Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt an Interpretation to CBOE Rule 8.95, 33547-33549 [E7-11628]
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Federal Register / Vol. 72, No. 116 / Monday, June 18, 2007 / Notices
and C below, of the most significant
aspects of such statements.
this proposed rule change. The
Exchange has not received any written
comments from members or other
interested parties.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to increase the execution fee
for FARMM orders. FARMM orders are
orders that are sent to the Exchange for
execution by an Electronic Access
Member (‘‘EAM’’), an ISE member, on
behalf of a non-ISE market maker. The
Exchange currently charges FARMM
orders $0.19 per contract comprised of
an execution fee and a comparison fee
of $0.16 and $0.03 per contract,
respectively.5 FARMM orders do not
include Linkage Orders. The Exchange
proposes to increase the fee for all
FARMM orders to $0.40 per contract,
comprised of an execution fee and a
comparison fee of $0.37 and $0.03 per
contract, respectively. The Exchange
believes that the proposed increase to
the execution fee will still leave ISE as
one of the least expensive venues for
executing FARMM orders through an
electronic trading system.6
2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under Section 6(b)(4) of the Act 7 that an
exchange have an equitable allocation of
reasonable dues, fees, and other charges
among exchange members and other
persons using its facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
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
jlentini on PROD1PC65 with NOTICES
The Exchange has not solicited, and
does not intend to solicit, comments on
5 See Securities Exchange Act Release No. 53630
(April 11, 2006), 71 FR 19918 (April 18, 2006) (SR–
ISE–2006–18).
6 The Exchange notes that the American Stock
Exchange imposes a ‘‘Non-Member Market Maker’’
fee of $.50 per contract side for Auto-Ex FARMM
orders, and the Philadelphia Stock Exchange
imposes a ‘‘Broker/Dealer’’ fee of $.45 per contract
for AUTOM-delivered FARMM orders. Telephone
conversation between Samir Patel, Assistant
General Counsel, ISE, Richard Holley, Senior
Special Counsel, Division of Market Regulation,
Commission, and Rahman Harrison, Special
Counsel, Division of Market Regulation,
Commission on June 7, 2007.
7 15 U.S.C. 78f(b)(4).
VerDate Aug<31>2005
19:01 Jun 15, 2007
Jkt 211001
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 8 and Rule 19b–
4(f)(2) thereunder,9 because it
establishes or changes a due, fee, or
other charge imposed by the Exchange.
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.
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:
33547
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 ISE. 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–ISE–2007–41 and should be
submitted on or before July 9, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Nancy M. Morris,
Secretary.
[FR Doc. E7–11657 Filed 6–15–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55894; File No. SR–CBOE–
2007–57]
Electronic Comments
• 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
Number SR–ISE–2007–41 on the subject
line.
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Adopt an
Interpretation to CBOE Rule 8.95
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–ISE–2007–41. 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
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 31,
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, II, and
III below, which Items have been
substantially prepared by the CBOE.
The Exchange has designated this
proposal as one constituting a stated
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule under
Section 19(b)(3)(A)(i) of the Act 3 and
Rule 19b–4(f)(1) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
8 15
9 17
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
Frm 00103
Fmt 4703
Sfmt 4703
June 11, 2007.
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(i).
4 17 CFR 240.19b–4(f)(1).
1 15
E:\FR\FM\18JNN1.SGM
18JNN1
33548
Federal Register / Vol. 72, No. 116 / Monday, June 18, 2007 / Notices
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
CBOE proposes to adopt an
interpretation to CBOE Rule 8.95
clarifying that in the event an existing
Designated Primary Market-Maker
(‘‘DPM’’) organization is authorized to
act as an Off-Floor DPM in one or more
option classes, such authorization will
be considered a reallocation of
securities pursuant to CBOE Rule 8.95.
The text of the proposed rule change is
available on CBOE’s Web site (https://
www.cboe.com/Legal), at the CBOE’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
CBOE 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 CBOE 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
jlentini on PROD1PC65 with NOTICES
1. Purpose
The Exchange proposes to adopt an
interpretation to CBOE Rule 8.95
clarifying that in the event an existing
DPM organization is authorized to act as
an Off-Floor DPM in one or more option
classes, such authorization will be
considered a reallocation of securities
pursuant to CBOE Rule 8.95. In
adopting this interpretation, the
appropriate Exchange committee will
retain jurisdiction for the first 12
months following the reallocation of
securities to review the Off-Floor DPM’s
market performance commitments that
were made in connection with the
appropriate Exchange committee’s
authorization to permit the DPM
organization to act as an Off-Floor DPM.
Pursuant to CBOE Rule 8.83(g), an
On-Floor DPM may request that the
appropriate Exchange committee
authorize it to operate as an Off-Floor
DPM in one or more equity option
classes traded on the Hybrid Trading
VerDate Aug<31>2005
18:19 Jun 15, 2007
Jkt 211001
System.5 If an On-Floor DPM is
approved to act as an Off-Floor DPM,
CBOE proposes to adopt an
interpretation to CBOE Rule 8.95
clarifying that the option classes in
which the On-Floor DPM is authorized
to act as an Off-Floor DPM are
considered a reallocation of securities.
Consistent with the way CBOE Rule
8.95(c) is currently applied to
allocations and reallocations of
securities, the appropriate Exchange
committee will then have the flexibility
during the first 12 months following the
reallocation of securities to the Off-Floor
DPM to conduct a review at any time
during that first 12 months to ensure
that the Off-Floor DPM is adhering to
any market performance commitments
made by the DPM organization in
connection with being authorized to act
as an Off-Floor DPM. If the Off-Floor
DPM is not adhering to the market
performance commitments that it made
in connection with being authorized to
act as an Off-Floor DPM, then the
appropriate Exchange committee may
remove the allocated security from the
Off-Floor DPM and reallocate the
security pursuant to CBOE Rule 8.95(c).
This in turn gives Off-Floor DPMs
incentive to abide by these
commitments.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act6 in general, and furthers the
objectives of Section 6(b)(5) of the Act7
in particular, in that it is designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts, 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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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
No written comments were either
solicited or receive d by the Exchange.
5 See Securities Exchange Act Release No. 34–
55531 (March 26, 2007) 72 FR 15736 (April 2, 2007)
(Order approving SR–CBOE–2006–94).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00104
Fmt 4703
Sfmt 4703
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become
effective pursuant to Section
19(b)(3)(A)(i) of the Act 8 and Rule 19b–
4(f)(1) thereunder,9 because it
constitutes a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule.
At any time within 60 days of the
filing of the 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
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2007–57 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–2007–57. 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
8 15
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
10 See 15 U.S.C. 78s(b)(3)(C).
9 17
E:\FR\FM\18JNN1.SGM
18JNN1
Federal Register / Vol. 72, No. 116 / Monday, June 18, 2007 / Notices
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of the 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–2007–57 and should
be submitted on or before July 9, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Nancy M. Morris,
Secretary.
[FR Doc. E7–11628 Filed 6–15–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55895; File No. SR–ISE–
2007–38]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change Relating to Payment for Order
Flow Fees
June 11, 2007.
jlentini on PROD1PC65 with NOTICES
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 June 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. ISE has designated this
proposal as one establishing or changing
a due, fee, or other charge imposed by
ISE under Section 19(b)(3)(A)(ii) of the
Act 3 and Rule 19b–4(f)(2) thereunder,4
which renders the proposal effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
11 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
VerDate Aug<31>2005
18:19 Jun 15, 2007
Jkt 211001
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 reduce the payment
for order flow (‘‘PFOF’’) fees for options
on issues that trade as part of the Penny
Pilot (‘‘Pilot’’).5 The text of the proposed
rule change is available at the Exchange,
the Commission’s Public Reference
Room, and https://www.iseoptions.com.
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. ISE
has substantially 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
On January 26, 2007, ISE and all of
the other options exchanges commenced
the Pilot for the quoting and trading of
specified options contracts in $.01
increments. The Exchange currently
operates a PFOF program as approved
by the Commission.6 This program is
funded through a fee, currently set at
$0.65 per contract, paid by Exchange
market makers for each customer
contract they execute. All funds
collected by the Exchange are
administered by specified market
makers.7 PFOF fees collected by the
Exchange that are not distributed are
rebated back to the market makers.
Subsequent to the commencement of the
Pilot, the Exchange amended its
5 See Securities Exchange Act Release No. 54603
(October 16, 2006), 71 FR 62024 (October 20, 2006)
(SR–ISE–2006–62) (Notice of Filing of Proposed
Rule Change to Implement a Pilot Program To
Quote and To Trade Options in Pennies).
6 See Securities Exchange Act Release No. 43833
(January 10, 2001), 66 FR 7822 (January 25, 2001)
(SR–ISE–2000–10).
7 Initially only Primary Market Makers
administered PFOF pools. However, the Exchange
recently amended its PFOF program to allow a
preferenced Competitive Market Maker (‘‘CMM’’) to
administer the PFOF funds collected by the
Exchange with respect to orders in a group of
options classes preferenced to that CMM. See
Securities Exchange Act Release No. 53127 (January
13, 2006), 71 FR 3582 (January 23, 2006) (SR–ISE–
2005–57).
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
33549
Schedule of Fees by reducing the PFOF
fees for issues that trade as part of the
Pilot from $0.65 per contract to $0.25
per contract (‘‘Pilot PFOF Fees’’).8
The Exchange now proposes to reduce
the Pilot PFOF Fees from $0.25 per
contract to $0.10 per contract for
transactions in all Pilot issues. This fee
reduction shall also apply to other
issues that become a part of the Pilot in
the event the Pilot is expanded beyond
the current 13 securities. The Exchange
notes that quoting and trading in one
cent increments pursuant to the Pilot
has resulted in narrower spreads in the
13 Pilot securities. PFOF, as a result, has
become less of a competitive factor in
the Pilot securities. The Exchange thus
believes that while it is prudent for it to
maintain its PFOF fee, $0.10 per
contract is an appropriate PFOF rate
relative to the trading increments in
these instruments.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 9 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 10 in particular, because it is
an equitable allocation of reasonable
dues, fees, and other charges among
exchange members and other persons
using exchange facilities. In particular,
the Exchange believes that lowering
PFOF fees further in Pilot issues would
enhance competition.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has been designated as a fee change
pursuant to Section 19(b)(3)(A)(ii) of the
8 See Exchange Act Release No. 55271 (February
12, 2007), 72 FR 7699 (February 16, 2007) (SR–ISE–
2007–08) (Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change Relating to
Payment for Order Flow Fees).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4).
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Agencies
[Federal Register Volume 72, Number 116 (Monday, June 18, 2007)]
[Notices]
[Pages 33547-33549]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-11628]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55894; File No. SR-CBOE-2007-57]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Adopt an Interpretation to CBOE Rule 8.95
June 11, 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 31, 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, II, and III below, which Items have been substantially
prepared by the CBOE. The Exchange has designated this proposal as one
constituting a stated interpretation with respect to the meaning,
administration, or enforcement of an existing rule under Section
19(b)(3)(A)(i) of the Act \3\ and Rule 19b-4(f)(1) thereunder,\4\ which
renders the proposal effective upon filing with the Commission. The
Commission is publishing this notice to
[[Page 33548]]
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)(i).
\4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to adopt an interpretation to CBOE Rule 8.95
clarifying that in the event an existing Designated Primary Market-
Maker (``DPM'') organization is authorized to act as an Off-Floor DPM
in one or more option classes, such authorization will be considered a
reallocation of securities pursuant to CBOE Rule 8.95. The text of the
proposed rule change is available on CBOE's Web site (https://
www.cboe.com/Legal), at the CBOE'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 CBOE 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 CBOE 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
The Exchange proposes to adopt an interpretation to CBOE Rule 8.95
clarifying that in the event an existing DPM organization is authorized
to act as an Off-Floor DPM in one or more option classes, such
authorization will be considered a reallocation of securities pursuant
to CBOE Rule 8.95. In adopting this interpretation, the appropriate
Exchange committee will retain jurisdiction for the first 12 months
following the reallocation of securities to review the Off-Floor DPM's
market performance commitments that were made in connection with the
appropriate Exchange committee's authorization to permit the DPM
organization to act as an Off-Floor DPM.
Pursuant to CBOE Rule 8.83(g), an On-Floor DPM may request that the
appropriate Exchange committee authorize it to operate as an Off-Floor
DPM in one or more equity option classes traded on the Hybrid Trading
System.\5\ If an On-Floor DPM is approved to act as an Off-Floor DPM,
CBOE proposes to adopt an interpretation to CBOE Rule 8.95 clarifying
that the option classes in which the On-Floor DPM is authorized to act
as an Off-Floor DPM are considered a reallocation of securities.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 34-55531 (March 26,
2007) 72 FR 15736 (April 2, 2007) (Order approving SR-CBOE-2006-94).
---------------------------------------------------------------------------
Consistent with the way CBOE Rule 8.95(c) is currently applied to
allocations and reallocations of securities, the appropriate Exchange
committee will then have the flexibility during the first 12 months
following the reallocation of securities to the Off-Floor DPM to
conduct a review at any time during that first 12 months to ensure that
the Off-Floor DPM is adhering to any market performance commitments
made by the DPM organization in connection with being authorized to act
as an Off-Floor DPM. If the Off-Floor DPM is not adhering to the market
performance commitments that it made in connection with being
authorized to act as an Off-Floor DPM, then the appropriate Exchange
committee may remove the allocated security from the Off-Floor DPM and
reallocate the security pursuant to CBOE Rule 8.95(c). This in turn
gives Off-Floor DPMs incentive to abide by these commitments.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act\6\ in general, and furthers the objectives of Section
6(b)(5) of the Act\7\ in particular, in that it is designed to promote
just and equitable principles of trade, to prevent fraudulent and
manipulative acts, 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.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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
No written comments were either solicited or receive d by the
Exchange.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become effective pursuant to Section
19(b)(3)(A)(i) of the Act \8\ and Rule 19b-4(f)(1) thereunder,\9\
because it constitutes a stated policy, practice, or interpretation
with respect to the meaning, administration, or enforcement of an
existing rule.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(i).
\9\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the 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\
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\10\ See 15 U.S.C. 78s(b)(3)(C).
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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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-CBOE-2007-57 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-2007-57. 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
[[Page 33549]]
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room. Copies of the 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-2007-57 and should be submitted on or before July 9, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-11628 Filed 6-15-07; 8:45 am]
BILLING CODE 8010-01-P