Self-Regulatory Organization; Board of Trade of the City of Chicago, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Changes Relating to the Renumbering and Reorganization of Rules Relating to Listing Standards for Security Futures Products, 69262-69263 [E7-23721]

Download as PDF 69262 Federal Register / Vol. 72, No. 235 / Friday, December 7, 2007 / Notices proposal. This order approves the proposal. II. Description of the Proposal Amex is revising Rule 724 to require each member that executes transactions on Amex’s trading floor (‘‘Floor’’) to designate another member firm, allied member, registered representative, or any other person required to be registered as a broker-dealer under the Act that is physically located away from the Floor to act in a DK resolution capacity by means of telephone, e-mail, or fax submission. Each member will retain the option to also designate a Floor member to act on its behalf regarding DK notices. III. Discussion 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 registered securities exchange. In particular, the Commission believes the proposal is consistent with Section 6(b)(5) of the Act,4 which requires, among other things, that the rules of a national securities exchange be designed to foster cooperation and coordination among persons engaged in facilitating transactions in securities. The new requirements that each Amex member must designate an off-Floor representative that is equipped with electronic communication capabilities to act on its behalf to resolve DK notices in its absence will clarify the protocol for and reduce the delays associated with resolving such uncompared transactions, thereby facilitating a more prompt and reliable processing of securities transactions among Amex members. IV. Conclusion pwalker on PROD1PC71 with NOTICES On the basis of the foregoing, the Commission finds that the proposal is consistent with the requirements of the Act and in particular with the requirements of Section 6 of the Act 5 and the rules and regulations thereunder. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,6 that the proposed rule change (File No. SR– Amex–2007–56) be, and hereby is, approved.7 4 15 U.S.C. 78f(b)(5). U.S.C. 78q–1. 6 15 U.S.C. 78s(b)(2). 7 In approving the proposed rule change, the Commission considered the proposal’s impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). 5 15 VerDate Aug<31>2005 16:30 Dec 06, 2007 Jkt 214001 For the Commission by the Division of Trading and Markets pursuant to delegated authority.8 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–23788 Filed 12–6–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISISON [Release No. 34–56873; File No. SR–CBOT– 2007–01] Self-Regulatory Organization; Board of Trade of the City of Chicago, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Changes Relating to the Renumbering and Reorganization of Rules Relating to Listing Standards for Security Futures Products November 30, 2007. Pursuant to section 19(b)(7) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–7 under the Act,2 notice is hereby given that on November 1, 2007, the Board of Trade of the City of Chicago, Inc. (‘‘CBOT’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rules described in Items I, II, and III below, which Items have been substantially prepared by the CBOT. The Commission is publishing this notice to solicit comments on the proposed rules from interested persons. The CBOT also has filed the proposed rules with the Commodity Futures Trading Commission (‘‘CFTC’’), together with a written certification under section 5c(c) of the Commodity Exchange Act (‘‘CEA’’) 3 on October 25, 2007. I. Self-Regulatory Organization’s Description of the Proposed Rules The proposed rule changes delete CBOT Rulebook Chapter 57 (Single Stock Futures) and Chapter 58 (NarrowBased Stock Index Futures) in their entirety and substitute new CBOT Rulebook Chapter 34 (Single Stock Futures) and Chapter 35 (Narrow-Based Stock Index Futures). In addition, the proposed rule changes renumber current CBOT Regulations 431.07 (Customer Margins for Security Futures Positions Held in Futures Accounts) and 431.08 (Acceptable Margin for Security Futures and Treatment of Undermargined Accounts) as Rules 931 and 932. CFR 200.30–3(a)(12). U.S.C. 78s(b)(7). 2 17 CFR 240.19b–7. 3 7 U.S.C. 7a–2(c). 1 15 Frm 00082 Fmt 4703 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rules The CBOT has prepared statements concerning the purpose of, and basis for, the proposed rules, burdens on competition, and comments received from members, participants, and others. The text of these statements may be examined at the places specified in Item IV below. These statements are set forth in sections A, B, and C below. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rules 1. Purpose The CBOT has proposed to substitute new rulebook Chapters 34 and 35 for current Chapters 57 and 58, and to renumber current Regulations 431.07 and 431.08 as Rules 931 and 932 in connection with the adoption of a new rulebook for the CBOT as a result of the merger between the CBOT’s former holding company, CBOT Holdings, Inc., and the former holding company of Chicago Mercantile Exchange Inc., CME Holdings Inc., to form the CME Group.4 The CBOT is adopting a new rulebook, in order to harmonize its rules with those of Chicago Mercantile Exchange Inc. (‘‘CME’’), which utilizes the formatting and numbering system of the CME rulebook. New CBOT rulebook Chapters 34 and 35 mirror current CBOT Chapters 57 and 58 in content, although the organization and numbering of the rules has changed. Several minor non-substantive changes have also been made, as follows: (1) All references to the ‘‘Clearing Services Provider’’ have been changed to the ‘‘Clearing House’’ to reflect the new relationship of the CME Clearing House to the CBOT post-merger; (2) all references to CBOT ‘‘regulations’’ have been changed to ‘‘rules’’ because the CBOT will no longer make any distinctions between Exchange ‘‘rules’’ and ‘‘regulations’’; and (3) current Regulation 5702.01 and its parallel Regulation 5802.01 (Emergencies, Acts of God, Acts of Government) have been deleted as unnecessary since the CBOT is adopting a similar Rule in its new Chapter 7 (Delivery Facilities and 4 The CBOT certified its new rulebook to the CFTC on October 25, 2007, notifying the CFTC that most of its new rules would be implemented on November 29, 2007, including the proposed rule changes that are addressed in this filing. 8 17 PO 00000 The text of the proposed rule change is available on the Exchange’s Web site (https://www.cmegroup.com), at the Exchange’s principal office, and at the Commission’s Public Reference Room. Sfmt 4703 E:\FR\FM\07DEN1.SGM 07DEN1 Federal Register / Vol. 72, No. 235 / Friday, December 7, 2007 / Notices 69263 Delivery Procedures) that applies generally to all CBOT products.5 New Rules 931 and 932 are identical to current Regulations 431.07 and 431.08. Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION Electronic Comments 2. Statutory Basis The Exchange has filed these proposed regulations pursuant to section 19(b)(7) of the Act.6 The CBOT believes that these rules, as renumbered and reorganized, continue to be authorized by, and consistent with, section 6(b)(5) of the Act,7 because they are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and to protect investors and the public interest. • 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–CBOT–2007–01 on the subject line. [Release No. 34–56867; File No. SR– NASDAQ–2007–065] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Conform SRO Rules to Changes to Rule 10a–1 and Regulation SHO B. Self-Regulatory Organization’s Statement on Burden on Competition The CBOT does not believe that the proposed rule changes will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Since the proposed rule changes will permit the CBOT to provide a trading venue for security futures, these rules will serve to enhance and promote competition. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rules Received From Members, Participants, or Others The CBOT neither solicited nor received any written comments on the proposed regulations. III. Date of Effectiveness of the Proposed Rules and Timing for Commission Action Pursuant to section 19(b)(7)(B) of the Act,8 the proposed regulations became effective on October 26, 2007.9 Within 60 days of the date of effectiveness of the proposed regulations, the Commission, after consultation with the CFTC, may summarily abrogate the proposed regulations and require that the proposed regulations be re-filed in accordance with the provisions of section 19(b)(1) of the Act.10 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. 5 See CBOT Rule 701, as certified to the CFTC on October 25, 2007. 6 15 U.S.C. 78s(b)(7). 7 15 U.S.C. 78f(b)(5). 8 15 U.S.C. 78s(b)(7)(B). 9 The CBOT filed the proposed regulations with the CFTC, together with a written certification under Section 5c(c) of the CEA, 7 U.S.C. 7a–2(c), on October 25, 2007. 10 15 U.S.C. 78s(b)(1). VerDate Aug<31>2005 16:30 Dec 06, 2007 Jkt 214001 November 29, 2007. Paper Comments 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 July 11, 2007, The NASDAQ Stock Market LLC (‘‘Nasdaq’’) filed with the Securities and Exchange Commission (‘‘Commission’’) All submissions should refer to File the proposed rule change as described Number SR–CBOT–2007–01. This file in Items I and II below, which Items number should be included on the have been substantially prepared by subject line if e-mail is used. To help the Nasdaq. Nasdaq has designated the Commission process and review your proposed rule change as constituting a comments more efficiently, please use non-controversial rule change under only one method. The Commission will Rule 19b–4(f)(6) under the Act,3 which post all comments on the Commission’s renders the proposal effective upon Internet Web site (https://www.sec.gov/ filing with the Commission. The rules/sro.shtml). Copies of the Commission is publishing this notice to submission, all subsequent solicit comments on the proposed rule amendments, all written statements change from interested persons. with respect to the proposed rule I. Self-Regulatory Organization’s change that are filed with the Statement of the Terms of Substance of Commission, and all written the Proposed Rule Change communications relating to the proposed rule change between the Nasdaq proposes a rule change to Commission and any person, other than eliminate Nasdaq Rule 3350 and IM– those that may be withheld from the 3350 and to make conforming changes public in accordance with the to other Nasdaq rules, as required by provisions of 5 U.S.C. 552, will be recent Commission rulemaking. available for inspection and copying in The text of the proposed rule change the Commission’s Public Reference is below. Proposed new language is Room, 100 F Street, NE., Washington, underlined; proposed deletions are in DC 20549, on official business days brackets. between the hours of 10 a.m. and 3 p.m. * * * * * Copies of such filing will also be 3350. Reserved. [Short Sale Rule] available for inspection and copying at the principal office of the CBOT. All [(a) With respect to trades executed on comments received will be posted Nasdaq, no member shall effect a short without change; the Commission does sale for the account of a customer or for not edit identifying personal its own account in a Nasdaq Global information from submissions. You Market security at or below the current should submit only information that best (inside) bid displayed in the you wish to make available publicly. All National Market System when the submissions should refer to File No. current best (inside) bid is below the SR–CBOT–2007–01 and should be preceding best (inside) bid in the submitted on or before December 28, security. For purposes of this rule, the 2007. term ‘‘customer’’ includes a nonmember broker-dealer. For the Commission by the Division of (b) In determining the price at which Trading and Markets, pursuant to delegated a short sale may be effected after a authority.11 security goes ex-dividend, ex-right, or Florence E. Harmon, ex-any other distribution, all quotation Deputy Secretary. prices prior to the ‘‘ex’’ date may be • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. [FR Doc. E7–23721 Filed 12–6–07; 8:45 am] BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 2 17 11 17 PO 00000 CFR 200.30–3(a)(73). Frm 00083 Fmt 4703 Sfmt 4703 E:\FR\FM\07DEN1.SGM 07DEN1

Agencies

[Federal Register Volume 72, Number 235 (Friday, December 7, 2007)]
[Notices]
[Pages 69262-69263]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-23721]


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SECURITIES AND EXCHANGE COMMISISON

[Release No. 34-56873; File No. SR-CBOT-2007-01]


Self-Regulatory Organization; Board of Trade of the City of 
Chicago, Inc.; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Changes Relating to the Renumbering and Reorganization of Rules 
Relating to Listing Standards for Security Futures Products

November 30, 2007.
    Pursuant to section 19(b)(7) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-7 under the Act,\2\ notice is hereby given 
that on November 1, 2007, the Board of Trade of the City of Chicago, 
Inc. (``CBOT[supreg]'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rules described in 
Items I, II, and III below, which Items have been substantially 
prepared by the CBOT. The Commission is publishing this notice to 
solicit comments on the proposed rules from interested persons. The 
CBOT also has filed the proposed rules with the Commodity Futures 
Trading Commission (``CFTC''), together with a written certification 
under section 5c(c) of the Commodity Exchange Act (``CEA'') \3\ on 
October 25, 2007.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 17 CFR 240.19b-7.
    \3\ 7 U.S.C. 7a-2(c).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Description of the Proposed Rules

    The proposed rule changes delete CBOT Rulebook Chapter 57 (Single 
Stock Futures) and Chapter 58 (Narrow-Based Stock Index Futures) in 
their entirety and substitute new CBOT Rulebook Chapter 34 (Single 
Stock Futures) and Chapter 35 (Narrow-Based Stock Index Futures). In 
addition, the proposed rule changes renumber current CBOT Regulations 
431.07 (Customer Margins for Security Futures Positions Held in Futures 
Accounts) and 431.08 (Acceptable Margin for Security Futures and 
Treatment of Undermargined Accounts) as Rules 931 and 932.
    The text of the proposed rule change is available on the Exchange's 
Web site (https://www.cmegroup.com), at the Exchange'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 Rules

    The CBOT has prepared statements concerning the purpose of, and 
basis for, the proposed rules, burdens on competition, and comments 
received from members, participants, and others. The text of these 
statements may be examined at the places specified in Item IV below. 
These statements are set forth in sections A, B, and C below.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rules

1. Purpose
    The CBOT has proposed to substitute new rulebook Chapters 34 and 35 
for current Chapters 57 and 58, and to renumber current Regulations 
431.07 and 431.08 as Rules 931 and 932 in connection with the adoption 
of a new rulebook for the CBOT as a result of the merger between the 
CBOT's former holding company, CBOT Holdings, Inc., and the former 
holding company of Chicago Mercantile Exchange Inc., CME Holdings Inc., 
to form the CME Group.\4\ The CBOT is adopting a new rulebook, in order 
to harmonize its rules with those of Chicago Mercantile Exchange Inc. 
(``CME''), which utilizes the formatting and numbering system of the 
CME rulebook. New CBOT rulebook Chapters 34 and 35 mirror current CBOT 
Chapters 57 and 58 in content, although the organization and numbering 
of the rules has changed. Several minor non-substantive changes have 
also been made, as follows: (1) All references to the ``Clearing 
Services Provider'' have been changed to the ``Clearing House'' to 
reflect the new relationship of the CME Clearing House to the CBOT 
post-merger; (2) all references to CBOT ``regulations'' have been 
changed to ``rules'' because the CBOT will no longer make any 
distinctions between Exchange ``rules'' and ``regulations''; and (3) 
current Regulation 5702.01 and its parallel Regulation 5802.01 
(Emergencies, Acts of God, Acts of Government) have been deleted as 
unnecessary since the CBOT is adopting a similar Rule in its new 
Chapter 7 (Delivery Facilities and

[[Page 69263]]

Delivery Procedures) that applies generally to all CBOT products.\5\ 
New Rules 931 and 932 are identical to current Regulations 431.07 and 
431.08.
---------------------------------------------------------------------------

    \4\ The CBOT certified its new rulebook to the CFTC on October 
25, 2007, notifying the CFTC that most of its new rules would be 
implemented on November 29, 2007, including the proposed rule 
changes that are addressed in this filing.
    \5\ See CBOT Rule 701, as certified to the CFTC on October 25, 
2007.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange has filed these proposed regulations pursuant to 
section 19(b)(7) of the Act.\6\ The CBOT believes that these rules, as 
renumbered and reorganized, continue to be authorized by, and 
consistent with, section 6(b)(5) of the Act,\7\ because they are 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, and to protect 
investors and the public interest.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(7).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The CBOT does not believe that the proposed rule changes will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. Since the proposed rule 
changes will permit the CBOT to provide a trading venue for security 
futures, these rules will serve to enhance and promote competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rules Received From Members, Participants, or Others

    The CBOT neither solicited nor received any written comments on the 
proposed regulations.

III. Date of Effectiveness of the Proposed Rules and Timing for 
Commission Action

    Pursuant to section 19(b)(7)(B) of the Act,\8\ the proposed 
regulations became effective on October 26, 2007.\9\ Within 60 days of 
the date of effectiveness of the proposed regulations, the Commission, 
after consultation with the CFTC, may summarily abrogate the proposed 
regulations and require that the proposed regulations be re-filed in 
accordance with the provisions of section 19(b)(1) of the Act.\10\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(7)(B).
    \9\ The CBOT filed the proposed regulations with the CFTC, 
together with a written certification under Section 5c(c) of the 
CEA, 7 U.S.C. 7a-2(c), on October 25, 2007.
    \10\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

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-CBOT-2007-01 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-CBOT-2007-01. 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 will also be available for 
inspection and copying at the principal office of the CBOT. All 
comments received will be posted without change; the Commission does 
not edit identifying personal information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File No. SR-CBOT-2007-01 and should be 
submitted on or before December 28, 2007.
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(73).

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-23721 Filed 12-6-07; 8:45 am]
BILLING CODE 8011-01-P

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