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]
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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 (https://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 (https://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 (https://
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 (https://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 (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
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]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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
(https://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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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-2007-92 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 (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 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\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-15756 Filed 8-10-07; 8:45 am]
BILLING CODE 8010-01-P
