Federal Register / Vol. 72, No. 51 / Friday, March 16, 2007 / Notices 12641 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(1). 

5See Rule 8.3A.01. 

6 ‘‘Any actions taken by the President of the 

Exchange pursuant to this paragraph will be 

submitted to the SEC in a rule filing pursuant to 

Section 19(b)(3)(A) of the Exchange Act.’’ Rule 

8.3A.01(c). 

7 15 U.S.C. 78(f)(b). 

8 15 U.S.C. 78(f)(b)(5). 

9 15 U.S.C. 78s(b)(3)(A)(i). 

10 17 CFR 240.19b–4(f)(1). 

11The 60 day abrogation period commenced on 

March 5, 2007, the date on which the Exchange 

filed Amendment No. 1. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55429; File No. SR–CBOE–

2007–24] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change and Amendment No. 1 To 

Increase the Class Quoting Limit in the 

Option Class Baidu.com, Inc. (BIDU) 

March 8, 2007. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on February 

27, 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 CBOE. 

The Exchange has designated this 

proposal as one constituting a stated 

policy, practice, or interpretation with 

respect to the meaning, administration, 

or enforcement of an existing rule under 

Section 19(b)(3)(A)(i) of the Act,3 and 

Rule 19b–4(f)(1) 4 thereunder, which 

renders the proposal effective upon 

filing with the Commission. The 

Exchange submitted Amendment No. 1 

to the proposed rule change on March 

5, 2007. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change, as amended, from 

interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

CBOE proposes to increase the class 

quoting limit in the option class 

Baidu.com, Inc. (BIDU). The text of the 

proposed rule change is available on 

CBOE’s Web site (http:// 

www.cboe.com), 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 

CBOE Rule 8.3A, Maximum Number 

of Market Participants Quoting 

Electronically per Product, establishes 

class quoting limits (‘‘CQLs’’) for each 

class traded on the Hybrid Trading 

System.5 A CQL is the maximum 

number of quoters that may quote 

electronically in a given product and the 

current levels are established from 25–

40, depending on the trading activity of 

the particular product. 

Rule 8.3A, Interpretation .01(c) 

provides a procedure by which the 

President of the Exchange may increase 

the CQL for a particular product. In this 

regard, the President of the Exchange 

may increase the CQL in exceptional 

circumstances, which are defined in the 

rule as ‘‘substantial trading volume, 

whether actual or expected.’’ 6 The 

effect of an increase in the CQL is 

procompetitive in that it increases the 

number of market participants that may 

quote electronically in a product. The 

purpose of this filing is to increase the 

CQL in the option class BIDU from its 

current limit of 35 to 40 due to 

increased trading volume. Increasing the 

CQL in BIDU options will enable the 

Exchange to enhance the liquidity 

offered, thereby offering deeper and 

more liquid markets. 

2. Statutory Basis 

Accordingly, CBOE 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.7 Specifically, the Exchange 

believes the proposed rule change is 

consistent with the Section 6(b)(5) 8

requirements 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 Exchange Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither received nor 

solicited written comments on the 

proposal. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change 

will take effect upon filing with the 

Commission pursuant to Section 

19(b)(3)(A)(i) of the Act 9 and Rule 19b–

4(f)(1) thereunder,10 because it 

constitutes a stated policy, practice, or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule. 

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.11

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 

rule-comments@sec.gov. Please include 

File Number SR–CBOE–2007–24 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 


sroberts on PROD1PC70 with NOTICES
12642 Federal Register / Vol. 72, No. 51 / Friday, March 16, 2007 / Notices 

12 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). 

5The SEC previously extended the pilot programs 

for 6 months, from September 14, 2006 until March 

14, 2006. See Securities Exchange Act Release No. 

54443 (September 14, 2006), 71 FR 55237 

(September 21, 2006) (granting immediate 

effectiveness to SR–CBOE–2006–77). 6See Securities Exchange Act Release No. 50003 

(July 12, 2004), 69 FR 43028 (July 19, 2004) 

(approving SR–CBOE–2004–24). 7See Securities Exchange Act Release No. 51366 

(March 14, 2005), 70 FR 13217 (March, 18, 2005) 

(approving SR–CBOE–2004–75). 8The Exchange has committed to providing by 

September 14, 2007, updated data required by the 

Pilots. Telephone conversation between Patrick 

Sexton, Associate General Counsel, CBOE and 

Sonia Trocchio, Special Counsel, Division of 

Market Regulation, Commission (March 7, 2007). 9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(5). 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–CBOE–2007–24. 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–2007–24 and should 

be submitted on or before April 6, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4785 Filed 3–15–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55438; File No. SR–CBOE–

2007–19] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change to Extend Two Pilot 

Programs That Allow RMMs and eDPMs to Have up to One Affiliated 

Market-Maker Physically Present in the 

Trading Crowd 

March 9, 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’’

or ‘‘SEC’’) the proposed rule change as 

described in Items I and II 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 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 extend two pilot 

programs allowing Remote MarketMakers (‘‘RMMs’’) and Electronic DPMs 

(‘‘e-DPMs’’) to have up to one separate 

affiliated Market-Maker physically 

present in the trading crowd. The CBOE 

proposes to extend the pilots until 

March 14, 2008. 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. 

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 Exchange proposes to amend 

CBOE Rules 8.4(c)(i) and 8.93(vii) to 

extend the pilot programs allowing an 

RMM and e-DPM the option to have up 

to one separate affiliated Market-Maker 

physically present in the trading crowds 

where it operates as an RMM or e-DPM, 

respectively (such Market-Makers 

would be required to trade on a separate 

membership).5 The pilots would be 

extended from March 14, 2007 until 

March 14, 2008. 

In July of 2003, the SEC approved the 

e-DPM program, including the pilot 

program.6 The pilot allows e-DPM firms 

to maintain a physical presence in the 

trading crowd through an affiliated 

Market-Maker who would also be able 

to stream a quote. The pilot, however, 

limits the number of separate affiliates 

per trading crowd to one. 

In March of 2005, the SEC approved 

the RMM program, including the pilot 

program.7 The pilot allows RMM firms 

to maintain a physical presence in the 

trading crowd through an affiliated 

Market-Maker who would also be able 

to stream a quote. The pilot limits the 

number of separate affiliates per trading 

crowd to one. 

CBOE has provided the Commission, 

under separate cover, data relating to 

these Pilot Programs, which the SEC 

staff is reviewing.8 The Exchange has 

committed to providing by September 

14, 2007, data required by the Pilots. 

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.9

Specifically, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) of the Act,10 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 


sroberts on PROD1PC70 with NOTICES