Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Notices 10285 

6 15 U.S.C. 78s(b)(3)(A). 

7 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. The Commission has decided to waive 

the five-day pre-filing requirement. 

8For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

9 17 CFR 200.30–3(a)(12). 

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). 

5NYSE Arca Equities Rules 5.1(b)(13), 5.2(j)(3), 

8.100, 8.200, 8.201, 8.202, 8.203, 8.300, and 8.400 

Continued 

19(b)(3)(A) of the Act 6 and Rule 19b–

4(f)(6) thereunder.7

NASD has requested that the 

Commission waive the 30-day operative 

delay in this case. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest because such waiver will allow 

the benefits of this new pricing structure 

to apply immediately. For this reason, 

the Commission designates the 

proposed rule change to be operative 

upon filing with the Commission.8

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 rulecomments@sec.gov. Please include File 

Number SR–NASD–2007–017 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–NASD–2007–017. 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 the filing also will be 

available for inspection and copying at 

the principal office of NASD. 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–NASD–2007–017 and 

should be submitted on or before March 

28, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–3952 Filed 3–6–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55374; File No. SR–

NYSEArca–2007–20] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to NYSE Arca 

Marketplace Trading Sessions 

February 28, 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 

26, 2007, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ or ‘‘Exchange’’), through its 

wholly owned subsidiary NYSE Arca 

Equities, Inc. (‘‘NYSE Arca Equities’’), 

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 the 

Exchange. The Exchange filed the 

proposal pursuant to Section 19(b)(3)(A) 

of the Act 3 and Rule 19b–4(f)(6) 

thereunder,4 which renders the 

proposed rule change effective upon 

filing with the Commission. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes, through 

NYSE Arca Equities, to update the list 

in NYSE Arca Equities Rule 7.34 of 

securities eligible to trade in one or 

more, but not all three, of the 

Exchange’s trading sessions. The 

Exchange proposes to add to the list 

shares of certain Funds (‘‘Shares’’) that 

are traded on NYSE Arca, L.L.C. (‘‘NYSE 

Arca Marketplace’’), the equities trading 

facility of NYSE Arca Equities, pursuant 

to unlisted trading privileges (‘‘UTP’’). 

The text of the proposed rule change is 

available on the Exchange’s Web site 

(http://www.nysearca.com), at the 

principal office of 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 

Exchange 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 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 

NYSE Arca Equities Rule 7.34 

currently provides, in part, that the 

NYSE Arca Marketplace shall have three 

trading sessions each day: an Opening 

Session (1 a.m. Pacific Time (‘‘PT’’) to 

6:30 a.m. PT), a Core Trading Session 

(6:30 a.m. PT to 1 p.m. PT) and a Late 

Trading Session (1 p.m. PT to 5 p.m. 

PT), and that the Core Trading Session 

for securities described in NYSE Arca 

Equities Rules 5.1(b)(13), 5.1(b)(18), 

5.2(j)(3), 8.100, 8.200, 8.201, 8.202, 

8.203, 8.300, and 8.400 (each, a 

‘‘Derivative Securities Product’’) shall 

conclude at 1:15 pm PT.5


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10286 Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Notices 

relate to Unit Investment Trusts, Investment 

Company Units, Portfolio Depositary Receipts, 

Trust Issued Receipts, Commodity-Based Trust 

Shares, Currency Trust Shares, Commodity Index 

Trust Shares, Partnership Units, and Paired Trust 

Shares, respectively. See Securities Exchange Act 

Release No. 54997 (December 21, 2006), 71 FR 

78501 (December 29, 2006) (SR–NYSEArca–2006–

77) (amending NYSE Arca Equities Rule 7.34). 

6The Commission has approved the trading of the 

Shares of the Funds on the NYSE Arca Marketplace 

pursuant to UTP. See Securities Exchange Act 

Release No. 55125 (January 18, 2007), 72 FR 3462 

(January 25, 2007) (SR–NYSEArca–2006–87). 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–

4(f)(6) requires an exchange to give 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 days prior 

to the date of filing of the proposed rule change, or 

such shorter time as designated by the Commission. 

The Commission has determined to waive the fiveday pre-filing notice requirement in this case. 

11For purposes only of waiving the operative date 

of this proposal, the Commission has considered 

the rule’s impact on efficiency, competition, and 

capital formation. See 15 U.S.C. 78c(f). 

NYSE Arca Equities Rule 7.34 

includes a list of those securities which 

are eligible to trade in one or more, but 

not all three, of the Exchange’s trading 

sessions. The Exchange maintains on its 

Internet Web site (http:// 

www.nysearca.com) a list that identifies 

all securities traded on the NYSE Arca 

Marketplace that do not trade for the 

duration of each of the three sessions 

specified in NYSE Arca Equities Rule 

7.34. 

The Exchange proposes to add the 

following securities to these lists: (1) 

Ultra Russell MidCap Growth 

ProShares; (2) Ultra Russell MidCap 

Value ProShares; (3) Ultra Russell1000 

Growth ProShares; (4) Ultra Russell1000 

Value ProShares; (5) Ultra Russell2000 

Growth ProShares; (6) Ultra Russell2000 

Value ProShares; (7) UltraShort Russell 

MidCap Growth ProShares; (8) 

UltraShort Russell MidCap Value 

ProShares; (9) UltraShort Russell1000 

Growth ProShares; (10) UltraShort 

Russell1000 Value ProShares; (11) 

UltraShort Russell2000 Growth 

ProShares; and (12) UltraShort 

Russell2000 Value ProShares 

(‘‘Funds’’).6

These securities are traded on the 

Exchange pursuant to UTP and are 

Investment Company Units, described 

in Exchange Rule 5.2(j)(3). 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,7 in general, and 

furthers the objectives of Section 

6(b)(5),8 in particular, in that it is 

designed to facilitate transactions in 

securities, to promote just and equitable 

principles of trade, to enhance 

competition, and to protect investors 

and the public interest. 

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 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: 

(i) Significantly affect the protection 

of investors or the public interest; 

(ii) impose any significant burden on 

competition; and 

(iii) become operative for 30 days 

from the date on which it was filed, or 

such shorter time as the Commission 

may designate if consistent with the 

protection of investors and the public 

interest, it has become effective 

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

Act9 and Rule 19b–4(f)(6) thereunder.10

The Exchange has asked the 

Commission to waive the 30-day 

operative delay. The Commission 

believes that such waiver is consistent 

with the protection of investors and the 

public interest because the proposed 

rule change should provide 

transparency and more clarity with 

respect to the trading hours eligibility of 

certain derivative securities products 

and should promote consistency in the 

trading halts of derivative securities. 

The Commission notes that this filing 

does not change the trading hours of the 

Derivative Securities Products listed in 

NYSE Arca Equities Rule 7.34, but 

codifies trading hour sessions that have 

been established through other rule 

changes or through the use of the 

Exchange’s generic listing standards 

pursuant to Rule 19b–4(e) under the 

Act. For these reasons, the Commission 

designates the proposed rule change as 

operative immediately.11

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 

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 e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSEArca–2007–20 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–NYSEArca–2007–20. 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 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–NYSEArca–2007–20 and should be 

submitted by or before March 28, 2007. 


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Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Notices 10287 

12 17 CFR 200.30–3(a)(12). 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)(2). 5SQF stands for specialized quote feed and is a 

proprietary quoting system that allows specialists, 

streaming quote traders and remote streaming quote 

traders to connect and send quotes into Phlx XL, 

by-passing the Exchange’s Auto-Quote System. See 

Exchange Rule 1080, commentary .01(b). 6Active ports refer to ports that receive inbound 

quotes at any time within that month. 

7See e.g., Securities Exchange Act Release No. 

54424 (September 11, 2006), 71 FR 54699 

(September 18, 2006) (SR–Phlx–2006–55). 

8SQTs and RSQTs are assessed fees pursuant to 

the ROT rates as SQTs and RSQTs are deemed to 

be ROTs. See Exchange Rule 1014(b)(ii)(A) and (B). 

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

10 15 U.S.C. 78f(b)(4). 

11 In an email dated January 17, 2007, a member 

requested that the date of implementation for the 

port fee be delayed. In August 2006, the Exchange 

distributed a memorandum, which notified 

members/member organizations of the Exchange’s 

intention to adopt an SQF port fee in order to 

provide such members/member organizations with 

the opportunity to change their port arrangements 

before the SQF port fee took effect. Originally, the 

Exchange anticipated that the port fee would 

become effective on November 1, 2006. The 

Exchange, however, delayed the implementation 

date until February 1, 2007 to allow members/ 

member organizations additional time to change 

their port arrangements. The Exchange believes that 

sufficient notice was given to members/member 

organizations regarding the proposed port fee, 

which includes the August 2006 memorandum and 

a delay in the implementation date from November 

1, 2006 until February 1, 2007. Therefore, the 

Exchange believes that a further delay in the 

implementation date as requested was not 

warranted. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–3883 Filed 3–5–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Release No. 34–55371; File No. SR–

Phlx–2007–06] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Port Fees as 

Modified by Amendment No. 1 

February 28, 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 January 

26, 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, II, and III, below, which Items 

have been substantially prepared by the 

Phlx. On February 28, 2007, the 

Exchange submitted Amendment No. 1 

to the proposed rule change. The 

Exchange has designated this proposal 

as one establishing or changing a due, 

fee or other charge imposed by the 

Exchange under Section 19(b)(3)(A),3

and Rule 19b–4(f)(2) 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, as amended, from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Phlx proposes to implement a fee 

for connecting into the Exchange’s 

system to enter quotes (‘‘SQF 5 port 

fee’’). The SQF port fee would operate 

as follows: for the first 5 active SQF 

ports,6 a member organization would be 

charged $250 per port per month and, 

for each additional active SQF port 

(over the first 5 active SQF ports), the 

member organization would be charged 

$1,000 per port per month. 

Additionally, the same member 

organization would be credited $0.02 

per side for every option contract 

executed on the Phlx in that same 

month (excluding executions resulting 

from dividend, merger and short stock 

interest strategies) 7 up to the amount of 

the SQF port fees when the member 

organization or one of its employees is 

designated as a specialist, streaming 

quote trader (‘‘SQT’’) or remote 

streaming quote trader (‘‘RSQT’’) and 

the transaction is billed according to the 

specialist or Registered Option Trader 

(‘‘ROT’’) transaction and/or comparison 

rates.8 The SQF port fee and 

corresponding credit would be applied 

per member organization. 

The SQF port fee (assessed monthly) 

became effective February 1, 2007 and 

the corresponding $0.02 credit (assessed 

per side per executed contract) became 

effective for trades settling on or after 

February 1, 2007. 

The text of the proposed rule change 

is available at http://www.Phlx.com, at 

the Phlx, 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 SQF port fee and 

corresponding credit is to encourage 

more efficient quoting, which should, in 

turn, promote a more efficient use of 

SQF ports. The Exchange believes that 

using fewer ports should assist in 

addressing the current and growing 

quoting and efficiency issues. The 

number of ports correlates to quoting 

efficiency, in that more efficient quoting 

uses fewer ports and fewer ports means 

the Exchange’s systems are being used 

to process the same number of quotes 

more quickly. The credit should also 

encourage member organizations to 

send more business to the Exchange. 

More efficient quoting should, in turn, 

result in more executions on the Phlx, 

for which the member organization will 

receive a credit up to the amount of any 

SQF port fees that are incurred. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its schedule of fees 

is consistent with Section 6(b) of the 

Act 9 in general, and furthers the 

objectives of Section 6(b)(4) of the Act 10

in particular, in that it is an equitable 

allocation of reasonable fees and other 

charges among Exchange members. 

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 

A written comment was received 

requesting that the Exchange grant an 

extension regarding the implementation 

date for the port fee.11

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 


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