Browse: Departments   Dates   Agencies  

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

NOTICE: NOTICES

ACTION: Self-regulatory organizations; proposed rule changes:

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

DOCUMENT SUMMARY: 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 19b4 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. \1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ See Securities Exchange Act Release No. 56775 (November 9, 2007), 72 FR 65119.

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 ByLaws and Rules; and (2) authorize the initiation of Exchange disciplinary actions or proceedings. Phlx ByLaw X, Section 1011(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.
\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 11(ii) of Phlx's ByLaws.

The proposed rule change would revise the qualification requirements for these two Committee positions. Specifically, Phlx proposes to amend Section 1011(h) of its ByLaws 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. \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).

It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\8\ that the proposed rule change (SRPhlx200783) be, and it hereby is, approved.

\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.
\9\ 17 CFR 200.303(a)(12).
[FR Doc. E725367 Filed 122807; 8:45 am]
BILLING CODE 801101P

SUMMARY: Philadelphia Stock Exchange, Inc.,

DOCUMENT BODY 2: 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 19b4 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. \1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ See Securities Exchange Act Release No. 56775 (November 9, 2007), 72 FR 65119.

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 ByLaws and Rules; and (2) authorize the initiation of Exchange disciplinary actions or proceedings. Phlx ByLaw X, Section 1011(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.
\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 11(ii) of Phlx's ByLaws.

The proposed rule change would revise the qualification requirements for these two Committee positions. Specifically, Phlx proposes to amend Section 1011(h) of its ByLaws 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. \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).

It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\8\ that the proposed rule change (SRPhlx200783) be, and it hereby is, approved.

\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.
\9\ 17 CFR 200.303(a)(12).
[FR Doc. E725367 Filed 122807; 8:45 am]
BILLING CODE 801101P