Federal Register / Vol. 72, No. 58 / Tuesday, March 27, 2007 / Notices 14319 

10The Exchange’s Financial Automation 

Department is responsible for the design, 

development, implementation, testing and 

maintenance of the Exchange’s automated trading 

systems, surveillance systems, and back office 

systems, and for monitoring the quality of 

performance and operational readiness of such 

systems, in addition to user training and validation 

of user technology as it pertains to such users’

interface with the Exchange’s systems. 

11 15 U.S.C. 78f(b). 

12 15 U.S.C. 78f(b)(5). 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f)(5). 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Financial Automation Department 10

describes Auto-Quote as an older system 

that would require a large investment to 

update it to match existing industry and 

vendor functionality. The Exchange 

believes that such a large investment 

could result in increased fees that might 

eventually be passed on to customers, 

which is one result that the Exchange 

seeks to avoid by eliminating the AutoQuote options pricing functionality 

from its options trading systems. 

Therefore, because of the limited use 

of the Auto-Quote options pricing 

functionality on the Exchange, together 

with the disproportionate expense the 

Exchange would incur to continually 

upgrade Auto-Quote to meet industry 

needs, the Exchange proposes to 

eliminate the Auto-Quote options 

pricing functionality from its options 

trading systems, and to delete all 

references to Auto-Quote from its rules. 

The Exchange’s systems will no longer 

incorporate the Auto-Quote options 

pricing functionality beginning March 

19, 2007. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 11 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 12

in particular, in that 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, by 

enabling the Exchange to limit expenses 

relating to the under-used and 

antiquated Auto-Quote options pricing 

functionality. 

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 

The foregoing proposed rule change 

effects a change in an existing orderentry or trading system of a selfregulatory organization that: (1) Does 

not significantly affect the protection of 

investors or the public interest; (2) does 

not impose any significant burden on 

competition; and (3) does not have the 

effect of limiting the access to or 

availability of the system. Therefore, it 

has become effective pursuant to 

Section 19(b)(3)(A) 13 of the Act and 

Rule 19b–4(f)(5) 14 thereunder. 

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

Number SR–Phlx–2007–15 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–2007–15. 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 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–2007–15 and should 

be submitted on or before April 17, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5548 Filed 3–26–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55501; File No. SR–Phlx–

2007–22] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Orders With TwoDay Delivery 

March 21, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 2 thereunder, 

notice is hereby given that on March 16, 

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. The Exchange has designated the 

proposed rule change as constituting a 

‘‘non-controversial’’ rule change under 


sroberts on PROD1PC70 with NOTICES
14320 Federal Register / Vol. 72, No. 58 / Tuesday, March 27, 2007 / Notices 

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

4 17 CFR 240.19b–4(f)(6). 

5See Securities Exchange Act Release No. 54816 

(November 27, 2006), 71 FR 69604 (December 1, 

2006) (SR–NSCC–2006–09) (text at footnote 5). 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). 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 notes that the 

Exchange has satisfied the pre-filing notice 

requirement. 

Section 19(b)(3)(A) of the Act 3 and Rule 

19b–4(f)(6) 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Phlx Rule 162(b)(2) and (3) regarding 

two-sided orders with a delivery of two 

days after the day of execution, which 

is a non-regular way settlement. The 

text of the proposed rule change is 

available at the Exchange, on the 

Exchange’s Web site (http:// 

www.phlx.com/exchange/ 

phlx_rule_fil.html), 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 modify the method of order 

marking for non-regular way two-sided 

orders on XLE to conform to the method 

used by the National Securities Clearing 

Corporation (‘‘NSCC’’). The NSCC treats 

equity transactions with a non-regular 

settlement condition of two days as a 

‘‘Seller’s Option’’ instead of a ‘‘Next 

Day’’ transaction.5 Currently, Phlx treats 

equity transactions with a non-regular 

settlement condition of two days as a 

‘‘Next Day’’ transaction. 

Effectively, this proposed rule change 

does not change the availability or the 

attributes of a two-day settlement 

transaction (i.e., settlement of the 

securities two days after a transaction), 

but simply changes the method of order 

marking on XLE. At this time, Phlx 

proposes to change its rules and its 

specification for XLE to conform them 

to this change. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 6 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 7

in particular, in that 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. 

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 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 Act 8 and Rule 19b–

4(f)(6) thereunder.9

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

Number SR–Phlx–2007–22 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–2007–22. 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 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–2007–22 and should 

be submitted on or before April 17, 

2007. 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 72, No. 58 / Tuesday, March 27, 2007 / Notices 14321 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3On January 12, 2007, Phlx withdrew 

Amendment No. 1. 

4 15 U.S.C. 78s(b)(1). 

5 17 CFR 240.19b–4. 

6The Commission made minor clarifications to 

this sentence pursuant to a telephone call with the 

Continued 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5551 Filed 3–26–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55492; File No. SR–Phlx–

2006–61] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Notice of Filing of a Proposed Rule 

Change and Amendment No. 2 Thereto 

Relating to Order and Decorum 

Regulations 

March 20, 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 

September 26, 2006, 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 Phlx. On 

November 14, 2006, the Exchange filed 

Amendment No. 1 to the proposed rule 

change which was subsequently 

withdrawn.3 On January 19, 2007, the 

Exchange filed Amendment No. 2 to the 

proposed rule change. 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, pursuant to Section 19(b)(1) 

of the Act 4 and Rule 19b–4 thereunder,5

proposes to amend Option Order and 

Decorum Regulation 2, Food, Liquids 

and Beverages; Regulation 4, Order; 

Regulation 5, Visitors and Applicants; 

and Regulation 6, Dress, pursuant to 

Exchange Rule 60. The amendments 

intend to: (i) Add clarifying language to 

Regulations 4 and 5; (ii) amend 

Regulation 2 language concerning food, 

liquids and beverages and propose fines 

for violations of these new sections; (iii) 

add new language to address trash, litter 

and vandalism to Regulation 2; (iv) 

increase fine amounts as specified in 

proposed Regulations 2 and 6; (v) delete 

the language of Regulation 6 and adopt 

a revised dress code; and (vi) add 

clarifying language to Regulations 2, 4, 

5 and 6 regarding supervisory 

responsibility for violations of the 

various order and decorum regulations. 

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. 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 amend various Option 

Order and Decorum Regulations, 

adopted pursuant to Exchange Rule 60, 

to ensure the efficient, undisrupted 

conduct of business on the Exchange 

and provide a trading floor environment 

free from conduct that could distract or 

interfere with market activity. Further, 

the Exchange seeks to delineate specific 

guidelines concerning the conduct and 

personal appearance of persons on the 

trading floor to prohibit any act or 

omission, which could interfere with 

the personal safety of other persons on 

the trading floor. 

Regulation 2 

The Exchange no longer has a 

cafeteria for members on the premises 

and therefore, for purposes of 

convenience, the Exchange proposes to 

amend Regulation 2 to allow members, 

member organizations, participants, 

participant organizations and their 

associated persons to consume foods, 

liquids and beverages while on the 

trading floor, provided this does not 

unreasonably interfere with the business 

of the trading floor. The Exchange 

proposes to increase the fines associated 

with a violation of this Regulation to 

create a deterrent for members who are 

not compliant with the new policy. 

Additionally, new language is 

proposed to address trash, litter and 

vandalism on the trading floor. The 

Exchange desires to promote a 

professional environment and to create 

a physical workplace that is free of trash 

and litter. The Exchange proposes to 

add certain fines for violating the trash, 

litter and vandalism Regulations. Also, 

the Exchange proposes language to 

address vandalism. In an effort to 

maintain a businesslike atmosphere, the 

abuse, destruction and theft of property 

will not be tolerated. Due to the 

addition of these sections, the Exchange 

proposes changing the title of 

Regulation 2 from ‘‘Food, Liquids and 

Beverages’’ to ‘‘Food, Liquids and 

Beverages, Trash, Litter and Vandalism’’

to reflect the additions to this 

Regulation. 

Regulation 4 

The Exchange proposes adding 

language to section (a) of this Regulation 

to clarify that the use of profanity is a 

violation of this Regulation. While the 

use of profanity is currently a violation 

of Regulation 4, the Exchange seeks to 

further define the scope of prohibited 

conduct by specifically indicating that 

members, member organizations, 

participants, participant organizations 

and their associated persons will be 

disciplined for the use of profanity. 

Regulation 5 

The Exchange proposes amending this 

Regulation to authorize an Exchange or 

Floor Official to permit visitors on the 

trading floor. It is more practicable for 

Exchange and Floor Officials to 

determine whether to permit visitors to 

the trading floor instead of requiring a 

floor committee to meet and make such 

determinations. The decision to permit 

visitors on the trading floor is a day-today business function, which is better 

served by allowing Exchange and Floor 

Officials the authority to make these 

decisions. 

Regulation 6 

The Exchange proposes amending its 

current dress code to adopt a business 

casual dress code and clarify what 

business attire is deemed acceptable on 

the trading floor. By issuing guidelines 

on acceptable apparel while on the 

trading floor, the Exchange intends to 

encourage all members, member 

organizations, participants, participant 

organizations and their associated 

persons to comply with the dress code 

requirements of Regulation 6.6 The 


sroberts on PROD1PC70 with NOTICES