

[Federal Register: August 24, 2007 (Volume 72, Number 164)]
[Notices]               
[Page 48718-48720]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24au07-134]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56272; File No. SR-Phlx-2007-57]

 
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Trading Sessions on XLE

 August 16, 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 3, 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 and 
II below, which Items have been substantially prepared by the Exchange. 
The Exchange filed the proposed rule change pursuant to Section 
19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which 
renders the proposed rule change effective upon filing with the 
Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Phlx Rule 101, Supplementary 
Material .02 to provide for securities that trade in one or two, but 
not all three, trading sessions on XLE.\5\ In addition, the Exchange 
would amend the rule to require the Exchange to maintain on its 
Internet Web site information regarding securities that do not trade in 
all three

[[Page 48719]]

sessions on XLE and securities which have a Core Session that lasts 
until 4:15 p.m. (ET).
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    \5\ Phlx Rule 101 Supplementary Material .02(1)-(3) describes 
XLE's three trading sessions. The Pre Market Session begins at 8 
a.m. Eastern Time (``ET'') and concludes at the commencement of the 
Core Session. The Core Session begins at 9:30 a.m. (ET) and 
concludes at 4 p.m. (ET), provided that for specified exchange-
traded funds, the Core Session concludes at 4:15 p.m. (ET). The Post 
Market Session begins following the conclusion of the Core Session 
and concludes at 6 p.m. (ET).
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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, 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.
    The text of the proposed rule change is available on the Phlx Web 
site (http://www.phlx.com), at the Exchange's Office of the Secretary, 

and at the Commission's Public Reference Room.

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 clarify the trading 
hours of certain securities that will not trade on Phlx during the 
entire XLE trading day. Phlx Rule 101 currently provides, in part, that 
XLE shall have three trading sessions each day: A Pre Market Session (8 
a.m. until 9:30 a.m. (ET)), a Core Session (9:30 a.m. until 4 p.m. 
(ET), except for certain exchange-traded funds (``ETFs''), for which 
the trading session lasts until 4:15 p.m. (ET)) and a Post Market 
Session (which begins at the conclusion of the Core Session and lasts 
until 6 p.m. (ET)). Proposed Phlx Rule 101 would include a list of 
those securities which are eligible to trade in one or more, but not 
all three of these trading sessions. Phlx would maintain on its 
Internet Web site (http://www.phlx.com) a list that identifies all 

securities traded on XLE that do not trade for the duration of each of 
the three sessions specified in Phlx Rule 101. For example, certain 
ETFs that are based on indexes composed of commodities or securities 
not registered in the United States may not be eligible to trade during 
the entire XLE trading day because the instruments underlying the 
indexes underlying the ETF are not active during certain times and 
therefore last sale or other data used to determine the index value is 
not available. In addition, Phlx will maintain on its Internet Web site 
a list that identifies all securities traded on XLE for which the Core 
Session is extended until 4:15 p.m. (ET). Pursuant to the proposed 
rule, Phlx would also be required to update its Web site promptly and 
indicate on its Web site a ``current as of'' date.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \6\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \7\ in particular, 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.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 5 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 either solicited or received.

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

    Because the foregoing proposed rule change does not:
    (i) Significantly affect the protection of investors or the public 
interest;
    (ii) Impose any significant burden on competition; and
    (iii) Become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate if 
consistent with the protection of investors and the public interest, it 
has become effective pursuant to Section 19(b)(3)(A) of the Act \8\ and 
Rule 19b-4(f)(6) thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally 
does not become operative prior to 30 days after the date of filing. 
However, pursuant to Rule 19b-4(f)(6)(iii), the Commission may 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay.\11\ The Commission 
believes that such waiver is consistent with the protection of 
investors and the public interest because the proposed rule change 
should provide transparency and more clarity with respect to the 
trading hours eligibility of certain derivative securities products. 
For this reason, the Commission designates the proposed rule change as 
operative upon filing with the Commission.\12\ The Commission notes 
that the filing does not change the trading hours of the derivative 
securities products listed in Phlx Rule 101, but codifies trading hour 
sessions that have been established through other rule changes or 
through the use of the Exchange's generic listing standards \13\ 
pursuant to Rule 19b-4(e) under the Act.\14\ The Commission also notes 
that the proposed rule change is substantially similar to the rules of 
another national securities exchange.\15\
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    \10\ Id.
    \11\ 17 CFR 240.19b-4(f)(6)(iii). As required by Rule 19b-
4(f)(6), the Exchange provided the Commission with written notice of 
its intent to file the proposed rule change, along with a brief 
description and text of the proposed rule change at least five days 
prior to the date of filing of the proposed rule change.
    \12\ For purposes only of waiving the operative date of this 
proposal, the Commission has considered the rule's impact on 
efficiency, competition and capital formation. See 15 U.S.C. 78c(f).
    \13\ See e.g., Phlx Rule 803(i)(11)(1).
    \14\ 17 CFR 240.19b-4(e).
    \15\ See Securities Exchange Act Release No. 55707 (May 4, 
2007), 72 FR 26666 (May 10, 2007) (SR-NYSEArca-2007-41).
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    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.

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-2007-57 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-2007-57. This file

[[Page 48720]]

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 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-2007-57 and should be 
submitted on or before September 14, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-16754 Filed 8-23-07; 8:45 am]

BILLING CODE 8010-01-P
