Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change To Amend the Exchange's Institutional Broker Rules To Add Provisions Relating to the Handling of Stop and Stop-Limit Orders, 59316-59317 [E7-20586]

Download as PDF 59316 Federal Register / Vol. 72, No. 202 / Friday, October 19, 2007 / Notices Paper Comments among CBOE members and other persons using its facilities. 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 Written comments on the proposed rule change were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change is subject to Section 19(b)(3)(A)(ii) of the Act 13 and subparagraph (f)(2) of Rule 19b–4 thereunder 14 because it establishes or changes a due, fee, or other charge applicable only to a member imposed by a self-regulatory organization. Accordingly, the proposal is effective upon Commission receipt of the filing. 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.15 IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–CBOE–2007–115 on the subject line. U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 15 For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change under Section 19(b)(3)(C) of the Act, the Commission considers the period to commence on October 4, 2007, the date on which CBOE filed Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C). • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change pwalker on PROD1PC71 with NOTICES 14 17 16:46 Oct 18, 2007 Jkt 214001 [Release No. 34–56657; File No. SR–CHX– 2007–09] Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change To All submissions should refer to File Amend the Exchange’s Institutional Number SR–CBOE–2007–115. This file Broker Rules To Add Provisions number should be included on the subject line if e-mail is used. To help the Relating to the Handling of Stop and Stop-Limit Orders Commission process and review your comments more efficiently, please use October 12, 2007. only one method. The Commission will Pursuant to Section 19(b)(1) of the post all comments on the Commission’s Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Internet Web site (https://www.sec.gov/ notice is hereby given that on March 21, rules/sro.shtml). Copies of the 2007, the Chicago Stock Exchange, Inc. submission, all subsequent (‘‘CHX’’ or ‘‘Exchange’’) filed with the amendments, all written statements Securities and Exchange Commission with respect to the proposed rule (‘‘Commission’’) the proposed rule change that are filed with the change as described in Items I, II, and Commission, and all written III below, which Items have been communications relating to the substantially prepared by CHX. The proposed rule change between the Commission is publishing this notice to Commission and any person, other than solicit comments on the proposed rule those that may be withheld from the change from interested persons. public in accordance with the I. Self-Regulatory Organization’s provisions of 5 U.S.C. 552, will be Statement of the Terms of Substance of available for inspection and copying in the Proposed Rule Change the Commission’s Public Reference Room, 100 F Street, NE., Washington, The Exchange proposes to amend its DC 20549, on official business days rules to add new provisions to confirm between the hours of 10 a.m. and 3 p.m. how institutional brokers should handle stop and stop-limit orders. The text of Copies of such filing also will be the proposed rule change is available at available for inspection and copying at https://www.chx.com/rules/ the principal office of CBOE. All proposed_rules.htm, at the Exchange, comments received will be posted and at the Commission’s Public without change; the Commission does Reference Room. not edit personal identifying information from submissions. You II. Self-Regulatory Organization’s should submit only information that Statement of the Purpose of, and you wish to make available publicly. All Statutory Basis for, the Proposed Rule Change submissions should refer to File Number SR–CBOE–2007–115 and In its filing with the Commission, the should be submitted on or before Exchange included statements November 9, 2007. concerning the purpose of, and basis for, the proposed rule change and discussed For the Commission, by the Division of any comments it received on the Market Regulation, pursuant to delegated proposed rule change. The text of these authority.16 statements may be examined at the Florence E. Harmon, places specified in Item IV below. The Deputy Secretary. Exchange has prepared summaries, set [FR Doc. E7–20619 Filed 10–18–07; 8:45 am] forth in Sections A, B, and C below, of BILLING CODE 8011–01–P the most significant aspects of such statements. 13 15 VerDate Aug<31>2005 SECURITIES AND EXCHANGE COMMISSION 1. Purpose The Exchange proposes to add a new provision to its institutional broker rules 1 15 16 17 PO 00000 CFR 200.30–3(a)(12). Frm 00078 Fmt 4703 Sfmt 4703 2 17 E:\FR\FM\19OCN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 19OCN1 Federal Register / Vol. 72, No. 202 / Friday, October 19, 2007 / Notices to confirm how institutional brokers should handle stop and stop-limit orders.3 Under these provisions, an institutional broker could choose to, but would not be required to, accept stop or stop-limit orders. Under this proposal, a stop order to buy (sell) would become a market order when a transaction in the security at or above (below) the stop price is reported in an effective transaction reporting plan after the order is received by an institutional broker. Similarly, stoplimit orders to buy (sell) would become limit orders when a transaction in the security at or above (below) the stop price is reported in an effective transaction reporting plan after the order is received by an institutional broker. Stop or stop-limit orders could be elected either by the price of the opening transaction on the Exchange or by the price of the opening on any other market center reporting in an effective transaction reporting plan. These proposed provisions are substantially similar to requirements set forth in the rules of other self-regulatory organizations, including New York Stock Exchange LLC (‘‘NYSE’’) and the Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) (f/k/a National Association of Securities Dealers, Inc. (‘‘NASD’’)).4 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act 5 in general, and furthers the objectives of Section 6(b)(5) of the Act.6 The proposed rule change is consistent with Section 6(b)(5) of the Act because it would promote just and equitable principles of trade, remove impediments to and perfect the mechanism of, a free and open market and a national market system, and, in general, protect investors and the public interest by permitting the Exchange to add a new provision to its institutional broker rules to confirm how institutional brokers should handle stop and stop-limit orders. B. Self-Regulatory Organization’s Statement on Burden on Competition pwalker on PROD1PC71 with NOTICES The Exchange does not believe that the proposed rule change will impose any burden on competition. 3 Other provisions of the institutional broker rules confirm the order-handling obligations associated with market, limit, and not held orders. 4 See NYSE Rule 13; NASD Rule 5120(h). 5 15 U.S.C. 78f(b). 6 15 U.S.C. 78f(b)(5). VerDate Aug<31>2005 17:30 Oct 18, 2007 Jkt 214001 C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments on the proposed rule change were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the Exchange consents, the Commission will: (A) By order approve such proposed rule change, or (B) Institute proceedings to determine whether the proposed rule change should be disapproved. 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–CHX–2007–09 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–CHX–2007–09. 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 PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 59317 those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–CHX–2007–09 and should be submitted on or before November 9, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.7 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–20586 Filed 10–18–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56645; File No. SR–NASD– 2005–080] Self-Regulatory Organizations; National Association of Securities Dealers, Inc. (n/k/a Financial Industry Regulatory Authority, Inc.); Notice of Filing of Amendment No. 4 and Order Granting Accelerated Approval of Proposed Rule Change as Modified by Amendment Nos. 1, 2, 3 and 4 Relating to Fairness Opinions October 11, 2007 I. Introduction Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Exchange Act’’ or ‘‘Act’’),1 and Rule 19b–4 thereunder,2 on June 22, 2005, the National Association of Securities Dealers, Inc. (n/k/a Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’)), filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change relating to fairness opinion disclosures and procedures. On April 4, 2006, the Commission issued a release noticing the proposed rule change, as modified by Amendment Nos. 1, 2, and 3, which was published for comment in the Federal Register on 7 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\19OCN1.SGM 19OCN1

Agencies

[Federal Register Volume 72, Number 202 (Friday, October 19, 2007)]
[Notices]
[Pages 59316-59317]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-20586]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56657; File No. SR-CHX-2007-09]


Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Notice of Filing of Proposed Rule Change To Amend the Exchange's 
Institutional Broker Rules To Add Provisions Relating to the Handling 
of Stop and Stop-Limit Orders

October 12, 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 March 21, 2007, the Chicago Stock Exchange, Inc. (``CHX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been substantially prepared by CHX. 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.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its rules to add new provisions to 
confirm how institutional brokers should handle stop and stop-limit 
orders. The text of the proposed rule change is available at https://
www.chx.com/rules/proposed_rules.htm, at the Exchange, and at the 
Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of 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
    The Exchange proposes to add a new provision to its institutional 
broker rules

[[Page 59317]]

to confirm how institutional brokers should handle stop and stop-limit 
orders.\3\ Under these provisions, an institutional broker could choose 
to, but would not be required to, accept stop or stop-limit orders.
---------------------------------------------------------------------------

    \3\ Other provisions of the institutional broker rules confirm 
the order-handling obligations associated with market, limit, and 
not held orders.
---------------------------------------------------------------------------

    Under this proposal, a stop order to buy (sell) would become a 
market order when a transaction in the security at or above (below) the 
stop price is reported in an effective transaction reporting plan after 
the order is received by an institutional broker. Similarly, stop-limit 
orders to buy (sell) would become limit orders when a transaction in 
the security at or above (below) the stop price is reported in an 
effective transaction reporting plan after the order is received by an 
institutional broker. Stop or stop-limit orders could be elected either 
by the price of the opening transaction on the Exchange or by the price 
of the opening on any other market center reporting in an effective 
transaction reporting plan. These proposed provisions are substantially 
similar to requirements set forth in the rules of other self-regulatory 
organizations, including New York Stock Exchange LLC (``NYSE'') and the 
Financial Industry Regulatory Authority, Inc. (``FINRA'') (f/k/a 
National Association of Securities Dealers, Inc. (``NASD'')).\4\
---------------------------------------------------------------------------

    \4\ See NYSE Rule 13; NASD Rule 5120(h).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \5\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act.\6\ The proposed rule change 
is consistent with Section 6(b)(5) of the Act because it would promote 
just and equitable principles of trade, remove impediments to and 
perfect the mechanism of, a free and open market and a national market 
system, and, in general, protect investors and the public interest by 
permitting the Exchange to add a new provision to its institutional 
broker rules to confirm how institutional brokers should handle stop 
and stop-limit orders.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments on the proposed rule change were neither solicited 
nor received.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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-CHX-2007-09 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-CHX-2007-09. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Room, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of such filing also will be available for 
inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-CHX-2007-09 and should be 
submitted on or before November 9, 2007.
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-20586 Filed 10-18-07; 8:45 am]
BILLING CODE 8011-01-P
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