Document ID: SEC-2008-0829-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Philadelphia Stock Exchange, Inc.
Posted Date: 2008-06-18T04:00Z

[Federal Register: June 18, 2008 (Volume 73, Number 118)]
[Notices]               
[Page 34822-34823]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18jn08-137]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57953; File No. SR-Phlx-2008-45]

 
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Increasing the Maximum Number of Quoters in Options Overlying the SPDR 
Gold Trust

June 11, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on June 6, 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 
Phlx. The Exchange has designated this proposal as one constituting a 
stated policy, practice, or interpretation with respect to the meaning, 
administration, or enforcement of an existing rule under Section 
19(b)(3)(A)(i) of the Act,\3\ and Rule 19b-4(f)(1) 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(i).
    \4\ 17 CFR 240.19b-4(f)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Phlx proposes to increase the Maximum Number of Quoters 
(``MNQ'') in options overlying the SPDR Gold Trust (``GLD''). The text 
of the proposed rule change is available on Phlx's Web site (http://
www.phlx.com), at the Phlx's Office of the Secretary, and at 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 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 Phlx 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 enhance liquidity on 
the Exchange in options overlying GLD by setting the highest MNQ 
permissible under Exchange rules for such options.\5\
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    \5\ Exchange Rule 507, Commentary .02 provides:
    ``The term `MNQ' refers to the maximum number of participants 
that may be assigned in a particular equity option at any one time. 
The MNQ levels for options trading on the Exchange are as follows, 
based on the preceding month's national volumes:
    (a) 22 for the 5% most actively traded options;
    (b) 17 for the next 10% most actively traded options;
    (c) 12 for all other options.''
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    Exchange Rule 507, Commentary .04 provides a procedure by which the 
Exchange's Options Allocation, Evaluation and Securities Committee 
(``OAESC'') \6\ may increase the MNQ for a particular product. 
Specifically, when exceptional circumstances warrant, the OAESC may 
increase the MNQ for an existing or new product. ``Exceptional 
circumstances'' refers to substantial trading volume, whether actual or 
expected (e.g., in the case of a new

[[Page 34823]]

product or a major news announcement or corporate event). Upon 
cessation of the exceptional circumstances, the OAESC, in its 
discretion, may determine to reduce the MNQ, provided, however, that 
any reduction must be undertaken in accordance with the procedure 
established in the Rule 507.
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    \6\ See Exchange By-Law Article X, Section 10-7.
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    The effect of an increase in the MNQ is procompetitive in that it 
increases the number of market participants that may quote 
electronically in a product. The purpose of this filing is to increase 
the MNQ for options overlying GLD, which is a new product in which the 
Exchange expects substantial trading volume.
    The Exchange proposes to increase the MNQ in GLD options from 12 
quoters, the MNQ applicable to new products with no ``track record'' 
sufficient to determine whether such product falls within the top 5% 
most actively traded options, to 22 quoters, based on the Exchange's 
belief that options overlying GLD will eventually fall within this 
category.
    Increasing the MNQ in GLD options will enable the Exchange to 
enhance the liquidity offered, thereby offering deeper and more liquid 
markets. The Exchange represents that it will comply with all of the 
requirements of Exchange Rule 507 in increasing the MNQ in GLD options 
and, if it determines subsequently to reduce such MNQ, in reducing the 
MNQ in GLD options. Changes to the MNQ will be announced to the 
membership via Exchange Circular.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \8\ in particular, in that it is 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, 
by adding depth and liquidity to the Exchange's markets in GLD options.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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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 will take effect upon filing 
with the Commission pursuant to Section 19(b)(3)(A)(i) of the Act \9\ 
and Rule 19b-4(f)(1) thereunder,\10\ because it constitutes a stated 
policy, practice, or interpretation with respect to the meaning, 
administration, or enforcement of an existing rule.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(i).
    \10\ 17 CFR 240.19b-4(f)(1).
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    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 rule-comments@sec.gov. Please include 
File Number SR-Phlx-2008-45 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-2008-45. 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 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-2008-45 and should be submitted on or before July 9, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-13706 Filed 6-17-08; 8:45 am]

BILLING CODE 8010-01-P