Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Time Period for the Position Limits Pilot Program, 7487-7488 [E7-2608]
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Federal Register / Vol. 72, No. 31 / Thursday, February 15, 2007 / Notices
added, deleted or postponed, please
contact:
The Office of the Secretary at (202)
551–5400.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Dated: February 13, 2007.
Nancy M. Morris,
Secretary.
[FR Doc. 07–726 Filed 2–13–07; 11:05 am]
In its filing with the Commission, BSE
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 Exchange has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55260; File No. SR–BSE–
2007–04]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Extend the
Time Period for the Position Limits
Pilot Program
February 8, 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 January
31, 2007, the Boston Stock Exchange,
Inc. (‘‘BSE’’ 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 BSE. The
Exchange has filed the proposal as a
‘‘non-controversial’’ rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) thereunder,4
which renders it effective upon filing
with the Commission. The Commission
is publishing this notice to solicit
comments on the proposed rule change
from interested persons.
ycherry on PROD1PC64 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
BSE proposes to amend Chapter III,
Section 7 (Position Limits) of the Rules
of the Boston Options Exchange
(‘‘BOX’’), an options trading facility of
BSE, to extend its current pilot program
to increase the standard position and
exercise limits for equity option
contracts and options on the Nasdaq100 Index Tracking Stock (‘‘QQQQ’’)
(‘‘Pilot Program’’). The text of the
proposed rule change is available at
BSE, the Commission’s Public Reference
Room, and www.bostonstock.com.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
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18:37 Feb 14, 2007
Jkt 211001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Pilot Program provides for an
increase to the standard position and
exercise limits for equity option
contracts and for options on QQQQs for
a six-month period.5 Specifically, the
Pilot Program increased the applicable
position and exercise limits for equity
options and options on the QQQQ to the
following levels:
Current equity option
contract limit 6
13,500
22,500
31,500
60,000
75,000
contracts.
contracts.
contracts.
contracts.
contracts.
Pilot program equity
option contract limit
25,000 contracts.
50,000 contracts.
75,000 contracts.
200,000 contracts.
250,000 contracts.
Current QQQQ option
contract limit
Pilot program QQQQ
option contract limit
300,000 contracts.
900,000 contracts.
6 Except
when the Pilot Program is in effect.
The Exchange believes that extending
the Pilot Program for six months is
warranted due to positive feedback from
members and for the reasons cited in the
original rule filing that proposed the
adoption of the Pilot Program.7 In
addition, BOX has not encountered any
problems or difficulties relating to the
Pilot Program since its inception. For
these reasons, the BSE requests that the
Commission extend the Pilot Program
5 The Pilot Program, which began on March 3,
2005, was extended on August 15, 2005, February
22, 2006, and August 30, 2006. See Securities
Exchange Act Release Nos. 51317 (March 3, 2005),
70 FR 12254 (March 11, 2005) (SR–BSE–2005–10)
(‘‘Pilot Program Notice’’); 52264 (August 15, 2005),
70 FR 48992 (August 22, 2005) (SR–BSE–2005–37);
53347 (February 22, 2006), 71 FR 10573 (March 1,
2006) (SR–BSE–2006–07); and 54388 (August 30,
2006), 71 FR 52833 (September 7, 2006) (SR–BSE–
2006–32).
7 See Pilot Program Notice, supra note 5.
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
7487
for an additional six months, through
and including September 1, 2007.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,8 in general, and furthers the
objective of Section 6(b)(5) of the Act,9
in particular, in that it is designed to
promote just and equitable principles of
trade and to protect investors and the
public interest.
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
The Exchange has neither solicited
nor received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
does not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days from the date of
this filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6) thereunder.11
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing.12 However, Rule 19b–
4(f)(6)(iii) 13 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay. The Commission believes that
waiving the 30-day operative delay is
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires that a self-regulatory
organization submit to the Commission 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 business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. BSE has satisfied the five-day prefiling requirement.
13 Id.
9 15
E:\FR\FM\15FEN1.SGM
15FEN1
7488
Federal Register / Vol. 72, No. 31 / Thursday, February 15, 2007 / Notices
consistent with the protection of
investors and in the public interest
because it will allow the Pilot Program
to continue uninterrupted.14
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 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
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 No.
SR–BSE–2007–04 and should be
submitted on or before March 8, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–2608 Filed 2–14–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55263; File No. SR–CBOE–
2005–111]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Approving
Proposed Rule Change as Modified by
Amendment No. 1 Thereto Relating to
Multiple Representation Exception
Procedures
Paper Comments
ycherry on PROD1PC64 with NOTICES
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–BSE–2007–04 on the subject
line.
February 9, 2007.
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File No.
SR–BSE–2007–04. 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 (https://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 will also be
available for inspection and copying at
the principal office of BSE. All
comments received will be posted
On December 16, 2005, the Chicago
Board Options Exchange, Incorporated
(‘‘CBOE’’ 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
adopt additional exceptions to the
prohibition on multiple representation
by Market Makers contained in CBOE
Rule 6.55.3 On October 17, 2006, the
Exchange filed Amendment No. 1 to the
proposed rule change. The proposed
rule change, as modified by Amendment
No. 1, was published for comment in
the Federal Register on December 6,
2006.4 The Commission received no
comments regarding the proposal.
Rule 6.55 is intended to ensure that
Market Makers are not
disproportionately represented in the
trading crowd. The general prohibition
of Rule 6.55 provides, in relevant part,
that no Market-Maker shall enter or be
present in a trading crowd while a Floor
Broker present in the trading crowd is
holding an order on behalf of the Market
Maker’s individual account or an order
14 For purposes only of waiving the operative
delay, the Commission has considered the proposed
rule’s impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
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18:37 Feb 14, 2007
Jkt 211001
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 The proposed rule change would also make
revisions to certain procedures in Rule 6.55 that
have become outdated.
4 See Securities Exchange Act Release No. 54823
(November 28, 2006), 71 FR 70810.
1 15
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
initiated by the Market-Maker for an
account in which the Market-Maker has
an interest.5
The proposed rule change would add
to the Rule’s current exceptions by
permitting a Market-Maker to enter or be
present in a trading crowd in which a
Floor Broker is present who holds either
a solicited order on behalf of the Market
Maker’s individual or joint account or a
solicited order initiated by the MarketMaker for an account in which the
Market Maker has an interest—provided
that the Market-Maker advises the Floor
Broker of his or her intention to enter
or be present in the trading crowd and
also refrains from trading in-person on
the same trade as the original order.6
The proposed rule change would further
permit a Market-Maker to enter or be
present in a trading crowd in which a
Floor Broker is present who holds an
order on behalf of the Market Maker’s
individual account or an order the
Market Maker initiated for an account in
which the Market Maker has an interest
(i.e., even when that order is not a
solicited order)—provided that the
Market-Maker advises the Floor Broker
of his or her intention to enter or be
present in the trading crowd and also
refrains from trading in-person on the
same trade as the order being
represented by the Floor Broker.
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, and in particular, with
Section 6(b)(5) of the Act,7 which
requires, among other things, that the
rules of a national securities exchange
be 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.8
5 Rule 6.55 also provides that regulatory circulars
concerning joint accounts should be consulted in
connection with procedures governing the
simultaneous presence in the trading crowd of
participants in and orders for the same joint
account. These circulars, among other things,
extend the prohibition against multiple
representation to cover joint account activity in
certain circumstances.
6 In the case of joint accounts, it would be the
responsibility of the Market-Maker to ascertain
whether solicited orders for his or her joint account
had already been entered with a Floor Broker in a
trading crowd prior to his or her trading for the
joint account in-person.
7 15 U.S.C. 78f(b)(5).
8 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition and capital
formation. See 15 U.S.C. 78c(f).
E:\FR\FM\15FEN1.SGM
15FEN1
]]>Agencies
[Federal Register Volume 72, Number 31 (Thursday, February 15, 2007)]
[Notices]
[Pages 7487-7488]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-2608]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55260; File No. SR-BSE-2007-04]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Extend the Time Period for the Position Limits Pilot Program
February 8, 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 January 31, 2007, the Boston Stock Exchange, Inc. (``BSE'' 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 BSE. The
Exchange has filed the proposal as a ``non-controversial'' rule change
pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6)
thereunder,\4\ which renders it 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
BSE proposes to amend Chapter III, Section 7 (Position Limits) of
the Rules of the Boston Options Exchange (``BOX''), an options trading
facility of BSE, to extend its current pilot program to increase the
standard position and exercise limits for equity option contracts and
options on the Nasdaq-100 Index Tracking Stock (``QQQQ'') (``Pilot
Program''). The text of the proposed rule change is available at BSE,
the Commission's Public Reference Room, and www.bostonstock.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, BSE 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 Exchange 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 Pilot Program provides for an increase to the standard position
and exercise limits for equity option contracts and for options on
QQQQs for a six-month period.\5\ Specifically, the Pilot Program
increased the applicable position and exercise limits for equity
options and options on the QQQQ to the following levels:
---------------------------------------------------------------------------
\5\ The Pilot Program, which began on March 3, 2005, was
extended on August 15, 2005, February 22, 2006, and August 30, 2006.
See Securities Exchange Act Release Nos. 51317 (March 3, 2005), 70
FR 12254 (March 11, 2005) (SR-BSE-2005-10) (``Pilot Program
Notice''); 52264 (August 15, 2005), 70 FR 48992 (August 22, 2005)
(SR-BSE-2005-37); 53347 (February 22, 2006), 71 FR 10573 (March 1,
2006) (SR-BSE-2006-07); and 54388 (August 30, 2006), 71 FR 52833
(September 7, 2006) (SR-BSE-2006-32).
------------------------------------------------------------------------
Current equity option contract Pilot program equity option
limit \6\ contract limit
------------------------------------------------------------------------
13,500 contracts. 25,000 contracts.
22,500 contracts. 50,000 contracts.
31,500 contracts. 75,000 contracts.
60,000 contracts. 200,000 contracts.
75,000 contracts. 250,000 contracts.
------------------------------------------------------------------------
Current QQQQ option contract limit Pilot program QQQQ option contract
limit
------------------------------------------------------------------------
300,000 contracts. 900,000 contracts.
------------------------------------------------------------------------
\6\ Except when the Pilot Program is in effect.
The Exchange believes that extending the Pilot Program for six
months is warranted due to positive feedback from members and for the
reasons cited in the original rule filing that proposed the adoption of
the Pilot Program.\7\ In addition, BOX has not encountered any problems
or difficulties relating to the Pilot Program since its inception. For
these reasons, the BSE requests that the Commission extend the Pilot
Program for an additional six months, through and including September
1, 2007.
---------------------------------------------------------------------------
\7\ See Pilot Program Notice, supra note 5.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\8\ in general, and furthers the objective of Section
6(b)(5) of the Act,\9\ in particular, in that it is designed to promote
just and equitable principles of trade and to protect investors and the
public interest.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 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
The Exchange has neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change does not: (1) Significantly
affect the protection of investors or the public interest; (2) impose
any significant burden on competition; and (3) become operative for 30
days from the date of this filing, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.\12\
However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay. The Commission believes
that waiving the 30-day operative delay is
[[Page 7488]]
consistent with the protection of investors and in the public interest
because it will allow the Pilot Program to continue uninterrupted.\14\
---------------------------------------------------------------------------
\12\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to
the Commission 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 business days prior to the date of filing
of the proposed rule change, or such shorter time as designated by
the Commission. BSE has satisfied the five-day pre-filing
requirement.
\13\ Id.
\14\ For purposes only of waiving the operative delay, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
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 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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-BSE-2007-04 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-BSE-2007-04. 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 (https://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 will also be available for inspection and copying at the
principal office of BSE. 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 No. SR-
BSE-2007-04 and should be submitted on or before March 8, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-2608 Filed 2-14-07; 8:45 am]
BILLING CODE 8011-01-P
