21060 Federal Register / Vol. 72, No. 81 / Friday April 27, 2007 / Notices 

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

7 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). The Commission notes 

that the Exchange satisfied the pre-filing five-day 

notice requirement. 

10 17 CFR 200.30–3(a)(12). 

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

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

Therefore, this filing proposes to delete 

CBOE Rule 8.11. 

Interpretation .01 of CBOE Rule 15.5 

This rule pertains to financial reports 

that each Exchange member is required 

to submit to the Exchange regarding 

certain financial information that 

pertains to that Exchange member. 

Specifically, Interpretation .01 states 

that an Exchange Market-Maker must 

submit to the Exchange a monthly 

report of the use of his/her credit under 

Section 220.4(g) of Regulation T of the 

Board of Governors of the Federal 

Reserve System (‘‘Regulation T’’). Since 

Section 220.4(g) was removed from 

Regulation T and therefore is no longer 

effective, this filing proposes to delete 

this interpretation since the underlying 

requirement from which it derived from 

no longer exists. 

Interpretation .03 of Rule 15.5 

This filing proposes to add an 

interpretation to Rule 15.5 that pertains 

to annual FOCUS filers to clarify how 

certain FOCUS filers may file their 

annual FOCUS report with the 

Exchange. Specifically, Interpretation 

.03 proposes to clarify that an Exchange 

member who files an annual FOCUS 

report and who is not net capital 

computing has the option to file the 

annual FOCUS report by (i) sending a 

hard copy to the Exchange’s Department 

of Member Firm Regulation (‘‘DMFR’’) 

or (ii) filing it electronically with DMFR. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

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

furthers the objectives of Section 6(b)(5) 

of the Act,7 in particular, in that in that 

it should promote just and equitable 

principles of trade, serve 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 believes that 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 

Because the foregoing proposed rule 

change does not: 

(i) Significantly affect the protection 

of investors or the public interest; 

(ii) Impose any significant burden on 

competition; and 

(iii) Become operative for 30 days 

from the date on which it was filed, or 

such shorter time as the Commission 

may designate if consistent with the 

protection of investors and the public 

interest, it has become effective 

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

Act,8 and Rule 19b–4(f)(6) thereunder.9

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

Number SR–CBOE–2007–33 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–2007–33. 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 will also be 

available for inspection and copying at 

the principal office of the Exchange. 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–2007–33 and should be 

submitted by 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. E7–8056 Filed 4–26–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55652; File No. SR–

NASDAQ–2007–021] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market, LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule To Describe How a 

Failure To Comply With Nasdaq’s 

Requirements Concerning Direct 

Registration Programs Is Treated 

April 20, 2007. 

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

Securities Exchange Act of 1934 

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

March 6, 2007, The NASDAQ Stock 

Market, LLC (‘‘Nasdaq’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change described in Items I, II, and III 

below, which items have been prepared 

primarily by Nasdaq. Nasdaq filed the 

proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) of the Act 2 and 


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Federal Register / Vol. 72, No. 81 / Friday April 27, 2007 / Notices 21061 

3 17 CFR 240.19b–4(f)(6). 

4Nasdaq gave the Commission written notice of 

its intention to file the proposed rule change on 

March 2, 2007. The Commission reviewed the 

proposed rule change and gave Nasdaq permission 

to file the proposed rule change on March 6, 2007. 

Nasdaq has asked the Commission to waive the 30- 

day pre-operative waiting period. See Rule 19b–

4(f)(6). 17 CFR 240.19b–4(f)(6). 

5The Commission has modified the text of the 

summaries prepared by Nasdaq. 

6Securities Exchange Act Release No. 54288 

(August 8, 2006), 71 FR 47276 (August 16, 2006) 

(SR–NASDAQ–2006–008). These rules became 

effective for new listings beginning on January 1, 

2007, and will become effective for all companies 

on January 1, 2008. 

7Nasdaq Rule 4803(b). 

8 15 U.S.C. 78f. 

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). 

12 17 CFR 240.19b–4(f)(6)(iii). 

13For purposes only of waiving the thirty-day 

operative delay of this proposal, the Commission 

has considered the proposed rule’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 

Rule 19b–4(f)(6) 3 thereunder so that the 

proposal was effective upon filing with 

the Commission.4 The Commission is 

publishing this notice to solicit 

comments on the rule change from 

interested parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The purpose of the rule change is to 

describe how a failure to comply with 

Nasdaq’s requirements concerning 

direct registration programs is to be 

treated. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

Nasdaq 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. Nasdaq has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements.5

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Nasdaq recently adopted a 

requirement that listed securities be 

eligible to participate in a direct 

registration program.6 In that filing, 

Nasdaq inadvertently failed to modify 

its procedural rules to govern how a 

failure to comply with the new 

requirement would be treated. This 

filing addresses that oversight by 

including the direct registration 

requirement in the list of deficiencies 

where Nasdaq staff will accept a plan to 

regain compliance for the company. As 

such, if a company is not eligible for a 

direct registration program, Nasdaq staff 

would review the company’s plan to 

regain compliance and could allow to 

company up to 105 days from the date 

that Nasdaq notifies the company of the 

deficiency to regain compliance.7 If staff 

does not accept the company’s plan or 

the company does not comply in the 

time allowed by the staff, Nasdaq would 

issue a delisting letter that could be 

appealed under Nasdaq Rule 4805(a). 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act 8 and 

with Section 6(b)(5) of the Act 9 in 

particular because the proposed rule is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, 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. The proposed rule 

change clarifies how Nasdaq will treat 

non-compliance with its rules. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

Nasdaq does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change 

has become effective upon filing 

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

the Act 10 and Rule 19b–4(f)(6) 11

thereunder because it: (i) Does not 

significantly affect the protection of 

investors or the public interest; (ii) does 

not impose any significant burden on 

competition; and (iii) by its terms, does 

not become operative for 30 days after 

the date of filing or such shorter time as 

the Commission may designate if 

consistent with the protection of 

investors and the public interest. 

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. 

Nasdaq requested that the 

Commission waive the thirty-day 

operative delay contained in Rule 19b–

4(f)(6)(iii) under the Act.12 Because this 

proposed rule rectifies an oversight to 

update Nasdaq procedural rules to 

govern how a failure to comply with a 

new substantive requirement would be 

treated, the Commission believes waiver 

of the thirty-day operative delay is 

consistent with the protection of 

investors and the public interest. 

Accordingly, the Commission 

designated the proposal to be effective 

and operative upon filing with the 

Commission.13

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–NASDAQ–2007–021 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–NASDAQ–2007–021. 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 


cprice-sewell on PROD1PC66 with NOTICES
21062 Federal Register / Vol. 72, No. 81 / Friday April 27, 2007 / Notices 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 55345 

(February 26, 2007), 72 FR 9816. 

4See Securities Exchange Act Release No. 54998 

(December 21, 2006), 71 FR 78496 (December 29, 

2006) (SR–NYSE–2006–98). 

5E-mail communication between Leah Mesfin, 

Special Counsel, Division of Market Regulation, 

Commission, and Janet Kissane, Vice President and 

Associate General Counsel, NYSE, on April 13, 

2007. 

6 Id. 

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

8 In approving this proposed rule change, the 

Commission notes that it has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

9 15 U.S.C. 78s(b)(2). 

10 17 CFR 200.30–3(a)(12); 17 CFR 200.30–

3(a)(44). 

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

2The Commission has modified parts of these 

statements. 

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 filings also 

will be available for inspection and 

copying at the principal office of Nasdaq 

and on Nasdaq’s Web site at http:// 

www.complinet.com/file_store/pdf/ 

rulebooks/NASDAQ_SR–NASDAQ–

2007–021.pdf. 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–

NASDAQ–2007–021 and should be 

submitted on or before May 18, 2007. 

For the Commission by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8055 Filed 4–26–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55656; File No. SR–NYSE–

2007–15] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Order 

Approving Proposed Rule Change 

Regarding the Amendment of NYSE 

Rule 300 Relating to Trading Licenses 

April 23, 2007. 

On February 13, 2007, the New York 

Stock Exchange LLC (‘‘NYSE’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder, 2 a proposed rule change to 

amend NYSE Rule 300 relating to 

trading licenses to charge a premium of 

$5,000, for a total annualized rate of 

$55,000, for those trading licenses 

purchased after the annual application 

period. The proposed rule change was 

published for comment in the Federal 

Register on March 5, 2007.3 The 

Commission received no comments 

regarding the proposal. 

The Exchange previously required the 

payment of a 10% premium to 

encourage participation in its ‘‘Dutch’’

auction method of allocating trading 

licenses, but recently eliminated this 

premium when it adopted a fixed 

$50,000 annual fee for each trading 

license.4 The Exchange believes that the 

10% premium for licenses purchased 

after the annual application period will 

provide the Exchange with greater 

predictability regarding the number of 

trading licenses issued. The Exchange 

represents that this predictability not 

only facilitates business planning and 

administration by member organizations 

and the NYSE, but also reduces both 

business and regulatory systems 

changes to reflect fluctuations in trading 

licenses issued. The Exchange confirms 

that, during the December 2006 trading 

license application period, it notified its 

members of its intent to submit a rule 

filing to apply the proposed premium 

for trading licenses purchased after the 

application period.5 The Exchange also 

confirms that the premium will only be 

effective for trading licenses purchased 

after the approval of this proposed rule 

change.6

The Commission finds that the 

proposed rule change is consistent with 

the Act, and particularly with Section 

6(b)(4) 7 of the Act, which requires that 

an exchange have rules that provide for 

the equitable allocation of reasonable 

dues, fees, and other charges among its 

members and issuers and other persons 

using its facilities.8 The Commission 

believes that the Exchange’s proposed 

10% premium for trading licenses 

purchased after the annual application 

period is reasonable and should help 

facilitate the Exchange’s administration 

of trading licenses and member 

organizations’ business planning with 

respect to the issuance of trading 

licenses. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,9 that the 

proposed rule change (SR–NYSE–2007–

15) be, and hereby is, approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8097 Filed 4–26–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55653; File No. SR–OCC–

2006–09] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing of a Proposed Rule Change 

Relating to Choice of Law and Forum 

Selection 

April 20, 2007. 

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

Securities Exchange Act of 1934 

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

May 22, 2006, The Options Clearing 

Corporation (‘‘OCC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) and on December 12, 

2006, amended the proposed rule 

change as described in Items I, II, and 

III below, which items have been 

prepared primarily by OCC. 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 proposed rule change would 

provide for the addition of new general 

choice of law and forum selection 

provisions to OCC’s By-Laws. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

OCC 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. OCC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of such statements.2


cprice-sewell on PROD1PC66 with NOTICES