Federal Register / Vol. 73, No. 22 / Friday, February 1, 2008 / Notices 6231 

5 In approving this proposed rule change, the 

Commission notes that it has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. 15 U.S.C. 78c(f). 

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

7 15 U.S.C. 78s(b)(2). 

8 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)(2). 

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

6 15 U.S.C. 78f(b)(4). 

quantitative criteria set forth in Amex 

Rule 994–ANTE. Specifically, 

specialists are awarded remote quoting 

rights based on Exchange floor volume 

executed, and their percentage of 

industry market share in the options in 

which they specialize. ROTs are 

awarded remote quoting rights based 

solely on floor volume executed. 

Currently, volume executed as a result 

of quoting remotely is not included in 

the calculation of remote quoting rights 

in Rule 994–ANTE. However, according 

to the Exchange, since the 

implementation of the RROT Program in 

May of 2006, volume is increasingly 

executed as a result of remote quotes 

entered by ROTs and specialists. The 

Exchange believes it is appropriate to 

reward those ROTs and specialists for 

the volume they execute as a result of 

quoting remotely, by including such 

volume towards the earning of 

additional remote quoting rights. 

The Commission finds that the 

proposed rule change, as amended, is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.5 In particular, the 

Commission finds that the proposal is 

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

Act,6 which requires, among other 

things, that the rules of an exchange be 

designed to promote just and equitable 

principles of trade, remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, protect investors and the public 

interest. Volume executed as a result of 

quoting remotely, as well as volume 

executed on the floor, contributes to 

liquidity in a class. The Commission 

therefore believes that it is appropriate 

and consistent with the Act for the 

Exchange to include volume executed 

remotely by specialists and ROTs in the 

calculation of remote quoting rights on 

the Exchange. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,7 that the 

proposed rule change (SR–Amex–2007–

132), as modified by Amendment No. 1 

thereto, is approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–1788 Filed 1–31–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57197; File No. SR–CBOE–

2008–06] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Regarding Fees for CBOE 

Stock Exchange Permit Applicants 

January 24, 2008. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (‘‘Act’’) 

and Rule 19b–4 thereunder,2 notice is 

hereby given that on January 15, 2008, 

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. The Exchange filed the 

proposed rule change pursuant to 

Section 19(b)(3)(A) 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 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to modify its 

fees applicable to CBOE Stock Exchange 

(‘‘CBSX’’) permit applicants. The text of 

the proposed rule change is available at 

the Exchange, at the Commission’s 

Public Reference Room, and on the 

Exchange’s Internet Web site at http:// 

www.cboe.org/legal. 

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. 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 purpose of this proposed rule 

change is to amend the CBSX fee 

schedule to allow for a stand-alone fee 

for CBSX permit applicants. CBOE Rule 

3.26 established the CBSX Permit 

Program which allows the Exchange to 

issue up to 100 trading permits that 

confer the ability to transact on CBSX 

without the necessity of acquiring a 

regular Exchange membership through 

purchase, lease, or otherwise. The CBSX 

fee schedule lists the fees applicable to 

CBSX users. Initially, CBSX permit 

applicants were charged application 

fees consistent with the CBOE Fee 

Schedule for new membership 

applications. The Exchange now seeks 

to establish a stand-alone CBSX permit 

application fee of $1000 that would 

cover all aspects of the application 

process. This fee amount provides a cost 

savings to CBSX permit applicants 

because it is less than the current costs 

assessed to CBOE new member 

applicants. The proposed rule change 

will be implemented Wednesday, 

January 16, 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)(4) of the Act,6 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. 

mstockstill on PROD1PC66 with NOTICES

6232 Federal Register / Vol. 73, No. 22 / Friday, February 1, 2008 / Notices 

7 15 U.S.C. 78s(b)(3)(A)(ii). 

8 17 CFR 240.19b–4(f)(2). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Article 20, Rule 5. 

4See Article 20, Rule 6. 

5The participant is responsible for ensuring that 

it has a relationship with its chosen destination to 

permit the requested access. The Exchange is not 

involved in the execution of the order—any 

execution of the order is the responsibility of the 

destination to which the order was sent. The 

Exchange, however, reports any execution or 

cancellation of the order by the other destination to 

the participant that submitted the order and notifies 

the other venue of any cancellations or changes to 

the order submitted by the order-sending 

participant. See Article 20, Rule 5, Interpretation 

and Policy .03(b). 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change is 

effective upon filing pursuant to Section 

19(b)(3)(A)(ii) 7 of the Act and Rule 19b–

4(f)(2) 8 thereunder because it 

establishes or changes a due, fee, or 

other charge applicable only to a 

member imposed by the Exchange. 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 an e-mail to rulecomments@sec.gov. Please include File 

Number SR–CBOE–2008–06 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–2008–06. 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 on official business days between 

the hours of 10 a.m. and 3 p.m. 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 No. SR–CBOE–

2008–06 and should be submitted on or 

before February 22, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–1789 Filed 1–31–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57203; File No. SR–CHX–

2007–18] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Notice 

of Filing of Proposed Rule Change, as 

Modified by Amendment No. 1 Thereto, 

To Make Administrative Changes to Its 

Routing Rules 

January 25, 2008. 

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 July 6, 

2007, the Chicago Stock Exchange, Inc. 

(‘‘CHX’’ 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 CHX. On 

January 22, 2008, the Exchange filed 

Amendment No. 1 to the proposed rule 

change. 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 CHX proposes to amend its rules 

to make administrative changes that are 

designed to allow third-party routers to 

provide better service to their 

customers. The text of this proposed 

rule change is available at the CHX, on 

the Exchange’s Web site at http:// 

www.chx.com/rules/ 

proposed_rules.htm, and in 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 

CHX 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 CHX 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 

Under the Exchange’s rules, the 

Exchange’s Matching System will not 

execute an order if its execution would 

be improper under Rule 611 of 

Regulation NMS under the Act (an 

‘‘improper trade-through’’).3 Similarly, 

the Exchange’s Matching System will 

not display an order if its display would 

improperly lock or cross other markets.4

In these situations, the Exchange either 

cancels the order back to the participant 

that submitted it or routes the order to 

the destination of the participant’s 

choice, all at the direction of the 

participant.5

Under this proposal, the Exchange 

seeks to make three administrative 

changes to its routing rules to permit 

these third-party routers to provide 

better service to their customers. The 

mstockstill on PROD1PC66 with NOTICES