Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 1, Regarding Complex Orders, 61694-61696 [E7-21383]
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Federal Register / Vol. 72, No. 210 / Wednesday, October 31, 2007 / Notices
These documents may also be viewed
electronically on the public computers
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Dated at Rockville, Maryland, this 24th day
of October, 2007.
For the Nuclear Regulatory Commission.
Stephen J. Cohen,
Project Manager, Uranium Recovery Licensing
Branch, Decommissioning and Uranium
Recovery Licensing Directorate, Division of
Waste Management and Environmental
Protection, Office of Federal and State
Materials and Environmental Management
Programs.
[FR Doc. E7–21429 Filed 10–30–07; 8:45 am]
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Advisory Committee on Nuclear Waste
And Materials; Meeting on Planning
and Procedures; Notice of Meeting
The Advisory Committee on Nuclear
Waste and Materials (ACNW&M) will
hold a Planning and Procedures meeting
on November 13, 2007, Room T–2B1,
11545 Rockville Pike, Rockville,
Maryland. The entire meeting will be
open to public attendance, with the
exception of a portion that may be
closed pursuant to 5 U.S.C. 552b (c) (2)
and (6) to discuss organizational and
personnel matters that relate solely to
internal personnel rules and practices of
ACNW&M, and information the release
of which would constitute a clearly
unwarranted invasion of personal
privacy.
The agenda for the subject meeting
shall be as follows:
Tuesday, November 13, 2007—8:30
a.m. until 9:30 a.m.
The Committee will discuss proposed
ACNW&M activities and related matters.
The purpose of this meeting is to gather
information, analyze relevant issues and
facts, and formulate proposed positions
and actions, as appropriate, for
deliberation by the full Committee.
Members of the public desiring to
provide oral statements and/or written
comments should notify the Designated
Federal Officer, Dr. Antonio F. Dias
(Telephone: 301/415–6805) between
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appropriate arrangements can be made.
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Detailed procedures for the conduct of
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were published in the Federal Register
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Further information regarding this
meeting can be obtained by contacting
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planning to attend this meeting are
urged to contact the above named
individual at least 2 working days prior
to the meeting to be advised of any
potential changes in the agenda.
Dated: October 24, 2007.
Antonio F. Dias,
Chief, Nuclear Waste & Materials Branch.
[FR Doc. E7–21430 Filed 10–30–07; 8:45 am]
Dated: October 25, 2007.
Cayetano Santos,
Chief, Reactor Safety Branch, ACRS.
[FR Doc. E7–21432 Filed 10–30–07; 8:45 am]
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Advisory Committee on Reactor
Safeguards (ACRS); Subcommittee
Meeting on Thermal-Hydraulic
Phenomena; Notice of Meeting
The ACRS Subcommittee on ThermalHydraulic Phenomena will hold a
meeting on November 14, 2007, at
11545 Rockville Pike, Rockville,
Maryland, Room T–2B1.
The entire meeting will be open to
public attendance, with the exception of
portions that may be closed to discuss
AREVA proprietary information
pursuant to 5 U.S.C. 552b(c)(4).
The agenda for the subject meeting
shall be as follows:
Wednesday, November 14, 2007—8:30
a.m. Until 12 Noon
The Subcommittee will review and
comment on the proposed AREVA
instability detect and suppress solution
codes and methodology specified in the
topical reports: (1) ANP–10262(P),
Revision 0, ‘‘Enhanced Option III Long
Term Stability Solution;’’ and (2) BAW–
10255(P), Revision 2, ‘‘Cycle-specific
DIVOM Methodology Using the
RAMONA5–FA Code.’’ The
Subcommittee will hear presentations
by and hold discussions with
representatives of the NRC staff,
AREVA, and other interested persons
regarding this matter. The
Subcommittee will gather information,
analyze relevant issues and facts, and
formulate proposed positions and
actions, as appropriate, for deliberation
by the full Committee.
Members of the public desiring to
provide oral statements and/or written
comments should notify the Designated
Federal Officer, Ms. Zena Abdullahi
(Telephone: 301–415–8716) 5 days prior
to the meeting, if possible, so that
appropriate arrangements can be made.
Electronic recordings will be permitted
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only during those portions of the
meeting that are open to the public.
Detailed procedures for the conduct of
and participation in ACRS meetings
were published in the Federal Register
on September 26, 2007 (72 FR 54695).
Further information regarding this
meeting can be obtained by contacting
the Designated Federal Officer between
8:45 a.m. and 5:30 p.m. (ET). Persons
planning to attend this meeting are
urged to contact the above named
individual at least 2 working days prior
to the meeting to be advised of any
potential changes to the agenda.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56701; File No. SR–CBOE–
2007–68]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of
Proposed Rule Change, as Modified by
Amendment No. 1, Regarding Complex
Orders
October 25, 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 20,
2007, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ 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
prepared substantially by the CBOE. On
October 19, 2007, the CBOE filed
Amendment No. 1 to the proposed rule
change.3 The Commission is publishing
this notice to solicit comments on the
proposed rule change, as modified by
Amendment No. 1, from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The CBOE proposes to amend its rules
regarding the handling of certain
complex orders. The text of the
proposed rule change is available on the
Exchange’s Web site at (https://
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Amendment No. 1 replaces the original filing in
its entirety.
2 17
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Federal Register / Vol. 72, No. 210 / Wednesday, October 31, 2007 / Notices
www.cboe.org/Legal), at the CBOE’s
Office of the Secretary, 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
rwilkins on PROD1PC63 with NOTICES
1. Purpose
CBOE Rule 6.53C, ‘‘Complex Orders
on the Hybrid System,’’ governs the
electronic handling and execution of
complex orders by the Exchange’s
Hybrid System. The purpose of this
filing is to allow for the electronic
handling and execution of stock-option
orders on the Exchange. These are a
type of complex order that consist of an
option component and a stock
component. Stock-option orders are
popular with investors (e.g., buy-writes)
and are frequently handled on CBOE. To
date, these orders are handled manually
and the option component is traded in
open outcry by a broker. With the
establishment of the CBOE Stock
Exchange (‘‘CBSX’’), an electronic stock
trading facility of CBOE, the Exchange
is now positioned to handle and trade
stock-option orders electronically, with
the stock component execution taking
place on CBSX.
The Exchange proposes to handle
these orders in a manner that is
substantially similar to other complex
orders handled pursuant to CBOE Rule
6.53C. Electronic stock-option orders
will be accepted by the Hybrid System
and auctioned in the Complex Order
Auction (‘‘COA’’) pursuant to CBOE
Rule 6.53C(d) when the requirements
for an auction are met. An unexecuted
stock-option order can also be
maintained by the system (either in the
Complex Order Book (‘‘COB’’) or on the
PAR workstation), either of which will
monitor the marketability of the order,
taking into account the CBSX market for
the execution of the stock component of
the order.
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17:45 Oct 30, 2007
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There are four differences between the
handling of stock-option orders and
other complex order types handled
pursuant to CBOE Rule 6.53C. First, as
previously mentioned, the stock portion
of the stock-option order will be
executed on CBSX. All such executions
will be consistent with CBSX trading
rules, including priority and matching
rules. The execution of the stock-option
order cannot take place until the desired
price of the stock component is
achievable on CBSX. The option leg of
the stock-option order will not trade
ahead of any resting public customer
orders on the Hybrid book. This is
consistent with existing CBOE Rule
6.45A(b)(ii), which provides that stockoption orders do not have priority over
bids/offers in the public customer limit
order book. The option leg may be
executed in one-cent increments
regardless of the minimum increment
applicable to the series.
For example: a customer enters a buywrite order to buy 100 shares of XYZ
(trading around $40) and sell a 45 call
with a net price of $39.00. There is a
public customer order in the Hybrid
book to sell the 45 call for $1. When
executing the buy-write against auction
responses, the system will not allow the
option leg of the transaction to trade at
$1 or higher (thereby preserving the
resting limit order’s priority at that
price). An execution could occur where
the option leg prints at $0.99 and the
stock trade prints at $39.99 (in
accordance with CBSX priority rules).
This meets the buy-write’s limit price
(involving a total cost of $3900) and
does not violate priority on CBOE or
CBSX.
Second, the execution of a stockoption order submitted to the COB is
slightly different than the priority
outlined in CBOE Rule 6.53C(c)(ii).
More specifically, a stock-option order
submitted to the CBOE will trade in the
following sequence: (1) Against other
stock-option orders in the COB using
public customer priority and then time
priority (thus, if there are multiple
public customer and broker-dealer
stock-option orders resting in COB, the
public customer orders will trade first
with time priority among them, and
then the broker-dealer orders will trade
with time priority among them); (2)
against individual orders or quotes on
the Exchange (i.e., the CBSX book and
the options Hybrid book), provided the
stock-option order can be executed in
full (or in a permissible ratio); and (3)
against orders or quotes submitted by
Market Participants, as set forth in
CBOE Rule 6.53C(c)(ii)(3). Because a
portion of a stock-option order is
executed on a different platform (CBSX),
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61695
it is more practical to execute resting
stock-option orders against other stockoption orders received by the system
first before scanning for executions
against the legs on the CBSX book and
the options Hybrid book.
The third difference involves the
manner in which stock-option orders
are executed through the COA.
Individual orders and quotes for the
various legs of the order will have last
priority. Again, this is because it is more
practical to execute resting stock-option
orders against other stock-option orders
received by the system first before
scanning for executions against the legs
on the CBSX book and the options
Hybrid book.
For example: the market for XYZ stock on
CBSX is $39.94–39.99. The 45 call market on
CBOE is $0.95–1.00. A stock-option order is
entered to buy 100 shares and sell the 45 call
with a net price of $39.00. The stock-option
order is auctioned through the COA, but no
responses are received (if responses had been
received, priority would have been afforded
to public customer responses and any resting
public customer stock-option orders that
were marketable against the auctioned order
using time priority). After the system has
determined that there are no responses or
resting stock-option orders that can trade
against the auctioned stock-option order, it
will look to the individual leg markets. In
this case, the stock-option order will be filled
by the system by executing the stock at
$39.99 against the CBSX book and the option
at $1 against the CBOE book.
With respect to the last difference, the
N-second group timer shall not be in
effect for stock-option orders.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,4 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,5 in particular, in that it is
designed to facilitate transactions in
securities, to promote just and equitable
principles of trade, to prevent
fraudulent and manipulative acts and,
in general, to protect investors and the
public interest. In particular, the
Exchange believes that the addition of
stock-option orders to the list of
complex orders eligible for electronic
handling under CBOE Rule 6.53C is a
significant enhancement for investors
seeking automated handling of stockoption orders.
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
4 15
5 15
E:\FR\FM\31OCN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
31OCN1
61696
Federal Register / Vol. 72, No. 210 / Wednesday, October 31, 2007 / Notices
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
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:
rwilkins on PROD1PC63 with NOTICES
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–2007–68 on the
subject line.
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–2007–68 and should
be submitted on or before November 21,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.6
Nancy M. Morris,
Secretary.
[FR Doc. E7–21383 Filed 10–30–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56703; File No. SR–CHX–
2007–22]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing of Proposed Rule Change to
Amend Rules Relating to the Execution
of Odd Lot Market Orders
October 25, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
Paper Comments
notice is hereby given that on October
• Send paper comments in triplicate
2, 2007, the Chicago Stock Exchange,
to Nancy M. Morris, Secretary,
Inc. (‘‘CHX’’ or ‘‘Exchange’’) filed with
Securities and Exchange Commission,
the Securities and Exchange
100 F Street, NE., Washington, DC
Commission (‘‘Commission’’) the
20549–1090.
proposed rule change as described in
All submissions should refer to File
Items I, II, and III below, which Items
Number SR–CBOE–2007–68. This file
have been substantially prepared by
number should be included on the
CHX. The Commission is publishing
subject line if e-mail is used. To help the
this notice to solicit comments on the
Commission process and review your
proposed rule change from interested
comments more efficiently, please use
persons.
only one method. The Commission will
post all comments on the Commission’s I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
Internet Web site (https://www.sec.gov/
the Proposed Rule Change
rules/sro.shtml). Copies of the
submission, all subsequent
The Exchange proposes to amend its
amendments, all written statements
rules to provide that market odd lot
with respect to the proposed rule
orders would be executed like round lot
change that are filed with the
Commission, and all written
6 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
communications relating to the
2 17 CFR 240.19b–4.
proposed rule change between the
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17:45 Oct 30, 2007
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Sfmt 4703
orders in the Exchange’s Matching
System (i.e., executed as if they were
subject to Regulation NMS Rule 611 3).
Below is the text of the proposed rule
change. Proposed new language is in
italics; proposed deletions are in
[brackets].4
Article 20
Operation of Chx Matching System
*
*
*
*
*
Prevention of Trade-throughs
Rule 5.a. An inbound order for at least
a round lot is not eligible for execution
on the Exchange if its execution would
cause an improper trade-through of
another ITS market or, when Reg NMS
is implemented for a security, if its
execution would be improper under
Rule 611 (but not including the
exception set out in Rule 611(b)(8))
(together an ‘‘improper tradethrough’’[’’]). As described in
Interpretation and Policy .03, if the
execution of all or part of an inbound
order for at least a round lot on the
Exchange would cause an improper
trade-through, that order (or the portion
of that order that would cause a tradethrough) shall be routed to another
appropriate market or, if designated as
‘‘do not route,’’ automatically cancelled;
provided, however, that if an
undisplayed order is resting in the
Matching System and the execution of
an inbound round lot order (that is not
an IOC or FOK order) against the
undisplayed resting order would cause
an improper trade-through, the resting
order shall be cancelled to the extent
necessary to allow the inbound order to
be executed or quoted.
b. Inbound odd lot limit orders and
odd lot crosses shall be eligible for
execution on the Exchange even if the
execution would trade through another
market’s bid or offer. Inbound odd lot
market orders shall be executed, for
purposes of this Rule, as if they were
round lot orders and subject to the
requirements of paragraph (a) above.
*
*
*
*
*
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
3 17
CFR 242.611.
Exchange has consented to the removal of
an extra quotation mark from the current text of
Article 20, Rule 5(a) of the CHX Rules. See E-mail
from Ellen Neely, President and General Counsel,
CHX to David Michehl, Special Counsel, Division
of Market Regulation, Commission on October 23,
2007.
4 The
E:\FR\FM\31OCN1.SGM
31OCN1
]]>Agencies
[Federal Register Volume 72, Number 210 (Wednesday, October 31, 2007)]
[Notices]
[Pages 61694-61696]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-21383]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56701; File No. SR-CBOE-2007-68]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of Proposed Rule Change, as Modified by
Amendment No. 1, Regarding Complex Orders
October 25, 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 20, 2007, the Chicago Board Options Exchange, Incorporated
(``CBOE'' 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 prepared
substantially by the CBOE. On October 19, 2007, the CBOE filed
Amendment No. 1 to the proposed rule change.\3\ The Commission is
publishing this notice to solicit comments on the proposed rule change,
as modified by Amendment No. 1, from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1 replaces the original filing in its
entirety.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CBOE proposes to amend its rules regarding the handling of
certain complex orders. The text of the proposed rule change is
available on the Exchange's Web site at (https://
[[Page 61695]]
www.cboe.org/Legal), at the CBOE's Office of the Secretary, 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
CBOE Rule 6.53C, ``Complex Orders on the Hybrid System,'' governs
the electronic handling and execution of complex orders by the
Exchange's Hybrid System. The purpose of this filing is to allow for
the electronic handling and execution of stock-option orders on the
Exchange. These are a type of complex order that consist of an option
component and a stock component. Stock-option orders are popular with
investors (e.g., buy-writes) and are frequently handled on CBOE. To
date, these orders are handled manually and the option component is
traded in open outcry by a broker. With the establishment of the CBOE
Stock Exchange (``CBSX''), an electronic stock trading facility of
CBOE, the Exchange is now positioned to handle and trade stock-option
orders electronically, with the stock component execution taking place
on CBSX.
The Exchange proposes to handle these orders in a manner that is
substantially similar to other complex orders handled pursuant to CBOE
Rule 6.53C. Electronic stock-option orders will be accepted by the
Hybrid System and auctioned in the Complex Order Auction (``COA'')
pursuant to CBOE Rule 6.53C(d) when the requirements for an auction are
met. An unexecuted stock-option order can also be maintained by the
system (either in the Complex Order Book (``COB'') or on the PAR
workstation), either of which will monitor the marketability of the
order, taking into account the CBSX market for the execution of the
stock component of the order.
There are four differences between the handling of stock-option
orders and other complex order types handled pursuant to CBOE Rule
6.53C. First, as previously mentioned, the stock portion of the stock-
option order will be executed on CBSX. All such executions will be
consistent with CBSX trading rules, including priority and matching
rules. The execution of the stock-option order cannot take place until
the desired price of the stock component is achievable on CBSX. The
option leg of the stock-option order will not trade ahead of any
resting public customer orders on the Hybrid book. This is consistent
with existing CBOE Rule 6.45A(b)(ii), which provides that stock-option
orders do not have priority over bids/offers in the public customer
limit order book. The option leg may be executed in one-cent increments
regardless of the minimum increment applicable to the series.
For example: a customer enters a buy-write order to buy 100 shares
of XYZ (trading around $40) and sell a 45 call with a net price of
$39.00. There is a public customer order in the Hybrid book to sell the
45 call for $1. When executing the buy-write against auction responses,
the system will not allow the option leg of the transaction to trade at
$1 or higher (thereby preserving the resting limit order's priority at
that price). An execution could occur where the option leg prints at
$0.99 and the stock trade prints at $39.99 (in accordance with CBSX
priority rules). This meets the buy-write's limit price (involving a
total cost of $3900) and does not violate priority on CBOE or CBSX.
Second, the execution of a stock-option order submitted to the COB
is slightly different than the priority outlined in CBOE Rule
6.53C(c)(ii). More specifically, a stock-option order submitted to the
CBOE will trade in the following sequence: (1) Against other stock-
option orders in the COB using public customer priority and then time
priority (thus, if there are multiple public customer and broker-dealer
stock-option orders resting in COB, the public customer orders will
trade first with time priority among them, and then the broker-dealer
orders will trade with time priority among them); (2) against
individual orders or quotes on the Exchange (i.e., the CBSX book and
the options Hybrid book), provided the stock-option order can be
executed in full (or in a permissible ratio); and (3) against orders or
quotes submitted by Market Participants, as set forth in CBOE Rule
6.53C(c)(ii)(3). Because a portion of a stock-option order is executed
on a different platform (CBSX), it is more practical to execute resting
stock-option orders against other stock-option orders received by the
system first before scanning for executions against the legs on the
CBSX book and the options Hybrid book.
The third difference involves the manner in which stock-option
orders are executed through the COA. Individual orders and quotes for
the various legs of the order will have last priority. Again, this is
because it is more practical to execute resting stock-option orders
against other stock-option orders received by the system first before
scanning for executions against the legs on the CBSX book and the
options Hybrid book.
For example: the market for XYZ stock on CBSX is $39.94-39.99.
The 45 call market on CBOE is $0.95-1.00. A stock-option order is
entered to buy 100 shares and sell the 45 call with a net price of
$39.00. The stock-option order is auctioned through the COA, but no
responses are received (if responses had been received, priority
would have been afforded to public customer responses and any
resting public customer stock-option orders that were marketable
against the auctioned order using time priority). After the system
has determined that there are no responses or resting stock-option
orders that can trade against the auctioned stock-option order, it
will look to the individual leg markets. In this case, the stock-
option order will be filled by the system by executing the stock at
$39.99 against the CBSX book and the option at $1 against the CBOE
book.
With respect to the last difference, the N-second group timer shall
not be in effect for stock-option orders.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\4\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\5\ in particular, in that it
is designed to facilitate transactions in securities, to promote just
and equitable principles of trade, to prevent fraudulent and
manipulative acts and, in general, to protect investors and the public
interest. In particular, the Exchange believes that the addition of
stock-option orders to the list of complex orders eligible for
electronic handling under CBOE Rule 6.53C is a significant enhancement
for investors seeking automated handling of stock-option orders.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
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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
[[Page 61696]]
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
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-CBOE-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-CBOE-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 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-2007-68 and should be
submitted on or before November 21, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-21383 Filed 10-30-07; 8:45 am]
BILLING CODE 8011-01-P
