16846 Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Notices 

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

9 15 U.S.C. 78f(b)(4). 

10 15 U.S.C. 78s(b)(3)(A)(ii). 

11 17 CFR 240.19b–4(f)(2). 

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)(ii). 

4 17 CFR 240.19b–4(f)(5). 

by the language set forth above. The 

Exchange’s outbound routing facility 

sends outbound orders to an away 

market broker for execution on an away 

market. Any covered sale type-fee 

assessed by an away market and 

incurred by the away market broker is 

then passed back to Phlx for payment, 

through the Exchange’s outbound 

routing facility. This proposal inserts 

language to reflect that sale transactions 

may be routed over the Exchange’s 

routing facility. Also, the proposed 

language reflects that the Covered Sale 

fee may be collected by the Exchange for 

these transactions to help the Exchange 

recover the amounts paid to other 

exchanges. 

Additionally, the Exchange proposes 

to delete the reference to transactions 

routed over the NMS Linkage Plan, as it 

is no longer applicable. As discussed 

above, the Exchange has contracted with 

its outbound routing facility to route the 

Exchange’s outbound orders. Thus, 

these orders are no longer routed 

outbound through the NMS Linkage 

Plan. Deleting the language relating to 

outbound routing over the NMS Linkage 

Plan will update Phlx Rule 607 and the 

XLE Fee Schedule to reflect the 

Exchange’s current outbound routing 

practices. The provisions of Phlx Rule 

607 pertaining to arrangements with 

other exchanges remain unchanged 

because the Exchange accepts orders 

routed inbound through the NMS 

Linkage Plan. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its schedule of fees 

is consistent with Section 6(b) of the 

Act 8 in general, and furthers the 

objectives of Section 6(b)(4) of the Act 9

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 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 by the Exchange. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act 10 and 

paragraph (f)(2) of Rule 19b–4 11

thereunder because it establishes a due, 

fee, or other charge applicable only to a 

member. 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–2007–23 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–2007–23. 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-2007–23 and should 

be submitted on or before April 26, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6375 Filed 4–4–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55558; File No. SR–Phlx–

2007–25] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to the Exchange’s 

Automated Opening System 

March 29, 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 March 20, 

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 Phlx has filed the proposed 

rule change as one effecting a change in 

an existing order-entry or trading system 

of a self-regulatory organization 

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

Act 3 and Rule 19b–4(f)(5) 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 Phlx proposes to amend 

Exchange Rule 1017, Openings in 


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Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Notices 16847 

5An SQT is an Exchange Registered Options 

Trader (‘‘ROT’’) who has received permission from 

the Exchange to generate and submit option 

quotations electronically through AUTOM in 

eligible options to which such SQT is assigned. An 

SQT may only submit such quotations while such 

SQT is physically present on the floor of the 

Exchange. See Exchange Rule 1014(b)(ii)(A). 

6An RSQT is an ROT that is a member or member 

organization with no physical trading floor 

presence who has received permission from the 

Exchange to generate and submit option quotations 

electronically through AUTOM in eligible options 

to which such RSQT has been assigned. An RSQT 

may only submit such quotations electronically 

from off the floor of the Exchange. See Exchange 

Rule 1014(b)(ii)(B). 

7Phlx XL participants include specialist, SQT, 

RSQT, and non-SQT ROTs who are required to 

submit continuous two-sided electronic quotations 

pursuant to Exchange Rule 1014(b)(ii)(E). See 

Exchange Rule 1017(a). 

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

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(5). 

Options, to provide for a delay in the 

automated opening of an option series 

for up to five seconds when the 

conditions for opening the option series 

have been satisfied, and following: (1) 

Respecting equity options, the 

dissemination of an opening quote or 

trade in the primary market for the 

underlying security; or (2) respecting 

index options, following the 

dissemination of a quote or trade by the 

primary markets for underlying 

securities constituting 100% of the 

index value. The text of the proposed 

rule change is available at Phlx, the 

Commission’s Public Reference Room, 

and www.Phlx.com/exchange/phlx-rulefil.html. 

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 help Exchange specialists, 

Streaming Quote Traders (‘‘SQTs’’),5

and Remote Streaming Quote Traders 

(‘‘RSQTs’’) 6 to better manage their 

market risk by delaying the opening of 

an option series for a brief interval 

following the dissemination of an 

opening trade or quote in the underlying 

security. Thus, specialist, SQTs and 

RSQTs would be able to price options 

series accurately on the opening. 

Currently, the Exchange’s systems 

immediately open a series when the 

following conditions are satisfied: 

(i) The Exchange has received market 

orders, or the book is crossed (highest 

bid is higher than the lowest offer) or 

locked (highest bid equals the lowest 

offer); and either: 

(ii)(A) The specialist’s quote has been 

submitted; 

(B) The quotes of at least two Phlx XL 

participants 7 have been submitted 

within two minutes of the opening trade 

or quote on the primary market for the 

underlying security; or 

(C) If neither the specialist’s quote nor 

the quotes of two Phlx XL participants 

have been submitted within two 

minutes of the opening trade or quote 

on the primary market for the 

underlying security, one Phlx XL 

participant has submitted their quote. 

Once these conditions are satisfied, 

the system will automatically open the 

series immediately upon the 

dissemination of an opening trade or 

quote in the primary market for the 

underlying. The proposed rule change 

would delay the opening of an option 

series for up to five seconds from the 

dissemination of an opening quote or 

trade in the primary market for the 

underlying security or, respecting index 

options, following the dissemination of 

a quote or trade by the primary markets 

for underlying securities constituting 

100% of the index value. The time 

period would apply uniformly to all 

options traded on the Exchange. 

Experience with the automated 

opening system has shown that 

specialists, SQTs, and RSQTs frequently 

do not have an adequate opportunity to 

adjust their pre-opening quotes to 

accurately reflect the price of the 

underlying security when the 

underlying trade or quote is 

disseminated. As a result, the option 

series may be priced incorrectly at the 

opening, which places Exchange 

specialists, SQTs and RSQTs at market 

risk on the opening. 

The delay (which time period would 

be determined by the Exchange and 

disseminated to membership via an 

Exchange circular) should enable 

Exchange specialists, SQTs and RSQTs 

to better manage this market risk and to 

maintain fair and orderly markets by 

pricing options series accurately on the 

opening. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 8 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 9

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 Exchange specialists, SQTs 

and RSQTs to better manage their risk, 

thus providing fair and orderly markets 

and correct options pricing on the 

opening of a series, all to the benefit of 

customers and the marketplace as a 

whole. 

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 

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) of the Act 10 and 

Rule 19b–4(f)(5) 11 thereunder. At any 

time within 60 days of the filing of the 

proposed rule change the Commission 

may summarily abrogate such proposed 

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 


jlentini on PROD1PC65 with NOTICES
16848 Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Notices 

12 17 CFR 200.30–3(a)(12). 

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–2007–25 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–2007–25. 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–2007–25 and should 

be submitted on or before April 26, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6378 Filed 4–4–07; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF STATE 

[Public Notice 5743] 

Bureau of Educational and Cultural 

Affairs (ECA); Request for Grant 

Proposals: Edmund S. Muskie 

Graduate Fellowship Program 

Announcement Type: New 

Cooperative Agreement. 

Funding Opportunity Number: ECA/ 

A/E/EUR–08–01. 

Catalog of Federal Domestic 

Assistance Number: 00.000. 

Key Dates: Application Deadline: June 

1, 2007. 

Executive Summary: The Office of 

Academic Exchange Programs of the 

Bureau of Educational and Cultural 

Affairs (ECA) announces an open 

competition for the administration of 

the FY 2008 Edmund S. Muskie 

Graduate Fellowship Program (Muskie 

Program). Public and private non-profit 

organizations meeting the provisions 

described in IRS regulation 26 CFR 

1.501(c)(3) may submit proposals to 

administer the selection, placement, 

monitoring, evaluation, follow-on, and 

alumni activities for the Edmund S. 

Muskie Graduate Fellowship Program 

(Muskie Program). Organizations with 

less than four years experience in 

conducting international exchange 

programs are not eligible for this 

competition. 

The Muskie Program selects 

outstanding citizens from Armenia, 

Azerbaijan, Belarus, Georgia, 

Kazakhstan, Kyrgyzstan, Moldova, 

Russia, Ukraine, Uzbekistan, Tajikistan 

and Turkmenistan (herein referred to as 

Eurasia) to receive fellowships for 

Master’s level study in the United States 

in the fields of business administration, 

economics, law, public administration, 

and public policy. Candidates from 

countries other than Russia and Ukraine 

will be also considered in additional 

fields of education, environmental 

management, international affairs, 

library and information science, 

journalism/mass communications, and 

public health per guidelines outlined in 

the Project Objectives, Goals, and 

Implementation (POGI). Muskie 

Program fellows will be enrolled in 

graduate degree, certificate, and nondegree programs lasting one to two 

academic years. Funding should 

support a minimum of 145 fellows for 

Master’s level fellowships under the FY 

2008 program. Every effort should be 

made to maximize the number of 

awards granted. 

I. Funding Opportunity Description 

Authority 

Overall grant making authority for 

this program is contained in the Mutual 

Educational and Cultural Exchange Act 

of 1961, Public Law 87–256, as 

amended, also known as the FulbrightHays Act. The purpose of the Act is ‘‘to 

enable the Government of the United 

States to increase mutual understanding 

between the people of the United States 

and the people of other countries * * *; 

to strengthen the ties which unite us 

with other nations by demonstrating the 

educational and cultural interests, 

developments, and achievements of the 

people of the United States and other 

nations * * * and thus to assist in the 

development of friendly, sympathetic 

and peaceful relations between the 

United States and the other countries of 

the world.’’ The funding authority for 

the program above is provided through 

Fulbright-Hays legislation. 

Purpose 

The Muskie Program is designed to 

promote mutual understanding, build 

democracy and foster the transition to 

market economies in Eurasia through 

intensive academic study and 

professional training. The academic 

component of the program will begin in 

the fall semester of academic year 2008–

2009. Fellows may participate in a nine, 

twelve, eighteen, or twenty-four month 

academic program leading to a Master’s 

degree. Fellows also take part in an 

eight to twelve week internship during 

the summer following the first academic 

year, with an option for a second 

internship following the second year of 

study. At the end of their designated 

academic and/or internship programs, 

fellows are required to return 

immediately to their home countries. 

Applicant organizations must 

demonstrate the ability to administer all 

aspects of the Muskie Program—

recruitment, selection, university 

placements, orientation, monitoring and 

support of FY 2008 fellows including all 

logistics, financial management, 

evaluation, follow-on, and alumni. 

Applicant organizations must 

demonstrate the ability to recruit and 

select a diverse pool of candidates from 

various geographic regions in Eurasia. 

The cooperating organization will serve 

as the principal liaison with Muskie 

Program host institutions for the 

Bureau. Further details on specific 

program responsibilities can be found in 

the Project Objectives, Goals, and 

Implementation (POGI), which is part of 

the formal solicitation package. 

Interested organizations should read the 

entire Federal Register announcement 


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