

[Federal Register: November 28, 2006 (Volume 71, Number 228)]
[Notices]               
[Page 68875-68876]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28no06-103]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54802; File No. SR-Phlx-2006-72]

 
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to New Hours of Business on the Exchange's Foreign Currency 
Options Floor

November 21, 2006.
    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 November 8, 2006, 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 prepared by the Exchange. 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 modify its hours of business for dealings 
on the Exchange to change the opening of foreign currency options 
(``FCOs'') trading from 2:30 a.m. Eastern Time (``ET'') to 7:30 a.m. 
ET. The change would become effective on December 1, 2006. The text of 
the proposed rule change is available on the Phlx's Web site (http://www.phlx.com
), at the Phlx's principal office, and at the Commission's 

Public Reference Room.
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    \3\ 15 U.S.C. 78s(b)(1).
    \4\ 17 CFR 240.19b-4.
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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,

[[Page 68876]]

the proposed rule change and discussed any comments it received on the 
proposal. 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 make the Exchange's 
FCO floor more cost effective by reducing the duration of the foreign 
currency option trading session. Currently, Phlx Rule 101, Hours of 
Business, states that FCO trading sessions shall be conducted at such 
times as the Exchange's Board of Governors (``Board'') shall specify 
between 6 p.m., Sundays and 3 p.m., Fridays. Accordingly, the Board 
adopted the current hours for FCO trading sessions, opening at 2:30 
a.m. ET and closing at 2:30 p.m. ET.\5\
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    \5\ In 1993, the Exchange filed a proposed rule change to amend 
Phlx Rule 101 to provide that all FCO trading, except FCOs on the 
Canadian dollar, will be conducted between 1:30 a.m. ET and 2:30 
p.m. ET each business day. See Securities Exchange Act Release No. 
33246 (November 24, 1993), 58 FR 63421 (December 1, 1993) (SR-Phlx-
93-42). Subsequently, the trading hours were modified to move the 
opening of FCO trading from 1:30 a.m. ET to 2:30 a.m. ET for all 
Exchange-listed FCOs except the Canadian dollar. See Securities 
Exchange Act Release No. 34898 (October 26, 1994), 59 FR 54651 
(November 1, 1994) (File No. SR-Phlx-94-47). In May 2004, the 
Exchange expanded the trading hours for options on the Canadian 
dollar to conform to the trading hours for all other FCOs on the 
Exchange. See Securities Exchange Act Release No. 49690 (May 12, 
2004), 69 FR 28972 (May 19, 2004) (SR-Phlx-2004-24). Thus, all 
Exchange-listed FCOs currently trade on the Exchange from 2:30 a.m. 
ET until 2:30 p.m. ET.
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    The Exchange proposes to adopt a reduced time period for foreign 
currency option trading sessions by specifying that, beginning December 
1, 2006, foreign currency option trading sessions would open at 7:30 
a.m. ET and close at 2:30 p.m. ET. The Exchange represents that a 
significant majority of trades in foreign currency options occur during 
this time period, and thus the Exchange believes that it would be more 
cost effective to reduce the duration of the trading session with 
little or no impact on volume in FCOs.
    In connection with the proposed rule change adopting Phlx Rule 101, 
the Exchange committed to make future filings under section 19(b)(3)(A) 
of the Act,\6\ any time it expands or changes FCO trading hours in 
connection with Phlx Rule 101.\7\ The Exchange intends to notify its 
membership of the change in trading hours for FCOs by issuing a 
circular to members. The new trading hours for FCOs would be in effect 
beginning December 1, 2006.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ See Securities Exchange Act Release No. 26087 (September 16, 
1988), 53 FR 36930 (September 22, 1988) (File No. SR-Phlx-88-25).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \8\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act \9\ in particular, because 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.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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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 solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change has been designated as a 
practice with respect to the administration of an existing rule, it has 
become effective pursuant to Section 19(b)(3)(A)(i) of the Act \10\ and 
Rule 19b-4(f)(1) thereunder.\11\ 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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    \10\ 15 U.S.C. 78s(b)(3)(A)(i).
    \11\ 17 CFR 240.19b-4(f)(1).
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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-2006-72 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-2006-72. 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 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 2006-72 and should be submitted on or before 
December 19, 2006.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6-20127 Filed 11-27-06; 8:45 am]

BILLING CODE 8011-01-P
