Document ID: SEC-2007-1579-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Philadelphia Stock Exchange, Inc.
Posted Date: 2007-11-23T05:00Z

[Federal Register: November 23, 2007 (Volume 72, Number 225)]
[Notices]               
[Page 65800-65801]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23no07-118]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56799; File No. SR-Phlx-2007-60]

 
 Self-Regulatory Organizations; Philadelphia Stock Exchange, 
Inc.; Order Approving a Proposed Rule Change Relating to Structured 
Equity Products

November 15, 2007.
    On August 14, 2007, 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 
proposed rule change to update its rules and its fee schedule regarding 
the listing of equity securities. The proposed rule change was 
published for comment in the Federal Register on October 16, 2007.\3\ 
The Commission received no comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 56626 (October 5, 
2007), 72 FR 58711 (``Notice'').
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    According to the Exchange, currently, the vast majority of equity 
securities that trade on Phlx are listed on other exchanges and traded 
on the Phlx pursuant to unlisted trading privileges. Phlx has a series 
of rules (the ``800 Series'') that create standards governing both the 
issuer of the security and the security to be listed and traded on 
Phlx. To attract the listing of structured equity

[[Page 65801]]

securities on the Exchange (``Structured Equity Products''),\4\ Phlx 
proposes modifications to the 800 Series that would accommodate the 
specific attributes of many of those types of securities.\5\
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    \4\ For purposes of this proposed rule change, Structured Equity 
Products are securities listed pursuant to the categories in Phlx 
Rule 803 entitled Other Securities, Equity Linked Notes, Basket 
Linked Notes, Index Linked Exchangeable Notes and Index Linked 
Securities. See Phlx Rule 803(f), (h), (k), (m) and (n).
    \5\ The Exchange proposes to modify Phlx Rules 802, 806 (Initial 
Public Offerings), 807 (Registration Under the Exchange Act), 837 
(Annual Reports) and the Phlx Fee Schedule as described in the 
Notice.
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    The Commission finds that the proposed rule change is consistent 
with Section 6(b) of the Act,\6\ in general, and with Section 6(b)(5) 
of the Act,\7\ which requires that the rules of a national securities 
exchange be designed to, among other things, 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.\8\ The 
Commission believes that the proposed rule change should promote 
competition among national securities exchanges and should benefit 
investors by removing impediments to the listing and trading of 
Structured Equity Products. The Commission also notes that the proposed 
amendments to Phlx Rules 807 and 837 would conform those rules with 
similar provisions of another national securities exchange.\9\
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ In approving this rule change, the Commission notes that it 
has considered the proposal's impact on efficiency, competition, and 
capital formation. See 15 U.S.C. 78c(f).
    \9\ See Sections 210 and 1101 of the American Stock Exchange 
Company Guide.
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    In addition, the Commission finds that the proposed rule change 
furthers the objectives of Section 6(b)(4) of the Act,\10\ which 
requires that the Exchange's rules provide for an equitable allocation 
of reasonable dues, fees, and other charges among Exchange members and 
issuers and other persons using its facilities. The Exchange also 
proposes that, for the two Structured Equity Products that it currently 
lists (Pharmaceutical Basket Opportunity Exchangeable Securities and 
Biotechnology Basket Opportunity Exchangeable Securities), the $500 per 
month continuing listing fee begin in January 2008 because the issuer 
of those securities was invoiced the current annual continuing listing 
fee ($1,250 for the first product and $250 for the second product) in 
January 2007. The Commission believes that, with respect to the two 
Structured Equity Products currently listed on Phlx, it is appropriate 
for the Exchange to delay application of the proposed continuing 
listing fee until January 2008 \11\ because the issuer of those 
products may have reasonably expected that the current fee would cover 
its obligation for these two products through the end of 2007.
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    \10\ 15 U.S.C. 78f(b)(4).
    \11\ By contrast, new Structured Equity Products will begin to 
pay the proposed fee in the month subsequent to initial listing on 
Phlx.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\12\ that the proposed rule change (SR-Phlx-2007-60) be, and hereby 
is, approved.
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    \12\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-22776 Filed 11-21-07; 8:45 am]

BILLING CODE 8011-01-P