Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the One Week Option Series Pilot Program, 39653-39654 [E7-13958]

Download as PDF Federal Register / Vol. 72, No. 138 / Thursday, July 19, 2007 / Notices you wish to make available publicly. All submissions should refer to File Number SR–NYSE–2007–60 and should be submitted on or before August 9, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Nancy M. Morris, Secretary. [FR Doc. E7–13960 Filed 7–18–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56048; File No. SR– NYSEArca–2007–62] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the One Week Option Series Pilot Program 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 July 3, 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. cprice-sewell on PROD1PC66 with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange is proposing to amend its rules to extend the One Week Option Series pilot program (‘‘Pilot Program’’) for an additional one-year period, through July 12, 2008. The text of the proposed rule change is available on the Exchange’s Web site (http:// www.nysearca.com), at the Exchange’s principal office, and at the Commission’s Public Reference Room. 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 15:31 Jul 18, 2007 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose On July 12, 2005, the Commission approved the Pilot Program,5 which allows NYSE Arca to list and trade One Week Option Series. Under the terms of the Pilot Program, the Exchange can select up to five options classes on which One Week Option Series may be opened on any One Week Option Opening Date. The Exchange is also allowed to list One Week Option Series on any option class that is selected by other securities exchanges that employ a similar Pilot Program under their respective rules. The Pilot Program currently expires on July 12, 2007.6 The purpose of this proposal is to extend the Pilot Program for one year, through July 12, 2008. The Exchange believes that the Pilot Program provides investors with a flexible and valuable tool to manage risk exposure, minimize capital outlays, and be more responsive to the timing of events affecting the securities that underlie option contracts. While NYSE Arca has not listed any One Week Option Series during the Pilot Program, there has been investor interest in trading short-term options at the Chicago Board Options Exchange. In order to have the ability to respond to customer interest if warranted, the Exchange proposes the continuation of the Pilot Program at NYSE Arca. In the original proposal to establish the Pilot Program, the Exchange stated that if it were to propose an extension or an expansion of the program, the Exchange would submit, along with any filing proposing such amendments to 5 See Securities Exchange Act Release No. 34– 52013 (July 12, 2005), 70 FR 41471 (July 19, 2005) (File No. SR–PCX–2005–32). 6 See Securities Exchange Act Release No. 34– 54052 (June 27, 2006), 71 FR 38679 (July 7, 2006) (File No. SR–NYSEArca–2006–29). 10 17 VerDate Aug<31>2005 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. Jkt 211001 PO 00000 Frm 00049 Fmt 4703 Sfmt 4703 39653 the program, a Pilot Program report (‘‘Report’’). The Report would provide an analysis of the Pilot Program covering the entire period during which the Pilot Program was in effect. Since the Exchange did not have any One Week Option Series listed during the preceding year of the Pilot Program, there is no data available to compile such a report at this time. Therefore, there is no Report associated with the program included with this proposal to extend the pilot Program. The Exchange represents that it has the necessary system capacity needed to support any additional option series listed under the Pilot Program. 2. Statutory Basis The Exchange believes that the One Week Option Series can stimulate customer interest in options and provide a flexible and valuable tool to manage risk exposure, minimize capital outlays, and be more responsive to the timing of events affecting the securities that underlie option contracts. For these reasons, the Exchange believes the proposed rule change is consistent with the requirements of Section 6(b) of the Act 7 in general, and furthers the objectives of Section 6(b)(5) of the Act 8 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 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 believes that the proposed rule change will 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 Written comments on the proposed rule change were neither solicited nor received. 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 7 15 8 15 E:\FR\FM\19JYN1.SGM U.S.C. 78f(b). U.S.C. 78f(b)(5). 19JYN1 39654 Federal Register / Vol. 72, No. 138 / Thursday, July 19, 2007 / Notices 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 9 and subparagraph (f)(6) of Rule 19b–4 thereunder.10 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.11 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.12 Therefore, the Commission designates the proposal operative upon filing.13 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. 9 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 11 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. 12 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). 13 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 One Week Option 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 7, 2005. cprice-sewell on PROD1PC66 with NOTICES 10 17 VerDate Aug<31>2005 15:31 Jul 18, 2007 Jkt 211001 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: For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 Nancy M. Morris, Secretary. [FR Doc. E7–13958 Filed 7–18–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION 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 No. SR–NYSEArca–2007–62 on the subject line. Paper Comments [Release No. 34–56073; File No. SR– NYSEArca–2007–53] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Order Granting Accelerated Approval of a Proposed Rule Change Relating to Listing and Trading Options on Commodity Pool Units • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. July 13, 2007. 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–2007–62 and should be submitted on or before August 9, 2007. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 2 thereunder, notice is hereby given that on June 12, 2007, NYSE Arca, Inc. (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed with the Securities All submissions should refer to File and Exchange Commission Number SR–NYSEArca–2007–62. This (‘‘Commission’’) the proposed rule file number should be included on the subject line if e-mail is used. To help the change as described in Items I and II below, which Items have been Commission process and review your substantially prepared by the Exchange. comments more efficiently, please use only one method. The Commission will The Commission is publishing this notice to solicit comments on the post all comments on the Commissions proposed rule change, as amended, from Internet Web site (http://www.sec.gov/ interested persons and is approving the rules/sro.shtml). Copies of the proposal on an accelerated basis. submission, all subsequent PO 00000 Frm 00050 Fmt 4703 Sfmt 4703 The Exchange proposes to amend certain Exchange rules to permit the listing and trading of options on securities interest issued by trust issued receipts (‘‘TIRs’’), partnership units (‘‘Partnership Units’’), commodity based funds or trusts, and other entities (referred collectively herein as ‘‘Commodity Pool Units’’). The Exchange also proposes to make minor technical changes to the numbering of certain rules. The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, and http://www.nysearca.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 NYSE Arca included statements concerning the purpose of and basis for 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\19JYN1.SGM 19JYN1

Agencies

[Federal Register Volume 72, Number 138 (Thursday, July 19, 2007)]
[Notices]
[Pages 39653-39654]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-13958]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56048; File No. SR-NYSEArca-2007-62]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Extend the One 
Week Option Series Pilot Program

 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 July 3, 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is proposing to amend its rules to extend the One Week 
Option Series pilot program (``Pilot Program'') for an additional one-
year period, through July 12, 2008. The text of the proposed rule 
change is available on the Exchange's Web site (http://
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, 2005, the Commission approved the Pilot Program,\5\ 
which allows NYSE Arca to list and trade One Week Option Series. Under 
the terms of the Pilot Program, the Exchange can select up to five 
options classes on which One Week Option Series may be opened on any 
One Week Option Opening Date. The Exchange is also allowed to list One 
Week Option Series on any option class that is selected by other 
securities exchanges that employ a similar Pilot Program under their 
respective rules.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 34-52013 (July 12, 
2005), 70 FR 41471 (July 19, 2005) (File No. SR-PCX-2005-32).
---------------------------------------------------------------------------

    The Pilot Program currently expires on July 12, 2007.\6\ The 
purpose of this proposal is to extend the Pilot Program for one year, 
through July 12, 2008. The Exchange believes that the Pilot Program 
provides investors with a flexible and valuable tool to manage risk 
exposure, minimize capital outlays, and be more responsive to the 
timing of events affecting the securities that underlie option 
contracts. While NYSE Arca has not listed any One Week Option Series 
during the Pilot Program, there has been investor interest in trading 
short-term options at the Chicago Board Options Exchange. In order to 
have the ability to respond to customer interest if warranted, the 
Exchange proposes the continuation of the Pilot Program at NYSE Arca.
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 34-54052 (June 27, 
2006), 71 FR 38679 (July 7, 2006) (File No. SR-NYSEArca-2006-29).
---------------------------------------------------------------------------

    In the original proposal to establish the Pilot Program, the 
Exchange stated that if it were to propose an extension or an expansion 
of the program, the Exchange would submit, along with any filing 
proposing such amendments to the program, a Pilot Program report 
(``Report''). The Report would provide an analysis of the Pilot Program 
covering the entire period during which the Pilot Program was in 
effect. Since the Exchange did not have any One Week Option Series 
listed during the preceding year of the Pilot Program, there is no data 
available to compile such a report at this time. Therefore, there is no 
Report associated with the program included with this proposal to 
extend the pilot Program.
    The Exchange represents that it has the necessary system capacity 
needed to support any additional option series listed under the Pilot 
Program.
2. Statutory Basis
    The Exchange believes that the One Week Option Series can stimulate 
customer interest in options and provide a flexible and valuable tool 
to manage risk exposure, minimize capital outlays, and be more 
responsive to the timing of events affecting the securities that 
underlie option contracts. For these reasons, the Exchange believes the 
proposed rule change is consistent with the requirements of Section 
6(b) of the Act \7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \8\ 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 
for a free and open market and a national market system, and, in 
general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed rule change will 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

    Written comments on the proposed rule change were neither solicited 
nor received.

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

[[Page 39654]]

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 \9\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\ 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.\11\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 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.
---------------------------------------------------------------------------

    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.\12\ Therefore, the Commission designates the 
proposal operative upon filing.\13\
---------------------------------------------------------------------------

    \12\ 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).
    \13\ 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 One Week Option 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 7, 2005.
---------------------------------------------------------------------------

    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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-NYSEArca-2007-62 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-2007-62. 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 (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, 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-2007-62 and should 
be submitted on or before August 9, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-13958 Filed 7-18-07; 8:45 am]
BILLING CODE 8010-01-P