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]
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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 (https://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).
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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 (https://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
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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
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Fmt 4703
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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.
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 (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 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 (https://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, https://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
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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: https://
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).
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]]>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]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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).
---------------------------------------------------------------------------
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).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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.
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\17\ 15 U.S.C. 78f(b).
\18\ 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 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 (https://
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 (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 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\
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\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
