[Federal Register Volume 73, Number 31 (Thursday, February 14, 2008)]
[Notices]
[Pages 8735-8736]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-2751]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57277; File No. SR-Phlx-2008-09]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to 
Modify Trading Hours for Physical Delivery FCOs

February 6, 2008.
    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 February 1, 2008, 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 substantially prepared by the 
Phlx. The Exchange has designated this proposal as constituting a 
stated policy, practice, or interpretation with respect to the meaning, 
administration, or enforcement of an existing rule under Section 
19(b)(3)(A)(i) of the Act \3\ and Rule 19b-4(f)(1) 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)(i).
    \4\ 17 CFR 19b-4(f)(1).
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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 on 
the Exchange to change the opening of physical delivery foreign 
currency options (``FCOs'') trading from 7:30 a.m. Eastern Time 
(``ET'') to 9:30 a.m. ET. The change will become effective on February 
4, 2008. The text of the proposed rule change is available on the 
Exchange's Web site at http://www.Phlx.com/exchange/phlx_rule_fil.html, at the Exchange, and at the Commission's Public Reference 
Room.

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 make the Exchange's 
physical delivery FCO program more cost-effective by reducing the 
duration of the physical delivery FCO trading session. Currently, Phlx 
Rule 101, ``Hours of Business,'' states that FCO trading sessions shall 
be conducted at such times as the Exchange's Board of Governors 
(``Board'') shall specify between 6 p.m. ET, Sundays and 3 p.m. ET, 
Fridays, provided that U.S. dollar-settled FCOs shall trade during the 
same hours as narrow-based index options.\5\ Accordingly, the Board 
adopted the current hours for physical delivery FCO trading sessions, 
opening at 7:30 a.m. ET and closing at 2:30 p.m. ET.\6\
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    \5\ The Exchange is not proposing to change the trading hours 
applicable to U.S. dollar-settled FCOs.
    \6\ In 1993, the Exchange filed a proposed rule change to amend 
Phlx 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) (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 
Exchange-listed FCOs except the Canadian dollar. See Securities 
Exchange Act Release No. 34898 (October 26, 1994), 59 FR 54651 
(November 1, 1994) (SR-Phlx-94-47). In May 2004, the Exchange 
expanded the trading hours for options on the Canadian dollar to 
conform to the trading hours for all other FCOs on the Exchange. See 
Securities Exchange Act Release No. 49690 (May 12, 2004), 69 FR 
28972 (May 19, 2004) (SR-Phlx-2004-24). On December 1, 2006 the 
Exchange changed the trading hours for all physical delivery FCOs to 
be from 7:30 a.m. ET until 2:30 p.m. ET. See Securities Exchange Act 
Release No. 54802 (November 21, 2006), 71 FR 68875 (November 28, 
2006) (SR-Phlx-2006-72).
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    The Exchange proposes to adopt a reduced time period for physical 
delivery FCO trading sessions by specifying that, beginning February 4, 
2008, FCO trading sessions will open at 9:30 a.m. ET and close at 2:30 
p.m. ET. The Exchange represents that it has delisted most of its 
physical delivery FCO contracts and intends to delist the remaining 
physical delivery FCO on or before March 31, 2008. The Exchange has 
already limited trading in the remaining physical delivery FCO 
contracts to ``closing only'' transactions. The Exchange therefore 
believes that a

[[Page 8736]]

reduction in the duration of the trading session is appropriate at this 
time.
    In connection with the proposed rule change adopting 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\ The Exchange intends to notify its 
membership of the change in trading hours for physical delivery FCOs by 
issuing a circular to members. The new trading hours for physical 
delivery FCOs will be in effect beginning February 4, 2008.
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    \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) (SR-Phlx-88-25).
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2. Statutory Basis
    The Exchange believes that its proposal 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, because it 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.
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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 Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act.

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 become effective pursuant to 
Section 19(b)(3)(A)(i) of the Act \11\ and Rule 19b-4(f)(1) \12\ 
thereunder, because it constitutes a stated policy, practice, or 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule.
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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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    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.

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 No. SR-Phlx-2008-09 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2008-09. 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, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. 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-2008-09 and should be 
submitted on or before March 6, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-2751 Filed 2-13-08; 8:45 am]
BILLING CODE 8011-01-P