Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the NASDAQ OMX PHLX, Inc. Relating to an Increase in the Maximum Number of Quoters Permitted in an Option, 67239-67241 [E8-26957]
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Federal Register / Vol. 73, No. 220 / Thursday, November 13, 2008 / Notices
are calculated is necessary to allow the
Exchange to target cancellations that do
not have a valid justification.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
mstockstill on PROD1PC66 with NOTICES
1. Purpose
The purpose of this proposed rule
change is to amend the ISE’s
cancellation fee. The Exchange
currently has a cancellation fee of $2.00
that applies to Electronic Access
Members (‘‘EAMs’’) that cancelled at
least 500 orders in a month, for each
order cancellation in excess of the total
number of orders such member
executed that month. Further, all orders
from the same clearing EAM executed in
the same series on the same side of the
market at the same price within a 30
second period are aggregated and
counted as one executed order for
purposes of this fee. This fee is
currently charged only to customer
orders; broker-dealer orders, including
non-member market maker (FARMM)
orders, are excluded from this fee.
Recognizing that order cancellations
often happen in large numbers, the
purpose of this fee is to ease system
congestion and to fairly allocate costs
among members according to system
use. Some members recently have
sought to circumvent the fee by breaking
up their orders into a range of deep out
of the money options series in the same
underlying name that trade at the same
premium; in another [sic] words,
executing multiple orders within 30
seconds, but in related—not the same—
series of options. As noted above, ISE
currently aggregates executions only in
the same series, not related series. In
order to prevent market participants
from circumventing this fee, ISE
proposes to amend the current
execution-offset provision of the
cancellation fee. Specifically, in
calculating this fee, the Exchange will
aggregate together and count as one
cancelled order orders that are entered
and traded within 30 seconds, at the
same price, in the same underlying
symbol. The Exchange believes this
proposed fee change is justified to
counter the level of cancellation activity
and its effect on congestion.
This proposed fee change will be
operative on November 3, 2008.
2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under Section 6(b)(4) that an exchange
have an equitable allocation of
reasonable dues, fees and other charges
among its members and other persons
using its facilities. In particular, the
Exchange believes amending the
manner by which its cancellation fees
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17:13 Nov 12, 2008
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
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
The foregoing rule change has become
effective pursuant to section 19(b)(3) of
the Act 5 and Rule 19b–4(f)(2) 6
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.
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:
67239
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–ISE–2008–81 and should be
submitted on or before December 4,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–26884 Filed 11–12–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–58906; File No. SR–Phlx–
2008–76]
• 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–2008–81 on the subject
line.
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
NASDAQ OMX PHLX, Inc. Relating to
an Increase in the Maximum Number of
Quoters Permitted in an Option
Paper Comments
November 6, 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–ISE–2008–81. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
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 November
4, 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,
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
5 15
U.S.C. 78s(b)(3)(A).
6 17 CFR 19b–4(f)(2) [sic].
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1 15
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E:\FR\FM\13NON1.SGM
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67240
Federal Register / Vol. 73, No. 220 / Thursday, November 13, 2008 / Notices
and III, 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.
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 amend
Exchange Rule 507, Application for
Approval as an SQT or RSQT and
Assignment in Options, which governs
the assignment of options to Streaming
Quote Traders (‘‘SQTs’’) 5 and Remote
Streaming Quote Traders (‘‘RSQTs’’),6
by establishing a higher maximum
number of quoting participants
(‘‘Maximum Number of Quoters’’ or
‘‘MNQ’’) in equity options that are not
in the top 15% most actively traded
based upon monthly national volume.
The Exchange further proposes to
amend Commentary .05 to Rule 507 to
reflect the current practice of
announcing changes to the MNQ on its
web site.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.phlx.com/regulatory/
reg_rulefilings.aspx.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
3 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
5 An SQT is an Exchange Registered Options
Trader (‘‘ROT’’) who has received permission from
the Exchange to generate and submit options
quotations electronically through AUTOM in
eligible options to which such SQT is assigned. An
SQT may only submit such quotations while such
SQT is physically present on the floor of the
Exchange. See Exchange Rule 1014(b)(ii)(A).
6 An RSQT is a ROT that is a member or member
organization with no physical trading floor
presence who has received permission from the
Exchange to generate and submit option quotations
electronically through AUTOM in eligible options
to which such RSQT has been assigned. An RSQT
may only submit such quotations electronically
from off the floor of the Exchange. See Exchange
Rule 1014(b)(ii)(B).
mstockstill on PROD1PC66 with NOTICES
4 17
VerDate Aug<31>2005
17:13 Nov 12, 2008
Jkt 217001
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 provide additional liquidity
in equity options on the Exchange by
increasing the MNQ in certain options.
Currently, the Exchange limits the
number of participants that may be
assigned to a particular equity option at
any one time based upon each option’s
monthly national volume. Commentary
.02 to Rule 507 sets forth tiered MNQ
levels permitting 22 market participants
for the top 5% most actively traded
options; 17 market participants for next
10% most actively traded options, and
12 market participants for all other
options.7 The ranking is based upon the
preceding month’s national volumes.
The Exchange proposes to increase the
MNQ level for equity options that are
not in the top 15% most actively traded
from 12 market participants to 15.8
Finally, Commentary .05 to Rule 507
states that the Exchange will inform
market participants of changes to the
MNQ via Exchange circular. The
Exchange proposes to amend
Commentary .05 to Rule 507 to reflect
its current practice of announcing
changes to the MNQ on its Web site.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 9 in general, and furthers the
objectives of Section 6(b)(5) of the Act 10
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
7 When initially adopted, Commentary .01 (a)–(c)
established MNQ levels of 20 market participants
for the top 5% most actively traded options; 15
market participants for next 10% most actively
traded options; and 10 market participants for all
other options. See Securities Exchange Act Release
No. 55114 (January 17, 2007), 72 FR 3185 (January
24, 2007) (SR–Phlx–2006–81). These MNQ levels
were subsequently increased to the current levels of
22, 17, and 12, respectively. See Securities
Exchange Act Release No. 56261 (August 17, 2007),
72 FR 47112 (August 22, 2007) (SR–Phlx–2007–51).
8 Commentary .05 to Rule 507 states that the
Exchange may increase the MNQ levels established
in this Commentary (meaning the 22, 17, and 12
numbers established in Commentary .01(a)–(c)) by
submitting to the SEC a rule filing pursuant to
Section 19(b)(3)(A) of the Exchange Act. The
Exchange may decrease the MNQ levels established
in this Commentary upon SEC approval of a rule
filing submitted pursuant to Section 19(b)(2) of the
Exchange Act.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
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Frm 00123
Fmt 4703
Sfmt 4703
adding depth and liquidity to the
Exchange’s markets in certain equity
options.
The Exchange further believes that
increasing the MNQ in certain equity
options is pro-competitive, because it
adds depth and liquidity to the
Exchange’s markets by permitting
additional participants to compete on
the Exchange.
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
Because the foregoing rule does not (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
for 30 days from the date on which it
was filed, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, provided that the selfregulatory organization has given the
Commission written notice of its intent
to file the proposed rule change at least
five business days prior to the date of
filing of the proposed rule change or
such shorter time as designated by the
Commission, the proposed rule change
has become effective pursuant to
Section 19(b)(3)(A) of the Act 11 and
Rule 19b–4(f)(6) thereunder.12 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.
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide the Commission with written notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange fulfilled this requirement.
12 17
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Federal Register / Vol. 73, No. 220 / Thursday, November 13, 2008 / Notices
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:
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–2008–76 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.
mstockstill on PROD1PC66 with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–26957 Filed 11–12–08; 8:45 am]
[Release No. 34–58900; File No. SR–NYSE–
2008–105]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by New York
Stock Exchange LLC To Shorten the
Time Period for Listed Companies To
Issue a Press Release After Receipt of
Notification That the Company Is
Noncompliant With the Exchange’s
Price Test
November 5, 2008.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
All submissions should refer to File
‘‘Act’’),2 and Rule 19b–4 thereunder,3
Number SR–Phlx–2008–76. This file
notice is hereby given that on October
number should be included on the
subject line if e-mail is used. To help the 28, 2008, New York Stock Exchange,
LLC (the ‘‘NYSE’’ or the ‘‘Exchange’’)
Commission process and review your
filed with the Securities and Exchange
comments more efficiently, please use
only one method. The Commission will Commission (‘‘Commission’’ or ‘‘SEC’’)
post all comments on the Commission’s the proposed rule change as described
in Items I and II below, which items
Internet Web site (https://www.sec.gov/
have been prepared by the Exchange.
rules/sro.shtml). Copies of the
The Commission is publishing this
submission, all subsequent
notice to solicit comments on the
amendments, all written statements
proposed rule change from interested
with respect to the proposed rule
persons.
change that are filed with the
I. Self-Regulatory Organization’s
Commission, and all written
Statement of the Terms of Substance of
communications relating to the
the Proposed Rule Change
proposed rule change between the
Commission and any person, other than
The Exchange proposes to amend
those that may be withheld from the
Section 802.01C of the Exchange’s
public in accordance with the
Listed Company Manual (the ‘‘Manual’’)
provisions of 5 U.S.C. 552, will be
to provide that the Exchange will
require a U.S. company, upon receiving
available for inspection and copying in
written notification that it has fallen
the Commission’s Public Reference
below the Exchange’s $1.00 stock price
Room, 100 F Street, NE., Washington,
requirement over a 30 trading-day
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. average, to issue a press release within
Copies of the filing will also be available the same amount of time as allotted by
the SEC for the company to disclose
for inspection and copying at the
such an occurrence, but in any event no
principal office of the self-regulatory
later than four business days after
organization. All comments received
receipt of notification from the
will be posted without change; the
Exchange, and will require a non-U.S.
Commission does not edit personal
company to issue a press release within
identifying information from
30 days of receiving written notification
submissions. You should submit only
from the Exchange that it has fallen
information that you wish to make
below the Exchange’s $1.00 stock price
available publicly. All submissions
requirement. The text of the proposed
should refer to File Number SR–Phlx–
2008–76 and should be submitted on or
13 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
before December 4, 2008.
2 15
3 17
VerDate Aug<31>2005
18:08 Nov 12, 2008
Jkt 217001
PO 00000
U.S.C. 78a.
CFR 240.19b–4.
Frm 00124
Fmt 4703
67241
rule change is available on the
Exchange’s Web site (https://
www.nyse.com), at the Exchange’s
Office of the Secretary, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization 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 NYSE 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 proposes to amend
Section 802.01C of the Manual to
provide that the Exchange will require
a U.S. company, upon receiving written
notification that it has fallen below the
Exchange’s $1.00 stock price
requirement over a 30 trading-day
average, to issue a press release within
the same amount of time as allotted by
the SEC for the company to disclose
such an occurrence, but in any event no
later than four business days after
receipt of notice from the company. The
Exchange will require a non-U.S.
company to issue a press release within
30 days of receiving written notification
from the Exchange that it has fallen
below the Exchange’s $1.00 stock price
requirement. By doing so, the Exchange
is conforming its requirements under
Section 802.01C to the press release
requirements in relation to other
notifications of events of
noncompliance as set forth in Section
802.02 (for domestic companies) and
Section 802.03 (for foreign private
issuers).4
4 See Exchange Act Release No. 58487 (September
8, 2008), 73 FR 53303 (September 15, 2008) (SR–
NYSE–2008–59). Nothing in this proposal affects a
company’s obligations to disclose material news in
a timely fashion. See Section 202.05 of the Manual.
There are currently no companies that have
received notifications from the Exchange regarding
non-compliance with the Exchange’s stock price
continued listing requirements and that have not
already issued the required press release. As such,
the revised time periods this filing establishes for
companies that are non-compliant under Sections
802.01C (including foreign companies) will apply
only to those companies that receive a notice of
Continued
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]]>Agencies
[Federal Register Volume 73, Number 220 (Thursday, November 13, 2008)]
[Notices]
[Pages 67239-67241]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-26957]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58906; File No. SR-Phlx-2008-76]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the NASDAQ OMX PHLX, Inc.
Relating to an Increase in the Maximum Number of Quoters Permitted in
an Option
November 6, 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 November 4, 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,
[[Page 67240]]
and III, 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.
---------------------------------------------------------------------------
\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 amend Exchange Rule 507, Application
for Approval as an SQT or RSQT and Assignment in Options, which governs
the assignment of options to Streaming Quote Traders (``SQTs'') \5\ and
Remote Streaming Quote Traders (``RSQTs''),\6\ by establishing a higher
maximum number of quoting participants (``Maximum Number of Quoters''
or ``MNQ'') in equity options that are not in the top 15% most actively
traded based upon monthly national volume.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78s(b)(1).
\4\ 17 CFR 240.19b-4.
\5\ An SQT is an Exchange Registered Options Trader (``ROT'')
who has received permission from the Exchange to generate and submit
options quotations electronically through AUTOM in eligible options
to which such SQT is assigned. An SQT may only submit such
quotations while such SQT is physically present on the floor of the
Exchange. See Exchange Rule 1014(b)(ii)(A).
\6\ An RSQT is a ROT that is a member or member organization
with no physical trading floor presence who has received permission
from the Exchange to generate and submit option quotations
electronically through AUTOM in eligible options to which such RSQT
has been assigned. An RSQT may only submit such quotations
electronically from off the floor of the Exchange. See Exchange Rule
1014(b)(ii)(B).
---------------------------------------------------------------------------
The Exchange further proposes to amend Commentary .05 to Rule 507
to reflect the current practice of announcing changes to the MNQ on its
web site.
The text of the proposed rule change is available on the Exchange's
Web site at https://www.phlx.com/regulatory/reg_rulefilings.aspx.
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 provide additional
liquidity in equity options on the Exchange by increasing the MNQ in
certain options.
Currently, the Exchange limits the number of participants that may
be assigned to a particular equity option at any one time based upon
each option's monthly national volume. Commentary .02 to Rule 507 sets
forth tiered MNQ levels permitting 22 market participants for the top
5% most actively traded options; 17 market participants for next 10%
most actively traded options, and 12 market participants for all other
options.\7\ The ranking is based upon the preceding month's national
volumes. The Exchange proposes to increase the MNQ level for equity
options that are not in the top 15% most actively traded from 12 market
participants to 15.\8\
---------------------------------------------------------------------------
\7\ When initially adopted, Commentary .01 (a)-(c) established
MNQ levels of 20 market participants for the top 5% most actively
traded options; 15 market participants for next 10% most actively
traded options; and 10 market participants for all other options.
See Securities Exchange Act Release No. 55114 (January 17, 2007), 72
FR 3185 (January 24, 2007) (SR-Phlx-2006-81). These MNQ levels were
subsequently increased to the current levels of 22, 17, and 12,
respectively. See Securities Exchange Act Release No. 56261 (August
17, 2007), 72 FR 47112 (August 22, 2007) (SR-Phlx-2007-51).
\8\ Commentary .05 to Rule 507 states that the Exchange may
increase the MNQ levels established in this Commentary (meaning the
22, 17, and 12 numbers established in Commentary .01(a)-(c)) by
submitting to the SEC a rule filing pursuant to Section 19(b)(3)(A)
of the Exchange Act. The Exchange may decrease the MNQ levels
established in this Commentary upon SEC approval of a rule filing
submitted pursuant to Section 19(b)(2) of the Exchange Act.
---------------------------------------------------------------------------
Finally, Commentary .05 to Rule 507 states that the Exchange will
inform market participants of changes to the MNQ via Exchange circular.
The Exchange proposes to amend Commentary .05 to Rule 507 to reflect
its current practice of announcing changes to the MNQ on its Web site.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \9\ in general, and furthers the objectives of Section
6(b)(5) of the Act \10\ 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 adding depth and liquidity to the Exchange's markets in
certain equity options.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange further believes that increasing the MNQ in certain
equity options is pro-competitive, because it adds depth and liquidity
to the Exchange's markets by permitting additional participants to
compete on the Exchange.
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
Because the foregoing rule does not (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest, provided that the self-regulatory organization
has given the Commission written notice of its intent to file the
proposed rule change at least five business days prior to the date of
filing of the proposed rule change or such shorter time as designated
by the Commission, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6)
thereunder.\12\ 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.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with written notice of its intent to file the proposed rule change,
along with a brief description and text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange fulfilled this requirement.
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[[Page 67241]]
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-2008-76 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-2008-76. 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 will also be available for
inspection and copying at the principal office of the self-regulatory
organization. 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-2008-76 and should be submitted on or before December 4, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-26957 Filed 11-12-08; 8:45 am]
BILLING CODE 8011-01-P
