Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change Relating to the Continuous Quoting Obligations of DPMs, 67615-67616 [E7-23168]
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Federal Register / Vol. 72, No. 229 / Thursday, November 29, 2007 / Notices
This approval order is based on the
Exchange’s representations.
Acceleration
The Commission finds good cause,
pursuant to Section 19(b)(2) of the
Act,15 for approving the proposed rule
change, as amended, prior to the
thirtieth day after the date of
publication of notice in the Federal
Register. The Commission notes that the
present proposal is similar to prior
proposals that the Commission has
approved,16 is consistent with current
Amex listing requirements, and received
no comments following publication in
the Federal Register. The Commission
does not believe that the proposed rule
change, as amended, raises novel
regulatory issues. Consequently, the
Commission believes that it is
appropriate to permit investors to
benefit from these additional investment
choices without delay.
Accordingly, the Commission finds
that there is good cause, consistent with
section 6(b)(5) of the Act,17 to approve
the proposal, as amended, on an
accelerated basis.
V. Conclusion
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,18 that the
proposed rule change (SR–Amex–2007–
98), as amended, be, and is hereby
approved on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Nancy M. Morris,
Secretary.
[FR Doc. E7–23169 Filed 11–28–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56824; File No. CBOE–
2007–134]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of
Proposed Rule Change Relating to the
Continuous Quoting Obligations of
DPMs
November 20, 2007.
rmajette on PROD1PC64 with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
15 15
U.S.C. 78s(b)(2).
supra, note 12.
17 15 U.S.C. 78s(b)(5).
18 15 U.S.C. 78s(b)(2).
19 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
16 See
VerDate Aug<31>2005
14:52 Nov 28, 2007
notice is hereby given that on November
9, 2007, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) a proposed rule change
as described in Items I, II, and III below,
which Items have been prepared
substantially by CBOE. 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
CBOE Rule 8.85 relating to the
continuous quoting obligations of
Designated Primary Market-Makers
(‘‘DPMs’’). The text of the proposed rule
change is available at CBOE, the
Commission’s Public Reference Room,
and https://www.cboe.com/legal.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
CBOE 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. CBOE has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
CBOE proposes to modify the
continuous electronic quoting obligation
of DPMs in multiply-listed option
classes, and make them consistent with
the continuous quoting obligation of eDPMs 3 and Lead Market-Makers
(‘‘LMMs’’) in Hybrid option classes.4
CBOE is not proposing to change the
continuous electronic quoting obligation
of DPMs in classes listed solely on
CBOE.
Currently, DPMs are required to
provide continuous electronic
quotations in 100% of the series of each
option class allocated to the DPM. E–
DPMs and LMMs, on the other hand, are
required to provide continuous
electronic quotes in 90% of the series of
each appointed option class. CBOE
believes that it would be appropriate
and reasonable to reduce the continuous
electronic quoting obligation of DPMs in
multiply-listed option classes from
100% of the series to 90% of the series.
The participation entitlement for DPMs
has been reduced over the past several
years, and presently the participation
entitlement is allocated between DPMs
and e-DPMs under Rule 8.87.
Specifically, if the DPM and one or
more e-DPMs are quoting at the best
bid/offer on CBOE, one-half of the
entitlement is allocated to the DPM, and
the other half is divided equally among
the e-DPMs quoting at the best bid/offer
on CBOE. In addition, in 2005 CBOE
implemented a Preferred Market-Maker
Program which provides that in
instances where a Preferred MarketMaker receives a participation
entitlement, then the DPM and e-DPM
participation entitlement shall not apply
to any order.5
CBOE believes that reducing the
continuous electronic quoting
obligations of DPMs in multiply-listed
option classes may also mitigate
quotations. In the event that an order is
received in a series of a multiply-listed
option class in which CBOE is not
disseminating a quotation, CBOE would
process the order in accordance with the
provisions of Rule 6.14—the Hybrid
Agency Liaison. As a result, CBOE does
not believe there would be any negative
effect on the handling of orders.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,6 in general, and furthers the
objectives of Section 6(b)(5) of the Act,7
in particular, in that it is designed to
promote just and equitable principles of
trade, serve to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and 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 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
No written comments were either
solicited or received with respect to the
proposed rule change.
5 See
CBOE Rule 8.13.
U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
3 See
CBOE Rule 8.93.
4 See CBOE Rule 8.15A.
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Federal Register / Vol. 72, No. 229 / Thursday, November 29, 2007 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which CBOE consents, the
Commission will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2007–134 on the
subject line.
rmajette on PROD1PC64 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–2007–134. 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.
VerDate Aug<31>2005
14:52 Nov 28, 2007
Jkt 211001
Copies of the 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–
2007–134 and should be submitted on
or before December 20, 2007.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Nancy M. Morris,
Secretary.
[FR Doc. E7–23168 Filed 11–28–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56833; File No. SR–CHX–
2007–26]
Self-Regulatory Organizations; The
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change and
Amendment Number 1 Thereto
Relating to Participant Fees and
Credits
November 21, 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
31, 2007, The Chicago Stock Exchange,
Inc. (‘‘CHX’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been substantially prepared by the
Exchange. On November 19, 2007, CHX
filed Amendment No. 1 to the proposed
rule change. The Exchange has
designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by the Exchange
under Section 19(b)(3)(A) of the Act 3
and Rule 19b–4(f)(2) 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,
as amended, 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
Schedule of Participant Fees and Credits
(the ‘‘Fee Schedule’’) to: (a) Provide that
port fees would not be charged to
participant firms that provide a certain
amount of liquidity to the ‘‘Matching
System’’ 5; (b) modify the ‘‘provide’’
credits associated with trades in Tape B
securities to create an incentive to send
orders in these and other securities to
the Matching System; (c) modify the
fees for the receipt of orders through the
CHX Connect network; and (d) add new
fees in connection with the processing
of away-market trades that are sent to
clearing through the Exchange’s
facilities. The text of the proposed rule
change is available at the Exchange’s
Web site, https://www.chx.com/rules/
proposed_rules.htm, 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 on the proposed
rule change. 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
Through this filing, the Exchange
would amend its Fee Schedule in
several ways. First, the Exchange would
amend the Fee Schedule to provide that
port fees would not be charged to
participant firms that provide a certain
amount of liquidity to the Matching
System.6 Specifically, port fees would
not be charged to a participant firm for
any month in which that firm executes
an average daily volume of 5 million or
more provide shares in the Matching
5 See
generally, CHX Rules, Article 20.
the Exchange’s Fee Schedule, port
charges of $400 per month currently are assessed
for each participant give-up that has access through
a participant connection to the Matching System.
Port charges are not assessed for access to the
Matching System through the Exchange’s
Brokerplex system.
6 Under
8 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).
4 17 CFR 240.19b–4(f)(2).
1 15
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]]>Agencies
[Federal Register Volume 72, Number 229 (Thursday, November 29, 2007)]
[Notices]
[Pages 67615-67616]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-23168]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56824; File No. CBOE-2007-134]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of Proposed Rule Change Relating to the
Continuous Quoting Obligations of DPMs
November 20, 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 9, 2007, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') a proposed rule change as described in
Items I, II, and III below, which Items have been prepared
substantially by CBOE. 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 Exchange proposes to amend CBOE Rule 8.85 relating to the
continuous quoting obligations of Designated Primary Market-Makers
(``DPMs''). The text of the proposed rule change is available at CBOE,
the Commission's Public Reference Room, and https://www.cboe.com/legal.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, CBOE 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. CBOE has prepared summaries, set forth in Sections A, B,
and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
CBOE proposes to modify the continuous electronic quoting
obligation of DPMs in multiply-listed option classes, and make them
consistent with the continuous quoting obligation of e-DPMs \3\ and
Lead Market-Makers (``LMMs'') in Hybrid option classes.\4\ CBOE is not
proposing to change the continuous electronic quoting obligation of
DPMs in classes listed solely on CBOE.
---------------------------------------------------------------------------
\3\ See CBOE Rule 8.93.
\4\ See CBOE Rule 8.15A.
---------------------------------------------------------------------------
Currently, DPMs are required to provide continuous electronic
quotations in 100% of the series of each option class allocated to the
DPM. E-DPMs and LMMs, on the other hand, are required to provide
continuous electronic quotes in 90% of the series of each appointed
option class. CBOE believes that it would be appropriate and reasonable
to reduce the continuous electronic quoting obligation of DPMs in
multiply-listed option classes from 100% of the series to 90% of the
series. The participation entitlement for DPMs has been reduced over
the past several years, and presently the participation entitlement is
allocated between DPMs and e-DPMs under Rule 8.87. Specifically, if the
DPM and one or more e-DPMs are quoting at the best bid/offer on CBOE,
one-half of the entitlement is allocated to the DPM, and the other half
is divided equally among the e-DPMs quoting at the best bid/offer on
CBOE. In addition, in 2005 CBOE implemented a Preferred Market-Maker
Program which provides that in instances where a Preferred Market-Maker
receives a participation entitlement, then the DPM and e-DPM
participation entitlement shall not apply to any order.\5\
---------------------------------------------------------------------------
\5\ See CBOE Rule 8.13.
---------------------------------------------------------------------------
CBOE believes that reducing the continuous electronic quoting
obligations of DPMs in multiply-listed option classes may also mitigate
quotations. In the event that an order is received in a series of a
multiply-listed option class in which CBOE is not disseminating a
quotation, CBOE would process the order in accordance with the
provisions of Rule 6.14--the Hybrid Agency Liaison. As a result, CBOE
does not believe there would be any negative effect on the handling of
orders.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\6\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\7\ in particular, in that it is designed to promote
just and equitable principles of trade, serve to remove impediments to
and perfect the mechanism of a free and open market and a national
market system, and protect investors and the public interest.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(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 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
No written comments were either solicited or received with respect
to the proposed rule change.
[[Page 67616]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which CBOE consents, the Commission will:
(A) By order approve such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-CBOE-2007-134 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-2007-134. 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 the 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-2007-134 and should be
submitted on or before December 20, 2007.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E7-23168 Filed 11-28-07; 8:45 am]
BILLING CODE 8011-01-P
