Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Quarterly Options Series Pilot Program for a Two-Week Period, 39112-39114 [E7-13748]
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39112
Federal Register / Vol. 72, No. 136 / Tuesday, July 17, 2007 / Notices
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, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of NASD. 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–NASD–2007–021 and
should be submitted on or before
August 7, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–13747 Filed 7–16–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56040; File No. SR–
NYSEArca–2007–67]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Quarterly
Options Series Pilot Program for a
Two-Week Period
sroberts on PROD1PC70 with NOTICES
July 10, 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 July 10,
2007, NYSE Arca, Inc. (‘‘Exchange’’ or
‘‘NYSE Arca’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been
substantially prepared by the Exchange.
The Exchange has designated this
proposal as non-controversial under
section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder,4 which
renders the proposed rule change
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
12 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)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
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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 is proposing to extend
the Quarterly Options Series pilot
program (‘‘Pilot Program’’) for an
additional two-week period, through
July 24, 2007, and to amend Rule 5.19(a)
regarding the restriction on the number
of strike prices for Quarterly Options
Series based on an underlying index.
The text of the proposed rule change is
available on the Exchange’s Web site
(https://www.nysearca.com), 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 IV 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
On July 12, 2006, the Exchange filed
with the Commission a proposed rule
change that allowed it to establish the
Pilot Program, pursuant to which the
Exchange lists and trades Quarterly
Options Series.5 The rule change was
effective upon filing. The Exchange
hereby proposes to extend the Pilot
Program for an additional two-week
period, so that it will expire on July 24,
2007.6
In the Pilot Program Release, the
Exchange stated that it would submit, in
connection with any proposed
extension of the Pilot Program, a Pilot
Program Report (‘‘Report’’) that would
provide an analysis of the Pilot Program
5 See Securities Exchange Act Release No. 54166
(July 18, 2006), 71 FR 42151 (July 25, 2006) (File
No. SR–NYSEArca–2006–45) (‘‘Pilot Program
Release’’).
6 At the end of this proposed two-week extension,
NYSE Arca will submit a subsequent proposal to
the Commission, in conjunction with a report on
the Pilot Program, requesting that the Pilot Program
be extended until July 10, 2008.
PO 00000
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Fmt 4703
Sfmt 4703
covering the entire period which the
program was in effect. The Report will
include: (1) Data and written analysis on
the open interest and trading volume in
the classes for which Quarterly Options
Series were opened; (2) an assessment of
the appropriateness of the option classes
selected for the Pilot Program; (3) an
assessment of the impact of the Pilot
Program on the capacity on the
Exchange, OPRA, and market data
vendors (to the extent data from market
data vendors is available); (4) any
capacity problems or other problems
that arose during the operation of the
Pilot Program and how the Exchange
addressed such problems; (5) any
complaints that the Exchange received
during the operation of the Pilot
Program and how the Exchange
addressed them; and (6) any additional
information that would assist the
Commission in assessing the operation
of the Pilot Program. The Exchange
plans to submit the Report in
connection with a proposal that will
extend the Pilot Program until July 10,
2008. This proposal and Report will be
filed with the Commission at the
conclusion of the proposed two-week
extension.
The Exchange also proposes at this
time to add a provision to Rule 5.19(a)
regarding the limitations on the number
of strikes the Exchange may list for
Quarterly Options Series based on an
underlying index. These changes mirror
provisions previously submitted by the
Chicago Board Options Exchange
(‘‘CBOE’’) and approved by the
Commission.7 The Exchange proposes
to: (1) Limit the number of strike prices
that the Exchange may initially open for
Quarterly Options Series to five strike
prices above and five below the value of
the underlying index; (2) clarify that the
Exchange may open for trading
additional Quarterly Options Series of
the same class when the Exchange
deems such action necessary to
maintain an orderly market or meet
customer demand, provided that the
additional series priced above (below)
the value of the underlying index do not
cause there to be more than five strike
process above (below) the value of the
underlying index; and (3) clarify that
the opening of any new Quarterly
Options Series will not affect the
previously opened series of the same
class. These changes are based on CBOE
Rule 24.9 and are shown in Exhibit 5 to
the proposed rule change on Form 19b–
4 filed with the Commission.
7 See Securities Exchange Act Release No. 54762
(November 16, 2006), 71 FR 67663 (November 22,
2006) (File No. SR–CBOE–2006–93).
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Federal Register / Vol. 72, No. 136 / Tuesday, July 17, 2007 / Notices
Finally, NYSE Arca represents that
the Exchange has the necessary system
capacity to support any additional series
listed as part of the Pilot Program.
2. Statutory Basis
The Exchange believes that the
continuation of the Quarterly Options
Series Pilot Program will stimulate
customer interest in options by creating
greater trading opportunities and
flexibility in investment choices. The
Exchange further believes that
continuation of the Pilot Program will
provide the ability to more closely tailor
investment strategies and provide a
valuable hedging tool for investors. For
these reasons, the Exchange believes the
proposed rule change is consistent with
the Act and the rules and regulations
thereunder and, in particular, the
requirements of section 6(b) of the Act.8
Specifically, the Exchange believes the
proposed rule change is consistent with
of section 6(b)(5) of the Act,9 which
requires that the rules of an exchange be
designed to promote just and equitable
principles of trade, to prevent
fraudulent and manipulative acts, to
remove impediments to and perfect the
mechanism for 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.
sroberts on PROD1PC70 with 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
The Exchange has designated the
proposed rule change as one that: (1)
Does not significantly affect the
protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) does not become operative for 30
days from the date of filing, or such
shorter time as the Commission may
designate if consistent with the
protection of investors and the public
interest. Therefore, the foregoing rule
8 15
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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17:40 Jul 16, 2007
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change has become effective pursuant to
section 19(b)(3)(A) of the Act 10 and
subparagraph (f)(6) of Rule 19b–4
thereunder.11 The Exchange has asked
the Commission to waive the operative
delay to permit the Pilot Program
extension to become operative prior to
the 30th day after filing.12
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it will allow the benefits of the
Pilot Program to continue without
interruption.13 Therefore, the
Commission designates the proposal
operative upon filing. The Commission,
in deciding to waive the operative delay
in order to allow the Pilot Program to
continue uninterrupted for the proposed
two-week extension, has relied on the
Exchange’s representation that it will
submit the Report as required by the
Pilot Program on or before the
expiration of the extension period (i.e.,
July 24, 2007).14
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
the 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.
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
12 As required under Rule 19b–4(f)(6)(iii), the
Exchange provided the Commission with written
notice of its intent to file the proposed rule change
at least five business before doing so.
13 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
14 As set forth in the Exchange’s original filing
proposing the Pilot Program, if the Exchange were
to propose an extension, an expansion, or
permanent approval of the Pilot Program, the
Exchange would submit, along with any filing
proposing such amendments to the program, a
report that would provide an analysis of the Pilot
Program covering the entire period during which
the Pilot Program was in effect. The report would
include, at a minimum: (1) Data and written
analysis on the open interest and trading volume in
the classes for which Quarterly Options Series were
opened; (2) an assessment of the appropriateness of
the option classes selected for the Pilot Program; (3)
an assessment of the impact of the Pilot Program on
the capacity of the Exchange, OPRA, and market
data vendors (to the extent data from market data
vendors is available); (4) any capacity problems or
other problems that arose during the operation of
the Pilot Program and how the Exchange addressed
such problems; (5) any complaints that the
Exchange received during the operation of the Pilot
Program and how the Exchange addressed them;
and (6) any additional information that would assist
in assessing the operation of the Pilot Program. The
report must be submitted to the Commission at least
sixty (60) days prior to the expiration date of the
Pilot Program. See Form 19b–4 for File No. SR–
PCX–2005–32, filed March 16, 2005.
PO 00000
10 15
11 17
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39113
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
No. SR–NYSEArca–2007–67 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–NYSEArca–2007–67. 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 Commissions
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
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–NYSEArca–2007–67 and
should be submitted on or August 7,
2007.
E:\FR\FM\17JYN1.SGM
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39114
Federal Register / Vol. 72, No. 136 / Tuesday, July 17, 2007 / Notices
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–13748 Filed 7–16–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56041; File No. SR–
NYSEArca–2007–43]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and Order
Granting Accelerated Approval of
Proposed Rule Change To List and
Trade Shares of the iShares COMEX
Gold Trust
July 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 11,
2007, NYSE Arca, Inc. (the ‘‘Exchange’’),
through its wholly-owned subsidiary,
NYSE Arca Equities, Inc. (‘‘NYSE Arca
Equities’’), filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
have been substantially prepared by the
Exchange. This order provides notice of
the proposed rule change and approves
the proposed rule change on an
accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to list and
trade shares (‘‘Shares’’) of the iShares 3
COMEX 4 Gold Trust (‘‘Trust’’)
pursuant to NYSE Arca Equities Rule
8.201. The text of the proposed rule
change is available at the Exchange, the
Commission’s Public Reference Room,
and https://www.nyse.com.
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 ‘‘iShares’’ is a registered trademark of Barclays
Global Investors, N.A.
4 ‘‘COMEX’’ is a registered service mark of
Commodity Exchange, Inc., a subsidiary of the New
York Mercantile Exchange, Inc. (‘‘NYMEX’’).
COMEX is operated by Commodity Exchange, Inc.
and the Tokyo Commodity Exchange. Open outcry
trading of gold futures on COMEX is conducted
from 8:20 a.m. Eastern Time (‘‘ET’’) until 1:30 p.m.
ET, and electronic trading of such gold futures is
conducted from 6 p.m. ET until 5:15 p.m. ET via
the CME Globex trading platform, Sunday
through Friday. Thus, except for brief breaks (45
minutes) to switch between open outcry and
electronic trading in the evening and the morning,
gold futures trade almost 24 hours per day, five
business days per week.
sroberts on PROD1PC70 with NOTICES
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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
Pursuant to NYSE Arca Equities Rule
8.201, which permits the trading of
Commodity-Based Trust Shares 5 either
by listing or pursuant to unlisted trading
privileges (‘‘UTP’’), the Exchange
proposes to list and trade the Shares.
The Shares are currently listed on the
American Stock Exchange LLC
(‘‘Amex’’),6 and the Exchange currently
trades the Shares pursuant to UTP.7 The
Exchange represents that the Shares
satisfy the requirements of NYSE Arca
Equities Rule 8.201 and thereby qualify
for listing on the Exchange.
The Shares represent beneficial
ownership interests in the net assets of
the Trust, which holds gold bullion. The
objective of the Trust is for the value of
the Shares to reflect, at any given time,
the price of gold owned by the Trust at
that time, less the Trust’s expenses and
liabilities. The Trust is not actively
managed and does not engage in any
activities designed to obtain a profit
from, or to ameliorate losses caused by,
5 As defined in NYSE Arca Equities Rule
8.201(c)(1), ‘‘Commodity-Based Trust Shares’’ are
securities that: (1) Are issued by a trust that holds
a specified commodity deposited with the trust; (2)
are issued by such trust in a specified aggregate
minimum number in return for a deposit of a
quantity of the underlying commodity; and (3)
when aggregated in the same specified minimum
number, may be redeemed at a holder’s request by
such trust which would deliver to the redeeming
holder the quantity of the underlying commodity.
6 See Securities Exchange Act Release No. 51058
(January 19, 2005), 70 FR 3749 (January 26, 2005)
(SR–Amex–2004–38) (granting approval to list and
trade the Shares on Amex). See also Securities
Exchange Act Release No. 50792 (December 3,
2004), 69 FR 71446 (December 9, 2004) (SR–Amex–
2004–38) (providing notice of Amex’s proposal to
list and trade the Shares) (‘‘Amex Notice’’).
7 See Securities Exchange Act Release No. 51067
(January 21, 2005), 70 FR 3952 (January 27, 2005)
(SR–PCX–2004–132) (approving NYSE Arca
Equities Rule 8.201 and the trading of the Shares
pursuant to UTP) (‘‘UTP Order’’).
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
changes in the price of gold. The Trust
is neither an investment company
registered under the Investment
Company Act of 1940 nor a commodity
pool for purposes of the Commodity
Exchange Act.8 Barclays Global
Investors International Inc., a Delaware
corporation and a subsidiary of Barclays
Bank PLC, is the sponsor of the Trust
(‘‘Sponsor’’). The Shares are not
obligations of, and are not guaranteed
by, the Sponsor or any of its respective
subsidiaries or affiliates.
A detailed discussion of the gold
market, including the over-the-counter
gold market and the gold futures
exchanges, gold market regulation,
COMEX gold futures contracts, the
process for creations and redemptions of
the Shares, certificates evidencing the
Shares, and Trust distributions, among
others, can be found in the Amex Notice
and in the Trust Prospectus.9
The Web site for the Trust at https://
www.ishares.com, which is publicly
accessible at no charge, contains the
following information about the Shares:
(a) The prior business day’s net asset
value (‘‘NAV’’) per Share; 10 (b) Basket
Gold Amount; 11 (c) the reported Share
closing price; (d) the present day’s
Indicative Basket Gold Amount; 12 (e)
the mid-point of the bid-ask price in
relation to the NAV as of the time the
8 The Exchange states that the Trust does not
trade in gold futures contracts. The Trust takes
delivery of physical gold that complies with certain
gold delivery rules. Because the Trust does not
trade in gold futures contracts on any futures
exchange, the Trust is not regulated as a commodity
pool, and is not operated by a commodity pool
operator.
9 See supra note 6; see also iShares COMEX Gold
Trust Prospectus dated March 1, 2007 (Registration
Statement No. 333–140874) (‘‘Prospectus’’). E-mail
from Timothy J. Malinowski, Director, NYSE Group,
Inc., to Edward Cho, Special Counsel, Division of
Market Regulation, Commission, dated July 11,
2007 (confirming that additional information on the
gold markets, the Trust, and the Shares can be
found in the Amex Notice and the Prospectus, as
supplemented).
10 The Exchange states that it would obtain a
representation from the Trust, prior to listing, that
the NAV per Share would be calculated daily and
made available to all market participants at the
same time.
11 The ‘‘Basket Gold Amount’’ is the
corresponding amount of gold, measured in fine
ounces, to be exchanged for an issuance of a basket
of 50,000 Shares (each such basket, a ‘‘Basket’’), for
the purpose of creating and redeeming the Shares.
12 The ‘‘Indicative Basket Gold Amount’’ is the
indicative amount of gold to be deposited for
issuance of the Shares that Authorized Participants
can use. Because the creation/redemption process is
based entirely on the physical delivery of gold (and
does not contemplate a cash component), the actual
number of fine ounces required for the Indicative
Basket Gold Amount would not change intra-day,
even though the value of the Indicative Basket Gold
Amount may change based on the market price of
gold.
E:\FR\FM\17JYN1.SGM
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]]>Agencies
[Federal Register Volume 72, Number 136 (Tuesday, July 17, 2007)]
[Notices]
[Pages 39112-39114]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-13748]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56040; File No. SR-NYSEArca-2007-67]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Extend the
Quarterly Options Series Pilot Program for a Two-Week Period
July 10, 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 July 10, 2007, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been substantially prepared by the Exchange. The Exchange has
designated this proposal as non-controversial under section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\
which renders the proposed rule change effective upon filing with the
Commission. 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).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to extend the Quarterly Options Series
pilot program (``Pilot Program'') for an additional two-week period,
through July 24, 2007, and to amend Rule 5.19(a) regarding the
restriction on the number of strike prices for Quarterly Options Series
based on an underlying index. The text of the proposed rule change is
available on the Exchange's Web site (https://www.nysearca.com), 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 IV 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
On July 12, 2006, the Exchange filed with the Commission a proposed
rule change that allowed it to establish the Pilot Program, pursuant to
which the Exchange lists and trades Quarterly Options Series.\5\ The
rule change was effective upon filing. The Exchange hereby proposes to
extend the Pilot Program for an additional two-week period, so that it
will expire on July 24, 2007.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 54166 (July 18,
2006), 71 FR 42151 (July 25, 2006) (File No. SR-NYSEArca-2006-45)
(``Pilot Program Release'').
\6\ At the end of this proposed two-week extension, NYSE Arca
will submit a subsequent proposal to the Commission, in conjunction
with a report on the Pilot Program, requesting that the Pilot
Program be extended until July 10, 2008.
---------------------------------------------------------------------------
In the Pilot Program Release, the Exchange stated that it would
submit, in connection with any proposed extension of the Pilot Program,
a Pilot Program Report (``Report'') that would provide an analysis of
the Pilot Program covering the entire period which the program was in
effect. The Report will include: (1) Data and written analysis on the
open interest and trading volume in the classes for which Quarterly
Options Series were opened; (2) an assessment of the appropriateness of
the option classes selected for the Pilot Program; (3) an assessment of
the impact of the Pilot Program on the capacity on the Exchange, OPRA,
and market data vendors (to the extent data from market data vendors is
available); (4) any capacity problems or other problems that arose
during the operation of the Pilot Program and how the Exchange
addressed such problems; (5) any complaints that the Exchange received
during the operation of the Pilot Program and how the Exchange
addressed them; and (6) any additional information that would assist
the Commission in assessing the operation of the Pilot Program. The
Exchange plans to submit the Report in connection with a proposal that
will extend the Pilot Program until July 10, 2008. This proposal and
Report will be filed with the Commission at the conclusion of the
proposed two-week extension.
The Exchange also proposes at this time to add a provision to Rule
5.19(a) regarding the limitations on the number of strikes the Exchange
may list for Quarterly Options Series based on an underlying index.
These changes mirror provisions previously submitted by the Chicago
Board Options Exchange (``CBOE'') and approved by the Commission.\7\
The Exchange proposes to: (1) Limit the number of strike prices that
the Exchange may initially open for Quarterly Options Series to five
strike prices above and five below the value of the underlying index;
(2) clarify that the Exchange may open for trading additional Quarterly
Options Series of the same class when the Exchange deems such action
necessary to maintain an orderly market or meet customer demand,
provided that the additional series priced above (below) the value of
the underlying index do not cause there to be more than five strike
process above (below) the value of the underlying index; and (3)
clarify that the opening of any new Quarterly Options Series will not
affect the previously opened series of the same class. These changes
are based on CBOE Rule 24.9 and are shown in Exhibit 5 to the proposed
rule change on Form 19b-4 filed with the Commission.
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\7\ See Securities Exchange Act Release No. 54762 (November 16,
2006), 71 FR 67663 (November 22, 2006) (File No. SR-CBOE-2006-93).
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[[Page 39113]]
Finally, NYSE Arca represents that the Exchange has the necessary
system capacity to support any additional series listed as part of the
Pilot Program.
2. Statutory Basis
The Exchange believes that the continuation of the Quarterly
Options Series Pilot Program will stimulate customer interest in
options by creating greater trading opportunities and flexibility in
investment choices. The Exchange further believes that continuation of
the Pilot Program will provide the ability to more closely tailor
investment strategies and provide a valuable hedging tool for
investors. For these reasons, the Exchange believes the proposed rule
change is consistent with the Act and the rules and regulations
thereunder and, in particular, the requirements of section 6(b) of the
Act.\8\ Specifically, the Exchange believes the proposed rule change is
consistent with of section 6(b)(5) of the Act,\9\ which requires that
the rules of an exchange be designed to promote just and equitable
principles of trade, to prevent fraudulent and manipulative acts, to
remove impediments to and perfect the mechanism for a free and open
market and a national market system, and, in general, to protect
investors and the public interest.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
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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 Exchange has designated the proposed rule change as one that:
(1) Does not significantly affect the protection of investors or the
public interest; (2) does not impose any significant burden on
competition; and (3) does not become operative for 30 days from the
date of filing, or such shorter time as the Commission may designate if
consistent with the protection of investors and the public interest.
Therefore, the foregoing rule change has become effective pursuant to
section 19(b)(3)(A) of the Act \10\ and subparagraph (f)(6) of Rule
19b-4 thereunder.\11\ The Exchange has asked the Commission to waive
the operative delay to permit the Pilot Program extension to become
operative prior to the 30th day after filing.\12\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ As required under Rule 19b-4(f)(6)(iii), the Exchange
provided the Commission with written notice of its intent to file
the proposed rule change at least five business before doing so.
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it will allow the benefits of the Pilot Program to continue
without interruption.\13\ Therefore, the Commission designates the
proposal operative upon filing. The Commission, in deciding to waive
the operative delay in order to allow the Pilot Program to continue
uninterrupted for the proposed two-week extension, has relied on the
Exchange's representation that it will submit the Report as required by
the Pilot Program on or before the expiration of the extension period
(i.e., July 24, 2007).\14\
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\13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
\14\ As set forth in the Exchange's original filing proposing
the Pilot Program, if the Exchange were to propose an extension, an
expansion, or permanent approval of the Pilot Program, the Exchange
would submit, along with any filing proposing such amendments to the
program, a report that would provide an analysis of the Pilot
Program covering the entire period during which the Pilot Program
was in effect. The report would include, at a minimum: (1) Data and
written analysis on the open interest and trading volume in the
classes for which Quarterly Options Series were opened; (2) an
assessment of the appropriateness of the option classes selected for
the Pilot Program; (3) an assessment of the impact of the Pilot
Program on the capacity of the Exchange, OPRA, and market data
vendors (to the extent data from market data vendors is available);
(4) any capacity problems or other problems that arose during the
operation of the Pilot Program and how the Exchange addressed such
problems; (5) any complaints that the Exchange received during the
operation of the Pilot Program and how the Exchange addressed them;
and (6) any additional information that would assist in assessing
the operation of the Pilot Program. The report must be submitted to
the Commission at least sixty (60) days prior to the expiration date
of the Pilot Program. See Form 19b-4 for File No. SR-PCX-2005-32,
filed March 16, 2005.
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate the 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:
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 No. SR-NYSEArca-2007-67 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-NYSEArca-2007-67. 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 Commissions Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. 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-NYSEArca-2007-67 and should
be submitted on or August 7, 2007.
[[Page 39114]]
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-13748 Filed 7-16-07; 8:45 am]
BILLING CODE 8010-01-P
