11066 Federal Register / Vol. 72, No. 47 / Monday, March 12, 2007 / Notices 

1 15 U.S.C. 78k–1. 

2 17 CFR 242.608. 

3The ITS Plan is a National Market System 

(‘‘NMS’’) plan, which was designed to facilitate 

intermarket trading in exchange-listed equity 

securities based on current quotation information 

emanating from the linked markets. See Securities 

Exchange Act Release No. 19456 (January 27, 1983), 

48 FR 4938 (February 3, 1983). 

The ITS Participants currently include the 

American Stock Exchange LLC (‘‘Amex’’), the 

Boston Stock Exchange, Inc. (‘‘BSE’’), the Chicago 

Board Options Exchange, Inc. (‘‘CBOE’’), the 

Chicago Stock Exchange, Inc. (‘‘CHX’’), the Nasdaq 

Stock Market LLC (‘‘Nasdaq’’), the National 

Association of Securities Dealers, Inc. (‘‘NASD’’), 

the National Stock Exchange, Inc. (‘‘NSX’’), the New 

York Stock Exchange LLC (‘‘NYSE’’), NYSE Arca, 

Inc. (‘‘NYSE Arca’’), and the Philadelphia Stock 

Exchange, Inc. (‘‘Phlx’’) (‘‘Participants’’). 

4Trading Phase Date is the required date for full 

operation of Regulation NMS-compliant trading 

systems of all automated trading centers that intend 

to qualify their quotations for trade-through 

protection under Rule 611. See Securities Exchange 

Act Release No. 53829 (May 18, 2006), 71 FR 30038 

(May 24, 2006). See also Securities Exchange Act 

Release No. 55160 (January 24, 2007), 72 FR 4202 

(January 30, 2007) (extending the Trading Phase 

Date until March 5, 2007). 

5 17 CFR 242.608(b)(3)(ii). 

6The NMS Linkage Plan participants include 

Amex, BSE, CBOE, CHX, Nasdaq, NSX, NYSE, 

NYSE Arca, and PHLX. The NASD is not 

participating in the NMS Linkage Plan. The current 

ITS technology is being used to effectuate the NMS 

Linkage Plan. See Securities Exchange Act Release 

No. 54551 (September 29, 2006), 71 FR 59148 

(October 6, 2006) (approving the NMS Linkage 

Plan). 

7NMS Linkage Plan participants that wish to 

extend the term could agree to do so, subject to 

Commission approval. See Section 11 of the NMS 

Linkage Plan. 

system securities pursuant to section 

11A(a)(2) of the Exchange Act and rule 

11Aa2–1 thereunder. 

5. The Managing Members of each 

Fund will send to each Member who 

had an Interest in that Fund, at any time 

during the fiscal year then ended, Fund 

financial statements. Such financial 

statements shall be audited by 

independent accountants in accordance 

with United States generally accepted 

accounting principles. At the end of 

each fiscal year, the Managing Members 

will make a valuation or have a 

valuation made of all of the assets of the 

Fund as of such fiscal year end in a 

manner consistent with customary 

practice with respect to the valuation of 

assets of the kind held by the Fund. In 

addition, within 90 days after the end of 

each tax year of the Fund, or as 

promptly as practicable thereafter, the 

Managing Members shall send a report 

to each person who was a Member at 

any time during the fiscal year then 

ended, setting forth such tax 

information as shall be necessary for the 

preparation by the Member of his or her 

federal and state income tax returns and 

a report of the investment activities of 

the Fund during such year. 

6. Each Fund and its Managing 

Members will maintain and preserve, 

for the life of each such Fund and at 

least six years thereafter, such accounts, 

books, and other documents as 

constitute the record forming the basis 

for the financial statements and annual 

reports of such Fund to be provided to 

its Members, and agree that all such 

records will be subject to examination 

by the Commission and its staff. All 

such records will be maintained in an 

easily accessible place for at least the 

first two years. 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4291 Filed 3–9–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55397; File No. 4–208] 

Intermarket Trading System; Notice of 

Filing and Immediate Effectiveness of 

the Twenty Fourth Amendment to the 

ITS Plan Relating to the Elimination of 

the ITS Plan 

March 5, 2007. 

Pursuant to Section 11A of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 608 thereunder,2

notice is hereby given that on February 

27, 2007, the ITS Participants, through 

the ITS Operating Committee, submitted 

to the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed amendment (‘‘Twenty Fourth 

Amendment’’) to the restated ITS Plan.3

The purpose of the Twenty Fourth 

Amendment is to eliminate the ITS Plan 

concurrent with the Trading Phase 

Date.4 Pursuant to Rule 608(b)(3)(ii) 

under the Act,5 the ITS Participants 

designated the amendment as concerned 

solely with the administration of the 

Plan. As a result, the Twenty Fourth 

Amendment has become effective upon 

filing with the Commission. At any time 

within 60 days of the filing of the 

amendment, the Commission may 

summarily abrogate the amendment and 

require that such amendment be refiled 

in accordance with paragraph (a)(1) of 

Rule 608 and reviewed in accordance 

with paragraph (b)(2) of Rule 608, if it 

appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or the maintenance of fair and 

orderly markets, to remove impediments 

to, and perfect the mechanisms of, a 

national market system or otherwise in 

furtherance of the purposes of the Act. 

The Commission is publishing this 

notice to solicit comments from 

interested persons. 

I. Description and Purpose of the 

Proposed Amendment 

The purpose of the proposed 

amendment is to eliminate the ITS Plan 

concurrent with the Trading Phase Date. 

The ‘‘Plan for the Purpose of Creating 

and Operating an Intermarket 

Communications Linkage Pursuant to 

Section 11A(a)(3)(B) of the Securities 

Exchange Act of 1934’’ (‘‘NMS Linkage 

Plan’’) 6 remains in effect until June 30, 

2007.7

A. Governing or Constituent Documents 

Not applicable. 

B. Implementation of Amendment 

The ITS Participants have manifested 

their approval of the proposed 

amendment by means of their execution 

of the Twenty Fourth Amendment. The 

Twenty Fourth Amendment has become 

effective upon filing. 

C. Development and Implementation 

Phases 

Not applicable. 

D. Analysis of Impact on Competition 

The Participants believe that the 

proposed amendment does not impose 

any burden on competition. 

E. Written Understanding or Agreements 

Relating to Interpretation of, or 

Participation in, Plan 

Not applicable. 

F. Approval by Sponsors in Accordance 

With Plan 

Under section 4(c) of the restated ITS 

Plan, the requisite approval of the 

amendment is achieved by execution of 

the amendment on behalf of each ITS 

Participant. The amendment is so 

executed. 

G. Description of Operation of Facility 

Contemplated by the Proposed 

Amendment 

Not applicable. 

H. Terms and Conditions of Access 

Not applicable. 

I. Method of Determination and 

Imposition, and Amount of, Fees and 

Charges 

Not applicable. 

J. Method of Frequency of Processor 

Evaluation 

Not applicable. 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 72, No. 47 / Monday, March 12, 2007 / Notices 11067 

8 17 CFR 200.30–3(a)(27). 1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5 15 U.S.C. 78f(b). 

6 15 U.S.C. 78f(b)(4). 

K. Dispute Resolution 

Not applicable. 

II. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed Plan 

amendment is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

No. 4–208 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File No. 

4–208. 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 

(http://www.sec.gov/rules/sro.shtml). 

Copies of the submission, all subsequent 

amendments, all written statements 

with respect to the proposed Plan 

amendment that are filed with the 

Commission, and all written 

communications relating to the 

proposed Plan amendment 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. Copies of the Plan Amendment 

also will be available for inspection and 

copying at the principal office of the 

ITS. 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. 4–

208 and should be submitted on or 

before April 2, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4326 Filed 3–9–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55395; File No. SR–CBOE–

2007–25] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Establishing Fees for the 

CBOE Stock Exchange 

March 2, 2007. 

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 March 1, 

2007, 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 

substantially prepared by the Exchange. 

CBOE designated this proposal as one 

establishing or changing a due, fee, or 

other charge applicable only to its 

members pursuant to Section 

19(b)(3)(A)(ii) of the Act 3 and Rule 19b–

4(f)(2) thereunder,4 which renders the 

proposal effective upon filing with the 

Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

CBOE proposes to establish fees 

applicable to the CBOE Stock Exchange 

(‘‘CBSX’’). The text of the proposed rule 

change is available on the Exchange’s 

Web site (http://www.cboe.org/legal), at 

the principal office of the Exchange, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of, and basis for, 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On March 5, 2007, CBOE intends to 

launch CBSX, which will serve as a 

stock trading facility of CBOE. This 

filing proposes to set forth the fee 

schedule for CBSX. Specifically, the 

CBSX fee schedule lists certain fees 

from the CBOE fee schedule that are 

applicable to CBSX users (these include 

facility fees and connectivity charges). 

The CBSX fee schedule also contains 

transaction fees for CBSX. These 

transaction fees are based on whether 

the executing member is ‘‘taking’’

liquidity or ‘‘making’’ liquidity in 

connection with the transaction. Takers 

will be charged a rate that varies 

between $0.26 to $0.29 per 100 shares 

executed based on the amount of total 

volume executed by that user during the 

month. Orders that are ‘‘routed’’ to other 

market centers will be charged the same 

rate as the Taker rate. Makers will 

receive a rebate of $0.24 per 100 shares, 

except that Remote Market-Makers and 

Designated Primary Market-Makers will 

receive enhanced rebates if they meet 

certain market quality bid/ask standards 

that are calculated on a monthly basis. 

Cross transactions will be free. Lastly, 

CBSX will rebate users 50% of monthly 

tape revenue received from the 

Consolidated Tape Association and 

Nasdaq UTP Plans. The proposed fees 

will not take effect until March 5, 2007. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the Act,5

in general, and furthers the objectives of 

Section 6(b)(4) of the Act,6 in particular, 

in that it is designed to provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among CBOE 

members and other persons using its 

facilities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE does not believe that the 

proposed rule change will impose any 


pwalker on PROD1PC71 with NOTICES