Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Administration and Enforcement of Certain Rules Pertaining to XLE, 57181-57183 [E8-22960]

Download as PDF Federal Register / Vol. 73, No. 191 / Wednesday, October 1, 2008 / Notices 57181 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.19 Florence E. Harmon, Acting Secretary. [FR Doc. E8–22967 Filed 9–30–08; 8:45 am] transactions in equity options.13 Finally, the amount of the execution fee for all non-ISE Market Maker transactions shall be $0.45 per contract.14 Further, since options on DBC, DBB, VTI, UUP, TIP, EPP, URE, and EFU are multiply-listed, the Exchange’s Payment for Order Flow fee shall apply to all these products. The Exchange believes the proposed rule change will further the Exchange’s goal of introducing new products to the marketplace that are competitively priced. (b) Basis—The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,15 in general, and furthers the objectives of Section 6(b)(4),16 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its members and other persons using its facilities. IV. Solicitation of Comments B. Self-Regulatory Organization’s Statement on Burden on Competition Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934,1 and All submissions should refer to File Rule 19b–4 2 thereunder, notice is Number SR–ISE–2008–68. This file hereby given that on September 5, 2008, number should be included on the NASDAQ OMX PHLX, Inc. (‘‘Phlx’’ or subject line if e-mail is used. To help the ‘‘Exchange’’) filed with the Securities Commission process and review your and Exchange Commission (‘‘SEC’’ or comments more efficiently, please use ‘‘Commission’’) the proposed rule only one method. The Commission will change as described in Items I, II and III, post all comments on the Commission’s below, which Items have been prepared Internet Web site (http://www.sec.gov/ by Phlx. The Commission is publishing rules/sro.shtml). Copies of the this notice to solicit comments on the submission, all subsequent proposed rule change from interested amendments, all written statements persons. with respect to the proposed rule I. Self-Regulatory Organization’s change that are filed with the Statement of the Terms of Substance of Commission, and all written the Proposed Rule Change communications relating to the proposed rule change between the The Exchange, pursuant to Section Commission and any person, other than 19(b)(1) of the Act 3 and Rule 19b–4 those that may be withheld from the thereunder,4 proposes to change the public in accordance with the administration and enforcement of provisions of 5 U.S.C. 552, will be certain rules in light of the fact that the available for inspection and copying in Exchange will cease operation of the the Commission’s Public Reference technology used to operate XLE,5 the Room, 100 F Street, NE., Washington, Exchange’s equity trading system, on or DC 20549, on official business days before October 24, 2008 (the between the hours of 10 a.m. and 3 p.m. ‘‘Shutdown’’). At this time, the Copies of the filing will also be available Exchange is not proposing to amend the for inspection and copying at the text of any rules, but simply to change principal office of the self-regulatory the administration and enforcement of organization. All comments received certain rules, as described below. The will be posted without change; the Shutdown will not affect any other Commission does not edit personal trading systems or markets at Phlx. identifying information from submissions. You should submit only 19 17CFR 200.30–3(a)(12). information that you wish to make 1 15 U.S.C. 78s(b)(1). available publicly. All submissions 2 17 CFR 240.19b–4. should refer to File Number SR–ISE– 3 15 U.S.C. 78s(b)(1). 2008–68 and should be submitted on or 4 17 CFR 240.19b–4. before October 22, 2008. 5 See Securities Exchange Act Release No. 54538 The proposed rule change does not 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 The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any unsolicited written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action jlentini on PROD1PC65 with NOTICES The foregoing rule change has become effective pursuant to Section 19(b)(3) of the Act 17 and Rule 19b–4(f)(2) 18 thereunder. 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. 13 The Exchange applies a sliding scale, between $0.01 and $0.18 per contract side, based on the number of contracts an ISE market maker trades in a month. 14 The amount of the execution fee for non-ISE Market Maker transactions executed in the Exchange’s Facilitation and Solicitation Mechanisms is $0.19 per contract. 15 15 U.S.C. 78f. 16 15 U.S.C. 78f(b)(4). 17 15 U.S.C. 78s(b)(3)(A). 18 17 CFR 19b–4(f)(2). VerDate Aug<31>2005 18:22 Sep 30, 2008 Jkt 214001 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–ISE–2008–68 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. PO 00000 BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58613; File No. SR–Phlx– 2008–65] Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Administration and Enforcement of Certain Rules Pertaining to XLE September 22, 2008. (September 28, 2006), 71 FR 59184 (October 6, 2006) (SR–Phlx–2006–43) (Order approving XLE). Frm 00135 Fmt 4703 Sfmt 4703 E:\FR\FM\01OCN1.SGM 01OCN1 57182 Federal Register / Vol. 73, No. 191 / Wednesday, October 1, 2008 / Notices 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. 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 change the administration and enforcement of certain rules in light of the Shutdown. A more in-depth rule review may occur in the future; this proposal is intended to cover the specific rules that make trading available on XLE, which will no longer be the case after the Shutdown. Background The Exchange began XLE in 2006. The Exchange has continued to operate XLE through the July 2008 acquisition 6 of the Exchange by the NASDAQ OMX Group, Inc. (‘‘NASDAQ’’) and up to the present time. Following a review of the operations of the Exchange, including XLE and the fact that it currently accounts for less than one-tenth of one percent of national share volume in equity securities, it was determined to cease operation of the technology used to operate XLE. jlentini on PROD1PC65 with NOTICES The Shutdown The Exchange informed XLE Participants 7 on August 4, 2008, that the Exchange intends to discontinue XLE on or before October 24, 2008.8 As XLE Participants discontinue their operations on XLE and disconnect from the system, they will not be permitted to re-connect. Depending on the rate of disconnections, the Exchange 6 See Securities Exchange Act Release No. 58179 (July 17, 2008), 73 FR 42874 (July 23, 2008). 7 See Phlx Rule 1(nn). 8 At that time, XLE Participants were given information about applying for membership in the NASDAQ Stock Market as a means to continue their equity trading operations, if they so desired. XLE Participants are free to apply for membership at any trading venue. Nothing in this proposed rule change is intended to restrict their access at any other venue. VerDate Aug<31>2005 18:22 Sep 30, 2008 Jkt 214001 may determine to implement the Shutdown before October 24, 2008. In that event, the Exchange would notify any remaining XLE Participants at least 14 calendar days prior to the Shutdown. Current XLE Rules Today, XLE is available for the acceptance of orders from XLE Participants and the execution of those orders.9 On the day of the Shutdown and thereafter, XLE would no longer be available to accept orders and would not be available to execute any transactions. Any executions that took place before the Shutdown would clear and settle normally, even if such settlement was scheduled to take place after the Shutdown. Further, the Exchange’s optional outbound router, facilitated through PRO Securities LLC (‘‘PRO’’),10 will cease to accept and route orders on the day of the Shutdown because PRO will no longer receive any instructions to route orders to other trading centers from XLE.PRO was deemed to be a facility 11 of the Exchange because of its function as the provider of these outbound router services. Following the Shutdown, PRO would no longer act in its capacity as an outbound router for the Exchange; therefore, the Exchange would no longer administer PRO as its facility. Finally, the Exchange currently allows member organization that are XLE Participants and the members associated with them to register as Market Makers 12 and Market Maker Authorized Trader (‘‘MMATs’’),13 respectively.14 After the Shutdown, the Exchange will cancel the registrations of any Market Makers and MMATs that remain on XLE 15 and such persons will cease to have the obligations associated with Market Makers and MMATs 16 because after the Shutdown, there will be no venue for the Market Makers and MMATs to perform their functions. In addition, after the Shutdown, no further registrations for Market Makers or MMATs will be accepted because there will be no venue for Market Makers and MMATs to perform their functions. 9 See Phlx Rules 181 and 185. Phlx Rule 185(g). The function of PRO as the Exchange’s optional outbound routing facility is more fully described in Section IV.D. of the SR– Phlx–2006–43 approval order. See supra note 5. 11 15 U.S.C. 78c(a)(2). 12 See Phlx Rule 1(l). 13 See Phlx Rule 1(m). 14 See Phlx Rule 170(a), 171(b) and 172(a). 15 At this time, only one Market Maker, that has one MMAT, is registered in three securities on XLE. 16 See Phlx Rules 171 and 173. 10 See PO 00000 Frm 00136 Fmt 4703 Sfmt 4703 To the extent that these rules state that orders ‘‘will’’ be accepted and registrations will be permitted, for example, that will not occur after the Shutdown. The trading rules applicable to XLE will continue to be in effect respecting trades that occurred before the Shutdown and remain in the Exchange’s rulebook for ease of reference. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act 17 in general, and furthers the objectives of Section 6(b)(5) of the Act 18 in particular, in that it is 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, by providing notice of the Exchange’s policy regarding the administration and enforcement of certain Phlx Rules in light of the Shutdown. 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 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) of the Act and paragraph (f)(1) of Rule 19b–4 thereunder. 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. The Exchange designates the proposed rule change as constituting a stated policy, practice, or interpretation with respect, to the meaning, administration, or enforcement of an existing rule. Specifically, as described above, the Exchange has stated its policy regarding how it will administer 17 15 18 15 E:\FR\FM\01OCN1.SGM U.S.C. 78f(b). U.S.C. 78f(b)(5). 01OCN1 Federal Register / Vol. 73, No. 191 / Wednesday, October 1, 2008 / Notices and enforce the enumerated portions of Phlx Rules 170–174, 181 and 185 regarding XLE, Market Makers, MMATs and PRO in light of the Shutdown. IV. Solicitation of Comments For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.19 Florence E. Harmon, Acting Secretary. [FR Doc. E8–22960 Filed 9–30–08; 8:45 am] BILLING CODE 8010–01–P 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 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58629; File No. SR–NYSE– 2008–85] Paper Comments jlentini on PROD1PC65 with NOTICES Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Amending NYSE Rule 1000 (‘‘Automatic Execution of Limit Orders Against Orders Reflected in NYSE Published Quotation’’) September 24, 2008. • 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–2008–65. 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. 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–Phlx–2008–65 and should be submitted on or before October 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 September 17, 2008, New York Stock Exchange LLC ‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 18:22 Sep 30, 2008 Jkt 214001 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 • 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–2008–65 on the subject line. VerDate Aug<31>2005 57183 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Exchange Rule 1000(a)(iv)(C) to modify the current LRP value ranges. The text of the proposed rule change is available at NYSE, http://www.nyse.com, 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 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 19 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00137 Fmt 4703 Sfmt 4703 The Exchange proposes to amend Exchange Rule 1000(a)(iv)(C) (Liquidity Replenishment Point) to widen the value ranges for the calculation of liquidity replenishment points (‘‘LRPs’’). Background Pursuant to NYSE Rule 1000(a)(iv), LRPs are pre-determined price points that function to moderate volatility, improve price continuity, and foster market quality in a particular security by temporarily converting the electronic market to an auction market and permitting new orders, the Crowd, or the specialist, to add liquidity.3 Pursuant to NYSE Rule 60, Autoquote is suspended when an LRP is reached and resumes in no more than five to ten seconds after the LRP is reached.4 Autoquote resumes unless there is interest on the NYSE Display Book system 5 that would lock or cross the market. In such case, Autoquote will resume with a manual transaction.6 LRPs are calculated by adding and subtracting a value to the security’s last sale price. The LRP values are based on an examination of trading data and vary based on the security’s NYSE average daily volume (‘‘ADV’’), price, and volatility. The values used to calculate the LRP’s range do not change intraday 3 See also NYSE Rules 60(e)(i). It is important to note that not all securities on the NYSE are eligible for automatic executions. In accordance with Exchange Rule 1000(a)(vi) those securities that are priced at or more than $1000 per share are defined as ‘‘high-priced’’ and do not receive automatic executions and, therefore, are not assigned an LRP value ranges. 4 See NYSE Rule 60(e)(ii)(C). Currently, in an effort to increase the availability of NYSE quotes eligible for automatic execution, the NYSE will revert to auto-quoting in situations where the LRP has been hit but the market is not locked or crossed in five seconds. See Liquidity Replenishment Points (LRPs) Timer Pilot (August 20, 2008), NYSE Trader Updates available at: http:// traderupdates.nyse.com/2008/08/liquidity_ replenishment_points_2.html . 5 The Display Book system is an order management and execution facility. The Display Book system receives and displays orders to the specialists, contains the Book, and provides a mechanism to execute and report transactions and publish the results to the Consolidated Tape. The Display Book system is connected to a number of other Exchange systems for the purposes of comparison, surveillance, and reporting information to customers and other market data and national market systems. 6 See NYSE Rule 60(e)(ii)(C). E:\FR\FM\01OCN1.SGM 01OCN1

Agencies

[Federal Register Volume 73, Number 191 (Wednesday, October 1, 2008)]
[Notices]
[Pages 57181-57183]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-22960]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58613; File No. SR-Phlx-2008-65]


Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating to 
the Administration and Enforcement of Certain Rules Pertaining to XLE

September 22, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934,\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given that on 
September 5, 2008, NASDAQ OMX PHLX, Inc. (``Phlx'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``SEC'' or 
``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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange, pursuant to Section 19(b)(1) of the Act \3\ and Rule 
19b-4 thereunder,\4\ proposes to change the administration and 
enforcement of certain rules in light of the fact that the Exchange 
will cease operation of the technology used to operate XLE[supreg],\5\ 
the Exchange's equity trading system, on or before October 24, 2008 
(the ``Shutdown''). At this time, the Exchange is not proposing to 
amend the text of any rules, but simply to change the administration 
and enforcement of certain rules, as described below. The Shutdown will 
not affect any other trading systems or markets at Phlx.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78s(b)(1).
    \4\ 17 CFR 240.19b-4.
    \5\ See Securities Exchange Act Release No. 54538 (September 28, 
2006), 71 FR 59184 (October 6, 2006) (SR-Phlx-2006-43) (Order 
approving XLE[supreg]).

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[[Page 57182]]

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.

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 change the 
administration and enforcement of certain rules in light of the 
Shutdown. A more in-depth rule review may occur in the future; this 
proposal is intended to cover the specific rules that make trading 
available on XLE, which will no longer be the case after the Shutdown.
Background
    The Exchange began XLE[supreg] in 2006. The Exchange has continued 
to operate XLE[supreg] through the July 2008 acquisition \6\ of the 
Exchange by the NASDAQ OMX Group, Inc. (``NASDAQ'') and up to the 
present time. Following a review of the operations of the Exchange, 
including XLE[supreg] and the fact that it currently accounts for less 
than one-tenth of one percent of national share volume in equity 
securities, it was determined to cease operation of the technology used 
to operate XLE[supreg].
---------------------------------------------------------------------------

    \6\  See Securities Exchange Act Release No. 58179 (July 17, 
2008), 73 FR 42874 (July 23, 2008).
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The Shutdown
    The Exchange informed XLE Participants \7\ on August 4, 2008, that 
the Exchange intends to discontinue XLE[supreg] on or before October 
24, 2008.\8\ As XLE Participants discontinue their operations on 
XLE[supreg] and disconnect from the system, they will not be permitted 
to re-connect. Depending on the rate of disconnections, the Exchange 
may determine to implement the Shutdown before October 24, 2008. In 
that event, the Exchange would notify any remaining XLE Participants at 
least 14 calendar days prior to the Shutdown.
---------------------------------------------------------------------------

    \7\ See Phlx Rule 1(nn).
    \8\ At that time, XLE Participants were given information about 
applying for membership in the NASDAQ Stock Market as a means to 
continue their equity trading operations, if they so desired. XLE 
Participants are free to apply for membership at any trading venue. 
Nothing in this proposed rule change is intended to restrict their 
access at any other venue.
---------------------------------------------------------------------------

Current XLE Rules
    Today, XLE[supreg] is available for the acceptance of orders from 
XLE Participants and the execution of those orders.\9\ On the day of 
the Shutdown and thereafter, XLE[supreg] would no longer be available 
to accept orders and would not be available to execute any 
transactions. Any executions that took place before the Shutdown would 
clear and settle normally, even if such settlement was scheduled to 
take place after the Shutdown.
---------------------------------------------------------------------------

    \9\ See Phlx Rules 181 and 185.
---------------------------------------------------------------------------

    Further, the Exchange's optional outbound router, facilitated 
through PRO Securities LLC (``PRO''),\10\ will cease to accept and 
route orders on the day of the Shutdown because PRO will no longer 
receive any instructions to route orders to other trading centers from 
XLE[supreg].PRO was deemed to be a facility \11\ of the Exchange 
because of its function as the provider of these outbound router 
services. Following the Shutdown, PRO would no longer act in its 
capacity as an outbound router for the Exchange; therefore, the 
Exchange would no longer administer PRO as its facility.
---------------------------------------------------------------------------

    \10\ See Phlx Rule 185(g). The function of PRO as the Exchange's 
optional outbound routing facility is more fully described in 
Section IV.D. of the SR-Phlx-2006-43 approval order. See supra note 
5.
    \11\ 15 U.S.C. 78c(a)(2).
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    Finally, the Exchange currently allows member organization that are 
XLE Participants and the members associated with them to register as 
Market Makers \12\ and Market Maker Authorized Trader (``MMATs''),\13\ 
respectively.\14\ After the Shutdown, the Exchange will cancel the 
registrations of any Market Makers and MMATs that remain on XLE[supreg] 
\15\ and such persons will cease to have the obligations associated 
with Market Makers and MMATs \16\ because after the Shutdown, there 
will be no venue for the Market Makers and MMATs to perform their 
functions. In addition, after the Shutdown, no further registrations 
for Market Makers or MMATs will be accepted because there will be no 
venue for Market Makers and MMATs to perform their functions.
---------------------------------------------------------------------------

    \12\  See Phlx Rule 1(l).
    \13\ See Phlx Rule 1(m).
    \14\ See Phlx Rule 170(a), 171(b) and 172(a).
    \15\ At this time, only one Market Maker, that has one MMAT, is 
registered in three securities on XLE[supreg].
    \16\ See Phlx Rules 171 and 173.
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    To the extent that these rules state that orders ``will'' be 
accepted and registrations will be permitted, for example, that will 
not occur after the Shutdown. The trading rules applicable to XLE will 
continue to be in effect respecting trades that occurred before the 
Shutdown and remain in the Exchange's rulebook for ease of reference.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \17\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \18\ in particular, in that it is 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, by providing notice of the Exchange's policy regarding the 
administration and enforcement of certain Phlx Rules in light of the 
Shutdown.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f(b).
    \18\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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 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) of the Act and paragraph (f)(1) of Rule 19b-4 thereunder. 
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.
    The Exchange designates the proposed rule change as constituting a 
stated policy, practice, or interpretation with respect, to the 
meaning, administration, or enforcement of an existing rule. 
Specifically, as described above, the Exchange has stated its policy 
regarding how it will administer

[[Page 57183]]

and enforce the enumerated portions of Phlx Rules 170-174, 181 and 185 
regarding XLE[supreg], Market Makers, MMATs and PRO in light of the 
Shutdown.

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-2008-65 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-2008-65. 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. 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-Phlx-2008-65 and should be 
submitted on or before October 22, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
---------------------------------------------------------------------------

    \19\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-22960 Filed 9-30-08; 8:45 am]
BILLING CODE 8010-01-P