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]

Download as PDF 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 (http://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 Jkt 214001 comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of 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 http:// www.phlx.com. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the 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 PO 00000 Frm 00126 Fmt 4703 Sfmt 4703 31177 3 15 4 17 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). E:\FR\FM\30MYN1.SGM 30MYN1 31178 Federal Register / Vol. 73, No. 105 / Friday, May 30, 2008 / Notices sroberts on PROD1PC70 with NOTICES 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 Frm 00127 Fmt 4703 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 (http://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 (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. 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 Jkt 214001 PO 00000 Frm 00128 Fmt 4703 Sfmt 4703 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]


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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 
http://www.phlx.com.

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

    In its filing with the Commission, the 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).
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \13\ See Securities Exchange Act Release No. 56563 (September 
27, 2007), 72 FR 56429 (October 3, 2007) (SR-Phlx-2007-62).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \17\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-Phlx-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 (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Room, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m.

[[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