Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Order Approving Proposed Rule Change, as Modified by Amendment No. 1 Thereto, Relating to U.S. Dollar-Settled FCO Spot Prices, 18310-18311 [E8-6871]
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18310
Federal Register / Vol. 73, No. 65 / Thursday, April 3, 2008 / Notices
expungement, without judicial
intervention, of information from the
CRD system as directed by arbitrators in
intra-industry arbitration awards that
involve associated persons and firms
based on the defamatory nature of the
information ordered expunged. In
allowing expungement relief without
judicial intervention under such
circumstances, FINRA believes that it is
fairly balancing the interests of the
brokerage community and others in
expunging defamatory statements with
FINRA’s interests in investor protection
and the integrity of the CRD system.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act, 11 which
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. The new procedures
would enhance the integrity of the
information in the CRD system and
would ensure that investor protection is
not compromised when arbitrators order
expungement of information related to
arbitration cases from an associated
person’s CRD record.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received from
Members, Participants, or Others
Written comments were neither
solicited nor received.
rwilkins on PROD1PC63 with 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
11 15
U.S.C. 78o–3(b)(6).
VerDate Aug<31>2005
17:19 Apr 02, 2008
Jkt 214001
(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–FINRA–2008–010 on the
subject line.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–6870 Filed 4–2–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57575; File No. SR–Phlx–
2008–06]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Order Approving Proposed Rule
Change, as Modified by Amendment
No. 1 Thereto, Relating to U.S. DollarSettled FCO Spot Prices
March 28, 2008.
I. Introduction
On January 28, 2008, the Philadelphia
• Send paper comments in triplicate
Stock Exchange, Inc. (‘‘Phlx’’ or
to Nancy M. Morris, Secretary,
‘‘Exchange’’) filed with the Securities
Securities and Exchange Commission,
and Exchange Commission
100 F Street, NE., Washington, DC
(‘‘Commission’’), pursuant to Section
20549–1090.
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’)1 and Rule 19b–4
All submissions should refer to File
Number SR–FINRA–2008–010. This file thereunder,2 a proposed rule change to
amend the definition of Spot Price so
number should be included on the
subject line if e-mail is used. To help the that the Exchange may use certain bid
and ask prices (‘‘Thomson Quotes’’)
Commission process and review your
provided by Tenfore Systems Limited
comments more efficiently, please use
only one method. The Commission will (‘‘Tenfore’’) through Thomson Financial
post all comments on the Commission’s LLC (‘‘Thomson’’) as Spot Prices in
determining applicable margin
Internet Web site (https://www.sec.gov/
requirements and strike prices for the
rules/sro.shtml). Copies of the
Exchange’s U.S. dollar-settled foreign
submission, all subsequent
currency options (‘‘FCOs’’). On February
amendments, all written statements
19, 2008, the Exchange filed
with respect to the proposed rule
Amendment No. 1 to the proposed rule
change that are filed with the
change. The proposed rule change, as
Commission, and all written
modified by Amendment No. 1, was
communications relating to the
published for comment in the Federal
proposed rule change between the
Commission and any person, other than Register on February 27, 2008.3 The
Commission received no comments on
those that may be withheld from the
the proposal. This order approves the
public in accordance with the
proposed rule change, as modified by
provisions of 5 U.S.C. 552, will be
Amendment No. 1.
available for inspection and copying in
the Commission’s Public Reference
II. Description of the Proposal
Room on official business days between
Phlx proposes to amend the definition
the hours of 10 a.m. and 3 p.m. Copies
of Spot Price to permit the Exchange to
of such filing also will be available for
use the Thomson Quotes to calculate the
inspection and copying at the principal
Spot Prices in connection with the
office of FINRA.
Exchange’s determination of strike
All comments received will be posted prices and margin requirements for its
without change; the Commission does
U.S. dollar-settled FCOs.4 Under Phlx
not edit personal identifying
information from submissions. You
12 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
should submit only information that
2 17 CFR 240.19b–4.
you wish to make available publicly. All
3 See Securities Exchange Act Release No. 57361
submissions should refer to File
(February 20, 2008), 73 FR 10503.
Number SR–FINRA–2008–010 and
4 The Exchange is also proposing to substitute the
should be submitted on or before April
term ‘‘Spot Prices’’ for the defined term ‘‘Spot Sales
24, 2008.
Prices’’ in Rule 1000(b)(16), as a clarification that
Paper Comments
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Federal Register / Vol. 73, No. 65 / Thursday, April 3, 2008 / Notices
rwilkins on PROD1PC63 with NOTICES
Rule 1012, ‘‘Series of Options Open for
Trading,’’ the Exchange is required to
refer to the spot prices of foreign
currencies in determining strike prices
for U.S. dollar-settled FCOs. Further,
Phlx Rule 722, ‘‘Margin Accounts,’’
requires the Exchange to establish
margin requirements for FCO
transactions based upon the spot price
of the foreign currency underlying the
option.
Currently, the Exchange receives Spot
Prices that are contributor bank quotes
from Reuters in real-time and takes the
weighted average of the various quotes
to determine the Phlx’s foreign currency
spot price.5 The Exchange now seeks to
amend the definition of Spot Prices to
include foreign currency quotes of
entities other than commercial banks, so
that the Exchange can use the Thomson
Quotes to calculate Spot Prices for the
setting of margin requirements and
strike prices and for any other necessary
purposes in connection with Phlx’s FCO
contracts. Thomson Quotes are not
limited to quotes from banks but also
include quotes from other foreign
currency market participants.
Under the proposal, the Exchange will
receive the latest Thomson Quotes from
Thomson, which in turn obtains this
data from Tenfore.6 With the exception
of the Japanese yen, the Exchange will
then calculate the average of the bid and
ask received to determine the current
spot market price that the Exchange will
use for purposes of calculating margin
requirements and strike prices with
respect to U.S. dollar-settled FCOs.
Because the Thomson Quote is
expressed differently for the Japanese
yen than for the other currencies (in
foreign currency units per U.S. dollar
rather than in U. S. dollars per unit of
foreign currency), the spot price that
Phlx will use for the Japanese yen will
this defined term includes both bids and offers
made by participants in the foreign currency
markets (as opposed to offers only). In addition, the
Exchange is proposing to amend Rule 722 such that
the current spot market price of an underlying
foreign currency shall be determined using spot
prices at 4 (the close of trading for U.S. dollarsettled FCOs) rather than 2:30 (the close of trading
for physical delivery FCOs).
5 Until March 14, 2008, in connection with its
physical delivery FCOs, when the Exchange
received the bid and ask from the Reuters feed, the
Exchange computed the average and distributed
that value as the foreign currency spot value over
the facilities of the Options Price Reporting
Authority (‘‘OPRA’’) to vendors and individual
customers. The Exchange ceased disseminating this
foreign currency spot value after March 14, 2008,
in connection with the planned delisting of its
physical delivery FCO contracts.
6 Tenfore has more than 21 contributors reporting,
consisting of banks, spot currency portals, the
European Central Bank, and brokers. Tenfore’s bid
and ask Spot Prices are at any given point in time
the latest bid and ask supplied to Tenfore by the
last in time of any Tenfore contributor to report.
VerDate Aug<31>2005
17:19 Apr 02, 2008
Jkt 214001
be the inverse of the average of the
Thomson Quote bid and ask (that is, one
divided by the average of the Thomson
Quote bid and ask).
The Exchange will not disseminate
the current spot market value it
calculates based upon the Thomson
Quotes. However, the Exchange
currently does, and will continue to,
disseminate its modified spot value,
which is also based upon the Thomson
Quotes, real-time over Network B of the
Consolidated Tape Association.7 The
Exchange states that this modified spot
value is more widely distributed,
carried by more vendors, and more
easily accessible than the Exchange’s
current foreign currency spot market
price calculated on the basis of the bank
quotes provided by Reuters.
III. Discussion
After careful review, the Commission
finds that the proposed rule change, as
amended, is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange and, in
particular, with Section 6(b)(5) of the
Act,8 which requires, among other
things, that the rules of a national
securities exchange be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
impediments to, and perfect the
mechanism of, a free and open market
and a national market system and, in
general, to protect investors and the
public interest.9
The Commission believes that
Exchange’s use of Thomson Quotes for
determining Spot Prices for the setting
of margin requirements and strike prices
for Phlx’s U.S.-dollar settled FCOs is
reasonable and should result in Phlx
Spot Prices that are representative of
foreign currency spot market prices.
Although the Exchange will not
disseminate the current Spot Prices it
calculates based upon the Thomson
Quotes, the Commission believes that
sufficient venues exist for obtaining
reliable information on the foreign
currencies so that investors in U.S.
7 The Exchange currently disseminates, over the
facilities of the Consolidated Tape Association at
least once every fifteen seconds while the Exchange
is open for trading, a modified spot rate for
currencies underlying U.S. dollar-settled FCOs. The
Exchange does not propose to change the modified
spot rate in this proposed rule change. See
Securities Exchange Act Release Nos. 55513 (March
22, 2007), 72 FR 14636 (March 28, 2007) (SR–Phlx–
2007–28) and 56034 (July 10, 2007), 72 FR 38853
(July 16, 2007) (SR–Phlx–2007–34).
8 15 U.S.C. 78f(b)(5).
9 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
PO 00000
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Fmt 4703
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18311
dollar-settled FCOs can monitor the
underlying spot market, including the
Exchange’s dissemination of a modified
spot rate for foreign currencies at least
once every fifteen seconds while the
Exchange is open for trading. The
Commission also notes that the
Exchange has represented that it
believes that the new method of
calculating Phlx Spot Prices should,
over time, produce only minor
differences from the current method of
determining Spot Prices. Accordingly,
the Commission finds that the proposed
rule change, as amended, is consistent
with the Act.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change (SR–Phlx–2008–
06), as modified by Amendment No. 1,
be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–6871 Filed 4–2–08; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #11202]
Arkansas Disaster #AR–00019
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
SUMMARY: This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Arkansas (FEMA–1751–DR),
dated 03/26/2008.
Incident: Severe Storms, Tornadoes,
and Flooding.
Incident Period: 03/18/2008 and
continuing.
DATES: Effective Date: 03/26/2008.
Physical Loan Application Deadline
Date: 05/27/2008.
ADDRESSES: Submit completed loan
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FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
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Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
10 15
11 17
E:\FR\FM\03APN1.SGM
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
03APN1
]]>Agencies
[Federal Register Volume 73, Number 65 (Thursday, April 3, 2008)]
[Notices]
[Pages 18310-18311]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-6871]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57575; File No. SR-Phlx-2008-06]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Order Approving Proposed Rule Change, as Modified by Amendment No. 1
Thereto, Relating to U.S. Dollar-Settled FCO Spot Prices
March 28, 2008.
I. Introduction
On January 28, 2008, the Philadelphia Stock Exchange, Inc.
(``Phlx'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to amend the definition of Spot
Price so that the Exchange may use certain bid and ask prices
(``Thomson Quotes'') provided by Tenfore Systems Limited (``Tenfore'')
through Thomson Financial LLC (``Thomson'') as Spot Prices in
determining applicable margin requirements and strike prices for the
Exchange's U.S. dollar-settled foreign currency options (``FCOs''). On
February 19, 2008, the Exchange filed Amendment No. 1 to the proposed
rule change. The proposed rule change, as modified by Amendment No. 1,
was published for comment in the Federal Register on February 27,
2008.\3\ The Commission received no comments on the proposal. This
order approves the proposed rule change, as modified by Amendment No.
1.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 57361 (February 20,
2008), 73 FR 10503.
---------------------------------------------------------------------------
II. Description of the Proposal
Phlx proposes to amend the definition of Spot Price to permit the
Exchange to use the Thomson Quotes to calculate the Spot Prices in
connection with the Exchange's determination of strike prices and
margin requirements for its U.S. dollar-settled FCOs.\4\ Under Phlx
[[Page 18311]]
Rule 1012, ``Series of Options Open for Trading,'' the Exchange is
required to refer to the spot prices of foreign currencies in
determining strike prices for U.S. dollar-settled FCOs. Further, Phlx
Rule 722, ``Margin Accounts,'' requires the Exchange to establish
margin requirements for FCO transactions based upon the spot price of
the foreign currency underlying the option.
---------------------------------------------------------------------------
\4\ The Exchange is also proposing to substitute the term ``Spot
Prices'' for the defined term ``Spot Sales Prices'' in Rule
1000(b)(16), as a clarification that this defined term includes both
bids and offers made by participants in the foreign currency markets
(as opposed to offers only). In addition, the Exchange is proposing
to amend Rule 722 such that the current spot market price of an
underlying foreign currency shall be determined using spot prices at
4 (the close of trading for U.S. dollar-settled FCOs) rather than
2:30 (the close of trading for physical delivery FCOs).
---------------------------------------------------------------------------
Currently, the Exchange receives Spot Prices that are contributor
bank quotes from Reuters in real-time and takes the weighted average of
the various quotes to determine the Phlx's foreign currency spot
price.\5\ The Exchange now seeks to amend the definition of Spot Prices
to include foreign currency quotes of entities other than commercial
banks, so that the Exchange can use the Thomson Quotes to calculate
Spot Prices for the setting of margin requirements and strike prices
and for any other necessary purposes in connection with Phlx's FCO
contracts. Thomson Quotes are not limited to quotes from banks but also
include quotes from other foreign currency market participants.
---------------------------------------------------------------------------
\5\ Until March 14, 2008, in connection with its physical
delivery FCOs, when the Exchange received the bid and ask from the
Reuters feed, the Exchange computed the average and distributed that
value as the foreign currency spot value over the facilities of the
Options Price Reporting Authority (``OPRA'') to vendors and
individual customers. The Exchange ceased disseminating this foreign
currency spot value after March 14, 2008, in connection with the
planned delisting of its physical delivery FCO contracts.
---------------------------------------------------------------------------
Under the proposal, the Exchange will receive the latest Thomson
Quotes from Thomson, which in turn obtains this data from Tenfore.\6\
With the exception of the Japanese yen, the Exchange will then
calculate the average of the bid and ask received to determine the
current spot market price that the Exchange will use for purposes of
calculating margin requirements and strike prices with respect to U.S.
dollar-settled FCOs. Because the Thomson Quote is expressed differently
for the Japanese yen than for the other currencies (in foreign currency
units per U.S. dollar rather than in U. S. dollars per unit of foreign
currency), the spot price that Phlx will use for the Japanese yen will
be the inverse of the average of the Thomson Quote bid and ask (that
is, one divided by the average of the Thomson Quote bid and ask).
---------------------------------------------------------------------------
\6\ Tenfore has more than 21 contributors reporting, consisting
of banks, spot currency portals, the European Central Bank, and
brokers. Tenfore's bid and ask Spot Prices are at any given point in
time the latest bid and ask supplied to Tenfore by the last in time
of any Tenfore contributor to report.
---------------------------------------------------------------------------
The Exchange will not disseminate the current spot market value it
calculates based upon the Thomson Quotes. However, the Exchange
currently does, and will continue to, disseminate its modified spot
value, which is also based upon the Thomson Quotes, real-time over
Network B of the Consolidated Tape Association.\7\ The Exchange states
that this modified spot value is more widely distributed, carried by
more vendors, and more easily accessible than the Exchange's current
foreign currency spot market price calculated on the basis of the bank
quotes provided by Reuters.
---------------------------------------------------------------------------
\7\ The Exchange currently disseminates, over the facilities of
the Consolidated Tape Association at least once every fifteen
seconds while the Exchange is open for trading, a modified spot rate
for currencies underlying U.S. dollar-settled FCOs. The Exchange
does not propose to change the modified spot rate in this proposed
rule change. See Securities Exchange Act Release Nos. 55513 (March
22, 2007), 72 FR 14636 (March 28, 2007) (SR-Phlx-2007-28) and 56034
(July 10, 2007), 72 FR 38853 (July 16, 2007) (SR-Phlx-2007-34).
---------------------------------------------------------------------------
III. Discussion
After careful review, the Commission finds that the proposed rule
change, as amended, is consistent with the requirements of the Act and
the rules and regulations thereunder applicable to a national
securities exchange and, in particular, with Section 6(b)(5) of the
Act,\8\ which requires, among other things, that the rules of a
national securities exchange be designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to, and perfect the
mechanism of, a free and open market and a national market system and,
in general, to protect investors and the public interest.\9\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b)(5).
\9\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
The Commission believes that Exchange's use of Thomson Quotes for
determining Spot Prices for the setting of margin requirements and
strike prices for Phlx's U.S.-dollar settled FCOs is reasonable and
should result in Phlx Spot Prices that are representative of foreign
currency spot market prices. Although the Exchange will not disseminate
the current Spot Prices it calculates based upon the Thomson Quotes,
the Commission believes that sufficient venues exist for obtaining
reliable information on the foreign currencies so that investors in
U.S. dollar-settled FCOs can monitor the underlying spot market,
including the Exchange's dissemination of a modified spot rate for
foreign currencies at least once every fifteen seconds while the
Exchange is open for trading. The Commission also notes that the
Exchange has represented that it believes that the new method of
calculating Phlx Spot Prices should, over time, produce only minor
differences from the current method of determining Spot Prices.
Accordingly, the Commission finds that the proposed rule change, as
amended, is consistent with the Act.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\10\ that the proposed rule change (SR-Phlx-2008-06), as modified
by Amendment No. 1, be, and hereby is, approved.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-6871 Filed 4-2-08; 8:45 am]
BILLING CODE 8011-01-P
