Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Notices 7349 

6 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a et seq. 

3 17 CFR 240.19b–4. 

4 17 CFR 240.19b–4(f)(6). 

5 17 CFR 240.10a–1. 

6 17 CFR 242.200–203. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve such proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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 

rule-comments@sec.gov. Please include 

File Number SR–ISE–2007–76 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–ISE–2007–76. 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 at (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, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

Copies of such filing also will be 

available for inspection and copying at 

the principal office of ISE. 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–ISE–2007–76 and should be 

submitted on or before February 28, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–2267 Filed 2–6–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34—57251; File No. SR–NYSE–

2007–62] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Changes to NYSE 

Rules 104 (Dealings by Specialists); 

111 (Reports of Executions); 123A 

(Miscellaneous Reports); 123C (Market 

on the Close Policy and Expiration 

Procedures); 421(Periodic Reports); 

440B (Short Sales); 440C (Short Sale 

Borrowing and Delivery 

Requirements); 440F (Public Short 

Sale Transactions Effected on the 

Exchange); 440G (Transactions in 

Stocks and Warrants for the Accounts 

of Members, Allied Members and 

Member Organizations); 902 (Off-Hours 

Trading Orders); 1000 (Automatic 

Execution of Limit Orders Against 

Orders Reflected in NYSE Published 

Quotation); and 1003 (Application of 

Tick Tests) Relating to Recent 

Amendments to Rule 10a–1 and 

Regulation SHO 

February 1, 2008. 

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

Securities Exchange Act of 1934 

(‘‘Act’’)2 and Rule 19b–43 thereunder, 

notice is hereby given that on July 6, 

2007, the New York Stock Exchange 

LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’), and on 

December 5, 2007 amended, the 

proposed rule change as described in 

Items I and II below, which items have 

been substantially prepared by the 

Exchange. The Exchange filed the 

proposals as ‘‘non-controversial’’ rule 

changes under Rule 19b–4(f)(6)4 under 

the Act, which rendered the proposals 

effective upon filing with the 

Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule changes 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The NYSE proposes to make 

conforming amendments to certain of its 

rules in light of recent changes to short 

sale provisions in Rule 10a–15 of the Act 

and Regulation SHO.6 The rules the 

Exchange proposes to amend are the 

following: Rule 104 (Dealings by 

Specialists); Rule 111 (Reports of 

Executions); Rule 123A (Miscellaneous 

Reports); Rule 123C (Market on the 

Close Policy and Expiration 

Procedures); Rule 421(Periodic Reports); 

Rule 440B (Short Sales); Rule 440C 

(Short Sale Borrowing and Delivery 

Requirements); Rule 440F (Public Short 

Sale Transactions Effected on the 

Exchange); Rule 440G (Transactions in 

Stocks and Warrants for the Accounts of 

Members, Allied Members and Member 

Organizations); Rule 902 (Off-Hours 

Trading Orders); Rule 1000 (Automatic 

Execution of Limit Orders Against 

Orders Reflected in NYSE Published 

Quotation); and Rule 1003 (Application 

of Tick Tests). 

The text of the proposed rule change 

is available at the Exchange, on the 

Exchange’s Web site at http:// 

www.nyse.com, and in 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 

Exchange included statements 

concerning the purpose of, and basis for, 

the proposed rule change. The text of 

these statements may be examined at 


jlentini on PROD1PC65 with NOTICES
7350 Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Notices 

7See Securities Exchange Act Release No. 55970 

(June 28, 2007), 72 FR 36348 (July 3, 2007) 

(‘‘Adopting Release’’). 

8See Securities Exchange Act Release No. 1548 

(Jan. 24, 1938), 3 FR 213 (Jan. 26, 1938). 

9Rule 10a–1 used the term ‘‘effective transaction 

reporting plan’’ as defined in Rule 600 of 

Regulation NMS (17 CFR 242.600) under the 

Exchange Act. See 17 CFR 240.10a–1(a)(1)(i). 

10The last sale price was the price reported 

pursuant to an effective transaction reporting plan, 

i.e., the consolidated tape, or to the last sale price 

reported in a particular marketplace. Under Rule 

10a–1, the Commission gave market centers the 

choice of measuring the tick of the last trade based 

on executions solely on their own exchange rather 

than those reported to the consolidated tape. See 17 

CFR 240.10a–1(a)(2). 

11See Securities Exchange Act Release No. 54891 

(December 7, 2006), 71 FR 75071–75072 (December 

13, 2006) (‘‘Proposing Release’’) (discussing 

exceptions to Rule 10a–1 added by the Commission 

and relief granted by the Commission from the 

rule’s restrictions in recent years). 

12See Securities Exchange Act Release No. 50103 

(July 28, 2004), 69 FR 48008, 48012–48013 (Aug. 6, 

2004) (‘‘Regulation SHO Adopting Release’’). 

13 17 CFR 242.202T. 

14See Securities Exchange Act Release No. 50104 

(July 28, 2004), 69 FR 48032 (Aug. 6, 2004). 

15See id. See also Adopting Release, 69 FR 

48009. 

16See Securities Exchange Act Release No. 50747 

(Nov. 29, 2004), 69 FR 70480 (Dec. 6, 2004). See 

also NYSE Information Memos 04–64 (Dec. 22, 

2004) and 05–30 (April 27, 2005), which explain 

the establishment of the second Pilot Order. 

17See Proposing Release. 

18See Proposing Release. 

19See Adopting Release. 

20See Adopting Release. 

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 

On June 28, 2007, the Commission 

approved final rules eliminating the 

price test of Rule 10a–1 and amending 

Regulation SHO (‘‘Adopting Release’’).7

The amendments prohibit any selfregulatory organization (‘‘SRO’’) from 

having a price test and remove the 

‘‘short exempt’’ marking requirement of 

Rule 200(g). The compliance date for 

these changes was July 6, 2007. 

Accordingly, NYSE is proposing 

conforming amendments to the 

following rules: Rule 104 (Dealings by 

Specialists); Rule 111 (Reports of 

Executions); Rule 123A (Miscellaneous 

Reports); Rule 123C (Market on the 

Close Policy and Expiration 

Procedures); Rule 421(Periodic Reports); 

Rule 440B (Short Sales); Rule 440C 

(Short Sale Borrowing and Delivery 

Requirements); Rule 440F (Public Short 

Sale Transactions Effected on the 

Exchange); Rule 440G (Transactions in 

Stocks and Warrants for the Accounts of 

Members, Allied Members and Member 

Organizations); Rule 902 (Off-Hours 

Trading Orders); Rule 1000 (Automatic 

Execution of Limit Orders Against 

Orders Reflected in NYSE Published 

Quotation); and Rule 1003 (Application 

of Tick Tests). 

Background 

Rule 10a–1 was adopted by the 

Commission as a means to restrict short 

selling in a declining market.8 Rule 10a–

1(a) covered short sales in listed 

securities, or admitted to unlisted 

securities trading privileges on a 

national securities exchange, if trades of 

the security were reported pursuant to 

an ‘‘effective transaction reporting plan’’

and information regarding such trades 

was made available in accordance with 

such plan on a real-time basis to 

vendors of market transaction 

information.9 Rule 10a–1(a)(1) provided 

that, subject to certain exceptions, a 

listed security could be sold short either 

at a price above the price at which the 

immediately preceding sale was effected 

(plus tick), or at the last sale price if 

such price was higher than the last 

different price (zero-plus tick).10 This 

requirement was commonly described 

as the ‘‘tick test.’’

The Commission periodically added 

exceptions to Rule 10a–1 and granted 

numerous written requests for relief 

from the provisions of Rule 10a–1.11

Requests for exemptive relief increased 

considerably over time in response to 

significant developments in the 

securities markets, such as the increased 

use of matching systems that execute 

trades at independently derived prices 

during random times within specific 

time intervals and the spread of fully 

automated markets. Decimal pricing 

increments substantially reduced the 

difficulty of short selling on an uptick. 

In addition, under the then-effective 

short sale regulatory regime, different 

price tests applied to different securities 

trading in different markets and applied 

generally only to large or more activelytraded securities. 

In 2004, the Commission adopted 

Regulation SHO to update short sale 

regulation in light of numerous market 

developments since short sale 

regulation was first adopted in 1938.12

Rule 202T of Regulation SHO 13

established procedures for the 

Commission to temporarily suspend 

price tests so that the Commission could 

study their utility and effectiveness in 

connection with short sales. Under the 

authority of Rule 202T, in July 2004, the 

Commission issued an order to establish 

a pilot program (‘‘Pilot’’) for one year to 

temporarily suspend the provisions of 

Rule 10a–1(a) and any price test of any 

exchange or national securities 

association for short sales of certain 

securities.14 The Pilot was designed to 

assist the Commission in assessing 

whether changes to current short sale 

regulation were necessary in light of 

current market practices. The 

Commission was interested in the extent 

to which price tests were necessary to 

further the objectives of short sale 

regulation.15

The Pilot commenced on May 2, 2005 

and terminated on April 28, 2006.16 The 

Commission collected and analyzed the 

data from the Pilot to determine 

whether the short sale rules should be 

amended. Generally, the Pilot results 

supported removal of price test 

restrictions.17

Accordingly, in December 2006, the 

Commission, based on a careful study of 

the Pilot results and the status of price 

test restrictions, proposed amendments 

to remove the price test of Rule 10a–1 

and add Rule 201 of Regulation SHO to 

provide that no price test, including any 

price test of any SRO, shall apply to 

short sales in any security.18 The 

Commission also proposed to amend 

Rule 200(g) of Regulation SHO to 

remove the requirement that a brokerdealer mark a sell order of an equity 

security as ‘‘short exempt’’ if the seller 

was relying on an exception from a 

price test. The purpose of the 

amendments was to modernize and 

simplify short sale regulation and to 

provide greater regulatory consistency 

by removing restrictions where they no 

longer appeared necessary or effective.19

The proposed amendments were 

adopted on June 28, 2007 and became 

effective upon publication in the 

Federal Register 20 on July 3, 2007. They 

had a July 6, 2007 compliance date. 

The Adopting Release removed Rule 

10a–1 and added Rule 201 of Regulation 

SHO to provide that no price test, 

including any price test by any SRO, 

shall apply to short selling in any 

security. Additionally, Rule 200 of 

Regulation SHO previously required 

broker-dealers to mark sales in all equity 

securities ‘‘long,’’ ‘‘short,’’ or ‘‘short 

exempt.’’ Under the Rule, an order 

could be marked ‘‘short exempt’’ if the 

seller was entitled to rely on any 

exception from the tick test, under Rule 

10a–1 or any SRO price test. The 

amendments modified Rule 200(g) of 

Regulation SHO to remove the 

requirement that a broker-dealer mark a 

sell order of an equity security as ‘‘short 

exempt’’ if the seller is relying on an 


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Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Notices 7351 

21See Adopting Release. 

22Adopting Release, 69 FR 48013. See also, e.g., 

Section 17(a) of Securities Act of 1933, Sections 

9(a), 10(b), and 15(c) of Exchange Act, and Rule 

10b–5 thereunder. 23 15 U.S.C. 78f(b)(5). 

exception from the price test of Rule 

10a–1, or any price test of any exchange 

or national securities association, to 

reflect the rescission of the price test 

requirements.21

The Exchange notes the Adopting 

Release statement that ‘‘although the 

current price test restrictions are being 

removed, today’s markets are 

characterized by high levels of 

transparency and regulatory 

surveillance. These characteristics 

greatly reduce the risk of undetected 

manipulation and permit regulators to 

monitor for the types of activities that 

current price test restrictions are 

designed to prevent.’’ The Commission 

also noted that ‘‘the general anti-fraud 

and anti-manipulation provisions of the 

federal securities laws continue to 

prohibit activity designed to improperly 

influence the price of a security.’’22

Proposed NYSE Amendments 

The NYSE is proposing amendments 

to certain of its rules to conform to the 

Commission’s amendments to Rule 10a–

1 and Regulation SHO. Specifically, the 

Exchange is proposing amendments to 

remove short sale price test provisions, 

references to Rule 10a–1 and references 

to the ‘‘short exempt’’ marking 

requirement to update its rules in light 

of the amendments. 

NYSE Rule 440B (Short Sales) 

NYSE Rule 440B incorporates by 

reference Exchange Act Rule 10a–1 and 

Rules 200 and 203 of Regulation SHO. 

Rule 440B also includes an Explanatory 

Note, which generally describes changes 

to short sale regulation and 

implementation dates. Specifically, the 

Explanatory Note incorporates and 

explains the tick test under Rule 10a–1. 

In addition, the Explanatory Note 

incorporates the Pilot order, issued 

under Regulation SHO by the SEC, 

which suspended the NYSE tick test 

and any SRO price test for designated 

securities. 

The proposed amendments to Rule 

440B would delete the Explanatory Note 

as such information is no longer 

accurate as a result of the abovementioned expiration of Rule 202T and 

the Commission’s amendments 

rescinding Rule 10a–1 and prohibiting 

any SRO price tests on short sales. 

Current Rule 440B(a) provides 

restrictions on certain short sales 

pursuant to Rule 10a–1. Current Rule 

440B(c) suspends subsection (a) for such 

time and as to such securities as are 

designated under the Pilot. 

Additionally, Rule 440B(b) currently 

restricts a short sale by a specialist in 

which such specialist is registered for 

his own account or any other person in 

reliance upon the exemption provided 

under Rule 10a–1(e)(5). The Exchange is 

proposing to delete sections (a)–(c) of 

Rule 440B to reflect the rescission of 

Rule 10a–1. 

Current Rule 440B.10 generally 

explains Rule 10a–1 and sets forth the 

application of Rule 440B in connection 

with Rule 10a–1 and Regulation SHO. 

The Exchange is proposing to delete all 

references to Rule 10a–1 and its 

requirements in this provision. The 

Exchange is also proposing to amend 

Rule 440B.11 to delete any reference to 

Rule 10a–1 and to delete Rule 440B.12 

which sets forth the place of transaction 

requirements in connection with Rule 

10a–1. The Exchange also proposes to 

delete Rule 440B.15 as it describes 

prices at which short sales are to be 

made in accordance with Rule 10a–1. 

Further, the Exchange proposes to 

amend Rule 440B.13 to delete references 

to the ‘‘short exempt’’ marking 

requirement, and to delete Rule 

440B.20, which sets forth such marking 

requirement, in its entirety, as the 

‘‘short exempt’’ marking requirement 

has been removed by the Commission. 

The Supplementary Material of Rule 

440B will be renumbered to reflect the 

proposed amendments. 

Rule 440C (Short Sale Borrowing and 

Delivery Requirements) 

NYSE Rule 440C governs borrowing 

and deliveries against short sales by 

incorporating by reference the 

requirements of Rule 203 of Regulation 

SHO and Exchange Act Rule 10a–1. The 

Exchange is proposing to delete 

reference in Rule 440C to Rule 10a–1. 

Rule 421 (Periodic Reports) 

NYSE Rule 421 requires that member 

organizations submit to the Exchange 

periodic reports with respect to short 

positions in securities, covering such 

time period as may be designated by the 

Exchange. Also, Rule 421.10 provides 

that short positions to be reported 

exclude positions resulting from certain 

provisions of Rule 10a–1(e). 

The proposed amendment to Rule 

421.10 would delete reference to Rule 

10a–1(e)(1), (6), (7), (8) and (10) based 

on the rescission of Rule 10a–1, and add 

the language from these specific 

provisions to the rule text. Although the 

tick test is being eliminated, the 

substance of these provisions will be 

maintained as it is appropriate to retain 

an exception to the short sale interest 

reporting requirements. Thus, Rule 421 

will continue to provide the same 

exception as previously provided by 

Rule 10a–1(e)(1), (6), (7), (8), and (10) to 

the short sale reporting requirements. 

Other Rules 

The proposed amendment to NYSE 

Rules 104, 111, 123A, 123C and 1000 

would delete all references to Rule 10a–

1 and short sale tick tests. The 

amendments would delete NYSE Rule 

1003 in its entirety as it relates solely to 

tick tests. Further, the proposed 

amendments would delete references to 

the ‘‘short exempt’’ marking 

requirement in current NYSE Rules 

440F, 440G and 902. 

2. Statutory Basis 

The statutory basis for the proposed 

rule change is section 6(b)(5) 23 of the 

Act which requires, among other things, 

that the rules of an Exchange are 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism of a free and open market 

and national market system, and in 

general, to protect investors and the 

public interest. The proposed 

amendment will serve these interests by 

conforming the subject NYSE rules of 

this filing with the Commission’s recent 

amendments to provisions governing 

short sales. 

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 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing rule change 

does not: (A) Significantly affect the 

protection of investors or the public 

interest; (B) impose any significant 

burden on competition; and (C) become 

operative for 30 days after the date of 


jlentini on PROD1PC65 with NOTICES
7352 Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Notices 

24 15 U.S.C. 78s(b)(3)(A). 

25 17 CFR 240.19b–4(f)(6). 

26See 17 CFR 240.19b–4(f)(6)(iii), which requires 

that a self-regulatory organization submit to the 

Commission written notice of its intent to file a 

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. 

27See 17 CFR 240.19b–4(f)(6)(iii). 

28For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

29See Adopting Release. 

30 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)(2). 

5The Exchange states that FBMS is designed to 

enable floor brokers and/or their employees to 

enter, route, and report transactions stemming from 

options orders received on the Exchange. FBMS 

also is designed to establish an electronic audit trail 

for options orders represented and executed by 

floor brokers on the Exchange. See Exchange Rule 

1080, commentary .06. 

6Thus, outbound Linkage transactions, which are 

therefore not executed on the Exchange, are 

excluded from threshold calculations and subsidy 

payments, as further described below. 

this filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to section 

19(b)(3)(A) 24 of the Act and Rule 19b–

4(f)(6) 25 thereunder. 

The Exchange has requested that the 

Commission waive the 5-day pre-filing 

notice requirement 26 and the 30-day 

operative delay 27 of the proposed rule 

change. The Commission believes that 

such waiver is consistent with the 

protection of investors and the public 

interest 28 given that the compliance 

date for the Commission’s amendments 

to Rule 10a–1 was July 6, 2007.29 For 

this reason, the Commission designates 

the proposal to be effective and 

operative upon filing with the 

Commission. 

At any time within 60 days of the 

filing of such 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–NYSE–2007–62 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. 

All submissions should refer to File 

number SR–NYSE–2007–62. 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, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. to 3 p.m. 

Copies of such filing will also be 

available for inspection and copying at 

the principal office of the NYSE. 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–NYSE–2007–62 and should be 

submitted by February 28, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.30

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–2183 Filed 2–6–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57253; File No. SR–Phlx–

2008–08] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change Relating to an Options Floor 

Broker Subsidy Program 

February 1, 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 January 

29, 2008, 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 

Exchange. Phlx has designated this 

proposal as one establishing or changing 

a due, fee, or other charge imposed by 

Phlx under Section 19(b)(3)(A)(ii) of the 

Act 3 and Rule 19b–4(f)(2) 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: (1) Adopt a 

tiered per contract floor broker options 

subsidy payable to member 

organizations with Exchange registered 

floor brokers for eligible contracts (as 

defined below) that are entered into the 

Exchange’s Floor Broker Management 

System (’’FBMS’’) 5 and subsequently 

executed on the Exchange,6 subject to 

two threshold volume requirements; 

and (2) delete the current floor 

brokerage assessment that is set forth on 

the Exchange’s fee schedule in several 

places, specifically the Summary of 

Equity Option and RUT and RMN 

Charges, the Summary of Index Option 

Charges, the Summary of U.S. DollarSettled Foreign Currency Option 

Charges, and the Summary of Physical 

Delivery Currency Option Charges. 

Although changes to the fee schedule 

pursuant to this proposal are effective 

upon filing, the Exchange intends to 

implement the subsidy and delete the 

floor brokerage assessment beginning 

with transactions settling on or after 

February 1, 2008. 

The text of the proposed rule change 

is available at the Exchange, 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 


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