Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change to Allow the Exchange to Open at 8:30 a.m., 61919-61921 [E7-21455]
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mstockstill on PROD1PC66 with NOTICES
Federal Register / Vol. 72, No. 211 / Thursday, November 1, 2007 / Notices
Trust (for each Fund), prior to listing,
that the NAV per Share for each Fund
will be calculated daily and made
available to all market participants at
the same time.22 In addition, the
Exchange represents that the Web site
disclosure of the portfolio composition
of each Fund and the disclosure by the
Advisor of the IIV File and the PCF will
occur at the same time. Moreover,
Commentary .02(b) to Amex Rule
1000A–AEMI provides for ‘‘fire wall’’
procedures with respect to personnel
who have access to information
concerning changes and adjustments to
the Underlying Index and the
implementation of procedures to
prevent the use and dissemination of
material non-public information
regarding the Underlying Index.
Further, Commentary .09 to Amex Rule
1000A–AEMI sets forth restrictions on
members or persons associated with
members who have knowledge of the
terms and conditions of certain orders
(the execution of which are imminent)
to enter, based on such knowledge, an
order to buy or sell a Share that is the
subject of such orders, an order to buy
or sell the overlying option class, or an
order to buy or sell any related
instrument.
The Commission also believes that the
Exchange’s trading halt rules are
reasonably designed to prevent trading
in the Shares when transparency is
impaired. Amex Rule 1002A(b)(ii)
provides that the Exchange will halt
trading in the Shares if the circuit
breaker parameters of Amex Rule 117
have been reached. In exercising its
discretion to halt or suspend trading in
the Shares, the Exchange may consider
factors such as those set forth in Amex
Rule 918C(b) and other relevant factors.
In addition, Amex Rule 1002A(b)(ii)
provides that, if the IIV or the
Underlying Index value applicable to
that series of Index Fund Shares is not
being disseminated as required, the
Exchange may halt trading during the
day in which the interruption to the
dissemination of the IIV or the
Underlying Index value occurs. If the
interruption to the dissemination of the
IIV or the Underlying Index value
persists past the trading day in which it
occurred, the Exchange will halt trading
no later than the beginning of the
trading day following the interruption.
The Commission further believes that
the trading rules and procedures to
which the Shares will be subject
pursuant to this proposal are consistent
with the Act. The Exchange has
represented that the Shares are equity
securities subject to Amex’s rules
22 See
Amex Rule 1002A(a)(ii).
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governing the trading of equity
securities.
In support of this proposal, the
Exchange has made the following
representations:
(1) The Exchange’s surveillance
procedures are adequate to properly
monitor the trading of the Shares.
Specifically, Amex will rely on its
existing surveillance procedures
governing Index Fund Shares.
(2) Prior to the commencement of
trading, the Exchange will inform its
members and member organizations in
an Information Circular regarding the
application of Commentary .06 to Amex
Rule 1000A–AEMI to the Funds and the
prospectus and/or product description
delivery requirements that apply to the
Funds. The Information Circular will
also provide guidance with regard to
member firm compliance
responsibilities when effecting
transactions in the Shares and
highlighting the special risks and
characteristics of the Funds and Shares,
as well as applicable Exchange rules. In
addition, the Information Circular will
disclose that the procedures for
purchases and redemptions of Shares in
Creation Units are described in each
Fund’s prospectus, and that Shares are
not individually redeemable, but are
redeemable only in Creation Unit
aggregations or multiples thereof.
This approval order is based on the
Exchange’s representations.
Finally, the Commission believes that
the commenter’s concerns over its
proprietary interest in the process and
system for calculating an intra-day
indicative value relating to leveraged
and inverse exchange traded funds to be
purportedly used by the Trust do not
preclude the Commission from
approving the proposed rule change.
Specifically, to the extent that the
commenter’s argument raises a claim of
misappropriation or infringement of a
protected property right, the
Commission believes it is inappropriate
for the Commission to attempt to resolve
these issues in a proceeding involving
the approval of a proposed rule change
by a national securities exchange under
the federal securities laws. To take such
delaying action whenever a third party
claim is asserted could stifle
Commission review of new products
proposed by self-regulatory
organizations. The plain language of the
U.S. securities laws does not suggest
that Congress intended that the
Commission attempt, in the context of
an approval proceeding for a securities
product, to resolve intellectual property
right claims that can be pursued
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61919
elsewhere.23 Accordingly, the
commenter’s assertions do not form a
basis for the Commission to either
disapprove or delay approval of the
Exchanges’ proposals.24
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,25 that the
proposed rule change (SR–Amex–2007–
74), as modified by Amendment No. 1
thereto, be, and it hereby is, approved.
By the Commission.
Nancy M. Morris,
Secretary.
[FR Doc. E7–21503 Filed 10–31–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56698; File No. SR–CHX–
2007–23]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing of Proposed Rule Change to
Allow the Exchange to Open at 8:30
a.m.
October 24, 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 October
2, 2007, the Chicago Stock Exchange,
Inc. (‘‘CHX’’ or ‘‘Exchange’’) filed with
23 The Commission notes that Congress has
enacted an elaborate statutory framework for the
establishment, preservation, and protection of
intellectual property rights and has established
specific federal agencies to administer these laws.
Separate state causes of action also may be available
to the holders of these proprietary rights as well.
The Commission is not required by the Act to make,
and has not made, a legal determination of
proprietary claims flowing from the Trust’s
application of the process and system for
calculating an intraday indicative value for the
Shares of each Fund. This is not to say, however,
that the Commission might not separately have a
federal interest in the outcome of any proceeding
challenging a new product or be willing to express
a view regarding such a proceeding in the event a
subsequent action provides the Commission
opportunity to address these matters, e.g., to protect
investors and the public interest.
24 See Securities Exchange Act Release Nos.
36070 (August 9, 1995), 60 FR 42205 (August 15,
1995) (SR–Amex–94–55 and SR–CBOE–95–01)
(order approving the listing and trading of warrants
on the Deutscher Aktien Index by Amex and the
Chicago Board Options Exchange, Incorporated
(‘‘CBOE’’)); 28475 (September 27, 1990), 55 FR
40492 (October 3, 1990) (SR–Amex–89–16) (order
approving the trading by Amex of options on the
Japan Index); and 26709 (April 11, 1989), 54 FR
15280 (April 17, 1989) (SR–Phlx–88–07; SR–Amex–
88–10; and SR–CBOE–88–09) (order approving the
listing of index participations by Amex, CBOE, and
the Philadelphia Stock Exchange, Inc.).
25 15 U.S.C. 78s(b)(2).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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61920
Federal Register / Vol. 72, No. 211 / Thursday, November 1, 2007 / Notices
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
CHX. 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 CHX proposes to amend its rules
allow the CHX to open at 8:30 a.m.,
without regard to whether the primary
market in a particular security is open
and to make other associated changes to
its rules. The text of this proposed rule
change is available on the Exchange’s
Web site at https://www.chx.com/
content/Participant_Information/
Rules_Filings.html, at the CHX’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
CHX included statements concerning
the purpose of and basis for the
proposed rule changes and discussed
any comments it received regarding the
proposal. The text of these statements
may be examined at the places specified
in Item IV below. The CHX has prepared
summaries, set forth in sections A, B
and C below, of the most significant
aspects of such statements.
mstockstill on PROD1PC66 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Under existing rules, the Exchange
generally opens for trading in a security
once the primary market has done so.3
If the primary market announces that it
will not open, or if the primary market
has delayed its opening for reasons
other than a regulatory halt, the rules
permit two senior CHX officials to open
the market.4
While these rules provided a
reasonable way to handle the opening as
the Exchange transitioned from its
specialist trading model to its new fullyautomated trading model, the Exchange
believes that it is no longer appropriate
to base its opening time on the actions
taken by other markets. Through this
filing, the Exchange would amend its
3 See
CHX Rules, Article 20, Rule 1(b).
CHX Rules, Article 20, Interpretation and
Policy .01.
4 See
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rules to permit trading to begin at 8:30
a.m., except for trading in specified
exchange-traded funds, which would
begin at 7:20 a.m.5
In conjunction with this change to the
opening time of the Exchange’s market,
the Exchange would make two other
changes to its rules. First, the Exchange
would eliminate the opening cross order
type. These cross orders, which are
designed to execute at the primary
market opening price, likely could no
longer be effectively executed on the
Exchange, once the proposed change is
made to the time of the Exchange’s
opening.6 In addition, the Exchange
would add a new rule that prevents
immediate or cancel (‘‘IOC’’) market
orders from being accepted until either
(i) the primary market in a security has
opened trading in that security or (ii)
two senior officers of the Exchange have
determined that it is appropriate for the
Exchange to accept IOC market orders.7
This change is designed to prevent
market orders from being executed at
prices that are far away from the
primary market opening price, when
that market ultimately opens.
2. Statutory Basis
The CHX believes the proposal is
consistent with the requirements of the
Act and the rules and regulations
thereunder that are applicable to a
national securities exchange, and, in
particular, with the requirements of
5 See Proposed CHX Rules, Article 20, Rule 1(b).
The Exchange represents that Exchange-traded
funds that begin trading at 7:20 a.m. would be
announced, from time to time, by the Exchange in
a customer service notification or other type of
update. The only exchange-traded fund currently
trading at 7:20 a.m. is the streetTRACKS Gold
Trust. Telephone conversation between Ellen
Neely, President and General Counsel, CHX,
Richard Holley III, Senior Special Counsel, Division
of Market Regulation (‘‘Division’’), Commission,
and Sonia Trocchio, Special Counsel, Division,
Commission (October 18, 2007).
6 If the Exchange’s systems allow its participants
to begin trading before the primary market opens
trading in a particular security, an opening cross
order (which must execute at the primary market
opening price) might violate the protected
quotations of other markets. To avoid this potential
result, the Exchange believes that it is appropriate
to eliminate this order type.
7 See Proposed CHX Rules, Article 1, Rule 2(n)
and Article 20, Rule 4(b)(13). For purposes of this
rule, another exchange would be considered to have
opened for trading in a security when the first trade
in that security occurs in that market on or after
8:30 a.m. The Exchange has stated that two senior
officers of the Exchange might decide that it is
appropriate to allow IOC market orders to be
accepted if, for example, the primary market has
announced that it will open later than expected, but
other markets are open to provide additional
liquidity. Telephone conversation between Ellen
Neely, President and General Counsel, CHX,
Richard Holley III, Senior Special Counsel,
Division, Commission, and Sonia Trocchio, Special
Counsel, Division, Commission (October 18, 2007).
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Section 6(b).8 The proposed rule change
is consistent with Section 6(b)(5) of the
Act 9 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
begin trading at 8:30 a.m., without
regard to whether the primary market in
a particular security is open.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CHX 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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such other 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 CHX consents, the
Commission will:
(A) By order approve the proposed
rule changes, or
(B) Institute proceedings to determine
whether the proposed rule changes
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–2007–23 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
8 15
9 15
E:\FR\FM\01NON1.SGM
U.S.C. 78(f)(b).
U.S.C. 78(f)(b)(5).
01NON1
Federal Register / Vol. 72, No. 211 / Thursday, November 1, 2007 / Notices
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–CHX–2007–23. 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 CHX. 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–2007–23 and should
be submitted on or before November 23,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Nancy M. Morris,
Secretary.
[FR Doc. E7–21455 Filed 10–31–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
mstockstill on PROD1PC66 with NOTICES
[Release No. 34–56704; File No. SR-CHX–
2007–20]
Self-Regulatory Organizations; The
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Permitting
Certain Transactions To Have PostTrade Anonymity
October 25, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
10 17
CFR 200.30–3(a)(12).
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19:40 Oct 31, 2007
Jkt 214001
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
16, 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 and II below, which Items have
been prepared substantially by the
Exchange. The Exchange filed the
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(6) thereunder,4 which renders
it 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
rules to allow participants to request
post-trade anonymity with respect to
certain transactions executed on the
Exchange. The text of the proposed rule
change is available at https://
www.chx.com, at the Exchange, and 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,
CHX included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received regarding the
proposal. The text of these statements
may be examined at the places specified
in Item IV below. CHX 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
Currently, when a trade occurs on the
Exchange, a report is sent to the parties
to the trade, or to the participant that
submitted the trade on behalf of its
customer, confirming details about the
transaction, such as the number of
shares executed, the price of the
execution, and the identities of the
parties to the trade. Similar information
about the trade is sent to the National
Securities Clearing Corporation
(‘‘NSCC’’) for clearing purposes.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
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61921
Through this proposal, CHX’s
participants would be allowed to
request that their identities be kept
confidential on trade and clearing
reports associated with single-sided
executions, except when necessary for
regulatory and other identified
purposes.5 CHX would reveal the
identity of a participant or the
participant’s clearing firm: (1) For
regulatory purposes or to comply with
an order of a court or arbitrator; (2) if the
NSCC ceases to act for a participant or
a participant’s clearing firm and NSCC
determines not to guarantee the
settlement of a participant’s trades; or
(3) if both parties to the trade consent.6
The Exchange proposes that these
anonymity rules apply to all trades
executed on the Exchange except the
execution of cross orders.7 The
Exchange believes that it would be
difficult to provide anonymity
protection to cross orders and still
provide the participant submitting the
order with a sufficiently detailed trade
or clearing report to permit it to
effectively service its customers’ needs.
Under the proposed rule, the
Exchange would reveal to a participant,
no later than the end of the day on the
date an anonymous trade was executed,
when that participant has submitted an
order that has executed against an order
submitted by that same participant.8 In
addition, because CHX’s participants
would not be able to retain information
about the contra parties to anonymous
transactions, CHX would keep that
information in its original electronic
form for the time periods required by
5 See Proposed Article 21, Rule 5(a) and (b). The
CHX’s trade reporting functionality would be
designed to keep confidential the identity of any
party to a trade that requests anonymity, but to
reveal the identities of other parties to the trade.
The clearing functionality, on the other hand,
would initially be designed such that, if any party
to a transaction requests anonymity, the entire
transaction would be considered anonymous. If
later changes in the clearing technology permit a
more refined outcome, CHX represents that it likely
would seek to modify this functionality to mirror
the trade reporting design described above.
6 While the Exchange would keep contra party
information confidential for an anonymous trade
that was being reviewed through the initial stages
of the Exchange’s clearly erroneous or systems
disruption trade review process, the Exchange
would reveal that information upon any request for
an appeal from the Exchange’s decision on those
matters and would make that information available
to any participant that seeks to arbitrate a dispute
relating to an otherwise anonymous trade. The
Exchange believes that it is appropriate to reveal
contra party information in these and other similar
circumstances pursuant to the proposed ‘‘regulatory
purposes’’ exception to the anonymity rule. See
Proposed Article 21, Rule 5(b).
7 See Proposed Article 21, Rule 5(e).
8 See Proposed Article 21, Rule 5(c).
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]]>Agencies
[Federal Register Volume 72, Number 211 (Thursday, November 1, 2007)]
[Notices]
[Pages 61919-61921]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-21455]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56698; File No. SR-CHX-2007-23]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing of Proposed Rule Change to Allow the Exchange to Open
at 8:30 a.m.
October 24, 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 October 2, 2007, the Chicago Stock Exchange, Inc. (``CHX'' or
``Exchange'') filed with
[[Page 61920]]
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 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 CHX proposes to amend its rules allow the CHX to open at 8:30
a.m., without regard to whether the primary market in a particular
security is open and to make other associated changes to its rules. The
text of this proposed rule change is available on the Exchange's Web
site at https://www.chx.com/content/Participant_Information/Rules_
Filings.html, at the CHX'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 CHX included statements
concerning the purpose of and basis for the proposed rule changes and
discussed any comments it received regarding the proposal. The text of
these statements may be examined at the places specified in Item IV
below. The CHX 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
Under existing rules, the Exchange generally opens for trading in a
security once the primary market has done so.\3\ If the primary market
announces that it will not open, or if the primary market has delayed
its opening for reasons other than a regulatory halt, the rules permit
two senior CHX officials to open the market.\4\
---------------------------------------------------------------------------
\3\ See CHX Rules, Article 20, Rule 1(b).
\4\ See CHX Rules, Article 20, Interpretation and Policy .01.
---------------------------------------------------------------------------
While these rules provided a reasonable way to handle the opening
as the Exchange transitioned from its specialist trading model to its
new fully-automated trading model, the Exchange believes that it is no
longer appropriate to base its opening time on the actions taken by
other markets. Through this filing, the Exchange would amend its rules
to permit trading to begin at 8:30 a.m., except for trading in
specified exchange-traded funds, which would begin at 7:20 a.m.\5\
---------------------------------------------------------------------------
\5\ See Proposed CHX Rules, Article 20, Rule 1(b). The Exchange
represents that Exchange-traded funds that begin trading at 7:20
a.m. would be announced, from time to time, by the Exchange in a
customer service notification or other type of update. The only
exchange-traded fund currently trading at 7:20 a.m. is the
streetTRACKS[reg] Gold Trust. Telephone conversation between Ellen
Neely, President and General Counsel, CHX, Richard Holley III,
Senior Special Counsel, Division of Market Regulation
(``Division''), Commission, and Sonia Trocchio, Special Counsel,
Division, Commission (October 18, 2007).
---------------------------------------------------------------------------
In conjunction with this change to the opening time of the
Exchange's market, the Exchange would make two other changes to its
rules. First, the Exchange would eliminate the opening cross order
type. These cross orders, which are designed to execute at the primary
market opening price, likely could no longer be effectively executed on
the Exchange, once the proposed change is made to the time of the
Exchange's opening.\6\ In addition, the Exchange would add a new rule
that prevents immediate or cancel (``IOC'') market orders from being
accepted until either (i) the primary market in a security has opened
trading in that security or (ii) two senior officers of the Exchange
have determined that it is appropriate for the Exchange to accept IOC
market orders.\7\ This change is designed to prevent market orders from
being executed at prices that are far away from the primary market
opening price, when that market ultimately opens.
---------------------------------------------------------------------------
\6\ If the Exchange's systems allow its participants to begin
trading before the primary market opens trading in a particular
security, an opening cross order (which must execute at the primary
market opening price) might violate the protected quotations of
other markets. To avoid this potential result, the Exchange believes
that it is appropriate to eliminate this order type.
\7\ See Proposed CHX Rules, Article 1, Rule 2(n) and Article 20,
Rule 4(b)(13). For purposes of this rule, another exchange would be
considered to have opened for trading in a security when the first
trade in that security occurs in that market on or after 8:30 a.m.
The Exchange has stated that two senior officers of the Exchange
might decide that it is appropriate to allow IOC market orders to be
accepted if, for example, the primary market has announced that it
will open later than expected, but other markets are open to provide
additional liquidity. Telephone conversation between Ellen Neely,
President and General Counsel, CHX, Richard Holley III, Senior
Special Counsel, Division, Commission, and Sonia Trocchio, Special
Counsel, Division, Commission (October 18, 2007).
---------------------------------------------------------------------------
2. Statutory Basis
The CHX believes the proposal is consistent with the requirements
of the Act and the rules and regulations thereunder that are applicable
to a national securities exchange, and, in particular, with the
requirements of Section 6(b).\8\ The proposed rule change is consistent
with Section 6(b)(5) of the Act \9\ 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 begin trading at 8:30 a.m., without regard to whether the
primary market in a particular security is open.
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\8\ 15 U.S.C. 78(f)(b).
\9\ 15 U.S.C. 78(f)(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
CHX 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
Within 35 days of the date of publication of this notice in the
Federal Register or within such other 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 CHX consents, the Commission will:
(A) By order approve the proposed rule changes, or
(B) Institute proceedings to determine whether the proposed rule
changes 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-2007-23 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary,
[[Page 61921]]
Securities and Exchange Commission, 100 F Street, NE., Washington, DC
20549-1090.
All submissions should refer to File Number SR-CHX-2007-23. 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 CHX. 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-2007-23 and should be
submitted on or before November 23, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-21455 Filed 10-31-07; 8:45 am]
BILLING CODE 8011-01-P
