Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Order Approving Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Make Administrative Changes to its Routing Rules, 13940-13941 [E8-5096]
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Federal Register / Vol. 73, No. 51 / Friday, March 14, 2008 / Notices
applicable to Market Makers. As
previously stated, Make or Take is
applicable to all three account types.5
This proposed rule change will
specifically include this reference to
Make or Take within the Public
Customer and Broker Dealer portions of
the BOX Fee Schedule. Again, this
proposal will not modify the fees that
are currently charged for the trading of
options contracts on BOX, nor will it
change to whom the fees are charged.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,6
in general, and Section 6(b)(5) of the
Act,7 in particular, in that it clarifies
existing rule text and it is designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts, 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.
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.
rwilkins on PROD1PC63 with NOTICES
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)(i) of the Act 8 and
subparagraph (f)(1) of Rule 19b–4
thereunder.9 The proposed rule change
is a stated policy, practice or
interpretation with respect to the
meaning, administration or enforcement
of an existing rule of the Exchange.
At any time within 60 days of the
filing of such proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
5 See Securities Exchange Act Release No. 56371
(September 7, 2007), 72 FR 52401 (September 13,
2007).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
8 15 U.S.C. 78s(b)(3)(A)(i).
9 17 CFR 240.19b–4(f)(1).
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19:17 Mar 13, 2008
Jkt 214001
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
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–BSE–2008–13 on the
subject line.
Paper Comments
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–5098 Filed 3–13–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57454; File No. SR–CHX–
2007–18]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Order
Approving Proposed Rule Change, as
Modified by Amendment No. 1 Thereto,
To Make Administrative Changes to its
Routing Rules
March 7, 2008
I. Introduction
On July 6, 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
All submissions should refer to File
change to make administrative changes
Number SR–BSE–2008–13. This file
to its routing rules. On January 22, 2008,
number should be included on the
subject line if e-mail is used. To help the the Exchange filed Amendment No. 1 to
the proposed rule change. The proposed
Commission process and review your
rule change, as modified by Amendment
comments more efficiently, please use
only one method. The Commission will No. 1, was published for comment in
post all comments on the Commission’s the Federal Register on February 1,
2008.3 The Commission received no
Internet Web site (https://www.sec.gov/
comments on the proposal. This order
rules/sro.shtml). Copies of the
approves the proposed rule change, as
submission, all subsequent
amended.
amendments, all written statements
with respect to the proposed rule
II. Description of the Proposal
change that are filed with the
The Exchange’s rules provide that the
Commission, and all written
Exchange’s Matching System will not
communications relating to the
execute an order if its execution would
proposed rule change between the
Commission and any person, other than be improper under Rule 611 of
Regulation NMS under the Act
those that may be withheld from the
(‘‘improper trade-through’’).4 In the case
public in accordance with the
of an execution that would cause an
provisions of 5 U.S.C. 552, will be
improper trade-through, the Exchange’s
available for inspection and copying in
rules provide that, if a participant
the Commission’s Public Reference
submitted a cross with satisfy or an
Room, 100 F Street, NE., Washington,
outbound ISO, the Matching System
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. will execute the order and
simultaneously route orders necessary
Copies of such filing also will be
to satisfy the bids or offers of other
available for inspection and copying at
markets.5 For all other orders, the
the principal office of BSE. All
comments received will be posted
10 17 CFR 200.30–3(a)(12).
without change; the Commission does
1 15 U.S.C. 78s(b)(1).
not edit personal identifying
2 17 CFR 240.19b-4.
information from submissions. You
3 See Securities Exchange Act Release No. 57203
(January 25, 2008), 73 FR 6232.
should submit only information that
4 See CHX Article 20, Rule 5; and Rule 611 of
you wish to make available publicly. All
Regulation NMS, 17 CFR 242.611.
submissions should refer to File
5 The Exchange’s systems determine when, how,
Number SR–BSE–2008–13 and should
and where these orders should be routed. See CHX
be submitted on or before April 4, 2008. Article 20, Rule 5, Interpretation and Policy .03(a).
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
PO 00000
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Federal Register / Vol. 73, No. 51 / Friday, March 14, 2008 / Notices
Exchange will either cancel the order
back to the participant that submitted it
or will route the order to the destination
of the participant’s choice, all at the
direction of the participant.6
The Exchange’s current routing rules
also provide that the Exchange will
provide routing services pursuant to the
terms of three separate agreements, to
the extent that they are applicable to a
specific routing decision: (1) An
agreement between the Exchange and
each participant on whose behalf orders
will be routed; (2) an agreement
between each participant and a
specified third-party broker-dealer that
will use its routing connectivity to other
markets and serve as a ‘‘give-up’’ in
those markets; and (3) an agreement
between the Exchange and the specified
third-party broker-dealer pursuant to
which the third-party broker-dealer
agrees to provide routing connectivity to
other markets and serve as a ‘‘give-up’’
for the Exchange’s participants in other
markets.7
The Exchange proposes to make three
changes to its routing rules. First, the
Exchange proposes to provide that, if
requested by a participant and its
routing destination, the Exchange will
flip any executions into the participant’s
account and report that second leg of
the away-market transaction to clearing.
The Exchange states that this service
would provide the order-sending
participant the option of consolidating
its clearing reports in specific locations.
Second, the Exchange proposes to
amend the requirement relating to the
agreements that are necessary for the
Exchange to provide routing services.
For cross with satisfy and outbound
ISOs, the Exchange will continue to
provide routing services pursuant to the
terms of three separate agreements to
the extent that they are applicable to a
specific routing decision.8 For other
orders, the Exchange proposes to allow
the CHX and/or a third-party brokerdealer providing connectivity to other
markets to determine which agreements
are needed to implement the routing
functionality. The Exchange states that
it believes that most routing
destinations will require that ordersenders sign additional agreements for
any services that the destinations might
provide, but the Exchange would like to
provide flexibility for destinations to
make choices appropriate to their
business models.
Third, the Exchange proposes to
provide that, with respect to a cross
with satisfy or an outbound ISO, the
agreement between a participant and the
third-party broker-dealer routing its
order by access agreement with the
Exchange need not provide that the
third-party broker-dealer will serve as a
give-up if this is not necessary—i.e.,
where the participant has a good giveup in the market to which the order is
routed and prefers that its own give-up
be used.9
III. Discussion
After careful review, 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 securities exchange and, in
particular, with Section 6(b)(5) of the
Act,10 which requires, among other
things, 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.11
The Commission believes that the
proposed changes to the Exchange’s
routing rules should provide the
Exchange, its participants, and thirdparty routers with more flexibility in
establishing routing arrangements.
Accordingly, the Commission finds that
the proposed rule change, as amended,
is consistent with the Act.
IV. Conclusion
rwilkins on PROD1PC63 with NOTICES
6 The
participant is responsible for ensuring that
it has a relationship with its chosen destination to
permit the requested access. The Exchange is not
involved in the execution of the order and states
that any execution of the order is the responsibility
of the destination to which the order was sent. The
Exchange, however, reports any execution or
cancellation of the order by the other destination to
the participant that submitted the order and notifies
the other venue of any cancellations or changes to
the order submitted by the order-sending
participant. See Article 20, Rule 5, Interpretation
and Policy .03(b).
7 See Article 20, Rule 5, Proposed Interpretation
and Policy .03(c)(1).
8 See Article 20, Rule 5, Proposed Interpretation
and Policy .03(c).
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Jkt 214001
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,12 that the
proposed rule change (SR–CHX–2007–
18), as modified by Amendment No. 1,
be, and hereby is, approved.
9 See Article 20, Rule 5, Proposed Interpretation
and Policy .03(c).
10 15 U.S.C. 78f(b)(5).
11 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
12 15 U.S.C. 78s(b)(2).
PO 00000
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Fmt 4703
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13941
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–5096 Filed 3–13–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57455; File No. SR–NYSE–
2008–03]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Order
Approving a Proposed Rule Change,
as Modified by Amendment No. 1
Thereto, To Rescind NYSE Rule 97
(Limitation on Member’s Trading
Because of Block Positioning)
March 7, 2008
I. Introduction
On January 11, 2008, the New York
Stock Exchange LLC (‘‘NYSE’’ 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
rescind NYSE Rule 97 (Limitation on
Member’s Trading Because of Block
Positioning). The proposed rule change
was published for comment in the
Federal Register on February 6, 2008.3
On February 20, 2008, NYSE filed
Amendment No. 1 to the proposed rule
change.4 The Commission received one
comment on the proposed rule change.5
This order approves the proposed rule
change, as modified.
II. Description of the Proposed Rule
Change
NYSE Rule 97 governs block
facilitation transactions by NYSE
member organizations on behalf of
customers. The rule states that if, as a
result of facilitating one or more
customer sell orders in a stock during
the trading day, a member organization
ends up holding a long position in the
stock in a proprietary account, then
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 57236
(January 30, 2008), 73 FR 7022.
4 In Amendment No. 1, the Exchange made
conforming amendments to NYSE Rules 123C and
800 to remove references to NYSE Rule 97, and
corrected typographical errors in NYSE Rule 800.
Because Amendment No. 1 is technical in nature,
it is not subject to notice and comment.
5 See letter from Ann L. Vlcek, Securities Industry
and Financial Markets Association (‘‘SIFMA’’),
dated February 27, 2008 (‘‘SIFMA Letter’’).
1 15
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14MRN1
]]>Agencies
[Federal Register Volume 73, Number 51 (Friday, March 14, 2008)]
[Notices]
[Pages 13940-13941]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-5096]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57454; File No. SR-CHX-2007-18]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Order Approving Proposed Rule Change, as Modified by Amendment No. 1
Thereto, To Make Administrative Changes to its Routing Rules
March 7, 2008
I. Introduction
On July 6, 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 make administrative changes to its routing
rules. On January 22, 2008, the Exchange filed Amendment No. 1 to the
proposed rule change. The proposed rule change, as modified by
Amendment No. 1, was published for comment in the Federal Register on
February 1, 2008.\3\ The Commission received no comments on the
proposal. This order approves the proposed rule change, as amended.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 57203 (January 25,
2008), 73 FR 6232.
---------------------------------------------------------------------------
II. Description of the Proposal
The Exchange's rules provide that the Exchange's Matching System
will not execute an order if its execution would be improper under Rule
611 of Regulation NMS under the Act (``improper trade-through'').\4\ In
the case of an execution that would cause an improper trade-through,
the Exchange's rules provide that, if a participant submitted a cross
with satisfy or an outbound ISO, the Matching System will execute the
order and simultaneously route orders necessary to satisfy the bids or
offers of other markets.\5\ For all other orders, the
[[Page 13941]]
Exchange will either cancel the order back to the participant that
submitted it or will route the order to the destination of the
participant's choice, all at the direction of the participant.\6\
---------------------------------------------------------------------------
\4\ See CHX Article 20, Rule 5; and Rule 611 of Regulation NMS,
17 CFR 242.611.
\5\ The Exchange's systems determine when, how, and where these
orders should be routed. See CHX Article 20, Rule 5, Interpretation
and Policy .03(a).
\6\ The participant is responsible for ensuring that it has a
relationship with its chosen destination to permit the requested
access. The Exchange is not involved in the execution of the order
and states that any execution of the order is the responsibility of
the destination to which the order was sent. The Exchange, however,
reports any execution or cancellation of the order by the other
destination to the participant that submitted the order and notifies
the other venue of any cancellations or changes to the order
submitted by the order-sending participant. See Article 20, Rule 5,
Interpretation and Policy .03(b).
---------------------------------------------------------------------------
The Exchange's current routing rules also provide that the Exchange
will provide routing services pursuant to the terms of three separate
agreements, to the extent that they are applicable to a specific
routing decision: (1) An agreement between the Exchange and each
participant on whose behalf orders will be routed; (2) an agreement
between each participant and a specified third-party broker-dealer that
will use its routing connectivity to other markets and serve as a
``give-up'' in those markets; and (3) an agreement between the Exchange
and the specified third-party broker-dealer pursuant to which the
third-party broker-dealer agrees to provide routing connectivity to
other markets and serve as a ``give-up'' for the Exchange's
participants in other markets.\7\
---------------------------------------------------------------------------
\7\ See Article 20, Rule 5, Proposed Interpretation and Policy
.03(c)(1).
---------------------------------------------------------------------------
The Exchange proposes to make three changes to its routing rules.
First, the Exchange proposes to provide that, if requested by a
participant and its routing destination, the Exchange will flip any
executions into the participant's account and report that second leg of
the away-market transaction to clearing. The Exchange states that this
service would provide the order-sending participant the option of
consolidating its clearing reports in specific locations.
Second, the Exchange proposes to amend the requirement relating to
the agreements that are necessary for the Exchange to provide routing
services. For cross with satisfy and outbound ISOs, the Exchange will
continue to provide routing services pursuant to the terms of three
separate agreements to the extent that they are applicable to a
specific routing decision.\8\ For other orders, the Exchange proposes
to allow the CHX and/or a third-party broker-dealer providing
connectivity to other markets to determine which agreements are needed
to implement the routing functionality. The Exchange states that it
believes that most routing destinations will require that order-senders
sign additional agreements for any services that the destinations might
provide, but the Exchange would like to provide flexibility for
destinations to make choices appropriate to their business models.
---------------------------------------------------------------------------
\8\ See Article 20, Rule 5, Proposed Interpretation and Policy
.03(c).
---------------------------------------------------------------------------
Third, the Exchange proposes to provide that, with respect to a
cross with satisfy or an outbound ISO, the agreement between a
participant and the third-party broker-dealer routing its order by
access agreement with the Exchange need not provide that the third-
party broker-dealer will serve as a give-up if this is not necessary--
i.e., where the participant has a good give-up in the market to which
the order is routed and prefers that its own give-up be used.\9\
---------------------------------------------------------------------------
\9\ See Article 20, Rule 5, Proposed Interpretation and Policy
.03(c).
---------------------------------------------------------------------------
III. Discussion
After careful review, 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
securities exchange and, in particular, with Section 6(b)(5) of the
Act,\10\ which requires, among other things, 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.\11\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b)(5).
\11\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
The Commission believes that the proposed changes to the Exchange's
routing rules should provide the Exchange, its participants, and third-
party routers with more flexibility in establishing routing
arrangements. Accordingly, the Commission finds that the proposed rule
change, as amended, is consistent with the Act.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\12\ that the proposed rule change (SR-CHX-2007-18), as modified by
Amendment No. 1, be, and hereby 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. E8-5096 Filed 3-13-08; 8:45 am]
BILLING CODE 8011-01-P
