Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to an Extension of Pilot Programs in Connection With Linkage P/A Orders, 45263-45265 [E8-17760]
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Federal Register / Vol. 73, No. 150 / Monday, August 4, 2008 / Notices
issuers are treated as domestic
companies for purposes of Section
802.02.
Currently, Section 802.03 of the
Manual requires a non-U.S. company to
issue a press release within 90 days of
receiving written notification from the
Exchange that it has fallen below the
Exchange’s listing standards. While
foreign private issuers are not subject to
the Form 8–K requirement imposed on
domestic issuers, the Exchange believes
that 90 days is an excessive period to
give companies to make such a material
disclosure. Based on our experience
with these companies, 30 days would be
more than sufficient. As such, the
Exchange proposes to shorten from 90 to
30 days the period within which foreign
private issuers must issue a press
release with regard to a notification by
the Exchange of noncompliance. If the
issuer does not issue a press release
within that 30-day period, the Exchange
will do so.
While Sections 802.02 and 802.03
establish maximum time periods for the
issuance of press releases, the Exchange
believes that companies should issue
their press releases concerning any
notice of noncompliance they receive
from the Exchange as soon as possible
after receipt of such notification and
should not wait until close to the end
of the permitted period before doing so.
2. Statutory Basis
The basis under the Exchange Act for
this proposed rule change is the
requirement under Section 6(b)(5) 4 that
an Exchange have rules that are
designed to promote just and equitable
principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. In particular, the
Exchange believes that the proposed
amendment protects investors and the
public interest by ensuring the prompt
disclosure of material information with
respect to listed companies.
pwalker on PROD1PC71 with NOTICES
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 purpose of the Exchange Act.
4 15
U.S.C. 78f(b)(5).
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16:50 Aug 01, 2008
Jkt 214001
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on 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 Exchange consents,
the Commission will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Exchange
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–2008–59 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–NYSE–2008–59. 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
PO 00000
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45263
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 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–NYSE–2008–59 and should
be submitted on or before August 25,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.5
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–17761 Filed 8–1–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58234; File No. SR–Phlx–
2008–55]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to an Extension of
Pilot Programs in Connection With
Linkage P/A Orders
July 25, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934,1 and
Rule 19b–4 thereunder,2 notice is
hereby given that on July 18, 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 prepared
by Phlx. The Commission is publishing
this notice to solicit comments on the
proposed rule change from interested
persons.
5 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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45264
Federal Register / Vol. 73, No. 150 / Monday, August 4, 2008 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Phlx, pursuant to Section 19(b)(1)
of the Act 3 and Rule 19b–4 thereunder,4
proposes to extend for a one-year period
until July 31, 2009, its current pilot
programs relating to: (1) An option
transaction charge credit of $0.21 per
contract for Exchange options specialist
units 5 that incur Phlx option
transaction charges when a customer
order is delivered electronically via
Phlx XL 6 or via the Exchange’s Options
Floor Broker Management Systems
(‘‘FBMS’’),7 and is then executed via the
Intermarket Option Linkage
(‘‘Linkage’’) 8 as a Principal Acting as
Agent Order (‘‘P/A Order’’); and (2) the
Floor Broker Linkage P/A fee and
Options Specialist Unit Credit, which
charges floor brokers an amount equal to
the transaction fee(s) assessed on
options specialist units by another
exchange in connection with customer
orders that are delivered to the limit
order book via FBMS and executed via
Linkage as P/A Orders. The Exchange
then provides to options specialist units
a credit in an amount equal to the
transaction fee(s) assessed on them by
another exchange in connection with
executing customer orders that are
delivered to the limit order book via
FBMS and executed via Linkage as P/A
Orders. There are no substantive
changes to the pilot programs as they
currently operate, other than to extend
their operation through July 31, 2009.9
While changes to the fee schedule
pursuant to this proposal are effective
upon filing, the Exchange has
designated the changes to be in effect for
3 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
5 The Exchange uses the terms ‘‘specialists’’ and
‘‘specialist units’’ interchangeably herein.
6 See Exchange Rule 1080.
7 FBMS is designed to enable Floor Brokers and/
or their employees to enter, route and report
transactions stemming from options orders received
on the Exchange. FBMS also is designed to establish
an electronic audit trail for options orders
represented and executed by Floor Brokers on the
Exchange, such that the audit trail provides an
accurate, time-sequenced record of electronic and
other orders, quotations and transactions on the
Exchange, beginning with the receipt of an order by
the Exchange, and further documenting the life of
the order through the process of execution, partial
execution, or cancellation of that order. See
Exchange Rule 1080, Commentary .06.
8 Linkage is governed by the Options Linkage
Authority under the conditions set forth under the
Plan for the Purpose of Creating and Operating an
Intermarket Option Linkage (the ‘‘Plan’’) approved
by the Commission. The registered U.S. options
markets are linked together on a real-time basis
through a network capable of transporting orders
and messages to and from each market.
9 See e-mail dated July 24, 2008 to the
Commission from Cynthia Hoekstra, Vice President,
Phlx.
pwalker on PROD1PC71 with NOTICES
47
VerDate Aug<31>2005
16:50 Aug 01, 2008
Jkt 214001
transactions settling on or after July 31,
2008.10 The text of the proposed rule
change is available at www.phlx.com,
the Exchange, and 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
Phlx 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 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 currently provides for
an option transaction charge credit of
$0.21 per contract for Exchange options
specialist units that incur Phlx option
transaction charges when a customer
order is delivered electronically via
Phlx XL or via FBMS and then is
executed via Linkage as a P/A Order. In
addition, the Exchange charges floor
brokers an amount equal to the
transaction fee(s) assessed on options
specialist units by another exchange in
connection with customer orders that
are delivered to the limit order book via
FBMS and executed via Linkage as P/A
Orders. Options specialist units are then
credited an amount equal to the
transaction fee(s) assessed on them by
another exchange in connection with
executing customer orders that are
delivered to the limit order book via
FBMS and executed via Linkage as a P/
A Order.
The purpose of extending the current
pilot programs discussed above is to
encourage the use of Linkage, remain
competitive with other exchanges with
respect to the assessment of Linkagerelated fees and to help alleviate the
potential economic burden of multiple
transaction charges imposed on
Exchange specialist units in connection
with routing these types of Linkage
orders. Additionally, the purpose of
assessing a fee on floor brokers who
10 This proposal is scheduled to be in effect for
the same time period as a pilot program relating to
fees for Linkage Principal Orders and P/A Orders.
See Securities Exchange Act Release No. 58144
(July 11, 2008), 73 FR 41394 (July 18, 2008) (SR–
Phlx–2008–49).
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Frm 00060
Fmt 4703
Sfmt 4703
send customer orders that are delivered
to the limit order book via FBMS and
executed via Linkage as P/A Orders is
to more equitably assess the applicable
transaction fee(s) on the member
originally entering the order to be
executed. Floor brokers may choose to
route these orders through other systems
and not place these orders on the limit
order book.
The above-referenced pilot programs
are currently scheduled to expire on
July 31, 2008.11 This proposal would
extend the pilot programs for another
year, through July 31, 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 12 in general, and furthers the
objectives of Section 6(b)(4) of the Act 13
in particular, in that it is an equitable
allocation of reasonable fees and other
charges among Exchange members.
These pilot programs, in part, help
alleviate the undue financial burden of
multiple transaction charges that are
incurred by specialist units in
connection with P/A orders executed
via Linkage. Assessing a fee on floor
brokers and giving a corresponding
credit to specialist units allows for the
transaction fee(s) to be assessed on the
member who submits the order and for
the credit to be given to the specialist
unit that routed the order to another
exchange in order to obtain the National
Best Bid or Offer.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 14 and
11 See Securities Exchange Act Release Nos.
57608 (April 2, 2008), 73 FR 19128 (April 8, 2008)
(SR–Phlx–2008–22); 57434 (March 5, 2008), 73 FR
13269 (March 12, 2008) (SR–Phlx–2008–19); and
56101 (July 19, 2007), 72 FR 40920 (July 25, 2007)
(SR–Phlx–2007–50).
12 15 U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(4).
14 15 U.S.C. 78s(b)(3)(A)(ii).
E:\FR\FM\04AUN1.SGM
04AUN1
Federal Register / Vol. 73, No. 150 / Monday, August 4, 2008 / Notices
subparagraph (f)(2) of Rule 19b–4
thereunder.15 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:
pwalker on PROD1PC71 with NOTICES
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–2008–55 on the
subject line.
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–Phlx–2008–55, and should
be submitted on or before August 25,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–17760 Filed 8–1–08; 8:45 am]
BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
Data Collection Available for Public
Comments and Recommendations
Notice and request for
comments.
ACTION:
SUMMARY: In accordance with the
Paperwork Reduction Act of 1995, this
notice announces the Small Business
Administration’s intentions to request
approval on a new and/or currently
Paper Comments
approved information collection.
• Send paper comments in triplicate
DATES: Submit comments on or before
to Florence E. Harmon, Acting
October 3, 2008.
Secretary, Securities and Exchange
ADDRESSES: Send all comments
Commission, 100 F Street, NE.,
regarding whether these information
Washington, DC 20549–1090.
collections are necessary for the proper
All submissions should refer to File
performance of the function of the
Number SR–Phlx–2008–55. This file
agency, whether the burden estimates
number should be included on the
subject line if e-mail is used. To help the are accurate, and if there are ways to
minimize the estimated burden and
Commission process and review your
enhance the quality of the collections, to
comments more efficiently, please use
only one method. The Commission will Cynthia Pitts, Administrative Officer,
post all comments on the Commission’s Office of Disaster, Small Business
Administration, 409 3rd Street, SW., 6th
Internet Web site (https://www.sec.gov/
floor, Wash., DC 20416.
rules/sro.shtml). Copies of the
FOR FURTHER INFORMATION CONTACT:
submission, all subsequent
Cynthia Pitts, Administrative Officer,
amendments, all written statements
Office of Disaster, 202–205–7570
with respect to the proposed rule
cynthia.pitts@sba.gov Curtis B. Rich,
change that are filed with the
Management Analyst, 202–205–7030
Commission, and all written
curtis.rich@ba.gov.
communications relating to the
proposed rule change between the
SUPPLEMENTARY INFORMATION: The Small
Commission and any person, other than Business Administration is authorized
those that may be withheld from the
to make loans to victims of declared
public in accordance with the
disasters for the purpose of restoring
provisions of 5 U.S.C. 552, will be
their damaged property to, as near as
available for inspection and copying in
possible, pre-disaster conditions. SBA’s
the Commission’s Public Reference
Office of Disaster Assistance provides
Room, 100 F Street, NE., Washington,
customer service to individuals and
DC 20549 on official business days
businesses on the phone and via email
between the hours of 10 a.m. and 3 p.m. through its Disaster Assistance
Copies of such filing also will be
Customer Service Center and in-person
available for inspection and copying at
through its Field Operations Centers.
the principal office of Phlx. All
Title: ‘‘Disaster Business Loan
comments received will be posted
Application.’’
without change; the Commission does
Description of Respondents:
not edit personal identifying
Application for benefits (loan) used to
15 17
CFR 240.19b–4(f)(2).
VerDate Aug<31>2005
16:50 Aug 01, 2008
16 17
Jkt 214001
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CFR 200.30–3(a)(12).
Frm 00061
Fmt 4703
Sfmt 4703
45265
determine eligibility and credit
worthiness of Small Business or not-forprofit organizations who seek Federal
Assistance in a declared disaster.
Respondents are disaster victims
seeking disaster assistance.
Form Numbers: 5 & 1368.
Annual Responses: 9,510.
Annual Burden: 22,208.
Title: ‘‘Disaster Business Loan
Application.’’
Description of Respondents:
Application for benefits (loan) used to
determine eligibility and credit
worthiness of Small Business or not-forprofit organizations who seek Federal
Assistance in a declared disaster.
Respondents are disaster victims
seeking disaster assistance.
Form Number: 5C.
Annual Responses: 49,862.
Annual Burden: 74,793.
Jacqueline White,
Chief, Administrative Information Branch.
[FR Doc. E8–17834 Filed 8–1–08; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
Disaster Declaration #11340 and
#11341; Georgia Disaster #GA–00014
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
SUMMARY: This is a notice of an
Administrative declaration of a disaster
for the State of Georgia dated 07/28/
2008.
Incident: Severe Storms and
Tornadoes.
Incident Period: 05/20/2008.
Effective Date: 07/28/2008.
Physical Loan Application Deadline
Date: 09/26/2008.
Economic Injury (EIDL) Loan
Application Deadline Date: 04/28/2009.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
Administrator’s disaster declaration,
applications for disaster loans may be
filed at the address listed above or other
locally announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
E:\FR\FM\04AUN1.SGM
04AUN1
]]>Agencies
[Federal Register Volume 73, Number 150 (Monday, August 4, 2008)]
[Notices]
[Pages 45263-45265]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-17760]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58234; File No. SR-Phlx-2008-55]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to an Extension of Pilot Programs in Connection With Linkage
P/A Orders
July 25, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934,\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on
July 18, 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 prepared by Phlx. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
[[Page 45264]]
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Phlx, pursuant to Section 19(b)(1) of the Act \3\ and Rule 19b-
4 thereunder,\4\ proposes to extend for a one-year period until July
31, 2009, its current pilot programs relating to: (1) An option
transaction charge credit of $0.21 per contract for Exchange options
specialist units \5\ that incur Phlx option transaction charges when a
customer order is delivered electronically via Phlx XL \6\ or via the
Exchange's Options Floor Broker Management Systems (``FBMS''),\7\ and
is then executed via the Intermarket Option Linkage (``Linkage'') \8\
as a Principal Acting as Agent Order (``P/A Order''); and (2) the Floor
Broker Linkage P/A fee and Options Specialist Unit Credit, which
charges floor brokers an amount equal to the transaction fee(s)
assessed on options specialist units by another exchange in connection
with customer orders that are delivered to the limit order book via
FBMS and executed via Linkage as P/A Orders. The Exchange then provides
to options specialist units a credit in an amount equal to the
transaction fee(s) assessed on them by another exchange in connection
with executing customer orders that are delivered to the limit order
book via FBMS and executed via Linkage as P/A Orders. There are no
substantive changes to the pilot programs as they currently operate,
other than to extend their operation through July 31, 2009.\9\
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78s(b)(1).
\4\ 7 CFR 240.19b-4.
\5\ The Exchange uses the terms ``specialists'' and ``specialist
units'' interchangeably herein.
\6\ See Exchange Rule 1080.
\7\ FBMS is designed to enable Floor Brokers and/or their
employees to enter, route and report transactions stemming from
options orders received on the Exchange. FBMS also is designed to
establish an electronic audit trail for options orders represented
and executed by Floor Brokers on the Exchange, such that the audit
trail provides an accurate, time-sequenced record of electronic and
other orders, quotations and transactions on the Exchange, beginning
with the receipt of an order by the Exchange, and further
documenting the life of the order through the process of execution,
partial execution, or cancellation of that order. See Exchange Rule
1080, Commentary .06.
\8\ Linkage is governed by the Options Linkage Authority under
the conditions set forth under the Plan for the Purpose of Creating
and Operating an Intermarket Option Linkage (the ``Plan'') approved
by the Commission. The registered U.S. options markets are linked
together on a real-time basis through a network capable of
transporting orders and messages to and from each market.
\9\ See e-mail dated July 24, 2008 to the Commission from
Cynthia Hoekstra, Vice President, Phlx.
---------------------------------------------------------------------------
While changes to the fee schedule pursuant to this proposal are
effective upon filing, the Exchange has designated the changes to be in
effect for transactions settling on or after July 31, 2008.\10\ The
text of the proposed rule change is available at www.phlx.com, the
Exchange, and the Commission's Public Reference Room.
---------------------------------------------------------------------------
\10\ This proposal is scheduled to be in effect for the same
time period as a pilot program relating to fees for Linkage
Principal Orders and P/A Orders. See Securities Exchange Act Release
No. 58144 (July 11, 2008), 73 FR 41394 (July 18, 2008) (SR-Phlx-
2008-49).
---------------------------------------------------------------------------
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 Phlx 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 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 currently provides for an option transaction charge
credit of $0.21 per contract for Exchange options specialist units that
incur Phlx option transaction charges when a customer order is
delivered electronically via Phlx XL or via FBMS and then is executed
via Linkage as a P/A Order. In addition, the Exchange charges floor
brokers an amount equal to the transaction fee(s) assessed on options
specialist units by another exchange in connection with customer orders
that are delivered to the limit order book via FBMS and executed via
Linkage as P/A Orders. Options specialist units are then credited an
amount equal to the transaction fee(s) assessed on them by another
exchange in connection with executing customer orders that are
delivered to the limit order book via FBMS and executed via Linkage as
a P/A Order.
The purpose of extending the current pilot programs discussed above
is to encourage the use of Linkage, remain competitive with other
exchanges with respect to the assessment of Linkage-related fees and to
help alleviate the potential economic burden of multiple transaction
charges imposed on Exchange specialist units in connection with routing
these types of Linkage orders. Additionally, the purpose of assessing a
fee on floor brokers who send customer orders that are delivered to the
limit order book via FBMS and executed via Linkage as P/A Orders is to
more equitably assess the applicable transaction fee(s) on the member
originally entering the order to be executed. Floor brokers may choose
to route these orders through other systems and not place these orders
on the limit order book.
The above-referenced pilot programs are currently scheduled to
expire on July 31, 2008.\11\ This proposal would extend the pilot
programs for another year, through July 31, 2009.
---------------------------------------------------------------------------
\11\ See Securities Exchange Act Release Nos. 57608 (April 2,
2008), 73 FR 19128 (April 8, 2008) (SR-Phlx-2008-22); 57434 (March
5, 2008), 73 FR 13269 (March 12, 2008) (SR-Phlx-2008-19); and 56101
(July 19, 2007), 72 FR 40920 (July 25, 2007) (SR-Phlx-2007-50).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal to amend its schedule of
fees is consistent with Section 6(b) of the Act \12\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \13\ in
particular, in that it is an equitable allocation of reasonable fees
and other charges among Exchange members. These pilot programs, in
part, help alleviate the undue financial burden of multiple transaction
charges that are incurred by specialist units in connection with P/A
orders executed via Linkage. Assessing a fee on floor brokers and
giving a corresponding credit to specialist units allows for the
transaction fee(s) to be assessed on the member who submits the order
and for the credit to be given to the specialist unit that routed the
order to another exchange in order to obtain the National Best Bid or
Offer.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f(b).
\13\ 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 that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \14\ and
[[Page 45265]]
subparagraph (f)(2) of Rule 19b-4 thereunder.\15\ 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.
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\14\ 15 U.S.C. 78s(b)(3)(A)(ii).
\15\ 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-2008-55 on the subject line.
Paper Comments
Send paper comments in triplicate to Florence E. Harmon,
Acting Secretary, Securities and Exchange Commission, 100 F Street,
NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-Phlx-2008-55. 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 Phlx. 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-2008-55, and should be
submitted on or before August 25, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-17760 Filed 8-1-08; 8:45 am]
BILLING CODE 8010-01-P
