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Exchange to Be Obsolete, Outdated 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the Exchange to be obsolete, outdated, 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. 


cprice-sewell on PROD1PC66 with NOTICES
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 


cprice-sewell on PROD1PC66 with NOTICES