Document ID: SEC-2008-1203-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Philadelphia Stock Exchange, Inc.
Posted Date: 2008-09-02T04:00Z

[Federal Register: September 2, 2008 (Volume 73, Number 170)]
[Notices]               
[Page 51332-51333]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02se08-82]                         

[[Page 51332]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58405; File No. SR-Phlx-2008-63]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. Relating to Execution Fees on the XLE Fee Schedule

August 21, 2008.
    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 August 19, 2008, the Philadelphia Stock Exchange, Inc. (``Phlx'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II, and III, below, which Items have been prepared by the 
Phlx. 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.
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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 \3\ and Rule 19b-
4 thereunder,\4\ proposes to amend the Execution Fees on the XLE Fee 
Schedule.
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    \3\ 15 U.S.C. 78s(b)(1).
    \4\ 17 CFR 240.19b-4.
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    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.phlx.com/regulatory/reg_rulefilings.aspx.

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 adjust the Execution 
Fees for XLE[supreg], the Exchange's equity trading platform, in light 
of the expected reduction in volume following the Exchange's 
announcement to XLE Participants that XLE[supreg] will cease operations 
in October 2008. The Exchange informed XLE Participants on August 4, 
2008, that the Exchange intends to discontinue XLE[supreg] on or before 
October 24, 2008. Following this announcement, the Exchange expects 
that XLE Participants will now begin to reduce their operations on 
XLE[supreg], thereby reducing volume on XLE[supreg].
    The amendments to the XLE Fee Schedule include a deletion of the 
Execution Fees\5\ currently in place, including the categories of fees 
based on the volume tier level executed through XLE[supreg] \6\ and on 
the XLE Participant's status as a net maker or net taker of 
liquidity.\7\ As amended, the Execution Fee for removing liquidity will 
be $0.003 per share executed on XLE[supreg].\8\ There will be no credit 
for providing liquidity. These fees will apply to XLE Participants 
without regard to volume tiers or status as a net taker or net maker of 
liquidity. In addition, the XLE Fee Schedule will be amended to delete 
footnotes and references in footnotes referring to volume tier and net 
maker and net taker qualifications. The remaining footnotes will be 
renumbered. The amended Execution Fee will be operative for trades that 
settle on or after September 2, 2008.
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    \5\ See Securities Exchange Act Release No. 56526 (September 25, 
2007), 72 FR 56117 (SR-Phlx-2007-67).
    \6\ See footnote 4 of the current XLE Fee Schedule.
    \7\ See footnotes 2 and 3 of the current XLE Fee Schedule.
    \8\ The current fee for securities executed on XLE[supreg] with 
a per share price below $1.00 that remove liquidity will remain at 
0.1% (i.e., 10 basis points) of the total dollar value of the 
transaction.
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2. Statutory Basis
    The Exchange believes that its proposal to amend its schedule of 
fees is consistent with Section 6(b) of the Act \9\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \10\ in 
particular, in that it is an equitable allocation of reasonable fees 
and other charges among Exchange members who continue to use 
XLE[supreg] as the amended fees apply equally to all XLE Participants 
and will only operate for less than 60 days as the Exchange intends to 
discontinue XLE[supreg] on or before October 24, 2008. In addition, the 
Exchange believes that its proposal is consistent with Rule 610(c)(1) 
of Regulation NMS \11\ as the amended Execution Fee for removing 
liquidity from XLE[supreg] does not exceed $0.003 per share.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4).
    \11\ 17 CFR 242.610(c)(1).
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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 \13\ 
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.
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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-2008-63 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-2008-63. 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

[[Page 51333]]

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 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-2008-63 and should be 
submitted on or before September 23, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-20250 Filed 8-29-08; 8:45 am]

BILLING CODE 8010-01-P