Joint Industry Plan; Order Approving Joint Amendment No. 22 to the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage Relating to Response Time for Certain Orders Sent Through the Linkage, 27867-27868 [E7-9437]

Download as PDF pwalker on PROD1PC71 with NOTICES Federal Register / Vol. 72, No. 95 / Thursday, May 17, 2007 / Notices some time be in conflict; and (iii) the Board will monitor events in order to identify the existence of any material irreconcilable conflicts and to determine what action, if any, should be taken in response to any such conflict. 10. All reports received by the Board of potential or existing conflicts, and all Board action with regard to determining the existence of a conflict, notifying Participants of a conflict, and determining whether any proposed action adequately remedies a conflict, will be properly recorded in the minutes of the Board or other appropriate records, and such minutes or other records shall be made available to the Commission upon request. 11. If and to the extent Rule 6e–2 and Rule 6e–3(T) under the 1940 Act are amended, or Rule 6e–3 is adopted, to provide exemptive relief from any provision of the 1940 Act or the rules thereunder with respect to mixed or shared funding on terms and conditions materially different from any exemptions granted in the order requested in the application, then each Insurance Investment Company and/or the Participating Insurance Companies, as appropriate, shall take such steps as may be necessary to comply with Rule 6e–2 and Rule 6e–3(T), as amended, and Rule 6e–3, as adopted, to the extent such rules are applicable. 12. Each Insurance Investment Company will comply with all provisions of the 1940 Act requiring voting by shareholders (which, for these purposes, shall be the persons having a voting interest in the shares of that Insurance Investment Company or Insurance Fund, as the case may be), and in particular each Insurance Investment Company will either provide for annual meetings (except insofar as the Commission may interpret Section 16 of the 1940 Act not to require such meetings) or comply with Section 16(c) of the 1940 Act (although each Insurance Investment Company is not, or will not be, one of the trusts described in Section 16(c) of the 1940 Act) as well as with Section 16(a) of the 1940 Act and, if and when applicable, Section 16(b) of the 1940 Act. Further, each Insurance Investment Company will act in accordance with the Commission’s interpretation of the requirements of Section 16(a) of the 1940 Act with respect to periodic elections of directors (or trustees) and with whatever rules the Commission may promulgate with respect thereto. 13. Each Participant shall at least annually submit to the Board of an Insurance Investment Company such reports, materials or data as the Board may reasonably request so that it may VerDate Aug<31>2005 17:15 May 16, 2007 Jkt 211001 fully carry out the obligations imposed upon it by the conditions contained in the application. Such reports, materials and data shall be submitted more frequently, if deemed appropriate, by the Board. The obligations of the Participants to provide these reports, materials and data to the Board of the Insurance Investment Company when it so reasonably requests, shall be a contractual obligation of the Participants under their agreements governing participation in each Insurance Investment Company. 14. Each Insurance Investment Company will not accept a purchase order from a Qualified Plan if such purchase would make the Qualified Plan an owner of 10% or more of the assets of the Insurance Investment Company unless the trustee for such Plan executes a participation agreement with such Insurance Investment Company which includes the conditions set forth herein to the extent applicable. A trustee for a Qualified Plan will execute an application containing an acknowledgment of this condition at the time of such Plan’s initial purchase of the shares of any Insurance Investment Company or Insurance Fund. Conclusion Applicants submit, for the reasons stated above, that the requested exemptions are appropriate in the public interest and consistent with the protection of investors and the purposes fairly intended by the policy and provisions of the 1940 Act. For the Commission, by the Division of Investment Management, pursuant to delegated authority. Nancy M. Morris, Secretary. [FR Doc. E7–9478 Filed 5–16–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55744; File No. 4–429] Joint Industry Plan; Order Approving Joint Amendment No. 22 to the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage Relating to Response Time for Certain Orders Sent Through the Linkage May 11, 2007. I. Introduction On February 2, 2007, February 15, 2007, February 5, 2007, February 7, 2007, January 30, 2007, and February 13, 2007, the American Stock Exchange LLC (‘‘Amex’’), the Boston Stock PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 27867 Exchange, Inc. (‘‘BSE’’), the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’), the International Securities Exchange, LLC (‘‘ISE’’), the NYSE Arca, Inc. (‘‘NYSE Arca’’), and the Philadelphia Stock Exchange, Inc. (‘‘Phlx’’) (collectively, ‘‘Participants’’), respectively, filed with the Securities and Exchange Commission (‘‘Commission’’) pursuant to Section 11A of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 608 thereunder 2 an amendment (‘‘Joint Amendment No. 22’’) to the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage (‘‘Linkage Plan’’).3 In Joint Amendment No. 22, the Participants propose to reduce (i) the amount of time a member must wait after sending a Linkage Order 4 to a market before the member 5 can trade through that market and (ii) the timeframe within which a Participant must respond to a Linkage Order after receipt of that Order. On March 8, 2007, the Commission summarily put into effect Joint Amendment No. 22 on a temporary basis not to exceed 120 days and solicited comment on Joint Amendment No. 22 from interested persons.6 The Commission received no comments on Joint Amendment No. 22. This order approves Joint Amendment No. 22. II. Description of the Proposed Amendment In Joint Amendment No. 22, the Participants proposed to reduce the amount of time a member must wait after sending a Linkage Order to a market before the member can trade through that market. The Participants proposed to decrease this time period 1 15 U.S.C. 78k–1. CFR 242.608. 3 On July 28, 2000, the Commission approved a national market system plan for the purpose of creating and operating an intermarket options market linkage (‘‘Linkage’’) proposed by Amex, CBOE, and ISE. See Securities Exchange Act Release No. 43086 (July 28, 2000), 65 FR 48023 (August 4, 2000). Subsequently, Phlx, Pacific Exchange, Inc. (n/k/a NYSE Arca), and BSE joined the Linkage Plan. See Securities Exchange Act Release Nos. 43573 (November 16, 2000), 65 FR 70851 (November 28, 2000); 43574 (November 16, 2000), 65 FR 70850 (November 28, 2000); and 49198 (February 5, 2004), 69 FR 7029 (February 12, 2004). 4 See Section 2(16) of the Linkage Plan. For the purposes of this Joint Amendment No. 22 only, references to ‘‘Linkage Orders’’ herein pertain to P/ A Orders and Principal Orders. For definitions of ‘‘P/A Order’’ and ‘‘Principal Order,’’ see Section 2(16)(a) and (b) of the Linkage Plan, respectively. 5 The term ‘‘member,’’ as used herein, includes NYSE Arca OTP Holders and OTP Firms and Boston Options Exchange (‘‘BOX’’) Options Participants. See NYSE Arca Rules 1.1(q) and 1.1(r) and Chapter I, Sec. 1(a)(40) of BOX Rules, respectively. 6 See Securities Exchange Act Release No. 55436, 72 FR 12639 (March 16, 2007). 2 17 E:\FR\FM\17MYN1.SGM 17MYN1 27868 Federal Register / Vol. 72, No. 95 / Thursday, May 17, 2007 / Notices from 20 seconds to 5 seconds. The Participants also proposed to reduce the time frame in which a Participant must respond to a Linkage Order from 15 to 5 seconds after receipt of that Order. SECURITIES AND EXCHANGE COMMISSION III. Discussion and Commission Findings Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change to Trade the streetTRACKS Gold Shares Fund Pursuant to Unlisted Trading Privileges The Commission previously determined, pursuant to Rule 608 under the Act,7 to put into effect summarily on a temporary basis not to exceed 120 days, the changes to the Linkage Plan detailed above in Joint Amendment No. 22.8 After careful consideration of Joint Amendment No. 22, the Commission finds that approving Joint Amendment No. 22 is consistent with the requirements of the Act and the rules and regulations thereunder. Specifically, the Commission finds that Joint Amendment No. 22 is consistent with Section 11A of the Act 9 and Rule 608 thereunder 10 in that it is appropriate in the public interest, for the protection of investors and the maintenance of fair and orderly markets. The Commission believes that reducing the time required by a Participant to respond to a Linkage Order and the amount of time a member sending a Linkage Order must wait before trading through a nonresponsive Participant should facilitate the more timely execution of orders across the options exchanges. IV. Conclusion It is therefore ordered, pursuant to Section 11A of the Act 11 and Rule 608 thereunder,12 that Joint Amendment No. 22 is approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Jill M. Peterson, Assistant Secretary. [FR Doc. E7–9437 Filed 5–16–07; 8:45 am] BILLING CODE 8010–01–P pwalker on PROD1PC71 with NOTICES CFR 242.608. supra note 6. 9 15 U.S.C. 78k–1. 10 17 CFR 242.608. 11 15 U.S.C. 78k–1. 12 17 CFR 242.608. 13 17 CFR 200.30–3(a)(29). 8 See 17:15 May 16, 2007 May 11, 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 May 8, 2007, the Chicago Board Options Exchange, Incorporated (the ‘‘Exchange’’ or ‘‘CBOE’’), filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. This notice and order provides notice of the proposed rule change and approves the proposal on an accelerated basis. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Chicago Board Options Exchange, Incorporated proposes to: (1) trade on its stock trading facility, CBOE Stock Exchange (‘‘CBSX’’), the streetTRACKS Gold Shares (‘‘GLD’’ or ‘‘Shares’’) pursuant to unlisted trading privileges (‘‘UTP’’), and (2) adopt Exchange Rule 54.8, which governs the trading of commodity-based trust shares. The text of the proposed rule change is available on the Exchange’s Web site (http:// www.cboe.org/Legal), 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, 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 III below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. 7 17 VerDate Aug<31>2005 [Release No. 34–55752; File No. SR–CBOE– 2007–44] 1 15 2 17 Jkt 211001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00069 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange is proposing to trade the Shares on CBSX pursuant to UTP. The Shares represent fractional, undivided beneficial ownership interests in the streetTRACKS Gold Trust (‘‘Trust’’). The Trust is an investment trust, the sole assets of which are gold bullion, and from time to time, cash.3 The Commission previously approved the original listing and trading of the Shares on the New York Stock Exchange (‘‘NYSE’’).4 The Exchange deems the Shares to be equity securities, thus rendering trading in the Shares subject to the Exchange’s existing rules governing the trading of equity securities. The trading hours for the Shares on the Exchange would be from 8:15 a.m. until 3:15 p.m. (Central Time). The last-sale price for the Shares is disseminated over the Consolidated Tape. Gold pricing information based on the spot price for a troy ounce of gold from various financial information service providers, such as Reuters and Bloomberg, is available on a 24-hour basis. Complete real-time data for gold futures and options prices traded on the COMEX (a division of the NYMEX) is available by subscription from Reuters and Bloomberg. The NYMEX also provides delayed futures and options information on current and past trading sessions and market news free of charge on its Web site. CBOE, via a link from its own public Web site (http:// www.cboe.com) to the Trust Web site (http:// www.streettracksgoldshares.com), will provide at no charge continuously updated bids and offers indicative of the spot price of gold.5 The Trust Web site also will provide a calculation of the estimated NAV (also known as the Intraday Indicative Value or IIV) of a Share as calculated by multiplying the indicative spot price of gold by the quantity of gold backing 3 Additional information regarding the streetTRACKS Gold Shares is at http:// www.streettracksgoldshares.com. 4 See Securities Exchange Act Release No. 50603 (October 28, 2004), 69 FR 64614 (November 5, 2004) (SR–NYSE–2004–22). 5 The gold spot price at the Trust’s Web site will be provided by The Bullion Desk (http:// www.thebulliondesk.com). The Trust’s Web site will indicate that there are other sources for obtaining the gold spot price. If the Trust’s Web site should cease to provide this indicative spot price from an unaffiliated source (and the intraday indicative value) of the Shares, CBOE would cease to trade the Shares. E:\FR\FM\17MYN1.SGM 17MYN1

Agencies

[Federal Register Volume 72, Number 95 (Thursday, May 17, 2007)]
[Notices]
[Pages 27867-27868]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-9437]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55744; File No. 4-429]


Joint Industry Plan; Order Approving Joint Amendment No. 22 to 
the Plan for the Purpose of Creating and Operating an Intermarket 
Option Linkage Relating to Response Time for Certain Orders Sent 
Through the Linkage

May 11, 2007.

I. Introduction

    On February 2, 2007, February 15, 2007, February 5, 2007, February 
7, 2007, January 30, 2007, and February 13, 2007, the American Stock 
Exchange LLC (``Amex''), the Boston Stock Exchange, Inc. (``BSE''), the 
Chicago Board Options Exchange, Incorporated (``CBOE''), the 
International Securities Exchange, LLC (``ISE''), the NYSE Arca, Inc. 
(``NYSE Arca''), and the Philadelphia Stock Exchange, Inc. (``Phlx'') 
(collectively, ``Participants''), respectively, filed with the 
Securities and Exchange Commission (``Commission'') pursuant to Section 
11A of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 608 
thereunder \2\ an amendment (``Joint Amendment No. 22'') to the Plan 
for the Purpose of Creating and Operating an Intermarket Option Linkage 
(``Linkage Plan'').\3\ In Joint Amendment No. 22, the Participants 
propose to reduce (i) the amount of time a member must wait after 
sending a Linkage Order \4\ to a market before the member \5\ can trade 
through that market and (ii) the timeframe within which a Participant 
must respond to a Linkage Order after receipt of that Order. On March 
8, 2007, the Commission summarily put into effect Joint Amendment No. 
22 on a temporary basis not to exceed 120 days and solicited comment on 
Joint Amendment No. 22 from interested persons.\6\ The Commission 
received no comments on Joint Amendment No. 22. This order approves 
Joint Amendment No. 22.
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    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ On July 28, 2000, the Commission approved a national market 
system plan for the purpose of creating and operating an intermarket 
options market linkage (``Linkage'') proposed by Amex, CBOE, and 
ISE. See Securities Exchange Act Release No. 43086 (July 28, 2000), 
65 FR 48023 (August 4, 2000). Subsequently, Phlx, Pacific Exchange, 
Inc. (n/k/a NYSE Arca), and BSE joined the Linkage Plan. See 
Securities Exchange Act Release Nos. 43573 (November 16, 2000), 65 
FR 70851 (November 28, 2000); 43574 (November 16, 2000), 65 FR 70850 
(November 28, 2000); and 49198 (February 5, 2004), 69 FR 7029 
(February 12, 2004).
    \4\ See Section 2(16) of the Linkage Plan. For the purposes of 
this Joint Amendment No. 22 only, references to ``Linkage Orders'' 
herein pertain to P/A Orders and Principal Orders. For definitions 
of ``P/A Order'' and ``Principal Order,'' see Section 2(16)(a) and 
(b) of the Linkage Plan, respectively.
    \5\ The term ``member,'' as used herein, includes NYSE Arca OTP 
Holders and OTP Firms and Boston Options Exchange (``BOX'') Options 
Participants. See NYSE Arca Rules 1.1(q) and 1.1(r) and Chapter I, 
Sec. 1(a)(40) of BOX Rules, respectively.
    \6\ See Securities Exchange Act Release No. 55436, 72 FR 12639 
(March 16, 2007).
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II. Description of the Proposed Amendment

    In Joint Amendment No. 22, the Participants proposed to reduce the 
amount of time a member must wait after sending a Linkage Order to a 
market before the member can trade through that market. The 
Participants proposed to decrease this time period

[[Page 27868]]

from 20 seconds to 5 seconds. The Participants also proposed to reduce 
the time frame in which a Participant must respond to a Linkage Order 
from 15 to 5 seconds after receipt of that Order.

III. Discussion and Commission Findings

    The Commission previously determined, pursuant to Rule 608 under 
the Act,\7\ to put into effect summarily on a temporary basis not to 
exceed 120 days, the changes to the Linkage Plan detailed above in 
Joint Amendment No. 22.\8\ After careful consideration of Joint 
Amendment No. 22, the Commission finds that approving Joint Amendment 
No. 22 is consistent with the requirements of the Act and the rules and 
regulations thereunder. Specifically, the Commission finds that Joint 
Amendment No. 22 is consistent with Section 11A of the Act \9\ and Rule 
608 thereunder \10\ in that it is appropriate in the public interest, 
for the protection of investors and the maintenance of fair and orderly 
markets. The Commission believes that reducing the time required by a 
Participant to respond to a Linkage Order and the amount of time a 
member sending a Linkage Order must wait before trading through a 
nonresponsive Participant should facilitate the more timely execution 
of orders across the options exchanges.
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    \7\ 17 CFR 242.608.
    \8\ See supra note 6.
    \9\ 15 U.S.C. 78k-1.
    \10\ 17 CFR 242.608.
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IV. Conclusion

    It is therefore ordered, pursuant to Section 11A of the Act \11\ 
and Rule 608 thereunder,\12\ that Joint Amendment No. 22 is approved.
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    \11\ 15 U.S.C. 78k-1.
    \12\ 17 CFR 242.608.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(29).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E7-9437 Filed 5-16-07; 8:45 am]
BILLING CODE 8010-01-P