Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Order Granting Accelerated Approval of a Proposed Rule Change Relating to Permanent Approval of the Preferred Market Maker Program, 31357-31358 [E7-10790]
Download as PDF
Federal Register / Vol. 72, No. 108 / Wednesday, June 6, 2007 / Notices
delisting. This additional guidance may
be helpful to investors as well.
Finally, the Commission notes that
the Exchange is clarifying and
broadening its shareholder approval
rules by requiring shareholder approval
in all change of control situations, not
just Reverse Mergers, which will protect
investors and the public interest. This
should allow investors of listed issuers
to participate in important corporate
decisions involving a change of control.
While certain change of control
situations would require shareholder
approval under other provisions of the
Guide, this proposal ensures that all
change of control situations must be
approved by shareholders, thereby
strengthening the Exchange’s
shareholder approval requirements, and
is consistent with comparable rules of
the New York Stock Exchange and
Nasdaq.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,13 that the
proposed rule change (SR–Amex–2006–
99) be, and hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–10871 Filed 6–5–07; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Order Granting Accelerated Approval
of a Proposed Rule Change Relating to
Permanent Approval of the Preferred
Market Maker Program
jlentini on PROD1PC65 with NOTICES
May 29, 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 15,
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 and II
below, which Items have been prepared
by the Exchange. The Commission is
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
VerDate Aug<31>2005
16:59 Jun 05, 2007
Jkt 211001
The Exchange proposes to make the
Preferred Market Maker Program
permanent. The text of the proposed
rule change is available on CBOE’s Web
site at https://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.
1. Purpose
[Release No. 34–55826; File No. SR–CBOE–
2007–47]
14 17
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8010–01–P
13 15
publishing this notice to solicit
comments on the proposed rule change
from interested persons and is
approving the proposal on an
accelerated basis.
In June, 2005, CBOE obtained
approval of a filing adopting a Preferred
DPM Program.3 This allowed order
providers to send orders to the
Exchange designating a Preferred DPM
from among the DPM complex. If the
Preferred DPM was quoting at the NBBO
at the time the order was received by
CBOE, the Preferred DPM was entitled
to the entire DPM participation
entitlement. The Exchange subsequently
modified the applicable participation
entitlement percentages under the
program 4 and, then expanded the scope
of the program to apply to qualifying
Market Makers (as opposed to just
DPMs).5 At that time the program was
31357
renamed the Preferred Market Maker
Program.
The Preferred Market Maker Program
has been operating on a pilot basis. The
pilot is due to expire on June 2, 2007.
Since the Pilot was put into operation
it has been positively received by the
options trading community. There has
not been any adverse or unanticipated
negative impact on the market by the
presence of the Preferred Market Maker
Program. Further, CBOE believes that
the pilot program helps generate greater
order flow for the Exchange which in
turn adds depth and liquidity to CBOE’s
markets.
2. Statutory Basis
CBOE believes that the proposed rule
change is consistent with the Act 6 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
an exchange have rules that are
designed to promote just and equitable
principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and 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
burden on competition 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 solicited nor
received comments on the proposal.
III. 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
3 See
Securities Exchange Act Release No. 51779
(June 2, 2005), 70 FR 33564 (June 8, 2005)
(approving SR–CBOE–2004–71).
4 See Securities Exchange Act Release Nos. 51824
(June 10, 2005), 70 FR 35476 (June 20, 2005)
(approving SR–CBOE–2005–45); and 52021 (July
13, 2005), 70 FR 41462 (July 19, 2005) (approving
SR–CBOE–2005–50).
5 See Securities Exchange Act Release No. 52506
(September 23, 2005), 70 FR 57340 (September 30,
2005) (approving SR–CBOE–2005–58).
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
• 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
6 15
U.S.C. 78a et seq.
U.S.C. 78(f)(b).
8 15 U.S.C. 78(f)(b)(5).
7 15
E:\FR\FM\06JNN1.SGM
06JNN1
31358
Federal Register / Vol. 72, No. 108 / Wednesday, June 6, 2007 / Notices
perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
Paper Comments
investors and the public interest. The
• Send paper comments in triplicate
Commission notes that the Exchange’s
to Nancy M. Morris, Secretary,
Preferred Market Maker Program was
Securities and Exchange Commission,
approved on a pilot basis approximately
100 F Street, NE., Washington, DC
two years ago.12 The Exchange has
20549–1090.
asked the Commission to approve the
All submissions should refer to File
Exchange’s Preferred Market Maker
Number SR-CBOE–2007–47. This file
Program on a permanent basis. For the
number should be included on the
subject line if e-mail is used. To help the reasons noted by the Commission when
it initially approved the Exchange’s
Commission process and review your
Preferred Market Maker Program on a
comments more efficiently, please use
only one method. The Commission will pilot basis, the Commission continues to
post all comments on the Commission’s believe that the Exchange’s Preferred
Internet Web site (https://www.sec.gov/
Market Maker Program does not
rules/sro.shtml). Copies of the
jeopardize market integrity or the
submission, all subsequent
incentive for market participants to post
amendments, all written statements
competitive quotes.13 Accordingly, the
with respect to the proposed rule
Commission finds that the proposal is
change that are filed with the
consistent with the Act.
Commission, and all written
The Exchange has requested that the
communications relating to the
Commission find good cause for
proposed rule change between the
Commission and any person, other than approving the proposed rule change
prior to the thirtieth day after
those that may be withheld from the
publication of notice thereof in the
public in accordance with the
Federal Register. The Commission
provisions of 5 U.S.C. 552, will be
believes that granting accelerated
available for inspection and copying in
approval of the proposed rule change
the Commission’s Public Reference
Room. Copies of such filing also will be would allow the Exchange’s Preferred
available for inspection and copying at
Market Maker to continue without
the principal office of the Exchange. All disruption beyond the June 2, 2007
comments received will be posted
expiration date of the current pilot
without change; the Commission does
program. Accordingly, the Commission
not edit personal identifying
finds good cause, consistent with
information from submissions. You
Section 19(b)(2) of the Act,14 for
should submit only information that
approving the proposed rule change
you wish to make available publicly. All prior to the thirtieth day after
submissions should refer to File
publication of notice thereof in the
Number SR–CBOE–2007–47 and should
be submitted on or before June 27, 2007. Federal Register.
V. Conclusion
IV. Commission’s Findings and Order
Granting Accelerated Approval of the
It is therefore ordered, pursuant to
Proposed Rule Change
Section 19(b)(2) of the Act,15 that the
After careful consideration, the
proposed rule change (SR–CBOE–2007–
Commission finds that the proposed
47), is hereby approved on an
rule change is consistent with the
accelerated basis.
requirements of Section 6 of the Act 9
For the Commission, by the Division of
and the rules and regulations
Market Regulation, pursuant to delegated
thereunder applicable to a national
16
securities exchange,10 and, in particular, authority.
Florence E. Harmon,
the requirements of Section 6(b)(5) of
Deputy Secretary.
the Act.11 Section 6(b)(5) requires,
among other things, that the rules of a
[FR Doc. E7–10790 Filed 6–5–07; 8:45 am]
national securities exchange be
BILLING CODE 8010–01–P
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to and
jlentini on PROD1PC65 with NOTICES
Number SR–CBOE–2007–47 on the
subject line.
9 15
U.S.C. 78f.
approving this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
11 15.U.S.C. 78f(b)(5).
10 In
VerDate Aug<31>2005
16:59 Jun 05, 2007
Jkt 211001
12 See
notes 3 to 5, supra.
note 3, supra.
14 15 U.S.C. 78s(b)(2).
15 15 U.S.C. 78s(b)(2).
16 17 CFR 200.30–3(a)(12).
13 See
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55833; File No. SR–ISE–
2007–28]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change and Amendment No. 1 Thereto
Relating to the Expiration of an ISE
Stock Exchange Fee Waiver and the
Granting of a Fee Waiver for Certain
Other Transactions
May 31, 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 1,
2007, the International Securities
Exchange, LLC (‘‘ISE’’ 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
Exchange. On May 29, 2007, the ISE
filed Amendment No. 1 to the proposed
rule change. The Commission is
publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE is proposing to amend its
Schedule of Fees to reflect the
expiration of a fee waiver related to all
transactions executed on the ISE Stock
Exchange (‘‘ISE Stock’’) and to allow for
a waiver of certain transactions
executed on ISE Stock. The text of the
proposed rule change is available at
https://www.iseoptions.com and 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 IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
1 15
2 17
E:\FR\FM\06JNN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
06JNN1
Agencies
[Federal Register Volume 72, Number 108 (Wednesday, June 6, 2007)]
[Notices]
[Pages 31357-31358]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-10790]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55826; File No. SR-CBOE-2007-47]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Order Granting Accelerated Approval
of a Proposed Rule Change Relating to Permanent Approval of the
Preferred Market Maker Program
May 29, 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 15, 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 and II below, which Items have been prepared by the Exchange.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons and is approving the
proposal on an accelerated basis.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to make the Preferred Market Maker Program
permanent. The text of the proposed rule change is available on CBOE's
Web site at https://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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
In June, 2005, CBOE obtained approval of a filing adopting a
Preferred DPM Program.\3\ This allowed order providers to send orders
to the Exchange designating a Preferred DPM from among the DPM complex.
If the Preferred DPM was quoting at the NBBO at the time the order was
received by CBOE, the Preferred DPM was entitled to the entire DPM
participation entitlement. The Exchange subsequently modified the
applicable participation entitlement percentages under the program \4\
and, then expanded the scope of the program to apply to qualifying
Market Makers (as opposed to just DPMs).\5\ At that time the program
was renamed the Preferred Market Maker Program.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 51779 (June 2,
2005), 70 FR 33564 (June 8, 2005) (approving SR-CBOE-2004-71).
\4\ See Securities Exchange Act Release Nos. 51824 (June 10,
2005), 70 FR 35476 (June 20, 2005) (approving SR-CBOE-2005-45); and
52021 (July 13, 2005), 70 FR 41462 (July 19, 2005) (approving SR-
CBOE-2005-50).
\5\ See Securities Exchange Act Release No. 52506 (September 23,
2005), 70 FR 57340 (September 30, 2005) (approving SR-CBOE-2005-58).
---------------------------------------------------------------------------
The Preferred Market Maker Program has been operating on a pilot
basis. The pilot is due to expire on June 2, 2007. Since the Pilot was
put into operation it has been positively received by the options
trading community. There has not been any adverse or unanticipated
negative impact on the market by the presence of the Preferred Market
Maker Program. Further, CBOE believes that the pilot program helps
generate greater order flow for the Exchange which in turn adds depth
and liquidity to CBOE's markets.
2. Statutory Basis
CBOE believes that the proposed rule change is consistent with the
Act \6\ 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 an exchange have rules that are designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and to protect investors and the public interest.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78a et seq.
\7\ 15 U.S.C. 78(f)(b).
\8\ 15 U.S.C. 78(f)(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE does not believe that the proposed rule change will impose any
burden on competition 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 solicited nor received comments on the
proposal.
III. 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
[[Page 31358]]
Number SR-CBOE-2007-47 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-2007-47. 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 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-CBOE-2007-47 and should be submitted on or before June
27, 2007.
IV. Commission's Findings and Order Granting Accelerated Approval of
the Proposed Rule Change
After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of Section 6 of the Act
\9\ and the rules and regulations thereunder applicable to a national
securities exchange,\10\ and, in particular, the requirements of
Section 6(b)(5) of the Act.\11\ Section 6(b)(5) requires, among other
things, that the rules of a national securities exchange be designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to remove impediments to and perfect
the mechanism of a free and open market and a national market system,
and, in general, to protect investors and the public interest. The
Commission notes that the Exchange's Preferred Market Maker Program was
approved on a pilot basis approximately two years ago.\12\ The Exchange
has asked the Commission to approve the Exchange's Preferred Market
Maker Program on a permanent basis. For the reasons noted by the
Commission when it initially approved the Exchange's Preferred Market
Maker Program on a pilot basis, the Commission continues to believe
that the Exchange's Preferred Market Maker Program does not jeopardize
market integrity or the incentive for market participants to post
competitive quotes.\13\ Accordingly, the Commission finds that the
proposal is consistent with the Act.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f.
\10\ In approving this proposal, the Commission has considered
the proposed rule's impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
\11\ 15.U.S.C. 78f(b)(5).
\12\ See notes 3 to 5, supra.
\13\ See note 3, supra.
---------------------------------------------------------------------------
The Exchange has requested that the Commission find good cause for
approving the proposed rule change prior to the thirtieth day after
publication of notice thereof in the Federal Register. The Commission
believes that granting accelerated approval of the proposed rule change
would allow the Exchange's Preferred Market Maker to continue without
disruption beyond the June 2, 2007 expiration date of the current pilot
program. Accordingly, the Commission finds good cause, consistent with
Section 19(b)(2) of the Act,\14\ for approving the proposed rule change
prior to the thirtieth day after publication of notice thereof in the
Federal Register.
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\15\ that the proposed rule change (SR-CBOE-2007-47), is hereby
approved on an accelerated basis.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-10790 Filed 6-5-07; 8:45 am]
BILLING CODE 8010-01-P