Proposed Collection; Comment Request, 28731-28732 [E7-9809]
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Federal Register / Vol. 72, No. 98 / Tuesday, May 22, 2007 / Notices
information regarding operation of the
system including the method of
operation, access criteria and the types
of securities traded. Alternative trading
systems are also required to supply
updates on Form ATS to the
Commission, describing material
changes to the system, and quarterly
transaction reports on Form ATS–R.
Alternative trading systems are also
required to file cessation of operations
reports on Form ATS.
Alternative trading systems with
significant volume are required to
comply with requirements for fair
access and systems capacity, integrity
and security. Under Rule 301, such
alternative trading systems are required
to establish standards for granting
access to trading on its system. In
addition, upon a decision to deny or
limit an investor’s access to the system,
an alternative trading system is required
to provide notice to the investor of the
denial or limitation and their right to an
appeal to the Commission. Regulation
ATS requires alternative trading systems
to preserve any records made in the
process of complying with the systems’
capacity, integrity and security
requirements. In addition, such
alternative trading systems are required
to notify Commission staff of material
systems outages and significant systems
changes.
The Commission uses the information
provided pursuant to the Rule to
monitor the growth and development of
alternative trading systems to confirm
that investors effecting trades through
the systems are adequately protected,
and that the systems do not impede the
maintenance of fair and orderly
securities markets or otherwise operate
in a manner that is inconsistent with the
federal securities laws. In particular, the
information collected and reported to
the Commission by alternative trading
systems enables the Commission to
evaluate the operation of alternative
trading systems with regard to national
market system goals, and monitor the
competitive effects of these systems to
ascertain whether the regulatory
framework remains appropriate to the
operation of such systems. Without the
information provided on Forms ATS
and ATS–R, the Commission would not
have readily available information on a
regular basis in a format that will allow
it to determine whether such systems
have adequate safeguards.
Respondents consist of alternative
trading systems that choose to register
as broker-dealers and comply with the
requirements of Regulation ATS. The
Commission estimates that there are
currently approximately 65
respondents.
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An estimated 65 respondents will file
an average total of 465 responses per
year, which corresponds to an estimated
annual response burden of 1,982.5
hours. At an average cost per burden
hour of approximately $95.57, the
resultant total related cost of
compliance for these respondents is
$189,458.15 per year (1,982.5 burden
hours multiplied by $95.57 per hour; a
slight discrepancy is due to arithmetic
rounding).
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 collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or 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.
Dated: May 16, 2007.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E7–9808 Filed 5–21–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon written request, copies available
from: Securities and Exchange
Commission, Office of Filings and
Information Services, Washington, DC
20549.
Extension:
Rule 302, SEC File No. 270–453, OMB
Control No. 3235–0510.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
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28731
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Regulation ATS (17 CFR 242.300 et
seq.) under the Securities Exchange Act
of 1934 (15 U.S.C. 78a et seq.) provides
a regulatory structure that directly
addresses issues related to alternative
trading systems’ role in the marketplace.
Regulation ATS allows alternative
trading systems to choose between two
regulatory structures. Alternative
trading systems have the choice
between registering as broker-dealers
and complying with Regulation ATS or
registering as national securities
exchanges. Regulation ATS provides the
regulatory framework for those
alternative trading systems that choose
to be regulated as broker-dealers. Rule
302 of Regulation ATS describes the
recordkeeping requirements for
alternative trading systems that are not
national securities exchanges. Under
Rule 302, alternative trading systems are
required to make a record of subscribers
to the alternative trading system, daily
summaries of trading in the alternative
trading system, and time-sequenced
records of order information in the
alternative trading system.
The information required to be
collected under the Rule should
increase the abilities of the Commission,
state securities regulatory authorities,
and the SROs to ensure that alternative
trading systems are in compliance with
Regulation ATS as well as other rules
and regulations of the Commission and
the SROs. If the information is not
collected or is collected less frequently,
the Commission would be severely
limited in its ability to comply with its
statutory obligations, provide for the
protection of investors and promote the
maintenance of fair and orderly markets.
Respondents consist of alternative
trading systems that choose to register
as broker-dealers and comply with the
requirements of Regulation ATS. The
Commission estimates that there are
currently approximately 65
respondents.
An estimated 65 respondents will
spend approximately 2,340 hours per
year (65 respondents at 36 burden
hours/respondent) to comply with the
recordkeeping requirements of Rule 302.
At an average cost per burden hour of
$86.54, the resultant total related cost of
compliance for these respondents is
$202,504.00 per year (2,340 burden
hours multiplied by $86.54/hour; a
slight discrepancy is due to arithmetic
rounding).
Written comments are invited on (a)
Whether the proposed collection of
information is necessary for the proper
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28732
Federal Register / Vol. 72, No. 98 / Tuesday, May 22, 2007 / Notices
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 collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or 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.
Dated: May 16, 2007.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E7–9809 Filed 5–21–07; 8:45 am]
BILLING CODE 8010–01–P
Sunshine Act Meeting
FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: [To be published].
PLACE:
[Release No. 34–55772; File No. SR–CBOE–
2007–45]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the
Implementation of a ‘‘Holdback Timer’’
May 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 May 8,
2007, the Chicago Board Options
Exchange, Incorporated (‘‘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. The Exchange filed the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 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
SECURITIES AND EXCHANGE
COMMISSION
STATUS:
SECURITIES AND EXCHANGE
COMMISSION
Closed Meeting.
100 F Street, NE., Washington,
DC.
DATE AND TIME OF PREVIOUSLY ANNOUNCED
MEETING: Thursday, May 17, 2007 at
The Exchange proposes to amend
CBOE Rule 6.23A pertaining to the
implementation of a ‘‘holdback timer.’’
The text of the proposed rule change is
available on the Exchange’s Web site
(https://www.cboe.com), at the
Exchange’s Office of the Secretary and
at the Commission’s Public Reference
Room.
CHANGE IN THE MEETING:
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Dated: May 17, 2007.
Nancy M. Morris,
Secretary.
[FR Doc. E7–9779 Filed 5–21–07; 8:45 am]
In its filing with the Commission, the
self-regulatory organization 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 those 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 parts of such
statements.
9:45 a.m.
jlentini on PROD1PC65 with NOTICES
Cancellation of
Meeting.
The Closed Meeting scheduled for
Thursday, May 17, 2007 has been
cancelled.
For further information please contact
the Office of the Secretary at (202) 551–
5400.
BILLING CODE 8010–01–P
1 15
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
CBOE proposes to implement an
additional quote mitigation strategy.
Specifically, CBOE intends to
systematically limit the dissemination
of quotations and other changes to
CBOE’s best bid and offer (e.g., orders
that improve CBOE’s best bid and offer)
according to prescribed time criteria
(‘‘holdback timer’’). For instance, if
there is a change in the price of a
security underlying an option, multiple
market participants may adjust the price
or size of their quotes. Rather than
disseminating each individual change,
the holdback timer permits CBOE to
wait until multiple market participants
have adjusted their quotes and then to
disseminate a new quotation. This
mechanism helps to prevent the
‘‘flickering’’ of quotations. CBOE
proposes to codify the holdback timer in
Rule 6.23A.
CBOE will utilize a holdback timer
that delays quotation updates to OPRA
for no longer than one (1) second, and
will only be used in option classes
trading on the Hybrid Trading System
and Hybrid 2.0 Platform. CBOE may
vary the holdback timer by option class.
If the holdback timer is not being
utilized in an option class trading on the
Hybrid Trading System or Hybrid 2.0
Platform, CBOE will notify its members.
CBOE does not intend to disclose the
length of the holdback timer to its
members or non-members. CBOE notes
that the holdback timer addresses the
dissemination to OPRA of quotation
updates and other changes to CBOE’s
best bid and offer, and not the execution
of orders.
The Commission recently approved
the International Securities Exchange’s
(‘‘ISE’’) and the American Stock
Exchange’s (‘‘Amex’’) usage of a
holdback timer as a quote mitigation
strategy.5 Additionally, and as noted in
the approval orders codifying the ISE’s
and Amex’s usage of a holdback timer,
the Securities Information and Financial
Markets Association strongly endorsed
the usage of a holdback timer as a quote
mitigation strategy.6
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
5 See Securities Exchange Act Release Nos. 55161
(January 24, 2007), 72 FR 4754 (February 1, 2007)
(order approving SR–ISE–2006–62); 55162 (January
24, 2007), 72 FR 4738 (February 1, 2007) (order
approving SR–Amex–2006–106).
6 Id.
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Agencies
[Federal Register Volume 72, Number 98 (Tuesday, May 22, 2007)]
[Notices]
[Pages 28731-28732]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-9809]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon written request, copies available from: Securities and Exchange
Commission, Office of Filings and Information Services, Washington, DC
20549.
Extension:
Rule 302, SEC File No. 270-453, OMB Control No. 3235-0510.
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the collection of
information summarized below. The Commission plans to submit this
existing collection of information to the Office of Management and
Budget for extension and approval.
Regulation ATS (17 CFR 242.300 et seq.) under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) provides a regulatory
structure that directly addresses issues related to alternative trading
systems' role in the marketplace. Regulation ATS allows alternative
trading systems to choose between two regulatory structures.
Alternative trading systems have the choice between registering as
broker-dealers and complying with Regulation ATS or registering as
national securities exchanges. Regulation ATS provides the regulatory
framework for those alternative trading systems that choose to be
regulated as broker-dealers. Rule 302 of Regulation ATS describes the
recordkeeping requirements for alternative trading systems that are not
national securities exchanges. Under Rule 302, alternative trading
systems are required to make a record of subscribers to the alternative
trading system, daily summaries of trading in the alternative trading
system, and time-sequenced records of order information in the
alternative trading system.
The information required to be collected under the Rule should
increase the abilities of the Commission, state securities regulatory
authorities, and the SROs to ensure that alternative trading systems
are in compliance with Regulation ATS as well as other rules and
regulations of the Commission and the SROs. If the information is not
collected or is collected less frequently, the Commission would be
severely limited in its ability to comply with its statutory
obligations, provide for the protection of investors and promote the
maintenance of fair and orderly markets.
Respondents consist of alternative trading systems that choose to
register as broker-dealers and comply with the requirements of
Regulation ATS. The Commission estimates that there are currently
approximately 65 respondents.
An estimated 65 respondents will spend approximately 2,340 hours
per year (65 respondents at 36 burden hours/respondent) to comply with
the recordkeeping requirements of Rule 302. At an average cost per
burden hour of $86.54, the resultant total related cost of compliance
for these respondents is $202,504.00 per year (2,340 burden hours
multiplied by $86.54/hour; a slight discrepancy is due to arithmetic
rounding).
Written comments are invited on (a) Whether the proposed collection
of information is necessary for the proper
[[Page 28732]]
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 collected; and (d) ways to minimize the burden of the
collection of information on respondents, including through the use of
automated collection techniques or 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.
Dated: May 16, 2007.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E7-9809 Filed 5-21-07; 8:45 am]
BILLING CODE 8010-01-P