6752 Federal Register / Vol. 73, No. 24 / Tuesday, February 5, 2008 / Notices 

15 15 U.S.C. 78k–1. 

16 17 CFR 242.608. 

17 17 CFR 200.30–3(a)(29). 

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

2 17 CFR 240.19b–4. 

3For purposes of calculating the 60-day period 

within which the Commission may summarily 

abrogate the proposed rule change under Section 

19(b)(3)(C) of the Act, the Commission considers 

the period to commence on January 28, 2008, the 

date on which the Exchange filed Amendment No. 

3. See 15 U.S.C. 78s(b)(3)(C). 

4 15 U.S.C. 78s(b)(3)(A)(ii). 

5 17 CFR 240.19b–4(f)(2). 

until such time as there is no longer any 

open interest in physical delivery FCOs 

traded on the Phlx that are subject to the 

separate FCO service access fee. In 

addition, the Commission believes that 

OPRA’s proposal to amend various 

provisions of the OPRA Plan and the 

OPRA Fee Schedule to eliminate the 

separate fees for access to market data 

concerning FCOs that currently apply to 

certain FCOs traded on the Phlx is 

appropriate in light of the Phlx’s 

decision to cease listing new series of 

physical delivery FCOs to replace 

expiring series. Accordingly, the 

Commission believes that it is necessary 

or appropriate in the public interest, for 

the protection of investors or the 

maintenance of fair and orderly markets, 

to remove impediments to, and perfect 

mechanism of, a national market system 

to approve the proposed amendment to 

the OPRA Plan on a permanent basis. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 11A of the Act,15 and Rule 608 

thereunder,16 that the proposed OPRA 

Plan amendment (SR–OPRA–2007–03), 

as modified by Amendment No. 1 

thereto, be, and it hereby is, approved 

on a permanent basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–1998 Filed 2–4–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57231; File No. SR–CBOE–

2007–152] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change as Modified by 

Amendments No. 1, 2, and 3 Relating 

to a Hybrid Agency Liaison (‘‘HAL’’) 

Step-Up Rebate and Pass-Through of 

Certain Linkage Related Costs 

January 30, 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 December 

21, 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 CBOE. On 

January 16, 2008, CBOE filed 

Amendment No. 1 to the proposed rule 

change. On January 23, 2008, CBOE 

filed Amendment No. 2 to the proposed 

rule change, and on January 28, CBOE 

filed Amendment No. 3 to the proposed 

rule change.3 CBOE has designated this 

proposal as one establishing or changing 

a due, fee, or other charge applicable 

only to a member under section 

19(b)(3)(A)(ii) of the Act,4 and Rule 

19b–4(f)(2) thereunder,5 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 

CBOE proposes to: (i) Establish a HAL 

step-up rebate, and (ii) pass through to 

members certain costs related to 

Intermarket Option Linkage (‘‘Linkage’’) 

Principal orders. The text of the rule 

proposal is available on the Exchange’s 

Web site (http://www.cboe.org/legal), 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, 

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. CBOE 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 

HAL Step-Up Rebate 

HAL is a system for automated 

handling of electronically received 

orders that are not automatically 

executed upon receipt by the Hybrid 

Trading System (‘‘Hybrid’’). CBOE Rule 

6.14 governs the operation of the HAL 

system. 

Orders received by the HAL system 

are electronically exposed to all CBOE 

market-makers appointed to the relevant 

option class, as well as to all members 

acting as agent for orders at the top of 

the Exchange’s book in the relevant 

option series. This exposure and a 

subsequent allocation period (together, 

the ‘‘HAL auction’’) afford crowd 

members an opportunity to match the 

away national best bid or offer 

(‘‘NBBO’’) price. If any portion of an 

exposed order remains unexecuted at 

the end of a HAL auction, then the 

remaining order would be booked if it 

is a limit order that is not marketable, 

or, if marketable, routed to the exchange 

showing the NBBO via Linkage. 

In order to provide an incentive to 

market makers to execute orders at 

CBOE, versus routing orders away via 

Linkage, the Exchange proposes to 

establish a program whereby the 

Exchange would provide a rebate to 

market-makers that ‘‘step-up’’ and trade 

all or part of certain orders on the HAL 

system. Specifically, the Exchange will 

rebate to a market-maker $.20 per 

contract against transaction fees 

generated from a transaction on the HAL 

system in a penny pilot class, provided 

that at least 80% of the market-maker’s 

quotes in that class (excluding quotes in 

LEAPS series) in that same month were 

on one side of the NBBO. Marketmakers not meeting this 80% criteria 

would not be eligible to receive a rebate. 

The Exchange believes the HAL rebate 

will allow market-makers to compete 

better for order flow in the penny pilot 

classes. 

Pass-Through of Linkage P Order Costs 

Pursuant to Section 21 of the CBOE 

Fees Schedule, the Exchange provides 

certain rebates and credits to Designated 

Primary Market-Makers (‘‘DPMs’’) for 

fees they incur related to the execution 

of outbound Principal orders (‘‘P 

orders’’) on behalf of orders that are for 

the account of a broker-dealer (i.e., ‘‘B’’

and ‘‘F’’ origin codes). 

The Exchange proposes to amend this 

program in two respects. First, the 


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Federal Register / Vol. 73, No. 24 / Tuesday, February 5, 2008 / Notices 6753 

6The Exchange is expanding the application of 

the P order program due to the fact that HAL now 

processes market-maker orders in addition to 

broker-dealer orders. 

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

8 15 U.S.C. 78f(b)(4). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–(f)(2). 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Exchange proposes to expand the 

program to apply to any non-customer 

order underlying a P order.6 Second, in 

order to recover the significant costs of 

this program, the Exchange proposes to 

pass through to the member that 

originated the underlying order the total 

amount of the credits paid by the 

Exchange to the DPM under the program 

(i.e., away exchange transaction fee, and 

OCC, clearing firm and Sales Value 

fees). The Exchange represents that 

members seeking to send orders to the 

Exchange that are not routed away 

through the Linkage (thereby avoiding 

any pass-through Linkage charges) may 

do so by marking orders sent to CBOE 

with an Immediate or Cancel (‘‘IOC’’) 

designation. IOC orders are not routed 

to other market centers, instead if they 

cannot be executed on CBOE they are 

cancelled. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with section 

6(b) of the Act 7 in general and furthers 

the objectives of section 6(b)(4) 8 of the 

Act 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 

CBOE 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 

The Exchange neither solicited nor 

received comments on the proposal. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to section 19(b)(3)(A) 

of the Act 9 and Rule 19b–4(f)(2) 10

thereunder because it establishes or 

changes a due, fee, or other charge 

applicable only to a member. 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. 

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–2007–152 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–2007–152. 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–2007–152 and 

should be submitted on or before 

February 26, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–2059 Filed 2–4–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57229; File No. SR–ISE–

2008–09] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing of Proposed Rule 

Change To Amend Exchange Rules 

Related to the Imposition of Fines for 

Minor Rule Violations 

January 29, 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 January 

18, 2008, the International Securities 

Exchange, LLC (‘‘ISE’’ 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 prepared substantially by the 

ISE. 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 ISE 

Rule 1614, ‘‘Imposition of Fines for 

Minor Rule Violations,’’ to add 

summary fines for violations of ISE Rule 

1100, ‘‘Exercise of Options Contracts.’’

The text of the proposed rule change is 

available on the Exchange’s Web site 

(http://www.ise.com), at the ISE’s 

principal office, 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 

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 


rmajette on PROD1PC64 with NOTICES