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37554 Federal Register / Vol. 72, No.

131 / Tuesday, July 10, 2007 / Notices

comment.13 In addition, the Exchange information that may be necessary to (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
believes that the OCC would seek to price a CDSO appropriately. notice is hereby given that on June 28,
revise the ODD to incorporate CDSOs.14 The Commission believes that the 2007, the Chicago Board Options
Further, CBOE clarified that the proposed position limits and margin Exchange, Incorporated (‘‘CBOE’’ or
Exchange is working with OCC to rules for CDSOs are reasonable and ‘‘Exchange’’) filed with the Securities
develop procedures to address actions consistent with the Act. The proposed and Exchange Commission
including full and partial redemptions, position limits reasonably balance the (‘‘Commission’’) the proposed rule
conversions to equities, bankruptcies, promotion of a free and open market for change as described in Items I, II, and
conversion to new series, and other these securities with minimization of III below, which Items have been
actions. According to CBOE, the OCC incentives for market manipulation and substantially prepared by the Exchange.
intends to use a major data vendor to insider trading. The proposed margin The Commission is publishing this
determine the market value of the rules are reasonably designed to deter a notice to solicit comments on the
underlying corporate debt securities of member or its customer from assuming proposed rule change from interested
CDSOs. The data vendor will view an imprudent position in CDSOs. persons.
TRACE and several other price reporting In support of the proposed rule I. Self-Regulatory Organization’s
services to derive a composite price for change, the Exchange has made the Statement of the Terms of Substance of
each underlying security on a daily following representations: the Proposed Rule Change
basis. 1. The Exchange has sufficient
The Exchange proposes to amend its
IV. Discussion and Commission’s operational capacity to accommodate
Fees Schedule to assess, retroactive to
Findings the listing and trading of CDSOs.
April 1, 2007, fees relating to CBOE and
2. The Exchange’s surveillance
After careful review, the Commission CBOE Stock Exchange (‘‘CBSX’’) market
procedures are adequate to properly
finds that the proposed rule change, as data that were implemented on June 1,
monitor the trading of the CDSOs. 2007. The text of the proposed rule
amended, is consistent with the
requirements of the Act and the rules 3. The Exchange will inform its change is available at CBOE, the
and regulations thereunder applicable to members in an Information Circular of Commission’s Public Reference Room,
a national securities exchange.15 In the special characteristics and risks and www.cboe.org/legal.
particular, the Commission believes that associated with trading the CDSOs.
4. The Exchange will delist CDSO II. Self-Regulatory Organization’s
the proposed rule change is consistent Statement of the Purpose of, and
with Section 6(b)(5) of the Act,16 which series for which there is no open
requires that the rules of an exchange be interest. Statutory Basis for, the Proposed Rule
designed to prevent fraudulent and This approval order is conditioned on Change
manipulative acts and practices, to the Exchange’s adherence to these
In its filing with the Commission,
promote just and equitable principles of representations.
CBOE included statements concerning
trade, to remove impediments to and V. Conclusion the purpose of and basis for the
perfect the mechanism for a free and proposed rule change and discussed any
open market and a national market It is therefore ordered, pursuant to
comments it received on the proposed
system, and, in general, to protect Section 19(b)(2) of the Act,17 that the
rule change. The text of these statements
investors and the public interest. proposed rule change (SR–CBOE–2003–
may be examined at the places specified
The Commission believes that the 41), as modified by Amendment No. 4,
in Item IV below. The Exchange has
listing rules proposed by CBOE for be, and hereby is, approved.
prepared summaries, set forth in
CDSOs are reasonable and consistent For the Commission, by the Division of Sections A, B, and C below, of the most
with the Act. The Commission notes Market Regulation, pursuant to delegated significant aspects of such statements.
that, for a CDSO to be listed, the authority.18
underlying corporate debt security Florence E. Harmon, A. Self-Regulatory Organization’s
must, among other things, have Deputy Secretary. Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
substantial trading volume, initial [FR Doc. E7–13275 Filed 7–9–07; 8:45 am]
Change
principal amount, and outstanding float; BILLING CODE 8010–01–P
the issuer of the corporate debt security 1. Purpose
must have at least one class of equity On June 1, 2007, the Exchange
security registered under Section 12(b) SECURITIES AND EXCHANGE implemented new fees relating to
of the Act; and such equity securities COMMISSION TickerXpress (‘‘TX’’), which is an
must satisfy the requirements for Exchange service that supplies market
options trading on CBOE. These [Release No. 34–56000; File No. SR–CBOE– data to Exchange market-makers trading
requirements are reasonably designed to 2007–73] on the Hybrid Trading System.3
facilitate investors’ access to Specifically, the Exchange increased the
Self-Regulatory Organizations; monthly fee for enhanced TX market
13 Telephone conversation between Jennifer L. Chicago Board Options Exchange, data from $200 per month to $300 per
Klebes, Senior Attorney, CBOE and Marc McKayle, Incorporated; Notice of Filing of
Special Counsel, Division of Market Regulation, month and adopted a fee of $100 per TX
Commission, on June 28, 2007.
Proposed Rule Change To Assess, on user per month for use of TX software
14 See also Exchange Act Rule 9b–1(b)(2)(i) which a Retroactive Basis, Certain CBOE and for the use and display of market data.
requires the relevant option market to file material CBSX Market Data Fees The Exchange proposes to assess these
changes to the ODD with the Commission, if the
ODD without such changes would become July 2, 2007. fees for the period April 1, 2007 through
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inaccurate, incomplete, or misleading. Pursuant to Section 19(b)(1) of the


15 In approving this proposed rule change, the 1 15 U.S.C. 78s(b)(1).
Securities Exchange Act of 1934
Commission notes that it has considered the 2 17 CFR 240.19b–4.
proposed rule’s impact on efficiency, competition, 3 See Securities Exchange Act Release No. 55882
and capital formation. See 15 U.S.C. 78c(f). 17 15 U.S.C. 78s(b)(2). (June 8, 2007), 72 FR 32931 (June 14, 2007) (File
16 15 U.S.C. 78s(b)(5). 18 17 CFR 200.30–3(a)(12). No. SR–CBOE–2007–54).

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Federal Register / Vol. 72, No. 131 / Tuesday, July 10, 2007 / Notices 37555

May 31, 2007, to help compensate the (B) Institute proceedings to determine For the Commission, by the Division of
Exchange for its increased costs in whether the proposed rule change Market Regulation, pursuant to delegated
providing the TX data and to help offset should be disapproved. authority.7
the license fees paid by the Exchange to Florence E. Harmon,
its third-party provider for making the IV. Solicitation of Comments Deputy Secretary.
TX software available to users during Interested persons are invited to [FR Doc. E7–13310 Filed 7–9–07; 8:45 am]
this time period. submit written data, views, and BILLING CODE 8010–01–P
On June 1, 2007, the Exchange arguments concerning the foregoing,
adopted a monthly fee to recoup the fees including whether the proposed rule
CBSX pays a third-party market data SECURITIES AND EXCHANGE
change is consistent with the Act. COMMISSION
vendor and other parties to help Comments may be submitted by any of
establish facilities at CBSX through the following methods: [Release No. 34–56005; File No. SR–ISE–
which the third-party market data 2007–49]
vendor can provide CBSX participants Electronic Comments
with certain market data.4 The fee is Self-Regulatory Organizations;
equal to $19,400 divided by the number • Use the Commission’s Internet International Securities Exchange,
of CBSX participants receiving the comment form (http://www.sec.gov/ LLC; Notice of Filing of Proposed Rule
market data. The Exchange proposes to rules/sro.shtml); or Change Relating to Fee Changes on a
assess this fee for the period April 1, • Send an e-mail to rule- Retroactive Basis
2007 through May 31, 2007, to recoup comments@sec.gov. Please include File July 3, 2007.
the fees CBSX paid during this time Number SR–CBOE–2007–73 on the Pursuant to Section 19(b)(1) of the
period for providing the infrastructure subject line. Securities Exchange Act of 1934 (the
to make the market data available to
Paper Comments ‘‘Act’’),1 and Rule 19b–4 thereunder,2
CBSX participants.
notice is hereby given that on June 15,
2. Statutory Basis • Send paper comments in triplicate 2007, the International Securities
to Nancy M. Morris, Secretary, Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’)
CBOE believes the proposed rule
Securities and Exchange Commission, filed with the Securities and Exchange
change is consistent with Section 6(b) of
100 F Street, NE., Washington, DC Commission (‘‘Commission’’) the
the Act 5 in general, and furthers the
20549–1090. proposed rule change as described in
objectives of Section 6(b)(4) of the Act 6
All submissions should refer to File Items I, II and III below, which Items
in particular, in that it is designed to
Number SR–CBOE–2007–73. This file have been substantially prepared by ISE.
provide for the equitable allocation of
number should be included on the The Commission is publishing this
reasonable dues, fees, and other charges
among CBOE members. subject line if e-mail is used. To help the notice to solicit comments on the
Commission process and review your proposed rule change from interested
B. Self-Regulatory Organization’s comments more efficiently, please use persons.
Statement on Burden on Competition only one method. The Commission will I. Self-Regulatory Organization’s
The Exchange does not believe that post all comments on the Commission’s Statement of the Terms of Substance of
the proposed rule change would impose Internet Web site (http://www.sec.gov/ the Proposed Rule Change
any burden on competition that is not rules/sro.shtml). Copies of the ISE is proposing to amend its
necessary or appropriate in furtherance submission, all subsequent Schedule of Fees to: (1) Increase the per
of the purposes of the Act. amendments, all written statements contract surcharge from $0.10 per
C. Self-Regulatory Organization’s with respect to the proposed rule contract to $0.15 per contract for
Statement on Comments on the change that are filed with the options on the Russell 1000 Index
Proposed Rule Change Received From Commission, and all written (‘‘RUI’’), the Russell 2000 Index
Members, Participants or Others communications relating to the (‘‘RUT’’), and the Mini Russell 2000
proposed rule change between the Index (‘‘RMN’’); and (2) refund
No written comments were solicited Commission and any person, other than surcharge fees collected for transactions
or received with respect to the proposed those that may be withheld from the in options on the iShares Russell 2000
rule change. public in accordance with the Index Fund (‘‘IWM’’), the iShares
III. Date of Effectiveness of the provisions of 5 U.S.C. 552, will be Russell 2000 Value Index Fund
Proposed Rule Change and Timing for available for inspection and copying in (‘‘IWN’’), the iShares Russell 2000
Commission Action the Commission’s Public Reference Growth Index Fund (‘‘IWO’’), the
Room, 100 F Street, NE., Washington, iShares Russell 1000 Value Index Fund
Within 35 days of the date of
DC 20549, on official business days (‘‘IWD’’) and the iShares Russell 1000
publication of this notice in the Federal
between the hours of 10:00 a.m. and Index Fund (‘‘IWB’’), in both cases for
Register or within such longer period (i)
3:00 p.m. Copies of the filing also will the period commencing January 1, 2007
as the Commission may designate up to
be available for inspection and copying and ending June 15, 2007 (the
90 days of such date if it finds such
at the principal office of the Exchange. ‘‘Retroactive Period’’). The Exchange
longer period to be appropriate and
All comments received will be posted proposes the surcharge increase to
publishes its reasons for so finding, or
without change; the Commission does become effective retroactively, as of
(ii) as to which the Exchange consents,
not edit personal identifying January 1, 2007.3 The text of the
the Commission will:
information from submissions. You
(A) By order approve the proposed
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should submit only information that 7 17 CFR 200.30–3(a)(12).


rule change, or 1 15 U.S.C. 78s(b)(1).
you wish to make available publicly. All
2 17 CFR 240.19b–4.
4 See id.
submissions should refer to File
Number SR–CBOE–2007–73 and should ruleOn June 15, 2007, the Exchange filed a proposed
3
5 15 U.S.C. 78f(b). change as immediately effective under Section
6 15 U.S.C. 78f(b)(4). be submitted on or before July 31, 2007. Continued

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