Self-Regulatory Organizations; American Stock Exchange LLC; Order Granting Approval of a Proposed Rule Change Relating to Margin Requirements for Fixed Return Options, 60369-60370 [E8-24116]
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mstockstill on PROD1PC66 with NOTICES
Federal Register / Vol. 73, No. 198 / Friday, October 10, 2008 / Notices
Stat. 4097, as amended, and in
accordance with the Trust’s bylaws,
informing the public that the public
meeting of the Trust Board of Directors
is now rescheduled for November 13,
2008.
SUPPLEMENTARY INFORMATION: In
accordance with the National
Environmental Policy Act, the Trust is
requesting public comment on the
Presidio Trust Management Plan
(PTMP) Main Post Update Draft SEIS.
The Draft SEIS evaluates alternatives to
the planning concept for the 120-acre
Main Post district at the Presidio of San
Francisco identified in the 2002 PTMP,
the Trust’s comprehensive land use plan
and policy framework. The Draft SEIS
considers planning proposals that were
not anticipated in the PTMP, including
a contemporary art museum and a
lodge, and identifies Alternative 2 as the
proposed action, which is further
described in the Draft Main Post Update
of the PTMP. By extending the comment
period, the Trust anticipates more indepth comments on the Draft SEIS that
will promote a better-informed decision.
The Draft PTMP Main Post Update and
Draft SEIS can be reviewed at local
libraries, at the Trust headquarters at 34
Graham Street, San Francisco, CA
94129, and on the Trust Web site at
https://www.Presidio.gov in the Major
Projects section. Although the time for
comments has been extended, the Trust
requests that interested parties provide
comments as soon as possible.
The purposes of the public meeting
are to provide an Executive Director’s
report, to receive public comment at a
second public meeting of the Trust’s
Board of Directors on the Draft PTMP
Main Post Update and Draft SEIS, and
to receive public comment on other
matters in accordance with the Trust’s
Public Outreach Policy. The meeting
will be held on Thursday, November 13,
2008, at 6:30 p.m., at a location to be
announced in a future notice.
Individuals requiring special
accommodation at the public meeting,
such as needing a sign language
interpreter, should contact Mollie
Matull at 415.561.5300 prior to
November 7, 2008.
DATES: The public meeting will begin at
6:30 p.m. on Thursday, November 13,
2008. Written comments must be
received by November 17, 2008.
ADDRESSES: The location of the public
meeting will be announced in a future
notice. Written comments should be
submitted to Main Post, Attn:
Compliance Coordinator, The Presidio
Trust, 34 Graham Street, P.O. Box
29052, San Francisco, CA 94129–0052.
Electronic comments can be sent to
VerDate Aug<31>2005
20:11 Oct 09, 2008
Jkt 217001
Mainpost@Presidiotrust.gov. Please be
aware that all comments and
information submitted will be made
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without limitation, any postal address,
e-mail address, phone number or other
information contained in each
submission.
FOR FUTHER INFORMATION CONTACT: John
Pelka, 415.561.4183.
Dated: October 6, 2008.
Karen A. Cook,
General Counsel.
[FR Doc. E8–24134 Filed 10–9–08; 8:45 am]
BILLING CODE 4310–4R–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58716; File No. SR–Amex–
2008–60]
Self-Regulatory Organizations;
American Stock Exchange LLC; Order
Granting Approval of a Proposed Rule
Change Relating to Margin
Requirements for Fixed Return
Options
October 2, 2008.
On July 21, 2008, the American Stock
Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’ or
‘‘Exchange Act’’),1 and Rule 19b–42
thereunder, a proposed rule change to
amend its margin requirements for fixed
return options. The proposal was
published in the Federal Register on
August 18, 2008.3 The Commission
received no comments on the proposal.
This order approves the proposed rule
change.
The Exchange proposed to amend
Rule 462(d)10 to clarify the margin
requirements applicable to Fixed Return
Options (‘‘FROs’’ or ‘‘Fixed Return
Options’’).4 The Exchange stated that
the purpose of this proposal is to add
clarity regarding the application of FRO
margin requirements in connection with
‘‘spreads’’ and ‘‘straddle/combination’’
strategies. In addition, the proposal also
seeks to clarify the use of ‘‘cover’’ and
a ‘‘cash account’’ in connection with
1 15
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Exchange Act Release No. 58341 (August 11,
2008), 73 FR 48258.
4 The Exchange commenced the trading of FROs
on May 8, 2008. In August 2007, the Commission
approved the Exchange proposal to list and trade
FROs based on individual stocks and exchangetraded funds (‘‘ETFs’’). See Exchange Act Release
No. 56251 (August 14, 2007), 72 FR 46523 (August
20, 2007).
PO 00000
Frm 00142
Fmt 4703
Sfmt 4703
60369
FROs. The Exchange stated that it
believes that the proposed revision
reducing the customer margin
applicable to ‘‘spread’’ and ‘‘straddle/
combination’’ positions in FROs is
appropriate because risk exposure is
reduced under these strategies.
Amex Rule 462(d)10 is silent
regarding the use of ‘‘spread’’ and
‘‘straddle/combination’’ positions. With
respect to a ‘‘spread’’ position in FROs,
the Amex proposes that no margin be
required on a Finish High5 FRO (Finish
Low 6 FRO) carried short in a customer’s
account that is offset by a long Finish
High FRO (Finish Low FRO) for the
same underlying security or instrument
that expires at the same time and has an
exercise or strike price that is less than
(greater than) the exercise or strike price
of the short Finish High (Finish Low).
As set forth in Rule 462(d)10(B), the
long Finish High (Finish Low) must be
paid for in full.
In connection with a straddle/
combination, when a Finish High FRO
is carried short in a customer’s account
and there is also carried a short Finish
Low FRO that expires at the same time
and has an exercise price or strike price
that is less than or equal to the exercise
or strike price of the short Finish High,
the initial and maintenance margin
required would be the exercise
settlement amount applicable to one
contract.
With respect to the concept of ‘‘cover’’
the Exchange proposed a clarification
that ‘‘cover’’ is applicable only to ‘‘cash
accounts.’’ In such a case, a FRO carried
short in a customer’s account will be
deemed a covered position, and eligible
for the cash account, if either one of the
following is held in the account at the
time the FRO is written or is received
into the account promptly thereafter:
• Cash or cash equivalents equal to 100%
of the exercise settlement amount;
• A long FRO of the same type (Finish
High or Finish Low) for the same underlying
security or instrument that is paid for in full
and expires at the same time, and has an
exercise or strike price that is less than the
exercise or strike price of the short in the
case of a Finish High or greater than the
exercise or strike price of the short in the
case of a Finish Low; or
• An escrow agreement.
The escrow agreement must certify
that the bank holds for the account of
the customer as security for the
5 A ‘‘Finish High’’ FRO is defined in Rule 900
FRO(b)(2) as an option contract which returns $100
if the underlying security closes above the strike
price at expiration.
6 A ‘‘Finish Low’’ FRO is defined in Rule 900
FRO(b)(3) as an option contract which returns $100
if the underlying security closes below the strike
price at expiration.
E:\FR\FM\10OCN1.SGM
10OCN1
60370
Federal Register / Vol. 73, No. 198 / Friday, October 10, 2008 / Notices
agreement (A) cash, (B) cash
equivalents, (C) one or more qualified
equity securities, or (D) a combination
thereof having an aggregate market
value of not less than 100% of the
exercise settlement amount and that the
bank will promptly pay the member
organization the cash settlement amount
in the event the account is assigned an
exercise notice.
After careful review of the proposal,
the Commission finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.7 In
particular, the Commission finds that
the proposal is consistent with Section
6(b)(5) of the Act,8 which requires,
among other things, that the rules of an
exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to remove
impediments to and to perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. The Commission
believes that the proposal will benefit
the marketplace and provide market
participants with greater clarity in
connection with their responsibilities in
the trading and handling of FRO
transactions.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,9 that the
proposed rule change (SR–Amex–2008–
60), be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–24116 Filed 10–9–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58735; File No. SR–CBOE–
2008–104]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Temporary
Membership Status and Interim
Trading Permit Access Fees
October 6, 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
September 30, 2008, the Chicago Board
Options Exchange, Incorporated
(‘‘CBOE’’ 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
prepared by the CBOE. The Commission
is publishing this notice to solicit
comments on the proposed rule change
from interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to adjust (1) the
monthly access fee for persons granted
temporary CBOE membership status
(‘‘Temporary Members’’) pursuant to
Interpretation and Policy .02 under
CBOE Rule 3.19 (‘‘Rule 3.19.02’’) and (2)
the monthly access fee for Interim
Trading Permit (‘‘ITP’’) holders under
CBOE Rule 3.27. The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.org/Legal/), at the Exchange’s
Office of the Secretary, and at the
Commission’s Public Reference Room.
mstockstill on PROD1PC66 with NOTICES
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
7 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).
8 15 U.S.C. 78f(b)(5).
9 15 U.S.C. 78s(b)(2).
10 17 CFR 200.30–3(a)(12).
VerDate Aug<31>2005
20:11 Oct 09, 2008
Jkt 217001
In its filing with the Commission,
CBOE 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 CBOE has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00143
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of,
andStatutory Basis for, the Proposed
Rule Change
1. Purpose
The current access fee for Temporary
Members under Rule 3.19.02 3 and the
current access fee for ITP holders under
Rule 3.27 4 are both $10,800 per month.
Both access fees are currently set at the
indicative lease rate (as defined below)
for September 2008. The Exchange
proposes to adjust both access fees
effective at the beginning of October
2008 to be equal to the indicative lease
rate for October 2008 (which is
$10,118). Specifically, the Exchange
proposes to revise both the Temporary
Member access fee and the ITP access
fee to be $10,118 per month
commencing on October 1, 2008.
The indicative lease rate is defined
under Rule 3.27(b) as the highest
clearing firm floating monthly rate 5 of
the CBOE Clearing Members that assist
in facilitating at least 10% of the CBOE
transferable membership leases.6 The
Exchange determined the indicative
lease rate for October 2008 by polling
each of these Clearing Members and
obtaining the clearing firm floating
monthly rate designated by each of
these Clearing Members for that month.
The Exchange used the same process
to set the proposed Temporary Member
and ITP access fees that it used to set
the current Temporary Member and ITP
access fees. The only difference is that
the Exchange used clearing firm floating
monthly rate information for the month
of October 2008 to set the proposed
access fees (instead of clearing firm
floating monthly rate information for the
month of September 2008 as was used
to set the current access fees) in order
to take into account changes in clearing
firm floating monthly rates for the
month of October 2008.
The Exchange believes that the
process used to set the proposed
3 See Securities Exchange Act Release No. 56458
(September 18, 2007), 72 FR 54309 (September 24,
2007) (SR–CBOE–2007–107) for a description of the
Temporary Membership status under Rule 3.19.02.
4 See Securities Exchange Act Release No. 58178
(July 17, 2008), 73 FR 42634 (July 22, 2008) (SR–
CBOE–2008–40) for a description of the Interim
Trading Permits under Rule 3.27.
5 Rule 3.27(b) defines the clearing firm floating
monthly rate as the floating monthly rate that a
Clearing Member designates, in connection with
transferable membership leases that the Clearing
Member assisted in facilitating, for leases that
utilize that monthly rate.
6 The concepts of an indicative lease rate and of
a clearing firm floating month rate were previously
utilized in the CBOE rule filings that set and
adjusted the Temporary Member access fee. Both
concepts were also recently codified in Rule 3.27(b)
in relation to ITPs.
E:\FR\FM\10OCN1.SGM
10OCN1
Agencies
[Federal Register Volume 73, Number 198 (Friday, October 10, 2008)]
[Notices]
[Pages 60369-60370]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-24116]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58716; File No. SR-Amex-2008-60]
Self-Regulatory Organizations; American Stock Exchange LLC;
Order Granting Approval of a Proposed Rule Change Relating to Margin
Requirements for Fixed Return Options
October 2, 2008.
On July 21, 2008, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'' or ``Exchange Act''),\1\ and Rule 19b-
4\2\ thereunder, a proposed rule change to amend its margin
requirements for fixed return options. The proposal was published in
the Federal Register on August 18, 2008.\3\ The Commission received no
comments on the proposal. This order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Exchange Act Release No. 58341 (August 11, 2008), 73 FR
48258.
---------------------------------------------------------------------------
The Exchange proposed to amend Rule 462(d)10 to clarify the margin
requirements applicable to Fixed Return Options (``FROs'' or ``Fixed
Return Options'').\4\ The Exchange stated that the purpose of this
proposal is to add clarity regarding the application of FRO margin
requirements in connection with ``spreads'' and ``straddle/
combination'' strategies. In addition, the proposal also seeks to
clarify the use of ``cover'' and a ``cash account'' in connection with
FROs. The Exchange stated that it believes that the proposed revision
reducing the customer margin applicable to ``spread'' and ``straddle/
combination'' positions in FROs is appropriate because risk exposure is
reduced under these strategies.
---------------------------------------------------------------------------
\4\ The Exchange commenced the trading of FROs on May 8, 2008.
In August 2007, the Commission approved the Exchange proposal to
list and trade FROs based on individual stocks and exchange-traded
funds (``ETFs''). See Exchange Act Release No. 56251 (August 14,
2007), 72 FR 46523 (August 20, 2007).
---------------------------------------------------------------------------
Amex Rule 462(d)10 is silent regarding the use of ``spread'' and
``straddle/combination'' positions. With respect to a ``spread''
position in FROs, the Amex proposes that no margin be required on a
Finish High\5\ FRO (Finish Low \6\ FRO) carried short in a customer's
account that is offset by a long Finish High FRO (Finish Low FRO) for
the same underlying security or instrument that expires at the same
time and has an exercise or strike price that is less than (greater
than) the exercise or strike price of the short Finish High (Finish
Low). As set forth in Rule 462(d)10(B), the long Finish High (Finish
Low) must be paid for in full.
---------------------------------------------------------------------------
\5\ A ``Finish High'' FRO is defined in Rule 900 FRO(b)(2) as an
option contract which returns $100 if the underlying security closes
above the strike price at expiration.
\6\ A ``Finish Low'' FRO is defined in Rule 900 FRO(b)(3) as an
option contract which returns $100 if the underlying security closes
below the strike price at expiration.
---------------------------------------------------------------------------
In connection with a straddle/combination, when a Finish High FRO
is carried short in a customer's account and there is also carried a
short Finish Low FRO that expires at the same time and has an exercise
price or strike price that is less than or equal to the exercise or
strike price of the short Finish High, the initial and maintenance
margin required would be the exercise settlement amount applicable to
one contract.
With respect to the concept of ``cover'' the Exchange proposed a
clarification that ``cover'' is applicable only to ``cash accounts.''
In such a case, a FRO carried short in a customer's account will be
deemed a covered position, and eligible for the cash account, if either
one of the following is held in the account at the time the FRO is
written or is received into the account promptly thereafter:
Cash or cash equivalents equal to 100% of the exercise
settlement amount;
A long FRO of the same type (Finish High or Finish Low)
for the same underlying security or instrument that is paid for in
full and expires at the same time, and has an exercise or strike
price that is less than the exercise or strike price of the short in
the case of a Finish High or greater than the exercise or strike
price of the short in the case of a Finish Low; or
An escrow agreement.
The escrow agreement must certify that the bank holds for the
account of the customer as security for the
[[Page 60370]]
agreement (A) cash, (B) cash equivalents, (C) one or more qualified
equity securities, or (D) a combination thereof having an aggregate
market value of not less than 100% of the exercise settlement amount
and that the bank will promptly pay the member organization the cash
settlement amount in the event the account is assigned an exercise
notice.
After careful review of the proposal, the Commission finds that the
proposed rule change is consistent with the requirements of the Act and
the rules and regulations thereunder applicable to a national
securities exchange.\7\ In particular, the Commission finds that the
proposal is consistent with Section 6(b)(5) of the Act,\8\ which
requires, among other things, that the rules of an exchange be designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, to remove impediments to and to
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
The Commission believes that the proposal will benefit the marketplace
and provide market participants with greater clarity in connection with
their responsibilities in the trading and handling of FRO transactions.
---------------------------------------------------------------------------
\7\ 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).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\9\ that the proposed rule change (SR-Amex-2008-60), be, and hereby
is, approved.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Florence E. Harmon,
Acting Secretary.
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
[FR Doc. E8-24116 Filed 10-9-08; 8:45 am]
BILLING CODE 8011-01-P