Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the iShares® Russell 2000® Index Fund (IWM) Option Pilot Program Until March 1, 2008, 4653-4654 [E8-1266]
Download as PDF
<![CDATA[
Federal Register / Vol. 73, No. 17 / Friday, January 25, 2008 / Notices
during the prior year and determine
whether the Fund’s participation in
such transactions continues to be in the
best interests of the Fund and its
shareholders. Such review will include
(but not be limited to) (a) a comparison
of the volume of transactions in each
type of security conducted pursuant to
the exemption to the market presence of
MS & Co. in the market for that type of
security, which market data may be
based on good faith estimates to the
extent that current formal data is not
reasonably available, and (b) a
determination that the Funds are
maintaining appropriate trading
relationships with other sources for
each type of security to ensure that there
are appropriate sources for the
quotations required by condition 3. The
minutes of the meetings of the Board at
which these determinations are made
will reflect in detail the reasons for the
Board’s determinations.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–1304 Filed 1–24–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57173; File No. SR–BSE–
2008–03]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Extending the
iShares Russell 2000 Index Fund
(IWM) Option Pilot Program Until
March 1, 2008
jlentini on PROD1PC65 with NOTICES
January 18, 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 January
16, 2008, the Boston Stock Exchange,
Inc. (‘‘Exchange’’ or ‘‘BSE’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been substantially prepared by the
Exchange. The Exchange has designated
this proposal as non-controversial under
section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder,4 which
renders the proposed rule change
effective upon filing with the
15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
VerDate Aug<31>2005
16:59 Jan 24, 2008
Jkt 214001
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
rules of the Boston Options Exchange
(‘‘BOX’’) to extend an existing pilot
program that increases the position and
exercise limits for options on the
iShares Russell 2000 Index Fund
(‘‘IWM’’) traded on BOX (‘‘IWM Option
Pilot Program’’). The text of the rule
proposal is available on the Exchange’s
Web site (https://www.bostonstock.com),
at the offices of the Exchange, and at 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, 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
The IWM Option Pilot Program
provides for increased position and
exercise limits for IWM options traded
on BOX. Specifically, the IWM Option
Pilot Program increased the position
and exercise limits for IWM options
from 250,000 contracts to 500,000
contracts.5 The purpose of the proposed
rule change is to extend the IWM
Option Pilot Program for an additional
43 day period, through March 1, 2008.6
The Exchange believes that extending
the IWM Option Pilot Program is
warranted because maintaining the
increased position and exercise limits
for IWM options will lead to a more
liquid and more competitive market
environment for IWM options that will
5 See Securities Exchange Act Release No. 55171
(January 25, 2007) 72 FR 4549 (January 31, 2007)
(SR–BSE–2007–03) (establishing the IWM Option
Pilot Program).
6 See Securities Exchange Act Release No. 56051
(July 12, 2007) 72 FR 39469 (July 18, 2007) (SR–
BSE–2007–30) (extending the IWM Option Pilot
Program through January 18, 2008).
PO 00000
Frm 00138
Fmt 4703
Sfmt 4703
4653
benefit customers interested in this
product. The Exchange has received
positive feedback from Participants,
who have expressed a desire that the
IWM Option Pilot Program be renewed.
The Exchange is not proposing any
other changes to the IWM Option Pilot
Program. The Exchange represents that
it has not encountered any significant
problems or difficulties relating to the
IWM Option Pilot Program since its
inception. The Exchange believes that
the above stated reasons justify the IWM
Option Pilot Program and requests that
the Commission extend the IWM Option
Pilot Program for the requested
additional pilot period, through March
1, 2008.7
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act 8 in general and
furthers the objectives of section 6(b)(5)
of the Act 9 because it is designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts and practices, and, in
general, to protect investors and the
public interest.
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 that is 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 Exchange has designated the
proposed rule change as one that: (1)
Does not significantly affect the
protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) does not become operative for 30
days from the date of filing, or such
shorter time as the Commission may
designate if consistent with the
7 Pursuant to Chapter III, Section 7 of BOX Rules,
the exercise limit established for IWM options shall
be equivalent to the position limit prescribed for
IWM options in Supplementary Material .02 to such
section. The increased exercise limits would only
be in effect during the pilot period and the
proposed extension of that pilot period through
March 1, 2008.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
E:\FR\FM\25JAN1.SGM
25JAN1
4654
Federal Register / Vol. 73, No. 17 / Friday, January 25, 2008 / Notices
protection of investors and the public
interest. Therefore, the foregoing rule
change has become effective pursuant to
section 19(b)(3)(A) of the Act 10 and
subparagraph (f)(6) of Rule 19b–4
thereunder.11 The Exchange has asked
the Commission to waive the operative
delay to permit the IWM Option Pilot
Program extension to become effective
prior to the 30th day after filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it will allow the benefits of the
IWM Option Pilot Program to continue
without interruption.12 Therefore, the
Commission designates the proposal
operative upon filing.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
the 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.
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
No. SR–BSE–2008–03 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–2008–03. 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 Commissions
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–BSE–2008–03 and should
be submitted on or before February 15,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Nancy M. Morris,
Secretary.
[FR Doc. E8–1266 Filed 1–24–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57169; File No. SR–ISE–
2007–110]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Order Granting Approval of
Proposed Rule Change to Expand and
Make Permanent the $1 Strike Program
January 18, 2008.
jlentini on PROD1PC65 with NOTICES
10 15
U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide the Commission with written notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has fulfilled this requirement.
12 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Aug<31>2005
16:59 Jan 24, 2008
Jkt 214001
I. Introduction
On November 14, 2007, the
International Securities Exchange, LLC
(‘‘ISE’’ 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
13 17
1 15
PO 00000
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
Frm 00139
Fmt 4703
Sfmt 4703
thereunder,2 a proposal to amend its
rules relating to the $1 Strike Pilot
Program (‘‘Program’’). The proposed
rule change was published for comment
in the Federal Register on December 19,
2007.3 The Commission received no
comments on the proposal. This order
approves the proposed rule change.
II. Description of the Proposal
The purpose of the proposed rule
change is to expand the Program and to
request permanent approval of the
Program. The Program currently allows
ISE to select a total of 5 individual
stocks on which an option series may be
listed at $1 strike price intervals. To be
eligible for selection into the Program,
the underlying stock must close below
$20 in its primary market on the
previous trading day. If selected for the
Program, the Exchange may list strike
prices at $1 intervals from $3 to $20, but
no $1 strike price may be listed that is
greater than $5 from the underlying
stock’s closing price in its primary
market on the previous day. The
Exchange also may list $1 strikes on any
other option class designated by other
securities exchanges that employ a
similar Program under their respective
rules. The Exchange may not list longterm option series (LEAPS) at $1 strike
price intervals for any class selected for
the Program. The Exchange also is
restricted from listing any series that
would result in strike prices being $0.50
apart.
The Exchange proposes to expand the
Program to allow ISE to select a total of
10 individual stocks on which an option
series may be listed at $1 strike price
intervals. Additionally, ISE proposes to
raise the upper limit of the price range
on which it may list $1 strikes from $20
to $50. The existing restrictions on
listing $1 strikes will continue, e.g., no
$1 strike price may be listed that is
greater than $5 from the underlying
stock’s closing price in its primary
market on the previous day, and ISE is
restricted from listing any series that
would result in strike prices being $0.50
apart.
ISE concluded from its analysis of the
Program that the impact on the
automated systems of ISE, OPRA, and
market data vendors has been minimal.4
ISE has represented that it has sufficient
capacity to handle an expansion of the
Program, as proposed.
In its filing with the Commission, ISE
stated its belief that $1 strike price
2 17
CFR 240.19b–4.
Securities Exchange Act Release No. 56956
(December 13, 2007), 72 FR 71986 (‘‘Notice’’).
4 See Notice, id., at 71987 (providing ISE’s
Program analysis on systems capacity).
3 See
E:\FR\FM\25JAN1.SGM
25JAN1
]]>Agencies
[Federal Register Volume 73, Number 17 (Friday, January 25, 2008)]
[Notices]
[Pages 4653-4654]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-1266]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57173; File No. SR-BSE-2008-03]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Extending the iShares[reg] Russell 2000[reg] Index Fund (IWM) Option
Pilot Program Until March 1, 2008
January 18, 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 January 16, 2008, the Boston Stock Exchange, Inc. (``Exchange'' or
``BSE'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been substantially prepared by the Exchange.
The Exchange has designated this proposal as non-controversial under
section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6)
thereunder,\4\ which renders the proposed rule change effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 5 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).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the rules of the Boston Options
Exchange (``BOX'') to extend an existing pilot program that increases
the position and exercise limits for options on the iShares Russell
2000 Index Fund (``IWM'') traded on BOX (``IWM Option Pilot Program'').
The text of the rule proposal is available on the Exchange's Web site
(https://www.bostonstock.com), at the offices of the Exchange, and at
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, 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
The IWM Option Pilot Program provides for increased position and
exercise limits for IWM options traded on BOX. Specifically, the IWM
Option Pilot Program increased the position and exercise limits for IWM
options from 250,000 contracts to 500,000 contracts.\5\ The purpose of
the proposed rule change is to extend the IWM Option Pilot Program for
an additional 43 day period, through March 1, 2008.\6\ The Exchange
believes that extending the IWM Option Pilot Program is warranted
because maintaining the increased position and exercise limits for IWM
options will lead to a more liquid and more competitive market
environment for IWM options that will benefit customers interested in
this product. The Exchange has received positive feedback from
Participants, who have expressed a desire that the IWM Option Pilot
Program be renewed.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 55171 (January 25,
2007) 72 FR 4549 (January 31, 2007) (SR-BSE-2007-03) (establishing
the IWM Option Pilot Program).
\6\ See Securities Exchange Act Release No. 56051 (July 12,
2007) 72 FR 39469 (July 18, 2007) (SR-BSE-2007-30) (extending the
IWM Option Pilot Program through January 18, 2008).
---------------------------------------------------------------------------
The Exchange is not proposing any other changes to the IWM Option
Pilot Program. The Exchange represents that it has not encountered any
significant problems or difficulties relating to the IWM Option Pilot
Program since its inception. The Exchange believes that the above
stated reasons justify the IWM Option Pilot Program and requests that
the Commission extend the IWM Option Pilot Program for the requested
additional pilot period, through March 1, 2008.\7\
---------------------------------------------------------------------------
\7\ Pursuant to Chapter III, Section 7 of BOX Rules, the
exercise limit established for IWM options shall be equivalent to
the position limit prescribed for IWM options in Supplementary
Material .02 to such section. The increased exercise limits would
only be in effect during the pilot period and the proposed extension
of that pilot period through March 1, 2008.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act \8\ in general and furthers the objectives
of section 6(b)(5) of the Act \9\ because it is designed to promote
just and equitable principles of trade, to prevent fraudulent and
manipulative acts and practices, and, in general, to protect investors
and the public interest.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 that is 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 Exchange has designated the proposed rule change as one that:
(1) Does not significantly affect the protection of investors or the
public interest; (2) does not impose any significant burden on
competition; and (3) does not become operative for 30 days from the
date of filing, or such shorter time as the Commission may designate if
consistent with the
[[Page 4654]]
protection of investors and the public interest. Therefore, the
foregoing rule change has become effective pursuant to section
19(b)(3)(A) of the Act \10\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\11\ The Exchange has asked the Commission to waive the
operative delay to permit the IWM Option Pilot Program extension to
become effective prior to the 30th day after filing.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with written notice of its intent to file the proposed rule change,
along with a brief description and text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange has fulfilled this requirement.
---------------------------------------------------------------------------
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it will allow the benefits of the IWM Option Pilot Program to
continue without interruption.\12\ Therefore, the Commission designates
the proposal operative upon filing.
---------------------------------------------------------------------------
\12\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate the 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.
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 No. SR-BSE-2008-03 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-2008-03. 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 Commissions 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-BSE-2008-03 and should be submitted on
or before February 15, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E8-1266 Filed 1-24-08; 8:45 am]
BILLING CODE 8011-01-P
