Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices 13337 

28 15 U.S.C. 78k–1(a)(1)(C)(iii). 

29See Amex Order, supra note 4. 

30 15 U.S.C. 78s(b)(2). 

31 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(7). 

2 17 CFR 240.19b–7. 3 7 U.S.C. 7a–2(c). 

The Commission further believes that 

the proposal is consistent with Section 

11A(a)(1)(C)(iii) of the Act,28 which sets 

forth Congress’ finding that it is in the 

public interest and appropriate for the 

protection of investors and the 

maintenance of fair and orderly markets 

to assure the availability to brokers, 

dealers, and investors of information 

with respect to quotations for and 

transactions in securities. 

Finally, the Commission notes that, if 

the Shares should be delisted by the 

Amex, the original listing exchange, the 

Exchange would no longer have 

authority to trade the Shares pursuant to 

this order. 

In support of this proposal, the 

Exchange has made the following 

representations: 

1. The Exchange has appropriate rules 

to facilitate transactions in this type of 

security in the core and evening trading 

sessions. 

2. The Exchange’s surveillance 

procedures are adequate to properly 

monitor the trading of the Shares on the 

Exchange. In particular, the Exchange 

has in place an Information Sharing 

Agreement with ICE, LME, and NYMEX, 

for the purpose of providing information 

in connection with trading in or related 

to futures contracts traded on their 

respective exchanges comprising the 

Indexes. Further, the Exchange is a 

member of the ISG. In addition, to 

facilitate surveillance, the Exchange 

represents that trading in the Shares 

will be subject to Commentary .02(e)(1)–

(4) to NYSE Arca Equities Rule 8.200. 

3. The Exchange will inform its ETP 

Holders in an Information Bulletin of 

the special characteristics and risks 

associated with trading the Shares. 

4. The Exchange will require its ETP 

Holders to deliver a prospectus to 

investors purchasing newly issued 

Shares prior to or concurrently with the 

confirmation of a transaction and will 

note this prospectus delivery 

requirement in the Information Bulletin. 

5. The Exchange will cease trading the 

Shares of a Fund if: (a) The listing 

market stops trading the Shares because 

of a regulatory halt similar to a halt 

based on NYSE Arca Equities Rule 7.12 

or a halt because the IFV or the value 

of the applicable Underlying Index is no 

longer available at least every 15 

seconds; or (b) the listing market delists 

the Shares. 

6. The Exchange will halt trading as 

provided in NYSE Arca Equities Rule 

7.34. 

This approval order is conditioned on 

the Exchange’s adherence to these 

representations. 

The Commission finds good cause for 

approving this proposal before the 

thirtieth day after the publication of 

notice thereof in the Federal Register. 

As noted previously, the Commission 

previously found that the listing and 

trading of the Shares on the Amex is 

consistent with the Act.29 The 

Commission presently is not aware of 

any regulatory issue that should cause it 

to revisit that earlier finding or preclude 

the trading of the Shares on the 

Exchange pursuant to UTP. Therefore, 

accelerating approval of this proposal 

should benefit investors by creating, 

without undue delay, additional 

competition in the market for the 

Shares. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,30 that the 

proposed rule change (SR–NYSEArca–

2006–62), as modified by Amendment 

Nos. 1 and 2, be, and it hereby is, 

approved on an accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.31

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5085 Filed 3–20–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55475; File No. SR–OC–

2007–02] 

Self-Regulatory Organizations; 

OneChicago, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Relating to Block Trades 

March 15, 2007. 

Pursuant to Section 19(b)(7) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–7 under the 

Act,2 notice is hereby given that on 

February 5, 2007, OneChicago, LLC 

(‘‘OneChicago’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change described in Items 

I, II, and III below, which Items have 

been substantially prepared by the 

Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. OneChicago 

has also filed the proposed rule change 

with the Commodity Futures Trading 

Commission (‘‘CFTC’’). 

OneChicago filed a written 

certification with the CFTC under 

Section 5c(c) of the Commodity 

Exchange Act 3 on February 2, 2007. 

I. Self-Regulatory Organization’s 

Description of the Proposed Rule 

Change 

OneChicago is proposing to amend its 

policy regarding block trades, the text of 

which is available at the Exchange and 

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 

OneChicago is proposing to amend its 

Policies: Block Trades, Pre-Execution 

Discussions and Cross Trades (‘‘Block 

Trade Policy’’) relating to the block 

trade minimum contracts size. In 

addition to the current minimum 

contract size of 100 contracts for block 

trades, the proposed rule change would 

permit a minimum block trade contract 

size that is the equivalent to 10,000 

shares of the underlying security for 

futures on single security (or combined 

securities if a relevant corporate event 

has occurred). 

Based on its experience, the Exchange 

believes the proposed rule change 

would permit an appropriate minimum 

contract size for block trades. The 

proposed rule change would set a 

minimum contract size for block trades 

that is equivalent to the customary size 

of large transactions in relevant markets, 

i.e., the securities market. The proposed 

rule change would also permit a block 

trade size based on combined securities 

if a relevant corporate event has 

occurred. Combined securities would be 

relevant with certain corporate events, 

such as spin offs or three for two splits. 


jlentini on PROD1PC65 with NOTICES
13338 Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices 

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

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

6 15 U.S.C. 78s(b)(7). 

7 15 U.S.C. 78s(b)(1). 

8 17 CFR 200.30–3(a)(73). 

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. 78s(b)(1). 

6 17 CFR 240.19b–4. 

7Russell 2000 is a trademark and service mark 

of the Frank Russell Company, used under license. 

Neither Frank Russell Company’s publication of the 

Russell Indexes nor its licensing of its trademarks 

for use in connection with securities or other 

For example, the Exchange has a March 

2007 ABCD futures contract, which has 

a trading unit of 100 shares of ABCD. 

ABCD announces a spin-off in which an 

entity PQRS has been created and the 

spin-off ratio is one share of PQRS for 

every 10 shares of ABCD. The spin-off 

will occur (‘‘the Ex date’’) before the 

expiration of the March 2007 ABCD 

futures contract. After the Ex date, the 

trading unit or deliverable shares for the 

March 2007 ABCD futures contracts 

would be 100 shares of ABCD and 10 

shares of PQRS. The minimum block 

trade size for the March 2007 ABCD 

futures contract after the Ex date would 

be 91. Another example would be when 

a corporate event results in a three for 

two split of shares. In that case, the 

trading unit or deliverable shares would 

be 150 (provided the trading unit for the 

futures contract was 100 shares), making 

the minimum block trade size 67 

contracts. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 4 in general and 

Section 6(b)(5) of the Act 5 in particular 

in that it is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, and, in general, to 

protect investors and the public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

OneChicago 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 

Comments on the proposed rule 

change have not been solicited and none 

have been received. 

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)(7) of the Act.6 Within 60 

days of the date of effectiveness of the 

proposed rule change, the Commission, 

after consultation with the CFTC, may 

summarily abrogate the proposed rule 

change and require that the proposed 

rule change be refiled in accordance 

with the provisions of Section 19(b)(1) 

of the Act.7

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–OC–2007–02 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–OC–2007–02. 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 such filing also will be 

available for inspection and copying at 

the principal office of OneChicago. 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–OC–2007–02 and should be 

submitted on or before April 11, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5114 Filed 3–20–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55473; File No. SR–Phlx–

2007–12] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change and Amendment No. 1 Thereto 

Relating to Fees for Full Value Russell 

Index and Reduced Value Russell 

Index 

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 

16, 2007, the Philadelphia Stock 

Exchange, Inc. (‘‘Phlx’’ 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 8, 2007, the Phlx 

submitted Amendment No. 1 to the 

proposed rule change. The Phlx has 

designated this proposal as one 

changing a due, fee, or other charge 

under 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, as amended, from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Phlx, pursuant to Section 19(b)(1) 

of the Act 5 and Rule 19b–4 thereunder,6

proposes to assess equity option 

charges, as opposed to index option 

charges on: (1) Options on the Russell 

2000 Index 7 traded under the symbol 


jlentini on PROD1PC65 with NOTICES