Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change Relating to Access to XLE on Phlx's Options Floor, 22199-22201 [E8-8874]
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Federal Register / Vol. 73, No. 80 / Thursday, April 24, 2008 / Notices
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
Nancy M. Morris,
Secretary.
[FR Doc. E8–8878 Filed 4–23–08; 8:45 am]
BILLING CODE 8010–01–P
22199
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
SECURITIES AND EXCHANGE
COMMISSION
• 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–NYSE–2008–30 on the
subject line.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[Release No. 34–57683; File No. SR–Phlx–
2008–27]
1. Purpose
Paper Comments
April 18, 2008.
Electronic Comments
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing of Proposed Rule
Change Relating to Access to XLE on
Phlx’s Options Floor
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 April 11,
2008, the Philadelphia Stock Exchange,
Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
All submissions should refer to File
Commission (‘‘Commission’’) the
Number SR–NYSE–2008–30. This file
proposed rule change as described in
number should be included on the
subject line if e-mail is used. To help the Items I, II, and III, below, which Items
have been substantially prepared by the
Commission process and review your
Phlx. The Commission is publishing
comments more efficiently, please use
only one method. The Commission will this notice to solicit comments on the
post all comments on the Commission’s proposed rule change from interested
persons.
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
I. Self-Regulatory Organization’s
submission, all subsequent
Statement of the Terms of Substance of
amendments, all written statements
the Proposed Rule Change
with respect to the proposed rule
The Exchange proposes to delete Phlx
change that are filed with the
Rule 1014(e)(iii), which limits the
Commission, and all written
actions of Registered Options Traders
communications relating to the
(‘‘ROTs’’) related to trading in Phlx’s
proposed rule change between the
equity market in certain situations, and
Commission and any person, other than adopt Phlx Rule 175 prohibiting an XLE
those that may be withheld from the
Market Maker from acting as an options
public in accordance with the
specialist or option market maker in
provisions of 5 U.S.C. 552, will be
options overlying the securities in
available for inspection and copying in
which the XLE Market Maker is
registered.
the Commission’s Public Reference
The text of the proposed rule change
Room, 100 F Street, NE., Washington,
is available at the Exchange, the
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. Commission’s Public Reference Room,
and https://www.phlx.com.
Copies of such filing also will be
available for inspection and copying at
II. Self-Regulatory Organization’s
the principal office of the NYSE. All
Statement of the Purpose of, and
comments received will be posted
Statutory Basis for, the Proposed Rule
without change; the Commission does
Change
not edit personal identifying
In its filing with the Commission, the
information from submissions. You
Exchange included statements
should submit only information that
concerning the purpose of and basis for
you wish to make available publicly. All the proposed rule change and discussed
submissions should refer to File
any comments it received on the
Number SR–NYSE–2008–30 and should
27 17 CFR 200.30–3(a)(12).
be submitted on or before May 15, 2008.
sroberts on PROD1PC70 with NOTICES
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
1 15
2 17
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16:15 Apr 23, 2008
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PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00075
Fmt 4703
Sfmt 4703
The purpose of the proposed rule
change is to clarify that members and
member organizations on the Phlx
options floor are permitted to have
connectivity to XLE, Phlx’s electronic
equity trading system. XLE provides to
those Phlx member organizations and
their Sponsored Participants authorized
to enter orders on the system (‘‘XLE
Participants’’) a system for the entry and
execution of NMS Stock orders. XLE is
the sole means on Phlx to enter and
execute NMS Stock orders; the physical
equity trading floor has been
discontinued.3 The Exchange states that,
in the past, Phlx’s physical equity and
options floor were separated by a wall,
which required a member to leave one
floor and walk to the other floor in order
to participate on the other floor. In
addition, the wall prevented any line of
sight or line of hearing between the two
floors. Specifically, the wall helped to
prevent someone on one floor from
using information gained there on the
other floor without first physically
leaving the one floor and walking to the
other, thereby mitigating the ‘‘time and
place’’ advantage gained from being on
that floor.4
When XLE started, the trading of NMS
Stocks on Phlx ceased to take place on
a physical floor and, instead, now takes
place electronically according to the
algorithms programmed in the software
that operates XLE.5 XLE Participants
cannot alter these algorithms, nor does
the identity of a XLE Participant affect
the execution of the order. Access to
XLE is available to XLE Participants
through an Exchange electronic
interface by means of their own
communication lines or through lines
established by service providers in the
business of maintaining connectivity in
the securities marketplace. In addition,
XLE Participants may access XLE for the
entry of two-sided orders through
3 See
Phlx Rule 160.
Rule 606 regulates the use of electronic and
telephonic means of communication on the floor.
5 See Securities Exchange Act Release No. 54538
(September 28, 2006), 71 FR 59184 (October 6,
2006).
4 Phlx
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22200
Federal Register / Vol. 73, No. 80 / Thursday, April 24, 2008 / Notices
sroberts on PROD1PC70 with NOTICES
technology provided by the Exchange.6
The Exchange states that all information
about the price and size of executions
on XLE is made available to both XLE
Participants and non-XLE Participants
at the same time and in the same
manner; it may be accessed by means of
the consolidated tape plans or by means
of Phlx’s own depth of book feed, both
of which are available to XLE
Participants and non-XLE Participants
in a non-discriminatory manner. Phlx
further states that, with the
discontinuation of the physical equity
floor, there is no longer any time and
place advantage to any XLE Participant
using XLE. All information about the
price and size of executions on XLE is
made available simultaneously to
anyone, including XLE Participants and
to those persons who may be on the
Phlx options floor.
Therefore, the Exchange submits that
connectivity to trading on XLE from the
Phlx options floor does not present an
advantage for either trading on XLE or
to trading on the Phlx options floor. In
fact, options floor participants currently
have access to other execution venues
and order routing mechanisms for the
underlying securities. Possession of XLE
order entry technology does not give the
possessor any special information
advantage that could be used on the
Phlx options floor because access to
XLE information is available to all on a
non-discriminatory basis. In addition,
physical presence on the Phlx options
floor does not provide an advantage in
priority for orders entered into XLE
from the Phlx options floor because XLE
executes orders in price-time priority
based on a pre-set algorithm that is
unalterable by the XLE Participant
entering the order and does not take into
account the location where an order is
entered. In order to further facilitate
connectivity to trading on XLE in all
securities, Phlx proposes to delete Phlx
Rule 1014(e)(iii), which places
restrictions on ROTs trading in options
after trading in the underlying security.
To address concerns about Integrated
Market Making,7 in particular
possession by options Specialists or
Registered Options Traders of nonpublic information in the options
market that could be used if they were
also a Market Maker on XLE 8 in the
6 The technology provided by the Exchange does
not disseminate any information about orders or
executions on XLE other than those of the XLE
Participant entering the orders.
7 Integrated Market Making involves making
market in both options and the securities
underlying those options.
8 See Phlx Rule 1(l). Market Makers must be
member organizations. See Phlx Rule 170(b).
VerDate Aug<31>2005
16:15 Apr 23, 2008
Jkt 214001
underlying equity security,9 the
Exchange proposes new Phlx Rule 175,
which prohibits Integrated Market
Making to prevent the potential misuse
non-public information. Specifically,
proposed Phlx Rule 175 prohibits
Market Makers on XLE, or any member,
limited partner, officer, or associated
person thereof, from acting as an
options Specialist, Registered Options
Trader or functioning in any capacity
involving market making
responsibilities, in any option overlying
a security in which the Market Maker on
XLE is registered as such. For example,
an affiliate of a Market Maker on XLE
registered in equity security IBM would
be prohibited from becoming the
options Specialist in options on IBM. In
addition, proposed Phlx Rule 175 would
prohibit a member organization whose
member was a Registered Options
Trader in options on IBM from
becoming a Market Maker on XLE
registered in the equity security IBM.
This would be prohibited because that
Market Maker on XLE would then have
an associated person who is a Registered
Options Trader in an option overlying a
security in which the Market Maker on
XLE would be registered.
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, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest, by
providing another venue for persons on
the Phlx options floor to execute orders
in NMS Stocks. Currently, persons on
the Phlx options floor have access to
other execution venues and order
routing mechanisms for the underlying
securities. This proposed rule change
would permit those persons access to
XLE, thereby increasing the markets
available for execution of their orders.
Additionally, this proposal would
prohibit a Market Maker on XLE or any
member, limited partner, officer, or
associated person thereof from acting as
9 The information available to options Specialist
and Registered Options Traders from XLE does not
raise similar concerns. XLE is electronic and does
not operate as a traditional physical trading floor
where physical presence could provide a
participant with information that is not otherwise
publicly available. All information about orders and
trades on XLE is available to everyone
simultaneously over the consolidated tape and over
XLE’s market data feed.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
an options Specialist, Registered
Options Trader or function in any
capacity involving market making
responsibilities, in any option overlying
a security in which the Market Maker on
XLE is registered as such. This
prohibition would prevent the use of
non-public information in the options
market by options Specialists or
Registered Options Traders that could
be used if they were also a Market
Maker on XLE in the underlying
security.
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.
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 Exchange consents,
the Commission shall:
(a) By order approve such proposed
rule change, or
(b) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Phlx–2008–27 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
E:\FR\FM\24APN1.SGM
24APN1
Federal Register / Vol. 73, No. 80 / Thursday, April 24, 2008 / Notices
100 F Street, NE., Washington, DC
20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
All submissions should refer to File
Number SR–Phlx–2008–27. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–Phlx–2008–27 and should
be submitted on or before May 15, 2008.
[File No. 500–1]
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Nancy M. Morris,
Secretary.
[FR Doc. E8–8874 Filed 4–23–08; 8:45 am]
sroberts on PROD1PC70 with NOTICES
BILLING CODE 8010–01–P
12 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
21:11 Apr 23, 2008
Jkt 214001
In the Matter of Advanced Precision
Technology, Inc. (n/k/a Exact
Identification Corp.), Alta Gold Co.,
Decisionlink, Inc., Dover Petroleum
Corp., Enviro Energy Corp.,
Languageware.net Co. Ltd., Playstar
Wyoming Holding Corp. (n/k/a Playstar
Corp.), Uncle B’s Bakery, Inc. (n/k/a Ise
Blu Equity Corp.), and Wavo Corp.;
Order of Suspension of Trading
April 21, 2008.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Advanced
Precision Technology, Inc. (n/k/a Exact
Identification Corp.) because it has not
filed any periodic reports since the
period ended March 31, 2001.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Alta Gold
Co. because it has not filed any periodic
reports since the period ended
September 30, 1999.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of
Decisionlink, Inc. because it has not
filed any periodic reports since the
period ended September 30, 2001.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Dover
Petroleum Corp. because it has not filed
any periodic reports since the period
ended March 31, 2004.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Enviro
Energy Corp. because it has not filed
any periodic reports since the period
ended March 31, 2004.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of
Languageware.net Co. Ltd. because it
has not filed any periodic reports since
the period ended September 30, 2000.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Playstar
Wyoming Holding Corp. (n/k/a Playstar
Corp.) because it has not filed any
periodic reports since the period ended
June 30, 2002.
It appears to the Securities and
Exchange Commission that there is a
PO 00000
Frm 00077
Fmt 4703
Sfmt 4703
22201
lack of current and accurate information
concerning the securities of Uncle B’s
Bakery, Inc. (n/k/a Ise Blu Equity Corp.)
because it has not filed any periodic
reports since the period ended April 30,
1998.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Wavo Corp.
because it has not filed any periodic
reports since the period ended
September 30, 2000.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
companies.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
securities of the above-listed companies
is suspended for the period from 9:30
a.m. EDT on April 21, 2008, through
11:59 p.m. EDT on May 2, 2008.
By the Commission.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 08–1178 Filed 4–21–08; 3:39 pm]
BILLING CODE 8010–01–P
DEPARTMENT OF STATE
[Public Notice 6196]
Bureau of Educational and Cultural
Affairs (ECA) Request for Grant
Proposals: Timor Leste and South
Pacific Scholarship Programs
Announcement Type: New
Cooperative Agreement(s).
Funding Opportunity Number: ECA/
A/E/EAP–08–01.
Catalog of Federal Domestic
Assistance Number: 00.000.
Application Deadline: May 28, 2008.
Executive Summary: The Office of
Academic Programs of the Bureau of
Educational and Cultural Affairs
announces an open competition to
administer the United States-Timor
Leste (USTL) Scholarship Program and
the United States-South Pacific (USSP)
Scholarship Program. Eligible
applicants may submit a proposal to
administer one or both of the
scholarship programs. Public and
private non-profit organizations meeting
the provisions described in Internal
Revenue Code section 26 U.S.C.
501(c)(3) may submit proposals to
organize and carry out academic
exchange program activities for students
from Timor Leste and/or the sovereign
island nations of the South Pacific
(eligible nations are listed below in the
Overview section). The recipient(s) will
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]]>Agencies
[Federal Register Volume 73, Number 80 (Thursday, April 24, 2008)]
[Notices]
[Pages 22199-22201]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-8874]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57683; File No. SR-Phlx-2008-27]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing of Proposed Rule Change Relating to Access to XLE on
Phlx's Options Floor
April 18, 2008.
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 April 11, 2008, 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 substantially prepared by the
Phlx. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to delete Phlx Rule 1014(e)(iii), which
limits the actions of Registered Options Traders (``ROTs'') related to
trading in Phlx's equity market in certain situations, and adopt Phlx
Rule 175 prohibiting an XLE Market Maker from acting as an options
specialist or option market maker in options overlying the securities
in which the XLE Market Maker is registered.
The text of the proposed rule change is available at the Exchange,
the Commission's Public Reference Room, and https://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 Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange 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 members
and member organizations on the Phlx options floor are permitted to
have connectivity to XLE, Phlx's electronic equity trading system. XLE
provides to those Phlx member organizations and their Sponsored
Participants authorized to enter orders on the system (``XLE
Participants'') a system for the entry and execution of NMS Stock
orders. XLE is the sole means on Phlx to enter and execute NMS Stock
orders; the physical equity trading floor has been discontinued.\3\ The
Exchange states that, in the past, Phlx's physical equity and options
floor were separated by a wall, which required a member to leave one
floor and walk to the other floor in order to participate on the other
floor. In addition, the wall prevented any line of sight or line of
hearing between the two floors. Specifically, the wall helped to
prevent someone on one floor from using information gained there on the
other floor without first physically leaving the one floor and walking
to the other, thereby mitigating the ``time and place'' advantage
gained from being on that floor.\4\
---------------------------------------------------------------------------
\3\ See Phlx Rule 160.
\4\ Phlx Rule 606 regulates the use of electronic and telephonic
means of communication on the floor.
---------------------------------------------------------------------------
When XLE started, the trading of NMS Stocks on Phlx ceased to take
place on a physical floor and, instead, now takes place electronically
according to the algorithms programmed in the software that operates
XLE.\5\ XLE Participants cannot alter these algorithms, nor does the
identity of a XLE Participant affect the execution of the order. Access
to XLE is available to XLE Participants through an Exchange electronic
interface by means of their own communication lines or through lines
established by service providers in the business of maintaining
connectivity in the securities marketplace. In addition, XLE
Participants may access XLE for the entry of two-sided orders through
[[Page 22200]]
technology provided by the Exchange.\6\ The Exchange states that all
information about the price and size of executions on XLE is made
available to both XLE Participants and non-XLE Participants at the same
time and in the same manner; it may be accessed by means of the
consolidated tape plans or by means of Phlx's own depth of book feed,
both of which are available to XLE Participants and non-XLE
Participants in a non-discriminatory manner. Phlx further states that,
with the discontinuation of the physical equity floor, there is no
longer any time and place advantage to any XLE Participant using XLE.
All information about the price and size of executions on XLE is made
available simultaneously to anyone, including XLE Participants and to
those persons who may be on the Phlx options floor.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 54538 (September 28,
2006), 71 FR 59184 (October 6, 2006).
\6\ The technology provided by the Exchange does not disseminate
any information about orders or executions on XLE other than those
of the XLE Participant entering the orders.
---------------------------------------------------------------------------
Therefore, the Exchange submits that connectivity to trading on XLE
from the Phlx options floor does not present an advantage for either
trading on XLE or to trading on the Phlx options floor. In fact,
options floor participants currently have access to other execution
venues and order routing mechanisms for the underlying securities.
Possession of XLE order entry technology does not give the possessor
any special information advantage that could be used on the Phlx
options floor because access to XLE information is available to all on
a non-discriminatory basis. In addition, physical presence on the Phlx
options floor does not provide an advantage in priority for orders
entered into XLE from the Phlx options floor because XLE executes
orders in price-time priority based on a pre-set algorithm that is
unalterable by the XLE Participant entering the order and does not take
into account the location where an order is entered. In order to
further facilitate connectivity to trading on XLE in all securities,
Phlx proposes to delete Phlx Rule 1014(e)(iii), which places
restrictions on ROTs trading in options after trading in the underlying
security.
To address concerns about Integrated Market Making,\7\ in
particular possession by options Specialists or Registered Options
Traders of non-public information in the options market that could be
used if they were also a Market Maker on XLE \8\ in the underlying
equity security,\9\ the Exchange proposes new Phlx Rule 175, which
prohibits Integrated Market Making to prevent the potential misuse non-
public information. Specifically, proposed Phlx Rule 175 prohibits
Market Makers on XLE, or any member, limited partner, officer, or
associated person thereof, from acting as an options Specialist,
Registered Options Trader or functioning in any capacity involving
market making responsibilities, in any option overlying a security in
which the Market Maker on XLE is registered as such. For example, an
affiliate of a Market Maker on XLE registered in equity security IBM
would be prohibited from becoming the options Specialist in options on
IBM. In addition, proposed Phlx Rule 175 would prohibit a member
organization whose member was a Registered Options Trader in options on
IBM from becoming a Market Maker on XLE registered in the equity
security IBM. This would be prohibited because that Market Maker on XLE
would then have an associated person who is a Registered Options Trader
in an option overlying a security in which the Market Maker on XLE
would be registered.
---------------------------------------------------------------------------
\7\ Integrated Market Making involves making market in both
options and the securities underlying those options.
\8\ See Phlx Rule 1(l). Market Makers must be member
organizations. See Phlx Rule 170(b).
\9\ The information available to options Specialist and
Registered Options Traders from XLE does not raise similar concerns.
XLE is electronic and does not operate as a traditional physical
trading floor where physical presence could provide a participant
with information that is not otherwise publicly available. All
information about orders and trades on XLE is available to everyone
simultaneously over the consolidated tape and over XLE's market data
feed.
---------------------------------------------------------------------------
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, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest, by providing another venue for persons on the Phlx options
floor to execute orders in NMS Stocks. Currently, persons on the Phlx
options floor have access to other execution venues and order routing
mechanisms for the underlying securities. This proposed rule change
would permit those persons access to XLE, thereby increasing the
markets available for execution of their orders. Additionally, this
proposal would prohibit a Market Maker on XLE or any member, limited
partner, officer, or associated person thereof from acting as an
options Specialist, Registered Options Trader or function in any
capacity involving market making responsibilities, in any option
overlying a security in which the Market Maker on XLE is registered as
such. This prohibition would prevent the use of non-public information
in the options market by options Specialists or Registered Options
Traders that could be used if they were also a Market Maker on XLE in
the underlying security.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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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.
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 Exchange consents, the Commission shall:
(a) By order approve such proposed rule change, or
(b) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-Phlx-2008-27 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission,
[[Page 22201]]
100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-Phlx-2008-27. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-2008-27 and should be
submitted on or before May 15, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Nancy M. Morris,
Secretary.
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\12\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E8-8874 Filed 4-23-08; 8:45 am]
BILLING CODE 8010-01-P
