Federal Register / Vol. 72, No. 98 / Tuesday, May 22, 2007 / Notices 28731 

information regarding operation of the 

system including the method of 

operation, access criteria and the types 

of securities traded. Alternative trading 

systems are also required to supply 

updates on Form ATS to the 

Commission, describing material 

changes to the system, and quarterly 

transaction reports on Form ATS–R. 

Alternative trading systems are also 

required to file cessation of operations 

reports on Form ATS. 

Alternative trading systems with 

significant volume are required to 

comply with requirements for fair 

access and systems capacity, integrity 

and security. Under Rule 301, such 

alternative trading systems are required 

to establish standards for granting 

access to trading on its system. In 

addition, upon a decision to deny or 

limit an investor’s access to the system, 

an alternative trading system is required 

to provide notice to the investor of the 

denial or limitation and their right to an 

appeal to the Commission. Regulation 

ATS requires alternative trading systems 

to preserve any records made in the 

process of complying with the systems’

capacity, integrity and security 

requirements. In addition, such 

alternative trading systems are required 

to notify Commission staff of material 

systems outages and significant systems 

changes. 

The Commission uses the information 

provided pursuant to the Rule to 

monitor the growth and development of 

alternative trading systems to confirm 

that investors effecting trades through 

the systems are adequately protected, 

and that the systems do not impede the 

maintenance of fair and orderly 

securities markets or otherwise operate 

in a manner that is inconsistent with the 

federal securities laws. In particular, the 

information collected and reported to 

the Commission by alternative trading 

systems enables the Commission to 

evaluate the operation of alternative 

trading systems with regard to national 

market system goals, and monitor the 

competitive effects of these systems to 

ascertain whether the regulatory 

framework remains appropriate to the 

operation of such systems. Without the 

information provided on Forms ATS 

and ATS–R, the Commission would not 

have readily available information on a 

regular basis in a format that will allow 

it to determine whether such systems 

have adequate safeguards. 

Respondents consist of alternative 

trading systems that choose to register 

as broker-dealers and comply with the 

requirements of Regulation ATS. The 

Commission estimates that there are 

currently approximately 65 

respondents. 

An estimated 65 respondents will file 

an average total of 465 responses per 

year, which corresponds to an estimated 

annual response burden of 1,982.5 

hours. At an average cost per burden 

hour of approximately $95.57, the 

resultant total related cost of 

compliance for these respondents is 

$189,458.15 per year (1,982.5 burden 

hours multiplied by $95.57 per hour; a 

slight discrepancy is due to arithmetic 

rounding). 

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 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. E7–9808 Filed 5–21–07; 8:45 am] 

BILLING CODE 8010–01–P 

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 302, SEC File No. 270–453, OMB 

Control No. 3235–0510. 

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’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

Regulation ATS (17 CFR 242.300 et 

seq.) under the Securities Exchange Act 

of 1934 (15 U.S.C. 78a et seq.) provides 

a regulatory structure that directly 

addresses issues related to alternative 

trading systems’ role in the marketplace. 

Regulation ATS allows alternative 

trading systems to choose between two 

regulatory structures. Alternative 

trading systems have the choice 

between registering as broker-dealers 

and complying with Regulation ATS or 

registering as national securities 

exchanges. Regulation ATS provides the 

regulatory framework for those 

alternative trading systems that choose 

to be regulated as broker-dealers. Rule 

302 of Regulation ATS describes the 

recordkeeping requirements for 

alternative trading systems that are not 

national securities exchanges. Under 

Rule 302, alternative trading systems are 

required to make a record of subscribers 

to the alternative trading system, daily 

summaries of trading in the alternative 

trading system, and time-sequenced 

records of order information in the 

alternative trading system. 

The information required to be 

collected under the Rule should 

increase the abilities of the Commission, 

state securities regulatory authorities, 

and the SROs to ensure that alternative 

trading systems are in compliance with 

Regulation ATS as well as other rules 

and regulations of the Commission and 

the SROs. If the information is not 

collected or is collected less frequently, 

the Commission would be severely 

limited in its ability to comply with its 

statutory obligations, provide for the 

protection of investors and promote the 

maintenance of fair and orderly markets. 

Respondents consist of alternative 

trading systems that choose to register 

as broker-dealers and comply with the 

requirements of Regulation ATS. The 

Commission estimates that there are 

currently approximately 65 

respondents. 

An estimated 65 respondents will 

spend approximately 2,340 hours per 

year (65 respondents at 36 burden 

hours/respondent) to comply with the 

recordkeeping requirements of Rule 302. 

At an average cost per burden hour of 

$86.54, the resultant total related cost of 

compliance for these respondents is 

$202,504.00 per year (2,340 burden 

hours multiplied by $86.54/hour; a 

slight discrepancy is due to arithmetic 

rounding). 

Written comments are invited on (a) 

Whether the proposed collection of 

information is necessary for the proper 


jlentini on PROD1PC65 with NOTICES
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 


jlentini on PROD1PC65 with NOTICES