[Federal Register Volume 69, Number 97 (Wednesday, May 19, 2004)]
[Notices]
[Pages 28972-28973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-11260]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49690; File No. SR-Phlx-2004-24]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto by 
the Philadelphia Stock Exchange, Inc. Relating to the Trading Hours of 
Canadian Dollar Foreign Currency Options

May 12, 2004.
    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 April 16, 2004, 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 Phlx. On April 19, 
2004, the Phlx submitted Amendment No. 1 to the proposed rule 
change.\3\ The Commission is publishing this notice to solicit comments 
on the proposed rule change, as amended, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from Angela Saccomandi Dunn, Counsel, Phlx, to 
Nancy J. Sanow, Assistant Director, Division of Market Regulation 
(``Division''), Commission, dated April 16, 2004 (``Amendment No. 
1''). In Amendment No. 1, the Phlx corrected a typographical error 
in the original filing. For purposes of calculating the 60-day 
period within which the Commission may summarily abrogate the 
proposed rule change under Section 19(b)(3)(C) of the Act, the 
Commission considers that period to commence on April 19, 2004, the 
date the Phlx filed Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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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 its hours of business for dealings upon 
the Exchange to change the opening of Canadian dollar foreign currency 
options (``FCO'') trading from 7 a.m. eastern time (e.t.) to 2:30 a.m. 
e.t.

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 conform the trading 
hours of Canadian dollar FCOs to the trading hours of other FCOs.\4\ 
This proposed rule change is to provide notification of the proposal to 
modify the hours of business for dealings in Canadian dollar 
contracts.\5\ The Exchange previously filed a proposed rule change to 
amend Phlx Rule 101, which provides that FCO trading sessions shall be 
conducted at such times as the Phlx Board of Governors shall specify 
between 6 p.m. Sundays and 3 p.m. Fridays.\6\ In connection with the 
proposed rule change amending Phlx Rule 101, the Exchange committed to 
make future filings under section 19(b)(3)(A) of the Act,\7\ any time 
it expands or changes FCO trading hours in connection with Phlx Rule 
101.\8\
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    \4\ In 1993, Phlx filed a proposed rule change to amend Rule 101 
to provide that all FCO trading, except FCOs on the Canadian dollar, 
will be conducted between 1:30 a.m. ET and 2:30 p.m. ET each 
business day. See Securities Exchange Act Release No. 33246 
(November 24, 1993), 58 FR 63421 (December 1, 1993) (File No. SR-
Phlx-93-42). Subsequently, the trading hours were modified to move 
the opening of FCO trading from 1:30 a.m. ET to 2:30 a.m. ET for all 
Phlx-listed FCOs except the Canadian dollar. See Securities Exchange 
Act Release No. 34898 (October 26, 1994), 59 FR 54651 (November 1, 
1994) (File No. SR-Phlx-94-47).
    \5\ The Exchange has represented that it intends to notify its 
membership of the change in trading hours for Canadian dollar FCOs 
through a circular to members. Telephone conversation between Angela 
Saccomandi Dunn, Counsel, Phlx, and Marisol Rubecindo, Law Clerk, 
Division, Commission, on May 4, 2004.
    \6\ See Securities Exchange Act Release No. 26087 (September 16, 
1988), 53 FR 36930 (September 22, 1988) (File No. SR-Phlx-88-25).
    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ See Securities Exchange Act Release No. 26087 (September 16, 
1988), 53 FR 36930 (September 22, 1988) (File No. SR-Phlx-88-25).
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    The Exchange believes that the increased trading hours should allow 
investors greater access to trading in Canadian dollar FCOs and 
increased flexibility to meet the exchange rate risk protection and 
hedging needs of European-based market participants.
2. Statutory Basis
    The Exchange believes that the proposed rule change, as amended, 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 
and protect investors and the public interest.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Phlx does not believe that the proposed rule change, as 
amended, will impose any inappropriate burden on competition.

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 with respect 
to the proposed rule change, as amended.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change, as amended, has been 
designated as a practice with respect to the administration of an 
existing rule, it has become effective pursuant to Section 
19(b)(3)(A)(i) of the Act \11\ and

[[Page 28973]]

Rule 19b-4(f)(1)\12\ 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.
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    \11\ 15 U.S.C. 78s(b)(3)(A)(i).
    \12\ 17 CFR 240.19b-4(f)(1).
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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-2004-24 on the subject line.
    Paper comments:
     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-Phlx-2004-24. 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 Section, 450 Fifth 
Street, NW., Washington, DC 20549-0609. 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-2004-24 and should be submitted on or before June 9, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 04-11260 Filed 5-18-04; 8:45 am]
BILLING CODE 8010-01-P