Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Order Granting Approval of a Proposed Rule Change, as Modified by Amendment Nos. 1 and 2 Thereto, Relating to Obvious Errors, 24100-24101 [E8-9539]

Download as PDF 24100 Federal Register / Vol. 73, No. 85 / Thursday, May 1, 2008 / Notices 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 No. SR–Amex–2008–14 on the subject line. Paper Comments pwalker on PROD1PC71 with NOTICES • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57712; File No. SR–Phlx– 2007–69] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Order Granting Approval of a Proposed Rule Change, as Modified by Amendment Nos. 1 and 2 Thereto, Relating to Obvious Errors April 24, 2008. I. Introduction On September 4, 2007, the Philadelphia Stock Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with the All submissions should refer to File Securities and Exchange Commission Number SR–Amex–2008–14. This file (‘‘Commission’’), pursuant to Section number should be included on the 19(b)(1) of the Securities Exchange Act subject line if e-mail is used. To help the of 1934 (‘‘Act’’) 1 and Rule 19b–4 Commission process and review your thereunder,2 a proposed rule change to comments more efficiently, please use amend Phlx Rule 1092, the Exchange’s only one method. The Commission will obvious error rule (‘‘Obvious Error post all comments on the Commission’s Rule’’). On February 29, 2008, the Internet Web site (http://www.sec.gov/ Exchange filed Amendment No. 1 to the rules/sro.shtml). Copies of the proposed rule change. On March 11, submission, all subsequent 2008, the Exchange filed Amendment amendments, all written statements No. 2 to the proposal. The proposed rule with respect to the proposed rule change, as modified, was published for change that are filed with the comment in the Federal Register on March 18, 2008.3 The Commission Commission, and all written received no comment letters on the communications relating to the proposal, as modified. This order proposed rule change between the Commission and any person, other than approves the proposed rule change, as modified by Amendment Nos. 1 and 2. those that may be withheld from the The Exchange proposes to amend public in accordance with the Rule 1092 to: (i) Change the definition provisions of 5 U.S.C. 552, will be of Theoretical Price to mean either the available for inspection and copying in last National Best Bid price, with the Commission’s Public Reference Room, on official business days between respect to an erroneous sell transaction or the last National Best Offer price, the hours of 10 a.m. and 3 p.m. Copies with respect to an erroneous buy of such filing also will be available for transaction, just prior to the trade; (ii) inspection and copying at the principal allow an Options Exchange Official 4 to office of Amex. All comments received establish the Theoretical Price when will be posted without change; the there are no quotes for comparison Commission does not edit personal purposes, or when the National Best identifying information from Bid/Offer (‘‘NBBO’’) for the affected submissions. You should submit only series, just prior to the erroneous information that you wish to make transaction, was at least two times the available publicly. All submissions permitted bid/ask differential permitted should refer to File Number SR–Amex– under Exchange Rule 1014(c)(1)(A)(i)(a); 2008–14 and should be submitted on or (iii) establish the Theoretical Price for before May 22, 2008. transactions occurring as part of the Exchange’s automated opening system For the Commission, by the Division of as the first quote after the transaction(s) Trading and Markets, pursuant to delegated in question that does not reflect the authority.5 erroneous transaction(s); (iv) determine Florence E. Harmon, the average quote width for the Deputy Secretary. underlying security by adding the quote [FR Doc. E8–9523 Filed 4–30–08; 8:45 am] widths of sample quotations at regular BILLING CODE 8010–01–P 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Securities Exchange Act Release No. 57482 (March 12, 2008), 73 FR 14544. 4 See Phlx Rule 1(pp). 2 17 5 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 17:13 Apr 30, 2008 Jkt 214001 PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 15-second intervals during the two minutes preceding and following an erroneous transaction; (v) delete the provision pertaining to trades that are automatically executed when the specialist or Registered Options Trader (‘‘ROT’’) sells $.10 or more below parity; (vi) permit nullification of transactions that occur during trading halts in the affected option on the Exchange or in the underlying security in specified situations; and (vii) increase the time period, which varies depending on the status of the party, within which a party who believes it participated in an erroneous transaction must notify the Exchange’s Market Surveillance Department, and allow a longer notification time period for certain erroneous transactions involving a nonbroker-dealer customer that occur as part of the Phlx’s automated opening process. 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 and, in particular, the requirements of Section 6(b) of the Act 6 and the rules and regulations thereunder. Specifically, the Commission finds that the proposal is consistent with Section 6(b)(5) of the Act,7 in that the proposal is designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, protect investors and the public interest. The Commission considers that, in most circumstances, trades that are executed between parties should be honored. On rare occasions, the price of the executed trade indicates an ‘‘obvious error’’ may exist, suggesting that it is unrealistic to expect that the parties to the trade had come to a meeting of the minds regarding the terms of the transaction. In the Commission’s view, the determination of whether an ‘‘obvious error’’ has occurred should be based on specific and objective criteria and subject to specific and objective procedures. The Commission believes that the proposed revisions to the definition of Theoretical Price provide clear and objective standards for determining when an obvious price error exists. The Commission also believes that the proposed revisions to the time periods 5 In approving this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(5). E:\FR\FM\01MYN1.SGM 01MYN1 Federal Register / Vol. 73, No. 85 / Thursday, May 1, 2008 / Notices for requesting review of a transaction, including for certain erroneous transactions involving a non-brokerdealer customer that occur during the Exchange’s automated opening process, as well as the proposal to sample quotations at 15-second intervals to determine the average quote width of the underlying security, represent reasonable modifications to the Obvious Error Rule. Furthermore, the Commission believes that eliminating the provision pertaining to trades that are automatically executed when the specialist or ROT sells $.10 or more below parity and permitting the nullification of transactions that occur during trading halts in the affected option on the Exchange or in the underlying security in specified situations are clear and objective. Therefore, the Commission believes that the proposed changes to the Obvious Error Rule are appropriate. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,8 that the proposed rule change (SR–Phlx–2007– 69), as modified by Amendment Nos. 1 and 2, is hereby approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–9539 Filed 4–30–08; 8:45 am] BILLING CODE 8010–01–P SMALL BUSINESS ADMINISTRATION Small Business Size Standards: Waiver of the Nonmanufacturer Rule U.S. Small Business Administration. ACTION: Notice of waiver of the Nonmanufacturer Rule for Safety Zone Rubber Gloves Manufacturing product number 9999. pwalker on PROD1PC71 with NOTICES AGENCY: SUMMARY: The U.S. Small Business Administration (SBA) is granting a waiver of the Nonmanufacturer Rule for Safety Zone Rubber Gloves Manufacturing. The basis for waiver is that no small business manufacturers are supplying this class of product to the Federal government. The effect of a waiver would be to allow otherwise qualified regular dealers to supply the products of any domestic manufacturer on a Federal contract set aside for small businesses; service-disabled veteran-owned small 8 15 9 17 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). VerDate Aug<31>2005 17:13 Apr 30, 2008 Jkt 214001 businesses or SBA’s 8(a) Business Development Program. DATES: This waiver is effective May 16, 2008. FOR FURTHER INFORMATI0N CONTACT: Pamela M. McClam, Program Analyst, by telephone at (202) 205–7408; by FAX at (202) 481–4783; or by e-mail at Pamela.McClam@sba.gov. Section 8(a)(17) of the Small Business Act, (Act) 15 U.S.C. 637(a)(17), requires that recipients of Federal contracts set aside for small businesses, service-disabled veteran-owned small businesses, or SBA’s 8(a) Business Development Program provide the product of a small business manufacturer or processor, if the recipient is other than the actual manufacturer or processor of the product. This requirement is commonly referred to as the Nonmanufacturer Rule. The SBA regulations imposing this requirement are found at 13 CFR 121.406(b). Section 8(a)(17)(b)(iv) of the Act authorizes SBA to waive the Nonmanufacturer Rule for any ‘‘class of products’’ for which there are no small business manufacturers or processors available to participate in the Federal market. As implemented in SBA’s regulations at 13 CFR 121.1202(c), in order to be considered available to participate in the Federal market for a class of products, a small business manufacturer must have submitted a proposal for a contract solicitation or received a contract from the Federal government within the last 24 months. The SBA defines ‘‘class of products’’ based on six digit coding systems. The first coding system is the Office of Management and Budget North American Industry Classification System (NAICS). The second is the Product and Service Code required as a data entry field by the Federal Procurement Data System. The SBA received a request on February 26, 2008, to waive the Nonmanufacturer Rule for Safety Zone Rubber Gloves Manufacturing. In response, on April 8, 2008, SBA published in the Federal Register a notice of intent to waive the Nonmanufacturer Rule for Safety Zone Rubber Gloves Manufacturing. SBA explained in the notice that it was soliciting comments and sources of small business manufacturers of this class of products. No comments were received in response to this notice. SBA has determined that there are no small business manufacturers of this class of products, and is therefore granting the waiver of the Nonmanufacturer Rule for Safety Zone Rubber Gloves SUPPLEMENTARY INFORMATION: PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 24101 Manufacturing. NAICS code 339113 product number 9999. Authority: 15 U.S.C. 637(a)(17). Linda S. Korbol, Acting Director for Government Contracting. [FR Doc. E8–9551 Filed 4–30–08; 8:45 am] BILLING CODE 8025–01–P SMALL BUSINESS ADMINISTRATION Small Business Size Standards: Waiver of the Nonmanufacturer Rule U.S. Small Business Administration. ACTION: Notice of waiver of the Nonmanufacturer Rule for Trash Bags Manufacturing product number 8105. AGENCY: SUMMARY: The U.S. Small Business Administration (SBA) is granting a waiver of the Nonmanufacturer Rule for Trash Bags Manufacturing. The basis for waiver is that no small business manufacturers are supplying this class of product to the Federal government. The effect of a waiver would be to allow otherwise qualified regular dealers to supply the products of any domestic manufacturer on a Federal contract set aside for small businesses; service-disabled veteran-owned small businesses or SBA’s 8(a) Business Development Program. DATES: This waiver is effective May 16, 2008. FOR FURTHER INFORMATION CONTACT: Pamela M. McClam, Program Analyst, by telephone at (202) 205–7408; by FAX at (202) 481–4783; or by e-mail at Pamela.McClam@sba.gov. SUPPLEMENTARY INFORMATION: Section 8(a)(17) of the Small Business Act, (Act) 15 U.S.C. 637(a)(17), requires that recipients of Federal contracts set aside for small businesses, service-disabled veteran-owned small businesses, or SBA’s 8(a) Business Development Program provide the product of a small business manufacturer or processor, if the recipient is other than the actual manufacturer or processor of the product. This requirement is commonly referred to as the Nonmanufacturer Rule. The SBA regulations imposing this requirement are found at 13 CFR 121.406 (b). Section 8(a)(17)(b)(iv) of the Act authorizes SBA to waive the Nonmanufacturer Rule for any ‘‘class of products’’ for which there are no small business manufacturers or processors available to participate in the Federal market. As implemented in SBA’s regulations at 13 CFR 121.1202 (c), in order to be considered available to participate in the Federal market for a class of E:\FR\FM\01MYN1.SGM 01MYN1

Agencies

[Federal Register Volume 73, Number 85 (Thursday, May 1, 2008)]
[Notices]
[Pages 24100-24101]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-9539]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57712; File No. SR-Phlx-2007-69]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Order Granting Approval of a Proposed Rule Change, as Modified by 
Amendment Nos. 1 and 2 Thereto, Relating to Obvious Errors

April 24, 2008.

I. Introduction

    On September 4, 2007, 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 Phlx Rule 1092, the 
Exchange's obvious error rule (``Obvious Error Rule''). On February 29, 
2008, the Exchange filed Amendment No. 1 to the proposed rule change. 
On March 11, 2008, the Exchange filed Amendment No. 2 to the proposal. 
The proposed rule change, as modified, was published for comment in the 
Federal Register on March 18, 2008.\3\ The Commission received no 
comment letters on the proposal, as modified. This order approves the 
proposed rule change, as modified by Amendment Nos. 1 and 2.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 57482 (March 12, 2008), 
73 FR 14544.
---------------------------------------------------------------------------

    The Exchange proposes to amend Rule 1092 to: (i) Change the 
definition of Theoretical Price to mean either the last National Best 
Bid price, with respect to an erroneous sell transaction or the last 
National Best Offer price, with respect to an erroneous buy 
transaction, just prior to the trade; (ii) allow an Options Exchange 
Official \4\ to establish the Theoretical Price when there are no 
quotes for comparison purposes, or when the National Best Bid/Offer 
(``NBBO'') for the affected series, just prior to the erroneous 
transaction, was at least two times the permitted bid/ask differential 
permitted under Exchange Rule 1014(c)(1)(A)(i)(a); (iii) establish the 
Theoretical Price for transactions occurring as part of the Exchange's 
automated opening system as the first quote after the transaction(s) in 
question that does not reflect the erroneous transaction(s); (iv) 
determine the average quote width for the underlying security by adding 
the quote widths of sample quotations at regular 15-second intervals 
during the two minutes preceding and following an erroneous 
transaction; (v) delete the provision pertaining to trades that are 
automatically executed when the specialist or Registered Options Trader 
(``ROT'') sells $.10 or more below parity; (vi) permit nullification of 
transactions that occur during trading halts in the affected option on 
the Exchange or in the underlying security in specified situations; and 
(vii) increase the time period, which varies depending on the status of 
the party, within which a party who believes it participated in an 
erroneous transaction must notify the Exchange's Market Surveillance 
Department, and allow a longer notification time period for certain 
erroneous transactions involving a non-broker-dealer customer that 
occur as part of the Phlx's automated opening process.
---------------------------------------------------------------------------

    \4\ See Phlx Rule 1(pp).
---------------------------------------------------------------------------

    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\ and, in 
particular, the requirements of Section 6(b) of the Act \6\ and the 
rules and regulations thereunder. Specifically, the Commission finds 
that the proposal is consistent with Section 6(b)(5) of the Act,\7\ in 
that the proposal is designed to promote just and equitable principles 
of trade, remove impediments to and perfect the mechanism of a free and 
open market and a national market system, and, in general, protect 
investors and the public interest.
---------------------------------------------------------------------------

    \5\ In approving this proposal, the Commission has considered 
the proposed rule's impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission considers that, in most circumstances, trades that 
are executed between parties should be honored. On rare occasions, the 
price of the executed trade indicates an ``obvious error'' may exist, 
suggesting that it is unrealistic to expect that the parties to the 
trade had come to a meeting of the minds regarding the terms of the 
transaction. In the Commission's view, the determination of whether an 
``obvious error'' has occurred should be based on specific and 
objective criteria and subject to specific and objective procedures.
    The Commission believes that the proposed revisions to the 
definition of Theoretical Price provide clear and objective standards 
for determining when an obvious price error exists. The Commission also 
believes that the proposed revisions to the time periods

[[Page 24101]]

for requesting review of a transaction, including for certain erroneous 
transactions involving a non-broker-dealer customer that occur during 
the Exchange's automated opening process, as well as the proposal to 
sample quotations at 15-second intervals to determine the average quote 
width of the underlying security, represent reasonable modifications to 
the Obvious Error Rule. Furthermore, the Commission believes that 
eliminating the provision pertaining to trades that are automatically 
executed when the specialist or ROT sells $.10 or more below parity and 
permitting the nullification of transactions that occur during trading 
halts in the affected option on the Exchange or in the underlying 
security in specified situations are clear and objective. Therefore, 
the Commission believes that the proposed changes to the Obvious Error 
Rule are appropriate.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-Phlx-2007-69), as modified by 
Amendment Nos. 1 and 2, is hereby approved.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-9539 Filed 4-30-08; 8:45 am]
BILLING CODE 8010-01-P