Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Amending Its Schedule of Fees and Charges in Order To Extend a Pilot Program for Option Strategy Executions for a Period of One Year, 11418-11419 [E7-4460]
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11418
Federal Register / Vol. 72, No. 48 / Tuesday, March 13, 2007 / Notices
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
Written comments were neither
solicited nor received.
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 11 and Rule 19b–
4(f)(6) thereunder.12
NASD has requested that the
Commission waive the 30-day operative
delay in this case. The Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest because such waiver will allow
the amendments to Rules 4632(f) and
6130(e) to be implemented on the
Regulation NMS Trading Phase Date.
For this reason, the Commission
designates the proposed rule change to
be operative upon filing with the
Commission.13
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:
cprice-sewell on PROD1PC66 with NOTICES
11 15
U.S.C. 78s(b)(3)(A).
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. NASD has satisfied the five-day prefiling requirement.
13 For the purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Aug<31>2005
14:58 Mar 12, 2007
Jkt 211001
Electronic Comment
• 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–NASD–2007–020 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–NASD–2007–020. 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 the filing also will be
available for inspection and copying at
the principal office of NASD. 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-NASD–2007–020 and
should be submitted on or before April
3, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–4508 Filed 3–12–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55414; File No. SR–
NYSEArca–2007–25]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1
Thereto Amending Its Schedule of
Fees and Charges in Order To Extend
a Pilot Program for Option Strategy
Executions for a Period of One Year
March 7, 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
28, 2007, NYSE Arca, Inc. (‘‘NYSE
Arca’’ 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.
On March 5, 2007, the Exchange
submitted Amendment No. 1 to the
proposed rule change. NYSE Arca has
designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by a selfregulatory organization pursuant to
Section 19(b)(3)(A)(ii) of the Act 3 and
Rule 19b–4(f)(2) 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, as amended, from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NYSE Arca is proposing to amend its
Schedule of Fees and Charges in order
to extend the pilot program that applies
to Option Strategy Executions until
March 1, 2008.
The text of the proposed rule change
is available on the Exchange’s Web site
(https://www.nyse.com/regulation/rules/
1160561784294.html), at 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
Exchange included statements
concerning the purpose of, and basis for,
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
2 17
14 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00099
Fmt 4703
Sfmt 4703
E:\FR\FM\13MRN1.SGM
13MRN1
Federal Register / Vol. 72, No. 48 / Tuesday, March 13, 2007 / Notices
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
cprice-sewell on PROD1PC66 with NOTICES
The purpose of this proposed rule
change is to extend the Pilot Program
that applies to Option Strategy
Executions (the ‘‘Pilot Program’’) until
March 1, 2008. The transactions
included as part of the Pilot Program
include reversals and conversions,5
dividend spreads,6 box spreads,7 short
stock interest spreads,8 and merger
spreads.9 Because the referenced
Options Strategy Transactions are
generally executed by professionals
whose profit margins are generally
narrow, the Pilot Program caps the
transaction fees associated with such
executions at $750 per strategy
execution that are executed on the same
trading day in the same option class. In
addition, there is also a monthly cap of
$25,000 per initiating firm for all
strategy executions. The Exchange
believes that by keeping fees low, the
Exchange is able to attract liquidity by
accommodating these transactions.
Extending the Pilot Program until March
1, 2008 will allow the Exchange to keep
these fees low and thus continue to
attract liquidity.
5 Reversals and conversions are transactions that
employ calls, puts, and the underlying stock to lock
in a nearly risk free profit. Reversals are established
by combining a short stock position with a short put
and a long call position that shares the same strike
and expiration. Conversions employ long positions
in the underlying stock that accompany long puts
and short calls sharing the same strike and
expiration.
6 Dividend spreads are trades involving deep in
the money options that exploit pricing differences
arising around the time a stock goes ex-dividend.
7 A box spread is a strategy that synthesizes long
and short stock positions to create a profit.
Specifically, a long call and short put at one strike
is combined with a short call and long put at a
different strike to create synthetic long and
synthetic short stock positions, respectively.
8 A short stock interest spread is a spread that
uses two deep in the money put options of the same
class followed by the exercise of the resulting long
position in order to establish a short stock interest
arbitrage position.
9 A merger spread is a transaction executed
pursuant to a strategy involving the simultaneous
purchase and sale of options of the same class and
expiration date, but with different strike prices
followed by the exercise of the resulting long option
position.
VerDate Aug<31>2005
14:58 Mar 12, 2007
Jkt 211001
OTP Holders and OTP Firms who
wish to benefit from the fee cap will be
required to submit to the Exchange
forms with supporting documentation
(e.g., clearing firm transaction data) to
qualify for the cap.
2. Statutory Basis
The proposal is consistent with
Section 6(b) of the Act,10 in general, and
Section 6(b)(4),11 in particular, in that it
provides for the equitable allocation of
dues, fees and other charges among its
members.
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 written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective upon filing
pursuant to Section 19(b)(3)(A)(ii) of the
Act 12 and Rule 19b–4(f)(2) thereunder13
because it establishes or changes a due,
fee, or other charge imposed by the
Exchange. 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
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 rulecomments@sec.gov. Please include File
10 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
12 15 U.S.C. 78s(b)(3)(A)(ii).
13 17 CFR 19b–4(f)(2).
11 15
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
11419
No. SR–NYSEArca–2007–25 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–NYSEArca–2007–25. 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 Commissions
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 the filing also will be
available for inspection and copying at
the principal office of NYSE Arca. 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–NYSEArca–2007–25 and
should be submitted on or before April
3, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–4460 Filed 3–12–07; 8:45 am]
BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration # 10821 and # 10822]
Alabama Disaster Number AL–00007
U.S. Small Business
Administration.
ACTION: Amendment 1.
AGENCY:
SUMMARY: This is an amendment of the
Presidential declaration of a major
disaster for the State of Alabama
(FEMA–1687–DR), dated 3/3/2007.
14 17
E:\FR\FM\13MRN1.SGM
CFR 200.30–3(a)(12).
13MRN1
]]>Agencies
[Federal Register Volume 72, Number 48 (Tuesday, March 13, 2007)]
[Notices]
[Pages 11418-11419]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-4460]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55414; File No. SR-NYSEArca-2007-25]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1
Thereto Amending Its Schedule of Fees and Charges in Order To Extend a
Pilot Program for Option Strategy Executions for a Period of One Year
March 7, 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 28, 2007, NYSE Arca, Inc. (``NYSE Arca'' 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. On March 5,
2007, the Exchange submitted Amendment No. 1 to the proposed rule
change. NYSE Arca has designated this proposal as one establishing or
changing a due, fee, or other charge imposed by a self-regulatory
organization pursuant to Section 19(b)(3)(A)(ii) of the Act \3\ and
Rule 19b-4(f)(2) 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, 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)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NYSE Arca is proposing to amend its Schedule of Fees and Charges in
order to extend the pilot program that applies to Option Strategy
Executions until March 1, 2008.
The text of the proposed rule change is available on the Exchange's
Web site (https://www.nyse.com/regulation/rules/1160561784294.html), at
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 Exchange included statements
concerning the purpose of, and basis for,
[[Page 11419]]
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 this proposed rule change is to extend the Pilot
Program that applies to Option Strategy Executions (the ``Pilot
Program'') until March 1, 2008. The transactions included as part of
the Pilot Program include reversals and conversions,\5\ dividend
spreads,\6\ box spreads,\7\ short stock interest spreads,\8\ and merger
spreads.\9\ Because the referenced Options Strategy Transactions are
generally executed by professionals whose profit margins are generally
narrow, the Pilot Program caps the transaction fees associated with
such executions at $750 per strategy execution that are executed on the
same trading day in the same option class. In addition, there is also a
monthly cap of $25,000 per initiating firm for all strategy executions.
The Exchange believes that by keeping fees low, the Exchange is able to
attract liquidity by accommodating these transactions. Extending the
Pilot Program until March 1, 2008 will allow the Exchange to keep these
fees low and thus continue to attract liquidity.
---------------------------------------------------------------------------
\5\ Reversals and conversions are transactions that employ
calls, puts, and the underlying stock to lock in a nearly risk free
profit. Reversals are established by combining a short stock
position with a short put and a long call position that shares the
same strike and expiration. Conversions employ long positions in the
underlying stock that accompany long puts and short calls sharing
the same strike and expiration.
\6\ Dividend spreads are trades involving deep in the money
options that exploit pricing differences arising around the time a
stock goes ex-dividend.
\7\ A box spread is a strategy that synthesizes long and short
stock positions to create a profit. Specifically, a long call and
short put at one strike is combined with a short call and long put
at a different strike to create synthetic long and synthetic short
stock positions, respectively.
\8\ A short stock interest spread is a spread that uses two deep
in the money put options of the same class followed by the exercise
of the resulting long position in order to establish a short stock
interest arbitrage position.
\9\ A merger spread is a transaction executed pursuant to a
strategy involving the simultaneous purchase and sale of options of
the same class and expiration date, but with different strike prices
followed by the exercise of the resulting long option position.
---------------------------------------------------------------------------
OTP Holders and OTP Firms who wish to benefit from the fee cap will
be required to submit to the Exchange forms with supporting
documentation (e.g., clearing firm transaction data) to qualify for the
cap.
2. Statutory Basis
The proposal is consistent with Section 6(b) of the Act,\10\ in
general, and Section 6(b)(4),\11\ in particular, in that it provides
for the equitable allocation of dues, fees and other charges among its
members.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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 written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A)(ii) of the Act \12\ and Rule 19b-
4(f)(2) thereunder\13\ because it establishes or changes a due, fee, or
other charge imposed by the Exchange. 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 purposes of
the Act.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A)(ii).
\13\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------
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-NYSEArca-2007-25 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-NYSEArca-2007-25. 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 Commissions 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 the
filing also will be available for inspection and copying at the
principal office of NYSE Arca. 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-NYSEArca-2007-25 and should be submitted on or before
April 3, 2007.
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-4460 Filed 3-12-07; 8:45 am]
BILLING CODE 8010-01-P
