Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Request Permanent Approval of a Pilot Program Relating to Market-Makers Quoting Remotely, 10795-10796 [E7-4191]
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<![CDATA[
Federal Register / Vol. 72, No. 46 / Friday, March 9, 2007 / Notices
Number SR–Amex–2007–17 and should
be submitted on or before March 30,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.20
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–4190 Filed 3–8–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55381; File No. SR–CBOE–
2007–18]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Request Permanent
Approval of a Pilot Program Relating to
Market-Makers Quoting Remotely
March 1, 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
22, 2007, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) 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 Exchange.
The Exchange filed the proposal as a
‘‘non-controversial’’ proposed rule
change pursuant to Section
19(b)(3)(A)(iii) of the Act 3 and Rule
19b–4(f)(6) thereunder.4 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
jlentini on PROD1PC65 with NOTICES
CBOE proposes to amend CBOE Rule
8.3 to request permanent approval of a
pilot program relating to Market-Makers
quoting away from CBOE’s trading floor.
The text of the proposed rule change is
available on CBOE’s Web site (https://
www.cboe.org/Legal), at the CBOE’s
Office of the Secretary, and at the
Commission’s Public Reference Room.
20 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
VerDate Aug<31>2005
21:24 Mar 08, 2007
Jkt 211001
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
Exchange 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 purpose of the proposed rule
change is to request permanent approval
of an existing Pilot Program that allows
a CBOE Market-Maker to submit
electronic quotations away from CBOE’s
trading floor in his/her appointed
Hybrid Classes and Hybrid 2.0 Classes.
In March 2005, CBOE amended its rules
relating to Market-Maker appointments
and quoting obligations.5 Among other
changes, CBOE amended Rule 8.3 to
provide that a Market-Maker may
submit electronic quotations from a
location outside of his/her appointed
trading station.6 Previously, MarketMakers were only permitted to stream
electronic quotations in their appointed
Hybrid and Hybrid 2.0 classes when
they were physically present in the
trading crowd. In making this change,
CBOE determined to request that it only
be approved on a pilot basis to give
CBOE the ability to evaluate the
effectiveness of allowing Market-Makers
to quote remotely. CBOE extended the
Pilot Program for an additional year last
March 2006.7 The current Pilot Program
is scheduled to expire on March 24,
2007.
CBOE believes that the Pilot Program
has been successful, in that it allows
Market-Makers to choose how they
5 See Securities Exchange Act Release No. 51429
(March 24, 2005), 70 FR 16536 (March 31, 2005)
(approving SR–CBOE–2004–58).
6 Last year, CBOE amended its rules to allow
Market-Makers to create a ‘‘Virtual Trading Crowd’’
appointment, and also modified the language in
Rule 8.3(c) such that it states a Market-Maker can
quote electronically away from CBOE’s trading floor
pursuant to the Pilot Program. (See Securities
Exchange Act Release No. 54182 (July 20, 2006), 71
FR 42692 (July 20, 2006) (approving SR–CBOE–
2006–51).)
7 See Securities Exchange Act Release No. 53410
(March 3, 2006), 71 FR 12747 (March 13, 2006)
(granting immediate effectiveness to SR–CBOE–
2006–24).
PO 00000
Frm 00166
Fmt 4703
Sfmt 4703
10795
would like to participate in CBOE’s
Hybrid Trading System, i.e.,
electronically, in open outcry, or both.
Although not all Market-Makers have
chosen to quote electronically away
from CBOE’s trading floor in their
appointed Hybrid Classes and Hybrid
2.0 Classes, those Market-Makers that
have availed themselves of this Pilot
Program continue to provide liquidity
and increased competition in their
appointed option classes when they
quote remotely. CBOE has not
experienced any negative effects of
allowing Market-Makers to quote from a
location away from CBOE’s trading
floor. Thus, CBOE believes it would be
appropriate and beneficial to
permanently approve the Pilot Program,
and permit Market-Makers to continue
to have the option to quote
electronically away from CBOE’s trading
floor.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations under the
Act applicable to a national securities
exchange and, in particular, the
requirements of Section 6(b) of the Act.8
Specifically, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) of the Act,9 which
requires that the rules of an exchange be
designed to promote just and equitable
principles of trade, to prevent
fraudulent and manipulative acts and,
in general, to protect investors and the
public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE 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 solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(iii) of the Act 10 and
subparagraph (f)(6) of Rule 19b–4 11
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(3)(A)(iii).
11 17 CFR 240.19b–4(f)(6).
9 15
E:\FR\FM\09MRN1.SGM
09MRN1
10796
Federal Register / Vol. 72, No. 46 / Friday, March 9, 2007 / Notices
Section, 100 F Street, NE., Washington,
DC 20549. Copies of such filing also will
be available for inspection and copying
at the principal office of the CBOE. 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–CBOE–2007–18 and should
be submitted on or before March 30,
2007.
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:
BILLING CODE 8010–01–P
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–CBOE–2007–18 on the
subject line.
jlentini on PROD1PC65 with NOTICES
thereunder because it does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; (iii) become operative for
30 days from the date on which it was
filed, or such shorter time as the
Commission may designate; and the
Exchange has given the Commission
written notice of its intention to file the
proposed rule change at least five
business days prior to filing.
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 furtherance of the
purposes of the Act.
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
New York Governing Law
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–4191 Filed 3–8–07; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55390; File No. SR–DTC–
2007–03]
March 2, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
Paper Comments
(‘‘Act’’),1 notice is hereby given that on
• Send paper comments in triplicate
February 8, 2007, The Depository Trust
to Nancy M. Morris, Secretary,
Company (‘‘DTC’’) filed with the
Securities and Exchange Commission,
Securities and Exchange Commission
100 F Street, NE., Washington, DC
(‘‘Commission’’) the proposed rule
20549–1090.
change as described in Items I, II, and
III below, which Items have been
All submissions should refer to File
prepared substantially by DTC. DTC
Number SR–CBOE–2007–18. This file
filed the proposed rule change pursuant
number should be included on the
subject line if e-mail is used. To help the to Section 19(b)(3)(A)(i) of the Act2 and
Rule 19b–4(f)(1)3 thereunder so that the
Commission process and review your
proposal was effective upon filing with
comments more efficiently, please use
only one method. The Commission will the Commission. The Commission is
post all comments on the Commission’s publishing this notice to solicit
comments on the proposed rule change
Internet Web site (https://www.sec.gov/
from interested persons.
rules/sro.shtml). Copies of the
submission, all subsequent
I. Self-Regulatory Organization’s
amendments, all written statements
Statement of the Terms of Substance of
with respect to the proposed rule
the Proposed Rule Change
change that are filed with the
Commission, and all written
DTC is adding a new Section 4 to Rule
communications relating to the
1 (Definitions) to clarify that the Byproposed rule change between the
Laws, Rules, and Procedures are
Commission and any person, other than governed by New York state law.
those that may be withheld from the
public in accordance with the
12 17 CFR 200.30–3(a)(12).
provisions of 5 U.S.C. 552, will be
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(i).
available for inspection and copying in
3 17 CFR 240.19b–4(f)(1).
the Commission’s Public Reference
VerDate Aug<31>2005
21:24 Mar 08, 2007
Jkt 211001
PO 00000
Frm 00167
Fmt 4703
Sfmt 4703
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
DTC 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. DTC 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
DTC is adding a new Section 4 to Rule
1 to clarify that the By-Laws, Rules, and
Procedures are governed by New York
state law. DTC’s participant’s and
pledgee’s agreements currently specify
this choice of law, but DTC wishes to
add such language explicitly to its rules
for transparency purposes and to
harmonize DTC’s rules with those of its
clearing agency affliliates, the Fixed
Income Clearing Corporation and the
National Securities Clearing
Corporation.
DTC believes that the proposed rule
change is consistent with the
requirements of Section 17A of the Act4
and the rules and regulations
thereunder applicable to DTC because
the proposed change is a clarification
that does not adversely affect the
safeguarding of securities and funds in
the custody or control of the clearing
agency or for which it is responsible and
does not adversely affect the respective
rights or obligations of the clearing
agency or its members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
DTC does not believe that the
proposed rule change will have any
impact or impose any burden on
competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
DTC has not solicited or received
written comments relating to the
proposed rule change. DTC will notify
the Commission of any written
comments it receives.
4 15
U.S.C. 78q–1.
E:\FR\FM\09MRN1.SGM
09MRN1
]]>Agencies
[Federal Register Volume 72, Number 46 (Friday, March 9, 2007)]
[Notices]
[Pages 10795-10796]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-4191]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55381; File No. SR-CBOE-2007-18]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Request Permanent Approval of a Pilot Program Relating
to Market-Makers Quoting Remotely
March 1, 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 22, 2007, the Chicago Board Options Exchange, Incorporated
(``Exchange'' or ``CBOE'') 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
Exchange. The Exchange filed the proposal as a ``non-controversial''
proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
\3\ and Rule 19b-4(f)(6) thereunder.\4\ 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)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to amend CBOE Rule 8.3 to request permanent approval
of a pilot program relating to Market-Makers quoting away from CBOE's
trading floor. The text of the proposed rule change is available on
CBOE's Web site (https://www.cboe.org/Legal), at the CBOE's Office of
the Secretary, 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 Exchange 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 purpose of the proposed rule change is to request permanent
approval of an existing Pilot Program that allows a CBOE Market-Maker
to submit electronic quotations away from CBOE's trading floor in his/
her appointed Hybrid Classes and Hybrid 2.0 Classes. In March 2005,
CBOE amended its rules relating to Market-Maker appointments and
quoting obligations.\5\ Among other changes, CBOE amended Rule 8.3 to
provide that a Market-Maker may submit electronic quotations from a
location outside of his/her appointed trading station.\6\ Previously,
Market-Makers were only permitted to stream electronic quotations in
their appointed Hybrid and Hybrid 2.0 classes when they were physically
present in the trading crowd. In making this change, CBOE determined to
request that it only be approved on a pilot basis to give CBOE the
ability to evaluate the effectiveness of allowing Market-Makers to
quote remotely. CBOE extended the Pilot Program for an additional year
last March 2006.\7\ The current Pilot Program is scheduled to expire on
March 24, 2007.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 51429 (March 24,
2005), 70 FR 16536 (March 31, 2005) (approving SR-CBOE-2004-58).
\6\ Last year, CBOE amended its rules to allow Market-Makers to
create a ``Virtual Trading Crowd'' appointment, and also modified
the language in Rule 8.3(c) such that it states a Market-Maker can
quote electronically away from CBOE's trading floor pursuant to the
Pilot Program. (See Securities Exchange Act Release No. 54182 (July
20, 2006), 71 FR 42692 (July 20, 2006) (approving SR-CBOE-2006-51).)
\7\ See Securities Exchange Act Release No. 53410 (March 3,
2006), 71 FR 12747 (March 13, 2006) (granting immediate
effectiveness to SR-CBOE-2006-24).
---------------------------------------------------------------------------
CBOE believes that the Pilot Program has been successful, in that
it allows Market-Makers to choose how they would like to participate in
CBOE's Hybrid Trading System, i.e., electronically, in open outcry, or
both. Although not all Market-Makers have chosen to quote
electronically away from CBOE's trading floor in their appointed Hybrid
Classes and Hybrid 2.0 Classes, those Market-Makers that have availed
themselves of this Pilot Program continue to provide liquidity and
increased competition in their appointed option classes when they quote
remotely. CBOE has not experienced any negative effects of allowing
Market-Makers to quote from a location away from CBOE's trading floor.
Thus, CBOE believes it would be appropriate and beneficial to
permanently approve the Pilot Program, and permit Market-Makers to
continue to have the option to quote electronically away from CBOE's
trading floor.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations under the Act applicable to a
national securities exchange and, in particular, the requirements of
Section 6(b) of the Act.\8\ Specifically, the Exchange believes the
proposed rule change is consistent with the Section 6(b)(5) of the
Act,\9\ which requires that the rules of an exchange be designed to
promote just and equitable principles of trade, to prevent fraudulent
and manipulative acts and, in general, 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
CBOE 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 solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(iii) of the Act \10\ and subparagraph (f)(6) of Rule 19b-4
\11\
[[Page 10796]]
thereunder because it does not: (i) Significantly affect the protection
of investors or the public interest; (ii) impose any significant burden
on competition; (iii) become operative for 30 days from the date on
which it was filed, or such shorter time as the Commission may
designate; and the Exchange has given the Commission written notice of
its intention to file the proposed rule change at least five business
days prior to filing.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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 furtherance of the purposes 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 Number SR-CBOE-2007-18 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 Number SR-CBOE-2007-18. 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 Section, 100 F Street,
NE., Washington, DC 20549. Copies of such filing also will be available
for inspection and copying at the principal office of the CBOE. 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-CBOE-2007-18 and should be
submitted on or before March 30, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-4191 Filed 3-8-07; 8:45 am]
BILLING CODE 8010-01-P
