[Federal Register Volume 69, Number 230 (Wednesday, December 1, 2004)]
[Notices]
[Pages 69978-69982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3411]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50723; File No. SR-Phlx-2004-68]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. Relating to Its Equity Options Payment for Order Flow 
Program

November 23, 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 October 29, 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 Exchange. The Phlx 
has designated this proposal as one changing a fee imposed by the Phlx 
under section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Phlx proposes to revise its equity options payment for order 
flow program by: (1) Imposing a payment for order flow fee of $0.40 on 
all equity options traded on the Phlx, other than options on the 
Nasdaq-100 Index Tracking Stock \SM\ traded under the symbol QQQ 
(``QQQ''), currently the most actively traded equity option, and 
options on the iShares FTSE/Xinhua China Index Fund (``FXI Options''), 
an exchange-traded fund; (2) returning to the Registered Options 
Traders (``ROTs''), by option, any excess equity options payment for 
order flow funds billed to those ROTs but not reimbursed to specialist 
units; \5\ (3) clarifying the assessment of the payment for order flow 
fee when an equity option is reallocated mid-month; and (4) making 
other corresponding changes to the Exchange's equity options payment 
for order flow program, which occur as a result of the above-referenced 
proposal.
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    \5\ The Exchange uses the terms ``specialist'' and ``specialist 
unit'' interchangeably herein.
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Equity Options Payment for Order Flow Program in Effect Prior to 
November 1, 2004

    The Exchange recently amended its payment for order flow 
program.\6\ Pursuant to the September/October Program, the Exchange 
assessed a payment for order flow fee as follows when ROTs trade 
against a customer order: (1) $1.00 per contract for options on the 
QQQ, currently the most actively traded equity option; \7\ and (2) 
$0.40 per contract for the remaining top 150 equity options, other than 
the QQQs.\8\

[[Page 69979]]

The payment for order flow fee applies, in effect, to equity option 
transactions between a ROT and a customer.\9\ In addition, a 500 
contract cap per individual cleared side of a transaction is 
imposed.\10\
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    \6\ See Securities Exchange Act Release Nos. 50471 (September 
29, 2004), 69 FR 59636 (October 5, 2004) (SR-Phlx-2004-60) and 50572 
(October 20, 2004), 69 FR 62735 (October 27, 2004) (SR-Phlx-2004-61) 
(collectively, ``September/October Program'').
    \7\ The Nasdaq-100 [reg], Nasdaq-100 Index [reg], Nasdaq [reg], 
The Nasdaq Stock Market [reg], Nasdaq-100 Shares \SM\, Nasdaq-100 
Trust \SM\, Nasdaq-100 Index Tracking Stock \SM\, and QQQ \SM\ are 
trademarks or service marks of The Nasdaq Stock Market, Inc. 
(``Nasdaq'') and have been licensed for use for certain purposes by 
the Phlx pursuant to a License Agreement with Nasdaq. The Nasdaq-100 
Index [reg] (``Index'') is determined, composed, and calculated by 
Nasdaq without regard to the Licensee, the Nasdaq-100 Trust \SM\, or 
the beneficial owners of Nasdaq-100 Shares \SM\. Nasdaq has complete 
control and sole discretion in determining, comprising, or 
calculating the Index or in modifying in any way its method for 
determining, comprising, or calculating the Index in the future.
    \8\ The top 150 options are calculated based on the most 
actively traded equity options in terms of the total number of 
contracts that are traded nationally based on volume statistics 
provided by The Options Clearing Corporation (``OCC'') and that are 
also traded on the Exchange. For example, if two of the most 
actively traded equity options, based on volume statistics provided 
by the OCC, are not traded on the Exchange, then the next two most 
actively traded equity options that are traded on the Exchange will 
be selected. (For example, if the list of the top 150 options 
includes two options that are not traded on the Exchange, then the 
options ranked 151 and 152 will be included in the Exchange's top 
150, assuming those options are traded on the Exchange).
    \9\ Thus, the ROT payment for order flow fee is not assessed on 
transactions between: (1) A specialist and a ROT; (2) a ROT and a 
ROT; (3) a ROT and a firm; and (4) a ROT and a broker-dealer. The 
ROT payment for order flow fee does not apply to index options or 
foreign currency options. Accordingly, the ROT payment for order 
flow fees applies, in effect, to equity option transactions between 
a ROT and a customer.
    \10\ Thus, the applicable payment for order flow fee is imposed 
only on the first 500 contracts, per individual cleared side of a 
transaction. For example, if a transaction consists of 750 contracts 
by one ROT, the applicable payment for order flow fee would be 
applied to, and capped at, 500 contracts for that transaction. Also, 
if a transaction consists of 600 contracts, but is equally divided 
among three ROTs, the 500 contract cap would not apply to any such 
ROT and each ROT would be assessed the applicable payment for order 
flow fee on 200 contracts, as the payment for order flow fee is 
assessed on a per ROT, per transaction basis. See Securities 
Exchange Act Release Nos. 47958 (May 30, 2003), 68 FR 34026 (June 6, 
2003) (proposing SR-Phlx-2002-87); 48166 (July 11, 2003), 68 FR 
42450 (July 17, 2003) (approving SR-Phlx-2002-87); and 50471 
(September 29, 2004), 69 FR 59636 (October 5, 2004) (SR-Phlx-2004-
60).
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    Specialist units elect to participate or not to participate in the 
program in all options in which they are acting as a specialist by 
notifying the Exchange in writing no later than five business days 
prior to the start of the month.\11\ If a specialist unit elects not to 
participate in the program, the specialist unit waives its right to any 
reimbursement of payment for order flow funds for the month(s) during 
which it elected to opt out of the program.\12\ Specialists request 
payment for order flow reimbursements on an option-by-option basis. The 
collected funds are used by each specialist unit to reimburse it for 
monies expended to attract options orders to the Exchange by making 
payments to firms that provide order flow to the Exchange. Specialists 
receive their respective funds only after submitting an Exchange 
certification form identifying the amount of the requested funds.\13\ 
Each specialist unit establishes the amounts that would be paid to 
order flow providers.
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    \11\ A specialist unit must notify the Exchange in writing to 
either elect to participate or not to participate in the program. 
Once a specialist unit has either elected to participate or not to 
participate in the Exchange's payment for order flow program in a 
particular month, it is not required to notify the Exchange in a 
subsequent month if it does not intend to change its participation 
status. For example, if a specialist unit elected to participate in 
the program and provided the Exchange with the appropriate notice, 
that specialist unit would not be required to notify the Exchange in 
the subsequent month(s) if it intends to continue to participate in 
the program. However, if it elects not to participate (a change from 
its current status), it would need to notify the Exchange in 
accordance with the requirements stated above.
    \12\ For any month (or part of a month where an option is 
allocated mid-month) the specialist unit has elected to opt out of 
the program, no ROT equity options payment for order flow fee will 
apply.
    \13\ While all determinations concerning the amount that will be 
paid for orders and which order flow providers shall receive these 
payments are made by the specialists, the specialists will provide 
to the Exchange on an Exchange form certain information, including 
what firms they paid for order flow, the amount of the payment and 
the price paid per contract. The purpose of the form, in part, is to 
assist the Exchange in determining the effectiveness of the proposed 
fee and to account for and track the funds transferred to 
specialists, consistent with normal bookkeeping and auditing 
practices. In addition, certain administrative duties will be 
provided by the Exchange to assist the specialists.
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    Pursuant to the Exchange's September/October Program, any excess 
payment for order flow funds are carried forward to the next month by 
option and may not be applied retroactively to past deficits, which may 
be incurred when the specialist requests more than the amount 
collected.\14\ Thus, excess funds are not rebated to ROTs except in the 
limited situation discussed below, nor are deficits carried forward to 
subsequent months. ROTs may, however, receive a rebate of excess funds 
in a particular option for a particular month if the specialist unit 
did not request reimbursement by option of at least 50% of the total 
amount of payment for order flow funds billed to and collected from 
ROTs for each option in which that specialist unit was acting as 
specialist, as more fully described below.
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    \14\ Specialists may not receive more than the payment for order 
flow amount billed and collected in a given month; however, the 
amount specialists receive may include excesses, if any, for that 
option, carried forward from prior months, up to the payment for 
order flow amount billed and collected in such month.
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    Specialists units may opt out entirely from the program as long as 
they notify the Exchange in writing by the 15th of the month, or the 
next business day if the 15th of the month is not a business day. If a 
specialist unit opts out of the program by the 15th of the month, no 
payment for order flow charges would be incurred for either the 
specialist unit or ROTs for transactions in the affected options for 
that month.
    In addition to opting out entirely from the program, specialists 
may opt out of the program on an option-by-option basis if they notify 
the Exchange in writing no later than three business days after the end 
of the month (which is before the payment for order flow fee is 
billed). If a specialist unit opts out of an option at the end of the 
month, no payment for order flow fees are assessed on the applicable 
ROT(s) for that option. If a specialist unit opts out of the program in 
a particular option more than two times in a six-month period, it would 
be precluded from entering into the payment for order flow program for 
that option for the next three months.
    If a specialist unit opts into the program (and does not opt out of 
the program entirely by the 15th day of the month or by option by the 
third business day after the end of the month) and does not request 
reimbursement by option of at least 50% of the total amount of payment 
for order flow funds billed to and collected from ROTs for each option 
in which that specialist unit is acting as the specialist, then any 
excess payment for order flow funds remaining after the specialist has 
been reimbursed would be rebated, on a pro rata basis, to the affected 
ROTs for those particular options in which the 50% threshold was not 
met.\15\
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    \15\ For example, if a specialist unit requests $10,000 in 
reimbursement for one option and the total amount billed and 
collected from the ROTs was $30,000, then the specialist unit did 
not satisfy the 50% threshold, given the fact that it did not 
request reimbursement of at least $15,000. Therefore, the remaining 
amount of $20,000 will be rebated to the ROTs on a pro rata basis. 
If ROT A was assessed $15,000 in payment for order flow fees, it 
would receive a rebate of $10,000 ($15,000/$30,000 = 50%, and 50% of 
$20,000 is $10,000). If ROT B was assessed $8,000 in payment for 
order flow fees, it would receive $5,333.33, which represents 26.67% 
($8,000/$30,000) of $20,000. If ROT C was assessed $7,000 in payment 
for order flow fees, it would receive $4,666.67, which represents 
23.33% ($7,000/$30,000) of $20,000.
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    The payment for order flow fee is billed and collected on a monthly 
basis. Because the specialists are not being charged the equity options 
payment for order flow fee for their own transactions, they may not 
request reimbursement for order flow funds in connection with any 
transactions to which they were a party.\16\
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    \16\ The amount a specialist may receive in reimbursement is 
limited to the percentage of ROT monthly volume to total specialist 
and ROT monthly volume in the equity options payment for order flow 
program. For example, if a specialist unit has a payment for order 
flow arrangement with an order flow provider to pay that order flow 
provider $0.70 per contract for order flow routed to the Exchange 
and that order flow provider sends 90,000 customer contracts to the 
Exchange in one month for one option, then the specialist would be 
required, pursuant to its agreement with the order flow provider, to 
pay the order flow provider $63,000 for that month. Assuming that 
the 90,000 represents 30,000 specialist transactions, 20,000 ROT 
transactions and 40,000 transactions from firms, broker-dealers and 
other customers, the specialist may request reimbursement of up to 
40% (20,000/50,000) of the amount paid ($63,000 x 40% = $25,200). 
However, because the ROTs will have paid $8,000 into the payment for 
order flow fund for that month, the specialist may collect only 
$8,000 (20,000 contracts x $0.40 per contract) of its $25,200 
reimbursement request plus, if applicable, any excess funds for that 
particular option carried over from a prior month up to the 
specialist's $25,200 reimbursement request.

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[[Page 69980]]

    The Exchange may audit a specialist's payments to payment-accepting 
firms to verify the use and accuracy of the payment for order flow 
funds remitted to the specialists based on their certification.\17\
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    \17\ See Supplemental Material .01 of Exchange Rule 760.
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    The Exchange continues to implement a quality of execution 
program.\18\
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    \18\ See e.g. Securities Exchange Act Release No. 43436 (October 
11, 2000), 65 FR 63281 (October 23, 2000) (SR-Phlx-00-83).
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Proposed Equity Options Payment for Order Flow Program Commencing 
November 1, 2004

    The Exchange proposes to charge a payment for order flow fee of 
$0.40 on all equity options traded on the Phlx, other than options on 
the QQQs, which would continue to be assessed $1.00, and FXI Options. 
The Exchange is not proposing to assess a payment for order flow fee on 
FXI Options because the Exchange is not currently seeking to garner 
order flow in this product from other exchanges, because FXI Options do 
not currently trade on other exchanges. Attracting order flow from 
other exchanges is the principal goal of the payment for order flow 
program.
    Specialists would continue to request payment for order flow 
reimbursements on an option-by-option basis. According to the Exchange, 
the collected funds would be used by each specialist unit to reimburse 
it for monies expended to attract options orders to the Exchange by 
making payments to order flow providers who provide order flow to the 
Exchange. The Phlx states that specialists would receive their 
respective funds only after submitting an Exchange certification form 
identifying the amount of the requested funds.\19\
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    \19\ See supra note 13. Specialist units are given instructions 
as to when the certification forms are required to be submitted.
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    Specialist units would continue to elect to participate or not to 
participate in the program in all options in which they are acting as a 
specialist by notifying the Exchange in writing no later than five 
business days prior to the start of the month.\20\ If electing not to 
participate in the program, the specialist unit waives its right to any 
reimbursement of payment for order flow funds for the month(s) during 
which it elected to opt out of the program. Payment for order flow 
charges would apply to ROTs as long as the specialist unit for that 
option has elected to participate in the Exchange's payment for order 
flow program. A payment for order flow fee would be assessed, even 
beginning mid-month, if an option is allocated (or reallocated) from a 
non-participating specialist unit to a specialist unit that 
participates in the Exchange's payment for order flow program.
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    \20\ See supra note 11.
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    The Exchange also proposes to return to ROTs, by option, any excess 
payment for order flow funds billed but not reimbursed to 
specialists.\21\ According to the Phlx, excess funds would be returned 
to the ROTs (reflected as a credit on the monthly invoices) and 
distributed on a pro rata basis to the applicable ROTs.\22\ Thus, 
excess funds would no longer be carried forward.
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    \21\ In the September/October Program, any excess payment for 
order flow funds are carried forward to the next month by option and 
may not be applied retroactively to past deficits, which may be 
incurred when the specialist requests more than the amount 
collected. Thus, excess funds generally are not rebated to ROTs. 
However, under the September/October Program, excess funds may be 
rebated in the limited situation where a specialist unit opts into 
the program (and does not opt out of the program entirely by the 
15th day of the month or by option by the third business day after 
the end of the month) and does not request reimbursement by option 
of at least 50% of the total amount of payment for order flow funds 
billed to and collected from ROTs for each option in which that 
specialist unit is acting as the specialist, then any excess payment 
for order flow funds remaining after the specialist has been 
reimbursed is rebated, on a pro rata basis, to the affected ROTs for 
those particular options in which the 50% threshold was not met. 
This separate rebate requirement would no longer be necessary 
because, pursuant to this proposal, any excess payment for order 
flow funds that have been billed, but not requested by specialist, 
will be returned to the applicable ROTs on a pro rata basis. For 
example, if a ROT is assessed a payment for order flow fee of 
$10,000 for the month of November and $2,000 was to be returned to 
the ROT because it represented the amount of funds not requested by 
specialists, that amount would appear on the same November invoice. 
Thus, the ROT would submit $8,000 in payment for order flow fees for 
the month of November.
    \22\ For example, if a specialist unit requests $10,000 in 
reimbursement for one option and the total amount billed and 
collected from the ROTs was $30,000, the remaining $20,000 will be 
rebated to the ROTs on a pro rata basis. If ROT A was assessed 
$15,000 in payment for order flow fees, he would receive a rebate of 
$10,000 ($15,000/$30,000 = 50% and 50% of $20,000 is $10,000). If 
ROT B was assessed $8,000 in payment for order flow fees, it would 
receive $5,333.33, which represents 26.67% ($8,000/$30,000) of 
$20,000. If ROT C was assessed $7,000 in payment for order flow 
fees, it would receive $4,666.67, which represents 23.33% ($7,000/
$30,000) of $20,000. The Exchange does not know at this time whether 
there will be any excess payment for order flow funds from the 
September/October Program because billing and collecting for the 
September/October Program will not be completed until after November 
2004 and because of the different reimbursement procedures 
applicable to the Exchange's equity options payment for order flow 
program in effect prior to this proposal. Telephone conversation 
between Cynthia K. Hoekstra, Counsel, Phlx, and David Liu, Attorney, 
Division of Market Regulation, Commission, on November 23, 2004. 
Therefore, the Exchange intends to file a separate proposed rule 
change, if necessary, to address the handling of any excess payment 
for order flow funds generated from the September/October Program.
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    The Phlx states that no other changes to the Exchange's payment for 
order flow program are being proposed at this time.\23\
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    \23\ Accordingly, the calculation of the top 150 options as 
described in note 8, supra, would no longer be necessary because the 
new program extends beyond the top 150 options.
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    The payment for order flow fees as set forth in this proposal would 
be in effect for trades settling on or after November 1, 2004.
    Below is the text of the proposed rule change. Proposed new 
language is in italics; deletions are in [brackets].
* * * * *

SUMMARY OF EQUITY OPTION CHARGES (p. 3/3)

EQUITY OPTION PAYMENT FOR ORDER FLOW FEES*
Registered Option Trader (on-floor)** +

QQQ (NASDAQ-100 Index Tracking Stock SM)--$1.00 per contract
Remaining [Top 150] Equity Options, except FXI Options--$0.40 per 
contract

    * Assessed on transactions resulting from customer orders, subject 
to a 500-contract cap, per individual cleared side of a transaction
    ** [Any excess payment for order flow funds will be carried forward 
to the next month by option and will not be rebated to ROTs. ROTs may, 
however, receive a rebate of any excess funds in a particular option 
for a particular month if the specialist unit does not request 
reimbursement by option of at least 50% of the total amount of payment 
for order flow funds billed and collected from ROTs for each option in 
which that specialist unit is acting as specialist.] Any excess payment 
for order flow funds billed but not reimbursed to specialists will be 
returned to the applicable ROTs (reflected as a credit on the monthly 
invoices) and distributed on a pro rata basis.
    Only incurred when the specialist elects to participate in the 
payment for order flow program

[[Page 69981]]

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 Phlx states that the purpose of the proposed rule change is to 
adopt a more competitive equity options payment for order flow program. 
Equity options payment for order flow programs are in place at each of 
the other options exchanges in varying amounts and covering various 
options. The Phlx states that the revenue generated by the $1.00 or 
$0.40 payment for order flow fees, as outlined in this proposal, is 
intended to be used by specialist units to compete for order flow in 
equity options listed for trading on the Exchange. The Exchange 
believes that, in today's competitive environment, changing its payment 
for order flow program to compete more directly with other options 
exchanges is important and appropriate. Accordingly, the Exchange 
proposes to expand its program beyond the top 150 options. The Exchange 
also proposes to modify the program to return excess ROT fees rather 
than carry those excesses forward. The Phlx believes that returning any 
excess payment for order flow funds to ROTs on a pro rata basis should 
help to minimize the financial impact to them in connection with the 
collection of the Exchange payment for order flow fee.
2. Basis
    The Exchange believes that its proposal to amend its schedule of 
dues, fees, and charges is consistent with section 6(b) of the Act \24\ 
in general, and furthers the objectives of section 6(b)(4) of the Act 
\25\ in particular, in that it is an equitable allocation of reasonable 
fees among Phlx members and that it is designed to enable the Exchange 
to compete with other markets in attracting customer order flow. 
Because the payment for order flow fees are collected only from member 
organizations respecting customer transactions, the Phlx believes that 
there is a direct and fair correlation between those members who fund 
the equity options payment for order flow fee program and those who 
receive the benefits of the program. The Exchange states that ROTs also 
potentially benefit from additional customer order flow. In addition, 
the Phlx believes that the proposed payment for order flow fees would 
serve to enhance the competitiveness of the Phlx and its members and 
that this proposal therefore is consistent with and furthers the 
objectives of the Act, including section 6(b)(5) thereof,\26\ which 
requires the rules of exchanges to be designed to promote just and 
equitable principles of trade, and to remove impediments to and perfect 
the mechanism of a free and open market and a national market system. 
The Phlx believes that attracting more order flow to the Exchange 
should, in turn, result in increased liquidity, tighter markets and 
more competition among exchange members.
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    \24\ 15 U.S.C. 78f(b).
    \25\ 15 U.S.C. 78f(b)(4).
    \26\ 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 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.

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

    The foregoing proposed rule change has been designated as a fee 
change pursuant to section 19(b)(3)(A)(ii) of the Act \27\ and Rule 
19b-4(f)(2) \28\ thereunder, because it establishes or changes a due, 
fee, or other charge imposed by the Exchange. Accordingly, the proposal 
will take effect upon filing with the Commission. At any time within 60 
days of the filing of such 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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    \27\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \28\ 17 CFR 240.19b-4(f)(2).
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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-2004-68 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-2004-68. 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-2004-68 and should be submitted on or before 
December 22, 2004.


[[Page 69982]]


    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\29\
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    \29\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
 [FR Doc. E4-3411 Filed 11-30-04; 8:45 am]
BILLING CODE 8010-01-P