Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing of Amendment Nos. 3 and 4 Relating to Procedures for At-Risk Cross Transactions, 27155-27156 [E7-9176]

Download as PDF pwalker on PROD1PC71 with NOTICES Federal Register / Vol. 72, No. 92 / Monday, May 14, 2007 / Notices futures market may trade security futures products by registering as a national securities exchange. Rule 6a–43 sets forth these registration procedures and directs futures markets to submit a notice registration on Form 1–N. Form 1–N calls for information regarding how the futures market operates, its rules and procedures, its criteria for membership, its subsidiaries and affiliates, and the security futures products it intends to trade. Rule 6a–4 also would require entities that have submitted an initial Form 1–N to file: (1) Amendments to Form 1–N in the event of material changes to the information provided in the initial Form 1–N; (2) periodic updates of certain information provided in the initial Form 1–N; (3) certain information that is provided to the futures market’s members; and (4) a monthly report summarizing the futures market’s trading of security futures products. The information required to be filed with the Commission pursuant to Rule 6a–4 is designed to enable the Commission to carry out its statutorily mandated oversight functions and to ensure that registered and exempt exchanges continue to be in compliance with the Act. The respondents to the collection of information are futures markets. The Commission estimates that the total annual burden for all respondents to provide the amendments and periodic updates under Rule 6a–4 would be 105 hours (15 hours/ respondent per year × seven respondents) and $10,066 ($1438/ response × seven responses/year). The Commission estimates that the total annual burden for the filing of the supplemental information and the monthly reports required under Rule 6a–4 would be 87.5 hours (25 filings/ respondent × seven respondents × 0.5 hours/response). The SEC estimates that the total annual cost for all supplemental filings would be $3675 (25 filings/respondent per year × seven respondents × $21/response). Written comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimate of the burden of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or 3 17 CFR 240.6a–4. VerDate Aug<31>2005 18:21 May 11, 2007 Jkt 211001 27155 other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. Comments should be directed to: R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, C/O Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312 or send an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted within 60 days of this notice. Amendment Nos. 3 and 4, from interested persons. Dated: May 7, 2007. Florence E. Harmon, Deputy Secretary. [FR Doc. E7–9180 Filed 5–11–07; 8:45 am] II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change BILLING CODE 8010–01–P In its filing with the Commission, the Amex 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. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55719; File No. SR–Amex– 2006–17] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing of Amendment Nos. 3 and 4 Relating to Procedures for At-Risk Cross Transactions May 7, 2007. On February 17, 2006, the American Stock Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to adopt a new crossing procedure, the ‘‘atrisk cross,’’ as an alternative to the Exchange’s existing facilitation cross procedure. On November 9, 2006, the Exchange filed Amendment No. 1 to the proposed rule change, and on December 1, 2006, the Exchange filed Amendment No. 2 to the proposed rule change. The proposed rule change, as modified by Amendment Nos. 1 and 2, was published for comment in the Federal Register on January 17, 2007.3 On March 28, 2007, the Exchange filed Amendment No. 3 to the proposed rule change, and on May 3, 2007, the Exchange filed Amendment No. 4 to the proposed rule change. Amendment Nos. 3 and 4 are described in Item II below. The Commission is publishing this notice to solicit comments on the proposed rule change, as amended by 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 55068 (January 9, 2007), 72 FR 2044 (‘‘Notice’’). 2 17 PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Amex proposes to revise the procedures applicable to cross transactions in equity options to provide procedures for at-risk cross transactions. The text of the proposed rule change is available at the Amex, on the Amex’s Web site at http://amex.com, and at the Commission’s Public Reference Room. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to provide an alternative crossing procedure to supplement the existing facilitation cross procedure in Commentary .02 to Amex Rule 950–ANTE(d). In this manner, the Amex would permit ‘‘atrisk’’ cross transactions by member firms. A complete description and statement of purpose of the proposed rule change, as modified by Amendment Nos. 1 and 2, may be found in the notice of filing previously published for comment in the Federal Register.4 In Amendment No. 3, the Exchange made technical and clarifying changes to the proposal 5 and stated that the proposed at-risk cross procedure would not apply to options classes that are part of the Exchange’s options penny pilot 4 See Notice, supra note 3. the Exchange made a clarifying change to the language of Commentary .03(vii) to Amex Rule 950–ANTE(d). The Exchange also confirmed that if a public customer order either on the book or represented in the trading crowd has priority over the at-risk cross, the member firm would be permitted to participate only in those contracts remaining after the public customer’s order has been filled. Further, the Exchange represented that if there is a public customer order on the book or represented in the trading crowd on the same side of the market as, and priced at or better than, the public customer order that is part of the at-risk cross, the public customer order on the book or represented in the trading crowd would have priority. 5 Specifically, E:\FR\FM\14MYN1.SGM 14MYN1 27156 Federal Register / Vol. 72, No. 92 / Monday, May 14, 2007 / Notices program.6 In Amendment No. 4, the Exchange proposes to allow the proposed at-risk crossing procedure to apply to options classes that are part of the options penny pilot program.7 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6 of the Act 8 in general and furthers the objectives of Section 6(b)(5) 9 in particular in that it is designed to perfect the mechanisms of a free and open market and the national market system, protect investors and the public interest, to foster cooperation and coordination with persons engaged in facilitating transactions in securities and promote just and equitable principles of trade. B. Self-Regulatory Organization’s Statement on Burden on Competition The proposed rule change will impose no 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 by the Exchange on this proposal. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the Exchange consents, the Commission will: (A) By order approve such proposed rule change, or (B) Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments pwalker on PROD1PC71 with NOTICES 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. 6 See Securities Exchange Act Release No. 55162 (January 24, 2007), 72 FR 4738 (February 1, 2007) (SR–Amex–2006–106). 7 In addition, Amendment No. 4 makes nonsubstantive rule text changes and shows the text of the final proposal as marked against the current text of Amex Rule 950–ANTE(d). 8 15 U.S.C. 78f(b). 9 15 U.S.C. 78f(b)(5). VerDate Aug<31>2005 18:21 May 11, 2007 Jkt 211001 Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–Amex–2006–17 on the subject line. [Release No. 34–55724; File No. SR–CBOE– 2007–39] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change Regarding Penny Price Improvement May 8, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 • Send paper comments in triplicate notice is hereby given that on April 24, to Nancy M. Morris, Secretary, 2007, the Chicago Board Options Securities and Exchange Commission, Exchange, Incorporated (‘‘CBOE’’ or 100 F Street, NE., Washington, DC ‘‘Exchange’’) filed with the Securities 20549–1090. and Exchange Commission (‘‘Commission’’) the proposed rule All submissions should refer to File change as described in Items I, II, and Number SR–Amex–2006–17. This file III 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 CBOE. The Commission is publishing this Commission process and review your notice to solicit comments on the comments more efficiently, please use only one method. The Commission will proposed rule change from interested post all comments on the Commission’s persons. Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s rules/sro.shtml). Copies of the Statement of the Terms of Substance of the Proposed Rule Change submission, all subsequent amendments, all written statements The CBOE proposes to amend its with respect to the proposed rule Rules regarding penny price change that are filed with the improvement for options not currently Commission, and all written quoted in one-cent increments. The text communications relating to the of the proposed rule change is set forth proposed rule change between the below. Proposed new language is Commission and any person, other than italicized; and proposed deletions are [bracketed]. those that may be withheld from the public in accordance with the * * * * * provisions of 5 U.S.C. 552, will be Rule 6.13B. Penny Price Improvement available for inspection and copying in The Exchange may designate one or the Commission’s Public Reference more options trading on the Hybrid Room. Copies of the filing also will be System for inclusion in the Penny Price available for inspection and copying at the principal office of the Exchange. All Improvement Program. Under this program, the Exchange will allow all comments received will be posted users to provide price improvement without change; the Commission does beyond the Exchange’s disseminated not edit personal identifying quotation (‘‘Penny Pricing’’) for classes information from submissions. You or series that are not already quoted in should submit only information that one-cent increments and for which the you wish to make available publicly. All Simple Auction Liaison system in Rule submissions should refer to File 6.13A is not in effect. Number SR–Amex–2006–17 and should (a) Electronic Penny Pricing. be submitted on or before May 29, 2007. Electronic penny prices may be established as follows: For the Commission, by the Division of (1) Market-Makers. Market-Makers Market Regulation, pursuant to delegated may electronically provide the Exchange authority.10 with indications of interest that are Florence E. Harmon, superior to their own quotations in Deputy Secretary. increments no smaller than one-cent. [FR Doc. E7–9176 Filed 5–11–07; 8:45 am] Such indications shall be firm for all BILLING CODE 8010–01–P interest received by the Exchange. The Exchange shall disseminate such Paper Comments 1 15 10 17 PO 00000 CFR 200.30–3(a)(12). Frm 00084 Fmt 4703 Sfmt 4703 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. E:\FR\FM\14MYN1.SGM 14MYN1

Agencies

[Federal Register Volume 72, Number 92 (Monday, May 14, 2007)]
[Notices]
[Pages 27155-27156]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-9176]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55719; File No. SR-Amex-2006-17]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing of Amendment Nos. 3 and 4 Relating to Procedures for 
At-Risk Cross Transactions

 May 7, 2007.
    On February 17, 2006, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to adopt a new crossing procedure, the ``at-risk 
cross,'' as an alternative to the Exchange's existing facilitation 
cross procedure. On November 9, 2006, the Exchange filed Amendment No. 
1 to the proposed rule change, and on December 1, 2006, the Exchange 
filed Amendment No. 2 to the proposed rule change. The proposed rule 
change, as modified by Amendment Nos. 1 and 2, was published for 
comment in the Federal Register on January 17, 2007.\3\ On March 28, 
2007, the Exchange filed Amendment No. 3 to the proposed rule change, 
and on May 3, 2007, the Exchange filed Amendment No. 4 to the proposed 
rule change. Amendment Nos. 3 and 4 are described in Item II below. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change, as amended by Amendment Nos. 3 and 4, from 
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 55068 (January 9, 
2007), 72 FR 2044 (``Notice'').
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Amex proposes to revise the procedures applicable to cross 
transactions in equity options to provide procedures for at-risk cross 
transactions. The text of the proposed rule change is available at the 
Amex, on the Amex's Web site at http://amex.com, 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 Amex 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.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to provide an alternative crossing procedure 
to supplement the existing facilitation cross procedure in Commentary 
.02 to Amex Rule 950-ANTE(d). In this manner, the Amex would permit 
``at-risk'' cross transactions by member firms. A complete description 
and statement of purpose of the proposed rule change, as modified by 
Amendment Nos. 1 and 2, may be found in the notice of filing previously 
published for comment in the Federal Register.\4\
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    \4\ See Notice, supra note 3.
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    In Amendment No. 3, the Exchange made technical and clarifying 
changes to the proposal \5\ and stated that the proposed at-risk cross 
procedure would not apply to options classes that are part of the 
Exchange's options penny pilot

[[Page 27156]]

program.\6\ In Amendment No. 4, the Exchange proposes to allow the 
proposed at-risk crossing procedure to apply to options classes that 
are part of the options penny pilot program.\7\
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    \5\ Specifically, the Exchange made a clarifying change to the 
language of Commentary .03(vii) to Amex Rule 950-ANTE(d). The 
Exchange also confirmed that if a public customer order either on 
the book or represented in the trading crowd has priority over the 
at-risk cross, the member firm would be permitted to participate 
only in those contracts remaining after the public customer's order 
has been filled. Further, the Exchange represented that if there is 
a public customer order on the book or represented in the trading 
crowd on the same side of the market as, and priced at or better 
than, the public customer order that is part of the at-risk cross, 
the public customer order on the book or represented in the trading 
crowd would have priority.
    \6\ See Securities Exchange Act Release No. 55162 (January 24, 
2007), 72 FR 4738 (February 1, 2007) (SR-Amex-2006-106).
    \7\ In addition, Amendment No. 4 makes non-substantive rule text 
changes and shows the text of the final proposal as marked against 
the current text of Amex Rule 950-ANTE(d).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6 of the Act \8\ in general and furthers the objectives of 
Section 6(b)(5) \9\ in particular in that it is designed to perfect the 
mechanisms of a free and open market and the national market system, 
protect investors and the public interest, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities and promote just and equitable principles of trade.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change will impose no 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 by the Exchange on 
this proposal.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-Amex-2006-17 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-Amex-2006-17. 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 (http://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 the Exchange. 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-Amex-2006-17 and should be submitted on or before May 29, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-9176 Filed 5-11-07; 8:45 am]
BILLING CODE 8010-01-P