17978 Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices 

7 17 CFR 200.30–3(a)(12). 

1 17 CFR 240.9b–1. 

2See letter from Jean M. Cawley, First Vice 

President and Deputy General Counsel, OCC, to 

Sharon Lawson, Senior Special Counsel, Division of 

Market Regulation (‘‘Division’’), Commission, dated 

March 5, 2007. 

3See letter from Jean M. Cawley, First Vice 

President and Deputy General Counsel, OCC, to 

Sharon Lawson, Senior Special Counsel, Division, 

Commission, dated April 3, 2007. 

4See Securities Exchange Act Release No. 55575 

(April 3, 2007) (approving File No. SR–ISE–2006–

59). 

5See Securities Exchange Act Release No. 55035 

(December 29, 2006), 72 FR 1358 (January 11, 2007) 

(SR–ODD–2006–01) (‘‘January 2007 Supplement’’). 

6The Commission notes that the options markets 

must continue to ensure that the ODD is in 

compliance with the requirements of Rule 9b–

1(b)(2)(i) under the Act, 17 CFR 240.9b–1(b)(2)(i), 

including when future changes are made regarding 

Non-Rate Modified FCOs and Rate-Modified FCOs. 

Any future changes to the rules of the options 

markets would need to be submitted to the 

Commission under Section 19(b) of the Act. 15 

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

7 17 CFR 240.9b–1(b)(2)(i). 

8This provision permits the Commission to 

shorten or lengthen the period of time which must 

elapse before definitive copies may be furnished to 

customers. 

9 17 CFR 240.9b–1. 

10 17 CFR 200.30–3(a)(39). 

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

2 17 CFR 240.19b–4. 

For the Commission by the Division of 

Market Regulation, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6668 Filed 4–9–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55582; File No. SR–ODD–

2007–01] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Order 

Granting Approval of Accelerated 

Delivery of Supplement to the Options 

Disclosure Document Reflecting 

Certain Changes to Disclosure 

Regarding Rate-Modified Cash-Settled 

Foreign Currency Options 

April 4, 2007. 

On March 13, 2007, The Options 

Clearing Corporation (‘‘OCC’’) submitted 

to the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Rule 9b–1 under the Securities 

Exchange Act of 1934 (‘‘Act’’),1 five 

preliminary copies of a supplement to 

its options disclosure document 

(‘‘ODD’’) reflecting certain changes to 

disclosure regarding rate-modified cashsettled foreign currency options (‘‘RateModified FCOs’’).2 On April 3, 2007, the 

OCC submitted to the Commission five 

definitive copies of the supplement.3

The ODD currently provides general 

disclosures on the characteristics and 

risks of trading standardize options. 

Recently, an options exchange amended 

its rules to permit the listing and trading 

of Rate-Modified FCOs.4 The proposed 

supplement, which supersedes and 

replaces the January 2007 Supplement 

to the ODD,5 provides disclosure on the 

characteristics of non-rate modified 

cash-settled foreign currency options 

(‘‘Non-Rate Modified FCOs’’) and adds 

new disclosure on the characteristics of 

Rate-Modified FCOs. 

In addition to providing new 

disclosure on the characteristics of RateModified FCOs, the proposed 

supplement to the ODD also reorganizes 

the January 2007 Supplement to 

distinguish disclosures regarding NonRate Modified FCOs from Rate-Modified 

FCOs, as well as providing a separate 

heading for certain disclosures 

pertaining to all dollar-denominated 

cash-settled foreign currency options. 

Further, the proposed supplement adds 

new clarification regarding exercise 

settlement values of Rate-Modified 

FCOs. The proposed supplement is 

intended to be read in conjunction with 

the more general ODD, which, as 

described above, discusses the 

characteristics and risks of options 

generally.6

Rule 9b–1(b)(2)(i) under the Act 7

provides that an options market must 

file five copies of an amendment or 

supplement to the ODD with the 

Commission at least 30 days prior to the 

date definitive copies are furnished to 

customers, unless the Commission 

determines otherwise, having due 

regard to the adequacy of information 

disclosed and the public interest and 

protection of investors.8 In addition, 

five copies of the definitive ODD, as 

amended or supplemented, must be 

filed with the Commission not later than 

the date the amendment or supplement, 

or the amended options disclosure 

document, is furnished to customers. 

The Commission has reviewed the 

proposed supplement and finds, having 

due regard to the adequacy of 

information disclosed and the public 

interest and protection of investors, that 

the proposed supplement may be 

furnished to customers as of the date of 

this order. 

It is therefore ordered, pursuant to 

Rule 9b–1 under the Act,9 that 

definitive copies of the proposed 

supplement to the ODD (SR–ODD–

2007–01), reflecting disclosure 

regarding Non-Rate Modified FCOs and 

adding disclosure regarding RateModified FCOs, may be furnished to 

customers as of the date of this order. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6709 Filed 4–9–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55569; File No. SR–Phlx–

2007–031] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Remove References to 

Intermarket Trading System (‘‘ITS’’) 

Plan 

April 2, 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 27, 

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 prepared substantially by the 

Exchange. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The Exchange is proposing to amend 

Phlx Rules 452 and 607 and the XLE Fee 

Schedule to remove references to the 

Intermarket Trading System (‘‘ITS’’) 

Plan and to delete Phlx Rules 2000–

2002, which implemented the ITS Plan 

trading rules on the Exchange. 

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, the 

Exchange 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 


cprice-sewell on PROD1PC66 with NOTICES
Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices 17979 

3See Securities Exchange Act Release No. 55397 

(March 5, 2007), 72 FR 11066 (March 12, 2007)(File 

No. 4–208). 

4 17 CFR 242.610–611. 

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

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). 

9 17 CFR 240.19b–4(f)(6)(iii). 

10 Id. 

11 Id. 

12For purposes of waiving the operative date of 

this proposal only, the Commission has considered 

the impact of the proposed rule on efficiency, 

competition, and capital formation. 15 U.S.C. 78c(f). 13 17 CFR 200.30–3(a)(12). 

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 conform the Exchange’s 

rules to the recent elimination of the ITS 

Plan.3 Phlx Rules 2000–2002 were 

adopted to implement the ITS Plan on 

the Exchange. Those rules contain the 

trade-through and locked/crossed 

market rules that governed trading in 

certain securities pursuant to the ITS 

Plan. Those rules are now obsolete with 

the elimination of the ITS Plan. Tradethrough and locked/crossed market 

rules are now mandated by Regulation 

NMS 4 and codified in Phlx Rules 185 

and 186. In addition, references to the 

ITS Plan are being removed from Phlx 

Rules 452 and 607 and the XLE Fee 

Schedule. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the Act,5

in general, and furthers the objectives of 

Section 6(b)(5) of the Act,6 in particular, 

in that it is designed 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. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Phlx 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 7 and Rule 19b–4(f)(6) thereunder.8

As required under Rule 19b–4(f)(6)(iii) 

under the Act,9 the Exchange provided 

the Commission with 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 the filing of the proposed rule change. 

A proposed rule change filed under 

19b–4(f)(6) normally may not become 

operative prior to 30 days after the date 

of filing.10 However, Rule 19b–

4(f)(6)(iii) 11 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Phlx has requested that the Commission 

waive the 30-day operative delay and 

render the proposed rule change 

operative immediately. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest. The Commission has 

eliminated the ITS Plan, which makes 

the various Phlx rules that refer to and 

implement the trading rules of the ITS 

Plan obsolete. For the reasons stated 

above, the Commission therefore 

designates the proposal to become 

operative upon filing with the 

Commission.12

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–2007–31 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–2007–31. 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 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–2007–31 and should 

be submitted on or before May 1, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6670 Filed 4–9–07; 8:45 am] 

BILLING CODE 8010–01–P 


cprice-sewell on PROD1PC66 with NOTICES