Self-Regulatory Organizations; American Stock Exchange LLC; Boston Stock Exchange, Inc.; Chicago Board Options Exchange, Incorporated; International Securities Exchange, LLC; Order Approving Proposed Rule Changes; and NYSEArca, Inc.; Order Approving Proposed Rule Change and Amendment No. 1 Thereto Relating to the Definition of a Complex Trade, 64094-64095 [E7-22165]

Download as PDF 64094 Federal Register / Vol. 72, No. 219 / Wednesday, November 14, 2007 / Notices disqualification ends. Multiplying 2.5 by the calendar year 2008 monthly compensation base of $1,280 produces $3,200. Accordingly, the amount determined under section 4(a–2)(i)(A) is $3,200 for calendar year 2008. Maximum Daily Benefit Rate Section 2(a)(3) contains a formula for determining the maximum daily benefit rate for registration periods beginning after June 30, 1989, and after each June 30 thereafter. Legislation enacted on October 9, 1996, revised the formula for indexing maximum daily benefit rates. Under the prescribed formula, the maximum daily benefit rate increases by approximately two-thirds of the cumulative growth in average national wages since 1984. The maximum daily benefit rate for registration periods beginning after June 30, 2008, shall be equal to 5 percent of the monthly compensation base for the base year immediately preceding the beginning of the benefit year. Section 2(a)(3) further provides that if the amount so computed is not a multiple of $1, it shall be rounded down to the nearest multiple of $1. The calendar year 2007 monthly compensation base is $1,230. Multiplying $1,230 by 0.05 yields $61.50, which must then be rounded down to $61. Accordingly, the maximum daily benefit rate for days of unemployment and days of sickness beginning in registration periods after June 30, 2008, is determined to be $61. Dated: November 7, 2007. By Authority of the Board. Beatrice Ezerski, Secretary to the Board. [FR Doc. E7–22267 Filed 11–13–07; 8:45 am] BILLING CODE 7905–01–P SECURITIES AND EXCHANGE COMMISSION mstockstill on PROD1PC66 with NOTICES Sunshine Act Meeting Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Pub. L. 94–409, that the Securities and Exchange Commission will hold an Open Meeting on Thursday, November 15, 2007 at 10 a.m., in Room L–002, the Auditorium. The subject matters of the Open Meeting will be: 1. The Commission will consider rule proposals to improve mutual fund disclosure by providing investors with a summary prospectus containing key information in plain English in a clear and concise format, and by enhancing the availability on the Internet of more VerDate Aug<31>2005 18:23 Nov 13, 2007 Jkt 214001 detailed information to investors. The Commission also will consider whether to propose related amendments to Form N–1A. 2. The Commission will consider whether to adopt amendments to Form 20–F, Rules 1–02, 3–10 and 4–01 of Regulation S–X, Forms F–4 and S–4, and Rule 701 under the Securities Act to accept financial statements prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board without reconciliation to generally accepted accounting principles as used in the United States when contained in the filings of foreign private issuers with the Commission. 3. The Commission will consider whether to adopt amendments to its disclosure and reporting requirements under the Securities Act of 1933 and Securities Exchange Act of 1934 to expand the number of companies that qualify for scaled disclosure requirements for smaller reporting companies. Companies with less than $75 million in public equity float would qualify for the scaled requirements, and companies without a calculable public equity float would qualify if their annual revenues were below $50 million. To streamline and simplify regulation, the amendments to be considered would move the scaled disclosure requirements from Regulation S–B into Regulation S–K and would eliminate the ‘‘SB’’ forms. 4. The Commission will consider whether to adopt amendments to Rule 144 to shorten the holding period for the resale of restricted securities if the issuer of the securities is subject to the Exchange Act reporting requirements. The amendments also substantially reduce the restrictions applicable to resales of restricted securities by nonaffiliates of both reporting and nonreporting companies. In addition, the amendments codify several staff interpretations relating to Rule 144 and revise the manner of sale requirements, volume limitations, and Form 144 filing thresholds. Finally, the Commission also will consider whether to adopt related amendments to Rule 145. 5. The Commission will consider whether to adopt amendments to Rule 12h–1 under the Exchange Act to provide two exemptions from the registration requirements of the Exchange Act for compensatory employee stock options. The first exemption would be available to issuers that are not required to file periodic reports under the Exchange Act, and the second exemption would be available to issuers that are required to file those reports because they have registered a PO 00000 Frm 00057 Fmt 4703 Sfmt 4703 class of security under section 12 of the Exchange Act or are required to file those reports pursuant to section 15(d) of the Exchange Act. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551–5400. Dated: November 7, 2007. Nancy M. Morris, Secretary. [FR Doc. E7–22169 Filed 11–13–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56761; SR–Amex–2007–65; SR–BSE–2007–45; SR–CBOE–2007–64; SR– ISE–2007–44; SR–NYSEArca–2007–65] Self-Regulatory Organizations; American Stock Exchange LLC; Boston Stock Exchange, Inc.; Chicago Board Options Exchange, Incorporated; International Securities Exchange, LLC; Order Approving Proposed Rule Changes; and NYSEArca, Inc.; Order Approving Proposed Rule Change and Amendment No. 1 Thereto Relating to the Definition of a Complex Trade November 7, 2007. I. Introduction On June 27, 2007, September 13, 2007, June 12, 2007, June 1, 2007, and July 6, 2007, the American Stock Exchange LLC (‘‘Amex’’), the Boston Stock Exchange, Inc. (‘‘BSE’’), the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’), the International Securities Exchange, LLC (‘‘ISE’’), and NYSE Arca, Inc. (‘‘NYSE Arca’’) (each, an ‘‘Exchange’’ and, collectively, the ‘‘Exchanges’’), respectively, filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 proposed rule changes to amend each of their respective rules governing the operation of the Intermarket Option Linkage (‘‘Linkage’’) to modify the definition of ‘‘complex trade’’ to include stock-option trades. On July 11, 2007, NYSE Arca filed Amendment No. 1 to its proposed rule change.3 The proposed rule changes, as 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Amendment No. 1 to SR–NYSEArca–2007–65 effected technical corrections to the proposed rule change. 2 17 E:\FR\FM\14NON1.SGM 14NON1 Federal Register / Vol. 72, No. 219 / Wednesday, November 14, 2007 / Notices amended, were published for comment in the Federal Register on October 4, 2007.4 The Commission received no comments on the proposed rule changes. This order approves the proposed rule changes, as amended. mstockstill on PROD1PC66 with NOTICES II. Description of the Proposals Under section 8(c)(iii)(G) of the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage (‘‘Linkage Plan’’),5 the Linkage Plan participants (‘‘Participants’’) may amend the definition of the term ‘‘complex trade’’ from time to time. The Participants have agreed to change the definition of ‘‘complex trade’’ to extend the associated trade-through liability exemption to cover certain stock-option trades. Accordingly, each of the Exchanges has submitted a proposal that would amend each such Exchange’s definition of ‘‘complex trade,’’ set forth in the Exchange’s respective rules pertaining to the Linkage, to include the execution of a stock-option order to buy or sell a stated number of units of an underlying stock or a security convertible into the underlying stock (‘‘convertible security’’) coupled with the purchase or sale of option contract(s) on the opposite side of the market representing either (A) the same number of units of the underlying stock or convertible security, or (B) the number of units of the underlying stock or convertible security necessary to create a delta neutral position, but in no case in a ratio greater than eight option contracts per unit of trading of the underlying stock or convertible security established for that series by the Options Clearing Corporation.6 4 Securities Exchange Act Release No. 56555 (September 27, 2007), 72 FR 56814. 5 On July 28, 2000, the Commission approved a national market system plan for the purpose of creating and operating the Linkage proposed by Amex, CBOE, and ISE. See Securities Exchange Act Release No. 43086 (July 28, 2000), 65 FR 48023 (August 4, 2000). Subsequently, the Philadelphia Stock Exchange, Inc. (‘‘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). 6 The Exchanges propose to amend their respective rules that define ‘‘complex trade’’ for Linkage purposes, namely Amex Rule 940(b)(3), Boston Options Exchange Rule Chapter XII, Section 1(c), CBOE Rule 6.80(4), ISE Rule 1900(3), and NYSE Arca Rule 6.92(a)(4). The Phlx filed a proposed rule change with the Commission to amend its definitions of ‘‘synthetic option’’ and ‘‘complex trade’’ to conform such definitions with the related ‘‘stock option’’ and ‘‘complex trade’’ definitions of the Exchanges. See Securities Exchange Act Release No. 56608 (October 3, 2007), 72 FR 57985 (October 11, 2007) (SR–Phlx– 2007–40). The Commission is approving proposed rule change SR–Phlx–2007–40 in a separate order VerDate Aug<31>2005 18:23 Nov 13, 2007 Jkt 214001 III. Discussion After careful review, the Commission finds that the proposed rule changes, as amended, are consistent with the requirements of the Act and the rules and regulations thereunder applicable to national securities exchanges.7 In particular, the Commission finds that the proposed rule changes, as amended, are consistent with the provisions of section 6(b)(5) of the Act,8 which requires, among other things, that national securities exchanges’ rules be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and to perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. The Commission believes that by amending the definition of ‘‘complex trade’’ to include certain stock-option orders as described above, and by providing a consistent definition of ‘‘complex trade’’ in the rules of the Exchanges, the proposals may facilitate the execution of such complex orders. IV. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Act,9 that the proposed rule changes (SR–Amex– 2007–65; SR–BSE–2007–45; SR–CBOE– 2007–64; SR–ISE–2007–44; SR– NYSEArca–2007–65), as amended, are approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–22165 Filed 11–13–07; 8:45 am] BILLING CODE 8011–01–P today. See Securities Exchange Act Release No. 56760 (November 7, 2007). 7 In approving these proposals, the Commission has considered the proposed rules’ impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 8 15 U.S.C. 78f(b)(5). 9 15 U.S.C. 78s(b)(2). 10 17 CFR 200.30–3(a)(12). PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 64095 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56764; File No. SR–Amex2007–113] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Delete Previously Approved Rules Relating To a New Class of Off-Floor Market Maker Called Designated Amex Remote Traders November 7, 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 25, 2007, the American Stock Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. The Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change pursuant to section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b–4(f)(6) thereunder.4 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 Amex proposes to delete the recently approved changes to its rules establishing a new class of off-floor market makers known as Designated Amex Remote Traders, or ‘‘DARTs.’’ 5 The text of the proposed rule change is available on the Amex’s Web site at https://www.amex.com, the Amex’s principal office, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, 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 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b–4(f)(6). 5 See Securities Exchange Act Release No. 56446 (Sept. 17, 2007), 72 FR 54303 (Sept. 24, 2007) (approving SR–Amex–2007–85). 2 17 E:\FR\FM\14NON1.SGM 14NON1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 72, Number 219 (Wednesday, November 14, 2007)]
[Notices]
[Pages 64094-64095]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-22165]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56761; SR-Amex-2007-65; SR-BSE-2007-45; SR-CBOE-2007-
64; SR-ISE-2007-44; SR-NYSEArca-2007-65]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Boston Stock Exchange, Inc.; Chicago Board Options Exchange, 
Incorporated; International Securities Exchange, LLC; Order Approving 
Proposed Rule Changes; and NYSEArca, Inc.; Order Approving Proposed 
Rule Change and Amendment No. 1 Thereto Relating to the Definition of a 
Complex Trade

November 7, 2007.

I. Introduction

    On June 27, 2007, September 13, 2007, June 12, 2007, June 1, 2007, 
and July 6, 2007, the American Stock Exchange LLC (``Amex''), the 
Boston Stock Exchange, Inc. (``BSE''), the Chicago Board Options 
Exchange, Incorporated (``CBOE''), the International Securities 
Exchange, LLC (``ISE''), and NYSE Arca, Inc. (``NYSE Arca'') (each, an 
``Exchange'' and, collectively, the ``Exchanges''), respectively, filed 
with the Securities and Exchange Commission (``Commission''), pursuant 
to section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') 
\1\ and Rule 19b-4 thereunder,\2\ proposed rule changes to amend each 
of their respective rules governing the operation of the Intermarket 
Option Linkage (``Linkage'') to modify the definition of ``complex 
trade'' to include stock-option trades. On July 11, 2007, NYSE Arca 
filed Amendment No. 1 to its proposed rule change.\3\ The proposed rule 
changes, as

[[Page 64095]]

amended, were published for comment in the Federal Register on October 
4, 2007.\4\ The Commission received no comments on the proposed rule 
changes. This order approves the proposed rule changes, as amended.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 to SR-NYSEArca-2007-65 effected technical 
corrections to the proposed rule change.
    \4\ Securities Exchange Act Release No. 56555 (September 27, 
2007), 72 FR 56814.
---------------------------------------------------------------------------

II. Description of the Proposals

    Under section 8(c)(iii)(G) of the Plan for the Purpose of Creating 
and Operating an Intermarket Option Linkage (``Linkage Plan''),\5\ the 
Linkage Plan participants (``Participants'') may amend the definition 
of the term ``complex trade'' from time to time. The Participants have 
agreed to change the definition of ``complex trade'' to extend the 
associated trade-through liability exemption to cover certain stock-
option trades. Accordingly, each of the Exchanges has submitted a 
proposal that would amend each such Exchange's definition of ``complex 
trade,'' set forth in the Exchange's respective rules pertaining to the 
Linkage, to include the execution of a stock-option order to buy or 
sell a stated number of units of an underlying stock or a security 
convertible into the underlying stock (``convertible security'') 
coupled with the purchase or sale of option contract(s) on the opposite 
side of the market representing either (A) the same number of units of 
the underlying stock or convertible security, or (B) the number of 
units of the underlying stock or convertible security necessary to 
create a delta neutral position, but in no case in a ratio greater than 
eight option contracts per unit of trading of the underlying stock or 
convertible security established for that series by the Options 
Clearing Corporation.\6\
---------------------------------------------------------------------------

    \5\ On July 28, 2000, the Commission approved a national market 
system plan for the purpose of creating and operating the Linkage 
proposed by Amex, CBOE, and ISE. See Securities Exchange Act Release 
No. 43086 (July 28, 2000), 65 FR 48023 (August 4, 2000). 
Subsequently, the Philadelphia Stock Exchange, Inc. (``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).
    \6\ The Exchanges propose to amend their respective rules that 
define ``complex trade'' for Linkage purposes, namely Amex Rule 
940(b)(3), Boston Options Exchange Rule Chapter XII, Section 1(c), 
CBOE Rule 6.80(4), ISE Rule 1900(3), and NYSE Arca Rule 6.92(a)(4).
    The Phlx filed a proposed rule change with the Commission to 
amend its definitions of ``synthetic option'' and ``complex trade'' 
to conform such definitions with the related ``stock option'' and 
``complex trade'' definitions of the Exchanges. See Securities 
Exchange Act Release No. 56608 (October 3, 2007), 72 FR 57985 
(October 11, 2007) (SR-Phlx-2007-40). The Commission is approving 
proposed rule change SR-Phlx-2007-40 in a separate order today. See 
Securities Exchange Act Release No. 56760 (November 7, 2007).
---------------------------------------------------------------------------

III. Discussion

    After careful review, the Commission finds that the proposed rule 
changes, as amended, are consistent with the requirements of the Act 
and the rules and regulations thereunder applicable to national 
securities exchanges.\7\ In particular, the Commission finds that the 
proposed rule changes, as amended, are consistent with the provisions 
of section 6(b)(5) of the Act,\8\ which requires, among other things, 
that national securities exchanges' rules be designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to remove impediments to and to perfect 
the mechanism of a free and open market and a national market system 
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \7\ In approving these proposals, the Commission has considered 
the proposed rules' impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission believes that by amending the definition of 
``complex trade'' to include certain stock-option orders as described 
above, and by providing a consistent definition of ``complex trade'' in 
the rules of the Exchanges, the proposals may facilitate the execution 
of such complex orders.

IV. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\9\ that the proposed rule changes (SR-Amex-2007-65; SR-BSE-2007-
45; SR-CBOE-2007-64; SR-ISE-2007-44; SR-NYSEArca-2007-65), as amended, 
are approved.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-22165 Filed 11-13-07; 8:45 am]
BILLING CODE 8011-01-P

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