[Federal Register Volume 70, Number 133 (Wednesday, July 13, 2005)]
[Notices]
[Page 40413]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-3708]



[[Page 40413]]

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SECURITIES AND EXCHANGE COMMISSION

[File No. SR-Phlx-2005-37]


Securities Exchange Act of 1934; Release No. 51984/July 7, 2005; 
In the Matter of: The Philadelphia Stock Exchange, Inc.; Order of 
Summary Abrogation

    Notice is hereby given that the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(3)(C) of the Securities 
Exchange Act of 1934 (``Act''),\1\ is summarily abrogating a proposed 
rule change of the Philadelphia Stock Exchange, Inc. (``Phlx'' or 
``Exchange'').
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    \1\ 15 U.S.C. 78s(b)(3)(C).
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    On June 2, 2005, the Phlx filed SR-Phlx-2005-37. The proposed rule 
change modified the Phlx's schedule of dues, fees, and charges to 
revise its equity option payment for order flow program to establish a 
payment for order flow program that takes into account Directed Orders 
\2\ pursuant to Exchange Rule 1080(l). Pursuant to Exchange Rule 
1080(l), Exchange specialists, Streaming Quote Traders (``SQTs''),\3\ 
and Remote Streaming Quote Traders (``RSQTs'') \4\ trading on the 
Exchange's electronic options trading platform, Phlx XL, may receive 
Directed Orders from Order Flow Providers.\5\ In addition, the 
Exchange's proposal modified the time periods during which the 
specialists, SQTs, and RSQTs must notify the Exchange in connection 
with their election to participate or not to participate in the 
Exchange's payment for order flow program. The filing was immediately 
effective upon filing with the Commission pursuant to Section 
19(b)(3)(A) of the Act.\6\
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    \2\ The Exchange states that the term ``Directed Order'' means 
any customer order to buy or sell which has been directed to a 
particular specialist, Remote Streaming Quote Trader (defined 
below), or Streaming Quote Trader (defined below) by an Order Flow 
Provider (defined below). The provisions of Phlx Rule 1080(l) are in 
effect for a one-year pilot period to expire on May 27, 2006.
    \3\ The Exchange states that an SQT is an Exchange Registered 
Options Trader (``ROT'') who has received permission from the 
Exchange to generate and submit option quotations electronically 
through an electronic interface with AUTOM via an Exchange-approved 
proprietary electronic quoting device in eligible options to which 
such SQT is assigned. AUTOM is the Exchange's electronic order 
delivery, routing, execution, and reporting system, which provides 
for the automatic entry and routing of equity option and index 
option orders to the Exchange trading floor. See Exchange Rules 
1014(b)(ii) and 1080.
    \4\ The Exchange states that an RSQT is an Exchange ROT that is 
a member or member organization of the Exchange with no physical 
trading floor presence who has received permission from the Exchange 
to generate and submit option quotations electronically through 
AUTOM in eligible options to which such RSQT has been assigned. An 
RSQT may only submit such quotations electronically from off the 
floor of the Exchange. An RSQT may only trade in a market making 
capacity in classes of options in which he is assigned. See Exchange 
Rule 1014(b)(ii)(B).
    \5\ The term ``Order Flow Provider'' means any member or member 
organization that submits, as agent, customer orders to the 
Exchange. See Exchange Rule 1080(l).
    \6\ 15 U.S.C. 78s(b)(3)(A).
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    Pursuant to Section 19(b)(3)(C) of the Act, at any time within 60 
days of the date of filing of a proposed rule change pursuant to 
Section 19(b)(1) of the Act,\7\ the Commission may summarily abrogate 
the change in the rules of the self-regulatory organization and require 
that the proposed rule change be refiled in accordance with the 
provisions of Section 19(b)(1) of the Act and reviewed in accordance 
with Section 19(b)(2) of the Act,\8\ 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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    \7\ 15 U.S.C. 78s(b)(1).
    \8\ 15 U.S.C. 78s(b)(2).
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    The Commission finds that it is appropriate in the public interest, 
for the protection of investors, and otherwise in furtherance of the 
purposes of the Act, to abrogate the proposed rule change.
    It is therefore ordered, pursuant to Section 19(b)(3)(C) of the 
Act, that File No. SR-Phlx-2005-37 be, and it hereby is, summarily 
abrogated. If the Phlx chooses to refile the proposed rule change, it 
must do so pursuant to Sections 19(b)(1) and 19(b)(2) of the Act.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(58).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5-3708 Filed 7-12-05; 8:45 am]
BILLING CODE 8010-01-P