[Federal Register Volume 73, Number 106 (Monday, June 2, 2008)]
[Notices]
[Pages 31529-31530]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-12206]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57871; File No. SR-Phlx-2008-37]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to the Definition of Exchange-Traded Fund Share
May 27, 2008.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\, and Rule 19b-4 \2\ thereunder, notice is hereby given
that on May 19, 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 and
II, below, which Items have been prepared by the Phlx. The Exchange
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. 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Phlx proposes to modify Phlx Rule 1000(b)(42), the definition
of Exchange-Traded Fund Share, to conform it to the definition of that
term used in Phlx Rule 1009, Commentary .06.
The proposed rule change is available at the Phlx, the Commission's
Public Reference Room, and http://www.phlx.com.
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 update and clarify
what may appear to be inconsistent language between Phlx Rule
1000(b)(42) and Phlx Rule 1009, Commentary .06. Phlx Rule 1000(b)(42)
defines the term Exchange-Traded Fund Share. Phlx Rule 1009, Commentary
.06 states what options are appropriate for options trading on Phlx.
Phlx currently utilizes the definition of Exchange-Traded Fund Share as
stated in Phlx Rule 1009, Commentary .06 for purposes of determining
what options are appropriate for options trading. This proposed rule
change is meant to clarify Phlx's rules by correlating the definition
of Exchange-Traded Fund Share in Phlx Rule 1000(b)(42) with the meaning
of Exchange-Traded Fund Share in Phlx Rule 1009, Commentary .06. It is
not intended to change which securities are deemed appropriate for
options trading on Phlx.
Phlx Rule 1000(b)(42) was adopted in 2001.\5\ The current language
in Phlx Rule 1009, Commentary .06 was adopted in 2007.\6\ Phlx should
have modified Phlx Rule 1000(b)(42) at that time to correlate it to the
meaning of Exchange-Traded Fund Share in Phlx Rule 1009, Commentary
.06, but inadvertently did not. Therefore, Phlx proposes to amend Phlx
Rule 1000(b)(42) to state that the definition of Exchange-Traded Fund
Share shall have the meaning assigned to it in Phlx Rule 1009,
Commentary .06.
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\5\ See Securities Exchange Act Release No. 43921 (February 2,
2001), 66 FR 9739 (February 9, 2001).
\6\ See Securities Exchange Act Release No. 55951 (June 25,
2007), 72 FR 37298 (July 9, 2007).
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2. Statutory Basis
The Exchange believes that its proposal is consistent with section
6(b)
[[Page 31530]]
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 reducing any potential confusion in the Phlx Options Rules by
correlating the definition of Exchange-Traded Fund Share in Phlx Rule
1000(b)(42) with Phlx Rule 1009, Commentary .06.
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\7\ 15 U.S.C. 78f(b).
\8\ 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 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
Because the proposed rule change 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),\9\ the proposed rule change has become
effective pursuant to section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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\9\ In addition, Rule 19b-4(f)(6)(iii) requires a self-
regulatory organization to give the Commission written notice of its
intent to file a 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 has fulfilled this requirement.
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
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The Exchange has requested that the Commission waive the 30-day
operative delay and designate the proposed rule change as operative
upon filing. The Commission believes that waiving the 30-day operative
delay is consistent with the protection of investors and the public
interest because this proposal is solely intended to correlate the
definition of Exchange-Traded Fund Share in the Phlx Options Rules and
is not intended to change which securities are deemed appropriate for
options trading on Phlx.
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. Therefore, the Commission
designates the proposal as operative upon filing.\12\
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\12\ 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. See 15 U.S.C.
78c(f).
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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 [email protected]. Please include
File Number SR-Phlx-2008-37 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-2008-37. 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 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-2008-37 and should be submitted on or before June
23, 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. E8-12206 Filed 5-30-08; 8:45 am]
BILLING CODE 8010-01-P