Document ID: SEC-2007-0122-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Philadelphia Stock Exchange, Inc.
Posted Date: 2007-01-26T05:00Z

[Federal Register: January 26, 2007 (Volume 72, Number 17)]
[Notices]               
[Page 3900-3901]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26ja07-163]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55126; File No. SR-Phlx-2007-02]

 
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
and Amendment No. 1 Thereto Relating to Fees for U.S. Dollar-Settled 
Foreign Currency Options

January 18, 2007.
    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 4, 2007, 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 prepared substantially by the 
Phlx. The Phlx submitted the proposed rule change under Section 
19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which 
renders the proposal effective upon filing with the Commission.\5\ On 
January 11, 2007, the Exchange filed Amendment No. 1 to the proposed 
rule change.\6\ The Commission is publishing this notice to solicit 
comments on the proposed rule change, as amended, 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).
    \4\ 17 CFR 240.19b-4(f)(2).
    \5\ The Phlx stipulated the implementation date to be January 8, 
2007.
    \6\ See Form 19b-4 dated January 11, 2007 (``Amendment No. 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 assess the same charges that are assessed on 
index options on all U.S. dollar-settled foreign currency options 
(``FCOs''). The Exchange also proposes to delete the words ``dollar or 
foreign currency based,'' which appear under the heading ``Summary of 
Currency Option Charges'' and to make other related clarifying changes 
to its Summary of Currency Option Charges.
    This proposal is scheduled to become effective upon the launch of 
trading of U.S. dollar-settled FCOs by the Exchange.\7\
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    \7\ The Commission recently issued a release approving a 
proposed rule change filed by the Exchange to list certain U.S. 
dollar-settled FCOs and to adopt rules and rule amendments to permit 
the trading of U.S. dollar-settled FCOs on the Exchange's electronic 
trading platform for options, Phlx XL. See Securities Exchange Act 
Release No. 54989 (December 21, 2006), 71 FR 78506 (December 29, 
2006) (SR-Phlx-2006-34). The Exchange launched trading of U.S. 
dollar-settled FCOs on January 8, 2007.
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    The text of the proposed rule change is available at the Phlx, the 
Commission's Public Reference Room, and http://www.phlx.com/exchange/phlx_rule_fil.html
.

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 this proposal is to adopt a fee schedule for U.S. 
dollar-settled FCOs. The Exchange proposes to amend its Summary of 
Index Option Charges fee schedule to include U.S. dollar-settled FCOs, 
which are not index options but which have trading features similar to 
index options, so that the Exchange will assess charges on these 
products in the same manner that it charges for index options. In 
addition, the Exchange proposes to list the symbols of U.S. dollar-
settled FCOs on its Summary of Index Option Charges. The Exchange 
believes that the fees set forth in its current Summary of Index Option 
Charges fee schedule reflect the value of U.S. dollar-settled FCOs as 
new investment vehicles.
    The Exchange also proposes to amend its Summary of Currency Option 
Charges, which will apply to the Exchange's currency products, but not 
U.S. dollar-settled FCOs described above. The purpose of deleting the 
words ``dollar or foreign currency based,'' which appear under the 
heading ``Summary of Currency Option Charges'' is to avoid confusion 
with U.S. dollar-settled FCOs as set forth in this proposal. The 
Exchange proposes, therefore, to state on its Summary of Currency 
Option Charges that U.S. dollar-settled FCOs are subject to a separate 
fee schedule.
2. Statutory Basis
    The Exchange believes that its proposal to amend its schedule of 
fees is consistent with Section 6(b) of the Act \8\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \9\ in 
particular, in that it is an equitable allocation of reasonable fees 
and other charges among Exchange members.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Phlx 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.

[[Page 3901]]

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \10\ and paragraph (f)(2) of Rule 19b-4 \11\ 
thereunder. 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.\12\
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    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
    \12\ For the purposes of calculating the 60-day abrogation 
period, the Commission considers the proposed rule change to have 
been filed on January 11, 2007, when Amendment No. 1 was filed.
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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-2007-02 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-Phlx-2007-02. 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. Copies of such 
filing also will be available for inspection and copying at the 
principal offices 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-2007-02 and should be submitted on or before 
February 16, 2007.

    For the Commission, by the Division of Market Regulation, 
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. E7-1181 Filed 1-25-07; 8:45 am]

BILLING CODE 8011-01-P