[Federal Register: July 18, 2008 (Volume 73, Number 139)]
[Notices]
[Page 41394-41395]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18jy08-128]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58144; File No. SR-Phlx-2008-49]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Transaction Charges Applicable to Linkage ``P'' and ``P/A''
Orders
July 11, 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 June 30, 2008, the Philadelphia Stock Exchange, Inc. (``Phlx'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Phlx, pursuant to Section 19(b)(1) of the Act \3\ and Rule 19b-
4 thereunder,\4\ proposes to extend for a one-year period until July
31, 2009, a pilot program relating to transaction fees applicable to
the execution of Principal Acting as Agent Orders (``P/A Orders'') \5\
and Principal Orders (``P Orders'') \6\ sent to the Exchange via the
Intermarket Options Linkage (``Linkage'') under the Plan for the
Purpose of Creating and Operating an Intermarket Option Linkage (the
``Plan'').\7\ The text of the proposed rule change is available on the
Exchange's Web site at http://www.phlx.com, at the Exchange, and the
Commission's Public Reference Room.
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\3\ 15 U.S.C. 78s(b)(1).
\4\ 17 CFR 240.19b-4.
\5\ A P/A Order is an order for the principal account of a
specialist (or equivalent entity on another participant 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. See Exchange Rule 1083(k)(i).
\6\ A Principal Order is an order for the principal account of
an Eligible Market Maker and is not a P/A Order. See Exchange rule
1083(k)(ii).
\7\ See Securities Exchange Act Release Nos. 44482 (June 27,
2001), 66 FR 35470 (July 5, 2001) (File No. 4-429) (Amendment to
Plan to Conform to the Requirements of Securities Exchange Act Rule
11Ac1-7); 43573 (November 16, 2000), 65 FR 70851 (November 28, 2000)
(File No. 4-429) (Order Approving Phlx Joining the Plan); and 43086
(July 28, 2000), 65 FR 48023 (August 4, 2000) (File No. 4-429)
(Approval of the Plan).
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Phlx included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Phlx has prepared summaries, set forth in Sections
A, B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to extend the current
pilot program for one year, through July 31, 2009. No substantive
changes are being made to the pilot as it currently operates other than
to extend the pilot through July 31, 2009.
Currently, the Exchange charges $0.25 per option contract for P
Orders sent to the Exchange and $0.15 per option contract for P/A
Orders.
By extending the current pilot program, the Exchange should remain
competitive with other exchanges that charge fees for P Orders and P/A
Orders.\8\ Consistent with current practice, the Exchange will charge
the clearing member organization of the sender of P Orders and P/A
Orders. Also, consistent with current practice, the Exchange will not
charge for the execution of Satisfaction Orders sent through Linkage.
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\8\ See, e.g., SR-ISE-2008-52 (filed June 24, 2008) and SR-CBOE-
2008-69 (filed June 30, 2008).
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2. Statutory Basis
The Exchange believes that its proposal to amend its schedule of
fees is consistent with Section 6(b) of the
[[Page 41395]]
Act \9\ in general, and furthers the objectives of Section 6(b)(4) of
the Act \10\ in particular, in that it is an equitable allocation of
reasonable fees and other charges among Exchange members and issuers
and other persons using its facilities. The Exchange believes that its
proposal to extend the pilot program relating to transaction fees for
Linkage P and P/A Orders provides for the equitable allocation of
reasonable dues, fees, and other charges among its members by charging
the same fees to all such members using the Exchange's facilities for
transaction services relating to Linkage P Orders, and by charging the
same fees to all such members using the Exchange's facilities for
transaction services relating to Linkage P/A Orders.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
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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 that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change is being designated by the Exchange as a
``non-controversial'' rule pursuant to Section 19(b)(3)(A) of the Act
\11\ and subparagraph (f)(6) of Rule 19b-4 thereunder \12\ because the
foregoing rule change: (i) Does not significantly affect the protection
of investors or the public interest; (ii) does not impose any
significant burden on competition; and (iii) by its terms, does not
become operative for 30 days after the date of filing, or such shorter
time as the Commission may designate if consistent with the protection
of investors and the public interest. The Exchange has satisfied the
pre-filing requirement contained in subparagraph (f)(6)(iii) of Rule
19b-4.\13\
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6)(iii).
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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:
Electronic Comments
Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-Phlx-2008-49 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-2008-49. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room on official
business days between the hours of 10 a.m. and 3 p.m. Copies of such
filing also will be available for inspection and copying at the
principal office of 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-2008-49 and should be submitted on or before August
8, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-16403 Filed 7-17-08; 8:45 am]
BILLING CODE 8010-01-P