Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Order Approving Proposed Rule Change To Expand Its Price Manipulation Rule To Address Additional Instances of Improper Behavior, 30647-30648 [E7-10554]

Download as PDF Federal Register / Vol. 72, No. 105 / Friday, June 1, 2007 / Notices Filing Dates: The application was filed on February 28, 2007, and amended on April 18, 2007. Applicant’s Address: C/O Tactical Allocation Services, LLC, 4909 East Pearl Circle, Suite 300, Boulder, CO 80301. Cohen & Steers Quality REIT Preferred Fund, Inc. [File No. 811–21086] Cohen & Steers Dividend Advantage Realty Fund, Inc. [File No. 811–21203] Cohen & Steers Total Return Realty Fund II, Inc. [File No. 811–21310] Cohen & Steers Dividend All Star Fund, Inc. [File No. 811–21573] Summary: Each applicant, a closedend investment company, seeks an order declaring that it has ceased to be an investment company. Applicants have never made a public offering of their securities and do not propose to make a public offering or engage in business of any kind. Filing Dates: The applications were filed on March 21, 2006, and amended on May 16, 2007. Applicant’s Address: 280 Park Ave., 10th Floor, New York, NY 10017. For the Commission, by the Division of Investment Management, pursuant to delegated authority. Florence E. Harmon, Deputy Secretary. [FR Doc. E7–10561 Filed 5–31–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55814; File No. SR–CBOE– 2007–27] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Approving a Proposed Rule Change and Amendment No. 1 Thereto Relating to Class Quoting Limits hsrobinson on PROD1PC76 with NOTICES May 25, 2007. I. Introduction On March 5, 2007, the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ 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 provide for termination of a MarketMaker or Remote Market-Maker (‘‘RMM’’) appointment in an option class traded on Hybrid if the Market1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Aug<31>2005 18:10 May 31, 2007 Jkt 211001 Maker or RMM has not submitted any electronic quotations in that option class during the preceding 30 days. The Exchange submitted Amendment No. 1 to the proposed rule change on April 18, 2007. The proposed rule change, as amended, was published for comment in the Federal Register on April 25, 2007.3 The Commission received no comments on the proposal. This order approves the proposal, as amended. II. Description of the Proposal CBOE Rule 8.3A establishes the upper limit, i.e., Class Quoting Limit (‘‘CQL’’), on the number of members that may quote electronically in a particular product traded on CBOE’s Hybrid Trading System and Hybrid 2.0 Platform (collectively ‘‘Hybrid’’).4 The purpose of this rule change is to amend CBOE Rule 8.3A to adopt an interpretation which is applicable only in those option classes traded on Hybrid in which the CQL for the option class is full and there is a waiting list of member(s) requesting the ability to quote electronically in the option class. Specifically, in the event a MarketMaker or RMM who holds an appointment in an option class traded on Hybrid has not submitted any electronic quotations in that option class during the preceding 30 days (calculated on a rolling basis), then the Market-Maker or RMM’s appointment in that option class will be terminated effective immediately. CBOE will notify the Market-Maker or RMM prior to terminating its appointment, and the rule provides that CBOE can make exceptions to this Interpretation and Policy in unusual circumstances. The Market-Maker or RMM can subsequently request an appointment in the option class. If there is a wait-list of members requesting the ability to quote electronically, then the Market-Maker or RMM will be placed on the wait-list for the option class. CBOE intends to implement the proposal upon approval by the Commission. III. Discussion After careful review, the Commission finds that the proposed rule change, as amended, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange 5 and, in particular, the requirements of Section 6 3 See Securities Exchange Act Release No. 55644 (April 19, 2007), 72 FR 20570. 4 See Securities Exchange Act Release No. 51429 (March 24, 2005), 70 FR 16536 (March 31, 2005) (approving SR–CBOE–2005–58). 5 The Commission has considered the amended proposed rule change’s impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 30647 of the Act.6 Specifically, the Commission finds that the proposal is consistent with Section 6(b)(5) of the Act,7 in that the proposal has been designed to promote just and equitable principles of trade, and to protect investors and the public interest. The Commission believes that the proposal should enhance liquidity by helping to ensure that members who might be willing to provide competitive quotations and liquidity in an option class are given an opportunity to do so. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,8 that the proposed rule change (SR–CBOE–2007– 27), as modified by Amendment No. 1, is approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–10555 Filed 5–31–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55811; File No. SR–CHX– 2007–08] Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Order Approving Proposed Rule Change To Expand Its Price Manipulation Rule To Address Additional Instances of Improper Behavior May 24, 2007. On March 21, 2007, the Chicago Stock Exchange, Inc. (‘‘CHX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change, pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 to amend its rule relating to price manipulation. The proposed rule change was published for comment in the Federal Register on April 20, 2007.3 The Commission received no comments on the proposal. This order approves the proposed rule change. I. Description of the Proposal The Exchange seeks to amend its rule relating to price manipulation to 6 15 U.S.C. 78f. U.S.C. 78f(b)(5). 8 15 U.S.C. 78s(b)(2). 9 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 55625 (April 12, 2007), 72 FR 19998. 7 15 E:\FR\FM\01JNN1.SGM 01JNN1 30648 Federal Register / Vol. 72, No. 105 / Friday, June 1, 2007 / Notices 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 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. SECURITIES AND EXCHANGE COMMISSION II. Discussion Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on October 12, 2006, The Depository Trust Company (‘‘DTC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) and on March 29, 2007, and May 3, 2007, amended the proposed rule change described in Items I, II, and III below, which items have been prepared primarily by the DTC.2 The Commission is publishing this notice to solicit comments on the proposed rule change from interested parties. After careful review, the Commission finds that CHX’s proposal to amend its rule relating to price manipulation is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange 4 and, in particular, the requirements of Section 6 of the Act 5 and the rules and regulations thereunder. The Commission believes that these changes would appropriately establish that improper price manipulation could occur upon the entry of orders at successively higher or lower prices, not just upon the execution of trades at successively higher or lower prices. Additionally, the Commission believes that these changes would appropriately establish that improper price manipulation could occur with a single trade or order at a price higher or lower than the market. III. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,6 that the proposed rule change (SR–CHX–2007– 08) be, and it hereby is, approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.7 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–10554 Filed 5–31–07; 8:45 am] hsrobinson on PROD1PC76 with NOTICES BILLING CODE 8010–01–P 4 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 5 15 U.S.C. 78f. 6 15 U.S.C. 78s(b)(2). 7 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 18:10 May 31, 2007 Jkt 211001 [Release No. 34–55816; File No. SR–DTC– 2006–16] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing of Proposed Rule Change Amending FAST and DRS Limited Participant Requirements for Transfer Agents May 25, 2007. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change DTC proposes to amend its rules to update, standardize, and restate the requirements for the Fast Automated Securities Transfer Program (‘‘FAST’’), to delineate the responsibilities of DTC and the transfer agents with respect to the securities held by transfer agents as part of the FAST program, and to restate the requirements for transfer agents participating in the Direct Registration System (‘‘DRS’’). 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 DTC 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. DTC has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of these statements.3 1 15 U.S.C. 78s(b)(1). exact text of the DTC’s proposed rule change is set forth in its filing, which can be found at http://www.dtc.org/impNtc/mor/ index.html#2006. 3 The Commission has modified portions of the text of the summaries prepared by the DTC. 2 The PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change Prior to the establishment of the FAST program, transfers of securities to or from DTC occurred by sending securities back and forth between DTC and transfer agents. In the case of securities being deposited with DTC, DTC sent the certificates to the transfer agent for registration into the name of DTC’s nominee, Cede & Co., and the transfer agent returned the reregistered certificates to DTC. In the case of securities being withdrawn from DTC, DTC sent the certificates registered in the name of Cede & Co. to the transfer agent for reregistration into the name designated by the withdrawing DTC participant, and the transfer agent returned the reregistered security to DTC for delivery to the withdrawing participant. This process exposed securities to risk of loss during transit between DTC and transfer agents and resulted in the expense of making physical deliveries of securities. Under the FAST program, transfer agents hold FAST-eligible securities registered in the name of Cede & Co. in the form of balance certificates. As additional securities are deposited or withdrawn from DTC, transfer agents adjust the denomination of the balance certificates as appropriate and electronically confirm theses changes with DTC. Such ‘‘FAST agents’’ are holding in custody those securities that would otherwise be held at DTC for the benefit of DTC’s participants. As such, the FAST program reduces the movement of certificates between DTC and the transfer agents and therefore reduces the costs and risks associated with the creation, movement, and storing of certificates to DTC, DTC participants, issuers, and transfer agents.4 The FAST program has grown substantially since first being introduced in 1975.5 Recent changes in the rules of the major securities exchanges are expected to further accelerate this growth.6 Those exchange 4 For a description of DTC’s current rules relating to FAST, see Securities Exchange Act Release Nos. 34–13342 (March 8, 1977) [File No. SR–DTC–76–3]; 34–14997 (July 26, 1978) [File No. SR–DTC–78–11]; 34–21401 (October 16, 1984) [File No. SR–DTC–84– 8]; 34–31941 (March 3, 1993) [SR–DTC–92–15]; and 34–46956 (December 6, 2002) [File No. SR–DTC– 2002–15]. 5 DTC introduced the FAST program in 1975 with 400 issues and 10 agents. Currently, there are over 930,000 issues and approximately 90 agents in FAST. 6 Securities Exchange Act Release Nos. 54289 (August 8, 2006), 71 FR 47278 (August 16, 2006) [File No. SR–NYSE–2006–29]; 54290 (August 8, E:\FR\FM\01JNN1.SGM 01JNN1

Agencies

[Federal Register Volume 72, Number 105 (Friday, June 1, 2007)]
[Notices]
[Pages 30647-30648]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-10554]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55811; File No. SR-CHX-2007-08]


Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Order Approving Proposed Rule Change To Expand Its Price Manipulation 
Rule To Address Additional Instances of Improper Behavior

May 24, 2007.
    On March 21, 2007, the Chicago Stock Exchange, Inc. (``CHX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') a proposed rule change, pursuant to Section 19(b)(1) 
of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder,\2\ to amend its rule relating to price manipulation. The 
proposed rule change was published for comment in the Federal Register 
on April 20, 2007.\3\ The Commission received no comments on the 
proposal. This order approves the proposed rule change.
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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. 55625 (April 12, 
2007), 72 FR 19998.
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I. Description of the Proposal

    The Exchange seeks to amend its rule relating to price manipulation 
to

[[Page 30648]]

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 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.

II. Discussion

    After careful review, the Commission finds that CHX's proposal to 
amend its rule relating to price manipulation is consistent with the 
requirements of the Act and the rules and regulations thereunder 
applicable to a national securities exchange \4\ and, in particular, 
the requirements of Section 6 of the Act \5\ and the rules and 
regulations thereunder. The Commission believes that these changes 
would appropriately establish that improper price manipulation could 
occur upon the entry of orders at successively higher or lower prices, 
not just upon the execution of trades at successively higher or lower 
prices. Additionally, the Commission believes that these changes would 
appropriately establish that improper price manipulation could occur 
with a single trade or order at a price higher or lower than the 
market.
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    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
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III. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-CHX-2007-08) be, and it 
hereby is, approved.
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    \6\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-10554 Filed 5-31-07; 8:45 am]
BILLING CODE 8010-01-P