Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Transaction Fees for Credit Default Options, 45283-45284 [E7-15756]

Download as PDF Federal Register / Vol. 72, No. 155 / Monday, August 13, 2007 / Notices the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.12 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,13 which requires, among other things, that the Exchange’s rules be designed to prevent fraudulent Electronic Comments and manipulative acts and practices, to promote just and equitable principles of • Use the Commission’s Internet trade, to remove impediments to and comment form (http://www.sec.gov/ perfect the mechanism of a free and rules/sro.shtml); or open market and a national market • Send an e-mail to rulesystem, and, in general, to protect comments@sec.gov. Please include File investors and the public interest. The Number SR–Amex–2007–58 on the proposed rule change would raise the subject line. amount of compensation that precludes Paper Comments a director from being an ‘‘independent • Send paper comments in triplicate director’’ from $60,000 to $100,000. The to Nancy M. Morris, Secretary, Commission believes that this change Securities and Exchange Commission, will promote greater uniformity among 100 F Street, NE., Washington, DC the corporate governance listing 20549–1090. standards of national securities exchanges because it aligns Amex’s rule All submissions should refer to File with the equivalent rules at Nasdaq 14 Number SR–Amex–2007–58. This file and the NYSE.15 number should be included on the The Commission finds good cause, subject line if e-mail is used. To help the consistent with Section 19(b)(2) of the Commission process and review your Act,16 for approving this proposed rule comments more efficiently, please use change before the thirtieth day after the only one method. The Commission will post all comments on the Commission’s publication of notice thereof in the Federal Register. As noted above, the Internet Web site (http://www.sec.gov/ proposed rule change would harmonize rules/sro.shtml). Copies of the Amex’s standard concerning the submission, all subsequent maximum amount of compensation an amendments, all written statements independent director could receive from with respect to the proposed rule the issuer (or its parent or subsidiary) change that are filed with the with the standard of other markets. As Commission, and all written such, the Commission believes the communications relating to the proposal raises no new regulatory issues proposed rule change between the Commission and any person, other than and that no reasonable purpose would be served by delaying its those that may be withheld from the implementation. public in accordance with the provisions of 5 U.S.C. 552, will be V. Conclusion available for inspection and copying in It is therefore ordered, pursuant to the Commission’s Public Reference Section 19(b)(2) of the Act,17 that the Room, 100 F Street, NE., Washington, proposed rule change (SR–Amex–2007– DC 20549, on official business days 58), be, and it hereby is, approved on an between the hours of 10 a.m. and 3 p.m. accelerated basis. Copies of such filing also will be available for inspection and copying at For the Commission, by the Division of Market Regulation, pursuant to delegated the principal office of Amex. All authority.18 comments received will be posted Florence E. Harmon, without change; the Commission does Deputy Secretary. not edit personal identifying information from submissions. You [FR Doc. E7–15725 Filed 8–10–07; 8:45 am] should submit only information that BILLING CODE 8010–01–P you wish to make available publicly. All 12 In approving this proposal, the Commission has submissions should refer to File Number SR–Amex–2007–58 and should considered its impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). be submitted on or before September 4, 13 15 U.S.C. 78f(b)(5). 2007. 14 jlentini on PROD1PC65 with NOTICES III. 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: IV. Commission’s Findings and Order Granting Accelerated Approval of the Proposed Rule Change The Commission finds that the proposed rule change is consistent with VerDate Aug<31>2005 16:19 Aug 10, 2007 Jkt 211001 See Nasdaq Rule 4200(a)(15)(b) and IM–4200— ‘‘Definition of Independence.’’ 15 See Section 303A.02(b)(ii) of the NYSE Listed Company Manual. 16 15 U.S.C. 78s(b)(2). 17 Id. 18 17 CFR 200.30–3(a)(12). PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 45283 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56214; File No. SR–CBOE– 2007–92] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Transaction Fees for Credit Default Options August 7, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on July 27, 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, II, and III below, which Items have been substantially prepared by the Exchange. The Exchange has designated this proposal as one establishing or changing a due, fee, or other charge imposed by CBOE under Section 19(b)(3)(A)(ii) 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 The Exchange proposes to amend its Fees Schedule to establish fees for transactions in certain Credit Default Options (‘‘CDOs’’). The text of the proposed rule change is available on the Exchange’s Web site (http:// www.cboe.org/Legal), 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, CBOE 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 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). 2 17 E:\FR\FM\13AUN1.SGM 13AUN1 45284 Federal Register / Vol. 72, No. 155 / Monday, August 13, 2007 / Notices 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. the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange recently received approval to list and trade certain CDOs, which are binary call options based on credit events in one or more debt securities of an issuer or guarantor.5 The purpose of this rule change is to establish transaction fees for these CDOs. The transactions fee shall be $0.20 per contract for Market-Makers, Designated Primary Market-Makers, and Remote Market-Makers; $0.20 per contract for member firm proprietary transactions; $0.25 per contract for manually executed broker-dealer transactions; $0.45 per contract for electronically executed broker-dealer transactions (i.e., broker-dealer orders that are automatically executed on the CBOE Hybrid Trading System); 6 and $0.85 per contract for public customer transactions. In addition, the Exchange’s Liquidity Provider Sliding Scale 7 shall apply to transaction fees in CDOs, but the Exchange’s Marketing Fee 8 shall not apply. The Exchange believes the rule change will further the Exchange’s goal of introducing new products to the marketplace that are competitively priced. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act,9 in general, and furthers the objectives of Section 6(b)(4) of the Act,10 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among CBOE members and other persons using its facilities. jlentini on PROD1PC65 with NOTICES 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 that is not necessary or appropriate in furtherance of the purposes of the Act. 5 See Securities Exchange Act Release No. 55871 (June 6, 2007), 72 FR 32372 (June 12, 2007) (SR– CBOE–2006–84). 6 Broker-dealer manual and electronic transaction fees will apply to broker-dealer orders (orders with ‘‘B’’ origin code), non-member market-maker orders (orders with ‘‘N’’ origin code), and orders from specialists in the underlying security (orders with ‘‘Y’’ origin code). 7 See Footnote 10 of the Fees Schedule. 8 See Footnote 6 of the Fees chedule. 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(4). VerDate Aug<31>2005 16:19 Aug 10, 2007 Jkt 211001 III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change establishes or changes a due, fee, or other charge imposed by the Exchange, it has become effective pursuant to Section 19(b)(3)(A) of the Act 11 and subparagraph (f)(2) of Rule 19b–4 thereunder.12 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. 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 rulecomments@sec.gov. Please include File Number SR–CBOE–2007–92 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–2007–92. 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 11 15 12 17 PO 00000 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). Frm 00070 Fmt 4703 Sfmt 4703 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 CBOE. 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–2007–92 and should be submitted on or before September 4, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–15756 Filed 8–10–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56207; File No. SR–NASD– 2007–044] Self-Regulatory Organizations; National Association of Securities Dealers, Inc. (n/k/a Financial Industry Regulatory Authority, Inc.); Notice of Filing of Proposed Rule Change To Expand the Class of Entities Permitted To Use the Delta Hedging Exemption From Equity Options Position Limits August 6, 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 National Association of Securities Dealers, Inc. (‘‘NASD’’) (n/k/ a Financial Industry Regulatory Authority, Inc.) 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 FINRA.3 The 13 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 On July 26, 2007, the Commission approved a proposed rule change filed by NASD to amend NASD’s Certificate of Incorporation to reflect its name change to Financial Industry Regulatory Authority Inc., or FINRA, in connection with the consolidation of the member firm regulatory 1 15 E:\FR\FM\13AUN1.SGM 13AUN1

Agencies

[Federal Register Volume 72, Number 155 (Monday, August 13, 2007)]
[Notices]
[Pages 45283-45284]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-15756]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56214; File No. SR-CBOE-2007-92]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Establish Transaction Fees for Credit Default Options

August 7, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on July 27, 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, II, and III below, which Items have been substantially 
prepared by the Exchange. The Exchange has designated this proposal as 
one establishing or changing a due, fee, or other charge imposed by 
CBOE under Section 19(b)(3)(A)(ii) 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its Fees Schedule to establish fees 
for transactions in certain Credit Default Options (``CDOs''). The text 
of the proposed rule change is available on the Exchange's Web site 
(http://www.cboe.org/Legal), 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, CBOE 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

[[Page 45284]]

the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange recently received approval to list and trade certain 
CDOs, which are binary call options based on credit events in one or 
more debt securities of an issuer or guarantor.\5\ The purpose of this 
rule change is to establish transaction fees for these CDOs.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 55871 (June 6, 
2007), 72 FR 32372 (June 12, 2007) (SR-CBOE-2006-84).
---------------------------------------------------------------------------

    The transactions fee shall be $0.20 per contract for Market-Makers, 
Designated Primary Market-Makers, and Remote Market-Makers; $0.20 per 
contract for member firm proprietary transactions; $0.25 per contract 
for manually executed broker-dealer transactions; $0.45 per contract 
for electronically executed broker-dealer transactions (i.e., broker-
dealer orders that are automatically executed on the CBOE Hybrid 
Trading System); \6\ and $0.85 per contract for public customer 
transactions. In addition, the Exchange's Liquidity Provider Sliding 
Scale \7\ shall apply to transaction fees in CDOs, but the Exchange's 
Marketing Fee \8\ shall not apply. The Exchange believes the rule 
change will further the Exchange's goal of introducing new products to 
the marketplace that are competitively priced.
---------------------------------------------------------------------------

    \6\ Broker-dealer manual and electronic transaction fees will 
apply to broker-dealer orders (orders with ``B'' origin code), non-
member market-maker orders (orders with ``N'' origin code), and 
orders from specialists in the underlying security (orders with 
``Y'' origin code).
    \7\ See Footnote 10 of the Fees Schedule.
    \8\ See Footnote 6 of the Fees chedule.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\9\ in general, and furthers the objectives of Section 6(b)(4) of 
the Act,\10\ in particular, in that it is designed to provide for the 
equitable allocation of reasonable dues, fees, and other charges among 
CBOE members and other persons using its facilities.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 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

    The Exchange neither solicited nor received comments on the 
proposal.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change establishes or changes a 
due, fee, or other charge imposed by the Exchange, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \11\ and 
subparagraph (f)(2) of Rule 19b-4 thereunder.\12\ 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.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(2).
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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-CBOE-2007-92 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-2007-92. 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 such filing also will be available for 
inspection and copying at the principal office of the CBOE. 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-2007-92 and should be 
submitted on or before September 4, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-15756 Filed 8-10-07; 8:45 am]
BILLING CODE 8010-01-P