Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend Two Pilot Programs Related to the Exchange's Automated Improvement Mechanism Until July 18, 2008, 40910-40911 [E7-14311]
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40910
Federal Register / Vol. 72, No. 142 / Wednesday, July 25, 2007 / Notices
finds good cause, consistent with
Section 19(b)(2) of the Exchange Act,10
to approve the proposed rule change on
an accelerated basis.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,11 that the
proposed rule change (SR–Amex–2007–
64), be and it hereby is, approved on an
accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–14358 Filed 7–24–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56094; File No. SR–CBOE–
2007–80]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend Two Pilot
Programs Related to the Exchange’s
Automated Improvement Mechanism
Until July 18, 2008
July 18, 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 13,
2007, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) 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 filed the
proposed rule change pursuant to
Section 19(b)(3)(A) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
rwilkins on PROD1PC63 with NOTICES
CBOE proposes to extend two pilot
programs related to the Exchange’s
10 15
U.S.C. 78s(b)(2).
U.S.C. 78s(b)(2).
12 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
11 15
VerDate Aug<31>2005
19:31 Jul 24, 2007
Jkt 211001
Automated Improvement Mechanism
(‘‘AIM’’) for one year, until July 18,
2008. The text of the proposed rule
change is available on the Exchange’s
Web site (https://www.cboe.com), at the
Exchange’s Office of the Secretary, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
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 those
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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
In February 2006, CBOE obtained
approval of a filing adopting the AIM
auction process.5 AIM exposes certain
orders electronically to an auction
process to provide such orders with the
opportunity to receive an execution at
an improved price. The AIM auction is
available only for orders that an
Exchange member represents as agent
and for which a second order of the
same size as the ‘‘Agency Order’’ (and
on the opposite side of the market) is
also submitted (effectively stopping the
Agency Order at a given price).
Two components of AIM were
approved on a pilot basis: (1) That there
is no minimum size requirement for
orders to be eligible for the auction; and
(2) that the auction will conclude
prematurely anytime there is a quote
lock on the Exchange pursuant to
Exchange Rule 6.45A(d).6 In connection
with the pilot programs, the Exchange
has submitted to the Commission
reports providing detailed AIM auction
and order execution data. In July 2006,
the Exchange extended the pilot
program until July 18, 2007.7 The
5 See Securities Exchange Act Release No. 53222
(February 3, 2006), 71 FR7089 (February 10, 2006)
(approving SR–CBOE–2005–60).
6 That rule relates to situations where a MarketMaker’s quote interacts with the quote of another
CBOE Market-Maker (i.e. when internal quotes
lock).
7 See Securities Exchange Act Release No. 54147
(July 14, 2006), 71 FR 41487 (July 21, 2006) (SR–
CBOE–2006–64).
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
proposed rule change merely extends
the duration of the pilot programs until
July 18, 2008. Extending the pilots for
an additional year will allow the
Commission more time to consider the
impact of the pilot programs on AIM
order executions.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) of the Act,8 in general, and furthers
the objectives of Section 6(b)(5) of the
Act,9 in particular, in that by allowing
the Commission additional time to
evaluate the AIM pilot programs, it
should serve to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and protect investors and the
public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will impose any
burden on competition 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
The Exchange neither solicited nor
received comments on the proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 10 and Rule 19b–4(f)(6) 11
thereunder because the proposal does
not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) by its
terms, become operative for 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate if consistent with the
protection of investors and the public
interest.12
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
8 15
U.S.C. 78f(b).
U.S.C. 78(f)(b)(5).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
12 Rule 19b–4(f)(6)(iii) under the Act requires the
Exchange to provide the Commission notice of the
Exchange’s intent to file the proposed rule change,
along with a brief description and text of the
proposed rule change, at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. See 17 CFR 240.19b–4(f)(6)(iii). The
Commission deems this requirement to have been
satisfied by the notice of intent filed by the
Exchange on July 10, 2007.
9 15
E:\FR\FM\25JYN1.SGM
25JYN1
Federal Register / Vol. 72, No. 142 / Wednesday, July 25, 2007 / Notices
become operative prior to 30 days after
the date of filing. However, Rule 19b–
4(f)(6)(iii) 13 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay period. The Commission believes
that waiver of the 30-day operative
delay is consistent with the protection
of investors and the public interest,
because the proposal would allow the
pilots to continue without interruption
until July 18, 2008.14 For this reason,
the Commission designates the proposal
to be operative upon filing with the
Commission.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such proposed 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.15
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2007–80 on the
subject line.
rwilkins on PROD1PC63 with NOTICES
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–CBOE–2007–80. 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
13 17
CFR 240.19b–4(f)(6)(iii).
14 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
15 15 U.S.C. 78s(b)(3)(C).
VerDate Aug<31>2005
19:31 Jul 24, 2007
Jkt 211001
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–CBOE–2007–80 and should
be submitted on or before August 15,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–14311 Filed 7–24–07; 8:45 am]
BILLING CODE 8010–01–P
40911
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 add a clarifying
sentence to resolve an ambiguity with
respect to fees charged to MidPoint
Match executions. The text of the
proposed rule change is available at
https://www.iseoptions.com/legal/
proposed_rule_changes.asp and 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
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56091; File No. SR–ISE–
2007–57]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Clarifying the Fee
Schedule
July 18, 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 2,
2007, the International Securities
Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II and III below, which Items
have been substantially prepared by the
Exchange. The Commission is
publishing this notice to solicit
PO 00000
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
The purpose of this proposed rule
change is to add a clarifying sentence to
the Schedule of Fees to resolve an
ambiguity with respect to fees charged
to MidPoint Match executions. The
Exchange currently waives fees in the
circumstances where the same Member
enters MidPoint Match orders that
execute against each other in the
MidPoint Match System. Additionally,
the Exchange offers discounted fees
based on a Member’s average daily
volume (‘‘ADV’’) via a tiered schedule
that provides increased discounts as a
Member’s ADV increases. The Exchange
proposes to add a sentence clarifying
that transactions for which fees are
waived do not count towards the ADV
discounts and do not accrue market data
revenue.
2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under section 6(b)(4) 3 that the Exchange
provide for the equitable allocation of
reasonable dues, fees, and other charges
1 15
Frm 00087
Fmt 4703
Sfmt 4703
3 15
E:\FR\FM\25JYN1.SGM
U.S.C. 78f(b)(4).
25JYN1
]]>Agencies
[Federal Register Volume 72, Number 142 (Wednesday, July 25, 2007)]
[Notices]
[Pages 40910-40911]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-14311]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56094; File No. SR-CBOE-2007-80]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Extend Two Pilot Programs Related to the Exchange's
Automated Improvement Mechanism Until July 18, 2008
July 18, 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 13, 2007, the Chicago Board Options Exchange, Incorporated
(``Exchange'' or ``CBOE'') 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 filed the proposed rule change pursuant to
Section 19(b)(3)(A) 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).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to extend two pilot programs related to the
Exchange's Automated Improvement Mechanism (``AIM'') for one year,
until July 18, 2008. The text of the proposed rule change is available
on the Exchange's Web site (https://www.cboe.com), at the Exchange's
Office of the Secretary, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the 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 those 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 parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
In February 2006, CBOE obtained approval of a filing adopting the
AIM auction process.\5\ AIM exposes certain orders electronically to an
auction process to provide such orders with the opportunity to receive
an execution at an improved price. The AIM auction is available only
for orders that an Exchange member represents as agent and for which a
second order of the same size as the ``Agency Order'' (and on the
opposite side of the market) is also submitted (effectively stopping
the Agency Order at a given price).
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 53222 (February 3,
2006), 71 FR7089 (February 10, 2006) (approving SR-CBOE-2005-60).
---------------------------------------------------------------------------
Two components of AIM were approved on a pilot basis: (1) That
there is no minimum size requirement for orders to be eligible for the
auction; and (2) that the auction will conclude prematurely anytime
there is a quote lock on the Exchange pursuant to Exchange Rule
6.45A(d).\6\ In connection with the pilot programs, the Exchange has
submitted to the Commission reports providing detailed AIM auction and
order execution data. In July 2006, the Exchange extended the pilot
program until July 18, 2007.\7\ The proposed rule change merely extends
the duration of the pilot programs until July 18, 2008. Extending the
pilots for an additional year will allow the Commission more time to
consider the impact of the pilot programs on AIM order executions.
---------------------------------------------------------------------------
\6\ That rule relates to situations where a Market-Maker's quote
interacts with the quote of another CBOE Market-Maker (i.e. when
internal quotes lock).
\7\ See Securities Exchange Act Release No. 54147 (July 14,
2006), 71 FR 41487 (July 21, 2006) (SR-CBOE-2006-64).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Act,\8\ in general, and furthers the objectives of
Section 6(b)(5) of the Act,\9\ in particular, in that by allowing the
Commission additional time to evaluate the AIM pilot programs, it
should serve to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and protect
investors and the public interest.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78(f)(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE does not believe that the proposed rule change will impose any
burden on competition 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
The Exchange neither solicited nor received comments on the
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) \11\ thereunder
because the proposal does not: (i) Significantly affect the protection
of investors or the public interest; (ii) impose any significant burden
on competition; and (iii) by its terms, become operative for 30 days
from the date on which it was filed, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest.\12\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ Rule 19b-4(f)(6)(iii) under the Act requires the Exchange
to provide the Commission notice of the Exchange's intent to file
the proposed rule change, along with a brief description and text of
the proposed rule change, at least five business days prior to the
date of filing of the proposed rule change, or such shorter time as
designated by the Commission. See 17 CFR 240.19b-4(f)(6)(iii). The
Commission deems this requirement to have been satisfied by the
notice of intent filed by the Exchange on July 10, 2007.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally may
not
[[Page 40911]]
become operative prior to 30 days after the date of filing. However,
Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay period. The Commission
believes that waiver of the 30-day operative delay is consistent with
the protection of investors and the public interest, because the
proposal would allow the pilots to continue without interruption until
July 18, 2008.\14\ For this reason, the Commission designates the
proposal to be operative upon filing with the Commission.
---------------------------------------------------------------------------
\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such proposed 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.\15\
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-CBOE-2007-80 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2007-80. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
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-CBOE-2007-80 and should be
submitted on or before August 15, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-14311 Filed 7-24-07; 8:45 am]
BILLING CODE 8010-01-P
