3188 Federal Register / Vol. 72, No. 15 / Wednesday, January 24, 2007 / Notices 

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 54890 

(December 7, 2006), 71 FR 74975. 

4The MDDN is an internet protocol multicast 

network developed by PBOT and SAVVIS 

Communications. 

5Approximately 65 vendors, including for 

example Bloomberg L.P., Telekurs Financial 

Information Ltd. and Thomson Financial, have 

already entered into such market data agreements 

with PBOT. The PBOT has contracted with one or 

more major Market Data Vendors to receive realtime and closing index values over the MDDN and 

promptly redistribute such values. At least three of 

the vendors have elected to offer only the 

continuous real-time market data and will not offer 

snapshot or delayed data. The fees described in this 

proposed rule change cover values of all the 

indexes disseminated over the MDDN. 

6See Securities Exchange Act Release No. 53790 

(May 11, 2006), 71 FR 28738 (May 17, 2006) 

(‘‘Original Approval Order’’). The subscriber fees 

are set out in agreements that PBOT executed with 

various market data vendors for the right to receive, 

store, and retransmit the current and closing index 

values transmitted over the MDDN. In its original 

proposal, the Exchange stated that, under these 

vendor agreements PBOT may change any of the 

fees enumerated in the agreement by giving the 

vendor or subvendor advance written notice of such 

changes. The Commission conditioned any such fee 

change on the submission by Phlx of a proposed 

rule change under Section 19(b) of the Act, and 

approval of such proposal. See 71 FR at 28740. 

7The Commission notes that all market data 

vendors which provide market data to 200,000 or 

more Devices in any month qualify for a 15% 

Administrative Fee credit for that month, to be 

deducted from the monthly Subscriber Fees that 

they collect and are obligated to pay PBOT under 

the Vendor/Subvendor Agreement. 

8 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

9 15 U.S.C. 78f. 

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

11 17 CFR 242.603. See Original Approval Order, 

71 FR at 28739, supra note 6, noting that the 

subscriber fees were consistent with Rule 603 under 

the Act. 

12 17 CFR 242.603. 

13 15 U.S.C. 78f(b)(4). 

14 15 U.S.C. 78s(b)(2). 

15 17 CFR 200.30–3(a)(12). 

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–2006–31 and should 

be submitted on or before February 14, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–977 Filed 1–23–07; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55111; File No. SR–Phlx–

2006–59] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Order Granting Approval of Proposed 

Rule Change as Modified by 

Amendments No. 1 and 2 Thereto 

Relating to an Amendment to a 

Philadelphia Board of Trade Market 

Data Distribution Network Fee 

January 16, 2007. 

I. Introduction 

On September 26, 2006, the 

Philadelphia Stock Exchange, Inc. 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposal to increase a fee 

assessed by the Exchange’s wholly 

owned subsidiary, the Philadelphia 

Board of Trade (‘‘PBOT’’), on market 

data vendors for certain index values 

that subscribers receive over PBOT’s 

Market Data Distribution Network 

(‘‘MDDN’’). The Phlx filed Amendment 

No. 1 to the proposed rule change on 

November 1, 2006 and filed 

Amendment No. 2 on December 6, 2006. 

The proposed rule change, as amended, 

was published for comment in the 

Federal Register on December 13, 

2006.3 The Commission received no 

comments regarding the proposal. This 

order approves the proposed rule 

change, as amended. 

II. Description of the Proposal 

The Phlx proposes to amend one of 

the fees charged by the PBOT for certain 

market data disseminated over the 

MDDN.4 The Phlx has licensed the 

current and closing index values 

underlying most of the Phlx’s 

proprietary indexes to PBOT for the 

purpose of selling, reproducing, and 

distributing the index values over 

PBOT’s MDDN. On each trading day, 

the Exchange or its third party designee 

calculates and makes available to PBOT 

a real-time index value every 15 seconds 

and a closing index value at the end of 

the day. In exchange for subscriber fees 

paid to PBOT, market data vendors are 

allowed to widely disseminate this 

market data for all the values of Phlx’s 

proprietary indexes to their 

subscribers.5

As approved by the Commission, the 

market data fees charged by PBOT 

included a $.00025 per request fee for 

‘‘snapshot data,’’ which is essentially 

market data that is refreshed no more 

frequently than once every 60 seconds.6

The Exchange is now proposing to 

increase that fee from $.00025 to $.0025 

per request for snapshot data.7

III. Discussion 

After careful consideration, the 

Commission finds that the proposed 

rule change, as amended, is consistent 

with the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange 8 and, in particular, the 

requirements of Section 6 of the Act.9

Specifically, the Commission finds that 

the proposed rule change is consistent 

with Section 6(b)(5) of the Act,10 which 

requires, among other things, that the 

rules of a national securities exchange 

be 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. 

The Commission continues to believe 

that Phlx’s proposal is consistent with 

Rule 603 under the Act.11 In this regard, 

the Commission notes that the Exchange 

represented that PBOT’s proposed fee 

increase reflects a more accurate 

valuation of the value of snapshot data 

to investors than the original snapshot 

data fee did, consistent with Rule 603 

under the Act.12 The Commission 

believes that the proposal is consistent 

with Section 6(b)(4) of the Act,13 in that 

the proposed rule change provides for 

the equitable allocation of reasonable 

dues, fees, and other charges among the 

Exchange’s members and issuers and 

other persons using its facilities. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,14 that the 

proposed rule change (SR–Phlx–2006–

59), as amended, is hereby approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–958 Filed 1–23–07; 8:45 am] 

BILLING CODE 8011–01–P 


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