Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Its Payment for Order Flow Pilot Program, 31177-31179 [E8-12110]
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Federal Register / Vol. 73, No. 105 / Friday, May 30, 2008 / Notices
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay set forth in Rule 19b–4(f)(6)(iii)
under the Act, which would make the
rule change operative upon filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because such waiver would
immediately allow the Exchange to
disseminate this supplemental
information prior to the execution of the
opening and closing transactions on the
NYSE. Accordingly, the Commission
designates the proposal to be operative
upon filing with the Commission.16
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2008–41 on the
subject line.
sroberts on PROD1PC70 with NOTICES
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2008–41. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
along with a brief description and text of the
proposed rule change, at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. NYSE has satisfied the pre-filing
notice requirement.
16 For purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
VerDate Aug<31>2005
16:52 May 29, 2008
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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 NYSE. 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–NYSE–2008–41 and should
be submitted on or before June 20, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–12075 Filed 5–29–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57851; File No. SR–Phlx–
2008–38]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change Relating to Its Payment for
Order Flow Pilot Program
May 22, 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 May 19,
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
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
have been substantially prepared by the
Exchange. Phlx has designated this
proposal as one establishing or changing
a due, fee, or other charge imposed by
Phlx under Section 19(b)(3)(A)(ii) of the
Act 3 and Rule 19b–4(f)(2) thereunder,4
which renders the proposal effective
upon filing with the Commission. 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 extend its
payment for order flow pilot program,
which is currently in effect until May
27, 2008, for an additional one-year
period until May 27, 2009. The
Exchange also proposes to make a minor
clarifying amendment to the payment
for order flow fee section of the
Exchange’s fee schedule. Other than
extending the date of the pilot program
for an additional year and making the
minor technical amendment to the
Exchange’s fee schedule, no other
changes to the Exchange’s current
payment for order flow program are
being proposed at this time.
The text of the proposed rule change
is available at the principal office of 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. 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 Exchange states that the purpose
of extending the Exchange’s payment for
order flow program for an additional
year is to remain competitive with other
17 17
1 15
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31177
3 15
4 17
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
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Federal Register / Vol. 73, No. 105 / Friday, May 30, 2008 / Notices
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options exchanges that administer
payment for order flow programs.5
Currently, the following payment for
order flow fees are in effect at the
Exchange: 6 (1) Equity options (other
than those equity options that trade as
part of the Exchange’s Penny Pilot
Program),7 options on the Russell 2000
Index 8 traded under the symbol RUT,
and options on the one-tenth value
Russell 2000 Index traded under the
symbol RMN, are all assessed $0.70 per
contract; and (2) equity options that
trade as part of the Exchange’s Penny
Pilot Program are assessed $0.25 per
contract. Trades resulting from either
Directed 9 or non-Directed Orders that
are delivered electronically and
executed on the Exchange are assessed
a payment for order flow fee,10 while
non-electronically-delivered orders (i.e.,
5 See, e.g., Securities Exchange Act Release Nos.
57094 (January 3, 2008), 73 FR 1653 (January 9,
2008) (SR–CBOE–2007–154); 55895 (June 11, 2007),
72 FR 33549 (June 18, 2007) (SR–ISE–2007–38);
55328 (February 21, 2007), 72 FR 9050 (February
28, 2007) (SR–Amex–2007–16); and 53341
(February 21, 2006), 71 FR 10085 (February 28,
2006) (SR–Amex–2006–15).
6 See, e.g., Securities Exchange Act Release Nos.
53841 (May 19, 2006), 71 FR 30461 (May 26, 2006)
(SR–Phlx–2006–33); 54297 (August 9, 2006), 71 FR
47280 (August 16, 2006) (SR–Phlx–2006–47); 54485
(September 22, 2006), 71 FR 57017 (September 28,
2006) (SR–Phlx–2006–56); 55290 (February 13,
2007), 72 FR 8051 (February 22, 2007) (SR–Phlx–
2007–05); 55473 (March 13, 2007), 72 FR 13338
(March 21, 2007) (SR–Phlx–2007–12); and 55891
(June 11, 2007), 72 FR 33271 (June 15, 2007) (SR–
Phlx–2007–39).
7 The current Penny Pilot Program, in effect
through March 27, 2009, permits certain options
series to be quoted and traded in increments of
$0.01. See Securities Exchange Act Release No.
56563 (September 27, 2007), 72 FR 56429 (October
3, 2007) (SR–Phlx–2007–62).
8 The Exchange states that Russell 2000 is a
trademark and service mark of the Frank Russell
Company, used under license. Neither Frank
Russell Company’s publication of the Russell
Indexes nor its licensing of its trademarks for use
in connection with securities or other financial
products derived from a Russell Index in any way
suggests or implies a representation or opinion by
Frank Russell Company as to the attractiveness of
investment in any securities or other financial
products based upon or derived from any Russell
Index. Frank Russell Company is not the issuer of
any such securities or other financial products and
makes no express or implied warranties of
merchantability or fitness for any particular
purpose with respect to any Russell Index or any
data included or reflected therein, nor as to results
to be obtained by any person or any entity from the
use of the Russell Index or any data included or
reflected therein.
9 See Securities Exchange Act Release No. 57094
(May 21, 2008) (SR–Phlx–2008–38) (approving the
Exchange’s Directed Order Program on a permanent
basis).
10 Specialists and Directed ROTs who participate
in the Exchange’s payment for order flow program
are assessed a payment for order flow fee, in
addition to ROTs. Therefore, the payment for order
flow fee is assessed, in effect, on equity option
transactions between a customer and an ROT, a
customer and a Directed ROT, or a customer and
a specialist.
VerDate Aug<31>2005
16:52 May 29, 2008
Jkt 214001
represented by a floor broker) are not
assessed a payment for order flow fee.11
Additionally, payment for order flow
fees are not assessed on transactions
executed on the Exchange that
correspond with an outbound Linkage
Principal Acting as Agent (‘‘P/A’’)
order.12
The Exchange states that the purpose
of making the minor technical
amendment to the payment for order
flow section of the Exchange’s fee
schedule is to clarify that options on
QQQQ are part of the Penny Pilot
Program.13
This proposal is scheduled to remain
in effect as a pilot program until May
27, 2009.
2. Statutory Basis
The Exchange believes that its
proposal to amend its schedule of fees
is consistent with Section 6(b) of the
Act 14 in general, and furthers the
objectives of Section 6(b)(4) of the Act 15
in particular, in that it is an equitable
allocation of reasonable fees and other
charges among Exchange members. In
particular, the Exchange believes that
continuing the payment for order flow
program should allow the Exchange to
remain competitive, which should in
turn, benefit the Exchange members
who are assessed the payment for order
flow fee.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has been designated as a fee change
pursuant to Section 19(b)(3)(A)(ii) of the
11 Electronically-delivered orders do not include
orders delivered through the Floor Broker
Management System pursuant to Exchange Rule
1063.
12 See Securities Exchange Act Release No. 57313
(February 12, 2008), 73 FR 9398 (February 20, 2008)
(SR–Phlx–2008–10).
13 See Securities Exchange Act Release No. 56563
(September 27, 2007), 72 FR 56429 (October 3,
2007) (SR–Phlx–2007–62).
14 15 U.S.C. 78f(b).
15 15 U.S.C. 78f(b)(4).
PO 00000
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Sfmt 4703
Act 16 and Rule 19b–4(f)(2) 17
thereunder, because it establishes or
changes a due, fee, or other charge
imposed by the Exchange. Accordingly,
the proposal will take effect upon filing
with the Commission. At any time
within 60 days of the filing of such
proposed rule change the Commission
may summarily abrogate such rule
change if it appears to the Commission
that such action is necessary or
appropriate in the public interest, for
the protection of investors, or otherwise
in furtherance of the purposes of the
Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Phlx–2008–38 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–Phlx–2008–38. 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.
16 15
17 17
E:\FR\FM\30MYN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
30MYN1
Federal Register / Vol. 73, No. 105 / Friday, May 30, 2008 / Notices
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–2008–38 and should
be submitted on or before June 20, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–12110 Filed 5–29–08; 8:45 am]
ordered to be published in the Federal
Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
the exhibit objects, contact Julie
Simpson, Attorney-Adviser, Office of
the Legal Adviser, U.S. Department of
State (telephone: (202) 453–8050). The
address is U.S. Department of State, SA–
44, 301 4th Street, SW., Room 700,
Washington, DC 20547–0001.
Dated: May 27, 2008.
C. Miller Crouch,
Principal Deputy Assistant Secretary for
Educational and Cultural Affairs, Department
of State.
[FR Doc. E8–12217 Filed 5–29–08; 8:45 am]
BILLING CODE 4710–05–P
BILLING CODE 8010–01–P
DEPARTMENT OF STATE
[Public Notice 6225]
[PUBLIC NOTICE 6240]
Industry Advisory Panel: Notice of
Open Meeting
Culturally Significant Objects Imported
for Exhibition Determinations:
‘‘Marlene Dumas: Measuring Your Own
Grave’’
sroberts on PROD1PC70 with NOTICES
DEPARTMENT OF STATE
The Industry Advisory Panel of
Overseas Buildings Operations will
meet on Thursday, June 26, 2008, from
9:30 a.m. until 3:30 p.m. Eastern
Standard Time. The meeting will be
held in room 1107 of the U.S.
Department of State, located at 2201 C
Street, NW., (entrance on 23rd Street)
Washington, DC. For logistical and
security reasons, it is imperative that
everyone enter and exit using only the
23rd Street entrance. The majority of the
meeting is devoted to an exchange of
ideas between the Department’s Bureau
of Overseas Building Operations’ senior
management and the panel members, on
design, operations, and building
maintenance. Members of the public are
asked to kindly refrain from joining the
discussion until Director Shinnick
opens the discussion to them.
Entry to the building is controlled; to
obtain pre-clearance for entry, members
of the public planning to attend should
provide, by June 19, 2008, their name,
professional affiliation, date of birth,
citizenship, and a valid governmentissued ID number (i.e., U.S. government
ID, U.S. military ID, passport, or driver’s
license (and state)) by e-mailing:
iapr@state.gov. Due to limited space,
please remember that only one person
per company may register.
If you have any questions, please
contact Andrea Walk at
walkam@state.gov or on (703) 516–1544.
SUMMARY: Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, Delegation of Authority
No. 236 of October 19, 1999, as
amended, and Delegation of Authority
No. 257 of April 15, 2003 [68 FR 19875],
I hereby determine that the objects to be
included in the exhibition ‘‘Marlene
Dumas: Measuring Your Own Grave’’,
imported from abroad for temporary
exhibition within the United States, are
of cultural significance. The objects are
imported pursuant to loan agreements
with the foreign owners or custodians.
I also determine that the exhibition or
display of the exhibit objects at The
Museum of Contemporary Art, Los
Angeles, CA, from on or about June 22,
2008, until on or about September 22,
2008; The Museum of Modern Art, New
York, NY, beginning on or about
December 14, 2008, until on or about
February 16, 2009, The Menil
Collection, Houston, TX, from on or
about March 26, 2009, until on or about
June 21, 2009, and at possible additional
exhibitions or venues yet to be
determined, is in the national interest.
Public Notice of these Determinations is
18 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
16:52 May 29, 2008
Dated: May 16, 2008.
Richard J. Shinnick,
Director, Ad Interim, Overseas Buildings
Operations, Department of State.
[FR Doc. E8–12111 Filed 5–29–08; 8:45 am]
BILLING CODE 4710–24–P
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31179
SUSQUEHANNA RIVER BASIN
COMMISSION
Notice of Public Hearing and
Commission Meeting
Susquehanna River Basin
Commission.
ACTION: Notice of Public Hearing and
Commission Meeting.
AGENCY:
SUMMARY: The Susquehanna River Basin
Commission will hold a public hearing
as part of its regular business meeting
beginning at 8:30 a.m. on June 12, 2008
in Elmira, New York. At the public
hearing, the Commission will consider:
(1) Approval of certain water resources
projects, including one enforcement
action, (2) consideration of a request to
reopen Docket No. 20020819,
Mountainview Thoroughbred Racing
Association., Inc., and (3) a request for
a hearing on an administrative appeal
regarding Docket No. 20080305,
Mountainview Thoroughbred Racing
Association, Inc. Details concerning the
matters to be addressed at the public
hearing and business meeting are
contained in the SUPPLEMENTARY
INFORMATION section of this notice.
DATES: June 12, 2008.
ADDRESSES: Holiday Inn Elmira—
Riverview, 760 E. Water Street, Elmira,
New York. See SUPPLEMENTARY
INFORMATION section for mailing and
electronic mailing addresses for
submission of written comments.
FOR FURTHER INFORMATION CONTACT:
Richard A. Cairo, General Counsel,
telephone: (717) 238–0423; ext. 306; fax:
(717) 238–2436; e-mail: rcairo@srbc.net
or Deborah J. Dickey, Secretary to the
Commission, telephone: (717) 238–
0423, ext. 301; fax: (717) 238–2436;
e-mail: ddickey@srbc.net.
SUPPLEMENTARY INFORMATION: In
addition to the public hearing and its
related action items identified below,
the business meeting also includes the
following items on the agenda: (1) A
special infrastructure presentation by
Ms. Sandra Allen of the N.Y.
Department of Environmental
Conservation, (2) a report on the present
hydrologic conditions of the basin, (3)
approval of a proposal to increase the
Commission’s consumptive use
mitigation fee, (4) a recommendation to
rescind certain Commission policies, (5)
approval of an FY–10 Budget, (6)
approval of various grants and contracts,
and (7) election of a new Chairman and
Vice-Chairman to serve in the next fiscal
year. The Commission will also hear a
Legal Counsel’s report and an update on
recent activities in our regulatory
program.
E:\FR\FM\30MYN1.SGM
30MYN1
]]>Agencies
[Federal Register Volume 73, Number 105 (Friday, May 30, 2008)]
[Notices]
[Pages 31177-31179]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-12110]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57851; File No. SR-Phlx-2008-38]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Its Payment for Order Flow Pilot Program
May 22, 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 May 19, 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
Exchange. Phlx has designated this proposal as one establishing or
changing a due, fee, or other charge imposed by Phlx under Section
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\
which renders the proposal effective upon filing with the Commission.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Phlx proposes to extend its payment for order flow pilot
program, which is currently in effect until May 27, 2008, for an
additional one-year period until May 27, 2009. The Exchange also
proposes to make a minor clarifying amendment to the payment for order
flow fee section of the Exchange's fee schedule. Other than extending
the date of the pilot program for an additional year and making the
minor technical amendment to the Exchange's fee schedule, no other
changes to the Exchange's current payment for order flow program are
being proposed at this time.
The text of the proposed rule change is available at the principal
office of 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. 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 Exchange states that the purpose of extending the Exchange's
payment for order flow program for an additional year is to remain
competitive with other
[[Page 31178]]
options exchanges that administer payment for order flow programs.\5\
---------------------------------------------------------------------------
\5\ See, e.g., Securities Exchange Act Release Nos. 57094
(January 3, 2008), 73 FR 1653 (January 9, 2008) (SR-CBOE-2007-154);
55895 (June 11, 2007), 72 FR 33549 (June 18, 2007) (SR-ISE-2007-38);
55328 (February 21, 2007), 72 FR 9050 (February 28, 2007) (SR-Amex-
2007-16); and 53341 (February 21, 2006), 71 FR 10085 (February 28,
2006) (SR-Amex-2006-15).
---------------------------------------------------------------------------
Currently, the following payment for order flow fees are in effect
at the Exchange: \6\ (1) Equity options (other than those equity
options that trade as part of the Exchange's Penny Pilot Program),\7\
options on the Russell 2000[supreg] Index \8\ traded under the symbol
RUT, and options on the one-tenth value Russell 2000[supreg] Index
traded under the symbol RMN, are all assessed $0.70 per contract; and
(2) equity options that trade as part of the Exchange's Penny Pilot
Program are assessed $0.25 per contract. Trades resulting from either
Directed \9\ or non-Directed Orders that are delivered electronically
and executed on the Exchange are assessed a payment for order flow
fee,\10\ while non-electronically-delivered orders (i.e., represented
by a floor broker) are not assessed a payment for order flow fee.\11\
Additionally, payment for order flow fees are not assessed on
transactions executed on the Exchange that correspond with an outbound
Linkage Principal Acting as Agent (``P/A'') order.\12\
---------------------------------------------------------------------------
\6\ See, e.g., Securities Exchange Act Release Nos. 53841 (May
19, 2006), 71 FR 30461 (May 26, 2006) (SR-Phlx-2006-33); 54297
(August 9, 2006), 71 FR 47280 (August 16, 2006) (SR-Phlx-2006-47);
54485 (September 22, 2006), 71 FR 57017 (September 28, 2006) (SR-
Phlx-2006-56); 55290 (February 13, 2007), 72 FR 8051 (February 22,
2007) (SR-Phlx-2007-05); 55473 (March 13, 2007), 72 FR 13338 (March
21, 2007) (SR-Phlx-2007-12); and 55891 (June 11, 2007), 72 FR 33271
(June 15, 2007) (SR-Phlx-2007-39).
\7\ The current Penny Pilot Program, in effect through March 27,
2009, permits certain options series to be quoted and traded in
increments of $0.01. See Securities Exchange Act Release No. 56563
(September 27, 2007), 72 FR 56429 (October 3, 2007) (SR-Phlx-2007-
62).
\8\ The Exchange states that Russell 2000[supreg] is a trademark
and service mark of the Frank Russell Company, used under license.
Neither Frank Russell Company's publication of the Russell Indexes
nor its licensing of its trademarks for use in connection with
securities or other financial products derived from a Russell Index
in any way suggests or implies a representation or opinion by Frank
Russell Company as to the attractiveness of investment in any
securities or other financial products based upon or derived from
any Russell Index. Frank Russell Company is not the issuer of any
such securities or other financial products and makes no express or
implied warranties of merchantability or fitness for any particular
purpose with respect to any Russell Index or any data included or
reflected therein, nor as to results to be obtained by any person or
any entity from the use of the Russell Index or any data included or
reflected therein.
\9\ See Securities Exchange Act Release No. 57094 (May 21, 2008)
(SR-Phlx-2008-38) (approving the Exchange's Directed Order Program
on a permanent basis).
\10\ Specialists and Directed ROTs who participate in the
Exchange's payment for order flow program are assessed a payment for
order flow fee, in addition to ROTs. Therefore, the payment for
order flow fee is assessed, in effect, on equity option transactions
between a customer and an ROT, a customer and a Directed ROT, or a
customer and a specialist.
\11\ Electronically-delivered orders do not include orders
delivered through the Floor Broker Management System pursuant to
Exchange Rule 1063.
\12\ See Securities Exchange Act Release No. 57313 (February 12,
2008), 73 FR 9398 (February 20, 2008) (SR-Phlx-2008-10).
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The Exchange states that the purpose of making the minor technical
amendment to the payment for order flow section of the Exchange's fee
schedule is to clarify that options on QQQQ are part of the Penny Pilot
Program.\13\
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\13\ See Securities Exchange Act Release No. 56563 (September
27, 2007), 72 FR 56429 (October 3, 2007) (SR-Phlx-2007-62).
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This proposal is scheduled to remain in effect as a pilot program
until May 27, 2009.
2. Statutory Basis
The Exchange believes that its proposal to amend its schedule of
fees is consistent with Section 6(b) of the Act \14\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \15\ in
particular, in that it is an equitable allocation of reasonable fees
and other charges among Exchange members. In particular, the Exchange
believes that continuing the payment for order flow program should
allow the Exchange to remain competitive, which should in turn, benefit
the Exchange members who are assessed the payment for order flow fee.
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\14\ 15 U.S.C. 78f(b).
\15\ 15 U.S.C. 78f(b)(4).
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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 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 solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has been designated as a fee
change pursuant to Section 19(b)(3)(A)(ii) of the Act \16\ and Rule
19b-4(f)(2) \17\ thereunder, because it establishes or changes a due,
fee, or other charge imposed by the Exchange. Accordingly, the proposal
will take effect upon filing with the Commission. At any time within 60
days of the filing of such 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.
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\16\ 15 U.S.C. 78s(b)(3)(A)(ii).
\17\ 17 CFR 240.19b-4(f)(2).
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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-2008-38 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-Phlx-2008-38. 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.
[[Page 31179]]
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-2008-38 and should be submitted on
or before June 20, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-12110 Filed 5-29-08; 8:45 am]
BILLING CODE 8010-01-P
