6230 Federal Register / Vol. 73, No. 22 / Friday, February 1, 2008 / Notices 

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

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

6 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 56974 

(December 17, 2007), 72 FR 72803. 

4See Securities Exchange Act Release No. 53652 

(April 13, 2006), 71 FR 20422 (April 20, 2006) 

(approving the Exchange’s RROT Program). 

Commission’s Order Handling Rules. 

Members would be required to continue 

to comply with the firm quote rule, the 

OATS rules, and the Commission’s 

order routing and execution quality 

disclosure rules. 

If it were determined that a 

supplemental MPID was being used 

improperly, Nasdaq would withdraw its 

grant of the supplemental MPID for all 

purposes for all securities. In addition, 

if a market maker or ECN were no longer 

to fulfill the conditions appurtenant to 

its primary MPID (e.g., by being placed 

into an unexcused withdrawal), it 

would not be permitted to use any 

supplemental MPID for any purpose in 

that security. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6(b) of the Act,4 in 

general and with Section 6(b)(5) of the 

Act,5 in particular, in that it is designed 

to promote just and equitable principles 

of trade, to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, 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. There no longer remains 

any market or technological need to 

restrict the number of MPIDs market 

participants can request. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Nasdaq does not believe that the 

proposed rule change will result in 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 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve such proposed 

rule change or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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 

rule-comments@sec.gov. Please include 

File Number SR–NASDAQ–2008–004 

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–NASDAQ–2008–004. 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 at (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, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

Copies of such filing also will be 

available for inspection and copying at 

the principal office of Nasdaq. 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–NASDAQ–2008–004 and 

should be submitted on or before 

February 22, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–1835 Filed 1–31–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57181; File No. SR–Amex–

2007–132] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Order 

Approving a Proposed Rule Change as 

Modified by Amendment No. 1 Thereto 

To Include Volume Executed by 

Remote Quoting Towards the Earning 

of Remote Quoting Rights 

January 22, 2008. 

On November 30, 2007, the American 

Stock Exchange LLC (‘‘Amex’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend Amex Rule 994–ANTE to 

include the volume executed remotely 

by specialists and registered options 

traders (‘‘ROTs) towards the earning of 

remote quoting rights in the Exchange’s 

remote registered options trader 

(‘‘RROT’’) program (‘‘RROT Program’’). 

On December 13, 2007, Amex filed 

Amendment No. 1 to the proposed rule 

change. The proposed rule change, as 

amended, was published for comment 

in the Federal Register on December 21, 

2007.3 The Commission received no 

comments on the proposal. This order 

approves the proposed rule change, as 

amended. 

The Exchange’s RROT Program 

currently allows members or member 

organizations designated by the 

Exchange to be awarded remote quoting 

rights to enter bids and offers 

electronically from locations other than 

the trading crowd where the applicable 

options class is traded on the 

Exchange’s physical trading floor.4

ROTs and specialists are currently 

awarded remote quoting rights based on 

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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. 

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