Federal Register / Vol. 72, No. 46 / Friday, March 9, 2007 / Notices 10795 

20 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5See Securities Exchange Act Release No. 51429 

(March 24, 2005), 70 FR 16536 (March 31, 2005) 

(approving SR–CBOE–2004–58). 

6Last year, CBOE amended its rules to allow 

Market-Makers to create a ‘‘Virtual Trading Crowd’’

appointment, and also modified the language in 

Rule 8.3(c) such that it states a Market-Maker can 

quote electronically away from CBOE’s trading floor 

pursuant to the Pilot Program. (See Securities 

Exchange Act Release No. 54182 (July 20, 2006), 71 

FR 42692 (July 20, 2006) (approving SR–CBOE–

2006–51).) 

7See Securities Exchange Act Release No. 53410 

(March 3, 2006), 71 FR 12747 (March 13, 2006) 

(granting immediate effectiveness to SR–CBOE–

2006–24). 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(3)(A)(iii). 

11 17 CFR 240.19b–4(f)(6). 

Number SR–Amex–2007–17 and should 

be submitted on or before March 30, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.20

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4190 Filed 3–8–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55381; File No. SR–CBOE–

2007–18] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Request Permanent 

Approval of a Pilot Program Relating to 

Market-Makers Quoting Remotely 

March 1, 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 February 

22, 2007, the Chicago Board Options 

Exchange, Incorporated (‘‘Exchange’’ or 

‘‘CBOE’’) 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 Exchange. 

The Exchange filed the proposal as a 

‘‘non-controversial’’ proposed rule 

change pursuant to Section 

19(b)(3)(A)(iii) of the Act 3 and Rule 

19b–4(f)(6) thereunder.4 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 amend CBOE Rule 

8.3 to request permanent approval of a 

pilot program relating to Market-Makers 

quoting away from CBOE’s trading floor. 

The text of the proposed rule change is 

available on CBOE’s Web site (http:// 

www.cboe.org/Legal), at the CBOE’s 

Office of the Secretary, 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 

The purpose of the proposed rule 

change is to request permanent approval 

of an existing Pilot Program that allows 

a CBOE Market-Maker to submit 

electronic quotations away from CBOE’s 

trading floor in his/her appointed 

Hybrid Classes and Hybrid 2.0 Classes. 

In March 2005, CBOE amended its rules 

relating to Market-Maker appointments 

and quoting obligations.5 Among other 

changes, CBOE amended Rule 8.3 to 

provide that a Market-Maker may 

submit electronic quotations from a 

location outside of his/her appointed 

trading station.6 Previously, MarketMakers were only permitted to stream 

electronic quotations in their appointed 

Hybrid and Hybrid 2.0 classes when 

they were physically present in the 

trading crowd. In making this change, 

CBOE determined to request that it only 

be approved on a pilot basis to give 

CBOE the ability to evaluate the 

effectiveness of allowing Market-Makers 

to quote remotely. CBOE extended the 

Pilot Program for an additional year last 

March 2006.7 The current Pilot Program 

is scheduled to expire on March 24, 

2007. 

CBOE believes that the Pilot Program 

has been successful, in that it allows 

Market-Makers to choose how they 

would like to participate in CBOE’s 

Hybrid Trading System, i.e., 

electronically, in open outcry, or both. 

Although not all Market-Makers have 

chosen to quote electronically away 

from CBOE’s trading floor in their 

appointed Hybrid Classes and Hybrid 

2.0 Classes, those Market-Makers that 

have availed themselves of this Pilot 

Program continue to provide liquidity 

and increased competition in their 

appointed option classes when they 

quote remotely. CBOE has not 

experienced any negative effects of 

allowing Market-Makers to quote from a 

location away from CBOE’s trading 

floor. Thus, CBOE believes it would be 

appropriate and beneficial to 

permanently approve the Pilot Program, 

and permit Market-Makers to continue 

to have the option to quote 

electronically away from CBOE’s trading 

floor. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 

and the rules and regulations under the 

Act applicable to a national securities 

exchange and, in particular, the 

requirements of Section 6(b) of the Act.8

Specifically, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) of the Act,9 which 

requires that the rules of an exchange be 

designed to promote just and equitable 

principles of trade, to prevent 

fraudulent and manipulative acts and, 

in general, to protect investors and the 

public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE 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)(iii) of the Act 10 and 

subparagraph (f)(6) of Rule 19b–4 11


jlentini on PROD1PC65 with NOTICES
10796 Federal Register / Vol. 72, No. 46 / Friday, March 9, 2007 / Notices 

12 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78s(b)(3)(A)(i). 

3 17 CFR 240.19b–4(f)(1). 4 15 U.S.C. 78q–1. 

thereunder because it does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; (iii) become operative for 

30 days from the date on which it was 

filed, or such shorter time as the 

Commission may designate; and the 

Exchange has given the Commission 

written notice of its intention to file the 

proposed rule change at least five 

business days prior to filing. 

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 

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 (http://www.sec.gov/ 

rules/sro.shtml); or 

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

Number SR–CBOE–2007–18 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–2007–18. 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 

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 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 

Section, 100 F Street, NE., Washington, 

DC 20549. Copies of such filing also will 

be available for inspection and copying 

at the principal office of the 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–2007–18 and should 

be submitted on or before March 30, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4191 Filed 3–8–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55390; File No. SR–DTC–

2007–03] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

New York Governing Law 

March 2, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

February 8, 2007, The Depository Trust 

Company (‘‘DTC’’) 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 substantially by DTC. DTC 

filed the proposed rule change pursuant 

to Section 19(b)(3)(A)(i) of the Act2 and 

Rule 19b–4(f)(1)3 thereunder so that the 

proposal was 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 

DTC is adding a new Section 4 to Rule 

1 (Definitions) to clarify that the ByLaws, Rules, and Procedures are 

governed by New York state law. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

DTC 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. DTC 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 

DTC is adding a new Section 4 to Rule 

1 to clarify that the By-Laws, Rules, and 

Procedures are governed by New York 

state law. DTC’s participant’s and 

pledgee’s agreements currently specify 

this choice of law, but DTC wishes to 

add such language explicitly to its rules 

for transparency purposes and to 

harmonize DTC’s rules with those of its 

clearing agency affliliates, the Fixed 

Income Clearing Corporation and the 

National Securities Clearing 

Corporation. 

DTC believes that the proposed rule 

change is consistent with the 

requirements of Section 17A of the Act4

and the rules and regulations 

thereunder applicable to DTC because 

the proposed change is a clarification 

that does not adversely affect the 

safeguarding of securities and funds in 

the custody or control of the clearing 

agency or for which it is responsible and 

does not adversely affect the respective 

rights or obligations of the clearing 

agency or its members. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

DTC does not believe that the 

proposed rule change will have any 

impact or impose any burden on 

competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

DTC has not solicited or received 

written comments relating to the 

proposed rule change. DTC will notify 

the Commission of any written 

comments it receives. 


jlentini on PROD1PC65 with NOTICES