Document ID: SEC-2007-0257-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Philadelphia Stock Exchange, Inc.
Posted Date: 2007-02-20T05:00Z

[Federal Register: February 20, 2007 (Volume 72, Number 33)]
[Notices]               
[Page 7806-7807]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20fe07-37]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55282; File No. SR-Phlx-2007-03]

 
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Eliminating the Telephone System Line Extension Charge

February 12, 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 11, 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 substantially prepared by the 
Phlx. The Phlx filed the proposed rule change pursuant to 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. 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).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Phlx, pursuant to Section 19(b)(1) of the Act \5\ and Rule 19b-
4 thereunder,\6\ proposes to eliminate from Appendix A of the 
Exchange's fee schedule the telephone system line extension charge of 
$22.50 per month per extension. Any member, participant, and member or 
participant organization may, however, keep their telephone system line 
extensions without being charged. The Exchange proposes to make 
effective beginning January 2007 the elimination of the telephone 
system line extension charge.\7\
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    \5\ 15 U.S.C. 78s(b)(1).
    \6\ 17 CFR 240.19b-4.
    \7\ The monthly telephone system line extension charge for the 
month of January is not scheduled to be billed until the beginning 
of February 2007. The Exchange generally issues its invoices at the 
beginning of the subsequent month, with such invoices covering 
billing for the preceding month. Therefore, the monthly telephone 
system line extension charge for the month of January will be 
deleted from the January 2007 invoice, which is currently scheduled 
to be issued at the beginning of February 2007. Telephone 
conversation between Cynthia Hoekstra, Vice President, Phlx, and 
Molly M. Kim, Special Counsel, Division of Market Regulation, 
Commission, on February 7, 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.

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
    Currently, the Exchange assesses a fee of $22.50 per month per 
extension for telephone system line extensions on the options and 
foreign currency trading floors. The Exchange recently eliminated this 
fee for members and member organizations on the equity trading floor in 
connection with the

[[Page 7807]]

implementation of the Exchange's new equity system.\8\ The Exchange 
proposes at this time to also eliminate this fee for members, 
participants, and member or participant organizations on the options 
and foreign currency trading floors. Any member, participant, and 
member or participant organization may, however, keep their telephone 
system line extensions without being charged. The purpose of this 
proposal is to simplify the Exchange's fee schedule and billing 
process. The Exchange proposes to eliminate the telephone system line 
extension charge for the billing period beginning January 2007.\9\
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    \8\ See Securities Exchange Act Release No. 54941 (December 14, 
2006), 71 FR 77079 (December 22, 2006) (SR-Phlx-2006-70).
    \9\ See note 5 supra.
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2. Statutory Basis
    The Exchange believes that its proposal to amend Appendix A of its 
fee schedule by deleting the telephone system line extension charge for 
its members, participants, and member or participant organizations is 
consistent with Section 6(b) of the Act \10\ in general and furthers 
the objectives of Section 6(b)(4) of the Act \11\ in particular in that 
it is an equitable allocation of reasonable fees and other charges 
among Exchange members.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4).
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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 rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \12\ and paragraph (f)(2) of Rule 19b-4 
thereunder, because it establishes or changes a due, fee, or other 
charge.\13\ 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.
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    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \13\ 17 CFR 240.19b-4(f)(2).
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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-2007-03 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-2007-03. 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 the 
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-2007-03 and should be submitted on or before March 
13, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-2838 Filed 2-16-07; 8:45 am]

BILLING CODE 8010-01-P