[Federal Register Volume 73, Number 101 (Friday, May 23, 2008)]
[Notices]
[Pages 30183-30184]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-11531]
[[Page 30183]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57834; File No. SR-Phlx-2008-33]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Order Granting Accelerated Approval of Proposed
Rule Change, as Modified by Amendment No. 1 Thereto, Relating to Equity
Linked Notes
May 19, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on May 2, 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 and
II below, which Items have been prepared substantially by the Exchange.
On May 16, 2008, the Exchange submitted Amendment No. 1 to the proposed
rule change. The Commission is publishing this notice to solicit
comments on the proposed rule change, as amended, from interested
persons and is granting accelerated approval to the proposed rule
change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 803(h) to clarify that the
listing and trading of Equity Linked Notes (``ELNs'') on the Exchange
is subject to Rule 19b-4(e) under the Act.\3\ The text of the proposed
rule change is available at the Exchange, the Commission's Public
Reference Room, and http://www.phlx.com.
---------------------------------------------------------------------------
\3\ 17 CFR 240.19b-4(e).
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, Phlx included statements
concerning the purpose of, and basis for, the proposed rule change. The
text of these statements may be examined at the places specified in
Item III below. 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 Exchange states that the purpose of the proposed rule change is
to clarify that the listing and trading of ELNs on the Exchange is
subject to Rule 19b-4(e) under the Act. Rule 19b-4(e) under the Act
permits an exchange to list and trade a new derivative securities
product, such as an ELN, without filing a proposed rule change on Form
19b-4, if the exchange has, among other things, listing standards for
the product class.\4\ Rule 19b-4(e) further provides that an exchange
shall file Form 19b-4(e) within five business days after commencement
of trading a new derivative securities product. Therefore, upon the
acceptance of an ELN for listing and trading on the Exchange pursuant
to the listing standards in Rule 803(h), Phlx will file a Form 19b-4(e)
with the Commission within five business days after the commencement of
trading.
---------------------------------------------------------------------------
\4\ See 17 CFR 240.19b-4(e)(1). Phlx Rule 803(h) contains the
listing standards for ELNs.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) \5\ of the Act, in general, and furthers the
objectives of Section 6(b)(5),\6\ in particular, in that it is designed
to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanisms of a free and open market and
a national market system, and, in general, to protect investors and the
public interest, by clarifying that the listing and trading of ELNs on
the Exchange is subject to Rule 19b-4(e) under the Act.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 that is 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. 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-2008-33 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-Phlx-2008-33. 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 the filing also will be available for
inspection and copying at the principal office of the Exchange. 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-2008-33 and should be
submitted on or before June 13, 2008.
IV. Commission's Findings and Order Granting Accelerated Approval of
the Proposed Rule Change
After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to
[[Page 30184]]
a national securities exchange.\7\ In particular, the Commission finds
that the proposed rule change is consistent with Section 6(b)(5) of the
Act,\8\ which requires that the rules of an exchange be designed, among
other things, to prevent fraudulent and manipulative acts and
practices, 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.
---------------------------------------------------------------------------
\7\ In approving this rule change, the Commission notes that it
has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission finds good cause for approving this proposal before
the 30th day after the publication of notice thereof in the Federal
Register. The proposal seeks to clarify that the Exchange's listing and
trading of ELNs under Rule 803(h) is subject to Rule 19b-4(e) under the
Act. The Commission does not believe that this clarification raises any
novel regulatory issues. Therefore, the Commission believes that
accelerating approval of this proposal is appropriate and would ensure
that the Exchange's rules clearly reflect the standards for listing and
trading of ELNs and conform the Phlx's rules to those of other
exchanges without delay.\9\
---------------------------------------------------------------------------
\9\ See e.g., Chicago Board Options Exchange Rule 31.5(I) and
NYSE Arca Rule 5.2(j)(2).
---------------------------------------------------------------------------
V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\10\ that the proposed rule change, as amended (SR-Phlx-2008-33),
be, and it hereby is, approved on an accelerated basis.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-11531 Filed 5-22-08; 8:45 am]
BILLING CODE 8010-01-P