[Federal Register: September 17, 2003 (Volume 68, Number 180)]
[Notices]
[Page 54513-54516]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17se03-149]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-48472; File No. SR-PHLX-2002-86]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Order Granting Approval to Proposed Rule Change and Amendments No. 1,
2, and 3 Thereto and Notice of Filing and Order Granting Accelerated
Approval of Amendments No. 4 and 5 Thereto Relating to the Automatic
Execution of Booked Customer Limit Orders
September 10, 2003.
On December 20, 2002, the Philadelphia Stock Exchange (``PHLX'' or
``Exchange'') submitted to the Securities and Exchange Commission
(``Commission'' or ``SEC''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4
thereunder,\2\ a proposed rule change relating to automatic execution
of booked customer limited orders. On February 27, 2003, the Exchange
filed Amendment No. 1 to the proposed rule change.\3\ On March 28,
2003, the Exchange filed Amendment No. 2 to the proposed rule
change.\4\ On April 9, 2003, the Exchange filed Amendment No. 3 to the
proposed rule change.\5\ The proposed rule change, as modified by
Amendments No. 1, 2, and 3, was published in the Federal Register on
April 16, 2003.\6\ The Commission received one comment letter with
respect to the proposal.\7\ The Exchange submitted a letter in response
to ISE Letter on May 20, 2003.\8\ On July 9, 2003 and August 15, 2003,
the Exchange submitted Amendments No. 4 \9\ and 5 \10\ to the proposed
rule change, respectively. This order approves the proposed rule change
and Amendments No. 1, 2, and 3, accelerates approval of Amendments No.
4 and 5, and solicits comments from interested persons on Amendments
No. 4 and 5.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Letter from Richard S. Rudolph, Director and Counsel,
PHLX to Deborah Lassman Flynn, Assistant Director, Division of
Market Regulation (``Division''), Commission, dated February 26,
2003 (``Amendment No. 1''). In Amendment No. 1, the PHLX replaces in
its entirety the original proposed rule change.
\4\ See Letter from Richard S. Rudolph, Director and Counsel,
PHLX to Deborah Lassman Flynn, Assistant Director, Division,
Commission, dated March 27, 2003 (``Amendment No. 2''). In Amendment
No. 2, the PHLX replaces in its entirety Amendment No. 1.
\5\ See Letter from Richard S. Rudolph, Director and Counsel,
PHLX to Deborah Lassman Flynn, Assistant Director, Division,
Commission, dated April 9, 2003 (``Amendment No. 3''). In Amendment
No. 3, the PHLX incorporates changes to the text of the PHLX Rule
1080 that have been made in separate proposed rule change filings
since the time the current proposed rule change was submitted.
\6\ See Securities Exchange Act Release No. 47657 (April 10,
2003), 68 FR 18717.
\7\ See Letter from Michael J. Simon, Senior Vice President and
Secretary, International Securities Exchange, Inc. (``ISE'') to
Jonathan G. Katz, Secretary, Commission, dated May 7, 2003 (``ISE
Letter'').
\8\ See Letter from Richard S. Rudolph, Director and Counsel,
PHLX to Jonathan G. Katz, Secretary, Commission, dated May 20, 2003
(``PHLX Letter'').
\9\ See Letter from Richard S. Rudolph, Director and Counsel,
PHLX to Deborah Lassman Flynn, Assistant Director, Division,
Commission, dated July 8, 2003 (``Amendment No. 4''). In Amendment
No. 4, the Exchange propose to adopt new rule texts to clarify the
scope of the application of the exposure requirement, and provides
clarifying language to the proposal relating to the definition of
the term ``off-floor broker-dealers'' and the internalization of
orders delivered to the Exchange.
\10\ See Letter from Richard S. Rudolph, Director and Counsel,
PHLX to Deborah Lassman Flynn, Assistant Director, Division,
Commission, dated August 15, 2003 (``Amendment No. 5''). In
Amendment No. 5, the Exchange proposes deleting the 10-second timer
provision and implementing Book Match, on an issue-by-issue basis,
no later than October 1, 2003.
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I. Description of the Proposed Rule Change
The PHLX proposes to amend PHLX Rule 1080, Philadelphia Stock
Exchange Automated Options Market (``AUTOM'') and Automatic Execution
System (``AUTO-X''),\11\ to provide for the automatic execution of
eligible inbound customer and off-floor broker-dealer limit orders \12\
against booked customer limit orders at the Exchange's disseminated
price. Specifically, the Exchange is proposing to amend PHLX Rule
1080(g) to reflect that the contra-side of an eligible inbound customer
or off-floor broker-dealer limit order executed via AUTO-X may be a
booked customer limit order.
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\11\ AUTOM is the Exchange's electronic order delivery, routing,
execution and reporting system, which provides for the automatic
entry and routing of equity option and index option orders to the
Exchange trading floor. Orders delivered through AUTOM may be
executed manually, or certain orders are eligible for AUTOM's
automatic execution feature, AUTO-X. Equity option and index option
specialists are required by the Exchange to participate in AUTOM and
its features and enhancements. Option orders entered by Exchange
members into AUTOM are routed to the appropriate specialist unit on
the Exchange trading floor. See PHLX Rule 1080.
\12\ In April of 2002, the Commission approved, on a six-month
pilot basis, the Exchange's proposal to allow off-floor broker-
dealers to submit proprietary limit orders directly onto the limit
order book via AUTOM (the ``pilot''). See Securities Exchange Act
Release No. 45758 (April 15, 2002), 67 FR 19610 (April 22, 2002)
(SR-PHLX-2001-40). In the pilot, the Exchange defined ``off-floor
broker-dealer'' as (a) a broker-dealer that delivers orders from
``upstairs'' for the proprietary account(s) of such broker-dealer,
or (b) a market maker located on an exchange or trading floor other
than the Exchange's trading floor who elects to deliver orders via
AUTOM for the proprietary account(s) of such broker-dealer. The
Commission approved the pilot on a permanent basis in October 2002.
See Securities Exchange Act Release No. 46660 (October 15, 2002), 67
FR 64951 (October 22, 2002) (SR-PHLX-2002-50).
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The purpose of the proposal is to increase automated options order
handling by enabling the Exchange to automatically execute eligible
inbound customer and off-floor broker-dealer limit orders delivered via
AUTOM against customer limit orders on the specialist's limit order
book.\13\ The proposal represents the first phase (``Phase I'') of the
Exchange's ``Book Match'' system, which the Exchange anticipates will
eventually automatically match all eligible inbound order types against
orders resting on the limit order book (``booked limit orders'').\14\
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\13\ The electronic ``limit order book'' is the Exchange's
automated specialist limit order book, which automatically routes
all unexecuted AUTOM orders to the book and displays orders real-
time in order of price-time priority. Orders not delivered through
AUTOM may also be entered onto the limit order book. See PHLX Rule
1080, Commentary .02.
\14\ The Exchange notes that it was required by the Commission
to commit to the automatic execution of eligible inbound orders
against specialist and Registered Options Trader (``ROT'') limit
orders entered onto the limit order book through an electronic
interface system known as ``ROT Access'' under the Order Instituting
Public Administrative Proceedings Pursuant to Section 19(h)(1) of
the Securities Exchange Act of 1934, Making Findings and Imposing
Remedial Sanctions. See Securities Exchange Act Release No. 43268
(September 11, 2000), Administrative Proceeding File 3-10282 (the
``Order''). See also Securities Exchange Act Release No. 46763
(November 1, 2002), 67 FR 68898 (November 13, 2002) (SR-PHLX-2002-
04). The Exchange has committed to roll out the system for the
automatic execution of orders placed on the limit order book through
ROT Access beginning in January 2004. The instant proposal
represents the first phase in the eventual rollout of that system.
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Currently, the Exchange's AUTOM System and its automatic execution
feature, AUTO-X, do not automatically execute otherwise eligible
inbound orders if all or part of the Exchange's disseminated size at
the disseminated
[[Page 54514]]
price consists of a booked limit order. In that situation, inbound
orders that would otherwise be eligible for automatic execution are
matched manually by the specialist.\15\
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\15\ PHLX Rule 1080(c)(iv) sets forth the various situations in
which orders otherwise eligible for automatic execution via AUTO-X
are handled manually by the specialist, including this situation,
where there is a booked limit order. See Securities Exchange Act
Release No. 45927 (May 15, 2002), 67 FR 36289 (May 23, 2002) (SR-
PHLX-2001-24).
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The Exchange proposes, pursuant to proposed PHLX Rule 1080(g)(ii),
that when the Exchange's disseminated price is equal to the National
Best Bid or Offer (``NBBO''), and all or part of the Exchange's
disseminated size at the NBBO disseminated price includes a customer
limit order on the book, eligible inbound customer and off-floor
broker-dealer limit orders would be automatically executed against
booked customer limit orders at the NBBO, up to the size of the booked
customer limit orders at the NBBO.\16\ If the inbound customer or off-
floor broker-dealer limit order is for a greater size than the
Exchange's disseminated size, the remaining portion of the order would
be executed manually or placed on the limit order book by the
specialist.\17\ The Exchange proposes to deploy Book Match, on an
issue-by-issue basis, no later than October 1, 2003.\18\
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\16\ The disseminated price consisting of a booked limit order
at which the eligible inbound order would be executed must be the
NBBO. For instance, if the PHLX bid is the National Best Bid, but
the PHLX offer is not the National Best Offer, an inbound buy order
would not be subject to Book Match, but would instead be handled
manually.
\17\ In Amendment No. 5, the Exchange proposes to delete the 10-
second timer initially proposed. See Amendment No. 5, supra note 10.
\18\ See Amendment No. 5, supra note 10.
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a. Order Entry Firm Orders Delivered by Such Order Entry Firm, an
Affiliated Firm, or a Solicited Party
The Exchange believes that the Book Match proposal could create an
opportunity for off-floor member organizations to internalize orders
(i.e., submit a proprietary order as contra-side to their customers'
limit orders on the book) without providing the specialist and trading
crowd with a sufficient time period to determine to execute the
customer limit order.
To address this potential issue, the Exchange originally proposed
requiring member organizations that seek to submit a related
proprietary contra-side order (i.e., their own order or that of an
affiliate) via AUTOM in conjunction with a customer limit order they
deliver to the limit order book, to designate such orders with a
special indicator (``K'' for the customer limit order, and ``L'' for
the proprietary order). Such orders would not be eligible for AUTO-X or
Book Match, and the customer limit order labeled ``K'' must be exposed
to the crowd for a period of 30 seconds before it would be eligible to
be executed against the proprietary order labeled ``L.'' The proposal
would provide that the customer limit order on the book may be executed
by the specialist or crowd prior to the expiration of 30 seconds.
In Amendment No. 4, the Exchange amended this aspect of its
proposed rule change to broaden the application of the above exposure
requirement to solicited party orders. As amended, the Exchange would
require that member organizations that seek to submit a customer limit
order and a related proprietary contra-side order (i.e., their own
order, an affiliate order, or a solicited party order as defined in
PHLX Rule 1064(c)(ii)) delivered via AUTOM, to designate such orders
with a special indicator (``K'' for the customer limit order, and ``L''
for the proprietary order).\19\ Such orders would not be eligible for
AUTO-X or Book Match, and the customer limit order labeled ``K'' must
be exposed to the crowd for a period of 30- seconds before it would be
eligible to be executed, in whole or in part, against proprietary
orders with labeled ``L'' indicator. The proposal would also provide
that the customer limit order on the book may be executed by the
specialist or crowd at anytime.
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\19\ See Amendment No. 4, supra note 9.
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The Exchange also amended the proposed rule change, pursuant to
Amendment No. 4, to prohibit an Exchange member or member organization
from being a party to any arrangement designed to circumvent the
crossing procedures discussed above, by providing an opportunity for a
customer, member, member organization, or non-member broker-dealer, to
execute immediately against agency orders delivered to the Exchange,
whether such orders are delivered via AUTOM or represented in the
trading crowd by a member or member organization.\20\
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\20\ Id.
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b. Linkage Orders
The Exchange further believes that the Book Match function will
enable the Exchange to promptly execute orders delivered to the
Exchange pursuant to the Plan for the Purpose of Creating and Operating
an Intermarket Options Linkage (the ``Plan'') \21\ and PHLX Rules 1083-
1087 adopted to implement the Plan,\22\ by matching eligible inbound
linkage orders in a timely fashion. The Exchange represents that its
systems are capable of recognizing inbound Linkage Principal Acting as
Agent Orders (``P/A Orders'')\23\ and Principal Orders (``P
Orders''),\24\ and that Book Match would execute eligible linkage
orders at the Firm Customer Quote Size \25\ in the case of P/A Orders,
and at the Firm Principal Quote Size \26\ in the case of P Orders.
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\21\ See Securities Exchange Act Release Nos. 44482 (June 27,
2001), 66 FR 35470 (July 5, 2001); 43573 (November 16, 2000), 65 FR
70851 (November 28, 2000) (Notice of PHLX Joining the Plan); and
43086 (July 28, 2000), 65 FR 48023 (August 4, 2000) (Approval of the
Plan).
\22\ See Securities Exchange Act Release No. 47296 (January 31,
2003), 68 FR 6528 (February 7, 2003) (SR-PHLX-2002-67).
\23\ PHLX Rule 1083(j)(i) defines a ``P/A Order'' as an order
for the principal account of a specialist (or equivalent entity on
another exchange that is authorized to represent Public Customer
orders), reflecting the terms of a related unexecuted Public
Customer order for which the specialist is acting as agent.
\24\ PHLX Rule 1083(j)(ii) defines a ``P Order'' as an order for
the principal account of an eligible market maker and is not a P/A
Order.
\25\ ``Firm Customer Quote Size'' with respect to a P/A Order
means the lesser of (a) the number of option contracts that the
exchange sending a P/A Order guarantees it will automatically
execute at its disseminated price in a series of an eligible option
class for public customer orders entered directly for execution in
that market; or (b) the number of option contracts that the exchange
receiving a P/A Order guarantees it will automatically execute at
its disseminated price in a series of an eligible option class for
public customer orders entered directly for execution in that
market. This number shall be at least 10. See PHLX Rule 1083(g).
\26\ ``Firm Principal Quote Size'' means the number of options
contracts that an exchange guarantees it will execute at its
disseminated price for incoming Principal Orders in an eligible
option class. This number shall be at least 10. See PHLX Rule
1083(h).
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c. Yielding Requirements
The Exchange also proposed to match both inbound marketable
customer and off-floor broker-dealer limit orders with customer limit
orders on the book at the NBBO. In the case of inbound non-marketable
limit orders, the Exchange's rules concerning the establishment of a
bid or offer, and yielding requirements in parity situations would
apply. Currently, PHLX Rule 1080, Commentary .05(ii) provides that off-
floor broker-dealer limit orders entered via AUTOM establishing a bid
or offer may establish priority, and the specialist and crowd may match
such a bid or offer and be at parity, subject to the yield provisions
set forth in PHLX Rule 1014, which require ``controlled accounts''\27\
to yield priority to customer orders when bidding or
[[Page 54515]]
offering at the same price for the same series.
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\27\ PHLX Rule 1014(g)(i)(A) provides that an account type is
either a controlled account or a customer account. A controlled
account includes any account controlled by or under common control
with a broker-dealer (specialist accounts of PHLX option
specialists, however, are not subject to yielding requirements
placed upon controlled accounts by this rule). Customer accounts are
all other accounts.
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Orders of controlled accounts must yield priority to customer
orders.\28\ Off-floor broker-dealer accounts, a subset of ``controlled
accounts,'' must also yield priority to customer orders at the same
price. Therefore, if an off-floor broker-dealer limit order is placed
on the limit order book, followed by a customer limit order placed on
the limit order book at the same price, the off-floor broker-dealer
limit order must yield priority to the customer limit order, even
though the customer limit order was placed on the limit order book
after the off-floor broker-dealer order.\29\
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\28\ The Commission recently approved PHLX's proposal to require
orders of controlled accounts to yield priority to customer orders
in all circumstances. See Securities Exchange Act Release No. 47739
(April 25, 2003), 68 FR 23354 (May 1, 2003). Previously, PHLX ROTs
closing in-person were not required to yield priority to orders of
customer accounts. Id.
\29\ At the request of the Exchange, the discussion under this
section has been modified slightly to reflect recent changes to the
PHLX rules. Telephone conversation between Richard S. Rudolph,
Director and Counsel, PHLX and Hong-Anh Tran, Special Counsel,
Division, Commission, on September 5, 2003.
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II. Comment Summary
The Commission received one comment letter on the proposed rule
change that generally opposed the Exchange's proposal relating to its
crossing procedures pursuant to Rule 1080(ii).\30\
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\30\ See ISE Letter, supra note 7.
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Specifically, ISE stated that the Exchange's proposed term ``off-
floor broker-dealer,'' which included two alternative definitions of
the same term, appeared to be redundant. The term ``off-floor broker-
dealer'' would involve either: (1) A broker-dealer that delivers orders
from off the floor of the Exchange for the proprietary account(s) of
such broker-dealers; or (2) a market maker located on an exchange or
trading floor other than the Exchange's trading floor who elects to
deliver orders via AUTOM for the proprietary account(s) of such market
maker. ISE argued that the Exchange does not need the second clause
above, since orders of market makers from other exchanges are also
proprietary orders of a broker-dealer.
Furthermore, ISE believed that the exposure requirement does not
appear sufficiently broad because the Exchange stated that the exposure
requirement would apply to customer limit order submitted ``in
conjunction'' with a proprietary contra-side order via AUTOM. ISE
stated that if this were the case, then the exposure requirement would
be too narrow, as it would allow broker-dealers to enter two orders
separately, but within a few seconds of each other, to avoid the 30-
second exposure requirement altogether.
ISE also believed that the Exchange should include an exposure
requirement (i.e., 30 seconds) for solicited transactions.
In addition, ISE argued that the Exchange should adopt provisions:
(1) To prohibit Exchange members from entering into arrangements with
other broker-dealers to do crossing transactions without applying the
same exposure requirement; and (2) to prohibit Exchange members from
violating the exposure requirement for solicited orders.
On July 8, 2003, the Exchange submitted Amendment No. 4 in response
to ISE's comments. In particular, the Exchange amended the proposed
rule text relating to the term ``off-floor broker-dealer,'' to clarify
that off-broker-dealer orders include orders of market makers from
other exchanges.\31\ The Exchange also amended the proposed rule text
to clarify that the exposure requirement would also apply to solicited
transactions.\32\ Furthermore, the Exchange proposed to add new rule
text, pursuant to PHLX Rules 1080(b)(ii)(B), to prevent any Exchange
member or member organization from being a party to any arrangement to
circumvent the proposed crossing procedures, pursuant to PHLX Rule
1080(b)(ii)(A), by providing an opportunity for a customer, member,
member organization, or non-member broker-dealer to execute against an
agency order immediately, whether delivered via AUTOM or represented in
the trading crowd by a member or a member organization.\33\
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\31\ See Amendment No. 4, supra note 9.
\32\ Id.
\33\ Id.
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III. Discussion
The Commission has reviewed carefully the proposed rule change, the
comment letter, the Exchange's response to the comments, and all the
amendments and finds that the proposed rule change, as amended, is
consistent with the requirements of Section 6(b)(5)\34\ of the Act and
the rules and regulations thereunder applicable to a national
securities exchange.\35\ In particular, the Commission believes that
the proposed rule change, as amended by Amendments No. 4 and 5, is
consistent with Section 6(b)(5) of the Act,\36\ which requires, among
other things, that the rules of an exchange be designed to promote just
and equitable principles of trade, to facilitate transactions in
securities, to remove impediments to and perfect the mechanisms of a
free and open market and a national market system, and, in general to
protect investors and the public interest.
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\34\ 15 U.S.C. 78f(b)(5).
\35\ In approving this proposed rule change, the Commission
notes that it has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
\36\ 15 U.S.C. 78f(b)(5).
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The Commission anticipates that the Book Match should help to
provide faster execution of certain eligible inbound customer and off-
floor broker-dealer options orders, while reducing the burden on the
Exchange's specialists to manually execute these orders. The Commission
believes that the Book Match proposal should benefit customers using
the AUTO-X system, as well as customers whose orders are residing in
the Exchange's customer limit order book that are at the NBBO.
Moreover, the PHLX represents that the Book Match function would
operate consistent with the Plan and PHLX Rules 1083 through 1087
adopted to implement the Plan, and that Book Match would execute
eligible linkage orders at the Firm Customer Quote Size in the case of
P/A Orders (i.e., the inbound customer orders), and at the Firm
Principal Quote Size (i.e., the inbound off-floor broker-dealer orders)
in the case of P Orders.
The SEC notes that the Exchange has specifically clarified that
off-floor broker-dealer orders are subject to the priority-yielding
provision of PHLX Rule 1014(g)(i). The Commission believes that this
requirement of the proposal should ensure that retail customers are not
adversely affected and should promote investor protection by retaining
customer orders' priority on the book.
Moreover, the SEC finds that the proposed rules relating to
internalization of orders delivered via AUTOM should address the
commenter's concern that the proposed exposure requirement should be
applied to any pre-arranged proprietary or solicited crosses.\37\
Specifically, by requiring an Exchange member or member organization to
expose to the trading crowd for at least 30 seconds an agency order
before executing any part of the order as principal, or before such
order may be executed by any order solicited by the originating broker-
dealer, these rules should potentially ensure that the crossing and
facilitation
[[Page 54516]]
procedures described above are not circumvented.
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\37\ The Commission previously approved similar provisions as
part of ISE's rules and CBOEDirect's rules. See ISE Rules 717(d) and
(e), Supplemental Materials .01 and .02; and CBOE Rule 43.12C.
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The Commission believes that the prohibition on such arrangements
is important to prevent members or member organizations and a third
party from having their orders executed against each other, without
exposing these orders to other trading interest. The SEC expects the
Exchange to develop a surveillance procedure to identify patterns in
which a firm places an order on the book and then shortly thereafter
submits a contra side order executing against the prior related order.
The SEC expects PHLX surveillance to address the SEC's concern that
firms may potentially game the internalization aspect of Book Match by
mismarking orders.
The Commission finds good cause for approving Amendments No. 4 and
5 prior to the thirtieth day after the date of publication of notice of
filing thereof in the Federal Register. Amendment No. 4 should clarify
the scope of the application of the exposure requirement, and the
proposed language relating to the internalization of orders delivered
via AUTOM and responds to the comment letter. Moreover, Amendment No. 5
is similar to proposed rule changes that were previously approved by
the Commission.\38\ Thus, Amendment No. 5 concerns issues that
previously have been the subject of a full comment period pursuant to
Section 19(b) of the Act,\39\ and thus raises no novel issues.\40\ The
SEC notes that Book Match will be deployed, on an issue-by-issue basis,
no later than October 1, 2003. Accordingly, the Commission believes
that there is good cause, consistent with Section 19(b) of the Act,\41\
to approve Amendments No. 4 and 5 to the proposal on an accelerated
basis.
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\38\ See Securities Exchange Release Nos. 44462 (June 21, 2001),
66 FR 34495 (June 28, 2001) (order approving the Chicago Board
Options Exchange's (``CBOE'') proposal relating to automatic
execution of certain orders on the CBOE's electronic limit order
book); and 42652 (April 7, 2000), 65 FR 20235 (April 14, 2000)
(order approving the American Stock Exchange's (``AMEX'') proposal
relating to Auto-Match).
\39\ 15 U.S.C. 78s(b).
\40\ See supra note 10.
\41\ 15 U.S.C. 78s(b).
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IV. Solicitation of Comments
Interested persons are invited to submit written date, views and
arguments concerning Amendments No. 4 and 5, including whether
Amendments No. 4 and 5 are consistent with the Act. Persons making
written submissions should file six copies thereof with the Secretary,
Securities and Exchange Commission, 450 Fifth Street, NW, Washington,
DC 20549-0609. Copies of the submission, all subsequent amendments, all
written statements with respect to Amendments No. 4 and 5 that are
filed with the Commission, and all written communications relating to
Amendments No. 4 and 5 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. Copies of such
filing will also be available for inspection and copying at the
principal office of the PHLX. All submissions should refer to File No.
SR-PHLX-2002-86 and should be submitted by October 8, 2003.
V. Conclusion
It Is Therefore Ordered, pursuant to Section 19(b)(2) of the
Act,\42\ that the proposed rule change (SR-PHLX-2002-86), as amended by
Amendments No. 4 and 5 be, and hereby is, approved, and that Amendments
No. 4 and 5 to the proposed rule change be, and hereby are, approved on
an accelerated basis.
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\42\ 15 U.S.C. 78s(b)(2).
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\43\
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\43\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-23739 Filed 9-16-03; 8:45 am]
BILLING CODE 8010-01-P