Federal Register / Vol. 72, No. 32 / Friday, February 16, 2007 / Notices 7697 

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)(2). 

5The QQQQs and IWM have been selected to 

participate in the Penny Pilot Program. However, 

the marketing fee currently does not apply to these 

classes. 

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

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

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

9 17 CFR 240.19b–4(f)(2). 

10For purposes of calculating the 60-day period 

within which the Commission may summarily 

abrogate the proposed rule change, the Commission 

considers the period to commence on February 6, 

2007, the date on which the Exchange filed 

Amendment No. 1. 

VA 22312; or send an e-mail to: 

PRA_Mailbox@sec.gov. Comments must 

be submitted to OMB within 30 days of 

this notice. 

Dated: February 6, 2007. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–2722 Filed 2–15–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55265; File No. SR–CBOE–

2007–11] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change as Modified by 

Amendment No. 1 Thereto Relating to 

Its Marketing Fee Program 

February 9, 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 January 

31, 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, II, and 

III below, which Items have been 

substantially prepared by the Exchange. 

On February 6, 2007, the CBOE 

submitted Amendment No. 1 to the 

proposed rule change. CBOE has 

designated this proposal as one 

establishing or changing a due, fee, or 

other charge imposed by CBOE under 

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

Rule 19b–4(f)(2) thereunder,4 which 

renders the proposal effective upon 

filing with the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change, as amended, from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The CBOE proposes to amend its 

Marketing Fee Program. The text of the 

proposed rule change is available at the 

Exchange, the Commission’s Public 

Reference Room, and http:// 

www.cboe.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 IV below. CBOE 

has substantially 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 

CBOE proposes to amend its 

Marketing Fee Program as it relates to 

option classes participating in the 

Penny Pilot Program, which 

commenced on January 26, 2007. 

Currently, 13 option classes are 

scheduled to participate in the Penny 

Pilot Program: Whole Foods (WFMI), 

General Electric (GE), Microsoft (MSFT), 

Ishares Russell 2000 (IWM), Nasdaq-100 

Index Tracking StockSM (QQQQ), 

SemiConductor Holders (SMH), 

Advanced Micro Devices (AMD), Intel 

(INTC), Caterpiller (CAT), Texas 

Instruments (TXN), Flextronics 

International (FLEX), Sun Micro 

(SUNW), and Agilent Tech, Inc. (A). 

With respect to the option classes 

participating in the Penny Pilot Program 

in which the marketing fee currently is 

assessed,5 the marketing fee will be 

assessed at the rate of $.25 per contract, 

instead of $.65 per contract. CBOE 

proposes to implement this change to 

the marketing fee beginning on February 

1, 2007. 

CBOE is not amending its marketing 

fee program in any other respects. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act6 in general, and 

Section 6(b)(4) of the Act7 in particular, 

in that it is designed to provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among CBOE 

members and other persons using its 

facilities. 

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 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 

The foregoing proposed rule change 

has been designated as a fee change 

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

Act8 and Rule 19b–4(f)(2)9 thereunder, 

because it establishes or changes a due, 

fee, or other charge imposed by the 

Exchange. Accordingly, the proposal 

will take effect upon filing with the 

Commission. At any time within 60 

days of the filing of such 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.10

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–CBOE–2007–11 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. 


sroberts on PROD1PC70 with NOTICES
7698 Federal Register / Vol. 72, No. 32 / Friday, February 16, 2007 / Notices 

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). 

5The Pilot Program was approved by the 

Commission on February23, 2005. See Securities 

Exchange Act Release No. 51244 (February 23, 

2005), 70 FR 10010 (March 1, 2005) (SR–CBOE–

2003–30) (‘‘Pilot Program Order’’). The Pilot 

Program has been extended three times and is due 

to expire on March 1, 2007. See Securities Exchange 

Act Release Nos. 52262 (August 15, 2005), 70 FR 

48995 (August 22, 2005) (SR–CBOE–2005–61); 

53348 (February 22, 2006), 71 FR 10574 (March 1, 

2006) (SR–CBOE–2006–11); and 54336 (August 18, 

2006), 71 FR 50952 (August 28, 2006) (SR–CBOE–

2006–69). 

6Except when the Pilot Program is in effect. 

All submissions should refer to File 

Number SR–CBOE–2007–11. 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 CBOE. 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–2007–11 and should 

be submitted on or before March 9, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 07–722 Filed 2–15–07; 8:45 am] 

BILLING CODE 8010–01–M 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55266; File No. SR–CBOE–

2007–12] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to the Extension 

of a Pilot Program that Increases the 

Standard Position and Exercise Limits 

for Certain Options Traded on the 

Exchange 

February 9, 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 February 

6, 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 prepared 

by CBOE. 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 

CBOE proposes to extend an existing 

pilot program that increases the 

standard position and exercise limits for 

certain options traded on the Exchange 

(‘‘Pilot Program’’). The text of the 

proposed rule change is available at 

CBOE, the Commission’s Public 

Reference Room, and http:// 

www.cboe.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, 

CBOE 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. 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 Pilot Program, as previously 

approved by the Commission, provides 

for an increase to the standard position 

and exercise limits for equity option 

contracts and for options on QQQQs for 

a six-month period.5 Specifically, the 

Pilot Program increased the applicable 

position and exercise limits for equity 

options and options on the QQQQ in 

accordance with the following levels: 

Current equity option contract limit 6 Pilot program equity option contract limit 

13,500 contracts ....................................................................................... 25,000 contracts. 

22,500 contracts ....................................................................................... 50,000 contracts. 

31,500 contracts ....................................................................................... 75,000 contracts. 

60,000 contracts ....................................................................................... 200,000 contracts. 

75,000 contracts ....................................................................................... 250,000 contracts. 

Current QQQQ option contract limit Pilot program QQQQ option contract limit 

300,000 contracts ..................................................................................... 900,000 contracts. 

The purpose of the proposed rule 

change is to extend the Pilot Program for 

an additional six-month period, through 

September 1, 2007. The Exchange 

believes that extending the Pilot 

Program for six months is warranted 

due to the positive feedback from 

members and for the reasons cited in the 

original rule filing that proposed the 


sroberts on PROD1PC70 with NOTICES