[Federal Register: January 18, 2006 (Volume 71, Number 11)]
[Notices]
[Page 2977-2978]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18ja06-92]
[[Page 2977]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53095; File No. SR-Phlx-2005-84]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Phlx Rule 1009 To Reference the Exchange's ``designated staff''
or ``designated department'' Instead of Its ``Department of
Securities''
January 10, 2006.
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 December 28, 2005, 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 and
II below, which Items have been prepared by the Phlx. The Phlx filed
the proposal as a ``non-controversial'' proposed rule change pursuant
to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6)
thereunder,\4\ which renders the proposal effective upon filing with
the Commission.\5\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
\5\ As required by Rule 19b-4(f)(6)(iii), 17 CFR 240.19b-
4(f)(6)(iii), the Phlx submitted 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Phlx proposes to amend Phlx Rule 1009 to change the reference
from Department of Securities (``DOS'') to the Exchange's ``designated
staff'' or ``designated department'' to conform the rule to a recent
internal departmental name change. The text of the proposed rule change
is below. Proposed new text is in italic, and proposed deletions are in
[brackets].
Rule 1009. Criteria for Underlying Securities
(a), (b) and (c)--No Change.
Commentary:
.01--No Change.
.02 (a) Members, member organizations or any person proposing to
list any option not currently listed on the Exchange shall submit a
form of request (a ``Request to List an Option''), available from the
Exchange's [Department of Securities (``DOS''), to DOS staff
``designated staff'' or ``designated department'' (together ``the
designated department'').
(b) As soon as practicable, but not later than three (3) business
days following receipt of the Request to List an Option, [DOS staff]
the designated department shall review the proposed option's
eligibility for listing, using the objective listing criteria set forth
in Commentary .01 of this Rule. If [DOS staff] the designated
department determines that the proposed option does not meet the
objective listing criteria set forth in Commentary .01 of this Rule,
[DOS staff] the designated department shall prepare a responsive form
(a ``Notification Memorandum'') stating the reason(s) why the proposed
option is not eligible for listing. [DOS staff] The designated
department shall forward the Notification Memorandum to the member or
member organization that submitted the Request to List an Option within
three (3) business days of its determination that the proposed option
does not meet objective listing criteria. [DOS staff] The designated
department shall maintain all Requests to List an Option and
Notification Memoranda in a central file for a period of not less than
five (5) years.
(c) If [DOS staff] the designated department determines that the
proposed option meets the objective listing criteria set forth in
Commentary .01 of this Rule, [DOS staff] the designated department
shall present the initial Request to List an Option and the subsequent
review to the Chairman of the Board of Governors or his designee, who
shall, within ten (10) business days of receipt of the Request to List
an Option, instruct [DOS staff] the designated department to:
(i) Solicit options specialists to submit applications for
specialist privileges in the option; or
(ii) Within three (3) business days, prepare and forward a letter
to the member or member organization that submitted the Request to List
an Option, setting forth in reasonable detail the basis on which the
decision not to list, or to place limitations or conditions upon, the
proposed option was made.
.02 (d)-(e)--No Change.
.03-.07--No Change.
* * * * *
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 proposal. 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
Currently, Commentary .01 to Phlx Rule 1009 states that the
Department of Securities (``DOS'') receives and processes a ``Request
to List an Option'' form. Due to the recent renaming of DOS at the
Exchange, references to DOS in Phlx Rule 1009 need to be changed. To
allow adequate flexibility in the event that further changes are
necessary in the future, the Exchange proposes to replace in Phlx Rule
1009, the term ``DOS'' with the terms ``designated staff'' or
``designated department.'' \6\
---------------------------------------------------------------------------
\6\ Promptly after publication by the Commission of this filing,
the Exchange will announce the designated staff or designated
department that will receive and process the ``Request to List an
Option'' form by way of a memorandum to Exchange membership.
Thereafter, change in the designated staff or designated department,
which change may be made by an officer of the Exchange, and the
effective date thereof will be announced by way of a memorandum to
Exchange membership.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \7\ in general, and furthers the objectives of Section
6(b)(5) of the Act \8\ 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 eliminating obsolete references in Phlx Rule 1009.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Phlx believes that the proposed rule change will not impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended.
[[Page 2978]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Phlx has neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6) thereunder.
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. However,
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The Phlx has asked the Commission to waive the 30-
day operative delay. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest because the proposed rule change corrects references
that are now obsolete.\9\ For this reason, the Commission designates
that the proposal has become effective and operative immediately upon
filing with the Commission.
---------------------------------------------------------------------------
\9\ For purposes only of waiving the 30-day operative delay, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
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.\10\
---------------------------------------------------------------------------
\10\ See Rule 19b-4(f)(6)(iii), 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
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-2005-84 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9303.
All submissions should refer to File Number SR-Phlx-2005-84. 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. Copies of such
filing also will be available for inspection and copying at the
principal office of the Phlx.
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-2005-84
and should be submitted on or before February 8, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-433 Filed 1-17-06; 8:45 am]
BILLING CODE 8010-01-P