Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Modify Provisions Relating to Cross With Yield Orders, 39865-39866 [E7-14037]

Download as PDF mstockstill on PROD1PC66 with NOTICES Federal Register / Vol. 72, No. 139 / Friday, July 20, 2007 / Notices and to determine what action, if any, should be taken in response to any such conflict. 11. If and to the extent that Rule 6e– 2 and Rule 6e–3(T) under the 1940 Act are amended, or proposed Rule 6e–3 under the 1940 Act is adopted, to provide exemptive relief from any provision of the 1940 Act, or the rules promulgated thereunder, with respect to mixed or shared funding, on terms and conditions materially different from any exemptions granted in the order requested in the Application, then the Fund and/or Participating Insurance Companies, as appropriate, shall take such steps as may be necessary to comply with Rules 6e–2 and 6e–3(T), or Rule 6e–3, as such rules are applicable. 12. The Participants, at least annually, will submit to the Board such reports, materials, or data as a Board reasonably may request so that the trustees of the Board may fully carry out the obligations imposed upon the Board by the conditions contained in the Application. Such reports, materials, and data will be submitted more frequently if deemed appropriate by the Board. The obligations of the Participants to provide these reports, materials, and data to the Board, when it so reasonably requests, will be a contractual obligation of all Participants under their agreements governing participation in the Portfolios. 13. All reports of potential or existing conflicts received by the Board, and all Board action with regard to determining the existence of a conflict, notifying Participants of a conflict, and determining whether any proposed action adequately remedies a conflict, will be properly recorded in the minutes of the Board or other appropriate records, and such minutes or other records shall be made available to the Commission upon request. 14. The Fund will not accept a purchase order from a Qualified Plan if such purchase would make the Qualified Plan shareholder an owner of 10 percent or more of the assets of a Portfolio unless the Trustees of such Qualified Plan execute an agreement with the Fund governing participation in such Portfolio that includes the conditions set forth herein to the extent applicable. The Trustees of a Qualified Plan will execute an application containing an acknowledgment of this condition at the time of its initial purchase of shares of any Portfolio. Conclusions Applicants submit that, for the reasons summarized above and to the extent necessary or appropriate to provide for the transactions described VerDate Aug<31>2005 16:19 Jul 19, 2007 Jkt 211001 herein, the requested exemptions from sections 9(a), 13(a), 15(a), and 15(b) of the 1940 Act and Rules 6e–2(b)(15) and 6e–3(T)(b)(15) thereunder, in accordance with the standards of section 6(c) of the 1940 Act, are in the public interest and consistent with the protection of investors and the purposes fairly intended by the policy and provisions of the 1940 Act. For the Commission, by the Division of Investment Management, pursuant to delegated authority. Florence E. Harmon, Deputy Secretary. [FR Doc. E7–14028 Filed 7–19–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56064; File No. SR–CHX– 2006–42] Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Modify Provisions Relating to Cross With Yield Orders July 13, 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 December 22, 2006, the Chicago Stock Exchange, Inc. (‘‘CHX’’ 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 CHX. On July 6, 2007, the Exchange filed Amendment No. 1 to the proposed rule change.3 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The CHX proposes to amend its rules to permit participants submitting ‘‘cross U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Amendment No. 1, which replaced the original filing in its entirety, removed a proposal that would have allowed the Exchange’s Matching System to reprice sell short mid-point cross orders. The Exchange believes that such repricing is no longer necessary due to the Commission’s recent decision to eliminate Rule 10a–1 and all similar pricing tests that might be applied to sell short orders. See Securities Exchange Act Release No. 55970 (June 28, 2007), 72 FR 36348 (July 3, 2007). Amendment No. 1 also removed a proposed effective date for the new order type and made other small wording changes to the narrative description. PO 00000 1 15 2 17 Frm 00082 Fmt 4703 Sfmt 4703 39865 with yield’’ orders to elect to yield to undisplayed interest. The text of this proposed rule change is available at the Exchange, on the Exchange’s Web site at: http://www.chx.com/rules/ proposed_rules.htm, and in 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 CHX 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 CHX 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 As part of the Exchange’s new trading model, the CHX offers its participants a wide variety of order types that may be submitted to the CHX and its central matching engine (‘‘Matching System’’).4 As the CHX and its participants gain familiarity with this new trading model, further dialogue with participant firms, as well as industry developments, will likely necessitate further refinement of the CHX new trading model rules, including the sort of order type enhancement proposed in this submission. This proposed rule change would amend the definition of a ‘‘cross with yield’’ order to permit a CHX participant to elect to yield to undisplayed market interest in addition to bids and offers that are displayed in the Matching System. This change is consistent with the purpose of a cross with yield order—a participant selects this type of order because it wants its customer order to interact with available market interest. This proposal, which simply expands the types of orders to which a participant’s interest would yield, is reflected in changes to Article 1, Rule 2(h) and Article 20, Rules 4(b)(7) and 8(e) of the Exchange’s rules. 2. Statutory Basis The CHX believes the proposal is consistent with the requirements of the Act and the rules and regulations 4 See, e.g., CHX Article 1, Rule 2 and CHX Article 20, Rule 4 (outlining the range of available order types). E:\FR\FM\20JYN1.SGM 20JYN1 39866 Federal Register / Vol. 72, No. 139 / Friday, July 20, 2007 / Notices thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of section 6(b).5 The CHX believes the proposal is consistent with section 6(b)(5) of the Act 6 in that it is designed to promote just and equitable principles of trade, to remove impediments to, and to perfect the mechanism of, a free and open market and a national market system, and, in general, to protect investors and the public interest by permitting the Exchange to further refine its product offerings. 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. 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 received. 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 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: Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–CHX–2006–42. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, 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–CHX–2006–42 and should be submitted on or before August 10, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.7 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–14037 Filed 7–19–07; 8:45 am] BILLING CODE 8010–01–P mstockstill on PROD1PC66 with NOTICES Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to: rulecomments@sec.gov. Please include File Number SR–CHX–2006–42 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56068; File No. SR– NASDAQ–2007–062] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Exclude Partial Trading Days From the Calculation of a Member’s Average Daily Volume July 13, 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 June 21, 2007, The NASDAQ Stock Market LLC (‘‘Nasdaq’’) 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 Nasdaq. Nasdaq has filed the proposal pursuant to section 19(b)(3)(A) 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 Nasdaq proposes to exclude partial trading days from the calculation of a member’s average daily volume. The text of the proposed rule change is available at Nasdaq, the Commission’s Public Reference Room, and http:// www.nasdaq.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, Nasdaq 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. Nasdaq has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(2). 2 17 5 15 66 U.S.C. 78f(b). 15 U.S.C. 78f(b)(5). VerDate Aug<31>2005 16:19 Jul 19, 2007 7 17 Jkt 211001 PO 00000 CFR 200.30–3(a)(12). Frm 00083 Fmt 4703 Sfmt 4703 E:\FR\FM\20JYN1.SGM 20JYN1

Agencies

[Federal Register Volume 72, Number 139 (Friday, July 20, 2007)]
[Notices]
[Pages 39865-39866]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-14037]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56064; File No. SR-CHX-2006-42]


Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 
1 Thereto, To Modify Provisions Relating to Cross With Yield Orders

July 13, 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 December 22, 2006, the Chicago Stock Exchange, Inc. (``CHX'' 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 CHX. 
On July 6, 2007, the Exchange filed Amendment No. 1 to the proposed 
rule change.\3\ The Commission is publishing this notice to solicit 
comments on the proposed rule change, as amended, from interested 
persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1, which replaced the original filing in its 
entirety, removed a proposal that would have allowed the Exchange's 
Matching System to reprice sell short mid-point cross orders. The 
Exchange believes that such repricing is no longer necessary due to 
the Commission's recent decision to eliminate Rule 10a-1 and all 
similar pricing tests that might be applied to sell short orders. 
See Securities Exchange Act Release No. 55970 (June 28, 2007), 72 FR 
36348 (July 3, 2007). Amendment No. 1 also removed a proposed 
effective date for the new order type and made other small wording 
changes to the narrative description.
---------------------------------------------------------------------------

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

    The CHX proposes to amend its rules to permit participants 
submitting ``cross with yield'' orders to elect to yield to undisplayed 
interest. The text of this proposed rule change is available at the 
Exchange, on the Exchange's Web site at: http://www.chx.com/rules/
proposed_rules.htm, and in 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 CHX 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 CHX 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
    As part of the Exchange's new trading model, the CHX offers its 
participants a wide variety of order types that may be submitted to the 
CHX and its central matching engine (``Matching System'').\4\ As the 
CHX and its participants gain familiarity with this new trading model, 
further dialogue with participant firms, as well as industry 
developments, will likely necessitate further refinement of the CHX new 
trading model rules, including the sort of order type enhancement 
proposed in this submission.
---------------------------------------------------------------------------

    \4\ See, e.g., CHX Article 1, Rule 2 and CHX Article 20, Rule 4 
(outlining the range of available order types).
---------------------------------------------------------------------------

    This proposed rule change would amend the definition of a ``cross 
with yield'' order to permit a CHX participant to elect to yield to 
undisplayed market interest in addition to bids and offers that are 
displayed in the Matching System. This change is consistent with the 
purpose of a cross with yield order--a participant selects this type of 
order because it wants its customer order to interact with available 
market interest. This proposal, which simply expands the types of 
orders to which a participant's interest would yield, is reflected in 
changes to Article 1, Rule 2(h) and Article 20, Rules 4(b)(7) and 8(e) 
of the Exchange's rules.
2. Statutory Basis
    The CHX believes the proposal is consistent with the requirements 
of the Act and the rules and regulations

[[Page 39866]]

thereunder that are applicable to a national securities exchange, and, 
in particular, with the requirements of section 6(b).\5\ The CHX 
believes the proposal is consistent with section 6(b)(5) of the Act \6\ 
in that it is designed to promote just and equitable principles of 
trade, to remove impediments to, and to perfect the mechanism of, a 
free and open market and a national market system, and, in general, to 
protect investors and the public interest by permitting the Exchange to 
further refine its product offerings.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 6 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.

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 received.

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

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to: rule-comments@sec.gov. Please include 
File Number SR-CHX-2006-42 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-CHX-2006-42. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Room, 100 F Street, NE., 
Washington, DC 20549, 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-CHX-2006-42 and should be 
submitted on or before August 10, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------


Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-14037 Filed 7-19-07; 8:45 am]
BILLING CODE 8010-01-P