Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Order Granting Accelerated Approval of a Proposed Rule Change and Amendment No. 1 Thereto To List and Trade Options Already Listed on Another National Securities Exchange, 64694-64696 [E7-22412]
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64694
Federal Register / Vol. 72, No. 221 / Friday, November 16, 2007 / Notices
record, if the Selling Broker-Dealer is
the Lead Placement Agent, and would
be available for inspection by the
Commission and the applicable SRO.
Agent would spend 10 minutes per
closing to maintain a copy of these
documents. Thus, the estimated total
annual reporting and recordkeeping
burden for this requirement is 884
hours.37
7. Record Retention Period
The requested exemption does not
contain a separate record retention
period.33
5. Collection of Information Is
Mandatory
E. Recordkeeping by the Lead Placement
Agent
1. Collection of Information
The requested exemption would
require the Lead Placement Agent to
maintain a copy of each of the
documents that is to be made and/or
delivered at closing, as discussed above
(i.e., the buyer’s agent agreement, the
statutory disqualification
representations, the suitability
representation, and, if applicable, the
customer’s written affirmation), and the
relevant part of the real estate closing
documents that evidences the amount of
the Real Estate Advisory Fee paid to any
RE Participant involved in the TIC
Security transaction.34
2. Proposed Use of the Information
The proposed use of this information
is to facilitate monitoring compliance
with the exemption by compelling the
Lead Placement Agent to maintain
records of all documents that are
required to be delivered at closing.
3. Respondents
The proposed collection of
information would apply to Lead
Placement Agents that act pursuant to
the requested exemption.
4. Reporting and Recordkeeping Burden
The Commission estimates that
approximately 45 Lead Placement
Agents 35 would act pursuant to the
requested exemption. On average, a
Lead Placement Agent would maintain
copies of the relevant documents for
approximately 117.87 TIC Security
transactions 36 a year. The Commission
also estimates that a Lead Placement
33 See
note 15.
requested exemption also would require
the Lead Placement Agent to maintain a copy of any
other records that are required to be maintained in
accordance with the recordkeeping requirements of
the federal securities laws. See note 15.
35 Based on discussions with industry
representatives, the Commission estimates that
there are 45 sponsors of TIC Security transactions
and that each would have a Lead Placement Agent.
36 5,304 TIC Security transactions/45 Lead
Placement Agents = 117.87. The Commission has
rounded its calculation to two decimal places.
Assuming a relatively even distribution of
transactions among potential respondents, some
Lead Placement Agents would maintain copies of
the relevant documents for 117 transactions a year,
and others would do so for 118 transactions a year.
mstockstill on PROD1PC66 with NOTICES
34 The
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This proposed collection of
information would be mandatory for
Lead Placement Agents that act
pursuant to the requested exemption.
6. Confidentiality
decision concerning the collection of
information between 30 and 60 days
after publication of this notice in the
Federal Register. Therefore, comments
to OMB are best assured of having full
effect if OMB receives them within 30
days of this publication. Requests for
materials submitted to OMB by the
Commission with regard to this
collection of information should be in
writing, refer to File No. S7–26–07, and
be submitted to the Securities and
Exchange Commission, Branch of
Records Management, 100 F Street, NE.,
Washington, DC 20549–1110.
The proposed collection of
information does not address the
confidentiality of information prepared
under this rule; however, the collection
of information would be available for
inspection by the Commission and the
applicable SRO.
By the Commission.
Nancy M. Morris,
Secretary.
[FR Doc. E7–22425 Filed 11–15–07; 8:45 am]
7. Record Retention Period
SECURITIES AND EXCHANGE
COMMISSION
As specified, the Lead Placement
Agent would be required to maintain
copies of these documents for a period
of three years in accordance with its
existing obligations under Exchange Act
Rule 17a–4(f).
F. Request for Comment
Pursuant to 44 U.S.C. 3506(c)(2)(A),
the Commission solicits comments to:
(1) Evaluate whether the proposed
collections of information are necessary
for the proper performance of the
functions of the Commission, including
whether the information would have
practical utility;
(2) Evaluate the accuracy of the
Commission’s estimate of the burden of
the proposed collections of information;
(3) Enhance the quality, utility, and
clarity of the information to be
collected; and
(4) Minimize the burden of the
collections of information on those
required to respond, including through
the use of automated collection
techniques or other forms of information
technology.
Persons desiring to submit comments
on the proposed collection of
information requirements should direct
them to the Office of Management and
Budget, Attention: Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Washington, DC 20503, and
should send a copy of their comments
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090, and refer to File No. S7–
26–07. OMB is required to make a
BILLING CODE 8011–01–P
[Release No. 34–56774; File No. SR–CBOE–
2007–114]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Order Granting Accelerated Approval
of a Proposed Rule Change and
Amendment No. 1 Thereto To List and
Trade Options Already Listed on
Another National Securities Exchange
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
September 21, 2007, 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 and II
below, which Items have been
substantially prepared by the Exchange.
On October 26, 2007, CBOE filed
Amendment No. 1 to the proposed rule
change.3 This order provides notice of
the proposal, as amended, and approves
the proposal on an accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to add new
Interpretation .01(c) to CBOE Rule 5.3
(Criteria for Underlying Securities) for
the purpose of permitting the Exchange
to list and trade individual equity
options on the Exchange that are
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Amendment No. 1 supercedes the original filing
and replaces it in its entirety.
2 17
37 5,304 TIC Security transactions × 10 minutes =
53,040/60 = 884.
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Federal Register / Vol. 72, No. 221 / Friday, November 16, 2007 / Notices
otherwise ineligible for listing and
trading if such options are listed and
traded on another national securities
exchange. The text of the proposed rule
change is available on the Exchange’s
Web site (https://www.cboe.org/legal), at
CBOE’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 III 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 the
Statutory Basis for, the Proposed Rule
Change
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1. Purpose
The purpose of the proposed rule
change is to revise the Exchange’s
options listing standards so that as long
as the continued listing criteria set forth
in CBOE Rule 5.4 (Withdrawal of
Approval of Underlying Securities) are
met and the option is listed and traded
on another national securities exchange,
the Exchange would be able to list and
trade the option. CBOE Rule 5.3 sets
forth the requirements that an
underlying equity security must meet
before the Exchange may initially list
options on that security. The Exchange
notes that these requirements are
relatively uniform among the options
exchanges.
Interpretation .01 to CBOE Rule 5.3
relates to the minimum market price at
which an underlying security must
trade for an option to be listed on it, and
applies to the listing of individual
equity options on both ‘‘covered’’ and
‘‘uncovered’’ underlying securities.4 In
the case of an underlying security that
is a ‘‘covered security’’ as defined under
section 18(b)(1)(A) of the Securities Act,
the closing market price of the
underlying security must be at least
4 Section 18(b)(1)(A) of the Securities Act of 1933
(‘‘Securities Act’’) provides, ‘‘[a] security is a
covered security if such security is—A. listed, or
authorized for listing, on the New York Stock
Exchange or the American Stock Exchange, or
listed, or authorized for listing, on the National
Market System of the Nasdaq Stock Market (or any
successor to such entities) * * * .’’ See 15 U.S.C.
77r(b)(1)(A).
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$3.00 for the five previous consecutive
business days preceding the date on
which the Exchange submits a
certification to The Options Clearing
Corporation (‘‘OCC’’) for listing and
trading.5
In connection with an underlying
security deemed to be ‘‘uncovered,’’
Exchange rules require that the market
price per share of the underlying
security be at least $7.50 for the majority
of business days during the three
calendar months preceding the date of
selection, as measured by the lowest
closing price reported in any market in
which the underlying security traded on
each of the subject days.
CBOE Rule 5.4 sets forth the
Exchange’s continued listing criteria,
which the Exchange notes are less
stringent than the initial listing criteria
contained in CBOE Rule 5.3. This is due
largely because, in total, the Exchange’s
listing criteria assure that options will
be listed and traded on securities of
companies that are financially sound
and subject to adequate minimum
standards. The Exchange believes that
the continued listing criteria are
uniform among the options exchanges.
To address the circumstance in which
an options class is currently ineligible
for listing on the Exchange, while at the
same time such option is listed and
trading on another options exchange(s),
the Exchange proposes to amend CBOE
Rule 5.3. Specifically, the Exchange
proposes to add new paragraph (c) to
Interpretation .01 to CBOE Rule 5.3 to
provide that notwithstanding that a
particular underlying security may not
meet the requirements set forth in
paragraphs (a)(1), (a)(2), (b)(1) and (b)(2)
of that Interpretation, the Exchange
nonetheless could list and trade an
option on such underlying security if (1)
the underlying security meets the
criteria for continued listing in CBOE
Rule 5.4, and (2) options on such
underlying security are listed and
traded on at least one other registered
national securities exchange. In
connection with the proposed changes,
the Exchange represents that the
procedures currently employed to
determine whether a particular
underlying security meets the initial
listing criteria will similarly be applied
to the continued listing criteria.
The Exchange believes that this
proposal is narrowly tailored to address
the circumstances where an options
class is currently ineligible for listing on
the Exchange while at the same time,
5 See Interpretation .01(b)(2)(A) of Rule 5.3. For
purposes of this Interpretation, the market price of
an underlying security is measured by the closing
price reported in the primary market in which the
underlying security is traded.
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64695
such option is trading on another
options exchange(s). The Exchange
notes that when an underlying security
meets the Exchange’s continued listing
criteria and at least one other exchange
trades options on the underlying
security, the option is already available
to the investing public. Therefore, the
Exchange notes that the current
proposal will not introduce any
inappropriate additional listed options
classes. Further, the adoption of the
proposal is for competitive purposes
and to promote a free and open market
for the benefit of investors.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with section
6(b) of the Act 6 and the rules and
regulations under the Act applicable to
national securities exchanges.
Specifically, the Exchange believes the
proposed rule change is consistent with
the section 6(b)(5) 7 requirements that
the rules of an exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts, to remove
impediments to and to perfect the
mechanism for a free and open market
and a national market system, 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 solicited nor
received comments on the proposal.
III. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2007–114 on the
subject line.
6 15
7 15
U.S.C. 78s(b).
U.S.C. 78f(b)(5).
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64696
Federal Register / Vol. 72, No. 221 / Friday, November 16, 2007 / Notices
mstockstill on PROD1PC66 with NOTICES
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–2007–114. 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 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–2007–114 and
should be submitted on or before
December 7, 2007.
IV. Commission’s Findings and Order
Granting Accelerated Approval of the
Proposed Rule Change
After careful consideration, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.8 In
particular, the Commission finds that
the proposed rule change is consistent
with section 6(b)(5) of the Act,9 which
requires that the rules of an exchange be
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to and
8 In approving this rule change, the Commission
notes that it has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
9 15 U.S.C. 78f(b)(5).
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21:48 Nov 15, 2007
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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
proposal is narrowly tailored to address
the circumstances where an equity
option class is currently ineligible for
initial listing on the Exchange even
though it meets the Exchange’s
continued listing standards and is
trading on another options exchange.
Allowing CBOE to list and trade options
on such underlying securities should
help promote competition among the
exchanges that list and trade options.
The Commission notes, and the
Exchange represents, that the
procedures that the Exchange currently
employs to determine whether a
particular underlying security meets the
initial equity option listing criteria for
the Exchange will similarly be applied
when determining whether an
underlying security meets the
Exchange’s continued listing criteria.
The Commission finds good cause,
pursuant to section 19(b)(2)(B) of the
Act,10 for approving the proposed rule
change prior to the 30th day after the
publication of the notice of the filing
thereof in the Federal Register. The
Commission notes that the proposed
rule change is substantially identical to
the proposed rule change submitted by
the American Stock Exchange LLC,11
which was previously approved by the
Commission after an opportunity for
notice and comment, and therefore does
not raise any new regulatory issues.
V. Conclusion
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,12 that the
proposed rule change (SR–CBOE–2007–
114), as amended, be, and it hereby is,
approved on an accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Nancy M. Morris,
Secretary.
[FR Doc. E7–22412 Filed 11–15–07; 8:45 am]
BILLING CODE 8011–01–P
10 15
U.S.C. 78s(b)(2)(B).
Securities Exchange Act Release No. 56598
(October 2, 2007), 72 FR 57615 (October 10, 2007)
(SR–Amex–2007–48). See also Securities Exchange
Act Release Nos. 56647 (October 11, 2007), 72 FR
58702 (October 16, 2007) (SR–ISE–2007–80)
(substantially identical proposed rule change
approved on an accelerated basis) and 56717
(October 29, 2007), 72 FR 62508 (November 5, 2007)
(SR–Phlx–2007–73) (substantially identical
proposed rule change approved on an accelerated
basis).
12 Id.
13 17 CFR 200.30–3(a)(12).
11 See
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DEPARTMENT OF STATE
[Public Notice 5990]
Culturally Significant Objects Imported
for Exhibition Determinations:
Assorted Paintings by Gerome and
Dahl
SUMMARY: Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, Delegation of Authority
No. 236 of October 19, 1999, as
amended, and Delegation of Authority
No. 257 of April 15, 2003 [68 FR 19875],
I hereby determine that the objects to be
exhibited include four paintings by
Jean-Leon Gerome and three paintings
by Johan Christian Dahl, imported from
abroad for temporary exhibition within
the United States, are of cultural
significance. The objects are imported
pursuant to loan agreements with the
foreign owners or custodians. I also
determine that the exhibition or display
of the seven exhibit objects at the
Nineteenth-Century European Paintings
and Sculpture Galleries of The
Metropolitan Museum of Art, New York,
NY, from on or about December 3, 2007,
until on or about December 3, 2009, and
at possible additional exhibitions or
venues yet to be determined, is in the
national interest. Public Notice of these
Determinations is ordered to be
published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
the exhibit objects, contact Julie
Simpson, Attorney-Adviser, Office of
the Legal Adviser, U.S. Department of
State (telephone: 202–453–8050). The
address is U.S. Department of State, SA–
44, 301 4th Street, SW., Room 700,
Washington, DC 20547–0001.
Dated: November 8, 2007.
C. Miller Crouch,
Principal Deputy Assistant Secretary for
Educational and Cultural Affairs Department
of State.
[FR Doc. E7–22448 Filed 11–15–07; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Agency Information Collection Activity
Seeking OMB Approval
Federal Aviation
Administration (FAA), DOT.
AGENCY:
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]]>Agencies
[Federal Register Volume 72, Number 221 (Friday, November 16, 2007)]
[Notices]
[Pages 64694-64696]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-22412]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56774; File No. SR-CBOE-2007-114]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Order Granting Accelerated Approval
of a Proposed Rule Change and Amendment No. 1 Thereto To List and Trade
Options Already Listed on Another National Securities Exchange
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 September 21, 2007, 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 and II below, which Items have been substantially prepared by
the Exchange. On October 26, 2007, CBOE filed Amendment No. 1 to the
proposed rule change.\3\ This order provides notice of the proposal, as
amended, and approves the proposal on an accelerated basis.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1 supercedes the original filing and replaces
it in its entirety.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to add new Interpretation .01(c) to CBOE Rule
5.3 (Criteria for Underlying Securities) for the purpose of permitting
the Exchange to list and trade individual equity options on the
Exchange that are
[[Page 64695]]
otherwise ineligible for listing and trading if such options are listed
and traded on another national securities exchange. The text of the
proposed rule change is available on the Exchange's Web site (https://
www.cboe.org/legal), at CBOE'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 III 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to revise the Exchange's
options listing standards so that as long as the continued listing
criteria set forth in CBOE Rule 5.4 (Withdrawal of Approval of
Underlying Securities) are met and the option is listed and traded on
another national securities exchange, the Exchange would be able to
list and trade the option. CBOE Rule 5.3 sets forth the requirements
that an underlying equity security must meet before the Exchange may
initially list options on that security. The Exchange notes that these
requirements are relatively uniform among the options exchanges.
Interpretation .01 to CBOE Rule 5.3 relates to the minimum market
price at which an underlying security must trade for an option to be
listed on it, and applies to the listing of individual equity options
on both ``covered'' and ``uncovered'' underlying securities.\4\ In the
case of an underlying security that is a ``covered security'' as
defined under section 18(b)(1)(A) of the Securities Act, the closing
market price of the underlying security must be at least $3.00 for the
five previous consecutive business days preceding the date on which the
Exchange submits a certification to The Options Clearing Corporation
(``OCC'') for listing and trading.\5\
---------------------------------------------------------------------------
\4\ Section 18(b)(1)(A) of the Securities Act of 1933
(``Securities Act'') provides, ``[a] security is a covered security
if such security is--A. listed, or authorized for listing, on the
New York Stock Exchange or the American Stock Exchange, or listed,
or authorized for listing, on the National Market System of the
Nasdaq Stock Market (or any successor to such entities) * * * .''
See 15 U.S.C. 77r(b)(1)(A).
\5\ See Interpretation .01(b)(2)(A) of Rule 5.3. For purposes of
this Interpretation, the market price of an underlying security is
measured by the closing price reported in the primary market in
which the underlying security is traded.
---------------------------------------------------------------------------
In connection with an underlying security deemed to be
``uncovered,'' Exchange rules require that the market price per share
of the underlying security be at least $7.50 for the majority of
business days during the three calendar months preceding the date of
selection, as measured by the lowest closing price reported in any
market in which the underlying security traded on each of the subject
days.
CBOE Rule 5.4 sets forth the Exchange's continued listing criteria,
which the Exchange notes are less stringent than the initial listing
criteria contained in CBOE Rule 5.3. This is due largely because, in
total, the Exchange's listing criteria assure that options will be
listed and traded on securities of companies that are financially sound
and subject to adequate minimum standards. The Exchange believes that
the continued listing criteria are uniform among the options exchanges.
To address the circumstance in which an options class is currently
ineligible for listing on the Exchange, while at the same time such
option is listed and trading on another options exchange(s), the
Exchange proposes to amend CBOE Rule 5.3. Specifically, the Exchange
proposes to add new paragraph (c) to Interpretation .01 to CBOE Rule
5.3 to provide that notwithstanding that a particular underlying
security may not meet the requirements set forth in paragraphs (a)(1),
(a)(2), (b)(1) and (b)(2) of that Interpretation, the Exchange
nonetheless could list and trade an option on such underlying security
if (1) the underlying security meets the criteria for continued listing
in CBOE Rule 5.4, and (2) options on such underlying security are
listed and traded on at least one other registered national securities
exchange. In connection with the proposed changes, the Exchange
represents that the procedures currently employed to determine whether
a particular underlying security meets the initial listing criteria
will similarly be applied to the continued listing criteria.
The Exchange believes that this proposal is narrowly tailored to
address the circumstances where an options class is currently
ineligible for listing on the Exchange while at the same time, such
option is trading on another options exchange(s). The Exchange notes
that when an underlying security meets the Exchange's continued listing
criteria and at least one other exchange trades options on the
underlying security, the option is already available to the investing
public. Therefore, the Exchange notes that the current proposal will
not introduce any inappropriate additional listed options classes.
Further, the adoption of the proposal is for competitive purposes and
to promote a free and open market for the benefit of investors.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
section 6(b) of the Act \6\ and the rules and regulations under the Act
applicable to national securities exchanges. Specifically, the Exchange
believes the proposed rule change is consistent with the section
6(b)(5) \7\ requirements that the rules of an exchange be designed to
promote just and equitable principles of trade, to prevent fraudulent
and manipulative acts, to remove impediments to and to perfect the
mechanism for a free and open market and a national market system, and,
in general, to protect investors and the public interest.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b).
\7\ 15 U.S.C. 78f(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 solicited nor received comments on the
proposal.
III. 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-2007-114 on the subject line.
[[Page 64696]]
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-2007-114. 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 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-2007-114 and should be
submitted on or before December 7, 2007.
IV. Commission's Findings and Order Granting Accelerated Approval of
the Proposed Rule Change
After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\8\ In particular, the Commission finds that the proposed rule
change is consistent with section 6(b)(5) of the Act,\9\ which requires
that the rules of an exchange be designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to and 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 proposal is
narrowly tailored to address the circumstances where an equity option
class is currently ineligible for initial listing on the Exchange even
though it meets the Exchange's continued listing standards and is
trading on another options exchange. Allowing CBOE to list and trade
options on such underlying securities should help promote competition
among the exchanges that list and trade options. The Commission notes,
and the Exchange represents, that the procedures that the Exchange
currently employs to determine whether a particular underlying security
meets the initial equity option listing criteria for the Exchange will
similarly be applied when determining whether an underlying security
meets the Exchange's continued listing criteria.
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\8\ In approving this rule change, the Commission notes that it
has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
\9\ 15 U.S.C. 78f(b)(5).
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The Commission finds good cause, pursuant to section 19(b)(2)(B) of
the Act,\10\ for approving the proposed rule change prior to the 30th
day after the publication of the notice of the filing thereof in the
Federal Register. The Commission notes that the proposed rule change is
substantially identical to the proposed rule change submitted by the
American Stock Exchange LLC,\11\ which was previously approved by the
Commission after an opportunity for notice and comment, and therefore
does not raise any new regulatory issues.
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\10\ 15 U.S.C. 78s(b)(2)(B).
\11\ See Securities Exchange Act Release No. 56598 (October 2,
2007), 72 FR 57615 (October 10, 2007) (SR-Amex-2007-48). See also
Securities Exchange Act Release Nos. 56647 (October 11, 2007), 72 FR
58702 (October 16, 2007) (SR-ISE-2007-80) (substantially identical
proposed rule change approved on an accelerated basis) and 56717
(October 29, 2007), 72 FR 62508 (November 5, 2007) (SR-Phlx-2007-73)
(substantially identical proposed rule change approved on an
accelerated basis).
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V. Conclusion
It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\12\ that the proposed rule change (SR-CBOE-2007-114), as amended,
be, and it hereby is, approved on an accelerated basis.
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\12\ Id.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-22412 Filed 11-15-07; 8:45 am]
BILLING CODE 8011-01-P
