Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to an Extension of the Penny Pilot Program, 42452-42453 [E7-14916]
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Federal Register / Vol. 72, No. 148 / Thursday, August 2, 2007 / Notices
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 BSE. 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–BSE–2007–38 and should
be submitted on or before August 23,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–14915 Filed 8–1–07; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56151; File No. SR–ISE–
2007–68]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to an Extension of the
Penny Pilot Program
mstockstill on PROD1PC66 with NOTICES
July 26, 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 26,
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 and II below, which Items have
been substantially prepared by the ISE.
The Exchange filed the proposal as a
‘‘non-controversial’’ proposed rule
change pursuant to section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(6)
thereunder,4 which rendered the
proposal effective upon filing with the
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).
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 proposes to extend the
Penny Pilot Program. The text of the
proposed rule change is available at ISE,
the Commission’s Public Reference
Room, and https://www.iseoptions.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, ISE
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
BILLING CODE 8010–01–P
14 17
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
1. Purpose
On January 24, 2007, the Commission
approved ISE’s rule filing (SR–ISE–
2006–62),5 which permits thirteen
option classes to quote in penny
increments in connection with the
implementation of an industry wide, six
month penny pilot program (‘‘Penny
Pilot Program’’). Under the Penny Pilot
Program, the minimum price variation
for all thirteen option classes, except for
the Nasdaq-100 Index Tracking Stock
(‘‘QQQQs’’), will continue to be $0.01
for all quotations in option series that
are quoted at less than $3 per contract
and $0.05 for all quotations in options
series that are quoted at $3 per contract
or greater. The QQQQs will continue to
be quoted in $0.01 increments for all
options series. The Penny Pilot Program
is scheduled to expire on July 26, 2007.
ISE proposes to extend the Penny Pilot
Program in the thirteen options classes
for an additional two months, until
September 27, 2007, while the
Commission analyzes whether it would
be appropriate for the options exchanges
to continue the pilot, extend it, or
expand it.
As proposed in the Initial Filing, ISE
represents that options trading in penny
1 15
VerDate Aug<31>2005
17:42 Aug 01, 2007
5 See Securities Exchange Act Release No. 55161
(January 24, 2007), 72 FR 4754 (February 1, 2007)
(SR–ISE–2006–62) (the ‘‘Initial Filing’’).
Jkt 211001
PO 00000
Frm 00083
Fmt 4703
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increments will not be eligible for split
pricing, as permitted under ISE Rule
716. In the Initial Filing, the Exchange
made references to the quote mitigation
strategies that are currently in place and
proposed to apply them to all option
classes during to the Penny Pilot
Program.6 The Exchange proposes to
continue applying those quote
mitigation strategies during the
extension of the Penny Pilot Program.
Specifically, as proposed in ISE Rule
804, ISE will continue to utilize a
holdback timer that delays quotation
updates for up to, but not longer than,
one second. The Exchange’s monitoring
and delisting policies, as proposed in
the Initial Filing, shall continue to
apply.
Finally, ISE will deliver a report to
the Commission during the first month
after the expiration of the pilot, which
will be composed of data from
approximately the last five months of
trading, from May 1, 2007 through
September 27, 2007. The report will
analyze the impact of penny pricing on
market quality and options system
capacity.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with 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 remove impediments to and
perfect the mechanism of 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.
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 by the Exchange.
6 The Exchange confirmed that the quote
mitigation strategies in place during the Penny Pilot
Program applied to all options classes. Telephone
conversation between Samir Patel, Assistant
General Counsel, ISE and Jennifer Colihan, Special
Counsel, Division of Market Regulation,
Commission, on July 26, 2006.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
E:\FR\FM\02AUN1.SGM
02AUN1
Federal Register / Vol. 72, No. 148 / Thursday, August 2, 2007 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become
effective pursuant to section 19(b)(3)(A)
of the Act 9 and Rule 19b–4(f)(6)
thereunder,10 because the foregoing
proposed rule does not: (i) Significantly
affect the protection of investors or the
public interest; (ii) impose any
significant burden on competition; and
(iii) 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.
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30-days after
the date of filing.11 However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest.12 The
Exchange has requested that the
Commission waive the 5-day pre-filing
requirement and the 30-day operative
delay. The Commission believes that
waiving the 5-day pre-filing requirement
and the 30-day operative delay is
consistent with the protection of
investors and the public interest
because such waiver will ensure
continuity of the Exchange’s rules and
will allow the Penny Pilot Program to
remain in effect without interruption.
For these reasons, the Commission
designates the proposal to be operative
upon filing with the Commission.13
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such 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.14
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the self-regulatory
organization to give the Commission notice of its
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.
12 17 CFR 240.19b–4(f)(6)(iii).
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. 15 U.S.C. 78c(f).
14 See 15 U.S.C. 78s(b)(3)(C).
mstockstill on PROD1PC66 with NOTICES
10 17
VerDate Aug<31>2005
17:42 Aug 01, 2007
Jkt 211001
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–ISE–2007–68 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–ISE–2007–68. 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 the filing also will be available
for inspection and copying at the
principal office of the ISE. 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–ISE–2007–68 and should be
submitted on or before August 23, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–14916 Filed 8–1–07; 8:45 am]
BILLING CODE 8010–01–P
15 17
PO 00000
Frm 00084
Fmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56143; File No. SR–NYSE–
2007–59]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend
NYSE Rules 342(c) (‘‘Offices—
Approval, Supervision and Control’’)
and 343 (‘‘Offices—Sole Tenancy,
Hours, Display of Membership
Certificates’’)
July 26, 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 29,
2007, the New York Stock Exchange
LLC (‘‘NYSE’’ or ‘‘Exchange’’) 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 NYSE.
On July 26, 2007, the Exchange
submitted Amendment No. 1 to the
proposed rule change. The Exchange
filed the proposal as a ‘‘noncontroversial’’ rule change pursuant to
section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder,4 which
renders the proposal effective upon
receipt of this filing by the Commission.
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 NYSE is filing with the
Commission (‘‘SEC’’ or ‘‘Commission’’)
proposed amendments to NYSE Rules
342(c) (‘‘Offices—Approval, Supervision
and Control’’) to replace the prior
consent requirement for branch office
approval with a notice requirement and
343 (‘‘Offices—Sole Tenancy, Hours,
Display of Membership Certificates’’) to
eliminate the requirement under Rule
343 that member organizations display
an Exchange-provided ‘‘certificate of
membership’’ at all branch office
locations. The text of the proposal is
available on the Exchange’s Web site
(https://www.nyse.com), at the principal
office of the NYSE, and at the
Commission’s Public Reference Room.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
CFR 200.30–3(a)(12).
Sfmt 4703
42453
E:\FR\FM\02AUN1.SGM
02AUN1
]]>Agencies
[Federal Register Volume 72, Number 148 (Thursday, August 2, 2007)]
[Notices]
[Pages 42452-42453]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-14916]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56151; File No. SR-ISE-2007-68]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to an Extension of the Penny Pilot Program
July 26, 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 26, 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 and
II below, which Items have been substantially prepared by the ISE. The
Exchange filed the proposal as a ``non-controversial'' proposed rule
change pursuant to section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6) thereunder,\4\ which rendered 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.
---------------------------------------------------------------------------
\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
The Exchange proposes to extend the Penny Pilot Program. The text
of the proposed rule change is available at ISE, the Commission's
Public Reference Room, and https://www.iseoptions.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, ISE 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 January 24, 2007, the Commission approved ISE's rule filing (SR-
ISE-2006-62),\5\ which permits thirteen option classes to quote in
penny increments in connection with the implementation of an industry
wide, six month penny pilot program (``Penny Pilot Program''). Under
the Penny Pilot Program, the minimum price variation for all thirteen
option classes, except for the Nasdaq-100 Index Tracking Stock
(``QQQQs''), will continue to be $0.01 for all quotations in option
series that are quoted at less than $3 per contract and $0.05 for all
quotations in options series that are quoted at $3 per contract or
greater. The QQQQs will continue to be quoted in $0.01 increments for
all options series. The Penny Pilot Program is scheduled to expire on
July 26, 2007. ISE proposes to extend the Penny Pilot Program in the
thirteen options classes for an additional two months, until September
27, 2007, while the Commission analyzes whether it would be appropriate
for the options exchanges to continue the pilot, extend it, or expand
it.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 55161 (January 24,
2007), 72 FR 4754 (February 1, 2007) (SR-ISE-2006-62) (the ``Initial
Filing'').
---------------------------------------------------------------------------
As proposed in the Initial Filing, ISE represents that options
trading in penny increments will not be eligible for split pricing, as
permitted under ISE Rule 716. In the Initial Filing, the Exchange made
references to the quote mitigation strategies that are currently in
place and proposed to apply them to all option classes during to the
Penny Pilot Program.\6\ The Exchange proposes to continue applying
those quote mitigation strategies during the extension of the Penny
Pilot Program. Specifically, as proposed in ISE Rule 804, ISE will
continue to utilize a holdback timer that delays quotation updates for
up to, but not longer than, one second. The Exchange's monitoring and
delisting policies, as proposed in the Initial Filing, shall continue
to apply.
---------------------------------------------------------------------------
\6\ The Exchange confirmed that the quote mitigation strategies
in place during the Penny Pilot Program applied to all options
classes. Telephone conversation between Samir Patel, Assistant
General Counsel, ISE and Jennifer Colihan, Special Counsel, Division
of Market Regulation, Commission, on July 26, 2006.
---------------------------------------------------------------------------
Finally, ISE will deliver a report to the Commission during the
first month after the expiration of the pilot, which will be composed
of data from approximately the last five months of trading, from May 1,
2007 through September 27, 2007. The report will analyze the impact of
penny pricing on market quality and options system capacity.
2. Statutory Basis
The Exchange believes that its proposal is consistent with 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 remove impediments to and
perfect the mechanism of 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 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 either solicited or received by the
Exchange.
[[Page 42453]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become effective pursuant to section
19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) thereunder,\10\ because
the foregoing proposed rule does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30-days after the date of filing.\11\
However, Rule 19b-4(f)(6)(iii) permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest.\12\ The Exchange has requested that
the Commission waive the 5-day pre-filing requirement and the 30-day
operative delay. The Commission believes that waiving the 5-day pre-
filing requirement and the 30-day operative delay is consistent with
the protection of investors and the public interest because such waiver
will ensure continuity of the Exchange's rules and will allow the Penny
Pilot Program to remain in effect without interruption. For these
reasons, the Commission designates the proposal to be operative upon
filing with the Commission.\13\
---------------------------------------------------------------------------
\11\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the self-regulatory organization to give the
Commission notice of its 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.
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\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. 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 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.\14\
---------------------------------------------------------------------------
\14\ See 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-ISE-2007-68 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-ISE-2007-68. 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 the filing also will be available for
inspection and copying at the principal office of the ISE. 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-ISE-2007-68 and should be
submitted on or before August 23, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-14916 Filed 8-1-07; 8:45 am]
BILLING CODE 8010-01-P
