Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Extend the Late Trading Session and To Permit Only the Execution of Cross Orders During That Session, 8215-8216 [E7-3090]
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cprice-sewell on PROD1PC61 with NOTICES
Federal Register / Vol. 72, No. 36 / Friday, February 23, 2007 / Notices
however, that any Wilshire Entity or any
insurance company General Account
shall vote its shares in such other
manner as may be required by the
Commission or its staff.
8. The Trust will comply with all
provisions of the 1940 Act requiring
voting by shareholders, which for these
purposes, shall be the persons having a
voting interest in the shares of the
respective Portfolio, and, in particular,
the Trust will either provide for annual
meetings (except to the extent that the
Commission may interpret Section 16 of
the 1940 Act not to require such
meetings) or comply with Section 16(c)
of the 1940 Act (although the Trust is
not one of the funds of the type
described in the Section 16(c) of the
1940 Act), as well as with Section 16(a)
of the 1940 Act and, if and when
applicable, Section 16(b) of the 1940
Act. Further, the Trust will act in
accordance with the Commission’s
interpretation of the requirements of
Section 16(a) with respect to periodic
elections of trustees and with whatever
rules the Commission may promulgate
with respect thereto.
9. The Trust will notify all
Participants that Separate Account
prospectus disclosure or Qualified Plan
prospectuses or other Qualified Plan
disclosure documents regarding
potential risks of mixed and shared
funding may be appropriate. The Trust
will disclose in its prospectus that (a)
Shares of the Trust may be offered to
Separate Accounts of both variable
annuity and variable life insurance
contracts and, if applicable, to Qualified
Plans; (b) due to differences in tax
treatment and other considerations, the
interests of various contract owners
participating in the Trust and the
interests of Qualified Plans investing in
the Trust, if applicable, may conflict;
and (c) the Trust’s Board will monitor
events in order to identify the existence
of any material irreconcilable conflicts
and to determine what action, if any,
should be taken in response to any such
conflict.
10. If and to the extent that Rule 6e–
2 and Rule 6e–3(T) under the 1940 Act
are amended, or proposed Rule 6e–3
under the 1940 Act is adopted, to
provide exemptive relief from any
provision of the 1940 Act, or the rules
promulgated thereunder, with respect to
mixed or shared funding, on terms and
conditions materially different from any
exemptions granted in the order
requested in this Application, then the
Trust and/or Participating Insurance
Companies, as appropriate, shall take
such steps as may be necessary to
comply with Rules 6e–2 and 6e–3(T), or
Rule 6e–3, as such rules are applicable.
VerDate Aug<31>2005
15:07 Feb 22, 2007
Jkt 211001
11. The Participants, at least annually,
will submit to the Board such reports,
materials, or data as a Board reasonably
may request so that the trustees of the
Board may fully carry out the
obligations imposed upon the Board by
the conditions contained in this
application. Such reports, materials, and
data will be submitted more frequently
if deemed appropriate by the Board. The
obligations of the Participants to
provide these reports, materials, and
data to the Board, when it so reasonably
requests, will be a contractual obligation
of all Participants under their
agreements governing participation in
the Portfolios.
12. All reports of potential or existing
conflicts received by the Board, and all
Board action with regard to determining
the existence of a conflict, notifying
Participants of a conflict, and
determining whether any proposed
action adequately remedies a conflict,
will be properly recorded in the minutes
of the Board or other appropriate
records, and such minutes or other
records shall be made available to the
Commission upon request.
13. The Trust will not accept a
purchase order from a Qualified Plan if
such purchase would make the
Qualified Plan shareholder an owner of
10 percent or more of the assets of such
Portfolio unless such Qualified Plan
executes an agreement with the Trust
governing participation in such
Portfolio that includes the conditions
set forth herein to the extent applicable.
A Qualified Plan or Qualified Plan
participant will execute an application
containing an acknowledgment of this
condition at the time of its initial
purchase of shares of any Portfolio.
14. A Portfolio will make its shares
available under a Variable Contract and/
or Qualified Plan at or about the same
time as it accepts any seed capital from
any Wilshire Entity or any General
Account of a Participating Insurance
Company.
Conclusions
Applicants submit, based on the
grounds summarized above, that the
exemptions requested are necessary or
appropriate in the public interest and
consistent with the protection of
investors and the purposes fairly
intended by the policy and provisions of
the 1940 Act.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–3068 Filed 2–22–07; 8:45 am]
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55308; File No. SR–CHX–
2006–38]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing of a Proposed Rule Change
To Extend the Late Trading Session
and To Permit Only the Execution of
Cross Orders During That Session
February 15, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
22, 2006, the Chicago Stock Exchange,
Inc. (the ‘‘CHX’’ or the ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the CHX. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
rules (i) To extend its late trading
session until 4 p.m. and (ii) to provide
that only cross orders may be executed
during that session. The text of this
proposed rule change is available on the
Exchange’s Web site at https://
www.chx.com/rules/
proposed_rules.htm, at the Exchange’s
principal office, and in the
Commission’s Public Reference Room.
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
CHX included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received regarding the
proposal. The text of these statements
may be examined at the places specified
in Item IV below. The CHX 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
In the Exchange’s new trading model,
the Exchange conducts two trading
1 15
2 17
BILLING CODE 8010–01–P
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E:\FR\FM\23FEN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 72, No. 36 / Friday, February 23, 2007 / Notices
cprice-sewell on PROD1PC61 with NOTICES
sessions. The first session—called the
regular trading session—is held from
8:30 a.m. (Central Time) to 3 p.m.
(Central Time).3 The second trading
session—called the late trading
session—is held from the end of the
regular session until 3:30 p.m. (Central
Time). The Exchange’s Matching System
begins accepting orders for the late
trading session immediately after the
closing of the regular trading session in
a security.4
Through this proposal, the Exchange
seeks to extend its late trading session
by one-half hour, to 4 p.m. (Central
Time), and to confirm that only cross
orders may be executed during the late
trading session. The slightly longer
trading session is designed to allow
CHX participants to trade for a full hour
after the normal close of the regular
trading session. The cross-orders-only
rule simply confirms that CHX
participants may only submit cross
orders for execution during the late
trading session.5 The Exchange believes
that it is appropriate to limit the late
trading session to cross orders for a
variety of reasons—including the fact
that doing so is consistent with the
types of orders currently submitted by
CHX participants during its current
after-hours trading session.6 The
Exchange also believes that this
proposal is consistent with late trading
sessions operated by other markets.7
3 The regular trading session for certain ETFs
extends to 3:15 p.m. (Central Time).
4 See CHX Rules, Article 20, Rule 8(c)(3). All
orders remaining in the Matching System at the end
of the regular trading session are cancelled back to
the firms that submitted them; firms must submit
new orders if they seek to trade in the late trading
session.
5 In connection with this change to allow only
cross orders to be executed during the late trading
session, the Exchange is proposing a change in its
definition of ‘‘NBBO’’ to confirm that it applies only
to protected quotes disseminated during regular
trading hours. Without this change, a cross order in
the late trading session technically would be
required to be submitted at a price that is at or
better than the NBBO during the late trading session
(if markets are disseminating protected quotes),
even though the trade-through provisions of Rule
611 of Regulation NMS do not apply during that
session. See Article 20, Rule 4(b)(4)(defining a cross
order as one that is equal to or better than the
NBBO).
6 Under the rules relating to its soon-to-be-retired
trading model, the Exchange’s MAX system is not
available for trading in the post-primary trading
session, which begins immediately after the end of
the regular trading session. See Article XX, Rule 37,
Interpretation and Policy .05. The Exchange’s floor
brokers can receive and execute orders during the
post-primary trading session and often execute
those orders as cross transactions.
7 Other markets have instituted trading sessions
that occur after the end of regular trading and that
involve the execution of cross transactions. See,
e.g., Boston Stock Exchange Rules, Ch. IIC
(Extended Hours Crossing Session), Section 4
(noting that ‘‘only matched orders are eligible for
execution during the ETS’’); New York Stock
VerDate Aug<31>2005
15:07 Feb 22, 2007
Jkt 211001
2. Statutory Basis
Approval of the rule changes
proposed in this submission is
consistent with the requirements of the
Act and the rules and regulations
thereunder that are applicable to a
national securities exchange, and, in
particular, with the requirements of
Section 6(b) of the Act.8 In particular,
the proposed changes are consistent
with Section 6(b)(5) of the Act,9 because
they would promote just and equitable
principles of trade, remove
impediments to, and perfect the
mechanism of, a free and open market
and a national market system, and, in
general, protect investors and the public
interest by permitting the Exchange to
operate a late trading session during
which only cross orders are eligible for
execution.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule changes would
impose any burden on competition.
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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period:
(i) As the Commission may designate up
to 90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve the proposed
rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
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:
Exchange 900 Series Rules ((’’Off-Hours Trading
Facility Rules’’) including Rules 902 and 907
(describing different types of coupled orders that
can be executed during the NYSE off-hours
sessions)).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00068
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Electronic Comments
• 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–CHX–2006–38 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
No. SR–CHX–2006–38. 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 the CHX. 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–CHX–2006–38 and should be
submitted on or before March 16, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–3090 Filed 2–22–07; 8:45 am]
BILLING CODE 8010–01–P
10 17
E:\FR\FM\23FEN1.SGM
CFR 200.30–3(a)(12).
23FEN1
]]>Agencies
[Federal Register Volume 72, Number 36 (Friday, February 23, 2007)]
[Notices]
[Pages 8215-8216]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-3090]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55308; File No. SR-CHX-2006-38]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing of a Proposed Rule Change To Extend the Late Trading
Session and To Permit Only the Execution of Cross Orders During That
Session
February 15, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on December 22, 2006, the Chicago Stock Exchange, Inc. (the
``CHX'' or the ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the CHX.
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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its rules (i) To extend its late
trading session until 4 p.m. and (ii) to provide that only cross orders
may be executed during that session. The text of this proposed rule
change is available on the Exchange's Web site at https://www.chx.com/
rules/proposed_rules.htm, at the Exchange's principal office, and in
the Commission's Public Reference Room.
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 CHX included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received regarding the proposal. The text of
these statements may be examined at the places specified in Item IV
below. The CHX 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
In the Exchange's new trading model, the Exchange conducts two
trading
[[Page 8216]]
sessions. The first session--called the regular trading session--is
held from 8:30 a.m. (Central Time) to 3 p.m. (Central Time).\3\ The
second trading session--called the late trading session--is held from
the end of the regular session until 3:30 p.m. (Central Time). The
Exchange's Matching System begins accepting orders for the late trading
session immediately after the closing of the regular trading session in
a security.\4\
---------------------------------------------------------------------------
\3\ The regular trading session for certain ETFs extends to 3:15
p.m. (Central Time).
\4\ See CHX Rules, Article 20, Rule 8(c)(3). All orders
remaining in the Matching System at the end of the regular trading
session are cancelled back to the firms that submitted them; firms
must submit new orders if they seek to trade in the late trading
session.
---------------------------------------------------------------------------
Through this proposal, the Exchange seeks to extend its late
trading session by one-half hour, to 4 p.m. (Central Time), and to
confirm that only cross orders may be executed during the late trading
session. The slightly longer trading session is designed to allow CHX
participants to trade for a full hour after the normal close of the
regular trading session. The cross-orders-only rule simply confirms
that CHX participants may only submit cross orders for execution during
the late trading session.\5\ The Exchange believes that it is
appropriate to limit the late trading session to cross orders for a
variety of reasons--including the fact that doing so is consistent with
the types of orders currently submitted by CHX participants during its
current after-hours trading session.\6\ The Exchange also believes that
this proposal is consistent with late trading sessions operated by
other markets.\7\
---------------------------------------------------------------------------
\5\ In connection with this change to allow only cross orders to
be executed during the late trading session, the Exchange is
proposing a change in its definition of ``NBBO'' to confirm that it
applies only to protected quotes disseminated during regular trading
hours. Without this change, a cross order in the late trading
session technically would be required to be submitted at a price
that is at or better than the NBBO during the late trading session
(if markets are disseminating protected quotes), even though the
trade-through provisions of Rule 611 of Regulation NMS do not apply
during that session. See Article 20, Rule 4(b)(4)(defining a cross
order as one that is equal to or better than the NBBO).
\6\ Under the rules relating to its soon-to-be-retired trading
model, the Exchange's MAX[reg] system is not available for trading
in the post-primary trading session, which begins immediately after
the end of the regular trading session. See Article XX, Rule 37,
Interpretation and Policy .05. The Exchange's floor brokers can
receive and execute orders during the post-primary trading session
and often execute those orders as cross transactions.
\7\ Other markets have instituted trading sessions that occur
after the end of regular trading and that involve the execution of
cross transactions. See, e.g., Boston Stock Exchange Rules, Ch. IIC
(Extended Hours Crossing Session), Section 4 (noting that ``only
matched orders are eligible for execution during the ETS''); New
York Stock Exchange 900 Series Rules ((''Off-Hours Trading Facility
Rules'') including Rules 902 and 907 (describing different types of
coupled orders that can be executed during the NYSE off-hours
sessions)).
---------------------------------------------------------------------------
2. Statutory Basis
Approval of the rule changes proposed in this submission is
consistent with the requirements of the Act and the rules and
regulations thereunder that are applicable to a national securities
exchange, and, in particular, with the requirements of Section 6(b) of
the Act.\8\ In particular, the proposed changes are consistent with
Section 6(b)(5) of the Act,\9\ because they would promote just and
equitable principles of trade, remove impediments to, and perfect the
mechanism of, a free and open market and a national market system, and,
in general, protect investors and the public interest by permitting the
Exchange to operate a late trading session during which only cross
orders are eligible for execution.
---------------------------------------------------------------------------
\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 changes would
impose any burden on competition.
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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period: (i) As the Commission
may designate up to 90 days of such date if it finds such longer period
to be appropriate and publishes its reasons for so finding or (ii) as
to which the self-regulatory organization consents, the Commission
will:
(A) By order approve the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
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-CHX-2006-38 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 No. SR-CHX-2006-38. 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 the CHX. 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-CHX-2006-38 and should be submitted on or before March 16,
2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-3090 Filed 2-22-07; 8:45 am]
BILLING CODE 8010-01-P
