13322 Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices 

13 15 U.S.C. 78f(b)(4). 

14 15 U.S.C. 78s(b)(3)(A)(ii). 

15 17 CFR 19b–4(f)(2). 16 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). 

4 17 CFR 240.19b–4(f)(5). 

member organizations effective 

February 22, 2007. 

2. Statutory Basis 

The proposed fee change is consistent 

with Section 6(b)(4) of the Act 13

regarding the equitable allocation of 

reasonable dues, fees, and other charges 

among exchange members and other 

persons using exchange facilities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

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 proposed rule change 

has become effective pursuant to 

Section 19(b)(3)(A)(ii) of the Act 14 and 

Rule 19b–4(f)(2) thereunder 15 because it 

establishes or changes a due, fee, or 

other charge imposed by the Exchange. 

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. 

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 

No. SR–Amex–2007–23 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 

Number SR–Amex–2007–23. 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 

Room. Copies of the filing also will be 

available for inspection and copying at 

the principal office of Amex. 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–Amex–2007–23 and should 

be submitted on or before April 10, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5059 Filed 3–20–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55472; File No. SR–BSE–

2007–08] 

Self-Regulatory Organizations; Boston 

Stock Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change and 

Amendment No. 1 Thereto To Add an 

Automatic Quote Cancellation 

Procedure to the Boston Options 

Exchange Rules 

March 14, 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 

15, 2007, the Boston Stock Exchange, 

Inc. (‘‘BSE’’ 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. On March 13, 2007, BSE 

submitted Amendment No. 1 to the 

proposed rule change. BSE has filed the 

proposal pursuant to Section 19(b)(3)(A) 

of the Act 3 and Rule 19b–4(f)(5) 

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, 

as amended, from interested persons. 

I. Self–Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

BSE proposes to add Section 15, 

Automatic Quote Cancellation 

Procedure, to Chapter VI in the Boston 

Options Exchange (‘‘BOX’’) Rules. This 

proposed addition to the BOX Rules 

will provide a BOX Market Maker the 

option of enabling automatic quote 

cancellation protection so its quotes will 

be automatically cancelled if it is 

technically disconnected from the BOX 

Trading Host. The text of the proposed 

rule change is below. Proposed new 

language is in italics. 

Chapter VI. Market Makers 

Sec. 1 through Sec. 14—No Change. 

Sec. 15 Automatic Quote Cancellation 

Procedure: 

(a) The Automatic Quote Cancellation 

Procedure is enabled (or disabled) for 

all of a Market Maker’s appointed 

options classes when a Market Maker 

sends an Automatic Quote Cancellation 

Procedure enabling (or disabling) 

message to the Trading Host. The 

Market Maker must provide in the 

enable message the duration of no 

technical connectivity after which the 

Trading Host should cancel his quotes 

(set for a duration of between one and 

nine seconds). Unless enabled, the 

Automatic Quote Cancellation 

Procedure is disabled for all options 

classes. 

(b) When the Automatic Quote 

Cancellation Procedure has been 

enabled, the Trading Host will 

automatically cancel all quotes posted 

by the Market Maker in all of the Market 

Maker’s appointed options classes when 


jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices 13323 

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

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78s(b)(3)(A)(iii). 

8 17 CFR 240.19b–4(f)(5). 

9 15 U.S.C. 78s(b)(3)(C). For purposes of 

calculating the 60-day period within which the 

Commission may summarily abrogate the proposal, 

the Commission considers the period to commence 

on March 13, 2007, the date on which the Exchange 

submitted Amendment No. 1. 

there has been no technical 

communication with the Trading Host 

for the time indicated by the Market 

Maker as described in section 15(a) 

above. 

* * * * * 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, BSE 

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. BSE 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 proposed addition to the BOX 

Rules will provide a BOX Market Maker 

protection when it becomes 

disconnected from the BOX Trading 

Host. The proposed rule will allow a 

BOX Market Maker the option to turn on 

the automatic quote cancellation 

protection by sending an enabling 

message to the BOX Trading Host. The 

enabling message must provide the 

duration of no technical connectivity 

(between one and nine seconds) after 

which the BOX Trading Host will cancel 

all of the Market Maker’s quotes. Once 

the Market Maker enables this 

protection, the BOX Trading Host will 

count the number of seconds since the 

last quote message or heartbeat 

(‘‘Message’’) received from the Market 

Maker. Each Market Maker Message 

received by the BOX Trading Host will 

restart the counter. A Market Maker’s 

quotes will be automatically canceled if 

the BOX Trading Host counter reaches 

the Market Maker’s specified timeframe. 

There is no outgoing message sent by 

the BOX Trading Host which will trigger 

the automatic quote cancellation 

procedure. The Exchange believes that 

this proposed rule change will benefit 

the marketplace, as it reduces the 

chance of erroneous or stale quotes if a 

BOX Market Maker loses technical 

connectivity. 

The following example illustrates 

how the Automatic Quote Cancellation 

Procedure will work: 

START OF THE DAY 

11:37:05:82—Market Maker sends a 

message enabling the automatic quote 

cancellation procedure, setting the 

BOX Trading Host counter for 5 

seconds of no activity 

Counter starts 

11:37:09:26—Market Maker sends a 

Bulk Quote on class 1 

Counter re-starts 

11:37:10:06—Market Maker sends a 

Panic Quote on class 1 

Counter re-starts 

11:37:12:06—Market Maker sends a 

Bulk Quote on class 2 

Counter re-starts 

11:37:13:06—Market Maker sends a 

Heartbeat 

Counter re-starts 

11:37:18:07—Nothing received from the 

Market Maker. 

The Box Trading Host cancels all of the 

Market Maker’s quotes. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

provisions of Section 6(b) of the Act,5 in 

general, and with Section 6(b)(5) of the 

Act,6 in particular, in that the proposal 

is 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. 

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. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the proposed rule change 

does not: (1) Significantly affect the 

protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) have the 

effect of limiting the access to or 

availability of an existing order entry or 

trading system of the Exchange, the 

foregoing rule change has become 

effective immediately pursuant to 

Section 19(b)(3)(A)(iii) of the Act 7 and 

Rule 19b–4(f)(5) thereunder.8 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.9

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–BSE–2007–08 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–BSE–2007–08. 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 

Room. Copies of the filing also will be 

available for inspection and copying at 

the principal office of BSE. All 

comments received will be posted 


jlentini on PROD1PC65 with NOTICES
13324 Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices 

10 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 Rule 8.3(c)(viii) and Rule 8.4(c)(ii). 

6See Securities Exchange Act Release No. 51366 

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

(approving SR–CBOE–2004–75). 

7A second exception, also adopted on a pilot 

basis and contained in Rule 8.4(c)(i), permits a 

member or member firm operating as an RMM in 

a class to have one Market-Maker affiliated with the 

RMM organization trading in open outcry in any 

specific class allocated to the RMM, provided such 

Market-Maker trades on a separate membership. 

8See Securities Exchange Act Release No. 53414 

(March 3, 2006), 71 FR 12753 (March 13, 2006) 

(approving SR–CBOE–2006–25). 

9See Securities Exchange Act Release No. 54182 

(July 20, 2006), 71FR 42692 (July 20, 2006) 

(approving SR–CBOE–2006–51). 

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

11 15 U.S.C. 78f(b)(5). 

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–BSE–2007–08 and should 

be submitted on or before April 11, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5115 Filed 3–20–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55474; File No. SRCBOE–

2007–20] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend a Pilot 

Program Relating to Multiple 

Aggregation Units 

March 15, 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 

26, 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 and II below, which Items 

have been substantially 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. 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 for an 

additional year, until March 14, 2008, 

an existing Pilot Program that allows a 

CBOE member or member firm to have 

multiple aggregation units operating as 

separate Market-Makers or Remote 

Market-Makers (‘‘RMMs’’) within the 

same class. 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 extend for an additional 

year, until March 14, 2008, an existing 

Pilot Program that allows a CBOE 

member or member firm to have 

multiple aggregation units operating as 

separate Market-Makers or RMMs 

within the same class, provided they 

satisfy certain criteria set forth in Rule 

8.4(c)(ii)(A)–(C).5

In March 2005, CBOE amended its 

rules to establish a new membership 

status called RMM, who have the ability 

to submit quotes to the CBOE from a 

location outside of the physical trading 

station of the RMM’s appointed class.6

In connection with the adoption of these 

rules, CBOE also adopted provisions in 

its rules relating to RMM affiliation 

limitations. Specifically, CBOE Rule 

8.4(c) provides that except as otherwise 

provided, an RMM may not have an 

appointment as an RMM in any class in 

which it or its member organization 

serves as DPM, e-DPM, RMM, or 

Market-Maker on CBOE. 

One exception that was approved on 

a pilot basis was the ability of a CBOE 

member or member firm to have 

multiple aggregation units operating as 

separate RMMs within the same class, 

provided certain specific criteria were 

complied with.7

In March 2006, the Pilot Program was 

extended for an additional year,8 and is 

also applicable to Market-Makers.9

CBOE believes that the Pilot Program 

has been successful, in that it allows a 

CBOE member or member firm to have 

multiple aggregation units operating as 

separate Market-Makers or RMMs 

within the same class, provided they 

comply with certain specific criteria. 

CBOE has not experienced any negative 

effects with respect to the Pilot Program. 

Thus, CBOE believes it would be 

appropriate and beneficial to extend this 

Pilot Program for an additional year, 

until March 14, 2008. 

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.10 Specifically, the Exchange 

believes the proposed rule change is 

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

Act,11 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 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. 


jlentini on PROD1PC65 with NOTICES