Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Increase the Class Quoting Limit in Fourteen Option Classes, 64261-64262 [E7-22337]
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64261
Federal Register / Vol. 72, No. 220 / Thursday, November 15, 2007 / Notices
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–Amex–2007–114 and
should be submitted on or before
December 6, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–22203 Filed 11–14–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56772; File No. SR–CBOE–
2007–126]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1
Thereto To Increase the Class Quoting
Limit in Fourteen Option Classes
November 8, 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 November
1, 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 by the CBOE. The Exchange
has designated this proposal as one
constituting a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule under
Section 19(b)(3)(A)(i) of the Act, 3 and
Rule 19b–4(f)(1) thereunder, 4 which
renders the proposal effective upon
filing with the Commission. The
Exchange filed Amendment No. 1 to the
proposed rule change on November 7,
2007. The Commission is publishing
this notice to solicit comments on the
proposed rule change, as amended, from
interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to increase the class
quoting limit in fourteen option classes.
The text of the proposed rule change is
available on CBOE’s Web site (https://
www.cboe.com), 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 parts 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 8.3A, Maximum Number
of Market Participants Quoting
Electronically per Product, establishes
class quoting limits (‘‘CQLs’’) for each
class traded on the Hybrid Trading
System.5 A CQL is the maximum
number of quoters that may quote
electronically in a given product and the
current levels are established from 25–
40, depending on the trading activity of
the particular product.
Rule 8.3A, Interpretation .01(c)
provides a procedure by which the
President of the Exchange may increase
the CQL for a particular product. In this
regard, the President of the Exchange
may increase the CQL in exceptional
circumstances, which are defined in the
rule as ‘‘substantial trading volume,
whether actual or expected.’’ 6 The
effect of an increase in the CQL is
procompetitive in that it increases the
number of market participants that may
quote electronically in a product. The
purpose of this filing is to increase the
CQL in the following option classes as
described below:
Current
CQL
Option class
pwalker on PROD1PC71 with NOTICES
Goldman Sachs Group Inc (GS) .............................................................................................................................................
Bear Stearns Companies (BSC) .............................................................................................................................................
Crocs Inc. (CROX) ...................................................................................................................................................................
Petro Bras Sa Petrobas A (PBR) ............................................................................................................................................
First Solar, Inc. (FSLR) ............................................................................................................................................................
Focus Media Holding Ltd. (FMCN) ..........................................................................................................................................
China Mobile Limited (CHL) ....................................................................................................................................................
Dryships Inc. (DRYS) ..............................................................................................................................................................
Petrochina Co Ltd ADS (PTR) ................................................................................................................................................
JA Solar Holdings Co. (JASO) ................................................................................................................................................
Trina Solar Ltd. (TSL) ..............................................................................................................................................................
LDK Solar Co. Ltd (LDK) .........................................................................................................................................................
China Digital TV Holding Co., Ltd. (STV) ................................................................................................................................
China Sunergy Co., Ltd. (CSUN) ............................................................................................................................................
The trading volume in these option
classes recently has increased
substantially. Increasing the CQL in
these classes will enable the Exchange
to enhance the liquidity offered, thereby
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(i).
4 17
CFR 240.19b–4(f)(1).
Rule 8.3A.01.
6 ‘‘Any actions taken by the President of the
Exchange pursuant to this paragraph will be
1 15
VerDate Aug<31>2005
19:50 Nov 14, 2007
offering deeper and more liquid
markets. The Exchange represents that it
has the systems capacity to support this
increase in the CQLs.
5 See
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New
QL
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25
60
50
50
50
50
50
50
50
50
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50
50
50
2. Statutory Basis
Accordingly, CBOE believes the
proposed rule change is consistent with
the Act and the rules and regulations
under the Act applicable to a national
submitted to the SEC in a rule filing pursuant to
Section 19(b)(3)(A) of the Exchange Act.’’ Rule
8.3A.01(c).
E:\FR\FM\15NON1.SGM
15NON1
64262
Federal Register / Vol. 72, No. 220 / Thursday, November 15, 2007 / Notices
securities exchange and, in particular,
the requirements of Section 6(b) of the
Act.7 Specifically, the Exchange
believes the proposed rule change is
consistent with the Section 6(b)(5) 8
requirements that the rules of an
exchange be designed to promote just
and equitable principles of trade, to
prevent fraudulent and manipulative
acts and, in general, to protect investors
and the public interest.
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
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 received nor
solicited written comments on the
proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
will take effect upon filing with the
Commission pursuant to Section
19(b)(3)(A)(i) of the Act 9 and Rule 19b–
4(f)(1) thereunder,10 because it
constitutes a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule.
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.
pwalker on PROD1PC71 with NOTICES
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
U.S.C. 78(f)(b).
U.S.C. 78(f)(b)(5).
9 15 U.S.C. 78s(b)(3)(A)(i).
10 17 CFR 240.19b–4(f)(1).
Number SR–CBOE–2007–126 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–56771; File No. SR–CHX–
2005–34]
• 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–2007–126. 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–2007–126 and
should be submitted on or before
December 6, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority. 11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–22337 Filed 11–14–07; 8:45 am]
BILLING CODE 8011–01–P
7 15
8 15
VerDate Aug<31>2005
19:50 Nov 14, 2007
11 17
Jkt 214001
PO 00000
CFR 200.30–3(a)(12).
Frm 00072
Fmt 4703
Sfmt 4703
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Order
Approving Proposed Rule Change and
Amendment No. 1 Thereto Regarding
Cancellation of the Stock Leg of a
Stock-Option Order and Notice of
Filing and Order Granting Accelerated
Approval of Amendment No. 3 Thereto
November 8, 2007.
I. Introduction
On November 14, 2005, the Chicago
Stock Exchange, Inc. (‘‘CHX’’ or
‘‘Exchange’’) 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 a proposed rule change to
permit the cancellation of the stock leg
of a stock-option order 3 if market
conditions in a non-Exchange market
prevent the options leg of the order from
being executed at the agreed upon price.
On July 11, 2006, the Exchange
submitted Amendment No. 1 to the
proposed rule change. The proposed
rule change, as amended, was published
for comment in the Federal Register on
July 27, 2006.4 The Commission
received no comments regarding the
proposal. The Exchange filed
Amendment No. 2 to the proposed rule
change on October 22, 2007, and
withdrew Amendment No. 2 on
November 5, 2007. On November 5,
2007, CHX filed Amendment No. 3 to
the proposal.5 This order approves the
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 A ‘‘stock-option order’’ would be defined as an
order to buy or sell a stated number of units of an
underlying or a related security coupled with either
(i) the purchase or sale of option contract(s) on the
opposite side of the market representing either the
same number of units of the underlying or related
security or the number of units of the underlying
security necessary to create a delta-neutral or deltahedged position or (ii) the purchase or sale of an
equal number of put and call option contracts, each
having the same exercise price, expiration date and
each representing the same number of units of stock
as, and on the opposite side of the market from, the
underlying or related security portion of the order.
See CHX’s proposed Interpretation and Policy .01(b)
to Rule 9 under Article 20.
4 See Securities Exchange Act Release No. 54185
(July 20, 2006), 71 FR 42693 (‘‘Notice’’).
5 In Amendment No. 3, CHX made revisions to
the proposed rule text and purpose section of the
proposal to conform the proposal with changes to
the Exchange’s trading model that were approved
by the Commission after publication of the Notice.
See Securities Exchange Act Release No. 54550
(September 29, 2006), 71 FR 59563 (October 10,
2006). In addition, in Amendment No. 3 CHX added
a representation to the proposal that would require
2 17
E:\FR\FM\15NON1.SGM
15NON1
]]>Agencies
[Federal Register Volume 72, Number 220 (Thursday, November 15, 2007)]
[Notices]
[Pages 64261-64262]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-22337]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56772; File No. SR-CBOE-2007-126]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1 Thereto To Increase the Class Quoting
Limit in Fourteen Option Classes
November 8, 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 November 1, 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 by the CBOE.
The Exchange has designated this proposal as one constituting a stated
policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule under Section
19(b)(3)(A)(i) of the Act, \3\ and Rule 19b-4(f)(1) thereunder, \4\
which renders the proposal effective upon filing with the Commission.
The Exchange filed Amendment No. 1 to the proposed rule change on
November 7, 2007. The Commission is publishing this notice to solicit
comments on the proposed rule change, as amended, from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(i).
\4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to increase the class quoting limit in fourteen
option classes. The text of the proposed rule change is available on
CBOE's Web site (https://www.cboe.com), 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 parts 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 8.3A, Maximum Number of Market Participants Quoting
Electronically per Product, establishes class quoting limits (``CQLs'')
for each class traded on the Hybrid Trading System.\5\ A CQL is the
maximum number of quoters that may quote electronically in a given
product and the current levels are established from 25-40, depending on
the trading activity of the particular product.
---------------------------------------------------------------------------
\5\ See Rule 8.3A.01.
---------------------------------------------------------------------------
Rule 8.3A, Interpretation .01(c) provides a procedure by which the
President of the Exchange may increase the CQL for a particular
product. In this regard, the President of the Exchange may increase the
CQL in exceptional circumstances, which are defined in the rule as
``substantial trading volume, whether actual or expected.'' \6\ The
effect of an increase in the CQL is procompetitive in that it increases
the number of market participants that may quote electronically in a
product. The purpose of this filing is to increase the CQL in the
following option classes as described below:
---------------------------------------------------------------------------
\6\ ``Any actions taken by the President of the Exchange
pursuant to this paragraph will be submitted to the SEC in a rule
filing pursuant to Section 19(b)(3)(A) of the Exchange Act.'' Rule
8.3A.01(c).
------------------------------------------------------------------------
Current
Option class CQL New CQL
------------------------------------------------------------------------
Goldman Sachs Group Inc (GS)...................... 45 60
Bear Stearns Companies (BSC)...................... 35 50
Crocs Inc. (CROX)................................. 35 50
Petro Bras Sa Petrobas A (PBR).................... 30 50
First Solar, Inc. (FSLR).......................... 30 50
Focus Media Holding Ltd. (FMCN)................... 30 50
China Mobile Limited (CHL)........................ 25 50
Dryships Inc. (DRYS).............................. 25 50
Petrochina Co Ltd ADS (PTR)....................... 25 50
JA Solar Holdings Co. (JASO)...................... 25 50
Trina Solar Ltd. (TSL)............................ 25 50
LDK Solar Co. Ltd (LDK)........................... 25 50
China Digital TV Holding Co., Ltd. (STV).......... 25 50
China Sunergy Co., Ltd. (CSUN).................... 25 50
------------------------------------------------------------------------
The trading volume in these option classes recently has increased
substantially. Increasing the CQL in these classes will enable the
Exchange to enhance the liquidity offered, thereby offering deeper and
more liquid markets. The Exchange represents that it has the systems
capacity to support this increase in the CQLs.
2. Statutory Basis
Accordingly, CBOE believes the proposed rule change is consistent
with the Act and the rules and regulations under the Act applicable to
a national
[[Page 64262]]
securities exchange and, in particular, the requirements of Section
6(b) of the Act.\7\ Specifically, the Exchange believes the proposed
rule change is consistent with the Section 6(b)(5) \8\ requirements
that the rules of an exchange be designed to promote just and equitable
principles of trade, to prevent fraudulent and manipulative acts and,
in general, to protect investors and the public interest.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78(f)(b).
\8\ 15 U.S.C. 78(f)(b)(5).
---------------------------------------------------------------------------
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 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 received nor solicited written comments on the
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change will take effect upon filing
with the Commission pursuant to Section 19(b)(3)(A)(i) of the Act \9\
and Rule 19b-4(f)(1) thereunder,\10\ because it constitutes a stated
policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(i).
\10\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
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.
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-2007-126 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-2007-126. 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-2007-126 and should be
submitted on or before December 6, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority. \11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-22337 Filed 11-14-07; 8:45 am]
BILLING CODE 8011-01-P
