Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Increase the Class Quoting Limit in the Option Class Accredited Home Lenders Holding (LEND), 14837-14839 [E7-5815]
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14837
Federal Register / Vol. 72, No. 60 / Thursday, March 29, 2007 / Notices
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[FR Doc. E7–5778 Filed 3–28–07; 8:45 am]
BILLING CODE 6325–39–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55514; File No. SR–CBOE–
2007–29]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Increase the Class
Quoting Limit in the Option Class
Accredited Home Lenders Holding
(LEND)
March 22, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
E:\FR\FM\29MRN1.SGM
29MRN1
14838
Federal Register / Vol. 72, No. 60 / Thursday, March 29, 2007 / Notices
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 15,
2007, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ 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 CBOE.
The Exchange has designated this
proposal as one constituting a stated
policy, practice, or interpretation with
respect to the meaning, administration,
or enforcement of an existing rule under
Section 19(b)(3)(A)(i) of the Act,3 and
Rule 19b–4(f)(1) 4 thereunder, 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 Substance of
the Proposed Rule Change
CBOE proposes to increase the class
quoting limit in the option class
Accredited Home Lenders Holding
(LEND). The text of the proposed rule
change is available on CBOE’s Web site
(www.cboe.com), 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
jlentini on PROD1PC65 with NOTICES
1. Purpose
CBOE Rule 8.3A, Maximum Number
of Market Participants Quoting
Electronically per Product, establishes
class quoting limits (‘‘CQLs’’) for each
class traded on the Hybrid Trading
System.5 A CQL is the maximum
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(i).
4 17 CFR 240.19b–4(f)(1).
5 See Rule 8.3A.01.
2 17
VerDate Aug<31>2005
17:20 Mar 28, 2007
Jkt 211001
number of quoters that may quote
electronically in a given product and the
current levels are established from 25–
40, depending on the trading activity of
the particular product.
Rule 8.3A, Interpretation .01(c)
provides a procedure by which the
President of the Exchange may increase
the CQL for a particular product. In this
regard, the President of the Exchange
may increase the CQL in exceptional
circumstances, which are defined in the
rule as ‘‘* * * substantial trading
volume, whether actual or expected.’’ 6
The effect of an increase in the CQL is
procompetitive in that it increases the
number of market participants that may
quote electronically in a product. The
purpose of this filing is to increase the
CQL in the option class LEND from its
current limit of 25 to 35.
The trading volume in LEND has
increased substantially recently.
Increasing the CQL in LEND options
will enable the Exchange to enhance the
liquidity offered, thereby offering
deeper and more liquid markets.
2. Statutory Basis
Accordingly, CBOE 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.7 Specifically, the Exchange
believes the proposed rule change is
consistent with the Section 6(b)(5) 8
requirements 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
The Exchange neither received nor
solicited written comments on the
proposal.
6 ‘‘Any actions taken by the President of the
Exchange pursuant to this paragraph will be
submitted to the SEC in a rule filing pursuant to
Section 19(b)(3)(A) of the Exchange Act.’’ Rule
8.3A.01(c).
7 15 U.S.C. 78(f)(b).
8 15 U.S.C. 78(f)(b)(5).
PO 00000
Frm 00072
Fmt 4703
Sfmt 4703
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
will take effect upon filing with the
Commission pursuant to Section
19(b)(3)(A)(i) of the Act 9 and Rule 19b–
4(f)(1) thereunder,10 because it
constitutes a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule.
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
Number SR–CBOE–2007–29 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–2007–29. 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
9 15
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
10 17
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Federal Register / Vol. 72, No. 60 / Thursday, March 29, 2007 / Notices
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 20549–9303. 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–2007–29 and should
be submitted on or before April 19,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–5815 Filed 3–28–07; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing of Proposed Rule Change
Relating to Membership, Definitions,
and the Electronic Pool Notification
Service
March 22, 2007.
jlentini on PROD1PC65 with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
December 13, 2006, the Fixed Income
Clearing Corporation (‘‘FICC’’) 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 substantially by
FICC. 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 purpose of this filing is to
restructure FICC’s Government
Securities Division’s (‘‘GSD’’)
membership standards and membership
requirements by conforming them to
current practice and to harmonize them
with similar rules of FICC’s clearing
agency affiliate, the National Securities
Clearing Corporation (‘‘NSCC’’). In
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
VerDate Aug<31>2005
17:20 Mar 28, 2007
Jkt 211001
In its filing with the Commission,
FICC 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. FICC has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
1. Membership Rules
[Release No. 34–55515; File No. SR–FICC–
2006–19]
1 15
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8010–01–P
11 17
addition, this rule filing would update
various definitions and make technical
changes to GSD and to FICC’s MortgageBacked Securities Divison’s (‘‘MBSD’’)
Electronic Pool Notification (‘‘EPN’’)
rules.
FICC proposes to revise its rules
concerning membership types, the
membership application process, and
the ongoing requirements of GSD
members into a format that FICC
believes will make such rules easier to
locate and understand by applicants and
members. To accomplish this, FICC
would amend current Rule 2 (proposed
to be titled ‘‘Members’’), move much of
the content of current Rule 2 into a new
Rule 2A (‘‘Initial Membership
Requirements’’), and revise Rule 3
(proposed to be titled ‘‘Ongoing
Membership Requirements’’). Other
rules and provisions would be modified
to make technical corrections where
necessary and to be harmonized with
analogous NSCC rules.
a. Membership Types: FICC’s current
Rule 2 (‘‘Comparison-Only and Netting
Members’’) sets forth the types of GSD
members, eligibility requirements,
application procedures, and member
reporting requirements. FICC proposes
to revise Rule 2 to establish each GSD
membership type: Comparison-Only
Members, Netting Members, Sponsoring
Members, Sponsored Members, and
Funds-Only Settling Bank Members.
Substantially all other provisions
contained in the current Rule 2 will be
moved to either proposed Rule 2A or
proposed Rule 3.
One exception to this is that FICC is
proposing to delete current Rule 2,
Section 4 (‘‘Financial Reports by Netting
Applicants). FICC states that the
rationale for such proposed deletion is
that FICC already advises during the
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
14839
application process applicants of the
required financial reports depending on
the category of membership applied for
and the applicant entity type. In
addition, FICC would set forth in
proposed Rule 3 the financial reports
that must be submitted by members to
FICC on an ongoing basis.
FICC is also proposing to delete
Section 1(f) of Rule 2, which provides
that applicants that have been approved
for membership must execute and
deliver to FICC a membership
agreement. This provision is redundant
with existing Rule 2, Section 3, which
would appear in proposed Rule 2A,
Section 7.
b. Consolidation of Membership
Standards and Requirements: The
membership qualifications, financial
standards, and operational requirements
for each member type are currently set
forth in Rule 2 (‘‘Comparison-Only and
Netting Members’’), Rule 3 (‘‘Financial
Responsibility, Operational Capability
and Other Membership Standards of
Comparison-Only and Netting
Members’’), and Rule 4 (‘‘Clearing Fund,
Watch List and Loss Allocation’’). To
consolidate this information, FICC
proposes to create a new Rule 2A
(‘‘Initial Membership Requirements’’)
that would establish the initial
membership eligibility requirements for
all member types and would set forth
the process of membership application
and evaluation. In addition, FICC
proposes to restructure Rule 3
(‘‘Ongoing Membership Requirements’’)
to contain all current GSD rule
provisions regarding the continuing
requirements of members.
The restructuring would encompass
three substantive changes:
(i) Immediate Placement on the Watch
List: FICC proposes to delete current
Rule 3, Section 1(d)(iii) that
automatically disqualifies an applicant
from becoming member if the applicant
is subject to any action or condition, the
existence of which would require the
applicant to be placed on FICC’s Watch
List if it were already a member. FICC
believes that eliminating such provision
will not diminish FICC’s ability to deny
membership to an unworthy applicant
because FICC would still retain under
other sections of its rules the discretion
to deny membership based on the
applicant’s underlying financial,
operational, or character issues.
Moreover, FICC’s credit risk matrix
enables FICC to place such applicant
directly on FICC’s watch list for closer
monitoring.
(ii) Additional Reporting
Requirements: FICC proposes to add
new language to proposed Rule 3,
Section 2 (‘‘Reports by Netting
E:\FR\FM\29MRN1.SGM
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Agencies
[Federal Register Volume 72, Number 60 (Thursday, March 29, 2007)]
[Notices]
[Pages 14837-14839]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-5815]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55514; File No. SR-CBOE-2007-29]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Increase the Class Quoting Limit in the Option Class
Accredited Home Lenders Holding (LEND)
March 22, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 14838]]
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 15, 2007, the Chicago Board Options Exchange, Incorporated
(``CBOE'' 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 CBOE. The Exchange has designated this proposal as one
constituting a stated policy, practice, or interpretation with respect
to the meaning, administration, or enforcement of an existing rule
under Section 19(b)(3)(A)(i) of the Act,\3\ and Rule 19b-4(f)(1) \4\
thereunder, 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(i).
\4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to increase the class quoting limit in the option
class Accredited Home Lenders Holding (LEND). The text of the proposed
rule change is available on CBOE's Web site (www.cboe.com), 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
CBOE Rule 8.3A, Maximum Number of Market Participants Quoting
Electronically per Product, establishes class quoting limits (``CQLs'')
for each class traded on the Hybrid Trading System.\5\ A CQL is the
maximum number of quoters that may quote electronically in a given
product and the current levels are established from 25-40, depending on
the trading activity of the particular product.
---------------------------------------------------------------------------
\5\ See Rule 8.3A.01.
---------------------------------------------------------------------------
Rule 8.3A, Interpretation .01(c) provides a procedure by which the
President of the Exchange may increase the CQL for a particular
product. In this regard, the President of the Exchange may increase the
CQL in exceptional circumstances, which are defined in the rule as ``*
* * substantial trading volume, whether actual or expected.'' \6\ The
effect of an increase in the CQL is procompetitive in that it increases
the number of market participants that may quote electronically in a
product. The purpose of this filing is to increase the CQL in the
option class LEND from its current limit of 25 to 35.
---------------------------------------------------------------------------
\6\ ``Any actions taken by the President of the Exchange
pursuant to this paragraph will be submitted to the SEC in a rule
filing pursuant to Section 19(b)(3)(A) of the Exchange Act.'' Rule
8.3A.01(c).
---------------------------------------------------------------------------
The trading volume in LEND has increased substantially recently.
Increasing the CQL in LEND options will enable the Exchange to enhance
the liquidity offered, thereby offering deeper and more liquid markets.
2. Statutory Basis
Accordingly, CBOE 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.\7\ Specifically, the Exchange believes the
proposed rule change is consistent with the Section 6(b)(5) \8\
requirements 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78(f)(b).
\8\ 15 U.S.C. 78(f)(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
The Exchange neither received nor solicited written comments on the
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change will take effect upon filing
with the Commission pursuant to Section 19(b)(3)(A)(i) of the Act \9\
and Rule 19b-4(f)(1) thereunder,\10\ because it constitutes a stated
policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(i).
\10\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
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 rule-comments@sec.gov. Please include
File Number SR-CBOE-2007-29 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-2007-29. 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
[[Page 14839]]
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 20549-9303. 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-2007-29 and should be submitted on or before April 19, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-5815 Filed 3-28-07; 8:45 am]
BILLING CODE 8010-01-P