Document ID: SEC-2007-1288-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Philadelphia Stock Exchange, Inc.
Posted Date: 2007-09-19T04:00Z

[Federal Register: September 19, 2007 (Volume 72, Number 181)]
[Notices]               
[Page 53616-53617]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19se07-133]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56437; File No. SR-Phlx-2007-65]

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

September 13, 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 August 30, 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 
Exchange. On September 11, 2007, the Phlx submitted Amendment No. 1 to 
the proposed rule change.\3\ The Phlx has designated this proposal as 
one changing a due, fee, or other charge under Section 19(b)(3)(A)(ii) 
of the Act \4\ and Rule 19b-4(f)(2) thereunder,\5\ which renders the 
proposal effective upon filing with the Commission. 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\ In Amendment No. 1, the Exchange made non-substantive 
typographical corrections to the filing.
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 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 proposes to: (1) Eliminate the $0.04 per contract customer 
option comparison charge for U.S. dollar-settled foreign currency 
option transactions; (2) adopt a separate fee schedule for U.S. dollar-
settled foreign currency option charges; and (3) make technical changes 
to the current Summary of Index Option and U.S. Dollar-Settled Foreign 
Currency Option Charges fee schedule to update the fee schedule 
accordingly. This proposal is scheduled to become operative for 
transactions settling on or after September 4, 2007.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.Phlx.com, at the Phlx, and at the Commission's Public 

Reference Room.

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 Exchange 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 Exchange 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 Exchange intends to update its fees applicable to U.S. dollar-
settled foreign currency options in order to attract business and 
streamline the Exchange's fee schedule.
    The Exchange proposes to eliminate the $0.04 per contract 
comparison charge for transactions in U.S. dollar-settled foreign 
currency options applicable to customers. Currently, the comparison 
charge consists of either a $0.03 per contract charge for Registered 
Option Traders or a $0.04 per contract charge for Firm (Proprietary and 
Customer Executions). At this time, the Exchange proposes to eliminate 
the $0.04 per contract customer comparison charge. The $0.03 per 
contract charge for Registered Option Traders and the $0.04 per 
contract for Firm (Proprietary) will continue to apply. The Exchange 
believes that the elimination of the customer comparison charge may 
attract additional order flow to the Exchange.
    Currently, the Exchange charges fees for transactions in U.S. 
dollar-settled foreign currency options in the same manner that it 
charges for index options so therefore, the index option and U.S. 
dollar-settled foreign currency options are set forth on the same fee 
schedule. At this time, the Exchange proposes to separate out the fee 
schedule for the U.S. dollar-settled foreign currency options and to 
make technical changes to the current Summary of Index Option and U.S. 
Dollar-Settled Foreign Currency Option Charges fee schedule to update 
the fee schedule accordingly. The purpose of this proposal is to set 
forth the U.S. dollar-settled foreign currency option charges in a fee 
schedule separate from the index option fee schedule to more readily 
identify the fees for these products and to simplify the Exchange's fee 
schedule.
    No new index options fees are being adopted pursuant to this 
proposal. In addition, because this proposal merely deletes the $0.04 
per contract comparison charge in connection with U.S. dollar-settled 
foreign currency option transactions, no new U.S. dollar-settled 
foreign currency option fees are being adopted pursuant to this 
proposal.
2. Statutory Basis
    The Exchange believes that its proposal to amend its schedule of 
dues, fees and charges is consistent with Section 6(b) of the Act,\6\ 
in general, and furthers the objectives of Section 6(b)(4) of the 
Act,\7\ in particular, in that it is an equitable allocation of 
reasonable dues, fees and other charges among Exchange members and 
issuers and other persons using its facilities.\8\ The Exchange 
believes that eliminating the comparison charge for customers is 
equitable because customer transactions should benefit from reduced 
fees, which may in turn attract additional customer business to the 
Exchange for this relatively new product.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
    \8\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
Section 19(b)(3)(C) of the Act, the Commission considers the period 
to commence on September 11, 2007, the date on which the Phlx filed 
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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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 proposed rule change has been designated as a fee 
change

[[Page 53617]]

pursuant to Section 19(b)(3)(A)(ii) of the Act \9\ and Rule 19b-4(f)(2) 
thereunder,\10\ because it establishes or changes a due, fee or other 
charge imposed by the Exchange. Accordingly, the proposal will take 
effect upon filing with the Commission.
    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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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 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-2007-65 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-2007-65. 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. 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of such 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-2007-65 and should be 
submitted on or before October 10, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-18416 Filed 9-18-07; 8:45 am]

BILLING CODE 8010-01-P