Document ID: SEC-2008-0334-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Philadelphia Stock Exchange, Inc.
Posted Date: 2008-03-04T05:00Z

[Federal Register: March 4, 2008 (Volume 73, Number 43)]
[Notices]               
[Page 11692-11693]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04mr08-112]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57386; File No. SR-Phlx-2008-02]

 
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Order Granting Approval of Proposed Rule Change To Amend By-Law Article 
XIV, Section 14-5 and Phlx Rule 50

February 27, 2008.
    On January 8, 2008, 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: (i) Modify the timeframes within which monies 
owed to the Exchange would become reportable to the Board of Governors 
(``Board'') for further action; (ii) eliminate references to the 
monetary threshold of $10,000; (iii) conform By-Law language to 
indicate that Members, Member Organizations, participants,

[[Page 11693]]

and participant organizations would be subject to being terminated for 
failure to pay; and (iv) make other clarifying amendments. The proposed 
rule change was published for comment in the Federal Register on 
January 23, 2008.\3\ The Commission received no comments on the 
proposed rule change. This order approves 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. 57155 (January 15, 
2008), 73 FR 4038.
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    The Exchange proposes to modify the timeframes within which monies 
owed to the Exchange would become reportable to the Board, and by which 
Members, Member Organizations, participants, and participant 
organizations would be subject to a suspension or termination. 
Specifically, a Member, or Member Organization, participant, or 
participant organization or employee thereof shall be referred directly 
to the Board for failure to: (i) Pay fines and/or other monetary 
sanctions within 30 days after notice thereof; or (ii) pay dues, 
foreign currency options users' fees, fees, other charges, and/or other 
monies due, including late charges, within 90 days from the date of the 
original invoice. The proposed rule change would eliminate the 
references to the monetary threshold of $10,000 from both By-Law 
Article XIV, section 14-5 and Rule 50, so that all past due amounts are 
reportable to the Board within the specified proposed new timeframes. 
In addition, the proposed change to By-Law Article XIV, section 14-5 
clarifies that the Board also has the power to terminate, not just 
suspend, any permit or rights and privileges of a foreign currency 
options participation of any Member, foreign currency options 
participant, Member Organization or participant organization or 
employee thereof for failure to pay monies owed to the Exchange.\4\
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    \4\ The Commission notes that By-Law Article XIV, Section 14-1 
already gives the Board the power to terminate a permit or 
participation for failure to pay any fees, dues, or charges owed to 
the Exchange.
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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 that are applicable to a national securities exchange.\5\ In 
particular, the Commission believes that the proposed rule change is 
consistent with section 6(b)(5) of the Act,\6\ 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. The Commission believes that the modified timeframes 
within which past due fines, dues, fees, and other charges owed to the 
Exchange would become reportable to the Board appear reasonable and 
continue to allow appropriate notice to the affected parties of any 
arrearages. In addition, the proposed change will allow the Board to 
handle collection matters directly without regard to the amount, which 
should enhance the Exchange's collection efforts.
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    \5\ In approving this rule, 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).
    \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 (SR-Phlx-2008-02) be, and it 
hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    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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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-4080 Filed 3-3-08; 8:45 am]

BILLING CODE 8011-01-P