Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Approval of Proposed Rule Change Relating to the Continuous Quoting Obligations of DPMs, 2295-2296 [E8-389]

Download as PDF Federal Register / Vol. 73, No. 9 / Monday, January 14, 2008 / Notices respect to both individual members and member organizations and lengthening the surveillance period from a 12-month period to a rolling 24-month period will serve as an effective deterrent to such violative conduct. In addition, the Exchange, as a member of the Intermarket Surveillance Group (‘‘ISG’’) executed and filed on October 29, 2007 with the Commission, a final version of an Agreement pursuant to section 17(d) of the Act (the ‘‘17d–2 Agreement’’).4 As set forth in the 17d–2 Agreement, the members of the ISG have agreed that their respective rules concerning the filing of Expiring Exercise Declarations, also referred to as Contrary Exercise Advices are common rules. As a result, the proposal to amend the MRVP will further result in consistency in sanctions among the ISG members that are signatories to the 17d– 2 Agreement concerning Contrary Exercise Advice violations.5 2. Statutory Basis The Exchange believes that the proposed rule change 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 prevent fraudulent and manipulative acts and practices; to promote just and equitable principles of trade; to protect investors and the public interest in that it is designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities; 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. Additionally, the Exchange believes that the proposed rule change will promote consistency in minor rule violations and respective SRO reporting obligations as set forth pursuant to Rule 19d–1(c)(2) under the Act,8 which governs minor rule violation plans. rmajette on PROD1PC64 with NOTICES B. Self-Regulatory Organization’s Statement on Burden on Competition BSE 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. 4 See letter to Richard Holley, Senior Special Counsel, Division of Trading and Markets, Commission, from Nyieri Nazarian, Assistant General Counsel, American Stock Exchange LLC (‘‘Amex’’), dated October 29, 2007. 5 See Amex Rule 590. 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(5). 8 17 CFR 240.19d–1(c)(2). VerDate Aug<31>2005 15:22 Jan 11, 2008 Jkt 214001 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. 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 the Exchange 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–BSE–2007–54 on the subject line. 2295 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 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–2007–54 and should be submitted on or before February 4, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–388 Filed 1–11–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57109; File No. SR–CBOE– 2007–134] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Approval of Proposed Rule Change Relating to the Continuous Quoting Obligations of DPMs January 7, 2008. On November 9, 2007, the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ or ‘‘Exchange’’) filed with the • Send paper comments in triplicate Securities and Exchange Commission to Nancy M. Morris, Secretary, (‘‘Commission’’), pursuant to section Securities and Exchange Commission, 19(b)(1) of the Securities Exchange Act 100 F Street, NE., Washington, DC of 1934 (‘‘Act’’) 1 and Rule 19b-4 20549–1090. thereunder,2 a proposed rule change to All submissions should refer to File modify the continuous electronic Number SR–BSE–2007–54. This file quoting obligation of DPMs in multiplynumber should be included on the subject line if e-mail is used. To help the listed option classes. The proposed rule change was published for comment in Commission process and review your the Federal Register on November 29, comments more efficiently, please use 3 only one method. The Commission will 2007. The Commission received no comments on the proposed rule change. post all comments on the Commission’s This order approves the proposed rule Internet Web site (http://www.sec.gov/ change. rules/sro.shtml). Copies of the CBOE proposes to reduce the submission, all subsequent continuous electronic quoting obligation amendments, all written statements of DPMs in multiply-listed option with respect to the proposed rule classes, and make them consistent with change that are filed with the Paper Comments 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 PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 9 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. 56824 (November 20, 2007), 72 FR 67615. 1 15 E:\FR\FM\14JAN1.SGM 14JAN1 2296 Federal Register / Vol. 73, No. 9 / Monday, January 14, 2008 / Notices the continuous quoting obligation of eDPMs 4 and Lead Market-Makers in Hybrid option classes.5 Specifically, CBOE proposes to reduce the continuous electronic quoting obligation of DPMs from 100% to at least 90% of the series of each multiply-listed option class allocated to it. 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.6 In particular, the Commission believes that the proposed rule change is consistent with section 6(b)(5) of the Act,7 in that it is designed 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 Commission believes that the Exchange’s proposal to reduce the continuous electronic quoting obligation of DPMs from 100% to at least 90% of the series of each multiply-listed option class allocated to it is appropriate given the reduction in benefits afforded to DPMs. It is therefore ordered, pursuant to section 19(b)(2) of the Act,8 that the proposed rule change (SR–CBOE–2007– 134) be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–389 Filed 1–11–08; 8:45 am] BILLING CODE 8011–01–P 4 See CBOE Rule 8.93. CBOE Rule 8.15A. The Commission notes that the Exchange is not proposing to change the continuous electronic quoting obligation of DPMs in classes listed solely on CBOE. 6 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). 7 15 U.S.C. 78f(b)(5). 8 15 U.S.C. 78s(b)(2). 9 17 CFR 200.30–3(a)(12). rmajette on PROD1PC64 with NOTICES 5 See VerDate Aug<31>2005 15:22 Jan 11, 2008 Jkt 214001 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57105; File No. SR– NASDAQ–2007–100] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing of a Proposed Rule Change To Nasdaq’s Rule 7033 to Modify the Fees Charged for the Mutual Fund Quotation Service and to Correct Certain Errors in the Rule Manual January 4, 2008. 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 December 19, 2007, The NASDAQ Stock Market LLC (‘‘Nasdaq’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II and III below, which Items have been prepared substantially by Nasdaq. 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 Nasdaq proposes to modify the fees charged for the Mutual Fund Quotation Service (‘‘MFQS’’) and to correct certain errors in the rule manual. The text of the proposed rule change is available at http://www.nasdaq.complinet.com, the principal offices of Nasdaq, 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, Nasdaq 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. Nasdaq 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 Nasdaq seeks retroactive approval for the implementation of MFQS fees previously approved when MFQS was operated as a facility of The National 1 15 2 17 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00085 Fmt 4703 Sfmt 4703 Association of Securities Dealers (‘‘NASD’’) but not transferred to the corresponding Nasdaq rule when Nasdaq commenced operations as a national securities exchange on August 1, 2006. Nasdaq is also seeking approval effective on January 1, 2008, for changes to eliminate the fee differential between News Media and Supplemental listings. SR–NASD–2003–52 Subsection (e) of NASD Rule 7090 was approved by the Commission in connection with its approval of SR– NASD–2003–52 effective as of August 7, 2003.3 That subsection, although approved, was inadvertently omitted from the NASD’s online manual. On August 1, 2006, Nasdaq formally separated from NASD. As Nasdaq prepared to begin operating as an independent national securities exchange in 2006, it replicated sections of the NASD rule manual and proposed that they be included in the new Nasdaq rule manual in the same form.4 Due to the inadvertent omission of subsection (e) of Rule 7090 from the NASD manual, Nasdaq failed to include that subsection in its manual (as Rule 7033). Nasdaq proposes to rectify that omission through the current rule proposal, retroactive to its separation date of August 1, 2006. New Uniform Pricing Nasdaq seeks to change the fees charged for the News Media and Supplemental Lists to reflect a conformity of effort by Nasdaq in providing both services. MFQS was created to collect and disseminate data pertaining to the value of open-end and closed-end mutual funds, money market funds, and unit investment trusts. MFQS has two ‘‘lists’’ in which a fund or trust may be included: (1) The News Media List and (2) the Supplemental List. The listing requirements for the News Media List are different than the listing requirements for the Supplemental List, so a fund will only qualify for one list or the other. If a fund or trust is listed on the News Media List, pricing information about the fund or trust is eligible for inclusion in the fund/trust tables of newspapers and is also eligible for dissemination over Nasdaq’s Mutual Fund Dissemination Service (‘‘MFDS’’) data feed, which is distributed to market data vendors. If the fund or trust is listed on the Supplemental List, the pricing information about the fund or trust 3 Securities Exchange Act Release No. 48279 (August 1, 2003), 68 FR 47121 (August 7, 2003) (SR–NASD–2003–52). 4 Securities Exchange Act Release No. 53128 (January 13, 2006), 71 FR 3550 (January 23, 2006). E:\FR\FM\14JAN1.SGM 14JAN1

Agencies

[Federal Register Volume 73, Number 9 (Monday, January 14, 2008)]
[Notices]
[Pages 2295-2296]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-389]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57109; File No. SR-CBOE-2007-134]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Granting Approval of Proposed Rule Change Relating 
to the Continuous Quoting Obligations of DPMs

January 7, 2008.
    On November 9, 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 modify the continuous 
electronic quoting obligation of DPMs in multiply-listed option 
classes. The proposed rule change was published for comment in the 
Federal Register on November 29, 2007.\3\ The Commission received no 
comments on the proposed rule change. This order approves the proposed 
rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 56824 (November 20, 
2007), 72 FR 67615.
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    CBOE proposes to reduce the continuous electronic quoting 
obligation of DPMs in multiply-listed option classes, and make them 
consistent with

[[Page 2296]]

the continuous quoting obligation of e-DPMs \4\ and Lead Market-Makers 
in Hybrid option classes.\5\ Specifically, CBOE proposes to reduce the 
continuous electronic quoting obligation of DPMs from 100% to at least 
90% of the series of each multiply-listed option class allocated to it.
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    \4\ See CBOE Rule 8.93.
    \5\ See CBOE Rule 8.15A. The Commission notes that the Exchange 
is not proposing to change the continuous electronic quoting 
obligation of DPMs in classes listed solely on CBOE.
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    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.\6\ In 
particular, the Commission believes that the proposed rule change is 
consistent with section 6(b)(5) of the Act,\7\ in that it is designed 
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 Commission believes that the Exchange's proposal 
to reduce the continuous electronic quoting obligation of DPMs from 
100% to at least 90% of the series of each multiply-listed option class 
allocated to it is appropriate given the reduction in benefits afforded 
to DPMs.
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    \6\ 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).
    \7\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-CBOE-2007-134) be, and it 
hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-389 Filed 1-11-08; 8:45 am]
BILLING CODE 8011-01-P