Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices 48001 

27 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)(1). 

4 17 CFR 240.19b–4. 5ROT equity option transaction charges are 

referred to on the Exchange’s fee schedule as 

‘‘Registered Option Trader (on floor).’’ This charge 

applies to ROTs, Streaming Quote Traders 

(‘‘SQTs’’), and Remote Streaming Quote Traders 

(‘‘RSQTs’’). SQTs and RSQTs are considered to be 

ROTs pursuant to Exchange Rule 1014. ROT 

transactions entered from off-floor would continue 

to be included in the broker/dealer equity option 

transaction charges for billing purposes, as set forth 

in footnote 3 of the Exchange’s Summary of Equity 

Option, and MNX, NDX, RUT and RMN Charges fee 

schedule. 

6Specialists are not currently assessed a 

comparison charge. 

7See Exchange Rule 1080. 

8FBMS is designed to enable Floor Brokers and/ 

or their employees to enter, route and report 

transactions stemming from options orders received 

on the Exchange. See Exchange Rule 1080, 

Commentary .06. 

9Linkage is governed by the Options Linkage 

Authority under the conditions set forth under the 

Plan for the Purpose of Creating and Operating an 

Intermarket Option Linkage (the ‘‘Plan’’) approved 

by the Commission. The registered U.S. options 

markets are linked together on a real-time basis 

through a network capable of transporting orders 

and messages to and from each market. 

10An ROT’s or a specialist’s monthly contract 

volume is determined at the member organization 

affiliation level, e.g., if five ROTs are affiliated with 

member organization ABC as reflected by Exchange 

records for the entire month, all of the volume from 

those five ROTs counts towards member 

organization ABC’s Volume Threshold for that 

month. 

11The current equity option comparison and 

transaction caps of $1,000 and $25,000 that are 

imposed in connection with dividend, merger and 

short stock interest strategies would continue to 

apply. 

12See Exchange Rule 1080. 

Number SR–NYSEArca–2008–51 and 

should be submitted on or before 

September 5, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18853 Filed 8–14–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58334; File No. SR–Phlx–

2008–59] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by the 

Philadelphia Stock Exchange, Inc. 

Relating to Changes to Its Equity 

Option Fees 

August 8, 2008. 

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 August 1, 

2008, Philadelphia Stock Exchange, Inc. 

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

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III below, which Items have been 

prepared by the Phlx. On August 8, 

2008, the Exchange filed Amendment 

No. 1 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 3 and Rule 19b–4 thereunder,4

proposes to amend its equity option fees 

as follows: (1) Reduce its equity option 

transaction charge to $0.01 per contract 

for Registered Options Traders 

(‘‘ROTs’’) 5 and specialists for contract 

volume above 4.5 million contracts per 

month (‘‘Volume Threshold’’); (2) delete 

the ROT equity option comparison 

charge for contract volume above the 

Volume Threshold; and (3) delete the 

$0.08 per contract side rebate for ROTs 

and $0.07 per contract side rebate for 

specialists in connection with trades 

occurring as part of a dividend, merger, 

and short stock interest strategy. 

This proposal is scheduled to become 

effective for trades settling on or after 

August 1, 2008. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.phlx.com/regulatory/ 

reg_rulefilings.aspx. 

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 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 

The purpose of the proposed rule 

change is to revise the Exchange’s fee 

schedule in order to remain competitive 

and encourage additional order flow to 

the Exchange. Pursuant to this proposal, 

the Exchange intends to amend its 

equity option transaction charges for 

ROTs and specialists. For contract 

volume below the Volume Threshold, 

ROTs would continue to be assessed the 

current equity option transaction charge 

of $0.19 per contract and specialists 

would be assessed the current equity 

option transaction charge of $0.21 per 

contract. Thereafter, both ROTs and 

specialists would be assessed an equity 

option transaction charge of $0.01 per 

contract for contract volume over the 

Volume Threshold for that month. ROTs 

would not be charged the current $0.03 

per contract equity option comparison 

charge for any transactions over the 

Volume Threshold.6 Thus, the total 

equity option transaction and 

comparison charge for both specialists 

and ROTs would be $0.01 per contract 

for contract volume over the Volume 

Threshold for that month. 

Currently, a fee credit of $0.21 per 

contract is given to specialists that incur 

equity option transaction charges when 

a customer order is delivered 

electronically via Phlx XL 7 or via the 

Exchange’s Options Floor Broker 

Management System (‘‘FBMS’’),8 and is 

then executed via the Intermarket 

Option Linkage (‘‘Linkage’’) 9 as a 

Principal Acting as Agent Order (‘‘P/A 

Order’’). In connection with decreasing 

the equity option transaction charge for 

specialists as described above, the fee 

credit would now be equal to the 

applicable equity option transaction 

charge per contract (i.e. $0.21 per 

contract or $0.01 per contract), in order 

not to give a credit that is greater than 

the equity option transaction charge that 

is imposed. 

To determine the Volume Threshold, 

the Exchange would aggregate the 

trading activity of separate ROTs and 

specialist member organizations if there 

is at least 75% common ownership 

between the member organizations as 

reflected on each member organizations’

Form BD, Schedule A.10 Contract 

volume resulting from dividend, merger, 

and short stock interest strategies 11 and 

contract volume resulting from 

specialists that incur Phlx equity option 

transaction charges when a customer 

order is delivered electronically via 

Phlx XL 12 or via FBMS and is then 

executed via Linkage as a P/A Order 

would not be included in the Volume 

Threshold calculation. In addition, 

currently, the Exchange does not assess 

ROT equity option transaction and 

comparison charges and specialist 

equity option transaction charges on 

additional qualifying transactions on 

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48002 Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices 

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

14 15 U.S.C. 78f(b)(4). 

15For billing purposes, ROTs entering 

transactions from off-floor will continue to be 

charged the broker/dealer equity option transaction 

charge because those transactions generally are 

considered to be not the core part of their 

continuous quoting and affirmative market making 

obligations. 

16 15 U.S.C. 78s(b)(3)(A)(ii). 

17 17 CFR 240.19b–4(f)(2). 18 17 CFR 200.30–3(a)(12). 

option contracts that number greater 

than 14,000, calculated per day: (1) per 

equity option overlying the same 

underlying security; (2) per RUT option; 

(3) per RMN option; (4) per MNX 

option; and (5) per NDX option (‘‘14,000 

cap’’). The contract volume above the 

14,000 cap described above would not 

be included in the Volume Threshold 

calculations. Therefore, per day, up to 

14,000 contracts that meet the criteria 

above would be included in the Volume 

Threshold. The purpose of excluding 

this volume is because it is already 

subject to different fee caps or fee 

credits. 

The Exchange also proposes to delete 

the $0.08 per contract side rebate for 

ROTs and $0.07 per contract side rebate 

for specialists in connection with trades 

occurring as part of a dividend, merger, 

and short stock interest strategy. The 

Exchange believes that at this time the 

rebate is no longer necessary. The 

Exchange believes that the current 

$1,000 and $25,000 fee caps that will 

remain unchanged are sufficient 

incentives to encourage this type of 

business at the Exchange. 

The purpose of SR–Phlx–2008–59, 

Amendment No. 1 is to clarify the 

application of the proposed reduction of 

the equity option transaction charge to 

$0.01 per contract. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its schedule of fees 

is consistent with Section 6(b) of the 

Act,13 in general, and furthers the 

objectives of Section 6(b)(4) of the Act,14

in particular, in that it is designed to 

provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among Exchange members. The 

Exchange believes that this proposal is 

equitable because it generally should 

result in a reduction in fees for ROTs 

and specialists who meet the Volume 

Threshold, which should, in turn, 

increase order flow to the Exchange. 

Specifically, the Exchange believes that 

it is equitable to reduce fees for 

specialists and ROTs, which includes 

SQTs and RSQTs, as opposed to other 

broker-dealers and ROTs entering 

transactions from off-floor because 

specialists and ROTs have continuous 

quoting and affirmative market making 

obligations.15

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 is 

effective upon filing pursuant to Section 

19(b)(3)(A)(ii) of the Act 16 and 

paragraph (f)(2) of Rule 19b–4 17

thereunder, because it establishes or 

changes a due, fee, or other charge 

applicable only to a member imposed by 

the Exchange. 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–2008–59 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–Phlx–2008–59. 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, on official business days between 

the hours of 10 a.m. and 3 p.m. 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 No. SR-Phlx-2008–

59 and should be submitted on or before 

September 5, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18855 Filed 8–14–08; 8:45 am] 

BILLING CODE 8010–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration # 11308] 

Illinois Disaster Number IL–00016 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 4. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of Illinois (FEMA–1771–DR), 

dated 06/24/2008. 

Incident: Severe Storms and Flooding. 

Incident Period: 06/01/2008 through 

07/22/2008. 

Effective Date: 07/30/2008. 

Physical Loan Application Deadline 

Date: 08/25/2008. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

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