21058 Federal Register / Vol. 72, No. 81 / Friday April 27, 2007 / Notices 

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)(2). 

5The Exchange’s application processing fee for 

new members is currently $2,000. 

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

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78s(b)(3)(a)(ii). 9 17 CFR 240.19b–4(f)(2). 

Dated: April 23, 2007. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8083 Filed 4–26–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55657; File No. SR–Amex–

2007–37] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change Relating to 

Member Application Processing Fee 

Changes 

April 23, 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 April 16, 

2007, American Stock Exchange LLC 

(‘‘Amex’’ 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 

prepared substantially by the Exchange. 

The Exchange filed the proposed rule 

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

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 

The Exchange proposes to modify its 

Member Fee Schedule to provide for an 

application processing fee for inter-firm 

changes or dual registration of firm 

additions. The text of the proposed rule 

change is available at http:// 

www.amex.com, Amex’s principal 

office, 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, 

Amex 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 does not currently 

charge members for inter-firm changes 

or dual registration firm additions. The 

Exchange believes, however, that the 

processing of this new registration 

status requires additional time, 

resources, and staffing for the 

Exchange’s Membership Department, 

which is equivalent to those used to 

process a new member applicant. The 

Exchange is now proposing to charge a 

minimal processing fee of $250 for a 

current member who elects to change 

firms, or dually register an additional 

firm, in order to cover Exchangeincurred costs, time, and materials 

required to process a member’s new 

registration status.5

2. Statutory Basis 

The Exchange believes that its 

proposed rule change is consistent with 

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

furthers the objectives of Section 6(b)(4) 

of the Act,7 in particular, 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 will 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 

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 

The proposed rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act 8 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder,9 because it establishes or 

changes a due, fee, or other charge 

imposed by Amex. 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 

Number SR–Amex–2007–37 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–2007–37. 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 offices 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 


cprice-sewell on PROD1PC66 with NOTICES
Federal Register / Vol. 72, No. 81 / Friday April 27, 2007 / Notices 21059 

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). 

4 17 CFR 240.19b–4(f)(6). 

5See CBOE Rule 6.51 which rule applies to 

Exchange member reporting duties. 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–Amex–2007–37 and should 

be submitted on or before May 18, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8084 Filed 4–26–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55655; File No. SR–CBOE–

2007–33] 

Self–Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Certain 

Exchange Rules, or Portions Thereof, 

Which Have Been Determined by the 

Exchange to Be Obsolete, Outdated 

and/or Unnecessary 

April 23, 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 April 4, 

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 and II 

below, which Items have been 

substantially prepared by the Exchange. 

The Exchange filed the proposal 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6) thereunder,4

which renders the proposed rule change 

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 

The Exchange proposes to amend 

certain Exchange rules, or portions 

thereof, which have been determined by 

the Exchange to be obsolete, outdated, 

and/or unnecessary. The text of the 

proposed rule change is available on the 

Exchange’s Web site (http:// 

www.cboe.com/Legal), at the Exchange’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. 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 performed a complete 

review of CBOE rules, as well as the 

surveillance procedures thereto, and 

identified a number of CBOE rules, or 

portions thereof, that are outdated, 

obsolete, and/or unnecessary. In 

conjunction with this review, this filing 

proposes to: (i) Delete certain rules that 

are currently obsolete and are no longer 

necessary; and (ii) amend certain rules 

that need to be updated. Specifically, 

the Exchange proposes to delete or 

amend the following CBOE rules: 

Interpretation .01 of CBOE Rule 6.6 

This rule pertains to the procedures 

that are to be followed by the Exchange 

when unusual market conditions exist. 

Specifically, Interpretation .01 details 

the procedures that are to be followed 

in the event there is an automatic 

suspension of the Exchange’s Retail 

Automatic Execution System (‘‘RAES’’) 

in an option class when a news 

announcement pertaining to the 

underlying stock has been announced. 

Pursuant to Interpretation .01, two 

Exchange floor officials are notified 

promptly each time RAES is 

automatically suspended. This filing 

proposes to revise Interpretation .01 to 

clarify that the two Exchange floor 

officials are notified by senior help desk 

personnel. The purpose for this revision 

is to make clear who notifies the floor 

officials when an automatic suspension 

of RAES occurs. 

CBOE Rule 6.58(a) 

CBOE Rule 6.58 pertains to the 

submission of certain trade information 

to the Exchange by its members. 

Specifically, CBOE Rule 6.58(a) outlines 

the manner in which all trade 

information required by CBOE Rule 

6.51 5 is to be submitted to the 

Exchange. Currently, CBOE Rule 6.51 

already provides that all transactions 

shall be submitted to the Exchange ‘‘in 

a form and manner prescribed by the 

Exchange.’’ Since CBOE Rule 6.51 gives 

the Exchange the authority to prescribe 

the way trade information and 

transactions shall be submitted to the 

Exchange, there is no need to repeat this 

in CBOE Rule 6.58(a). Therefore, since 

this language is duplicative with CBOE 

Rule 6.51, this filing proposes to delete 

CBOE Rule 6.58(a). 

CBOE Rule 6.63 

CBOE Rule 6.63 involves the 

reporting of matched trades. 

Specifically, this rule requires the 

Exchange to furnish certain reports 

regarding daily trade information and 

trade settlement to the Clearing 

Corporation each day. Paragraph (b) of 

Rule 6.63 states that trades which are 

not submitted to the Clearing 

Corporation for settlement shall be 

settled in accordance with the rules of 

the Exchange. Currently, all trades that 

are executed on the Exchange are 

submitted to the Clearing Corporation 

for settlement and the Exchange does 

not nor does it plan in the future to 

settle any trades and will continue to 

submit all trades to the Clearing 

Corporation for settlement in 

accordance with Rule 6.63(a). Therefore, 

this filing proposes to delete paragraph 

(b) of Rule 6.63. 

CBOE Rule 8.11 

CBOE Rule 8.11 pertains to certain 

reporting requirements regarding 

transactions for public customers. 

Specifically, this rule requires a member 

organization to file ‘‘such reports as the 

Exchange may require of transactions 

for customers in classes of options 

contracts to which such Market-Maker 

has been appointed.’’ This rule was 

originally implemented in the 1970s 

when the Exchange was first 

implemented and the purpose of the 

rule was to keep the Exchange apprised 

of those firms that were doing both 

market-maker activity and customer 

transactions in the same products. This 

rule was implemented prior to the 

Exchange maintaining electronic files 

on its members and such information is 

now maintained electronically in the 

member organization’s membership 

database. Since such information is 

being maintained electronically, the 

Exchange no longer requires member 

organizations to file such reports. 


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