

[Federal Register: December 31, 2007 (Volume 72, Number 249)]
[Notices]               
[Page 74398]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31de07-108]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57023; File No. SR-Phlx-2007-83]

 
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Order Approving a Proposed Rule Change Relating to Amending By-Law 
Article X, Section 10-11

December 20, 2007.
    On October 29, 2007, 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 expand the type of business 
that certain members of the Exchange's Business Conduct Committee 
(``Committee'') must conduct in order to qualify as a Committee member. 
The proposed rule change was published for comment in the Federal 
Register on November 19, 2007.\3\ The Commission received no comments 
on the proposal. 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. 56775 (November 9, 
2007), 72 FR 65119.
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    The Committee has exclusive jurisdiction to, among other things: 
(1) Monitor compliance with the Act, the rules and regulations under 
the Act, and the Exchange's By-Laws and Rules; and (2) authorize the 
initiation of Exchange disciplinary actions or proceedings. Phlx By-Law 
X, Section 10-11(h) currently requires that, of the nine members that 
comprise the Committee, one Committee member must principally carry out 
its business on XLE \4\ and one Committee member must principally carry 
out its business on the equity options floor.
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    \4\ XLE is the electronic system that is operated by the 
Exchange for the entry, display, execution, and reporting of orders 
in NMS stocks. See Section 1-1(ii) of Phlx's By-Laws.
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    The proposed rule change would revise the qualification 
requirements for these two Committee positions. Specifically, Phlx 
proposes to amend Section 10-11(h) of its By-Laws to provide that these 
two positions can be filled, respectively, by a Member or person 
associated with a Member Organization who conducts equity business on 
XLE and a Member who conducts options business at the Exchange.
    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange.\5\ In particular, the Commission finds that the proposed rule 
change is consistent with Section 6(b)(5) of the Act,\6\ which requires 
that an exchange have rules designed, among other things, 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. 
In addition, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(3) under the Act,\7\ which requires that 
the rules of a national securities exchange assure a fair 
representation of its members in the selection of its directors and the 
administration of its affairs. The proposed rule change would allow a 
greater pool of Members to be eligible to hold these two Committee 
positions and would not alter Member participation on the Committee.
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    \5\ In approving this rule change, 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).
    \7\ 15 U.S.C. 78f(b)(3).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-Phlx-2007-83) be, and it 
hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Nancy M. Morris,
Secretary.
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    \9\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E7-25367 Filed 12-28-07; 8:45 am]

BILLING CODE 8011-01-P
