Self-Regulatory Organizations; International Securities Exchange, LLC; Order Approving a Proposed Rule Change, as Modified by Amendment Nos. 2 and 3, Relating to Reserve Orders, 13267-13268 [E8-4838]
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Federal Register / Vol. 73, No. 49 / Wednesday, March 12, 2008 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, if
consistent with the protection of
investors and the public interest, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 16 and Rule 19b4(f)(6) thereunder.17
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.
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–CBOE–2008–18 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–CBOE–2008–18. 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
16 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires that a self-regulatory
organization submit to the Commission 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 Commission notes that the
Exchange has satisfied the five-day pre-filing notice
requirement.
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17 17
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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 CBOE. 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–CBOE–2008–18 and should
be submitted on or before April 2, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–4837 Filed 3–11–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57441; File No. SR–ISE–
2007–95]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Order Approving a Proposed
Rule Change, as Modified by
Amendment Nos. 2 and 3, Relating to
Reserve Orders
March 6, 2008.
On October 12, 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
thereunder,2 a proposed rule change to
establish a new order type called
Reserve Orders. The ISE filed
Amendment Nos. 1 and 2 to the
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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13267
proposal on January 17, 2008.3 The ISE
filed Amendment No. 3 to the proposal
on January 25, 2008.4 The proposed rule
change, as modified by Amendment
Nos. 2 and 3, was published for
comment in the Federal Register on
February 1, 2008.5 The Commission
received no comment letters regarding
the proposal, as modified by
Amendment Nos. 2 and 3. This order
approves the proposed rule change, as
modified by Amendment Nos. 2 and 3.
The Exchange proposes to amend ISE
Rule 715, ‘‘Types of Orders,’’ to add a
new order type, Reserve Orders.6 A
Reserve Order is a single-sided limit
order that has both a displayed portion
and a non-displayed or reserve portion,
both of which are available for
execution against incoming marketable
orders.7 Non-marketable Reserve Orders
rest on the book.8 The non-displayed
portion of a Reserve Order will be
available for execution only after all
displayed interest at that price has been
executed.9 Both the displayed and the
non-displayed portions of a Reserve
Order will be ranked initially by the
specified limit price and time of entry,
and both the displayed and nondisplayed portions of a Reserve Order
will trade in accordance with the
priority and allocation provisions in ISE
Rule 713.10
When the displayed portion of a
Reserve Order has been decremented, in
whole or in part, it will be refreshed
from the non-displayed portion of the
resting Reserve Order. Upon any refresh,
the entire displayed portion of the order
will be ranked at the specified limit
price, assigned a new entry time (i.e.,
the time that the newly displayed
portion of the order was refreshed), and
given priority in accordance with ISE
Rule 713.11 Any remaining nondisplayed portion of the order will
receive the same time stamp as the
newly displayed portion of the order.12
The Commission finds that the
proposed rule change, as amended, is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
3 Amendment No. 2 replaces the original filing
and Amendment No. 1 in their entirety.
4 Amendment No. 3 clarifies portions of the
purpose section of the proposed rule change.
5 Securities Exchange Act Release No. 57207
(January 25, 2008), 73 FR 6225.
6 The ISE also proposes to revise paragraphs (c),
(d), and (e) of ISE Rule 713, ‘‘Priority of Quotes and
Orders,’’ to reflect the implementation of Reserve
Orders.
7 See ISE Rule 715(g)(1).
8 See ISE Rule 715(g)(1).
9 See ISE Rule 715(g)(5).
10 See ISE Rule 715(g)(2), (3), and (5).
11 See ISE Rule 715(g)(4).
12 See ISE Rule 715(g)(5).
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13268
Federal Register / Vol. 73, No. 49 / Wednesday, March 12, 2008 / Notices
securities exchange.13 Specifically, the
Commission finds that the proposal is
consistent with Section 6(b)(5) of the
Act,14 which requires, in part, that the
rules of a national securities exchange
be designed to prevent fraudulent and
manipulative acts and practices, 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 Reserve
Orders will provide market participants
with greater flexibility in displaying and
managing their orders. This may
encourage market participants to bring
liquidity to the Exchange that they
might not otherwise have submitted. In
addition, because the ISE’s rules
provide that the non-displayed portion
of a Reserve Order will be available for
execution only after all displayed
interest at that price has been
executed,15 there is an incentive for
market participants to display their
trading interest. The Commission also
notes that the rules of another options
exchange provide for the use of reserve
orders,16 as do the rules of several
exchanges trading equity securities.17
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,18 that the
proposed rule change (SR–ISE–2007–
95), as modified by Amendment Nos. 2
and 3, is approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–4838 Filed 3–11–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57442; File No. SR–NYSE–
2008–13]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Delete
From Section 802.01E of the
Exchange’s Listed Company Manual
Text That is No Longer Relevant
March 6, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 4 and Rule 19b–4 thereunder,5
notice is hereby given that on February
14, 2008, the New York Stock Exchange
LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II and III below, which Items
have been substantially prepared by the
Exchange. The Exchange filed the
proposal pursuant to Section
19(b)(3)(A)(iii) of the Act 6 and Rule
19b–4(f)(6) thereunder.7 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
Section 802.01E of the Exchange’s
Listed Company Manual (‘‘Manual’’) to
delete a provision that ceased by its
terms to be applied on December 31,
2007. The text of the proposed rule
change is available on the Exchange’s
Web site (https://www.nyse.com) and at
the Commission’s Public Reference
Room.
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II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
13 In approving this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
14 15 U.S.C. 78f(b)(5).
15 See ISE Rule 715(g)(5).
16 See NYSE Arca Rules 6.62(c)(3) and 6.76(a). In
addition, the NASDAQ Stock Market LLC
(‘‘Nasdaq’’) has proposed to use Reserve Orders on
the Nasdaq Options Market (‘‘NOM’’). See
Securities Exchange Act Release No. 55667 (April
25, 2007), 72 FR 23869 (May 1, 2007) (File No. SR–
NASDAQ–2007–004) (notice of filing of a proposal
to establish rules governing trading on NOM).
17 See e.g., Amex Rule 131(s)–AEMI, NYSE Rule
204(d), Nasdaq Rule 4757(f)(2), and NYSE Arca
Equities Rule 7.31(h)(e).
18 15 U.S.C. 78s(b)(2).
19 17 CFR 200.30–3(a)(12).
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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
NYSE has prepared summaries, set forth
in Sections A, B, and C below, of the
most significant aspects of such
statements.
4 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
6 15 U.S.C. 78s(b)(3)(A)(iii).
7 17 CFR 240.19b–4(f)(6).
5 17
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Section 802.01E of the Manual
contains a provision that gives the
Exchange discretion to allow certain
companies to remain listed if their
annual reports are delayed beyond 12
months after the required filing date
because such a company may have a
position in the market (relating to both
the nature of its business and its very
large publicly-held market
capitalization) such that its delisting
from the Exchange would be
significantly contrary to the national
interest and the interests of public
investors. This provision expired on
December 31, 2007. As the period to
which the provision relates has ended,
it no longer has any effect and the
Exchange wishes to delete it from the
Manual.
2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under Section 6(b)(5) 8 that an exchange
have rules that are designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to remove
impediments to, and perfect the
mechanism of a free and open market,
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
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule does not (i)
significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
for 30 days from the date on which it
was filed, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
8 15
U.S.C. 78f(b)(5).
E:\FR\FM\12MRN1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 49 (Wednesday, March 12, 2008)]
[Notices]
[Pages 13267-13268]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-4838]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57441; File No. SR-ISE-2007-95]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Order Approving a Proposed Rule Change, as Modified by Amendment
Nos. 2 and 3, Relating to Reserve Orders
March 6, 2008.
On October 12, 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
thereunder,\2\ a proposed rule change to establish a new order type
called Reserve Orders. The ISE filed Amendment Nos. 1 and 2 to the
proposal on January 17, 2008.\3\ The ISE filed Amendment No. 3 to the
proposal on January 25, 2008.\4\ The proposed rule change, as modified
by Amendment Nos. 2 and 3, was published for comment in the Federal
Register on February 1, 2008.\5\ The Commission received no comment
letters regarding the proposal, as modified by Amendment Nos. 2 and 3.
This order approves the proposed rule change, as modified by Amendment
Nos. 2 and 3.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 2 replaces the original filing and Amendment
No. 1 in their entirety.
\4\ Amendment No. 3 clarifies portions of the purpose section of
the proposed rule change.
\5\ Securities Exchange Act Release No. 57207 (January 25,
2008), 73 FR 6225.
---------------------------------------------------------------------------
The Exchange proposes to amend ISE Rule 715, ``Types of Orders,''
to add a new order type, Reserve Orders.\6\ A Reserve Order is a
single-sided limit order that has both a displayed portion and a non-
displayed or reserve portion, both of which are available for execution
against incoming marketable orders.\7\ Non-marketable Reserve Orders
rest on the book.\8\ The non-displayed portion of a Reserve Order will
be available for execution only after all displayed interest at that
price has been executed.\9\ Both the displayed and the non-displayed
portions of a Reserve Order will be ranked initially by the specified
limit price and time of entry, and both the displayed and non-displayed
portions of a Reserve Order will trade in accordance with the priority
and allocation provisions in ISE Rule 713.\10\
---------------------------------------------------------------------------
\6\ The ISE also proposes to revise paragraphs (c), (d), and (e)
of ISE Rule 713, ``Priority of Quotes and Orders,'' to reflect the
implementation of Reserve Orders.
\7\ See ISE Rule 715(g)(1).
\8\ See ISE Rule 715(g)(1).
\9\ See ISE Rule 715(g)(5).
\10\ See ISE Rule 715(g)(2), (3), and (5).
---------------------------------------------------------------------------
When the displayed portion of a Reserve Order has been decremented,
in whole or in part, it will be refreshed from the non-displayed
portion of the resting Reserve Order. Upon any refresh, the entire
displayed portion of the order will be ranked at the specified limit
price, assigned a new entry time (i.e., the time that the newly
displayed portion of the order was refreshed), and given priority in
accordance with ISE Rule 713.\11\ Any remaining non-displayed portion
of the order will receive the same time stamp as the newly displayed
portion of the order.\12\
---------------------------------------------------------------------------
\11\ See ISE Rule 715(g)(4).
\12\ See ISE Rule 715(g)(5).
---------------------------------------------------------------------------
The Commission finds that the proposed rule change, as amended, is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national
[[Page 13268]]
securities exchange.\13\ Specifically, the Commission finds that the
proposal is consistent with Section 6(b)(5) of the Act,\14\ which
requires, in part, that the rules of a national securities exchange be
designed to prevent fraudulent and manipulative acts and practices, 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.
---------------------------------------------------------------------------
\13\ In approving this proposal, the Commission has considered
the proposed rule's impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
\14\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission believes that Reserve Orders will provide market
participants with greater flexibility in displaying and managing their
orders. This may encourage market participants to bring liquidity to
the Exchange that they might not otherwise have submitted. In addition,
because the ISE's rules provide that the non-displayed portion of a
Reserve Order will be available for execution only after all displayed
interest at that price has been executed,\15\ there is an incentive for
market participants to display their trading interest. The Commission
also notes that the rules of another options exchange provide for the
use of reserve orders,\16\ as do the rules of several exchanges trading
equity securities.\17\
---------------------------------------------------------------------------
\15\ See ISE Rule 715(g)(5).
\16\ See NYSE Arca Rules 6.62(c)(3) and 6.76(a). In addition,
the NASDAQ Stock Market LLC (``Nasdaq'') has proposed to use Reserve
Orders on the Nasdaq Options Market (``NOM''). See Securities
Exchange Act Release No. 55667 (April 25, 2007), 72 FR 23869 (May 1,
2007) (File No. SR-NASDAQ-2007-004) (notice of filing of a proposal
to establish rules governing trading on NOM).
\17\ See e.g., Amex Rule 131(s)-AEMI, NYSE Rule 204(d), Nasdaq
Rule 4757(f)(2), and NYSE Arca Equities Rule 7.31(h)(e).
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\18\ that the proposed rule change (SR-ISE-2007-95), as modified by
Amendment Nos. 2 and 3, is approved.
---------------------------------------------------------------------------
\18\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------
\19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-4838 Filed 3-11-08; 8:45 am]
BILLING CODE 8011-01-P
