SGM 29NON1

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]


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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 http://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 (http://
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 (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Room, 100 F Street, NE., 
Washington, DC 20549 on official business days between the hours of 10 
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