[Federal Register: September 24, 2007 (Volume 72, Number 184)]
[Notices]
[Page 54304-54306]
[DOCID:fr24se07-77]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56448; File No. SR-CBOE-2007-111]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Retire Two Existing Pilot Programs that Permit
the Exchange To list Options on the Vanguard Emerging Markets Exchange
Traded Fund and the iShares MSCI Emerging Markets Index Fund

September 17, 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 September 11, 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. The Exchange has designated the proposed rule
change as constituting a stated policy, practice or interpretation with
respect to the meaning, administration or enforcement of an existing
rule under Section 19(b)(3)(A)(i) of the Act,\3\ and Rule 19b-4(f)(1)
thereunder,\4\ which renders the proposal effective upon filing of this
proposal with the Commission. The Commission is publishing this notice
to solicit comments on the proposed rule change from interested
persons.
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    \1\1 15 U.S.C. 78s(b)(1).
    \2\2 17 CFR 240.19b-4.
    \3\3 15 U.S.C. 78s(b)(3)(A)(i).
    \4\4 17 CFR 240.19b-4(f)(1).

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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange submits this rule filing to retire two existing pilot
programs that permit the Exchange to list options on the Vanguard
Emerging Markets Exchange Traded Fund (``VWO Fund'') and on the iShares
MSCI Emerging Markets Index Fund (``EEM Fund'').\5\ The Exchange is
proposing to retire the two pilot programs because both the VWO Fund
and the EEM Fund now meet all of the Exchange's generic initial and
maintenance listings standards, which permit the Exchange to list
options on the VWO Fund and the EEM Fund without having to file for
Commission approval. The text of the proposed rule change 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.
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    \5\ The VWO Fund pilot program commenced on March 19, 2007 and
is scheduled to expire on September 19, 2007. See Securities
Exchange Act Release No. 55491 (March 19, 2006), 72 FR 14145 (March
26, 2007) (order granting accelerated approval of SR-CBOE-2006-95).
The EEM Fund pilot program commenced on April 10, 2006 and has been
renewed four times. The EEM Fund pilot program is scheduled to
expire on December 7, 2007. See Securities Exchange Act Release No.
53621 (April 10, 2006), 71 FR 19568 (April 14, 2006) (approval of
SR-CBOE-2006-32, which established EEM Fund pilot program to expire
on June 9, 2006); Securities Exchange Act Release No. 53930 (June 1,
2006), 71 FR 33322 (June 8, 2006) (granting immediate effectiveness
to SR-CBOE-2006-56, which renewed EEM Fund pilot through September
7, 2006); Securities Exchange Act Release No. 54347 (August 22,
2006), 71 FR 51242 (August 29, 2006) (granting immediate
effectiveness to SR-CBOE-2006-72, which renewed EEM Fund pilot
program through December 7, 2006); Securities Exchange Act Release
No. 54876 (December 5, 2006), 71 FR 74968 (December 13, 2006)
(granting immediate effectiveness to SR-CBOE-2006-103, which renewed
EEM Fund pilot program through June 7, 2007); Securities Exchange
Act Release No. 55758 (May 14, 2007), 72 FR 28090 (May 18, 2007)
(granting immediate effectiveness to SR-CBOE-2007-43, which renewed
EEM Fund pilot program through December 7, 2007).
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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 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 rule filing is to retire two existing pilot
programs that permit the Exchange to list options on the VWO Fund and
the EEM Fund.\6\ The Exchange is proposing to retire the two pilot
programs because both the VWO Fund and the EEM Fund now meet all of the
Exchange's generic initial and maintenance standards. Specifically, the
Exchange has in place initial and maintenance listing standards set
forth in Rules 5.3.06 and 5.4.08, respectively (``Listing Standards''),
that are designed to allow the Exchange to list funds structured as
open-end investment companies, such as the VWO Fund and the EEM Fund,
without having to file for Commission approval to list for trading
options on these types of funds.\7\
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    \6\ The VWO Fund is an open-end investment company that is
designed to hold a portfolio of securities that tracks the Morgan
Stanley Capital International, Inc. (``MSCI'') Emerging Markets
Select Index, which consists of stocks that can be purchased free of
restrictions in 18 emerging markets in Europe, Asia, Africa and
Latin America. The EEM Fund is an open-end investment company that
is designed to hold a portfolio of securities that tracks the MSCI
Emerging Markets Free Index, which is designed to measure equity
market performance in the global emerging markets.
    \7\ Rules 5.3.06 and 5.4.08 set forth the initial listing and
maintenance standards for registered investment companies (or series
thereof) organized as open-end management investment companies, unit
investment trust or other similar entities traded on a national
securities exchange or through the facilities of a national
securities exchange. See Exchange Act Release, No. 40166 (July 2,
1998), 63 FR 37430 (July 10, 1998) (approval order for SR-CBOE-97-
045, predating the Commission's adoption of Rule 19b-4(e) of the
Act; see also Exchange Act Release No. 34-40761 (December 8, 1998),
63 FR 70952 (December 22, 1998).
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    When the Exchange first sought to list options on the VWO Fund and
EEM Fund, the Exchange had determined that the VWO Fund and the EEM
Fund both met substantially all of the Exchange's Listing Standards
requirements, but did not meet the Listing Standards requirement that
no more than 50% of the weight of the securities in the VWO Fund and
the EEM Fund be comprised of securities that are not subject to a
comprehensive surveillance sharing agreement (``CSSA'').\8\ As to the
VWO Fund, the Exchange had in place CSSAs with foreign exchanges that
covered 48.10% of the securities in the VWO Fund. As to the EEM Fund,
the Exchange had in place CSSAs with foreign exchanges that covered
49.76% of the securities in the EEM Fund. In order to meet the 50%
threshold, the Exchange requested the Commission's approval to rely
upon a memorandum of understanding that the Commission had entered into
with the Mexican Bolsa (``MOU'') because the securities traded on that
exchange represented 6.6% of the weight of the securities in the VWO
Fund and 7.54% of the weight of the securities in the EEM Fund.\9\
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    \8\ See Rule 5.3.06(A).
    \9\ See supra note 5. The Commission permitted the Exchange to
rely on the MOU, and the Exchange agreed to use its best efforts to
obtain a CSSA with the Bolsa during the respective pilot periods,
which to date has not been obtained.
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    Since the Commission approved the VWO Fund pilot program in March
2007 and since the last renewal of the EEM Fund pilot program in May
2007, the VWO Fund and the EEM Fund have both become compliant with
Rule 5.3.06(A) and more than 50% of the weight of the securities in the
VWO Fund and the EEM Fund are now subject to a CSSA. Specifically, the
Exchange represents that the Korean Exchange (``KRX'') recently became
a member of the Intermarket Surveillance Group; therefore, securities
and other products trading on its markets are now subject to a
CSSA.\10\ As a result, the percentage of the weight of the VWO Fund and
the EEM Fund represented by South Korean securities now renders both
the VWO Fund and the EEM Fund compliant with the Exchange's Listing
Standards requirements.
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    \10\ The KRX was created on January 27, 2005 through the
consolidation of three domestic Korean exchanges: Korea Stock
Exchange (KSE), KOSDAQ Market and Korea Futures Market (KOFEX). See
http://eng.krx.co.kr/index.html.

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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations under the Act applicable to a
national securities exchange and, in particular, the requirements of
Section 6(b) of the Act.\11\ Specifically, the Exchange believes the
proposed rule change is consistent with the Section 6(b)(5) Act \12\
requirements that the rules of an exchange be designed to promote just
and equitable principles of trade, to prevent fraudulent and
manipulative acts and, in general, to protect investors and the public
interest.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE does not believe that the proposed rule change will impose any
burden on competition 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

    Because the proposed rule change constitutes a stated policy,
practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A) of the Act
\13\ and subparagraph (f)(1) of Rule 19b-4 thereunder.\14\
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(1).
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    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 the 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<EMAIL_ADDRESS>Please include

File Number SR-CBOE-2007-111 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-2007-111. 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, 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 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-2007-111 and should be
submitted on or before October 15, 2007.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
Florence E. Harmon,
Deputy Secretary.
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    \15\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E7-18728 Filed 9-21-07; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register: August 31, 2006 (Volume 71, Number 169)]
[Notices]
[Page 51882-51883]
[DOCID:fr31au06-106]

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SECURITIES AND EXCHANGE COMMISSION

Release No. 34-54359; File No. SR-NYSE-2006-53]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to the Use of the Revised Uniform Application for Securities
Industry Registration or Transfer (Form U4) and Revised Uniform
Termination Notice for Securities Industry Registration (Form U5)

August 24, 2006.
    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 August 4, 2006, the New York Stock Exchange LLC (``NYSE'' 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 the Exchange. The Exchange
filed the proposed rule change 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 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.\5\
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    \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).
    \5\ Certain additions and technical corrections were made
throughout the discussion of the proposed rule change pursuant to
conversations with NYSE staff. Telephone conversations between Cory
Figman, Senior Special Counsel, Rule and Interpretive Standards,
NYSE, and Kate Robbins, Attorney, Division of Market Regulation,
Commission, on August 10, 2006.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange submits to the Commission, for use by the Exchange,
the recently revised Uniform Application for Securities Industry
Registration or Transfer (Form U4) and revised Uniform Termination
Notice for Securities Industry Registration (Form U5).

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 filing is to adopt, for use by the Exchange,
recently revised Forms U4 and U5 \6\ (collectively, the ``Forms'').
These Forms are identical to those filed with the Commission by the
National Association of Securities Dealers (``NASD'') in 2005.\7\
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    \6\ Form U4 is the ``Uniform Application for Securities Industry
Registration or Transfer'' and Form U5 is the ``Uniform Termination
Notice for Securities Industry Registration.'' Form U4 has
historically been the vehicle for the reporting of events that may
reveal that a person is subject to a statutory disqualification. See
Section 3(a)(39) of the Act, 15 U.S.C. 78c(a)(39).
    \7\ See Securities Exchange Act Release No. 52544 (September 30,
2005), 70 FR 58764 (October 7, 2005) (SR-NASD-2005-030) and NASD
Notice to Members 05-66.
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    The revised Forms, which are to be used by the Exchange as part of
its registration and oversight of persons associated with member
organizations, have been enhanced to provide more meaningful and
detailed disclosure with respect to registration-related functions
processed through the Central Registration Depository (``CRD'') system.
The CRD is an industry-wide automated system which allows for the
efficient review and tracking of registered persons in the securities
industry, such as changes in their work and disciplinary histories.
Further, use of the revised Forms allows for integration of Form U4 and
Form U5 information into branch office registration and reporting
functions processed through the CRD system by linking registered
persons to their designated branch office.
2. Statutory Basis
    The Exchange believes that, insofar as Forms U4 and U5 and the CRD
system are used by the various self-regulatory organizations, including
the Exchange, their use is consistent with Section 6(b)(5) of the Act
\8\ in fostering cooperation and coordination with persons engaged in
regulating transactions in securities. Additionally, the Exchange
believes that the information reported on the Forms will assist the
Exchange in its

responsibilities under Section 6(c) of the Act \9\ in evaluating
whether an individual subject to a statutory disqualification or who
cannot meet such standards of training, experience, and competence as
are prescribed by the rules of the Exchange or those who have engaged
in acts or practices inconsistent with just and equitable principles of
trade should be denied membership.
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    \8\ 15 U.S.C. 78f(b)(5).
    \9\ 15 U.S.C. 78f(c).
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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 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 has neither solicited nor received written comments on
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.\12\
However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange provided the Commission
with written notice of its intent to file this proposed rule change at
least five business days prior to the date of filing of the proposed
rule change. In addition, the Exchange has requested that the
Commission waive the 30-day operative delay to allow the Exchange to
utilize the U4 and U5 Forms without any undue delay. The Commission
believes that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest because it would allow
the Exchange to immediately use the revised Forms U4 and U5, which are
currently being used by NASD.\14\ For this reason, the Commission
designates the proposal to be effective and operative upon filing with
the Commission.\15\
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    \12\ Id.
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ See SR-NASD-2005-030, supra note.
    \15\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such proposed 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<EMAIL_ADDRESS>Please include

File Number SR-NYSE-2006-53 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-NYSE-2006-53. 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 the NYSE. 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-NYSE-2006-53 and should be submitted on or before
September 21, 2006.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 06-7301 Filed 8-30-06; 8:45 am]

BILLING CODE 8010-01-P