Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Quarterly Options Series Pilot Program, 38284-38286 [E8-15099]
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38284
Federal Register / Vol. 73, No. 129 / Thursday, July 3, 2008 / Notices
furthers the objectives of section 6(b)(5)
of the Act,21 in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
impediments to, and perfect the
mechanism of, a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
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.
II. 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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve the proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE–2008–45. 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 the 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–2008–45 and should
be submitted on or before July 24, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15165 Filed 7–2–08; 8:45 am]
BILLING CODE 8010–01–P
Electronic Comments
mstockstill on PROD1PC66 with NOTICES
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:
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Extend the Quarterly
Options Series Pilot Program
• 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–2008–45 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58039; File No. SR–Phlx–
2008–44]
June 26, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
U.S.C. 78f(b)(5).
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Rules 1012 (Series of Options Open for
Trading) and 1101A (Terms of Option
Contracts), in order to extend for a
period of one year an Exchange pilot
program (the ‘‘Pilot Program’’) to permit
the listing and trading of options series
that may be opened for trading on any
business day and expire at the close of
business on the last business day of a
calendar quarter (‘‘Quarterly Options’’
or ‘‘Quarterly Options Series’’). The
Pilot Program currently continues
through July 10, 2008.5 The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.phlx.com/regulatory/
reg_rulefilings.aspx.), at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
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.
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 56030
(July 9, 2007), 72 FR 38645 (July 13, 2007) (SR–
Phlx–2007–42).
4 17
22 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
21 15
notice is hereby given that on June 19,
2008, the Philadelphia Stock Exchange,
Inc. (‘‘Exchange’’ or ‘‘Phlx’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been substantially prepared by the
Exchange. The Exchange has designated
this proposal as non-controversial under
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder,4 which
renders the proposed rule change
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
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Federal Register / Vol. 73, No. 129 / Thursday, July 3, 2008 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
mstockstill on PROD1PC66 with NOTICES
1. Purpose
The purpose of the proposed rule
change is to extend the Pilot Program for
a period of one year so that the
Exchange may continue to list and trade
Quarterly Options within the
parameters specified in its Rules 1012
and 1101A. In February 2007, the
Commission approved the Pilot Program
allowing the listing and trading of
Quarterly Options on the Exchange, and
thereafter extended the Pilot Program
through July 10, 2008.6 The Exchange is
proposing to extend the Pilot Program
for one year through July 10, 2009. The
Exchange is not proposing any changes
to the Pilot Program.7
In the Commission Order approving
the Pilot Program, the Commission
indicated that if the Exchange seeks
extension, expansion, or permanent
approval of the Pilot Program, it must
submit a Pilot Program Report (the
‘‘Report’’) that must include, at a
minimum: (1) Data and written analysis
on the open interest and trading volume
in the classes for which Quarterly
Option Series were opened; (2) an
assessment of the appropriateness of the
options classes selected for the Phlx
Pilot; (3) an assessment of the impact of
the Pilot Program on the capacity of
Phlx, Options Price Reporting Authority
(‘‘OPRA’’), and on market data vendors
(to the extent data from market data
vendors is available); (4) any capacity
problems or other problems that arose
during the operation of the Pilot
Program and how Phlx addressed such
problems; (5) any complaints that the
Phlx received during the operation of
the Pilot Program and how the Phlx
addressed them; and (6) any additional
information that would assist in
assessing the operation of the Pilot
Program.8 In connection with the Pilot
Program expansion,9 the Commission
further requested that the Report
6 See Securities Exchange Act Release Nos. 55301
(February 15, 2007), 72 FR 8238 (February 23, 2007)
(SR–Phlx–2007–08) (establishing the Pilot Program)
and 56030 (July 9, 2007), 72 FR 38645 (July 13,
2007) (SR–Phlx–2007–42) (extending the Pilot
Program).
7 The Pilot Program was expanded and amended
when the Exchange filed a proposed rule change,
pursuant to Section 19(b)(3)(A)(iii) of the Act and
Rule 19b–4(f)(6) thereunder, to list additional series
and implement a delisting policy for outlying series
with no open interest. See Securities Exchange Act
Release No. 57583 (March 31, 2008), 73 FR 18589
(April 4, 2008) (SR–Phlx–2008–23).
8 See Securities Exchange Act Release No. 55301,
supra note 6.
9 See Securities Exchange Act Release No. 57583,
supra note 7.
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include analysis of: (1) The impact of
the additional series on the Exchange’s
market and quote capacity, and (2) the
implementation and effects of the
delisting policy, including the number
of series eligible for delisting during the
period covered by the report, the
number of series actually delisted
during that period (pursuant to the
delisting policy or otherwise), and
documentation of any customer requests
to maintain Quarterly Options Series
strikes that were otherwise eligible for
delisting. The Exchange has submitted,
under separate cover, a Report in
connection with this filing, which
Report seeks confidential treatment
under the Freedom of Information Act.
The Report reviews the Exchange’s
experience with the Pilot Program and
clearly supports the Exchange’s belief
that extension of the Pilot Program is
proper. Among other things, the
Exchange believes that the Report shows
the strength and efficacy of the Pilot
Program on the Exchange as reflected by
the strong volume of Quarterly Options
traded on Phlx since the Pilot Program’s
inception in February 2007. The
Exchange further believes that the
Report establishes that the Pilot Program
has not created, and in the future should
not create, capacity problems for the
Exchange or the OPRA system.
Moreover, the Exchange represents that
it has the necessary systems capacity to
support new options series that will
result from the introduction of Quarterly
Options Series.
The Exchange believes that extending
the Pilot Program would continue to
provide investors with a flexible and
valuable tool to manage risk exposure,
minimize capital outlays, and be more
responsive to the timing of events
affecting the securities that underlie
option contracts.
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),
specifically,11 in that it is designed to
promote just and equitable principles of
trade, to perfect the mechanism of a free
and open market and the national
market system, and, in general, to
protect investors and the public interest.
The Exchange believes that the proposal
would achieve this by allowing
continued listing of Quarterly Options,
thereby stimulating customer interest in
such options and creating greater
trading opportunities and flexibility and
providing customers with the ability to
PO 00000
10 15
11 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00114
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38285
more closely tailor their investment
strategies.
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 Exchange has designated the
proposed rule change as one that: (1)
Does not significantly affect the
protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) does not become operative for 30
days from the date of filing, or such
shorter time as the Commission may
designate if consistent with the
protection of investors and the public
interest. Therefore, the foregoing rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 12 and
subparagraph (f)(6) of Rule 19b–4
thereunder.13
The Exchange has asked the
Commission to waive the operative
delay to permit the proposed rule
change to become operative prior to the
30th day after filing. The Commission
has determined that waiving the 30-day
operative delay of the Exchange’s
proposal is consistent with the
protection of investors and the public
interest and will promote competition
because such waiver will allow Phlx to
continue the existing Pilot without
interruption.14 Therefore, the
Commission designates the proposal
operative upon filing.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide the Commission with written notice of its
intent to file the proposed rule change, 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. The
Exchange has fulfilled this requirement.
14 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
13 17
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38286
Federal Register / Vol. 73, No. 129 / Thursday, July 3, 2008 / Notices
the 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
SR–Phlx–2008–44 and should be
submitted on or before July 24, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15099 Filed 7–2–08; 8:45 am]
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:
BILLING CODE 8010–01–P
Electronic Comments
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change Relating to Fees for Options
on the Full-Size Nasdaq 100 Index and
Options on the Mini Nasdaq 100 Index
• 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
No. SR–Phlx–2008–44 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58049; File No. SR–Phlx–
2008–46]
June 27, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on June 13,
to Secretary, Securities and Exchange
2008, the Philadelphia Stock Exchange,
Commission, 100 F Street, NE.,
Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with
Washington, DC 20549–1090.
the Securities and Exchange
Commission (‘‘Commission’’) the
All submissions should refer to File
proposed rule change as described in
Number SR–Phlx–2008–44. This file
Items I and II below, which Items have
number should be included on the
subject line if e-mail is used. To help the been substantially prepared by the
Exchange. The Exchange has designated
Commission process and review your
this proposal as one establishing or
comments more efficiently, please use
only one method. The Commission will changing a due, fee, or other charge
post all comments on the Commission’s applicable only to a member, pursuant
to Section 19(b)(3)(A)(ii) of the Act 3 and
Internet Web site (https://www.sec.gov/
Rule 19b–4(f)(2) thereunder,4 which
rules/sro.shtml). Copies of the
renders the proposal effective upon
submission, all subsequent
filing with the Commission. The
amendments, all written statements
Commission is publishing this notice to
with respect to the proposed rule
solicit comments on the proposed rule
change that are filed with the
change from interested persons.
Commission, and all written
communications relating to the
I. Self-Regulatory Organization’s
proposed rule change between the
Statement of the Terms of Substance of
Commission and any person, other than the Proposed Rule Change
those that may be withheld from the
Phlx proposes to assess equity option
public in accordance with the
charges, as opposed to index option
provisions of 5 U.S.C. 552, will be
charges, on: (1) Options on the full
available for inspection and copying in
value of the Nasdaq 100 Index 5 traded
the Commission’s Public Reference
mstockstill on PROD1PC66 with NOTICES
Paper Comments
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 No.
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16:46 Jul 02, 2008
Jkt 214001
CFR 200.30–3(a)(12).
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).
5 NASDAQ, NASDAQ–100 and NASDAQ–100
Index are registered trademarks of The NASDAQ
OMX Group, Inc. (which with its affiliates are the
‘‘Corporations’’) and are licensed for use by the
Philadelphia Stock Exchange, Inc. in connection
with the trading of options products based on the
NASDAQ–100 Index. The options products have
not been passed on by the Corporations as to their
legality or suitability. The options products are not
issued, endorsed, sold, or promoted by the
PO 00000
15 17
1 15
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under the symbol NDX (the ‘‘Full-size
Nasdaq 100 Index’’); and (2) options on
the one-tenth of the value of the Nasdaq
100 Index traded under the symbol
MNX (the ‘‘Mini Nasdaq 100 Index’’)
(collectively referred to herein as the
‘‘Nasdaq Index Products’’). 6 Therefore,
the Exchange proposes to charge the
Nasdaq Index Products, which are index
options, in a similar manner that it
charges for equity options, except that
there will be a fee assessed for customer
transactions.7 Specifically, for purposes
of the option transaction charge, the
Exchange proposes to adopt a specific
customer option transaction charge of
$0.12 per contract side customer
execution transaction fee on the Nasdaq
Index Products.
In addition, the Exchange proposes to
adopt a $0.10 per contract side license
fee on ‘‘firm-related’’ comparison and
transaction charges for the Nasdaq Index
Products.8 This license fee will be
imposed only after the Exchange’s
$60,000 firm-related equity option and
index option comparison and
transaction charge cap is reached.9
Corporations. The Corporations make no warranties
and bear no liability with respect to the options
products.
6 See Securities Exchange Act Release No. 57936
(June 6, 2008), 73 FR 33481 (June 12, 2008) (SR–
Phlx–2008–36) (proposed rule change relating to
the listing and trading of options on the Nasdaq
Index Products).
7 Phlx has clarified that the index option
transaction charge for customer executions, which
is currently $0.40 per contract, applies to brokerdealer transactions. Pursuant to this proposed rule
change, Phlx has stated that broker-dealer
transactions in MNX and MDX index options will
be assessed the equity option transaction charges as
set forth on the Exchange’s current Summary of
Equity Option and RUT and RMN Charges fee
schedule. Pursuant to that fee schedule, the brokerdealer equity option transaction charges are either
$0.45 per contract for AUTOM-delivered orders or
$0.25 per contract for non-AUTOM-delivered
orders. Email communication to Heather Seidel,
Assistant Director, Division of Trading and Markets
(‘‘Division’’), Commission, and Leah Mesfin,
Special Counsel, Division, Commission, from
Cynthia Hoekstra, Vice President, Phlx, on June 24,
2008.
8 Specifically, ‘‘firm-related’’ charges include
equity option firm/proprietary comparison charges,
equity option firm/proprietary transaction charges,
equity option firm/proprietary facilitation
transaction charges, index option firm (proprietary
and customer executions) comparison charges,
index option firm/proprietary transaction charges,
and index option firm/proprietary facilitation
transaction charges (collectively the ‘‘firm-related
charges’’).
9 Currently, the Exchange imposes a per contract
side license fee for equity option and index option
‘‘firm’’ transactions on certain licensed products
(collectively ‘‘licensed products’’) after the $60,000
cap per member organization on all ‘‘firm-related’’
equity option and index option comparison and
transaction charges combined is reached Therefore,
when a member organization exceeds the $60,000
cap (comprised of firm-related charges), the member
organization is charged $60,000, plus the applicable
license fee per contract side for any contracts in
licensed products (if any) over those that were
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]]>Agencies
[Federal Register Volume 73, Number 129 (Thursday, July 3, 2008)]
[Notices]
[Pages 38284-38286]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15099]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58039; File No. SR-Phlx-2008-44]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Extend the Quarterly Options Series Pilot Program
June 26, 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 June 19, 2008, the Philadelphia Stock Exchange, Inc. (``Exchange''
or ``Phlx'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been substantially prepared by the Exchange.
The Exchange has designated this proposal as non-controversial under
Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6)
thereunder,\4\ which renders the proposed rule change effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its Rules 1012 (Series of Options
Open for Trading) and 1101A (Terms of Option Contracts), in order to
extend for a period of one year an Exchange pilot program (the ``Pilot
Program'') to permit the listing and trading of options series that may
be opened for trading on any business day and expire at the close of
business on the last business day of a calendar quarter (``Quarterly
Options'' or ``Quarterly Options Series''). The Pilot Program currently
continues through July 10, 2008.\5\ The text of the proposed rule
change is available on the Exchange's Web site (https://www.phlx.com/
regulatory/reg_rulefilings.aspx.), at the principal office of the
Exchange, and at the Commission's Public Reference Room.
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\5\ See Securities Exchange Act Release No. 56030 (July 9,
2007), 72 FR 38645 (July 13, 2007) (SR-Phlx-2007-42).
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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.
[[Page 38285]]
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 extend the Pilot
Program for a period of one year so that the Exchange may continue to
list and trade Quarterly Options within the parameters specified in its
Rules 1012 and 1101A. In February 2007, the Commission approved the
Pilot Program allowing the listing and trading of Quarterly Options on
the Exchange, and thereafter extended the Pilot Program through July
10, 2008.\6\ The Exchange is proposing to extend the Pilot Program for
one year through July 10, 2009. The Exchange is not proposing any
changes to the Pilot Program.\7\
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\6\ See Securities Exchange Act Release Nos. 55301 (February 15,
2007), 72 FR 8238 (February 23, 2007) (SR-Phlx-2007-08)
(establishing the Pilot Program) and 56030 (July 9, 2007), 72 FR
38645 (July 13, 2007) (SR-Phlx-2007-42) (extending the Pilot
Program).
\7\ The Pilot Program was expanded and amended when the Exchange
filed a proposed rule change, pursuant to Section 19(b)(3)(A)(iii)
of the Act and Rule 19b-4(f)(6) thereunder, to list additional
series and implement a delisting policy for outlying series with no
open interest. See Securities Exchange Act Release No. 57583 (March
31, 2008), 73 FR 18589 (April 4, 2008) (SR-Phlx-2008-23).
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In the Commission Order approving the Pilot Program, the Commission
indicated that if the Exchange seeks extension, expansion, or permanent
approval of the Pilot Program, it must submit a Pilot Program Report
(the ``Report'') that must include, at a minimum: (1) Data and written
analysis on the open interest and trading volume in the classes for
which Quarterly Option Series were opened; (2) an assessment of the
appropriateness of the options classes selected for the Phlx Pilot; (3)
an assessment of the impact of the Pilot Program on the capacity of
Phlx, Options Price Reporting Authority (``OPRA''), and on market data
vendors (to the extent data from market data vendors is available); (4)
any capacity problems or other problems that arose during the operation
of the Pilot Program and how Phlx addressed such problems; (5) any
complaints that the Phlx received during the operation of the Pilot
Program and how the Phlx addressed them; and (6) any additional
information that would assist in assessing the operation of the Pilot
Program.\8\ In connection with the Pilot Program expansion,\9\ the
Commission further requested that the Report include analysis of: (1)
The impact of the additional series on the Exchange's market and quote
capacity, and (2) the implementation and effects of the delisting
policy, including the number of series eligible for delisting during
the period covered by the report, the number of series actually
delisted during that period (pursuant to the delisting policy or
otherwise), and documentation of any customer requests to maintain
Quarterly Options Series strikes that were otherwise eligible for
delisting. The Exchange has submitted, under separate cover, a Report
in connection with this filing, which Report seeks confidential
treatment under the Freedom of Information Act.
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 55301, supra note 6.
\9\ See Securities Exchange Act Release No. 57583, supra note 7.
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The Report reviews the Exchange's experience with the Pilot Program
and clearly supports the Exchange's belief that extension of the Pilot
Program is proper. Among other things, the Exchange believes that the
Report shows the strength and efficacy of the Pilot Program on the
Exchange as reflected by the strong volume of Quarterly Options traded
on Phlx since the Pilot Program's inception in February 2007. The
Exchange further believes that the Report establishes that the Pilot
Program has not created, and in the future should not create, capacity
problems for the Exchange or the OPRA system. Moreover, the Exchange
represents that it has the necessary systems capacity to support new
options series that will result from the introduction of Quarterly
Options Series.
The Exchange believes that extending the Pilot Program would
continue to provide investors with a flexible and valuable tool to
manage risk exposure, minimize capital outlays, and be more responsive
to the timing of events affecting the securities that underlie option
contracts.
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), specifically,\11\ in that it is designed to promote just and
equitable principles of trade, to perfect the mechanism of a free and
open market and the national market system, and, in general, to protect
investors and the public interest. The Exchange believes that the
proposal would achieve this by allowing continued listing of Quarterly
Options, thereby stimulating customer interest in such options and
creating greater trading opportunities and flexibility and providing
customers with the ability to more closely tailor their investment
strategies.
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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 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 Exchange has designated the proposed rule change as one that:
(1) Does not significantly affect the protection of investors or the
public interest; (2) does not impose any significant burden on
competition; and (3) does not become operative for 30 days from the
date of filing, or such shorter time as the Commission may designate if
consistent with the protection of investors and the public interest.
Therefore, the foregoing rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \12\ and subparagraph (f)(6) of Rule
19b-4 thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with written notice of its intent to file the proposed rule change,
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. The Exchange has fulfilled this requirement.
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The Exchange has asked the Commission to waive the operative delay
to permit the proposed rule change to become operative prior to the
30th day after filing. The Commission has determined that waiving the
30-day operative delay of the Exchange's proposal is consistent with
the protection of investors and the public interest and will promote
competition because such waiver will allow Phlx to continue the
existing Pilot without interruption.\14\ Therefore, the Commission
designates the proposal operative upon filing.
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\14\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate
[[Page 38286]]
the 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 rule-comments@sec.gov. Please include
File No. SR-Phlx-2008-44 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-Phlx-2008-44. 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 No. SR-Phlx-2008-44 and should be
submitted on or before July 24, 2008.
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\15\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-15099 Filed 7-2-08; 8:45 am]
BILLING CODE 8010-01-P
