Federal Register / Vol. 72, No. 35 / Thursday, February 22, 2007 / Notices 8053 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). 

4 17 CFR 240.19b–4(f)(6). 

5The Nasdaq-100, Nasdaq-100 Index, 

Nasdaq, The Nasdaq Stock Market, Nasdaq-100 

SharesSM, Nasdaq-100 TrustSM, Nasdaq-100 Index 

Tracking StockSM, and QQQSM are trademarks or 

service marks of The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’) and have been licensed for use for 

certain purposes by Phlx pursuant to a License 

Agreement (‘‘License’’) with Nasdaq. The Nasdaq100 Index (‘‘Index’’) is determined, composed, 

and calculated by Nasdaq without regard to the 

Licensee, the Nasdaq-100 TrustSM, or the beneficial 

owners of Nasdaq-100 SharesSM. Nasdaq has 

complete control and sole discretion in 

determining, comprising, or calculating the Index or 

in modifying in any way its method for 

determining, comprising, or calculating the Index in 

the future. 

6See Securities Exchange Act Release Nos. 51322 

(March 4, 2005), 70 FR 12260 (March 11, 2005) (SR–

Phlx–2005–17); 52261 (August 15, 2005), 70 FR 

49004 (August 22, 2005) (SR–Phlx–2005–51); 53388 

(February 28, 2006), 71 FR 11458 (March 7, 2006) 

(SR–Phlx–2006–13); and 54387 (August 30, 2006), 

71 FR 52842 (September 7, 2006) (SR–Phlx–2006–

48). 

7Rule 1002 states, in relevant part, ‘‘ * * * no 

member or member organization shall exercise, for 

any account in which such member or member 

organization has an interest or for the account of 

any partner, officer, director or employee thereof or 

for the account of any customer, a long position in 

any option contract of a class of options dealt in on 

the Exchange (or, respecting an option not dealt in 

on the Exchange, another exchange if the member 

or member organization is not a member of that 

exchange) if as a result thereof such member or 

member organization, or partner, officer, director or 

employee thereof or customer, acting alone or in 

concert with others, directly or indirectly, has or 

will have exercised within any five (5) consecutive 

business days aggregate long positions in that class 

(put or call) as set forth as the position limit in Rule 

1001, in the case of options on a stock or on an 

Exchange-Traded Fund Share* * *.’’

8Except when the Pilot Program is in effect. 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(5). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55285; File No. SR–Phlx–

2007–10] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to the Extension of 

the Position Limits Pilot Program 

February 13, 2007. 

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 

12, 2007, 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 substantially prepared by Phlx. 

The Exchange has filed the proposal as 

a ‘‘non-controversial’’ rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6) thereunder,4

which renders it effective upon filing 

with the Commission. The Commission 

is publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Phlx proposes to extend an existing 

pilot program applicable to Exchange 

Rule 1001, Position Limits, which 

increases the standard position and 

exercise limits for equity option 

contracts, including options on the 

Nasdaq-100 Index Tracking Stock 5

(‘‘QQQQ’’) (‘‘Pilot Program’’). The 

Exchange proposes to extend the Pilot 

Program through September 1, 2007. 

The text of the proposed rule change is 

available at Phlx, the Commission’s 

Public Reference Room, and http:// 

www.phlx.com. 

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 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 Exchange 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 extend the existing Pilot 

Program, which is scheduled to expire 

March 1, 2007,6 for an additional sixmonth period, through September 1, 

2007. 

Position limits impose a ceiling on the 

number of option contracts in each class 

on the same side of the market relating 

to the same underlying security that can 

be held or written by an investor or 

group of investors acting in concert. 

Exchange Rule 1002 (not proposed to be 

amended herein) establishes 

corresponding exercise limits. Exercise 

limits prohibit an investor or group of 

investors acting in concert from 

exercising more than a specified number 

of puts or calls in a particular class 

within five consecutive business days. 

Rule 1001 subjects equity options to 

one of five different position limits 

depending on the trading volume and 

outstanding shares of the underlying 

security. Rule 1002 establishes exercise 

limits for the corresponding options at 

the same levels as the corresponding 

security’s position limits.7

Standard Position and Exercise Limit 

The Pilot Program increases the 

standard position and exercise limits for 

equity options traded on the Exchange 

and for options overlying QQQQ to the 

following levels: 

Standard 

equity option contract limit 8Pilot program equity option 

contract limit 

13,500 ....... 25,000 

22,500 ....... 50,000 

31,500 ....... 75,000 

60,000 ....... 200,000 

75,000 ....... 250,000 

300,000 ....... 900,000 

To date, the Exchange believes that 

there have been no adverse affects on 

the market as a result of these increases 

in the limits for equity option contracts 

and options overlying QQQQ. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 9 in general, and furthers the 

objective of Section 6(b)(5) of the Act 10

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 the national market 

system, and, in general to protect 

investors and the public interest, by 

extending the Pilot Program for an 

additional six months. 

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. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing rule change 

does not: (1) Significantly affect the 


rwilkins on PROD1PC63 with NOTICES
8054 Federal Register / Vol. 72, No. 35 / Thursday, February 22, 2007 / Notices 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(6). 

13 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires that a self-regulatory 

organization submit to the Commission written 

notice of its intent to file the proposed rule change, 

along with a brief description and text of the 

proposed rule change, at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. Phlx has satisfied the five-day prefiling requirement. 

14 Id. 

15For purposes only of waiving the operative 

delay, the Commission has considered the proposed 

rule’s impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 16 17 CFR 200.30–3(a)(12). 

protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) become 

operative for 30 days from the date of 

this filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 11 and Rule 19b–

4(f)(6) thereunder.12

A proposed rule change filed under 

19b–4(f)(6) normally may not become 

operative prior to 30 days after the date 

of filing.13 However, Rule 19b–

4(f)(6)(iii) 14 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and in the public interest 

because it will allow the Pilot Program 

to continue uninterrupted.15

At any time within 60 days of the 

filing of the 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 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 rulecomments@sec.gov. Please include File 

No. SR–Phlx–2007–10 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 No. 

SR–Phlx–2007–10. 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 will also be 

available for inspection and copying at 

the principal office of 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 No. 

SR–Phlx–2007–10 and should be 

submitted on or before March 15, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–2987 Filed 2–21–07; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF STATE 

[Delegation of Authority No. 296] 

Delegation by the Under Secretary of 

State for Political Affairs to the 

Assistant Secretary of State for 

Educational and Cultural Affairs of the 

Functions Relating to Emergency 

Import Restrictions on Iraqi Cultural 

Antiquities 

By virtue of the authority vested in 

the Secretary of State by the laws of the 

United States, including Section 1 of the 

State Department Basic Authorities Act 

and the Presidential Memorandum for 

the Secretary of State and the Secretary 

of Homeland Security—Assignment of 

Functions Relating to Import 

Restrictions on Iraqi Antiquities, dated 

May 5, 2006 (71 FR 28,753), and 

delegated to the Under Secretary of 

State for Political Affairs pursuant to 

Delegation of Authority No. 294 (July 6, 

2006), I hereby delegate to the Assistant 

Secretary of State for Educational and 

Cultural Affairs the functions of the 

President under section 3002 of the 

Emergency Protection for Iraqi Cultural 

Antiquities Act of 2004 (title III of 

Public Law 108–429). 

In performing such functions, the 

Assistant Secretary of State shall consult 

the Secretary of Homeland Security and 

the heads of other departments and 

agencies or their designees, as 

appropriate. 

Notwithstanding this delegation of 

authority, the Secretary of State, the 

Deputy Secretary of State, the Under 

Secretary of State for Political Affairs 

and the Under Secretary of State for 

Public Diplomacy and Public Affairs 

may at any time exercise any function 

or authority delegated by this delegation 

of authority. 

Any act, executive order, regulation or 

procedure subject to, or affected by, this 

delegation shall be deemed to be such 

act, executive order, regulation or 

procedure as amended from time to 

time. 

This delegation of authority shall be 

published in the Federal Register. 

Dated: December 22, 2007. 

R. Nicholas Burns, 

Under Secretary of State for Political Affairs, 

Department of State. 

[FR Doc. E7–3011 Filed 2–21–07; 8:45 am] 

BILLING CODE 4710–24–P 

DEPARTMENT OF TRANSPORTATION 

Federal Highway Administration 

Environmental Impact Statement: State 

Route 91 Improvements. The Project 

Begins on State Route 91/State Route 

67/U.S. 321 West of State Route 362 

and Extends to Just West of State 

Route-37 (U.S. 19E), Elizabethton, 

Carter County, TN 

AGENCY: Federal Highway 

Administration (FHWA), DOT. 

ACTION: Notice of Intent. 

SUMMARY: The Federal Highway 

Administration (FHWA) is issuing this 

notice to advise the public that an 

Environmental Impact Statement (EIS) 

will be prepared for a proposed highway 

project in Carter County, Tennessee. 


rwilkins on PROD1PC63 with NOTICES