Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Market-Maker Obligations, 32151-32152 [E7-11158]

Download as PDF Federal Register / Vol. 72, No. 111 / Monday, June 11, 2007 / Notices Commissioner Campos, as duty officer, voted to consider the items listed for the closed meeting in closed session. The subject matter of the Open Meeting scheduled for Tuesday, June 12, 2007 at 9 a.m. will be: Dated: June 6, 2007. Florence E. Harmon, Deputy Secretary. The Commission will hold a roundtable discussion regarding selective mutual recognition of foreign jurisdictions. The discussion will address the implications of granting foreign market participants access to U.S. investors under an abbreviated registration system, provided those entities are supervised in a foreign jurisdiction that has a securities regulatory regime substantially comparable (but not necessarily identical) to that in the United States. The roundtable will explore whether selective mutual recognition would benefit U.S. investors by providing greater cross-border access to foreign investment opportunities while preserving investor protection. SECURITIES AND EXCHANGE COMMISSION [FR Doc. E7–11261 Filed 6–8–07; 8:45 am] BILLING CODE 8010–01–P The subject matter of the Open Meeting scheduled for Wednesday, June 13, 2007 at 10 a.m. will be: 1. The Commission will consider whether to adopt amendments to the grandfather provision of Rule 203 of Regulation SHO and the market decline limitation of Rule 200(e)(3). 2. The Commission will consider whether to re-propose amendments to the options market maker exception to the close-out requirement of Regulation SHO and the marking requirements of Rule 200(g) of Regulation SHO. 3. The Commission will consider whether to adopt amendments to the short sale price test of Rule 10a–1. In addition, the Commission will consider whether to adopt an amendment to the ‘‘short exempt’’ marking requirement of Regulation SHO. 4. The Commission will consider whether to adopt amendments to Rule 105 of Regulation M that would further safeguard the integrity of the capital raising process and protect issuers from manipulative activity that can reduce issuers’ offering proceeds and dilute security holder value. rmajette on DSK8KYBLC1PROD with MISCELLANEOUS The subject matter of the Closed Meeting scheduled for Thursday, June 14, 2007 will be: Formal orders of investigations; Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings of an enforcement nature; Resolution of litigation claims; Other matters related to enforcement proceedings; and An adjudicatory matter. At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551–5400. VerDate Mar<15>2010 12:15 Mar 07, 2011 Jkt 223001 [Release No. 34–55853; File No. SR–CBOE– 2007–56] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Market-Maker Obligations June 4, 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 30, 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, II, and III below, which Items have been prepared substantially 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 The Exchange proposes to amend CBOE’s rules relating to Market-Maker obligations. The text of the proposed rule change is available on the Exchange’s Web site (http:// www.cboe.com), at the Exchange’s Office of the Secretary 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 those statements may be examined at the places specified in Item IV below. The 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b–4(f)(6). 2 17 PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 32151 Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose On January 23, 2007, the Commission approved CBOE’s proposed rule change to permit thirteen option classes to trade in penny increments in connection with the Penny Pilot Program.5 In its proposed rule change, CBOE discussed the various quote mitigation strategies that it had already implemented and intended to implement. One of the quote mitigation strategies was to amend Rule 8.7 to modify the continuous electronic quoting obligation of Market-Makers and Remote MarketMakers (‘‘RMMs’’). Specifically, CBOE amended these obligations to provide that Market-Makers and RMMs shall provide continuous electronic quotes in 60% of the series of his/her appointed class that have a time to expiration of less than nine months. CBOE noted that this was consistent with its Rule 5.8. Because CBOE’s rule filing relating to the Penny Pilot Program was only approved on a six-month pilot basis (which is scheduled to expire on July 26, 2007), including apparently the proposed change to the continuous electronic quoting obligation of MarketMakers and RMMs, CBOE requests that the change to continuous electronic quoting obligations be approved on a permanent basis.6 CBOE notes that this quote mitigation strategy is similar to Phlx Rule 1014(b)(ii)(D)(4).7 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Act 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.8 Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) Act 9 requirements 5 See Securities Exchange Act Release No. 55154, 72 FR 4743 (February 1, 2007). 6 It is unclear from the approval order whether the proposed change to the continuous electronic quoting obligation of Market-Makers and RMMs was intended to be approved only on a six-month pilot basis, as opposed to the changes to the minimum increments for the thirteen option classes participating in the Penny Pilot Program. 7 See Securities Exchange Act Release No. 55689 (May 1, 2007), 72 FR 26192 (May 8, 2007) (granting immediate effectiveness to SR–Phlx–2007–36). 8 15 U.S.C. 78f(b). 9 15 U.S.C. 78f(b)(5). E:\ERIC\11JNN1.SGM 11JNN1 32152 Federal Register / Vol. 72, No. 111 / Monday, June 11, 2007 / Notices that the rules of an exchange be designed to promote just and equitable principles of trade, to prevent fraudulent and manipulative acts and, in general, 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 that is 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. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing rule does not (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, provided that the selfregulatory organization has given the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change or such shorter time as designated by the Commission, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 10 and Rule 19b–4(f)(6) thereunder.11 At any time within 60 days of the filing of such proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. rmajette on DSK8KYBLC1PROD with MISCELLANEOUS IV. 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: U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). The Exchange provided the Commission with written notice of its intention to file the proposed rule change on May 16, 2007. Electronic Comments • 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 Number SR–CBOE–2007–56 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. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–11158 Filed 6–8–07; 8:45 am] BILLING CODE 8010–01–P 11 17 12:15 Mar 07, 2011 Jkt 223001 [Release No. 34–55832; File No. SR– NASDAQ–2007–040] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Granting Approval to a Proposed Rule Change Relating to the Waiver of Fees upon Relisting of Companies Removed for Late Filings May 31, 2007. On April 4, 2007, The NASDAQ Stock Market LLC (‘‘Nasdaq’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act All submissions should refer to File of 1934 (‘‘Act’’) 1 and Rule 19b–4 Number SR–CBOE–2007–56. This file thereunder,2 a proposed rule change to number should be included on the waive fees upon the relisting of subject line if e-mail is used. To help the companies removed for late filings. The Commission process and review your proposed rule change was published for comments more efficiently, please use comment in the Federal Register on only one method. The Commission will April 25, 2007.3 The Commission post all comments on the Commission’s received no comments on the proposal. Internet Web site (http://www.sec.gov/ This order approves the proposed rule rules/sro.shtml). Copies of the change. In its filing, Nasdaq proposed to submission, all subsequent allow, in certain circumstances, a amendments, all written statements company to relist without paying a new with respect to the proposed rule entry and application fee if the company change that are filed with the was delisted solely for the failure to file Commission, and all written a required periodic report with the communications relating to the Commission or other appropriate proposed rule change between the regulatory authority. In addition, Commission and any person, other than Nasdaq proposed to delete separate, those that may be withheld from the duplicative provisions in its rules. public in accordance with the Nasdaq has proposed to waive the provisions of 5 U.S.C. 552, will be entry and application fee for any available for inspection and copying in company that was suspended 4 and/or the Commission’s Public Reference delisted from the Nasdaq Stock Market Room. Copies of such filing also will be solely for its failure to file a required available for inspection and copying at periodic report with the Commission or the principal office of the CBOE. All other appropriate regulatory authority, if comments received will be posted the company regains compliance with this requirement and applies to relist on without change; the Commission does Nasdaq within one year of the date it not edit personal identifying was delisted from Nasdaq.5 In addition, information from submissions. You should submit only information that 1 15 U.S.C. 78s(b)(1). you wish to make available publicly. All 2 17 CFR 240.19b–4. submissions should refer to File 3 See Securities Exchange Act Release No. 55645 Number SR–CBOE–2007–56 and should (April 19, 2007), 72 FR 20572. 4 Nasdaq Rule 4802(f) requires a security to meet be submitted on or before July 2, 2007. 10 15 VerDate Mar<15>2010 SECURITIES AND EXCHANGE COMMISSION 12 17 PO 00000 CFR 200.30–3(a)(12). Frm 00097 Fmt 4703 Sfmt 4703 the requirements for initial listing (which include the requirement to pay the applicable listing fees) if the security has been the subject of a decision to delist by a Listing Qualifications Panel, the Nasdaq Listing and Hearing Review Council or the Nasdaq Board. 5 The Commission notes that Nasdaq has the authority under its rules to waive fees on a caseby-case basis. See Securities Exchange Release No. 28731 (January 2, 1991), 56 FR 906 (January 9, 1991) (SR–NASD–90–61). The Commission notes that it is not, as a general matter, appropriate to allow for the waiver of fees to one class of nonmembers, while excluding other non-members from such class, without first providing interested persons an opportunity to comment on the proposed rule change pursuant to section 19(b)(2) under the Act. E:\ERIC\11JNN1.SGM 11JNN1

Agencies

[Federal Register Volume 72, Number 111 (Monday, June 11, 2007)]
[Notices]
[Pages 32151-32152]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-11158]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55853; File No. SR-CBOE-2007-56]


 Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Market-Maker Obligations

June 4, 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 30, 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, II, and III below, which Items have been prepared 
substantially 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.
---------------------------------------------------------------------------

    \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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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend CBOE's rules relating to Market-
Maker obligations. The text of the proposed rule change is available on 
the Exchange's Web site (http://www.cboe.com), at the Exchange's Office 
of the Secretary 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 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.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On January 23, 2007, the Commission approved CBOE's proposed rule 
change to permit thirteen option classes to trade in penny increments 
in connection with the Penny Pilot Program.\5\ In its proposed rule 
change, CBOE discussed the various quote mitigation strategies that it 
had already implemented and intended to implement. One of the quote 
mitigation strategies was to amend Rule 8.7 to modify the continuous 
electronic quoting obligation of Market-Makers and Remote Market-Makers 
(``RMMs''). Specifically, CBOE amended these obligations to provide 
that Market-Makers and RMMs shall provide continuous electronic quotes 
in 60% of the series of his/her appointed class that have a time to 
expiration of less than nine months. CBOE noted that this was 
consistent with its Rule 5.8.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 55154, 72 FR 4743 
(February 1, 2007).
---------------------------------------------------------------------------

    Because CBOE's rule filing relating to the Penny Pilot Program was 
only approved on a six-month pilot basis (which is scheduled to expire 
on July 26, 2007), including apparently the proposed change to the 
continuous electronic quoting obligation of Market-Makers and RMMs, 
CBOE requests that the change to continuous electronic quoting 
obligations be approved on a permanent basis.\6\ CBOE notes that this 
quote mitigation strategy is similar to Phlx Rule 1014(b)(ii)(D)(4).\7\
---------------------------------------------------------------------------

    \6\ It is unclear from the approval order whether the proposed 
change to the continuous electronic quoting obligation of Market-
Makers and RMMs was intended to be approved only on a six-month 
pilot basis, as opposed to the changes to the minimum increments for 
the thirteen option classes participating in the Penny Pilot 
Program.
    \7\ See Securities Exchange Act Release No. 55689 (May 1, 2007), 
72 FR 26192 (May 8, 2007) (granting immediate effectiveness to SR-
Phlx-2007-36).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act 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.\8\ Specifically, the Exchange believes the 
proposed rule change is consistent with the Section 6(b)(5) Act \9\ 
requirements

[[Page 32152]]

that the rules of an exchange be designed to promote just and equitable 
principles of trade, to prevent fraudulent and manipulative acts and, 
in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(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 that is 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. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing rule does not (i) significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest, provided that the self-regulatory organization 
has given the Commission written notice of its intent to file the 
proposed rule change at least five business days prior to the date of 
filing of the proposed rule change or such shorter time as designated 
by the Commission, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) 
thereunder.\11\ At any time within 60 days of the filing of such 
proposed rule change, the Commission may summarily abrogate such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6). The Exchange provided the 
Commission with written notice of its intention to file the proposed 
rule change on May 16, 2007.
---------------------------------------------------------------------------

IV. 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 Number SR-CBOE-2007-56 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-2007-56. 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 CBOE. 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-2007-56 and should be submitted on or before July 
2, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-11158 Filed 6-8-07; 8:45 am]
BILLING CODE 8010-01-P