28732 Federal Register / Vol. 72, No. 98 / Tuesday, May 22, 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)(iii). 

4 17 CFR 240.19b–4(f)(6). 

5See Securities Exchange Act Release Nos. 55161 

(January 24, 2007), 72 FR 4754 (February 1, 2007) 

(order approving SR–ISE–2006–62); 55162 (January 

24, 2007), 72 FR 4738 (February 1, 2007) (order 

approving SR–Amex–2006–106). 

6 Id. 

performance of the functions of the 

agency, including whether the 

information shall have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden of the proposed collection 

of information; (c) ways to enhance the 

quality, utility, and clarity of the 

information 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. 

Comments should be directed 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 within 60 days of this 

notice. 

Dated: May 16, 2007. 

J. Lynn Taylor, 

Assistant Secretary. 

[FR Doc. E7–9809 Filed 5–21–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

FEDERAL REGISTER CITATION OF PREVIOUS

ANNOUNCEMENT: [To be published]. 

STATUS: Closed Meeting. 

PLACE: 100 F Street, NE., Washington, 

DC. 

DATE AND TIME OF PREVIOUSLY ANNOUNCED

MEETING: Thursday, May 17, 2007 at 

9:45 a.m. 

CHANGE IN THE MEETING: Cancellation of 

Meeting. 

The Closed Meeting scheduled for 

Thursday, May 17, 2007 has been 

cancelled. 

For further information please contact 

the Office of the Secretary at (202) 551–

5400. 

Dated: May 17, 2007. 

Nancy M. Morris, 

Secretary. 

[FR Doc. E7–9779 Filed 5–21–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55772; File No. SR–CBOE–

2007–45] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to the 

Implementation of a ‘‘Holdback Timer’’

May 16, 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 May 8, 

2007, the Chicago Board Options 

Exchange, Incorporated (‘‘Exchange’’ or 

‘‘CBOE’’) 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 as a ‘‘non-controversial’’

proposed rule change pursuant to 

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

Rule 19b–4(f)(6) thereunder.4 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 

CBOE Rule 6.23A pertaining to the 

implementation of a ‘‘holdback timer.’’

The text of the proposed rule change is 

available on the Exchange’s Web site 

(http://www.cboe.com), 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 

self-regulatory organization 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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

CBOE proposes to implement an 

additional quote mitigation strategy. 

Specifically, CBOE intends to 

systematically limit the dissemination 

of quotations and other changes to 

CBOE’s best bid and offer (e.g., orders 

that improve CBOE’s best bid and offer) 

according to prescribed time criteria 

(‘‘holdback timer’’). For instance, if 

there is a change in the price of a 

security underlying an option, multiple 

market participants may adjust the price 

or size of their quotes. Rather than 

disseminating each individual change, 

the holdback timer permits CBOE to 

wait until multiple market participants 

have adjusted their quotes and then to 

disseminate a new quotation. This 

mechanism helps to prevent the 

‘‘flickering’’ of quotations. CBOE 

proposes to codify the holdback timer in 

Rule 6.23A. 

CBOE will utilize a holdback timer 

that delays quotation updates to OPRA 

for no longer than one (1) second, and 

will only be used in option classes 

trading on the Hybrid Trading System 

and Hybrid 2.0 Platform. CBOE may 

vary the holdback timer by option class. 

If the holdback timer is not being 

utilized in an option class trading on the 

Hybrid Trading System or Hybrid 2.0 

Platform, CBOE will notify its members. 

CBOE does not intend to disclose the 

length of the holdback timer to its 

members or non-members. CBOE notes 

that the holdback timer addresses the 

dissemination to OPRA of quotation 

updates and other changes to CBOE’s 

best bid and offer, and not the execution 

of orders. 

The Commission recently approved 

the International Securities Exchange’s 

(‘‘ISE’’) and the American Stock 

Exchange’s (‘‘Amex’’) usage of a 

holdback timer as a quote mitigation 

strategy.5 Additionally, and as noted in 

the approval orders codifying the ISE’s 

and Amex’s usage of a holdback timer, 

the Securities Information and Financial 

Markets Association strongly endorsed 

the usage of a holdback timer as a quote 

mitigation strategy.6

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 


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