Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to the Use of a “SOLD” Indicator, 8817-8818 [E7-3290]
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Federal Register / Vol. 72, No. 38 / Tuesday, February 27, 2007 / Notices
The Commission also finds that the
Exchange’s proposal relating to the
Permit Program is consistent with
Section 6(b)(5) of the Act,6 which
requires that the rules of the exchange
be designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, 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; and not be designed to
permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange has imposed various
requirements and limitations in
connection with the issuance of CBSX
Permits. In this regard, the Commission
notes that although the number of
Permits to be issued is limited to a
maximum of 100 Permits, the Exchange
will allocate Permits by lot if demand
for them exceeds 100 Permits.7
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (SR–CBOE–2006–
107) is hereby approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–3373 Filed 2–26–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55319; File No. SR–CHX–
2007–01]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change and
Amendment No. 1 Thereto Relating to
the Use of a ‘‘SOLD’’ Indicator
February 20, 2007.
cprice-sewell on PROD1PC62 with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
develop trading rules. Telephone conversation
between Angelo Evangelou, Assistant General
Counsel, CBOE and David Michehl, Special
Counsel, Commission, Division of Market
Regulation, on February 16, 2007.
6 15 U.S.C. 78f(b)(5).
7 In approving this proposed 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).
8 15 U.S.C. 78s(b)(2).
9 17 CFR 200.30–3(a)(12).
VerDate Aug<31>2005
15:22 Feb 26, 2007
Jkt 211001
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
30, 2007, the Chicago Stock Exchange,
Inc. (‘‘CHX’’ or ‘‘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 substantially prepared by the
Exchange. The CHX has filed this
proposal pursuant to Section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(5)
thereunder,4 which renders it effective
upon filing with the Commission. On
February 20, 2007, the Exchange filed
Amendment No. 1 to the proposed rule
change.5 The Commission is publishing
this notice to solicit comments on the
proposed rule change, as amended, 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 to specify that a ‘‘SOLD’’ indicator
must only be affixed to a trade to the
extent required by applicable
intermarket trade reporting plans.
The text of the proposed rule change
is available on the CHX’s Web site at
https://www.chx.com, the Exchange’s
principal office, and at 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 on the proposed
rule change. 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange’s institutional brokers
may execute transactions in the
Exchange’s Matching System or may
report transactions through the
Exchange’s Brokerplex system.6 Under
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)(5).
5 See Form 19b–4 dated February 20, 2007
(‘‘Amendment No. 1’’).
6 The Exchange’s Brokerplex system currently can
be used by CHX institutional brokers to receive and
2 17
PO 00000
Frm 00140
Fmt 4703
Sfmt 4703
8817
Article 17, Rule 3(e) of the Exchange’s
rules, if institutional brokers use the
Brokerplex system’s trade reporting
functionality, these brokers are required
to use their best efforts to report
transactions within 10 seconds after
execution. A ‘‘SOLD’’ indicator must be
affixed to the trade if this 10-second
window is exceeded.7
The CHX had established this 10second time frame for affixing the
‘‘SOLD’’ indicator as part of its new
trading model rules in the belief that the
CTA Plan would be amended to contain
a similar provision. At this point,
however, the CTA Plan has not been
amended to reflect this shorter time
frame.8
This proposal would change the
Exchange’s rules to specify that the
‘‘SOLD’’ indicator must only be affixed
to a trade to the extent that the indicator
is required by an intermarket trade
reporting plan, such as the CTA Plan.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act 9
in general and furthers the objectives of
Section 6(b)(5) 10 in particular, in that it
is designed to prevent fraudulent and
manipulative acts and practices, 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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
enter orders, manage their orders, route orders to
the Exchange’s Matching System and other
destinations for execution and report executed
trades.
7 A ‘‘SOLD’’ indicator is used, when reporting
trades in Tape A and B securities, to identify trades
that are being reported late (i.e., after some delay
from the time of execution) and out of sequence.
The Consolidated Tape Association Plan (the ‘‘CTA
Plan’’), which governs trade reporting in Tape A
and B securities, provides that a market should
‘‘designate as ‘late’ any last sale price not collected
and reported’’ within 90 seconds after the execution
occurs.
8 The CTA Plan and specifications currently
provide that the indicator must be placed on trades
reported more than 90 seconds after they are
executed.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
E:\FR\FM\27FEN1.SGM
27FEN1
8818
Federal Register / Vol. 72, No. 38 / Tuesday, February 27, 2007 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change
does not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) have the
effect of limiting the access to or
availability of an existing order entry or
trading system of the Exchange, the
foregoing rule change has become
effective immediately pursuant to
Section 19(b)(3)(A)(iii) of the Act 11 and
Rule 19b–4(f)(5) 12 thereunder. At any
time within 60 days of the filing of such
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 the furtherance of the purposes of the
Act.13
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 rulecomments@sec.gov. Please include File
Number SR–CHX–2007–01 on the
subject line.
cprice-sewell on PROD1PC62 with NOTICES
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
Number SR–CHX–2007–01. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
11 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(5).
13 For the purposes of calculating the 60-day
abrogation period, the Commission considers the
proposed rule change to have been filed on
February 20, 2007, when Amendment No. 1 was
filed.
12 17
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15:22 Feb 26, 2007
Jkt 211001
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 also will be
available for inspection and copying at
the principal offices of 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
Number SR–CHX–2007–01 and should
be submitted on or before March 20,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–3290 Filed 2–26–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55323; File No. SR–
NASDAQ–2007–009]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Regarding
Intermarket Sweep Orders
February 21, 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 February
16, 2007, the NASDAQ Stock Market
LLC (‘‘Nasdaq’’) 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 Nasdaq.
Nasdaq has designated the proposed
rule change as constituting a ‘‘non14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00141
Fmt 4703
Sfmt 4703
controversial’’ rule change under
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.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
Nasdaq is proposing to modify Rule
4759 to permit Nasdaq members to
submit Intermarket Sweep Orders
(‘‘ISOs’’) to Nasdaq if they have
simultaneously sent an ISO (or
comparable order) for the full displayed
size of the top of the book of every other
ITS participant displaying a betterpriced quotation. The text of the
proposed rule change is available at
Nasdaq, the Commission’s Public
Reference Room, and https://
nasdaq.complinet.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,
Nasdaq 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. Nasdaq 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
As part of its rollout of its new Single
Book execution system, Nasdaq is
preparing to launch additional features
of its compliance with Regulation NMS
(‘‘Reg. NMS’’). Specifically, Nasdaq is
preparing to accept ISOs. Like other
markets, Nasdaq is proposing to accept
ISOs prior to the Trading Phase Date,
currently March 5, 2007, in order to
ensure a smooth transition to the Single
Book System functionality for
compliance with Reg. NMS.
Like other markets that have received
approval to accept ISOs prior to the
Trading Phase Date,5 Nasdaq seeks to
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 See, e.g., Securities Exchange Act Release No.
55210 (January 31, 2007), 72 FR 5777 (February 7,
2007) (SR–NYSE–2007–08). Nasdaq notes that its
proposed rule change is identical to the New York
Stock Exchange LLC’s rule change.
4 17
E:\FR\FM\27FEN1.SGM
27FEN1
]]>Agencies
[Federal Register Volume 72, Number 38 (Tuesday, February 27, 2007)]
[Notices]
[Pages 8817-8818]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-3290]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55319; File No. SR-CHX-2007-01]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
and Amendment No. 1 Thereto Relating to the Use of a ``SOLD'' Indicator
February 20, 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 30, 2007, the Chicago Stock Exchange, Inc. (``CHX'' or
``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 substantially prepared by the
Exchange. The CHX has filed this proposal pursuant to Section
19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(5) thereunder,\4\ which
renders it effective upon filing with the Commission. On February 20,
2007, the Exchange filed Amendment No. 1 to the proposed rule
change.\5\ The Commission is publishing this notice to solicit comments
on the proposed rule change, as amended, 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)(5).
\5\ See Form 19b-4 dated February 20, 2007 (``Amendment No.
1'').
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its rules to specify that a ``SOLD''
indicator must only be affixed to a trade to the extent required by
applicable intermarket trade reporting plans.
The text of the proposed rule change is available on the CHX's Web
site at https://www.chx.com, the Exchange's principal office, and at 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 on the proposed rule change. 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange's institutional brokers may execute transactions in
the Exchange's Matching System or may report transactions through the
Exchange's Brokerplex system.\6\ Under Article 17, Rule 3(e) of the
Exchange's rules, if institutional brokers use the Brokerplex system's
trade reporting functionality, these brokers are required to use their
best efforts to report transactions within 10 seconds after execution.
A ``SOLD'' indicator must be affixed to the trade if this 10-second
window is exceeded.\7\
---------------------------------------------------------------------------
\6\ The Exchange's Brokerplex system currently can be used by
CHX institutional brokers to receive and enter orders, manage their
orders, route orders to the Exchange's Matching System and other
destinations for execution and report executed trades.
\7\ A ``SOLD'' indicator is used, when reporting trades in Tape
A and B securities, to identify trades that are being reported late
(i.e., after some delay from the time of execution) and out of
sequence. The Consolidated Tape Association Plan (the ``CTA Plan''),
which governs trade reporting in Tape A and B securities, provides
that a market should ``designate as `late' any last sale price not
collected and reported'' within 90 seconds after the execution
occurs.
---------------------------------------------------------------------------
The CHX had established this 10-second time frame for affixing the
``SOLD'' indicator as part of its new trading model rules in the belief
that the CTA Plan would be amended to contain a similar provision. At
this point, however, the CTA Plan has not been amended to reflect this
shorter time frame.\8\
---------------------------------------------------------------------------
\8\ The CTA Plan and specifications currently provide that the
indicator must be placed on trades reported more than 90 seconds
after they are executed.
---------------------------------------------------------------------------
This proposal would change the Exchange's rules to specify that the
``SOLD'' indicator must only be affixed to a trade to the extent that
the indicator is required by an intermarket trade reporting plan, such
as the CTA Plan.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
\9\ in general and furthers the objectives of Section 6(b)(5) \10\ in
particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.
[[Page 8818]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change does not: (1) Significantly affect
the protection of investors or the public interest; (2) impose any
significant burden on competition; and (3) have the effect of limiting
the access to or availability of an existing order entry or trading
system of the Exchange, the foregoing rule change has become effective
immediately pursuant to Section 19(b)(3)(A)(iii) of the Act \11\ and
Rule 19b-4(f)(5) \12\ thereunder. At any time within 60 days of the
filing of such 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 the furtherance of the
purposes of the Act.\13\
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(5).
\13\ For the purposes of calculating the 60-day abrogation
period, the Commission considers the proposed rule change to have
been filed on February 20, 2007, when Amendment No. 1 was filed.
---------------------------------------------------------------------------
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 Number SR-CHX-2007-01 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 Number SR-CHX-2007-01. 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 also will be available for inspection and copying at the
principal offices of 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 Number
SR-CHX-2007-01 and should be submitted on or before March 20, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-3290 Filed 2-26-07; 8:45 am]
BILLING CODE 8010-01-P
