
[Federal Register: June 2, 2008 (Volume 73, Number 106)]
[Notices]               
[Page 31529-31530]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02jn08-119]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57871; File No. SR-Phlx-2008-37]

 
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Definition of Exchange-Traded Fund Share

May 27, 2008.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\, and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on May 19, 2008, 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 prepared by the Phlx. The Exchange 
filed the proposal as a non-controversial 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 proposal effective upon filing with 
the Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Phlx proposes to modify Phlx Rule 1000(b)(42), the definition 
of Exchange-Traded Fund Share, to conform it to the definition of that 
term used in Phlx Rule 1009, Commentary .06.
    The proposed rule change is available at the Phlx, the Commission's 
Public Reference Room, and http://www.phlx.com.

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 update and clarify 
what may appear to be inconsistent language between Phlx Rule 
1000(b)(42) and Phlx Rule 1009, Commentary .06. Phlx Rule 1000(b)(42) 
defines the term Exchange-Traded Fund Share. Phlx Rule 1009, Commentary 
.06 states what options are appropriate for options trading on Phlx. 
Phlx currently utilizes the definition of Exchange-Traded Fund Share as 
stated in Phlx Rule 1009, Commentary .06 for purposes of determining 
what options are appropriate for options trading. This proposed rule 
change is meant to clarify Phlx's rules by correlating the definition 
of Exchange-Traded Fund Share in Phlx Rule 1000(b)(42) with the meaning 
of Exchange-Traded Fund Share in Phlx Rule 1009, Commentary .06. It is 
not intended to change which securities are deemed appropriate for 
options trading on Phlx.
    Phlx Rule 1000(b)(42) was adopted in 2001.\5\ The current language 
in Phlx Rule 1009, Commentary .06 was adopted in 2007.\6\ Phlx should 
have modified Phlx Rule 1000(b)(42) at that time to correlate it to the 
meaning of Exchange-Traded Fund Share in Phlx Rule 1009, Commentary 
.06, but inadvertently did not. Therefore, Phlx proposes to amend Phlx 
Rule 1000(b)(42) to state that the definition of Exchange-Traded Fund 
Share shall have the meaning assigned to it in Phlx Rule 1009, 
Commentary .06.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 43921 (February 2, 
2001), 66 FR 9739 (February 9, 2001).
    \6\ See Securities Exchange Act Release No. 55951 (June 25, 
2007), 72 FR 37298 (July 9, 2007).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with section 
6(b)

[[Page 31530]]

of the Act \7\ in general, and furthers the objectives of section 
6(b)(5) of the Act \8\ 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, 
by reducing any potential confusion in the Phlx Options Rules by 
correlating the definition of Exchange-Traded Fund Share in Phlx Rule 
1000(b)(42) with Phlx Rule 1009, Commentary .06.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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 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),\9\ the proposed rule change has become 
effective pursuant to section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
---------------------------------------------------------------------------

    \9\ In addition, Rule 19b-4(f)(6)(iii) requires a self-
regulatory organization to give the Commission written notice of its 
intent to file a proposed rule change, along with a brief 
description and text of the proposed rule change, at least five 
business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission. The 
Exchange has fulfilled this requirement.
    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    The Exchange has requested that the Commission waive the 30-day 
operative delay and designate the proposed rule change as operative 
upon filing. The Commission believes that waiving the 30-day operative 
delay is consistent with the protection of investors and the public 
interest because this proposal is solely intended to correlate the 
definition of Exchange-Traded Fund Share in the Phlx Options Rules and 
is not intended to change which securities are deemed appropriate for 
options trading on Phlx.
    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. Therefore, the Commission 
designates the proposal as operative upon filing.\12\
---------------------------------------------------------------------------

    \12\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

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-2008-37 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-2008-37. 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 Exchange. 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-2008-37 and should be submitted on or before June 
23, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-12206 Filed 5-30-08; 8:45 am]

BILLING CODE 8010-01-P
