Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Exchange Fees and Charges, 72426-72428 [E7-24724]
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Federal Register / Vol. 72, No. 244 / Thursday, December 20, 2007 / Notices
applicable to the Shares. The
Information Circular also will highlight
the special risks and characteristics of
the Fund and Shares, as well as
applicable Exchange rules. In addition,
the Information Circular will also
reference the fact that there is no
regulated source of last sale information
regarding physical commodities and
discuss the relevant regulatory
jurisdiction over the trading of physical
commodities or the futures contracts on
which the value of the Shares is based.
This approval order is based on the
Exchange’s representations.
The Commission finds good cause,
pursuant to Section 19(b)(2) of the
Act,12 for approving the proposed rule
change, as modified by Amendment
Nos. 1, 2, and 3, prior to the 30th day
after the date of publication of notice in
the Federal Register. Amendment No. 3
made only minor changes to the overall
proposal, which was subject to a 15-day
comment period.13 The Commission
notes that the present proposal, as
amended, is similar to prior proposals
that the Commission has approved,14
and is consistent with current Amex
listing requirements. The Commission
does not believe that the proposed rule
change, as modified by Amendment
Nos. 1, 2, and 3, raises any 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,15 to approve the proposal, as
modified by Amendment Nos. 1, 2, and
3, on an accelerated basis.
III. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning Amendment No.
3, including whether it is consistent
with the Act. Comments may be
submitted by any of the following
methods:
12 15
U.S.C. 78s(b)(2).
mentioned above, the Commission did not
receive any comments regarding the proposed rule
change and Amendment Nos. 1 and 2 following
publication in the Federal Register.
14 See, e.g., Securities Exchange Act Release No.
55632 (April 13, 2007), 72 FR 19987 (April 20,
2007) (SR–Amex–2006–112) (approving the listing
and trading of the United States Natural Gas Fund,
LP); Securities Exchange Act Release No. 53582
(March 31, 2006), 71 FR 17510 (April 6, 2006) (SR–
Amex 2005–127) (approving the listing and trading
of the United States Oil Fund, LP); and Securities
Exchange Act Release No. 53105 (January 11, 2006),
71 FR 3129 (January 19, 2006) (SR–Amex 2005–059)
(approving the listing and trading of the DB
Commodity Index Tracking Fund).
15 15 U.S.C. 78f(b)(5).
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13 As
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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–Amex–2007–53 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–Amex–2007–53. 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 Exchange. 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–Amex–2007–53 and should
be submitted on or before January 4,
2008.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,16 that the
proposed rule change (SR–Amex–2007–
53), as modified by Amendment Nos. 1,
2, and 3 thereto, be, and it hereby is,
approved on an accelerated basis.
16 15
PO 00000
U.S.C. 78s(b)(2).
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Fmt 4703
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–24729 Filed 12–19–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56948; File No. SR–BSE–
2007–52]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to
Exchange Fees and Charges
December 12, 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
30, 2007, the Boston Stock Exchange,
Inc. (‘‘BSE’’ 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 substantially prepared by the
Exchange. 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)(ii) of the Act,3 and Rule
19b–4(f)(2) thereunder,4 which renders
the proposal effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule from
interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The BSE is proposing to amend the
Fee Schedule of the Boston Options
Exchange (‘‘BOX’’). The proposed
amendment will remove the Minimum
Activity Charge (‘‘MAC’’) from the Fee
Schedule of the BOX. The proposed
amendment also will increase the
number of options classes that will
participate in the Liquidity Make or
Take Pricing Structure (‘‘Make or
Take’’). The text of the proposed rule
change is available at BSE’s principal
office, the Commission’s Public
Reference Room, and https://
www.bostonstock.com.
17 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)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
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Federal Register / Vol. 72, No. 244 / Thursday, December 20, 2007 / Notices
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 aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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1. Purpose
BOX currently charges its Market
Making Participants a monthly fixed fee
for each option class in which the
Participant is assigned, known as the
MAC. MAC fee levels are determined
according to certain ‘‘categories’’ of
options classes listed on BOX. The
category for each class is determined by
its total trading volume across all U.S.
options exchanges as determined by
Options Clearing Corporation (‘‘OCC’’)
data. BOX is proposing to eliminate the
MAC so Market Makers will only be
charged fees for contracts which are
traded. Such fees will be determined on
a ‘‘Per Contract Execution’’ basis rather
than by setting minimum fee levels that
Market Making Participants must incur
each month, regardless of the level of
their trading activity.
Additionally, BOX currently applies
an alternative pricing structure for
certain options classes, referred to as
Make or Take. Make or Take is currently
applicable only to options classes
participating in the Penny Pilot,5 as
referenced in Chapter V, section 33 of
the BOX Trading Rules. Make or Take
pricing is driven by liquidity, whereby
5 The ‘‘Original Penny Pilot Program Approval
Order’’ listed the initial thirteen options classes
participating in the Penny Pilot Program. See
Securities Exchange Act Release No. 54789
(November 20, 2006), 71 FR 68654 (November 27,
2006) (SR–BSE–2006–49). On September 27, 2007,
the Commission approved an extension and
expansion of the Penny Pilot Program to include
fifty additional classes, in two phases. See
Securities Exchange Act Release No. 56566
(September 27, 2007), 72 FR 56400 (October 3,
2007) (SR–BSE–2007–40). Phase One began on
September 28, 2007 and will continue for six
months, until March 27, 2008. Phase One added
twenty-two options classes to the Penny Pilot.
Phase Two is scheduled to begin on March 28,
2008, and will continue for one year until March
27, 2009. During the second phase, the number of
options classes trading in pennies will again
increase.
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orders that add liquidity to the BOX
Book receive a transaction credit and
orders which take liquidity from the
BOX Book are charged a transaction fee.
The proposed amendment will increase
the number of classes for which the
Make or Take pricing structure will be
applicable. The proposed classes being
added to Make or Take are the twentyfive (25) most actively-traded, multiplylisted options classes on BOX which are
presently not included in the Penny
Pilot.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of section 6(b) of the Act,6
in general, and section 6(b)(4) of the
Act,7 in particular, which requires that
an exchange provide for the equitable
allocation of reasonable dues, fees, and
other charges among its members and
issuers and other persons using its
facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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
The Exchange has neither solicited
nor received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change is
filed pursuant to section 19(b)(3)(A)(ii)
of the Act 8 and subparagraph (f)(2) of
Rule 19b–4 thereunder,9 because it
establishes or changes a fee applicable
only to a member imposed by the
Exchange. Accordingly, the proposal is
effective upon Commission receipt of
the filing. At any time within 60 days
of the filing of such 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.
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(2).
7 15
PO 00000
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72427
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–BSE–2007–52 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–BSE–2007–52. 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, on official business days between
the hours of 10 a.m. and 3 p.m., located
at 100 F Street, NE., Washington, DC
20549. Copies of such filing also will be
available for inspection and copying at
the principal office of BSE. 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–BSE–2007–52 and should
be submitted on or before January 10,
2008.
E:\FR\FM\20DEN1.SGM
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72428
Federal Register / Vol. 72, No. 244 / Thursday, December 20, 2007 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–24724 Filed 12–19–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56970; File No. SR–CBOE–
2007–99]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Granting Approval
of Proposed Rule Change, as Modified
by Amendment Nos. 1 and 2 Thereto,
Relating to a Delta Hedging Exemption
From Equity Options Position Limits
December 14, 2007.
On August 21, 2007, the Chicago
Board Options Exchange, Incorporated
(‘‘CBOE’’ 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
create a delta hedging exemption from
equity options position limits. On
October 4, 2007, the Exchange filed
Amendment No. 1 to the proposed rule
change. The Commission published the
proposed rule change, as amended by
Amendment No. 1, for comment in the
Federal Register on October 15, 2007.3
On October 24, 2007, the Exchange filed
Amendment No. 2 to the proposed rule
change.4 The Commission received no
comments on the proposed rule change.
This order approves the proposed rule
change as modified by Amendment Nos.
1 and 2.
Under the proposal, the Exchange
would provide an exemption from
equity options 5 position and exercise
limits 6 for positions held by CBOE
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 56631
(October 9, 2007), 72 FR 58341.
4 In Amendment No. 2, CBOE made a technical
revision to the proposal. This is a technical
amendment and is not subject to notice and
comment. In Amendment No. 2, CBOE noted that
the effective date of the proposal will be February
1, 2008, or such later date as may be necessary to
ensure completion of the required technology
changes by the Options Clearing Corporation and
the Securities Industry Automation Corporation.
5 Equity options for purposes of this proposed
rule change includes stock options and options on
exchange-traded funds.
6 CBOE Rule 4.12 establishes exercise limits for
an option at the same level as the option’s position
limit under Rule 4.11. Therefore, no changes are
proposed to Rule 4.12.
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members and certain non-member
affiliates 7 that are ‘‘delta neutral’’ 8
under a ‘‘permitted pricing model.’’ 9
The options contract equivalent of the
net delta 10 of a hedged options position
still would be subject to the position
limits in Rule 4.11 (subject to the
availability of any other position limit
exemptions).11 A member that intends
to employ, or whose non-member
affiliate intends to employ, this
exemption would be required to provide
a written certification to CBOE stating
that the member and/or its affiliate will
use a permitted pricing model.12 In
addition, members that carry an account
that includes an equity option position
for a non-member affiliate would be
required to obtain a written statement
from the non-member affiliate
confirming that the affiliate: (1) Is
relying on this exemption; (2) will use
only a permitted pricing model for
purposes of calculating the net delta of
its option positions for purposes of this
exemption; (3) will promptly notify the
member if it ceases to rely on this
7 The Commission notes that only those nonmember affiliates identified in the definition of
‘‘permitted pricing model’’ would be eligible to rely
on the delta hedging exemption. See infra note 9.
8 The term ‘‘delta neutral’’ would be defined in
proposed Rule 4.11.04(c)(A) as referring to an
equity option position that is hedged, in accordance
with a permitted pricing model, by a position in the
underlying security or one or more instruments
relating to the underlying security, for the purpose
of offsetting the risk that the value of the option
position will change with incremental changes in
the price of the security underlying the option
position.
9 ‘‘Permitted pricing model’’ for purposes of this
exemption would be a pricing model used by: (1)
A member or its non-member affiliate, using a
pricing model maintained and operated by the
Options Clearing Corporation; (2) a member or its
non-member affiliate subject to consolidated
supervision by the Commission pursuant to
Appendix E of Rule 15c3–1 under the Act (i.e., a
consolidated supervised entity or ‘‘CSE’’); (3) a
financial holding company (‘‘FHC’’) or a company
treated as an FHC under the Bank Holding
Company Act of 1956, or its affiliate subject to
consolidated holding company group supervision;
(4) a Commission registered OTC derivatives dealer;
and (5) a national bank under the National Bank
Act. See proposed Rule 4.11.04(c)(C).
10 ‘‘Net delta’’ would be defined to mean, at any
time, the number of shares (either long or short)
required to offset the risk that the value of an equity
option position will change with incremental
changes in the price of the security underlying the
option position. See proposed Rule 4.11.04(c)(B).
‘‘Options contract equivalent of the net delta’’
would be defined to mean the net delta divided by
the number of shares underlying the options
contract. See proposed Rule 4.11.04(c)(B).
11 See proposed Rule 4.11.04(c)(B). The
Commission notes that Rule 4.11.04 provides for
multiple, independent hedge exemptions. Of
course, to the extent that a position is used to hedge
for the purpose of one exemption from position
limit requirements, such as the delta hedge
exemption, such position cannot be used to take
advantage of another exemption from position limit
requirements.
12 See proposed Rule 4.11.04(c)(E)(1) and (E)(3)(i)
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Fmt 4703
Sfmt 4703
exemption; (4) authorizes the member,
upon request, to provide to the
Exchange or the Options Clearing
Corporation such information regarding
positions of the non-member affiliate as
part of the Exchange’s confirmation or
verification of the accuracy of the net
delta calculation under this exemption;
and (5) if the non-member affiliate is
using the Options Clearing Corporation
model, has duly executed and delivered
to the Exchange such documents as the
Exchange may require as a condition to
reliance on this exemption.13
Furthermore, any member would be
required to report, in accordance with
Rule 4.13, all equity options positions
(including those that are delta neutral)
that are reportable under that rule, and
also would be required to report on its
own behalf or on behalf of a designated
aggregation unit 14 the net delta and
options contract equivalent of the net
delta of such positions for each account
that holds an equity option position
subject to the delta hedging exemption
in excess of the levels specified in Rule
4.11.15 Each member relying on the
exemption would be required to retain,
and undertake reasonable efforts to
ensure that its non-member affiliates
relying on the exemption retain, a list of
the options, securities, and other
instruments underlying each option
position net delta calculation reported
to the Exchange; and to produce such
information to the Exchange upon
request.16 In addition, the options
positions of a non-member relying on
the exemption would be required to be
carried by a member with which it is
affiliated.17
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder that
are applicable to a national securities
exchange.18 In particular, the
Commission believes that the proposed
rule change is consistent with section
13 See
proposed Rule 4.11.04(c)(E)(3)(ii).
proposed Rule 4.11.04(c)(D), which
provides, under certain conditions, that the net
delta of an options position held by an entity
entitled to rely on the exemption could be
calculated without regard to positions in or relating
to the security underlying the option position held
by an affiliated entity or another trading unit within
the same entity, provided that, among other things,
no control relationship exists between such
affiliates or trading units and the entity has
designated in writing in advance the affiliates or
trading units that are to be considered separate and
distinct from each other.
15 See proposed Rule 4.11.04(c)(F).
16 See proposed Rule 4.11.04(c)(G).
17 See proposed Rule 4.11.04(c)(E)(2).
18 In approving this rule, 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).
14 See
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]]>Agencies
[Federal Register Volume 72, Number 244 (Thursday, December 20, 2007)]
[Notices]
[Pages 72426-72428]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-24724]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56948; File No. SR-BSE-2007-52]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Exchange Fees and Charges
December 12, 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 30, 2007, the Boston Stock Exchange, Inc. (``BSE'' 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 substantially prepared by the
Exchange. 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)(ii) of the Act,\3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposal effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule 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)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The BSE is proposing to amend the Fee Schedule of the Boston
Options Exchange (``BOX''). The proposed amendment will remove the
Minimum Activity Charge (``MAC'') from the Fee Schedule of the BOX. The
proposed amendment also will increase the number of options classes
that will participate in the Liquidity Make or Take Pricing Structure
(``Make or Take''). The text of the proposed rule change is available
at BSE's principal office, the Commission's Public Reference Room, and
https://www.bostonstock.com.
[[Page 72427]]
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 aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
BOX currently charges its Market Making Participants a monthly
fixed fee for each option class in which the Participant is assigned,
known as the MAC. MAC fee levels are determined according to certain
``categories'' of options classes listed on BOX. The category for each
class is determined by its total trading volume across all U.S. options
exchanges as determined by Options Clearing Corporation (``OCC'') data.
BOX is proposing to eliminate the MAC so Market Makers will only be
charged fees for contracts which are traded. Such fees will be
determined on a ``Per Contract Execution'' basis rather than by setting
minimum fee levels that Market Making Participants must incur each
month, regardless of the level of their trading activity.
Additionally, BOX currently applies an alternative pricing
structure for certain options classes, referred to as Make or Take.
Make or Take is currently applicable only to options classes
participating in the Penny Pilot,\5\ as referenced in Chapter V,
section 33 of the BOX Trading Rules. Make or Take pricing is driven by
liquidity, whereby orders that add liquidity to the BOX Book receive a
transaction credit and orders which take liquidity from the BOX Book
are charged a transaction fee. The proposed amendment will increase the
number of classes for which the Make or Take pricing structure will be
applicable. The proposed classes being added to Make or Take are the
twenty-five (25) most actively-traded, multiply-listed options classes
on BOX which are presently not included in the Penny Pilot.
---------------------------------------------------------------------------
\5\ The ``Original Penny Pilot Program Approval Order'' listed
the initial thirteen options classes participating in the Penny
Pilot Program. See Securities Exchange Act Release No. 54789
(November 20, 2006), 71 FR 68654 (November 27, 2006) (SR-BSE-2006-
49). On September 27, 2007, the Commission approved an extension and
expansion of the Penny Pilot Program to include fifty additional
classes, in two phases. See Securities Exchange Act Release No.
56566 (September 27, 2007), 72 FR 56400 (October 3, 2007) (SR-BSE-
2007-40). Phase One began on September 28, 2007 and will continue
for six months, until March 27, 2008. Phase One added twenty-two
options classes to the Penny Pilot. Phase Two is scheduled to begin
on March 28, 2008, and will continue for one year until March 27,
2009. During the second phase, the number of options classes trading
in pennies will again increase.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of section 6(b) of the Act,\6\ in general, and section
6(b)(4) of the Act,\7\ in particular, which requires that an exchange
provide for the equitable allocation of reasonable dues, fees, and
other charges among its members and issuers and other persons using its
facilities.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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
The Exchange has neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change is filed pursuant to section
19(b)(3)(A)(ii) of the Act \8\ and subparagraph (f)(2) of Rule 19b-4
thereunder,\9\ because it establishes or changes a fee applicable only
to a member imposed by the Exchange. Accordingly, the proposal is
effective upon Commission receipt of the filing. At any time within 60
days of the filing of such 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.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(2).
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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-BSE-2007-52 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-BSE-2007-52. 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, on official business
days between the hours of 10 a.m. and 3 p.m., located at 100 F Street,
NE., Washington, DC 20549. Copies of such filing also will be available
for inspection and copying at the principal office of BSE. 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-BSE-2007-52 and should be
submitted on or before January 10, 2008.
[[Page 72428]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-24724 Filed 12-19-07; 8:45 am]
BILLING CODE 8011-01-P
