[Federal Register Volume 70, Number 56 (Thursday, March 24, 2005)]
[Notices]
[Pages 15141-15145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1295]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51394; File No. SR-Phlx-2004-83]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto 
Relating to the Matching of Certain Incoming Orders With Certain Phlx 
Existing Orders

March 18, 2005.
    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 November 26, 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 March 10, 2005, the Phlx filed 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\ In Amendment No. 1, which replaced the original proposal in 
its entirety, Phlx modified two concepts contained in the original 
proposed rule change (those of the Midpoint Price and the Modified 
PACE Quote), clarified the operation of the proposed rule change, 
reorganized the rule text of proposed new Supplementary Material 
.04A to Phlx Rule 229 into subsections, and made corresponding 
changes to other portions of the Supplementary Material to Phlx Rule 
229 to reflect the applicability of the proposed rule change.
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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 229 to permit the PACE \4\ 
System to match certain incoming orders with certain Phlx existing 
orders (the ``Matching Rule'').
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    \4\ PACE is the Exchange's automated order routing, delivery, 
execution and reporting system for equities. See Phlx Rule 229.
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    The text of amended Phlx Rule 229 is set forth below. New text is 
italicized and [brackets] indicate deletions.

Rule 229. Philadelphia Stock Exchange Automated Communication and 
Execution System (PACE)

* * * * *
    Supplementary Material: * * *
* * * * *
    .01 No Change.
    .02 Specialists are required to provide, at a minimum, PACE 
execution parameters, as defined by the Rule, to agency orders received 
through the system, except as provided below.
    Although specialists are not required to provide PACE execution 
parameters, except enhanced matching in Supplementary Material .04A, to 
non-agency orders received through PACE, if the specialists choose to 
execute non-agency orders automatically through PACE, they must provide 
the same PACE executions to non-agency orders as they provide to agency 
orders. If however, the specialists choose to execute non-agency orders 
manually, they must adhere to existing Exchange rules governing orders 
not on the system with respect to such orders.
    For purposes of the PACE System, an agency order is any order 
entered on behalf of a public customer, and does not include any order 
entered for the account of a broker-dealer, or any account in which a 
broker-dealer or an associated person of a broker-dealer has any direct 
or indirect interest. Non-agency orders are not permitted on PACE 
except where the Exchange has been provided with a Specialist 
Agreement, signed by the respective specialist, acknowledging the 
acceptance of such non-agency orders from the specific firm(s), and any 
minimum execution parameters (order size guarantees) agreed to be 
provided to such orders by the respective specialist. Any such 
Specialist Agreement must provide the same minimum execution parameters 
to all non-agency orders by that specialist and will not provide for 
greater order size guarantees to non-agency orders than those provided 
to agency orders. Specialists' agreements to execute non-agency orders 
on PACE, and the termination of such agreements, shall be in accordance 
with the procedures set by the Exchange.
    The specialist may choose to accept orders through PACE, without 
participating in the PACE execution guarantees for agency orders, where 
the entering member organization has generally elected not to receive 
automatic execution or primary market print protection for 
electronically delivered limit orders, in accordance with the 
procedures established by the Floor Procedure Committee.
    .03-.04 No Change.
    .04A (a) Definitions. For purposes of this Supplementary Material:
    (i) Midpoint Price means the midpoint of the Modified PACE Quote as 
rounded, if applicable. Rounding will be applicable if the midpoint of 
the Modified PACE Quote is not a penny increment, in which case the 
Midpoint Price shall be rounded down (up) to the nearest penny if the 
existing Phlx order is an order to buy (sell). When the Modified PACE 
Quote is locked, the Midpoint Price is the locked price.
    (ii) Modified PACE Quote means the PACE Quote, unless the PACE 
Quote is comprised of another market's quote of 100 shares or less 
(``100 Share Away Quote''), in which case the Modified PACE Quote will 
be 1 cent away from such 100 Share Away Quote.
    (b) Enhanced Matching
    (i) Round-lot market and limit orders (except as provided in (ii) 
below) and the round-lot portion of non-all-or-none PRL market and 
limit orders entered after the opening when the PACE Quote is not 
crossed will execute against existing round-lot market and limit orders 
and the round-lot portion of non-all-or-none PRL market and limit 
orders that have not been marked for lay-off and are executable at or 
within the Modified PACE Quote, if any, before being processed 
according to Supplementary Material .05, .07(b), (c)(i)-(ii) or 
.10(a)(i) of this rule or Rule 229A.
    (ii) If the round-lot order entered after the opening is an all-or-
none order, then such order will only receive the treatment described 
in the previous sentence if the size of the first potential existing 
order it would execute against is equal to or greater than such order.
    (iii) No order for which the entering member organization has 
elected primary market high-low protection (as provided in .07(a)(ii)) 
will be matched in (i) above, if the execution price of such execution 
would be outside the primary market high-low range for the day.
    (iv) Enhanced Matching Priority. Notwithstanding Supplementary 
Material .01 regarding priority, existing Phlx orders will be executed 
in price/time priority with the highest bid/lowest offer executed 
first, with existing market orders, for purposes of enhanced matching 
priority, being treated as limit orders priced at the Midpoint Price.
    (c) Execution Price
    (i) If the orders to be matched in (b) above are both market 
orders, then the execution price of these orders is the Midpoint Price.
    (ii) If the orders to be matched in (b) above are both limit 
orders, then the execution price of these orders is the

[[Page 15142]]

price closest to the Midpoint Price that will allow both orders to 
execute.
    (iii) If the orders to be matched in (b) above are a market order 
and a limit order, the execution price of these orders is the price 
closest to the Midpoint Price that will allow the limit order to 
execute.
    .05 Subject to Supplementary Material Section .07, all round-lot 
market orders up to 500 shares and PRL market orders up to 599 shares 
entered after the opening will be automatically executed at the PACE 
Quote.
    Subject to these procedures, the specialist may voluntarily agree 
to execute round-lot market orders of a size greater than 500 shares 
and PRL market orders of a size greater than 599 shares upon entry into 
the system. Where the specialist has voluntarily agreed to 
automatically execute market orders greater than 599 shares and the 
market order size is greater than 599 shares, but less than or equal to 
the size of the PACE Quote, the order is automatically executable at 
the PACE Quote; if such order is greater than the size of the PACE 
Quote, the order shall receive an execution at the PACE Quote up to the 
size of the PACE Quote, either manually or automatically (once this 
feature is implemented) with the balance of the order available to be 
executed as an existing order pursuant to Supplementary Material 
.04A(b)(i) above, or receiving a professional execution, in accordance 
with Supplementary Material, .10(b) below; provided that the specialist 
may guarantee an automatic execution at the PACE Quote up to the entire 
size of such specialist's automatic execution guarantee (regardless of 
the size of the PACE Quote).
    When the PACE Quote is locked, automatically executable market 
orders entered after the opening will be automatically executed at the 
locked price, if all the specialists assigned to a security determine 
to elect this feature for a particular security.
    .06-.07(a) No Change.
    .07(b) Market orders (round-lots of 600 to 2000 shares or such 
greater size which the specialist agrees to accept and PRL's of 601 to 
2099 shares or such greater size which the specialist agrees to accept) 
which are entered after the opening and which the specialist has not 
agreed to accept for automatic execution shall not be subject to the 
execution parameters set forth in Supplementary Material .05 and shall 
be available to be executed as an existing order pursuant to 
Supplementary Material .04A(b)(i) above, or executed in accordance with 
Supplementary Material .10(b) and other applicable rules of the 
Philadelphia Stock Exchange; provided, however, that the odd-lot 
portion of PRL's of 601 or more shares shall be executed at the same 
price as the round-lot portion. In the case of a PRL order, the round-
lot portion(s) of which is executed at more than one price, the odd-lot 
portion shall be executed at the same price as the first round-lot 
portion is executed.
    .07(c)-.09 No Change
    .10(a) [In the case of stocks for which the PACE quote bid is less 
than $ 1.00, the provisions of paragraph .10(b) shall apply.
    In the case of stocks for which the PACE quote bid is $1.00 or 
more:]
    (i) Marketable Limit Orders--round-lot orders up to 500 shares and 
the round-lot portion of PRL limit orders up to 599 shares which are 
entered at the PACE Quote shall be executed at the PACE Quote. Such 
orders shall be executed automatically unless the member organization 
entering orders otherwise elects. Specialists may voluntarily agree to 
execute marketable limit orders greater than 599 shares. Where the 
specialist has voluntarily agreed to automatically execute marketable 
limit orders greater than 599 shares and the order size is greater than 
599 shares, but less than or equal to the size of the PACE Quote, the 
marketable limit order is automatically executable at the PACE Quote; 
if the order size is greater than 599 shares and greater than the size 
of the PACE Quote, the marketable limit order shall manually receive an 
execution at the PACE Quote up to the size of the PACE Quote, with the 
balance of the order available to be executed as an existing order 
pursuant to Supplementary Material .04A(b)(i) above, or receiving a 
professional execution, in accordance with Supplementary Material, 
.10(b) below; provided that the specialist may guarantee an automatic 
execution at the PACE Quote up to the entire size of such specialist's 
automatic execution guarantee.
    When the PACE Quote is locked, automatically executable marketable 
limit orders entered after the opening will be automatically executed 
at the locked price, if all the specialists assigned to a security 
determine to elect this feature for a particular security.
    Marketable limit orders may be eligible for automatic price 
improvement or manual double-up/double-down price protection pursuant 
to Supplementary Material .07(c) above.
    .10(a)(ii)-.15 No Change.
    .16 For securities in which the Exchange is the primary market or 
for over-the-counter securities which the Exchange trades on an 
unlisted trading privileges basis, the specialist in that security may 
receive orders over the PACE System, in which case such orders will be 
subject to enhanced matching in Supplementary Material .04A but such 
orders will not be subject to the other automatic execution parameters 
set forth in this rule.
    .17-.22 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 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 increase automated 
handling of equity orders. Under the Matching Rule, PACE will check 
incoming orders against existing orders, and if possible, execute those 
incoming orders against the existing orders, therefore helping to 
preserve the priority of those existing orders and reducing the 
incidents of inadvertent trading ahead of customer orders.
    The rule change proposes that round-lot market and limit orders 
(except as noted below) and the round-lot portion of non-all-or-none 
PRL \5\ market and limit orders entered after the opening will execute 
against existing round-lot market and limit orders and the round-lot 
portion of non-all-or-none PRL market and limit orders that have not 
been marked for layoff, if executable within the Modified PACE Quote 
\6\ (thereby preventing a violation of

[[Page 15143]]

applicable trade-through rules).\7\ The Phlx notes that for incoming 
round lot all-or-none orders, the Phlx will only automatically match 
such orders if the size of the incoming all-or-none order is equal to 
or smaller than the first existing order it would match against. 
Conversely, if the incoming all-or-none order is larger than the first 
existing order it could match against, the incoming order will not 
automatically match, but will be handled manually by the specialist. 
(See Example 1 below.)
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    \5\ PRL means a combined round-lot and odd-lot order. See Phlx 
Rule 229.
    \6\ The ``PACE Quote'' means the best bid/ask quote among the 
American, Boston, National, Chicago, New York, or Philadelphia Stock 
Exchanges, the Pacific Exchange, or the Intermarket Trading System/
Computer Assisted Execution System (``ITS/CAES'') quote, as 
appropriate. See Phlx Rule 229. As further discussed by the Phlx 
below, the ``Modified PACE Quote'' is defined in the proposed rule 
change to mean the PACE Quote, unless the PACE Quote is comprised of 
another market's quote of 100 shares or less, in which case the 
Modified PACE Quote will be 1 cent away from such 100 share away 
quote.
    \7\ The price at which the orders will be executed will be 
dependent, generally, on the ``Midpoint Price'' of the Modified PACE 
Quote and the type of orders that are being matched, as further 
discussed by the Phlx below, following Example 2.
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    The Phlx also notes that orders that have been marked for lay-off 
\8\ (i.e., orders that are being sent to other marketplaces for 
execution and appropriately marked by the specialist within PACE) will 
not be eligible to be matched against an incoming order. (See Example 2 
below.) Additionally, no order for which the entering member 
organization has elected primary market high-low protection (as 
provided in Phlx Rule 229, Supplementary Material .07(a)(ii)) will be 
matched if the execution price of such execution would be outside the 
primary market high-low range for the day. Finally, notwithstanding 
Phlx Rule 229, Supplementary Material .01 regarding priority, existing 
Phlx orders will be executed in price/time priority with the highest 
bid/lowest offer executed first, with existing market orders, for 
purposes of enhanced matching priority, being treated as limit orders 
priced at the Midpoint Price.\9\
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    \8\ See 17 CFR 240.11Ac1-4(c)(5).
    \9\ See, e.g., Example 5 below.
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Example 1

    The Phlx receives an order to buy 500 shares all-or-none at the 
market (``Incoming Order'') when the Phlx has an existing order to sell 
1000 shares at the market (``Existing Order''). At the time of the 
receipt of the Incoming Order, the PACE Quote shows the National Stock 
Exchange (``NSX'') bidding for 1,000 shares at $10.50 and the Pacific 
Exchange (``PCX'') offering 600 shares at $10.52. In this case, the 
PACE System would execute the Incoming Order with 500 shares of the 
Existing Order at $10.51 (which is the Midpoint Price). If the Incoming 
Order were instead a 1,500 share all-or-none order, then the Incoming 
Order and the Existing Order would not match automatically and would 
remain for the specialist to execute manually or be available to be 
matching by a later incoming order.

Example 2

    The Phlx receives an order to buy 1,200 shares at the market 
(``Incoming Order'') when the Phlx has two existing orders to sell, one 
for 1,000 shares at the market (``Existing Order 1''), 
followed in time by one for 1,000 shares at $10.51, which has been 
marked by the specialist for lay-off because the specialist is seeking 
execution of that order on another exchange (``Existing Order 
2''). At the time of the receipt of the Incoming Order, the 
PACE Quote shows the NSX bidding for 1,000 shares at $10.51 and the PCX 
offering 2,000 shares at $10.51. In this case, the PACE System would 
execute the 1,000 shares of the Incoming Order with Existing Order 
1 at $10.51 (which is the Midpoint Price). This would leave 
200 shares of the Incoming Order unexecuted to be handled manually by 
the specialist or available to be matched by a later incoming order.
    Under the Matching Rule, the price of the execution will be 
dependent on the Midpoint Price and the type of orders that are being 
matched. The Midpoint Price means the midpoint of the Modified PACE 
Quote as rounded, if applicable. Rounding will be applicable if the 
midpoint of the Modified PACE Quote is not a penny increment, in which 
case the Midpoint Price shall be rounded down (up) to the nearest penny 
if the existing Phlx order is an order to buy (sell). (See Example 3 
below.) The Modified PACE Quote means the PACE Quote, unless the PACE 
Quote is comprised of another market's quote of 100 shares or less 
(``100 Share Away Quote''), in which case the Modified PACE Quote will 
be 1 cent away from such 100 Share Away Quote. (See Example 4 below.) 
When the Modified PACE Quote is locked, the Midpoint Price is the 
locked price. Regarding different types of orders, if the orders to be 
matched are both market orders, then the execution price of these 
orders is the Midpoint Price. If the orders to be matched are both 
limit orders, then the execution price of these orders is the price 
closest to the Midpoint Price that will allow both orders to execute. 
If the orders to be matched are a market order and a limit order, the 
execution price of these orders is the price closest to the Midpoint 
Price that will allow the limit order to execute. (See Examples 5 and 6 
below for illustrations of these three situations.)

Example 3

    The Phlx receives an order to sell 1,200 shares at the market 
(``Incoming Order'') when the Phlx has two existing orders to buy, one 
for 1,000 shares at $10.51 (``Existing Order 1''), followed in 
time by one for 1,000 shares at the market (``Existing Order 
2''). At the time of the receipt of the Incoming Order, the 
PACE Quote shows the Phlx bidding for 1,000 shares at $10.51 and the 
Chicago Stock Exchange (``CHX'') offering 1,600 shares at $10.52. In 
this case, the PACE System would execute the 1,000 shares of the 
Incoming Order with Existing Order 1 at $10.51. Then PACE 
would execute the remaining 200 shares of the Incoming Order with 200 
shares of Existing Order 2 at $10.51 (which is the midpoint of 
the Modified PACE Quote rounded down because the Existing Order 
2 is an order to buy). This would leave 800 shares of Existing 
Order 2 to be handled manually by the specialist or available 
to be matched by a later incoming order.

Example 4

    The Phlx receives an order to sell 3,500 shares at the market 
(``Incoming Order'') when the Phlx has two existing orders to buy, one 
for 1,000 shares at the market (``Existing Order 1''), 
followed in time by one for 1,000 shares at $10.05 (``Existing Order 
2''). At the time of the receipt of the Incoming Order, the 
PACE Quote shows the NSX bidding for 100 shares at $10.10 and the PCX 
offering 100 shares at $10.12. The next best quotes are Phlx bidding 
for 1,000 shares at $10.05 and the CHX offering 200 shares at $10.13. 
In this case, the PACE System would execute the 1,000 shares of the 
Incoming Order with Existing Order 1 at $10.11 (which is the 
Midpoint Price, being the midpoint of the Modified PACE Quote of $10.09 
and $10.13). Order 2 will not be executed at this time 
pursuant to the Matching Rule because it is outside of the Modified 
PACE Quote. This would leave 2,500 shares of the Incoming Order to be 
handled manually by the specialist or available to be matched by a 
later incoming order.

Example 5

    The Phlx receives an order to sell 1,200 shares at the market 
(``Incoming Order'') when the Phlx has two existing orders to buy, one 
for 1,000 shares at $10.50 (``Existing Order 1''), followed in 
time by one for 1,000 shares at the market (``Existing Order 
2''). At the time of the receipt of the Incoming Order, the 
PACE Quote shows the Phlx bidding for 1,000 shares at $10.50 and the 
PCX offering 600 shares at $10.52. In this case, the PACE System would 
execute the 1,000 shares of the Incoming Order with Existing Order 
2 at $10.51 (which is the Midpoint Price). Then PACE would 
execute the remaining 200 shares of the Incoming Order with 200

[[Page 15144]]

shares of Existing Order 1 at $10.50 (which is the price 
closest to Midpoint Price that will allow the limit order to execute). 
This would leave 800 shares of Existing Order 1 displayed at 
$10.50 to be handled manually by the specialist or available to be 
matched by a later incoming order. The Phlx then receives another order 
to sell 500 shares at $10.50 (Incoming Order 2). In this case, 
the PACE System would execute Incoming Order 2 with 500 shares 
of Existing Order 1 at $10.50 (which is the price closest to 
the Midpoint Price that will allow both orders to execute). This would 
leave 300 shares of Existing Order 1 displayed at $10.50 to be 
handled manually by the specialist or available to be matched by a 
later incoming order.

Example 6

    The Phlx receives an order to sell 1,200 shares at $10.11 
(``Incoming Order'') when the Phlx has an existing order to buy for 
1,200 shares all-or-none at $10.13 (``Existing Order''). At the time of 
the receipt of the Incoming Order, the PACE Quote shows the PCX bidding 
for 1,000 shares at $10.10 and the CHX offering 1,600 shares at $10.14 
(the Phlx is not displaying the all-or-none order \10\). In this case, 
the PACE System would execute the Incoming Order with Existing Order at 
$10.12 ($10.12 is the price closest to the Midpoint Price (in this case 
it is the Midpoint Price) that will allow both orders to execute). Note 
that the outcome will be the same if the Incoming Order is instead an 
order to sell 1,200 shares at the market because $10.12 is the price 
closest to the Midpoint Price that will allow the limit order to 
execute.
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    \10\ All-or-none orders are an exception to the Limit Order 
Display Rule. See 17 CFR 240.11Ac1-4(c)(7).
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    The Phlx is also modifying language in other sections of Phlx Rule 
229. Specifically, language is being added to Phlx Rule 229, 
Supplementary Materials .05, .07(b) and .10(a)(i) to clarify that 
market and limit orders available for profession execution, as 
described in those sections, will also be available to be executed as 
an existing order pursuant to proposed Phlx Rule 229, Supplementary 
Material .04A(b)(i). Phlx Rule 229, Supplementary Material .02 is being 
modified to clarify that if specialists offer access to PACE for non-
agency orders, those orders will be eligible for enhanced matching in 
Phlx Rule 229, Supplementary .04A, whether or not those specialists 
choose to provide other PACE execution parameters to such orders. Phlx 
Rule 229, Supplementary Material .16 is being modified to clarify that 
orders described in that section will be subject to enhanced matching 
in Phlx Rule 229, Supplementary Material .04A, even though they are not 
subject to other automatic execution parameters. Finally, Phlx Rule 
229, Supplementary Material .10(a) is being modified to remove language 
which directs a different treatment for orders when the PACE Quote bid 
is less than $1.00, so that such orders will receive the same treatment 
regardless of the PACE Quote bid.\11\
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    \11\ According to the Phlx, the proposed change to Supplementary 
Material .10(a) codifies the current system of processing orders in 
PACE. Previously, under the Intermarket Trading System (``ITS'') 
Plan, orders quoting less than $1.00 were not ITS eligible and thus 
were not eligible for the automatic execution guarantees in the PACE 
system. Since the $1.00 threshold has been eliminated from the ITS 
Plan, orders quoting less than $1.00 are subject to the same 
processing and automatic execution guarantees in the PACE system as 
orders quoting more than $1.00. Telephone conversation between John 
Dayton, Assistant Secretary and Counsel, Phlx, and Leah Mesfin, 
Special Counsel, Division of Market Regulation, Commission, on March 
17, 2005.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with sections 
6(b) and 11A(a)(1)(C) of the Act \12\ in general, and furthers the 
objectives of sections 6(b)(5) and 11A(a)(1)(C)(v) of the Act \13\ in 
particular, in that it should to promote just and equitable principles 
of trade, remove impediments to and perfect the mechanism of a free and 
open market, and protect investors and the public interest by 
increasing the number of orders that are matched without the 
participation of a dealer.
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    \12\ 15 U.S.C. 78f(b) and 15 U.S.C. 78k-1(a)(1)(C).
    \13\ 115 U.S.C. 78f(b)(5) and 15 U.S.C. 78k-1(a)(1)(C)(v).
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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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the Phlx consents, the Commission will:
    (a) By order approve such proposed rule change; or
    (b) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended, 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-2004-83 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-2004-83. 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-2004-83 and should be submitted on or before April 
14, 2005.


[[Page 15145]]


    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.20-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1295 Filed 3-23-05; 8:45 am]
BILLING CODE 8010-01-P