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 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. 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 (http://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 (http://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 http://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]


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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.
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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 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.

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 (http://
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 (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 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).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-10790 Filed 6-5-07; 8:45 am]
BILLING CODE 8010-01-P