Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order Approving a Proposed Rule Change as Modified by Amendment No. 1 Thereto Relating to Appointment of Market Makers, 36082-36083 [E7-12675]
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Federal Register / Vol. 72, No. 126 / Monday, July 2, 2007 / Notices
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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the Exchange consents,
the Commission will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
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–Amex–2007–38 on the
subject line.
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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–Amex–2007–38. 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
22:57 Jun 29, 2007
Jkt 211001
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.6
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–12742 Filed 6–29–07; 8:45 am]
BILLING CODE 8010–01–P
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:
VerDate Aug<31>2005
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 on official business days between
the hours of 10 a.m. and 3 p.m. Copies
of the 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–Amex–
2007–38 and should be submitted on or
before July 23, 2007.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55950; File No. SR–BSE–
2007–09]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Order Approving
a Proposed Rule Change as Modified
by Amendment No. 1 Thereto Relating
to Appointment of Market Makers
June 25, 2007.
I. Introduction
On February 20, 2007, the Boston
Stock Exchange, Inc. (‘‘BSE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
grant the authority for the Exchange to
approve Market Maker appointments
instead of the Board or a committee
designated by the Board and to provide
a process for those Market Makers who
wish to withdraw from trading an
option issue within their appointment.
The Exchange filed Amendment No. 1
to the proposed rule change on May 11,
2007. The proposed rule change, as
amended, was published for comment
in the Federal Register on May 23,
6 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Frm 00116
Fmt 4703
Sfmt 4703
2007.3 The Commission received no
comments on the proposal.
II. Description of the Proposal
The Exchange proposes to amend
Section 4 (Appointment of Market
Makers) of Chapter VI of the BOX Rules
to grant the authority for the Exchange
to approve Market Maker appointments
instead of the Board or committee
designated by the Board, as the rule
currently states. This proposed change
would allow the regulatory staff of the
Exchange to approve Market Maker
appointments. According to the
Exchange, the BSE regulatory staff is
more accessible than the Board and this
change would help with the expediency
of the Market Marker allocation
approval process.
The Exchange also has proposed to
add a provision to establish a process
for those Market Makers who wish to
withdraw from trading an option issue
within their appointment.4 A Market
Maker may withdraw from an
appointment as long as the Market
Maker provides BOX with three
business days written notice of its intent
to withdraw from an appointment. If
such written notice is not provided to
BOX, then the Market Maker may be
subject to formal disciplinary action.
III. Discussion
After careful review, the Commission
finds that the proposed rule change, as
amended, is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange 5 and, in
particular, the requirements of Section 6
of the Act.6 Specifically, the
Commission finds that the proposal is
consistent with Section 6(b)(5) of the
Act,7 in that the proposal has been
designed to promote just and equitable
principles of trade, and to protect
investors and the public interest. The
Commission believes the proposal to
grant the Exchange the authority to
approve Market Maker appointments,
instead of the Board, should help make
the Market Marker allocation approval
process more efficient, thereby
potentially increasing liquidity on the
Exchange. The proposal also provides
transparency to the Exchange’s process
governing Market Makers who wish to
3 See Securities Exchange Act Release No. 55774
(May 16, 2007), 72 FR 29019.
4 See Proposed Section 4, subparagraph (i),
Chapter VI of the BOX Rules.
5 The Commission has considered the amended
proposed rule change’s impact on efficiency,
competition and capital formation. 15 U.S.C. 78c(f).
6 15 U.S.C. 78f
7 15 U.S.C. 78f(b)(5).
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Federal Register / Vol. 72, No. 126 / Monday, July 2, 2007 / Notices
withdraw from trading an option issue
within their appointment.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (SR–BSE–2007–
09), as modified by Amendment No. 1,
is approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–12675 Filed 6–29–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55959; File No. SR–ISE–
2007–50]
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 19,
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
ISE. The ISE has designated this
proposal as one establishing or changing
a due, fee, or other charge applicable
only to a member 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.
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 establish fees for
transactions in options on four Premium
Products.5 The text of the proposed rule
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.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
5 ‘‘Premium Products’’ is defined in the Schedule
of Fees as the products enumerated therein.
jlentini on PROD1PC65 with NOTICES
VerDate Aug<31>2005
22:57 Jun 29, 2007
Jkt 211001
In its filing with the Commission, the
ISE included stat ements 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 ISE has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
1. Purpose
June 26, 2007.
9 17
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fee Changes
8 15
change is available at the ISE, at the
Commission’s Public Reference Room,
and on the ISE’s Web site (https://
www.iseoptions.com/legal/
proposed_rule_changes.asp).
The Exchange is proposing to amend
its Schedule of Fees to establish fees for
transactions in options on the following
four Premium Products: First Trust
ISE—Revere Natural Gas Index Fund
(‘‘FCG’’), First Trust ISE Water Index
Fund (‘‘FIW’’), the SPDR S&P Metals &
Mining ETF (‘‘XME’’),6 and the KBW
Mortgage Finance Index (‘‘MFX’’). The
Exchange represents that FCG, FIW, and
XME are eligible for options trading
because they constitute ‘‘Fund Shares,’’
as defined by ISE Rule 502(h). The
Exchange further represents that MFX
meets the standards of ISE Rule 2002(b),
which allows the ISE to begin trading
this product by filing Form 19b–4(e) at
least five business days after
commencement of trading this new
product pursuant to Rule 19b–4(e)
6 ‘‘Standard & Poor’s,’’ ‘‘S&P,’’ ‘‘S&P 500,’’
‘‘Standard & Poor’s 500,’’ ‘‘Standard & Poor’s
Depositary Receipts,’’ ‘‘SPDR,’’ and ‘‘the S&P
Metals & Mining Select Industry Index,’’ are
trademarks of The McGraw-Hill Companies, Inc.
(‘‘McGraw-Hill’’), and have been licensed for use by
State Street Bank and Trust in connection with the
listing and trading of XME. XME is not sponsored,
sold or endorsed by Standard & Poor’s, (‘‘S&P’’), a
division of McGraw-Hill, and S&P makes no
representation regarding the advisability of
investing in XME. McGraw-Hill and S&P have not
licensed or authorized ISE to: (i) engage in the
creation, listing, provision of a market for trading,
marketing, and promotion of options on XME; or (ii)
use and refer to any of their trademarks or service
marks in connection with the listing, provision of
a market for trading, marketing, and promotion of
options on XME or with making disclosures
concerning options on XME under any applicable
federal or state laws, rules or regulations. McGrawHill and S&P do not sponsor, endorse, or promote
such activity by ISE and are not affiliated in any
manner with ISE.
PO 00000
Frm 00117
Fmt 4703
Sfmt 4703
36083
under the Act.7 The ISE represents that
it submitted Form 19b–4(e) to the
Commission on June 19, 2007.
All of the applicable fees covered by
this filing are identical to fees charged
by the Exchange for all other Premium
Products. Specifically, the Exchange is
proposing to adopt an execution fee and
a comparison fee for all transactions in
options on FCG, FIW, XME and MFX.8
The amount of the execution fee and
comparison fee for products covered by
this filing shall be $0.15 and $0.03 per
contract, respectively, for all Public
Customer Orders 9 and Firm Proprietary
orders. The amount of the execution fee
and comparison fee for all ISE Market
Maker transactions shall be equal to the
execution fee and comparison fee
currently charged by the Exchange for
ISE Market Maker transactions in equity
options.10 Finally, the amount of the
execution fee and comparison fee for all
non-ISE Market Maker transactions shall
be $0.37 and $0.03 per contract,
respectively.
Additionally, the Exchange has
entered into a license agreement with
Keefe, Bruyette & Woods, Inc. in
connection with the listing and trading
of options on MFX. As with certain
other licensed options, to defray the
licensing costs, the Exchange is
adopting a surcharge fee of $0.10 per
contract for trading in options on MFX.
The Exchange believes charging the
participants that trade this instrument is
the most equitable means of recovering
the costs of the license. However,
because of competitive pressures in the
industry, the Exchange proposes to
exclude Public Customer Orders from
this surcharge fee. Accordingly, this
surcharge fee will only be charged to
Exchange members with respect to nonPublic Customer Orders (e.g., ISE
Market Maker, non-ISE Market Maker &
Firm Proprietary orders) and shall apply
7 17
CFR 240.19b–4(e).
fees will be charged only to Exchange
members. Under a pilot program that is set to expire
on July 31, 2007, these fees will also be charged to
Principal Orders and Principal Acting as Agent
Orders. See ISE Rule 1900(10). See also Securities
Exchange Act Release No. 54204 (July 25, 2006), 71
FR 43548 (August 1, 2006) (SR–ISE–2006–38)
(‘‘Linkage Orders Pilot’’). Telephone conversation
between Samir Patel, Assistant General Counsel,
ISE, and Sara Gillis, Attorney, Division of Market
Regulation, Commission, on June 26, 2007.
9 ‘‘Public Customer Order’’ is defined in ISE Rule
100(a)(39) as an order for the account of a Public
Customer. ‘‘Public Customer’’ is defined in ISE Rule
100(a)(38) as a person that is not a broker or dealer
in securities.
10 The execution fee is currently between $0.21
and $0.12 per contract side, depending on the
Exchange Average Daily Volume, and the
comparison fee is currently $0.03 per contract side.
8 These
E:\FR\FM\02JYN1.SGM
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]]>Agencies
[Federal Register Volume 72, Number 126 (Monday, July 2, 2007)]
[Notices]
[Pages 36082-36083]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-12675]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55950; File No. SR-BSE-2007-09]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order
Approving a Proposed Rule Change as Modified by Amendment No. 1 Thereto
Relating to Appointment of Market Makers
June 25, 2007.
I. Introduction
On February 20, 2007, the Boston Stock Exchange, Inc. (``BSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to grant the authority for the Exchange to approve
Market Maker appointments instead of the Board or a committee
designated by the Board and to provide a process for those Market
Makers who wish to withdraw from trading an option issue within their
appointment. The Exchange filed Amendment No. 1 to the proposed rule
change on May 11, 2007. The proposed rule change, as amended, was
published for comment in the Federal Register on May 23, 2007.\3\ The
Commission received no comments on the proposal.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 55774 (May 16,
2007), 72 FR 29019.
---------------------------------------------------------------------------
II. Description of the Proposal
The Exchange proposes to amend Section 4 (Appointment of Market
Makers) of Chapter VI of the BOX Rules to grant the authority for the
Exchange to approve Market Maker appointments instead of the Board or
committee designated by the Board, as the rule currently states. This
proposed change would allow the regulatory staff of the Exchange to
approve Market Maker appointments. According to the Exchange, the BSE
regulatory staff is more accessible than the Board and this change
would help with the expediency of the Market Marker allocation approval
process.
The Exchange also has proposed to add a provision to establish a
process for those Market Makers who wish to withdraw from trading an
option issue within their appointment.\4\ A Market Maker may withdraw
from an appointment as long as the Market Maker provides BOX with three
business days written notice of its intent to withdraw from an
appointment. If such written notice is not provided to BOX, then the
Market Maker may be subject to formal disciplinary action.
---------------------------------------------------------------------------
\4\ See Proposed Section 4, subparagraph (i), Chapter VI of the
BOX Rules.
---------------------------------------------------------------------------
III. Discussion
After careful review, the Commission finds that the proposed rule
change, as amended, is consistent with the requirements of the Act and
the rules and regulations thereunder applicable to a national
securities exchange \5\ and, in particular, the requirements of Section
6 of the Act.\6\ Specifically, the Commission finds that the proposal
is consistent with Section 6(b)(5) of the Act,\7\ in that the proposal
has been designed to promote just and equitable principles of trade,
and to protect investors and the public interest. The Commission
believes the proposal to grant the Exchange the authority to approve
Market Maker appointments, instead of the Board, should help make the
Market Marker allocation approval process more efficient, thereby
potentially increasing liquidity on the Exchange. The proposal also
provides transparency to the Exchange's process governing Market Makers
who wish to
[[Page 36083]]
withdraw from trading an option issue within their appointment.
---------------------------------------------------------------------------
\5\ The Commission has considered the amended proposed rule
change's impact on efficiency, competition and capital formation. 15
U.S.C. 78c(f).
\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (SR-BSE-2007-09), as modified by
Amendment No. 1, is approved.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-12675 Filed 6-29-07; 8:45 am]
BILLING CODE 8010-01-P
