Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to $5 Strike Price Intervals of Options on Exchange-Traded Fund Shares above $200, 74396-74398 [E7-25366]

Download as PDF 74396 Federal Register / Vol. 72, No. 249 / Monday, December 31, 2007 / Notices financial requirements set forth in Rule 703, Financial Responsibility and Reporting. Like other FLEX options, there would be no trading rotations in FLEX currency options, either at the opening or at the close of trading. The Exchange has determined that, initially, FLEX currency options would have the same trading hours as non-FLEX U.S. dollarsettled FCO. The Exchange would be able to establish other trading times for FLEX currency options within the regular trading hours for the non-FLEX U.S. dollar-settled FCOs, including reflecting any new trading hours for non-FLEX U.S. dollar-settled FCOs.28 The Exchange also proposes to amend Floor Procedure Advice F–28, Trading FLEX Index and Equity Options, to include FLEX Currency Options in its title and to make parallel changes to those being proposed to Rule 1079(b). Exchange rules and regulations involving sales practice will be applicable to FLEX currency options. Finally, the Exchange represents that it has adequate surveillance procedures for, and systems capacity to support, the trading of FLEX currency options. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,29 in general, and with Section 6(b)(5) of the Act,30 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 a free and open market and a national market system, and, in general, to protect investors and the public interest, by providing investors the ability to tailor foreign currency option contracts to suit their particular investment requirements and increased flexibility in satisfying particular investment objectives. B. Self-Regulatory Organization’s Statement on Burden on Competition sroberts on PROD1PC70 with NOTICES 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. 28 Under this proposal, expanding and narrowing FLEX currency trading hours within the regular trading hours of the particular product would not require a proposed rule change pursuant to Section 19(b) of the Act. The Exchange, however, would notify its members, in advance, prior to making any such change. Any proposal to expand trading hours outside of established regular trading hours would be submitted as a proposed rule change to the Commission pursuant to Section 19(b) of the Act. 29 15 U.S.C. 78f. 30 15 U.S.C. 78f(b)(5). VerDate Aug<31>2005 20:08 Dec 28, 2007 Jkt 214001 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 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 Amex 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 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–2007–68 and should be submitted on or before January 22, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.31 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–25355 Filed 12–28–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57038; File No. SR–Phlx– 2007–93] • 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–2007–68 on the subject line. Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to $5 Strike Price Intervals of Options on ExchangeTraded Fund Shares above $200 Paper Comments December 21, 2007. • 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–2007–68. 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 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 December 19, 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 Phlx. The Exchange filed the proposal as a ‘‘non-controversial’’ proposed rule change pursuant to section 19(b)(3)(A) of the Act 3 and Rule 19b-4(f)(6) thereunder,4 which rendered the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 31 17 CFR 200.30–3(a)(12). 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). 1 15 E:\FR\FM\31DEN1.SGM 31DEN1 Federal Register / Vol. 72, No. 249 / Monday, December 31, 2007 / Notices 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 Commentary .05 to Exchange Rule 1012 (‘‘Series of Options Open for Trading’’) to clarify that strike price intervals of options on Exchange-Traded Fund Shares (‘‘ETFs’’) will be $5 or greater where the strike price is over $200.5 The text of the proposed rule change is available at the Phlx, the Commission’s Public Reference Room, and http://www.phlx.com. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the 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 clarify that strike price intervals of options on ETFs will be $5 or greater where the strike price is over $200. Commentary .05 to Phlx Rule 1012 currently states that strike price intervals of options on ETFs will be $1 or greater when the strike price of the underlying asset is $200 or less. As such, most ETF options, which have become popular investment tools, are priced at $1 strike price intervals.6 However, some ETF options are listed at $10 strike price intervals at strike prices greater than $200.7 According to the sroberts on PROD1PC70 with NOTICES 5 Strike price intervals for series of options on ETFs were initially established at $1 or greater where the strike price is $200 or less. See Securities Exchange Act Release No. 44055 (March 8, 2001), 66 FR 15310 (March 16, 2001) (SR–Phlx–2001–32) (filing silent regarding strike price intervals where the strike price is over $200). 6 The proposal establishing strike price intervals for series of options on ETFs at $1 or greater where the strike price is $200 or less did not discuss strike price intervals where the strike price is over $200. See Securities Exchange Act Release No. 44055 (March 8, 2001), 66 FR 15310 (March 16, 2001)(SR– Phlx–2001–32). 7 For example, ETF options trading under the symbols ILF, FXI, MDY, and EEM are all listed at strike prices greater than $200. VerDate Aug<31>2005 20:08 Dec 28, 2007 Jkt 214001 Exchange, within the last few months, the Phlx has received requests from Phlx traders to price ETF options at $5 strike price intervals above $200. Because the Exchange does not currently have a provision that allows ETF options to list and trade at $5 or greater strike price intervals where the strike price is more than $200, however, the Exchange has only been able to list these ETF options at $10 or greater strike price intervals.8 This has put Phlx at a competitive disadvantage, particularly with respect to options exchanges that allow $5 strike price intervals for ETF options.9 The Exchange believes that the rule proposal to clarify the availability of $5 strike price intervals for ETF options above $200 should enable Phlx to competitively list and trade ETF options at appropriate strike price intervals to the benefit of public customers, traders on the Exchange, and the Exchange itself. 2. Statutory Basis The Exchange believes that its proposal is consistent with section 6(b) of the Act 10 in general, and furthers the objectives of section 6(b)(5) of the Act 11 in particular, in that it is designed to promote just and equitable principles of trade, perfect the mechanism of a free and open market and a national market system, and in general to protect investors and the public interest. Specifically, the Exchange believes that the proposal would achieve this by allowing listing and trading of options on ETFs at $5 strike price intervals within certain parameters, commensurate with the rules of other options exchanges. 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 that is not necessary or appropriate in furtherance of the purposes of the Act. 8 Commentary .05(a) to Phlx Rule 1012 states, among other things, that strike prices of options may be $2.50 or greater where the strike price is $25 or less, $5 or greater where the strike price is more than $25 but less than $200, and $10 or greater where the strike price is $200 or more. 9 See, e.g., Amex Rule 903 stating that options on ETFs may trade at $5 strike price intervals where the strike price is over $200. See Securities Exchange Act Release Nos. 40157 (July 1, 1998), 63 FR 37426 (July 10, 1998) (SR–AMEX–1996–44) and 48024 (June 12, 2003), 68 FR 36617 (June 18, 2003) (SR–AMEX–2003–36). Supplementary Material .01 to Chapter IV, Sec. 6 of BOX rules similarly allows listing and trading of ETF options at $5 strike price intervals where the strike price is over $200. 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(5). PO 00000 Frm 00132 Fmt 4703 Sfmt 4703 74397 C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received by the Exchange. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change has become effective pursuant to section 19(b)(3)(A) of the Act 12 and Rule 19b–4(f)(6) thereunder,13 because the foregoing proposed rule 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. As required under Rule 19b– 4(f)(6)(iii) under the Act,14 Phlx 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, prior to the date of the filing of the proposed rule change. 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.15 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–2007–93 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 12 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 14 17 CFR 240.19b–4(f)(6)(iii). 15 See 15 U.S.C. 78s(b)(3)(C). 13 17 E:\FR\FM\31DEN1.SGM 31DEN1 74398 Federal Register / Vol. 72, No. 249 / Monday, December 31, 2007 / Notices 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–Phlx–2007–93. 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–2007–93 and should be submitted on or before January 22, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Nancy M. Morris, Secretary. [FR Doc. E7–25366 Filed 12–28–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57023; File No. SR–Phlx– 2007–83] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Order Approving a Proposed Rule Change Relating to Amending By-Law Article X, Section 10–11 sroberts on PROD1PC70 with NOTICES December 20, 2007. On October 29, 2007, the Philadelphia Stock Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission 16 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 20:08 Dec 28, 2007 Jkt 214001 (‘‘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 expand the type of business that certain members of the Exchange’s Business Conduct Committee (‘‘Committee’’) must conduct in order to qualify as a Committee member. The proposed rule change was published for comment in the Federal Register on November 19, 2007.3 The Commission received no comments on the proposal. This order approves the proposed rule change. The Committee has exclusive jurisdiction to, among other things: (1) Monitor compliance with the Act, the rules and regulations under the Act, and the Exchange’s By-Laws and Rules; and (2) authorize the initiation of Exchange disciplinary actions or proceedings. Phlx By-Law X, Section 10–11(h) currently requires that, of the nine members that comprise the Committee, one Committee member must principally carry out its business on XLE 4 and one Committee member must principally carry out its business on the equity options floor. The proposed rule change would revise the qualification requirements for these two Committee positions. Specifically, Phlx proposes to amend Section 10–11(h) of its By-Laws to provide that these two positions can be filled, respectively, by a Member or person associated with a Member Organization who conducts equity business on XLE and a Member who conducts options business at the Exchange. After careful consideration, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.5 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,6 which requires that an exchange have rules designed, among other things, 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 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 56775 (November 9, 2007), 72 FR 65119. 4 XLE is the electronic system that is operated by the Exchange for the entry, display, execution, and reporting of orders in NMS stocks. See Section 1– 1(ii) of Phlx’s By-Laws. 5 In approving this rule change, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 6 15 U.S.C. 78f(b)(5). 2 17 PO 00000 Frm 00133 Fmt 4703 Sfmt 4703 investors and the public interest. In addition, the Commission finds that the proposed rule change is consistent with Section 6(b)(3) under the Act,7 which requires that the rules of a national securities exchange assure a fair representation of its members in the selection of its directors and the administration of its affairs. The proposed rule change would allow a greater pool of Members to be eligible to hold these two Committee positions and would not alter Member participation on the Committee. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,8 that the proposed rule change (SR–Phlx–2007– 83) be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Nancy M. Morris, Secretary. [FR Doc. E7–25367 Filed 12–28–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57034; File No. SR–Phlx– 2007–91] Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by the Philadelphia Stock Exchange, Inc. To Require a Non-Streaming Quote Trader Registered Option Traders (‘‘non-SQT ROT’’) To Submit a List of Options for Intended Assignment December 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 December 12, 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, II, and III, below, which Items have been prepared by the Phlx. 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 proposes to amend Exchange Rule 1014(b)(ii)(C) to require Exchange ‘‘non-SQT ROTs’’ (as defined below) to submit to the Exchange a list 7 15 U.S.C. 78f(b)(3). U.S.C. 78s(b)(2). 9 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 8 15 E:\FR\FM\31DEN1.SGM 31DEN1

Agencies

[Federal Register Volume 72, Number 249 (Monday, December 31, 2007)]
[Notices]
[Pages 74396-74398]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-25366]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57038; File No. SR-Phlx-2007-93]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to $5 Strike Price Intervals of Options on Exchange-Traded 
Fund Shares above $200

December 21, 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 December 19, 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 Phlx. The 
Exchange filed the proposal as a ``non-controversial'' proposed rule 
change pursuant to section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6) thereunder,\4\ which rendered the proposal effective upon 
filing with the Commission. The Commission is publishing this notice to 
solicit

[[Page 74397]]

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 Commentary .05 to Exchange Rule 1012 
(``Series of Options Open for Trading'') to clarify that strike price 
intervals of options on Exchange-Traded Fund Shares (``ETFs'') will be 
$5 or greater where the strike price is over $200.\5\
---------------------------------------------------------------------------

    \5\ Strike price intervals for series of options on ETFs were 
initially established at $1 or greater where the strike price is 
$200 or less. See Securities Exchange Act Release No. 44055 (March 
8, 2001), 66 FR 15310 (March 16, 2001) (SR-Phlx-2001-32) (filing 
silent regarding strike price intervals where the strike price is 
over $200).
---------------------------------------------------------------------------

    The text of the proposed rule change is available at the Phlx, the 
Commission's Public Reference Room, and http://www.phlx.com.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the 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 clarify that strike 
price intervals of options on ETFs will be $5 or greater where the 
strike price is over $200. Commentary .05 to Phlx Rule 1012 currently 
states that strike price intervals of options on ETFs will be $1 or 
greater when the strike price of the underlying asset is $200 or less. 
As such, most ETF options, which have become popular investment tools, 
are priced at $1 strike price intervals.\6\ However, some ETF options 
are listed at $10 strike price intervals at strike prices greater than 
$200.\7\ According to the Exchange, within the last few months, the 
Phlx has received requests from Phlx traders to price ETF options at $5 
strike price intervals above $200. Because the Exchange does not 
currently have a provision that allows ETF options to list and trade at 
$5 or greater strike price intervals where the strike price is more 
than $200, however, the Exchange has only been able to list these ETF 
options at $10 or greater strike price intervals.\8\ This has put Phlx 
at a competitive disadvantage, particularly with respect to options 
exchanges that allow $5 strike price intervals for ETF options.\9\
---------------------------------------------------------------------------

    \6\ The proposal establishing strike price intervals for series 
of options on ETFs at $1 or greater where the strike price is $200 
or less did not discuss strike price intervals where the strike 
price is over $200. See Securities Exchange Act Release No. 44055 
(March 8, 2001), 66 FR 15310 (March 16, 2001)(SR-Phlx-2001-32).
    \7\ For example, ETF options trading under the symbols ILF, FXI, 
MDY, and EEM are all listed at strike prices greater than $200.
    \8\ Commentary .05(a) to Phlx Rule 1012 states, among other 
things, that strike prices of options may be $2.50 or greater where 
the strike price is $25 or less, $5 or greater where the strike 
price is more than $25 but less than $200, and $10 or greater where 
the strike price is $200 or more.
    \9\ See, e.g., Amex Rule 903 stating that options on ETFs may 
trade at $5 strike price intervals where the strike price is over 
$200. See Securities Exchange Act Release Nos. 40157 (July 1, 1998), 
63 FR 37426 (July 10, 1998) (SR-AMEX-1996-44) and 48024 (June 12, 
2003), 68 FR 36617 (June 18, 2003) (SR-AMEX-2003-36). Supplementary 
Material .01 to Chapter IV, Sec. 6 of BOX rules similarly allows 
listing and trading of ETF options at $5 strike price intervals 
where the strike price is over $200.
---------------------------------------------------------------------------

    The Exchange believes that the rule proposal to clarify the 
availability of $5 strike price intervals for ETF options above $200 
should enable Phlx to competitively list and trade ETF options at 
appropriate strike price intervals to the benefit of public customers, 
traders on the Exchange, and the Exchange itself.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with section 
6(b) of the Act \10\ in general, and furthers the objectives of section 
6(b)(5) of the Act \11\ in particular, in that it is designed to 
promote just and equitable principles of trade, perfect the mechanism 
of a free and open market and a national market system, and in general 
to protect investors and the public interest. Specifically, the 
Exchange believes that the proposal would achieve this by allowing 
listing and trading of options on ETFs at $5 strike price intervals 
within certain parameters, commensurate with the rules of other options 
exchanges.
---------------------------------------------------------------------------

    \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 will 
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

    No written comments were either solicited or received by the 
Exchange.

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

    The proposed rule change has become effective pursuant to section 
19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6) thereunder,\13\ 
because the foregoing proposed rule 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. As required under Rule 19b-4(f)(6)(iii) under 
the Act,\14\ Phlx 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, prior to the date of the filing 
of the proposed rule change.
---------------------------------------------------------------------------

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

    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.\15\
---------------------------------------------------------------------------

    \15\ See 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------

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-2007-93 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission,

[[Page 74398]]

100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2007-93. 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-2007-93 and should be 
submitted on or before January 22, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
Nancy M. Morris,
Secretary.
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. E7-25366 Filed 12-28-07; 8:45 am]
BILLING CODE 8011-01-P