26186 Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 51062 

(January 21, 2005) 70 FR 4163 (January 28, 2005). 

4See Securities Exchange Act Release Nos. 49747 

(May 20, 2004), 69 FR 30344, 30347 (May 27, 2004) 

(approving implementation of the ANTE system, 

SECURITIES AND EXCHANGE 

COMMISSION 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of Filings and 

Information Services, Washington, DC 

20549 

Extension: 

Rule 19h–1, SEC File No. 270–247, OMB 

Control No. 3235–0259. 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.) the Securities 

and Exchange Commission 

(‘‘Commission’’) intends to submit to 

the Office of Management and Budget a 

request for extension of the previously 

approved collection of information 

discussed below. 

• Rule 19h–1 (17 CFR 240.19h–1): 

SRO notification of admission and/or 

continuance despite statutory 

disqualification. 

Rule 19h–1 (‘‘Rule’’) under the 

Securities Exchange Act of 1934 (17 

U.S.C. 78a et seq.) prescribes the form 

and content of notices and applications 

by self-regulatory organizations 

(‘‘SROs’’) regarding proposed 

admissions to, or continuances in, 

membership, participation or 

association with a member of any 

person subject to a statutory 

disqualification. 

The Commission uses the information 

provided in the submissions filed 

pursuant to Rule 19h–1 to review 

decisions by SROs to permit the entry 

into or continuance in the securities 

business of persons who have 

committed serious misconduct. The 

filings submitted pursuant to the Rule 

also permit inclusion of an application 

to the Commission for consent to 

associate with a member of an SRO 

notwithstanding a Commission order 

barring such association. 

The Commission reviews filings made 

pursuant to the Rule to ascertain 

whether it is in the public interest to 

permit the employment in the securities 

business of persons subject to statutory 

disqualification. The filings contain 

information that is essential to the staff’s 

review and ultimate determination on 

whether an association or employment 

is in the public interest and consistent 

with investor protection. 

It is estimated that approximately 5 

respondents will make submissions 

pursuant to this rule annually and that 

they each will make 5 responses, for a 

total burden of 200 hours, based upon 

past submissions (25 × 8 = 200). The 

staff estimates that the average number 

of hours necessary to complete a 

submission pursuant to Rule 19h–1 is 8 

hours. The average cost per hour for 

completion of a submission is 

approximately $101. Therefore, the total 

cost of compliance for the respondents 

is $20,200. (25 responses × 8 hours per 

response × $101 per hour). 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information shall have practical utility; 

(b) the accuracy of the agency’s 

estimates of the burden of the proposed 

collection of information; (c) ways to 

enhance the quality, utility and clarity 

of the information to be collected; and 

(d) ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

Consideration will be given to 

comments and suggestions submitted in 

writing within 60 days of this 

publication. 

Direct your written comments to R. 

Corey Booth, Director/Chief Information 

Officer, Securities and Exchange 

Commission, c/o Shirley Martinson, 

6432 General Green Way, Alexandria, 

VA 22312 or send an e-mail to: 

PRA_Mailbox@sec.gov. Comments must 

be submitted to OMB within 60 days of 

this notice. 

Dated: April 30, 2007. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8737 Filed 5–7–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55685; File No. SR–Amex–

2007–41] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Notice 

of Filing and Order Granting 

Accelerated Approval of a Proposed 

Rule Change Relating to the 

Continuation of a Quote Assist Feature 

in the ANTE System on a Pilot Program 

Basis 

April 30, 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 24, 

2006, the American Stock Exchange LLC 

(‘‘Amex’’ 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 Commission is publishing this 

notice and order to solicit comments on 

the proposed rule change from 

interested persons and to grant 

accelerated approval to the proposed 

rule change. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Amex Rule 958A—ANTE (e) (the 

‘‘Rule’’) to extend until April 30, 2008, 

its pilot program implementing a quoteassist feature in the Exchange’s ANTE 

system (‘‘Pilot Program’’). The text of 

the proposed rule change is available at 

the Exchange, the Commission’s Public 

Reference Room and (http:// 

www.amex.com/). 

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 III below. Amex 

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 Rule currently requires all option 

specialists to execute or display 

customer limit orders that improve the 

bid or offer by price or size immediately 

upon receipt, unless one of the 

exceptions set forth in the Rule applies. 

‘‘Immediately upon receipt’’ is defined 

in the Rule ‘‘as soon as practicable 

which shall mean, under normal market 

conditions, no later than 30 seconds 

after receipt’’.3

In order to assist the specialists in 

complying with the Rule as described 

above, the ANTE System provides 

specialists with an automated quote 

assist feature on a pilot program basis.4


cprice-sewell on PROD1PC66 with NOTICES
Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Notices 26187 

including the quote assist feature on a pilot basis); 

51955 (June 30, 2005), 70 FR 39812 (July 11, 2005) 

(extending the Pilot Program until April 30, 2006); 

and 53950 (June 6, 2006) 71 FR 34401 (June 14, 

2006) (extending the Pilot Program until April 30, 

2007). 

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

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

The quote assist feature automatically 

displays eligible limit orders within a 

configurable time that can be set on a 

class-by-class basis by the Exchange. 

The time frame within which limit 

orders must be addressed, a maximum 

of 30 seconds under the Rule, may be 

set to a shorter time period by the 

Exchange. The specialist maintaining 

the quote assist feature may then use the 

feature to automatically display orders 

within a shorter time period than the 

time period set by the Exchange. 

While all customer limit orders are 

expected to be displayed immediately, 

the quote assist feature can be set to 

automatically display limit orders at or 

close to the end of the 30-second time 

frame or within any other shorter time 

frame established by the Exchange. In 

instances where the specialist has not 

addressed the order within the 

applicable 30-second period, the quote 

assist feature will automatically display 

the eligible customer limit order in the 

limit order book at or close to the end 

of that period. The quote assist feature 

helps to ensure that eligible customer 

limit orders are displayed within the 

required time period then in effect. Rule 

958A—ANTE (e)(4) currently requires 

the specialist to maintain and keep 

active the limit order quote assist 

feature. The specialist may establish the 

time frame within which the quote 

assist feature displays eligible customer 

limit orders, which time frame does not 

exceed the customer limit order display 

requirement set forth in the Rule. The 

specialist may deactivate the quote 

assist feature provided Floor Official 

approval is obtained. The specialist 

must obtain Floor Official approval as 

soon as practicable but in no event later 

than three minutes after deactivation. If 

the specialist does not receive approval 

within three minutes after deactivation, 

the Exchange will review the matter as 

a regulatory issue. Floor Officials will 

grant approval only in instances when 

there is an unusual influx of orders or 

movement of the underlying that would 

result in gap pricing or other unusual 

circumstances. The Exchange will 

document all instances where a Floor 

Official has granted approval. 

The Exchange notes that the quote 

assist feature does not relieve the 

specialists of their obligation to display 

customer limit orders immediately. To 

the extent that a specialist excessively 

relies on the quote assist feature to 

display eligible limit orders without 

attempting to address the orders 

immediately, the specialist could be 

violating the Rule. However, brief or 

intermittent reliance on the quote assist 

feature by a specialist during an 

unexpected surge in trading activity in 

an option class would not violate the 

Rule if used when the specialist is not 

physically able to address all the 

eligible limit orders within 30 seconds. 

The Exchange has issued a regulatory 

notice discussing excessive reliance on 

the quote assist feature. 

The Exchange will continue to 

conduct surveillance to ensure that 

specialists comply with their obligation 

to execute or book all eligible limit 

orders within the time period prescribed 

by Exchange rules. The Exchange 

commits to conduct surveillance 

designed to detect whether specialists as 

a matter of course rely on the quoteassist feature to display all eligible limit 

orders. A practice of excessive reliance 

upon the quote assist feature will be 

reviewed by the Division of Regulation 

and Compliance as a possible violation 

of the Rule. The Exchange runs its limit 

order display exception report at 

various display intervals in an attempt 

to detect a pattern suggestive of undue 

reliance on the quote assist feature. The 

Exchange reports to the Commission 

every three months the statistical data it 

uses to determine whether there has 

been impermissible reliance on the 

quote assist feature by specialists. 

The Exchange now proposes to 

continue the quote assist feature on a 

pilot program basis from April 30, 2007 

until April 30, 2008. 

2. Statutory Basis 

The proposed rule change is 

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

in general, and furthers the objectives of 

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

in that it is designed to prevent 

fraudulent and manipulative acts and 

practices and to promote just and 

equitable principles of trade. 

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. 

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. 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–2007–41 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–2007–41. 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 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–Amex–2007–41 and should 

be submitted on or before May 29, 2007. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of the 

Proposed Rule Change 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 


cprice-sewell on PROD1PC66 with NOTICES
26188 Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Notices 

7 In approving the proposed rule, the Commission 

has considered the rule’s impact on efficiency, 

competition and capital formation. See 15 U.S.C. 

78c(f). 

8 15 U.S.C. 78f(b)(5). 

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

10 15 U.S.C. 78s(b)(2). 

11 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). 

5BSE implemented the Pilot Program in February 

2004 and extended it three times through June 5, 

2007. See Securities Exchange Act Release Nos. 

49292 (February 20, 2004), 69 FR 8993 (February 

26, 2004) (SR–BSE–2004–01) (establishing the Pilot 

Program); 49806 (June 4, 2004), 69 FR 32640 (June 

10, 2004) (SR–BSE–2004–22); 51778 (June 2, 2005), 

70 FR 33562 (June 8, 2005) (SR–BSE–2005–18); and 

53855 (May 24, 2006), 71 FR 30973 (May 31, 2006) 

(SR–BSE–2006–19). 

exchange.7 In particular, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of Section 6(b)(5) of the 

Act,8 which requires, among other 

things, that the rules of the Exchange be 

designed 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. 

The Commission believes that the 

quote assist feature should help to 

ensure that eligible customer limit 

orders are displayed within the required 

time period. The Commission notes that 

the Exchange represents that it will 

continue to conduct surveillance to 

ensure that specialists comply with 

their obligation to execute or book all 

eligible limit orders within the time 

period prescribed by Exchange rules, 

and that excessive reliance upon the 

quote assist feature will be reviewed by 

the Exchange as a possible violation of 

the Rule. 

The Exchange has requested that the 

Commission approve the proposed rule 

change prior to the thirtieth day after 

publication of notice of the filing in the 

Federal Register. The Commission 

believes that granting accelerated 

approval will allow the Exchange to 

continue to operate the Pilot Program 

without interruption. Accordingly, the 

Commission finds good cause, pursuant 

to Section 19(b)(2) of the Act,9 for 

approving the proposal prior to the 

thirtieth day after publication of the 

notice of the filing thereof in the 

Federal Register. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,10 that the 

proposed rule change (SR–Amex–2007–

41) is hereby approved on an 

accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8734 Filed 5–7–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55684; File No. SR–BSE–

2007–17] 

Self-Regulatory Organizations; Boston 

Stock Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Extend the 

$1 Strike Pilot Program for an 

Additional Year 

April 30, 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 25, 

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 BSE. The 

Exchange has filed the proposal as a 

‘‘non-controversial’’ rule change 

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

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

which renders it 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 its 

rules to extend its $1 strike pilot 

program (‘‘Pilot Program’’) for an 

additional year until June 5, 2008. The 

text of the proposed rule change is 

available at BSE, the Commission’s 

Public Reference Room, and http:// 

www.bostonstock.com. 

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 purpose of the proposed rule 

change is to extend the Pilot Program 5

under the Rules of the Boston Options 

Exchange (‘‘BOX’’) for an additional 

year. The Pilot Program allows the 

Boston Options Exchange Regulation 

(‘‘BOXR’’), the department of BSE with 

the delegated regulatory authority over 

BOX, to list options on a pilot basis on 

up to five selected underlying equities 

trading below $20 at $1 strike price 

intervals and to list $1 strike prices on 

any equity option included in the $1 

strike price pilot program of any other 

options exchange until June 5, 2007. 

The proposed rule change retains the 

text of Supplementary Material .02 to 

Section 6 of Chapter IV of the BOX 

Rules, as currently established on a pilot 

basis, and seeks to extend the operation 

of the Pilot Program for another year 

until June 5, 2008. 

Chapter IV, Section 6 of the BOX 

Rules establishes guidelines regarding 

the addition of options series for trading 

on BOX. Under the Pilot Program, in 

order to be eligible for selection into the 

Pilot Program, the underlying stock 

must close below $20 on its primary 

market on the previous trading day. If 

selected for the Pilot Program, BOXR 

may list strike prices at $1 intervals 

from $3 to $20, but no $1 strike price 

may be listed that is greater than $5 

from the underlying stock’s closing 

price on its primary market on the 

previous day. BOXR also may list $1 

strikes on any other options class 

designated by another options exchange 

that employs a similar pilot program 

under its rules. BOXR may not list longterm option series (‘‘LEAPS’’) at $1 

strike price intervals for any class 

selected for the Pilot Program. BOXR 

also is restricted from listing any series 

that would result in strike prices being 

$0.50 apart. 

The Pilot Program was initially 

proposed in reaction to the general 

decrease in stock prices and the 

proliferation of stocks trading below 

$20, including some of the most widely 

held and actively traded equity 

securities listed on the New York Stock 


cprice-sewell on PROD1PC66 with NOTICES