Joint Industry Plan; Notice of Filing of Joint Amendment No. 24 to the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage Regarding Elimination of the Class Gate, 58133-58134 [E7-20116]

Download as PDF Federal Register / Vol. 72, No. 197 / Friday, October 12, 2007 / Notices administers and enforces a statutory disqualification scheme under the Commodity Exchange Act 7 in connection with employees of members involved in futures activities that is similar to the statutory disqualification scheme under the Exchange Act. The Exchange believes that this proposed rule change would better enable the Exchange to focus resources on applications for continuance involving associated persons who are engaged in securities-related activities and who are required by Exchange Act Rule 19h–1 to have filings with the Commission made on their behalf. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with Exchange Act section 6(b)(5),8 which requires, among other things, that the Exchange’s rules be designed 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. The Exchange believes that, by permitting it to waive the hearing requirement for persons whose applications it intends to approve, and for whom no notice filing is required under Rule 19h–1(a)(2), the proposed rule change will better enable the Exchange to streamline the administration of its statutory disqualification program and better protect investors and the public interest by focusing its resources on other membership-related matters including continuance applications for associated persons that also require filings with the Commission. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. jlentini on PROD1PC65 with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing 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, provided that the selfregulatory organization has given the Commission written notice of its intent to file 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, 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 At any time within 60 days of the filing of such 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: 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 Section, 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–2007–14 and should be submitted on or before November 2, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Nancy M. Morris, Secretary. [FR Doc. E7–20080 Filed 10–11–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION 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–2007–14 on the subject line. [Release No. 34–56596; File No. 4–429] 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–2007–14. 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 October 2, 2007. Joint Industry Plan; Notice of Filing of Joint Amendment No. 24 to the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage Regarding Elimination of the Class Gate Pursuant to Section 11A of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 608 of Regulation NMS thereunder,2 notice is hereby given that on September 14, 2007, September 19, 2007, August 29, 2007, August 29, 2007, August 30, 2007, and September 26, 2007, American Stock Exchange, LLC (‘‘Amex’’), Boston Stock Exchange, Inc. (‘‘BSE’’), Chicago Board Options Exchange, Incorporated (‘‘CBOE’’), International Securities Exchange, LLC (‘‘ISE’’), NYSE Arca, Inc. (‘‘NYSE Arca’’), and Philadelphia Stock Exchange, Inc. (‘‘Phlx’’) (collectively, the ‘‘Participants’’), respectively, submitted to the Securities and Exchange Commission (‘‘Commission’’) Amendment No. 24 to the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage (‘‘Linkage 11 17 77 U.S.C. 1 et seq. 8 15 U.S.C. 78f(b)(5). VerDate Aug<31>2005 16:35 Oct 11, 2007 9 15 U.S.C. 78s(b)(3)(A). 10 17 CFR 240.19b–4(f)(6). Jkt 214001 58133 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 CFR 200.30–3(a)(12). U.S.C. 78k–1. 2 17 CFR 242.608. 1 15 E:\FR\FM\12OCN1.SGM 12OCN1 58134 Federal Register / Vol. 72, No. 197 / Friday, October 12, 2007 / Notices Plan’’).3 The amendment proposes to eliminate the ‘‘Class Gate’’ restriction on Principal Order access through the Linkage. The Commission is publishing this notice to solicit comments from interested persons on the proposed Joint Amendment to the Linkage Plan. I. Description of the Proposed Amendment The Participants are proposing to modify Section 7(a)(ii)(C) of the Linkage Plan so as to eliminate the ‘‘Class Gate’’ restriction on Principal Order access through the Linkage. Currently, Section 7(a)(ii)(C) of the Linkage Plan provides that, once a Participant automatically executes a Principal Order in a series of an Eligible Option Class, it may reject any other Principal Orders sent in the same Eligible Option Class by the same Participant for 15 seconds after the initial execution unless there is a price change in the receiving Participant’s disseminated offer (bid) in the series in which there was the initial execution and such price continues to be the NBBO. After the 15 second period, and until the sooner of one minute after the initial execution or a change in its disseminated offer (bid), the Section provides that the Participant that provided the initial execution is not obligated to execute any Principal Orders received from the same Participant in the same Eligible Option Class in its automatic execution system. The Participants represent that a change to the ‘‘Class Gate’’ provision is appropriate because, at the time of the creation of the Linkage, various markets had restrictions on non-customer access to the automatic execution systems. Since then, all of the exchanges have removed those restrictions and allow access for orders on behalf of nonmember market makers to their trading platforms, thus eliminating the need for the ‘‘Class Gate.’’ II. Implementation of the Plan Amendment The proposed amendment to the Linkage Plan will be effective upon approval by the Commission pursuant to Rule 608 of Regulation NMS under the Act.4 jlentini on PROD1PC65 with NOTICES 3 On July 28, 2000, the Commission approved a national market system plan for the purpose of creating and operating an intermarket options market linkage (‘‘Linkage’’) proposed by Amex, CBOE, and ISE. See Securities Exchange Act Release No. 43086 (July 28, 2000), 65 FR 48023 (August 4, 2000). Subsequently, Phlx, Pacific Exchange, Inc. (n/k/a NYSE Arca), and BSE joined the Linkage Plan. See Securities Exchange Act Release Nos. 43573 (November 16, 2000), 65 FR 70851 (November 28, 2000); 43574 (November 16, 2000), 65 FR 70850 (November 28, 2000); and 49198 (February 5, 2004), 69 FR 7029 (February 12, 2004). 4 17 CFR 242.608. VerDate Aug<31>2005 16:35 Oct 11, 2007 Jkt 214001 III. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed amendment to the Linkage Plan is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments For the Commission, by the Division of Market Regulation, pursuant to delegated authority.5 Nancy M. Morris, Secretary. [FR Doc. E7–20116 Filed 10–11–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION • 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 4–429 on the subject line. [Release No. 34–56605; File No. 4–429] Paper Comments October 3, 2007. • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. Pursuant to Section 11A of the Securities Exchange Act of 1934 (the ‘‘Act’’) 1 and Rule 608 of Regulation NMS thereunder,2 notice is hereby given that on September 14, 2007, September 19, 2007, August 29, 2007, August 30, 2007, August 29, 2007, and September 26, 2007, American Stock Exchange, LLC (‘‘Amex’’), Boston Stock Exchange, Inc. (‘‘BSE’’), Chicago Board Options Exchange, Incorporated (‘‘CBOE’’), International Securities Exchange, Inc. (‘‘ISE’’), NYSE Arca, Inc. (‘‘NYSE Arca’’), and Philadelphia Stock Exchange, Inc. (‘‘Phlx’’) (collectively, ‘‘Participants’’) respectively submitted to the Securities and Exchange Commission (‘‘Commission’’) Joint Amendment No. 23 (‘‘Joint Amendment’’) to the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage (the ‘‘Linkage Plan’’).3 The Joint Amendment proposes to modify Section 7(a)(i) of the Linkage Plan to permit trading on Linkage prior to the opening of trading. The Commission is publishing this notice to solicit comments from interested persons on the proposed Joint Amendment to the Linkage Plan. All submissions should refer to Joint Amendment No. 24 to File Number 4– 429. 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 Amex, BSE, CBOE, ISE, NYSE Arca and Phlx. 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 Joint Amendment No. 24 to File No. 4–429 and should be submitted on or before November 2, 2007. 5 17 PO 00000 CFR 200.30–3(a)(29). Frm 00089 Fmt 4703 Sfmt 4703 Joint Industry Plan; Notice of Filing of Joint Amendment No. 23 to the Intermarket Option Linkage Plan To Permit the Use of Linkage Prior to the Opening of Trading I. Description of the Proposed Amendment The purpose of the Joint Amendment is to amend Section 7(a)(i) of the 1 15 U.S.C. 78k–1. CFR 242.608. 3 On July 28, 2000, the Commission approved a national market system plan for the purpose of creating and operating an intermarket options market linkage proposed by the Amex, CBOE, and ISE. See Securities Exchange Act Release No. 43086 (July 28, 2000), 65 FR 48023 (August 4, 2000). Subsequently, Phlx, Pacific Exchange, Inc. (n/k/a NYSE Arca, Inc.), and BSE joined the Linkage Plan. See Securities Exchange Act Release Nos. 43573 (November 16, 2000), 65 FR 70851 (November 28, 2000); 43574 (November 16, 2000), 65 FR 70850 (November 28, 2000); and 49198 (February 5, 2004), 69 FR 7029 (February 12, 2004). 2 17 E:\FR\FM\12OCN1.SGM 12OCN1

Agencies

[Federal Register Volume 72, Number 197 (Friday, October 12, 2007)]
[Notices]
[Pages 58133-58134]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-20116]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56596; File No. 4-429]


Joint Industry Plan; Notice of Filing of Joint Amendment No. 24 
to the Plan for the Purpose of Creating and Operating an Intermarket 
Option Linkage Regarding Elimination of the Class Gate

October 2, 2007.
    Pursuant to Section 11A of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 608 of Regulation NMS thereunder,\2\ notice is 
hereby given that on September 14, 2007, September 19, 2007, August 29, 
2007, August 29, 2007, August 30, 2007, and September 26, 2007, 
American Stock Exchange, LLC (``Amex''), Boston Stock Exchange, Inc. 
(``BSE''), Chicago Board Options Exchange, Incorporated (``CBOE''), 
International Securities Exchange, LLC (``ISE''), NYSE Arca, Inc. 
(``NYSE Arca''), and Philadelphia Stock Exchange, Inc. (``Phlx'') 
(collectively, the ``Participants''), respectively, submitted to the 
Securities and Exchange Commission (``Commission'') Amendment No. 24 to 
the Plan for the Purpose of Creating and Operating an Intermarket 
Option Linkage (``Linkage

[[Page 58134]]

Plan'').\3\ The amendment proposes to eliminate the ``Class Gate'' 
restriction on Principal Order access through the Linkage. The 
Commission is publishing this notice to solicit comments from 
interested persons on the proposed Joint Amendment to the Linkage Plan.
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    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ On July 28, 2000, the Commission approved a national market 
system plan for the purpose of creating and operating an intermarket 
options market linkage (``Linkage'') proposed by Amex, CBOE, and 
ISE. See Securities Exchange Act Release No. 43086 (July 28, 2000), 
65 FR 48023 (August 4, 2000). Subsequently, Phlx, Pacific Exchange, 
Inc. (n/k/a NYSE Arca), and BSE joined the Linkage Plan. See 
Securities Exchange Act Release Nos. 43573 (November 16, 2000), 65 
FR 70851 (November 28, 2000); 43574 (November 16, 2000), 65 FR 70850 
(November 28, 2000); and 49198 (February 5, 2004), 69 FR 7029 
(February 12, 2004).
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I. Description of the Proposed Amendment

    The Participants are proposing to modify Section 7(a)(ii)(C) of the 
Linkage Plan so as to eliminate the ``Class Gate'' restriction on 
Principal Order access through the Linkage. Currently, Section 
7(a)(ii)(C) of the Linkage Plan provides that, once a Participant 
automatically executes a Principal Order in a series of an Eligible 
Option Class, it may reject any other Principal Orders sent in the same 
Eligible Option Class by the same Participant for 15 seconds after the 
initial execution unless there is a price change in the receiving 
Participant's disseminated offer (bid) in the series in which there was 
the initial execution and such price continues to be the NBBO. After 
the 15 second period, and until the sooner of one minute after the 
initial execution or a change in its disseminated offer (bid), the 
Section provides that the Participant that provided the initial 
execution is not obligated to execute any Principal Orders received 
from the same Participant in the same Eligible Option Class in its 
automatic execution system.
    The Participants represent that a change to the ``Class Gate'' 
provision is appropriate because, at the time of the creation of the 
Linkage, various markets had restrictions on non-customer access to the 
automatic execution systems. Since then, all of the exchanges have 
removed those restrictions and allow access for orders on behalf of 
non-member market makers to their trading platforms, thus eliminating 
the need for the ``Class Gate.''

II. Implementation of the Plan Amendment

    The proposed amendment to the Linkage Plan will be effective upon 
approval by the Commission pursuant to Rule 608 of Regulation NMS under 
the Act.\4\
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    \4\ 17 CFR 242.608.
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III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed 
amendment to the Linkage Plan 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 4-429 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 Joint Amendment No. 24 to File Number 
4-429. 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 Amex, BSE, CBOE, 
ISE, NYSE Arca and Phlx. 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 Joint 
Amendment No. 24 to File No. 4-429 and should be submitted on or before 
November 2, 2007.
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    \5\ 17 CFR 200.30-3(a)(29).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
Nancy M. Morris,
Secretary.
[FR Doc. E7-20116 Filed 10-11-07; 8:45 am]
BILLING CODE 8011-01-P