[Federal Register Volume 72, Number 153 (Thursday, August 9, 2007)]
[Notices]
[Page 44907]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-15548]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56198; File No. SR-Phlx-2007-45]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Order Granting Approval of Proposed Rule Change To Establish New 
Procedures To Follow When Trading Halts on the Primary Market for the 
Underlying Security

August 3, 2007.
    On June 14, 2007, the Philadelphia Stock Exchange, Inc. (``Phlx'' 
or ``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to amend Exchange Rules 1047, Trading Rotations, 
Halts and Suspensions concerning equity options, 1047A, Trading 
Rotations, Halts or Reopenings concerning index options, and OFPA G-2, 
Trading Rotations, Halts or Reopenings, to establish new procedures to 
follow when trading halts on the primary market for the underlying 
security. The proposed rule change was published for notice and comment 
in the Federal Register on July 3, 2007.\3\ The Commission received no 
comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 55958 (June 26, 
2007), 72 FR 36538.36538.
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    The Commission has reviewed carefully the proposed rule change and 
finds that the proposed rule change is consistent with the requirements 
of the Act and the rules and regulations thereunder applicable to a 
national securities exchange \4\ and, in particular, the requirements 
of section 6(b)(5) of the Act,\5\ in that the proposed rule change 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. The proposed rule change would permit specialists to 
halt trading in equity options in the overlying option when trading is 
halted on the primary market in the underlying security, and in index 
options when trading on the primary market in underlying securities 
representing more than 10% of the current index value is halted, before 
receiving approval from an Options Exchange Official, provided such 
approval is granted within five minutes following the halt of trading 
in the option. Because the proposed rule change is intended to reduce 
the period of time following a trading halt on the primary market in 
the underlying security before trading the overlying option is halted, 
thus enabling specialists to halt trading in the overlying option more 
expeditiously, the Commission believes the proposed rule change is 
reasonably designed to allow Exchange options specialists and 
Registered Options Traders to better manage their market risk.
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    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to section 19(b)(2) of the Act 
\6\, that the proposed rule change (SR-Phlx-2007-45) be, and it hereby 
is, approved.
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    \6\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
Florence E. Harmon,
Deputy Secretary.
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    \7\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E7-15548 Filed 8-8-07; 8:45 am]
BILLING CODE 8010-01-P