Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, Amending Its Schedule of Fees and Charges Applicable to the Option Strategy Executions Pilot Program, 12786-12788 [E8-4556]
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12786
Federal Register / Vol. 73, No. 47 / Monday, March 10, 2008 / Notices
rule change to become operative prior to
the 30th day after filing.
The Commission has determined that
waiving the 30-day operative delay of
the Exchange’s proposal is consistent
with the protection of investors and the
public interest and will promote
competition because such waiver will
allow the Exchange to list additional
series in Quarterly Options at the same
time as other exchanges.13 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–ISE–2008–19 on the subject
line.
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–ISE–2008–19 and should be
submitted on or before March 31, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–4599 Filed 3–7–08; 8:45 am]
BILLING CODE 8011–01–P
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16:39 Mar 07, 2008
Jkt 214001
Homeowners With Credit Available Elsewhere .........................
Homeowners
Without
Credit
Available Elsewhere ..................
Businesses With Credit Available
Elsewhere .................................
Businesses & Small Agricultural
Cooperatives Without Credit
Available Elsewhere ..................
Other (Including Non-Profit Organizations) With Credit Available
Elsewhere .................................
Businesses and Non-Profit Organizations Without Credit Available Elsewhere .........................
5.875
2.937
8.000
4.000
5.250
4.000
[Disaster Declaration # 11182 and # 11183]
Missouri Disaster # MO–00021
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
U.S. Small Business
Administration.
ACTION: Notice.
Dated: March 3, 2008.
Steven C. Preston,
Administrator.
[FR Doc. E8–4581 Filed 3–7–08; 8:45 am]
SMALL BUSINESS ADMINISTRATION
AGENCY:
SUMMARY: This is a notice of an
Administrative declaration of a disaster
for the State of Missouri dated 03/03/
• Send paper comments in triplicate
2008.
to Nancy M. Morris, Secretary,
Incident: Severe Storms, Tornadoes,
Securities and Exchange Commission,
High Winds, Hail and Flooding.
100 F Street, NE., Washington, DC
Incident Period: 01/07/2008 through
20549–1090.
01/10/2008.
All submissions should refer to File
DATES: Effective Date: 03/03/2008.
Number SR–ISE–2008–19. This file
Physical Loan Application Deadline
number should be included on the
subject line if e-mail is used. To help the Date: 05/02/2008.
Economic Injury (EIDL) Loan
Commission process and review your
Application Deadline Date: 12/03/2008.
comments more efficiently, please use
only one method. The Commission will ADDRESSES: Submit completed loan
post all comments on the Commission’s applications to: U.S. Small Business
Administration, Processing and
Internet Web site (https://www.sec.gov/
Disbursement Center, 14925 Kingsport
rules/sro.shtml). Copies of the
Road, Fort Worth, TX 76155.
submission, all subsequent
amendments, all written statements
FOR FURTHER INFORMATION CONTACT: A.
with respect to the proposed rule
Escobar, Office of Disaster Assistance,
change that are filed with the
U.S. Small Business Administration,
Commission, and all written
409 3rd Street, SW., Suite 6050,
communications relating to the
Washington, DC 20416.
proposed rule change between the
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
13 For purposes only of waiving the 30-day
operative delay, the Commission has considered the Administrator’s disaster declaration,
VerDate Aug<31>2005
Percent
The number assigned to this disaster
for physical damage is 11182 B and for
economic injury is 11183 0.
The State which received an EIDL
Declaration # is lll Missouri.
Paper Comments
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
applications for disaster loans may be
filed at the address listed above or other
locally announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties: Webster.
Contiguous Counties: Missouri:
Christian, Dallas, Douglas, Greene,
Laclede, Wright.
The Interest Rates are:
BILLING CODE 8025–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57421; File No. SR–
NYSEArca–2008–24]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change, as Modified by
Amendment No. 1 Thereto, Amending
Its Schedule of Fees and Charges
Applicable to the Option Strategy
Executions Pilot Program
March 3, 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 February
26, 2008, NYSE Arca, Inc. (‘‘NYSE
Arca’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
1 15
14 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00085
Fmt 4703
Sfmt 4703
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 73, No. 47 / Monday, March 10, 2008 / Notices
change as described in Items I, II, and
III below, which Items have been
substantially prepared by the Exchange.
On February 29, 2008, the Exchange
filed Amendment No. 1 to the
proposal.3 NYSE Arca 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),4 and Rule 19b–4(f)(2)
thereunder,5 which renders the proposal
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change,
as modified by Amendment No. 1, from
interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NYSE Arca proposes to amend its
Schedule of Fees and Charges in order
to extend the pilot program that applies
to Option Strategy Executions (‘‘Pilot
Program’’) until March 1, 2009. The text
of the proposed rule change is available
at the Exchange, the Commission’s
Public Reference Room, and https://
www.nysearca.com.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NYSE Arca included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposal. The text of these statements
may be examined at the places specified
in Item IV below. NYSE Arca 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
pwalker on PROD1PC71 with NOTICES
The purpose of the proposed rule
change is to extend the Pilot Program
that applies to Option Strategy
Executions until March 1, 2009.6 The
transactions included as part of the Pilot
Program include reversals and
3 Amendment No. 1 made clarifying changes to
the original filing.
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(2).
6 The current rule text is substantially similar to
the original filing approved in 2007. See Securities
Exchange Act Release No. 55414 (March 7, 2007),
72 FR 11418 (March 13, 2007) (SR–NYSEArca–
2007–25).
VerDate Aug<31>2005
16:39 Mar 07, 2008
Jkt 214001
conversions,7 dividend spreads,8 box
spreads,9 short stock interest spreads,10
and merger spreads.11 Because the
referenced Options Strategy
Transactions are generally executed by
professionals whose profit margins are
generally narrow, the Pilot Program caps
the transaction fees associated with
such executions at $750 per strategy
execution that are executed on the same
trading day in the same option class. In
addition, there is also a monthly cap of
$25,000 per initiating firm for all
strategy executions. The Exchange
believes that by keeping fees low, the
Exchange is able to attract liquidity by
accommodating these transactions.
Extending the Pilot Program until March
1, 2009 will allow the Exchange to keep
these fees low and thus continue to
attract liquidity.
OTP Holders and OTP Firms who
wish to benefit from the fee cap will be
required to submit to the Exchange
forms with supporting documentation
(e.g., clearing firm transaction data) to
qualify for the cap.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,12 in general, and
furthers the objectives of Section
6(b)(4),13 in particular, in that it is
intended to provide for the equitable
allocation of reasonable dues, fees, and
other charges among its members and
other persons using its facilities. The
Exchange believes that, as proposed, the
cap on transaction fees for Strategy
Executions applies equally to each
member (ETP holder) of the Exchange.
7 Reversals
and conversions are transactions that
employ calls, puts and the underlying stock to lock
in a nearly risk free profit. Reversals are established
by combining a short stock position with a short put
and a long call position that shares the same strike
and expiration. Conversions employ long positions
in the underlying stock that accompany long puts
and short calls sharing the same strike and
expiration.
8 Dividend spreads are trades involving deep in
the money options that exploit pricing differences
arising around the time a stock goes ex-dividend.
9 A Box spread is a strategy that synthesizes long
and short stock positions to create a profit.
Specifically, a long call and short put at one strike
is combined with a short call and long put at a
different strike to create synthetic long and
synthetic short stock positions, respectively.
10 A short stock interest spread is a spread that
uses two deep in the money put options of the same
class followed by the exercise of the resulting long
position in order to establish a short stock interest
arbitrage position.
11 A merger spread is a transaction executed
pursuant to a strategy involving the simultaneous
purchase and sale of options of the same class and
expiration date, but with different strike prices
followed by the exercise of the resulting long option
position.
12 15 U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
12787
The Exchange further believes that by
keeping fees low with the proposed cap,
the Exchange is able to attract liquidity
by accommodating these transactions.
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
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 14 and
subparagraph (f)(2) of Rule 19b–4
thereunder,15 because it establishes or
changes a due, fee or other charge
imposed by the Exchange. At any time
within 60 days of the filing of the
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.16
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–NYSEArca–2008–24 on the
subject line.
14 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
16 For purposes of calculating the 60-day period
within which the Commission may summarily
abrogate the proposed rule change under Section
19(b)(3)(C) of the Act, the Commission considers
the period to commence on February 29, 2008, the
date on which NYSE Arca filed Amendment No. 1.
See 15 U.S.C. 78s(b)(3)(C).
15 17
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12788
Federal Register / Vol. 73, No. 47 / Monday, March 10, 2008 / Notices
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington DC
20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57417; File No. SR–
NYSEArca–2008–26]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
All submissions should refer to File
Rule Change To Make Permanent Two
Number SR–NYSEArca–2008–24. This
Pilot Programs That Increase Position
file number should be included on the
subject line if e-mail is used. To help the and Exercise Limits on Equity Options
Commission process and review your
March 3, 2008.
comments more efficiently, please use
Pursuant to Section 19(b)(1) of the
only one method. The Commission will Securities Exchange Act of 1934
post all comments on the Commission’s (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
Internet Web site (https://www.sec.gov/
notice is hereby given that on February
rules/sro.shtml). Copies of the
29, 2008, NYSE Arca, Inc. (‘‘Exchange’’
submission, all subsequent
or ‘‘NYSE Arca’’) filed with the
amendments, all written statements
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
with respect to the proposed rule
change as described in Items I and II
change that are filed with the
below, which Items have been
Commission, and all written
substantially prepared by the Exchange.
communications relating to the
The Exchange has designated this
proposed rule change between the
Commission and any person, other than proposal as non-controversial under
Section 19(b)(3)(A)(iii) of the Act 3 and
those that may be withheld from the
Rule 19b–4(f)(6) thereunder,4 which
public in accordance with the
renders the proposed rule change
provisions of 5 U.S.C. 552, will be
effective upon filing with the
available for inspection and copying in
Commission. The Commission is
the Commission’s Public Reference
publishing this notice to solicit
Room, 100 F Street, NE., Washington,
comments on the proposed rule change
DC 20549, on official business days
from interested persons.
between the hours of 10 a.m. and 3 p.m.
I. Self-Regulatory Organization’s
Copies of such filing also will be
Statement of the Terms of Substance of
available for inspection and copying at
the principal office of the Exchange. All the Proposed Rule Change
comments received will be posted
The Exchange seeks to make
without change; the Commission does
permanent two pilot programs that
not edit personal identifying
increase position and exercise limits for
information from submissions. You
equity options. The text of the proposed
rule change is available on the
should submit only information that
you wish to make available publicly. All Exchange’s Web site (https://
www.nyse.com), at the Exchange’s
submissions should refer to File No.
principal office, and at the
SR–NYSEArca–2008–24 and should be
Commission’s Public Reference Room.
submitted on or before March 31, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–4556 Filed 3–7–08; 8:45 am]
pwalker on PROD1PC71 with NOTICES
BILLING CODE 8011–01–P
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.
1 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
17 17
CFR 200.30–3(a)(12).
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16:39 Mar 07, 2008
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PO 00000
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Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange seeks to make
permanent two pilot programs that
increase position and exercise limits for
equity options. The Exchange proposes
to amend Rule 6.8, Position Limits, and
Rule 6.9, Exercise Limits, to
permanently establish the increased
limits of the two pilot programs. Rule
6.8 subjects equity options to one of five
different position limits depending on
the trading volume and outstanding
shares of the underlying security. Rule
6.9 establishes exercise limits for equity
options at the same levels as the
applicable position limits.
The first pilot program, the ‘‘Rule 6.8
Pilot Program,’’ commenced on
February 25, 2005, and provides for an
increase to the standard (or ‘‘non-pilot’’)
positions and exercise limits for equity
option contracts and for options on the
PowerShares QQQ Trust (‘‘QQQQ’’).5
The second pilot program, the
‘‘iShares reg; Russell 2000 reg;
Index Fund (‘IWM’) Option Pilot
Program,’’ commenced on January 29,
2007, and increases the position and
exercise limits for IWM options from
250,000 contracts to 500,000 contracts.6
The IWM Option Pilot Program
doubles the position and exercise limits
for IWM options under the Rule 6.8
Pilot Program. See NYSEArca Rule 6.8,
Commentary .06(g). Absent both of these
pilot programs, the standard position
and exercise limit for IWM options is
75,000 option contracts.
The standard position limits were last
increased nine years ago, on December
5 The Rule 6.8 Pilot Program was effective upon
filing on February 25, 2005. See Securities
Exchange Act Release No. 51286 (March 1, 2005),
70 FR 11297 (March 8, 2005) (SR–PCX–2003–55).
The Pilot Program has been extended five times for
six month periods by the Commission, and expires
on March 1, 2008. See Securities Exchange Act
Release Nos. 52263 (August 15, 2005), 70 FR 49003
(August 22, 2005) (SR–PCX–2005–95); 53350
(February 22, 2006), 71 FR 9406 (March 1, 2006)
(SR–PCX–2006–08); 54385 (August 30, 2006), 71 FR
53150 (September 8, 2006) (SR–NYSEArca–2006–
49); 55374 (February 26, 2007), 72 FR 9823 (March
5, 2007) (SR–NYSEArca–2007–19); and 56264
(August 15, 2007), 72 FR 47110 (August 22 2007)
(SR–NYSEArca–2007–84).
6 The proposal that established the IWM Pilot
Program was effective upon filing. See Securities
Exchange Act Release No. 55185 (January 29, 2007),
72 FR 5481 (February 6, 2007) (SR–NYSEArca–
2007–10). The IWM Pilot Program was
subsequently extended and is due to expire on
March 1, 2008. See Securities Exchange Act Release
Nos. 56021 (July 6, 2007), 72 FR 38115 (July 12,
2007) (SR–NYSEArca–2007–58); and 57174
(January 18, 2008), 73 FR 4655 (January 25, 2007)
(SR–NYSEArca–2008–07).
E:\FR\FM\10MRN1.SGM
10MRN1
]]>Agencies
[Federal Register Volume 73, Number 47 (Monday, March 10, 2008)]
[Notices]
[Pages 12786-12788]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-4556]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57421; File No. SR-NYSEArca-2008-24]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change, as Modified by
Amendment No. 1 Thereto, Amending Its Schedule of Fees and Charges
Applicable to the Option Strategy Executions Pilot Program
March 3, 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 February 26, 2008, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule
[[Page 12787]]
change as described in Items I, II, and III below, which Items have
been substantially prepared by the Exchange. On February 29, 2008, the
Exchange filed Amendment No. 1 to the proposal.\3\ NYSE Arca 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),\4\ and
Rule 19b-4(f)(2) thereunder,\5\ which renders the proposal effective
upon filing with the Commission. The Commission is publishing this
notice to solicit comments on the proposed rule change, as modified by
Amendment No. 1, from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1 made clarifying changes to the original
filing.
\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NYSE Arca proposes to amend its Schedule of Fees and Charges in
order to extend the pilot program that applies to Option Strategy
Executions (``Pilot Program'') until March 1, 2009. The text of the
proposed rule change is available at the Exchange, the Commission's
Public Reference Room, and https://www.nysearca.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NYSE Arca included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposal. The text of these
statements may be examined at the places specified in Item IV below.
NYSE Arca 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 purpose of the proposed rule change is to extend the Pilot
Program that applies to Option Strategy Executions until March 1,
2009.\6\ The transactions included as part of the Pilot Program include
reversals and conversions,\7\ dividend spreads,\8\ box spreads,\9\
short stock interest spreads,\10\ and merger spreads.\11\ Because the
referenced Options Strategy Transactions are generally executed by
professionals whose profit margins are generally narrow, the Pilot
Program caps the transaction fees associated with such executions at
$750 per strategy execution that are executed on the same trading day
in the same option class. In addition, there is also a monthly cap of
$25,000 per initiating firm for all strategy executions. The Exchange
believes that by keeping fees low, the Exchange is able to attract
liquidity by accommodating these transactions. Extending the Pilot
Program until March 1, 2009 will allow the Exchange to keep these fees
low and thus continue to attract liquidity.
---------------------------------------------------------------------------
\6\ The current rule text is substantially similar to the
original filing approved in 2007. See Securities Exchange Act
Release No. 55414 (March 7, 2007), 72 FR 11418 (March 13, 2007) (SR-
NYSEArca-2007-25).
\7\ Reversals and conversions are transactions that employ
calls, puts and the underlying stock to lock in a nearly risk free
profit. Reversals are established by combining a short stock
position with a short put and a long call position that shares the
same strike and expiration. Conversions employ long positions in the
underlying stock that accompany long puts and short calls sharing
the same strike and expiration.
\8\ Dividend spreads are trades involving deep in the money
options that exploit pricing differences arising around the time a
stock goes ex-dividend.
\9\ A Box spread is a strategy that synthesizes long and short
stock positions to create a profit. Specifically, a long call and
short put at one strike is combined with a short call and long put
at a different strike to create synthetic long and synthetic short
stock positions, respectively.
\10\ A short stock interest spread is a spread that uses two
deep in the money put options of the same class followed by the
exercise of the resulting long position in order to establish a
short stock interest arbitrage position.
\11\ A merger spread is a transaction executed pursuant to a
strategy involving the simultaneous purchase and sale of options of
the same class and expiration date, but with different strike prices
followed by the exercise of the resulting long option position.
---------------------------------------------------------------------------
OTP Holders and OTP Firms who wish to benefit from the fee cap will
be required to submit to the Exchange forms with supporting
documentation (e.g., clearing firm transaction data) to qualify for the
cap.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\12\ in general, and furthers the
objectives of Section 6(b)(4),\13\ in particular, in that it is
intended to provide for the equitable allocation of reasonable dues,
fees, and other charges among its members and other persons using its
facilities. The Exchange believes that, as proposed, the cap on
transaction fees for Strategy Executions applies equally to each member
(ETP holder) of the Exchange. The Exchange further believes that by
keeping fees low with the proposed cap, the Exchange is able to attract
liquidity by accommodating these transactions.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f(b).
\13\ 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 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
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \14\ and subparagraph (f)(2) of Rule 19b-4
thereunder,\15\ because it establishes or changes a due, fee or other
charge imposed by the Exchange. At any time within 60 days of the
filing of the 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.\16\
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\14\ 15 U.S.C. 78s(b)(3)(A)(ii).
\15\ 17 CFR 240.19b-4(f)(2).
\16\ For purposes of calculating the 60-day period within which
the Commission may summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission considers the period
to commence on February 29, 2008, the date on which NYSE Arca filed
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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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-NYSEArca-2008-24 on the subject line.
[[Page 12788]]
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-NYSEArca-2008-24. 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 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 No. SR-NYSEArca-2008-24 and should be
submitted on or before March 31, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-4556 Filed 3-7-08; 8:45 am]
BILLING CODE 8011-01-P
