Document ID: SEC-2006-0790-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Philadelphia Stock Exchange, Inc.
Posted Date: 2006-06-21T04:00Z

[Federal Register: June 21, 2006 (Volume 71, Number 119)]
[Notices]               
[Page 35724]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21jn06-159]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53981; File No. SR-Phlx-2005-69]

 
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Order Approving Proposed Rule Change To Amend Phlx Rule 784, Reports of 
Options

June 14, 2006.
    On November 9, 2005, 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 delete a requirement set forth 
in the Supplementary Material to Phlx Rule 784 obligating members and 
member organizations to provide to the Phlx particular information 
items regarding over-the-counter options trades relating to securities 
listed or traded on the Exchange. The Commission published the proposed 
rule change for comment in the Federal Register on May 10, 2006.\3\ The 
Commission received no comments on the proposed rule change.
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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. 53757 (May 3, 2006), 
71 FR 27303.
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    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder that are applicable to a national 
securities exchange.\4\ In particular, the Commission believes that the 
proposed rule change is consistent with section 6(b)(5) of the Act,\5\ 
which requires among other things, that the rules of the Exchange are 
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. Phlx Rule 784 is intended to facilitate the Exchange's 
surveillance for and enforcement of rules against manipulation in 
connection with over-the-counter options trading. The Commission 
believes that the proposal appears to be reasonably designed to 
eliminate a requirement to provide specific information that the 
Exchange does not necessarily need to monitor for manipulation. The 
Commission notes that, pursuant to the main text of Exchange Rule 784, 
the Exchange retains the ability to require members and member 
organizations to report to the Exchange such information as the 
Exchange may require regarding over-the-counter options trades.
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    \4\In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \5\15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-Phlx-2005-69) be, and hereby 
is, approved.
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    \6\15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-9690 Filed 6-20-06; 8:45 am]

BILLING CODE 8010-01-P