Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Order Approving a Proposed Rule Change To Allow the Exchange To Open at 8:30 a.m. (Chicago Time) Without Regard to the Opening on the Primary Market, 3499-3500 [E8-860]
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Federal Register / Vol. 73, No. 13 / Friday, January 18, 2008 / Notices
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
No written comments were solicited
or received by the Exchange with
respect to the proposed rule change.
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 the 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:
rwilkins on PROD1PC63 with NOTICES
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–CHX–2007–24 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–CHX–2007–24. 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
VerDate Aug<31>2005
16:37 Jan 17, 2008
Jkt 214001
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 am and 3 pm.
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–CHX–2007–24 and should
be submitted on or before February 8,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–831 Filed 1–17–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57140; File No. SR–CHX–
2007–23]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Order
Approving a Proposed Rule Change To
Allow the Exchange To Open at 8:30
a.m. (Chicago Time) Without Regard to
the Opening on the Primary Market
January 14, 2008.
I. Introduction
On October 2, 2007, the Chicago Stock
Exchange, Inc. (‘‘CHX’’ 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 allow the Exchange to open at
8:30 a.m. (Chicago time) without regard
to the opening on the primary market.
To accommodate its implementation
schedule for this proposal, the Exchange
extended the time for Commission
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00052
Fmt 4703
Sfmt 4703
3499
action to January 14, 2008. The Federal
Register published the proposed rule
change for comment on November 1,
2007.3 The Commission received no
comments on the proposal.
II. Description
Under existing rules, the Exchange
generally opens for trading in a security
once the primary market has done so.4
If the primary market announces that it
will not open, or if the primary market
has delayed its opening for reasons
other than a regulatory halt, the rules
permit two senior CHX officials to open
the market.5 The Exchange has
proposed to amend its rules to permit
trading to begin at 8:30 a.m. (Chicago
time), except for trading in specified
exchange-traded funds, which would
begin at 7:20 a.m. (Chicago time).6
In conjunction with this change to the
opening time of the Exchange’s market,
the Exchange also proposes two other
changes to its rules. First, the Exchange
would eliminate the opening cross order
type. According to the Exchange, these
cross orders, which are designed to
execute at the primary market opening
price, likely could no longer be
effectively executed on the Exchange,
once the proposed change is made to the
time of the Exchange’s opening.7 In
addition, the Exchange would add a
new rule that prevents immediate or
cancel (‘‘IOC’’) market orders from being
accepted until either (i) the primary
market in a security has opened trading
in that security or (ii) two senior officers
of the Exchange have determined that it
is appropriate for the Exchange to
accept IOC market orders.8 The
3 Securities Exchange Act Release No. 56698
(October 24, 2007), 72 FR 61919.
4 See CHX Rules, Article 20, Rule 1(b).
5 See CHX Rules, Article 20, Interpretation and
Policy .01.
6 See Proposed CHX Rules, Article 20, Rule 1(b).
The Exchange represents that Exchange-traded
funds that begin trading at 7:20 a.m. would be
announced, from time to time, by the Exchange in
a customer service notification or other type of
update. The only exchange-traded fund currently
trading at 7:20 a.m. is the streetTRACKS Gold
Trust. Telephone conversation between Ellen
Neely, President and General Counsel, CHX,
Richard Holley III, Senior Special Counsel, Division
of Market Regulation (‘‘Division’’), Commission,
and Sonia Trocchio, Special Counsel, Division,
Commission (October 18, 2007).
7 If the Exchange’s systems allow its participants
to begin trading before the primary market opens
trading in a particular security, an opening cross
order (which must execute at the primary market
opening price) might violate the protected
quotations of other markets. To avoid this potential
result, the Exchange believes that it is appropriate
to eliminate this order type.
8 See Proposed CHX Rules, Article 1, Rule 2(n)
and Article 20, Rule 4(b)(13). For purposes of this
rule, another exchange would be considered to have
opened for trading in a security when the first trade
Continued
E:\FR\FM\18JAN1.SGM
18JAN1
3500
Federal Register / Vol. 73, No. 13 / Friday, January 18, 2008 / Notices
Exchange states that this change is
designed to prevent market orders from
being executed at prices that are far
away from the primary market opening
price, when that market ultimately
opens.
rwilkins on PROD1PC63 with NOTICES
III. Discussion
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.9 In particular, the
Commission finds that the proposal is
consistent with Section 6(b)(5) of the
Act,10 which requires, among other
things, that a national securities
exchange’s rules be designed to promote
just and equitable principles of trade, to
remove impediments to and to perfect
the mechanism of a free and open
market and a national market system,
and, in general, to protect investors and
the public interest. Previously, the
Exchange opened for trading in a
security once the primary market had
opened in that security. The Exchange
now proposes to permit trading to begin
at 8:30 a.m. Chicago time (9:30 a.m.
Eastern time), without regard to the
whether the primary market opened in
that security. The Commission believes
that this proposed change is consistent
with the Act and does not raise any new
regulatory issues. Further, the proposal
is consistent with the definition of
‘‘regular trading hours’’ under Rule
600(b)(64) of the Act.11 In addition, the
Exchange has proposed a related change
to eliminate the opening cross order
type, which executes at the primary
market opening price. As the Exchange
will no longer link its opening to the
primary market, the Commission
believes that eliminating the cross order
type is consistent with the Act as it
eliminates the potential for those order
types to violate the protected quotations
of other markets. Finally, the Exchange’s
proposal to prevent IOC market orders
from being accepted until the primary
market opens in that security or two
in that security occurs in that market on or after
8:30 a.m. The Exchange has stated that two senior
officers of the Exchange might decide that it is
appropriate to allow IOC market orders to be
accepted if, for example, the primary market has
announced that it will open later than expected, but
other markets are open to provide additional
liquidity. Telephone conversation between Ellen
Neely, President and General Counsel, CHX,
Richard Holley III, Senior Special Counsel,
Division, Commission, and Sonia Trocchio, Special
Counsel, Division, Commission (October 18, 2007).
9 In approving this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
10 15 U.S.C. 78f(b)(5).
11 17 CFR 242.600(b)(64).
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16:37 Jan 17, 2008
Jkt 214001
senior officers of the Exchange
otherwise determine that it is
appropriate to accept such orders is
likewise consistent with the Act and the
protection of investors and the public
interest and should allow IOC market
orders entered on CHX to be executed
at prices that are closely related to the
primary market opening price.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,12 that the
proposed rule change (SR–CHX–2007–
23) is approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–860 Filed 1–17–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57133; File No. SR–FINRA–
2007–038]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Delay Implementation
of Certain Rule Changes Approved in
SR–NASD–2005–146
January 11, 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
21, 2007, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) (f/k/a
National Association of Securities
Dealers, Inc. (‘‘NASD’’)) 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 FINRA.
FINRA filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder,4 which renders it effective
upon filing with the Commission.5 The
Commission is publishing this notice to
12 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
5 FINRA has requested that the Commission
waive the 5 day pre-filing notice and 30-day
operative delay required by Rule 19b–4(f)(6)(iii), 17
CFR 240.19b–4(f)(6)(iii). See discussion infra
Section III.
13 17
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Frm 00053
Fmt 4703
Sfmt 4703
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
FINRA is proposing to delay the final
implementation date of the rule changes
approved in SR–NASD–2005–146,6
which is currently scheduled for
January 14, 2008, until 60 days after
Commission approval of SR–NASD–
2007–041.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA 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 those
statements may be examined at the
places specified in Item IV below.
FINRA has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On February 26, 2007, the
Commission approved SR–NASD–2005–
146, which, among other things,
amended IM–2110–2 7 to expand the
scope to apply to OTC equity securities
and modify the minimum priceimprovement standards for securities
trading in decimals. The amendments
relating to OTC equity securities and the
minimum price-improvement
provisions are scheduled to become
effective on January 14, 2008.8
On June 27, 2007, FINRA filed a
proposed rule change (SR–NASD–2007–
041) to amend the minimum priceimprovement standards in IM–2110–2
that were approved as part of SR–
6 See Securities Exchange Act Release No. 55351
(February 26, 2007), 72 FR 9810 (March 5, 2007)
(order approving SR–NASD–2005–146). See also
NASD Notice to Members 07–19 (April 2007)
(announcing the effective date of the rule changes
in SR–NASD–2005–146).
7 Currently, IM–2110–2 generally prohibits a
member from trading for its own account in an
exchange-listed security at a price that is equal to
or better than an unexecuted customer limit order
in that security, unless the member immediately
thereafter executes the customer limit order at the
price at which it traded for its own account or
better.
8 See Securities Exchange Act Release No. 56822
(November 20, 2007), 72 FR 67326 (November 28,
2007) (notice of filing and immediate effectiveness
of SR–FINRA–2007–023).
E:\FR\FM\18JAN1.SGM
18JAN1
]]>Agencies
[Federal Register Volume 73, Number 13 (Friday, January 18, 2008)]
[Notices]
[Pages 3499-3500]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-860]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57140; File No. SR-CHX-2007-23]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Order Approving a Proposed Rule Change To Allow the Exchange To Open at
8:30 a.m. (Chicago Time) Without Regard to the Opening on the Primary
Market
January 14, 2008.
I. Introduction
On October 2, 2007, the Chicago Stock Exchange, Inc. (``CHX'' 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 allow the Exchange to open at 8:30 a.m.
(Chicago time) without regard to the opening on the primary market. To
accommodate its implementation schedule for this proposal, the Exchange
extended the time for Commission action to January 14, 2008. The
Federal Register published the proposed rule change for comment on
November 1, 2007.\3\ The Commission received no comments on the
proposal.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 56698 (October 24,
2007), 72 FR 61919.
---------------------------------------------------------------------------
II. Description
Under existing rules, the Exchange generally opens for trading in a
security once the primary market has done so.\4\ If the primary market
announces that it will not open, or if the primary market has delayed
its opening for reasons other than a regulatory halt, the rules permit
two senior CHX officials to open the market.\5\ The Exchange has
proposed to amend its rules to permit trading to begin at 8:30 a.m.
(Chicago time), except for trading in specified exchange-traded funds,
which would begin at 7:20 a.m. (Chicago time).\6\
---------------------------------------------------------------------------
\4\ See CHX Rules, Article 20, Rule 1(b).
\5\ See CHX Rules, Article 20, Interpretation and Policy .01.
\6\ See Proposed CHX Rules, Article 20, Rule 1(b). The Exchange
represents that Exchange-traded funds that begin trading at 7:20
a.m. would be announced, from time to time, by the Exchange in a
customer service notification or other type of update. The only
exchange-traded fund currently trading at 7:20 a.m. is the
streetTRACKS [reg] Gold Trust. Telephone conversation
between Ellen Neely, President and General Counsel, CHX, Richard
Holley III, Senior Special Counsel, Division of Market Regulation
(``Division''), Commission, and Sonia Trocchio, Special Counsel,
Division, Commission (October 18, 2007).
---------------------------------------------------------------------------
In conjunction with this change to the opening time of the
Exchange's market, the Exchange also proposes two other changes to its
rules. First, the Exchange would eliminate the opening cross order
type. According to the Exchange, these cross orders, which are designed
to execute at the primary market opening price, likely could no longer
be effectively executed on the Exchange, once the proposed change is
made to the time of the Exchange's opening.\7\ In addition, the
Exchange would add a new rule that prevents immediate or cancel
(``IOC'') market orders from being accepted until either (i) the
primary market in a security has opened trading in that security or
(ii) two senior officers of the Exchange have determined that it is
appropriate for the Exchange to accept IOC market orders.\8\ The
[[Page 3500]]
Exchange states that this change is designed to prevent market orders
from being executed at prices that are far away from the primary market
opening price, when that market ultimately opens.
---------------------------------------------------------------------------
\7\ If the Exchange's systems allow its participants to begin
trading before the primary market opens trading in a particular
security, an opening cross order (which must execute at the primary
market opening price) might violate the protected quotations of
other markets. To avoid this potential result, the Exchange believes
that it is appropriate to eliminate this order type.
\8\ See Proposed CHX Rules, Article 1, Rule 2(n) and Article 20,
Rule 4(b)(13). For purposes of this rule, another exchange would be
considered to have opened for trading in a security when the first
trade in that security occurs in that market on or after 8:30 a.m.
The Exchange has stated that two senior officers of the Exchange
might decide that it is appropriate to allow IOC market orders to be
accepted if, for example, the primary market has announced that it
will open later than expected, but other markets are open to provide
additional liquidity. Telephone conversation between Ellen Neely,
President and General Counsel, CHX, Richard Holley III, Senior
Special Counsel, Division, Commission, and Sonia Trocchio, Special
Counsel, Division, Commission (October 18, 2007).
---------------------------------------------------------------------------
III. Discussion
After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange.\9\
In particular, the Commission finds that the proposal is consistent
with Section 6(b)(5) of the Act,\10\ which requires, among other
things, that a national securities exchange's rules be designed to
promote just and equitable principles of trade, to remove impediments
to and to perfect the mechanism of a free and open market and a
national market system, and, in general, to protect investors and the
public interest. Previously, the Exchange opened for trading in a
security once the primary market had opened in that security. The
Exchange now proposes to permit trading to begin at 8:30 a.m. Chicago
time (9:30 a.m. Eastern time), without regard to the whether the
primary market opened in that security. The Commission believes that
this proposed change is consistent with the Act and does not raise any
new regulatory issues. Further, the proposal is consistent with the
definition of ``regular trading hours'' under Rule 600(b)(64) of the
Act.\11\ In addition, the Exchange has proposed a related change to
eliminate the opening cross order type, which executes at the primary
market opening price. As the Exchange will no longer link its opening
to the primary market, the Commission believes that eliminating the
cross order type is consistent with the Act as it eliminates the
potential for those order types to violate the protected quotations of
other markets. Finally, the Exchange's proposal to prevent IOC market
orders from being accepted until the primary market opens in that
security or two senior officers of the Exchange otherwise determine
that it is appropriate to accept such orders is likewise consistent
with the Act and the protection of investors and the public interest
and should allow IOC market orders entered on CHX to be executed at
prices that are closely related to the primary market opening price.
---------------------------------------------------------------------------
\9\ In approving this proposal, the Commission has considered
the proposed rule's impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
\10\ 15 U.S.C. 78f(b)(5).
\11\ 17 CFR 242.600(b)(64).
---------------------------------------------------------------------------
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\12\ that the proposed rule change (SR-CHX-2007-23) is approved.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-860 Filed 1-17-08; 8:45 am]
BILLING CODE 8011-01-P
