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 Several Option Classes, 19997-19998 [E7-7554]
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19997
Federal Register / Vol. 72, No. 76 / Friday, April 20, 2007 / Notices
The Commission finds good cause,
pursuant to Section 19(b)(2) of the
Act,22 for approving the proposed rule
change, as modified by Amendment No.
1, prior to the thirtieth day after the date
of publication of notice in the Federal
Register. The Commission notes that the
proposal is consistent with the
Exchange’s listing and trading standards
in CBOE Rules 5.3 and 5.4, and the
Commission has recently approved a
similar proposal, after publishing it for
a full comment period and receiving no
comments.23 Therefore, the Commission
does not believe that the proposed rule
change, as amended, raises novel
regulatory issues. Consequently, the
Commission believes that it is
appropriate to permit investors to
benefit from the flexibility afforded by
trading these products without delay.
Accordingly, the Commission finds
that there is good cause, consistent with
Section 6(b)(5) of the Act,24 to approve
the proposal, as amended, on an
accelerated basis.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,25 that the
proposed rule change (SR–CBOE–2007–
21), as modified by Amendment No. 1,
be, and is hereby approved on an
accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.26
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–7494 Filed 4–19–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55637; File No. SR–CBOE–
2007–35]
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 Several Option
Classes
April 16, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
22 15
U.S.C. 78s(b)(2).
Securities Exchange Act Release No. 55547
(March 28, 2007), 72 FR 16388 (April 4, 2007) (SR–
Amex–2006–110).
24 15 U.S.C. 78s(b)(5).
25 15 U.S.C. 78s(b)(2).
26 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
sroberts on PROD1PC70 with NOTICES
23 See
VerDate Aug<31>2005
18:52 Apr 19, 2007
Jkt 211001
notice is hereby given that on April 10,
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) 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.
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 following option classes as
described below:
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
American Home Mortgage Investment
Corp. (AHM) ..............
Dendreon Corporation
(DNDN) .....................
Imergent Inc. (IIG) ........
Accredited Home Lenders Holding (LEND) ...
Novastar Financial, Inc.
(NFI) ..........................
Neurochem, Inc.
(NRMX) .....................
CBOE proposes to increase the class
quoting limit in several option classes.
The text of the proposed rule change is
available on CBOE’s Web site (https://
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,
CBOE 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 CBOE 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–
3 15
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
5 See Rule 8.3A.01.
4 17
PO 00000
Frm 00122
Fmt 4703
Sfmt 4703
Option class
Current
CQL
New
CQL
25
30
25
25
40
30
35
45
30
40
25
35
The trading volume in these option
classes recently has increased
substantially. Increasing the CQL in
these classes 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
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. 78f(b).
8 15 U.S.C. 78f(b)(5).
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19998
Federal Register / Vol. 72, No. 76 / Friday, April 20, 2007 / Notices
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.
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
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 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–2007–35 and should
be submitted on or before May 11, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Nancy M. Morris,
Secretary.
[FR Doc. E7–7554 Filed 4–19–07; 8:45 am]
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–2007–35 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55625; File No. SR–CHX–
2007–08]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing of Proposed Rule Change To
Expand Its Price Manipulation Rule To
Address Additional Instances of
Improper Behavior
April 12, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
• Send paper comments in triplicate
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
to Nancy M. Morris, Secretary,
notice is hereby given that on March 21,
Securities and Exchange Commission,
2007, the Chicago Stock Exchange, Inc.
100 F Street, NE., Washington, DC
(‘‘CHX’’ or ‘‘Exchange’’) filed with the
20549–1090.
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
All submissions should refer to File
change as described in Items I, II and III
Number SR–CBOE–2007–35. This file
below, which Items have been
number should be included on the
subject line if e-mail is used. To help the substantially prepared by the CHX. The
Commission is publishing this notice to
Commission process and review your
solicit comments on the proposed rule
comments more efficiently, please use
only one method. The Commission will change from interested persons.
post all comments on the Commission’s
sroberts on PROD1PC70 with NOTICES
Paper Comments
11 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 CFR 240.19b–4.
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
10 17
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18:52 Apr 19, 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
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.
BILLING CODE 8010–01–P
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:
9 15
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
rule relating to price manipulation to
address two separate instances of
improper activity: (1) Manipulative
conduct consisting of a single event (in
addition to a series of events, as the
current rule contemplates) and (2)
manipulation based upon the entry of
orders as opposed to that based solely
upon the entry of trades. The text of the
proposed rule change is available at the
Exchange, the Commission’s Public
Reference Room, and https://
www.chx.com/rules/
proposed_rules.htm.
PO 00000
Frm 00123
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Through this proposal, the Exchange
seeks to amend its rule relating to price
manipulation to address two separate
instances of improper activity: (1)
Manipulative conduct consisting of a
single event (in addition to a series of
events, as the current rule contemplates)
and (2) manipulation based upon the
entry of orders as opposed to that based
solely upon the entry of trades.3
As an initial matter, the Exchange
believes that these changes to the rule
would appropriately establish that
improper price manipulation could
occur, in certain circumstances, when
orders are entered at successively higher
or lower prices, not just upon the
execution of a series of trades at
successively higher or lower prices.
Order-based manipulation, sometimes
called spoofing, may be intended to take
advantage of algorithms or electronic
traders who focus on changes to the bid
or offer in trading. In such situations,
3 The proposal would also expand the rule to
address conduct by persons associated with a
participant firm, in addition to the firm’s partners,
directors, officers and registered employees.
E:\FR\FM\20APN1.SGM
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]]>Agencies
[Federal Register Volume 72, Number 76 (Friday, April 20, 2007)]
[Notices]
[Pages 19997-19998]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-7554]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55637; File No. SR-CBOE-2007-35]
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 Several Option
Classes
April 16, 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 April 10, 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)
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.
---------------------------------------------------------------------------
\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 several option
classes. The text of the proposed rule change is available on CBOE's
Web site (https://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, CBOE 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 CBOE 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
following option classes as described below:
---------------------------------------------------------------------------
\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).
------------------------------------------------------------------------
Current
Option class CQL New CQL
------------------------------------------------------------------------
American Home Mortgage Investment Corp. (AHM)....... 25 30
Dendreon Corporation (DNDN)......................... 25 40
Imergent Inc. (IIG)................................. 25 30
Accredited Home Lenders Holding (LEND).............. 35 45
Novastar Financial, Inc. (NFI)...................... 30 40
Neurochem, Inc. (NRMX).............................. 25 35
------------------------------------------------------------------------
The trading volume in these option classes recently has increased
substantially. Increasing the CQL in these classes 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. 78f(b).
\8\ 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
[[Page 19998]]
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-2007-35 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-2007-35. 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 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-2007-35 and should be submitted on or before May
11, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E7-7554 Filed 4-19-07; 8:45 am]
BILLING CODE 8010-01-P
