Document ID: SEC-2008-0218-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations: Philadelphia Stock Exchange, Inc
Posted Date: 2008-02-08T05:00Z

[Federal Register: February 8, 2008 (Volume 73, Number 27)]
[Notices]               
[Page 7617]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08fe08-104]                         

[[Page 7617]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57263; File No. SR-Phlx-2007-91]

 
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc; 
Order Approving a Proposed Rule Change to Require a Non-Streaming Quote 
Trader Registered Option Traders (``non-SQT ROT'') to Submit a List of 
Options for Intended Assignment

February 4, 2008.
    On December 12, 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 amend Exchange Rule 
1014(b)(ii)(C) to require ``non-SQT ROTs'' (as defined below) to submit 
to the Exchange a list of the options in which such non-SQT ROT intends 
to be assigned to make markets. The proposed rule change was published 
for comment in the Federal Register on December 31, 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. 57034 (December 21, 
2007), 72 FR 74398.
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    PHLX proposes to amend Exchange Rule 1014(b)(ii)(C) to require 
``non-SQT ROTs'' \4\ to notify the Exchange of each option, on an 
issue-by-issue basis, it intends to be assigned to make markets. Such 
notification would need to be made in writing on a form prescribed by 
the Exchange (an ``ROT Assignment Form''). Any change to the ROT 
Assignment Form would have to be made in writing by the non-SQT ROT 
prior to the end of the trading session in which the change is to take 
place. Receipt of the properly completed ROT Assignment Form from a 
qualified non-SQT ROT applicant would constitute acceptance by the 
Exchange of the non-SQT ROT's assignment in, or termination of 
assignment in (as indicated on the ROT Assignment Form), the options 
listed on such ROT Assignment Form. If a non-SQT ROT applicant failed 
to qualify as an ROT on the Exchange, such assignments would be 
rendered ineffective and would be terminated. The proposed rule change 
is designed to facilitate the Exchange's ability to track the 
activities of non-SQT ROTs.
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    \4\ A Streaming Quote Trader (``SQT'') is a Registered Options 
Trader (``ROT'') that has received permission from the Exchange to 
generate and submit electronic option quotations electronically via 
an Exchange approved quoting device. See Exchange Rule 
1014(b)(ii)(A). Non-SQT ROTs do not stream electronic quotations but 
make verbal markets upon request and have the ability to send limit 
orders to the limit order book via electronic interface with Phlx 
XL.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange.\5\ In 
particular, the Commission finds that the proposed rule change is 
consistent with section 6(b)(5) of the Act,\6\ which requires, among 
other things, that the Exchange's rules be designed to promote just and 
equitable principles of trade, to remove impediments to and perfect the 
mechanism for a free and open market and a national market system, and, 
in general, to protect investors and the public interest. The 
Commission believes that the proposed notification requirement will 
assist the Exchange in monitoring the activities of non-SQT ROTs and 
should contribute to the Exchange's efforts to enhance the fair and 
orderly operation of the Exchange's market.
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    \5\ In approving this proposal, the Commission considered the 
proposed rule's impact on efficiency, competition and capital 
formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\7\ that the proposed rule change (File No. SR-Phlx-2007-91) hereby 
is approved.
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    \7\ 15 U.S.C. 78s(b)(2).

Florence E. Harmon,
Deputy Secretary.
    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E8-2346 Filed 2-7-08; 8:45 am]

BILLING CODE 8011-01-P