[Federal Register: February 1, 2007 (Volume 72, Number 21)]
[Notices]
[Page 4741-4743]
[DOCID:fr01fe07-96]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55176; File No. SR-CBOE-2007-08]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1 Thereto Relating to the Establishment
of a Pilot Program That Increases Position and Exercise Limits for
Options on the iShares[supreg] Russell 2000[supreg] Index Fund

January 25, 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 January 22, 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 and II below, which Items have been substantially prepared by
CBOE. On January 22, 2007, CBOE submitted Amendment No. 1 to the
proposed rule change. CBOE has filed the proposal 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, as amended, from interested persons.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

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

    CBOE proposes to amend Rule 4.11 to exempt options on the
iShares[supreg] Russell 2000[supreg] Index Fund (``IWM'') from the
position and exercise limits provided for under the Rule 4.11 Pilot
Program and to increase the standard position and exercise limits for
IWM as part of a six-month pilot (``Rule 4.11 IWM Pilot Program''). The
text of the proposed rule change is available at CBOE, the Commission's
Public Reference Room, and http://www.cboe.com.

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
    The Exchange proposes to amend Interpretation and Policy .07 to
Rule 4.11 on a six-month pilot basis to exempt options on IWM from the
Rule 4.11 Pilot Program. Under the Rule 4.11 Pilot Program, the
position and exercise limits for IWM would be reduced on January 22,
2007 from 500,000 to 250,000 contracts. The Exchange now proposes to
allow position and exercise limits for options on IWM to remain at
500,000 contracts on a pilot basis, from January 22, 2007 through July
22, 2007.
    In June 2005, as a result of a 2-for-1 stock split, the position
limit for IWM options was temporarily increased from 250,000 contracts
(covering 25,000,000 shares) to 500,000 contracts (covering 50,000,000
shares). At the time of the split, the furthest IWM option expiration
date was January 2007. Therefore, the temporary increase of the IWM
position limit will revert to the pre-split level (as provided for in
connection with the Rule 4.11 Pilot Program) of 250,000 contracts after
expiration in January 2007, or on January 22, 2007.\5\
---------------------------------------------------------------------------

    \5\ See CBOE Research Circular RS05-380, at 12.
---------------------------------------------------------------------------

    The Exchange believes that a position limit of 250,000 contracts is
too low and may be a deterrent to the successful trading of IWM
options. Importantly, options on IWM are \1/10\th the size of options
on the Russell 2000[supreg] Index (``RUT''), which have a position
limit of 50,000 contracts.\6\ Traders who trade IWM options to hedge
positions in RUT options are likely to find a position limit of 250,000
contracts in IWM options too restrictive and insufficient to properly
hedge. For example, if a trader held 50,000 RUT options and wanted to
hedge that position with IWM options, the trader would need--at a
minimum-500,000 IWM options to properly hedge the position. Therefore,
the Exchange believes that a position limit of 250,000 contracts is too
low and may adversely affect market participants' ability to provide
liquidity in this product.
---------------------------------------------------------------------------

    \6\ See CBOE Rule 24.4(a); see also Securities Exchange Act
Release Nos. 45309 (January 18, 2002), 67 FR 3757 (January 25, 2002)
(SR-CBOE-2001-44) (increase of position and exercise limits to
300,000 for QQQ options); 47346 (February 11, 2003), 68 FR 8316
(February 20, 2003) (SR-CBOE-2002-26) (increase of position and
exercise limits to 300,000 for DIA options); and 51041 (January 14,
2005), 70 FR 3408 (January 24, 2005) (SR-CBOE-2005-06) (increase of
position and exercise limits for options on Standard and Poor's
Depositary Receipts[supreg] from 75,000 to 300,000).
---------------------------------------------------------------------------

    Additionally, IWM options have grown to become one of the largest
options contracts in terms of trading volume. For example, the volume
in options on IWM set a new single-day record on June 8, 2006, when
760,803 contracts (120,229 calls and 640,574 puts) traded on that day.
This record level volume beat the previous single-day high of 727,521
contracts on May 17, 2006. Further, over the previous six months, the
average daily CBOE trading volume of IWM options has been 187,190
contracts and a total of 23,960,382 contracts have traded on the
Exchange.
    As a result, the Exchange proposes that options on IWM be subject
to position and exercise limits of 500,000 contracts on a pilot basis
to run from January 22, 2007 through July 22, 2007.\7\ The Exchange
believes that increasing position and exercise limits for IWM options
will lead to a more liquid and more competitive market environment for
IWM options that will benefit customers interested in this product.
---------------------------------------------------------------------------

    \7\ Pursuant to Interpretation and Policy .02 to CBOE Rule 4.12,
the exercise limit established under Rule 4.12 for IWM options shall
be equivalent to the position limit prescribed for IWM options in
Interpretation and Policy .07 under Rule 4.11. The increased
exercise limits would only be in effect during the pilot period, to
run from January 22, 2007 through July 22, 2007. See Amendment No. 1
to the proposed rule change.
---------------------------------------------------------------------------

    The Exchange would require that each member or member organization
that maintains a position on the same side of the market in excess of
10,000 contracts in the IWM option class, for its own account or for
the account of a customer report certain information.\8\ This data
would include, but would not be limited to, the option position,
whether such position is hedged and if so, a description of the hedge,
and if applicable, the collateral used to carry the position. Exchange
market-makers (including DPMs) would continue to be exempt from this
reporting requirement as market-maker information can be accessed
through the Exchange's market surveillance systems. In addition, the
general reporting requirement for customer accounts that maintain a
position in excess of 200 contracts will remain at this level for IWM
options.\9\
---------------------------------------------------------------------------

    \8\ See CBOE Rule 4.13(b).
    \9\ See CBOE Rule 4.13(a).
---------------------------------------------------------------------------

2. Statutory Basis
    CBOE believes that the proposed rule change is consistent with and
furthers the objectives of Section 6(b)(5) of the Act,\10\ in that it
is designed to promote just and equitable principles of trade, 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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 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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    Because the forgoing rule change does not: (1) Significantly affect
the protection of investors or the public interest; (2) impose any
significant burden on competition; and (3) become operative for 30 days
after the date of this filing, or such shorter time as the Commission
may designate, it has become effective pursuant to Section 19(b)(3)(A)
of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\13\
However, Rule 19b-4(f)(6)(iii) \14\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay. The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest because such waiver
would permit position and exercise limits for options on IWM to remain
at 500,000 option contracts for a six-month pilot period. For this
reason, the Commission designates the proposed rule change to be
effective and operative upon filing with the Commission.\15\
---------------------------------------------------------------------------

    \13\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to
the Commission written notice of its intent to file the proposed
rule change, along with a brief description and text of the proposed
rule change, at least five business days prior to the date of filing
of the proposed rule change, or such shorter time as designated by
the Commission. The Commission has decided to waive the five-day
pre-filing notice requirement.
    \14\ Id.
    \15\ For the 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).
---------------------------------------------------------------------------

    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<EMAIL_ADDRESS>Please include

File Number SR-CBOE-2007-08 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-2007-08. 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 the
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-2007-08 and should be submitted on or before February 22, 2007.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-1580 Filed 1-31-07; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 98 (Friday, May 20, 2016)]
[Notices]
[Pages 31922-31924]
[FR Doc No: 2016-11908]

-----------------------------------------------------------------------

 DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. PF16-3-000]

Millennium Pipeline Company, LLC; Notice of Intent To Prepare an
Environmental Assessment for the Planned Eastern System Upgrade
Project, and Request for Comments on Environmental Issues

    The staff of the Federal Energy Regulatory Commission (FERC or
Commission) will prepare an environmental assessment (EA) that will
discuss the environmental impacts of the Eastern System Upgrade Project
(ESU Project) involving construction and operation of facilities by
Millennium Pipeline Company, LLC (Millennium) in Sullivan, Delaware,
Orange, and Rockland Counties, New York. The Commission will use this
EA in its decision-making process to determine whether the ESU Project
is in the public convenience and necessity.
    This notice announces the opening of the scoping process the
Commission will use to gather input from the public and interested
agencies on the ESU Project. You can make a difference by providing us
with your specific comments or concerns about the ESU Project. Your
comments should focus on the potential environmental effects,
reasonable alternatives, and measures to avoid or lessen environmental
impacts. Your input will help the Commission staff determine what
issues they need to evaluate in the EA. To ensure that your comments
are timely and properly recorded, please send your comments so that the
Commission receives them in Washington, DC on or before June 10, 2016.
    If you sent comments on the ESU Project to the Commission before
the opening of this docket on January 19, 2016, you will need to file
those comments in Docket No. PF16-3-000 to ensure they are considered
as part of this proceeding.
    This notice is being sent to the Commission's current environmental
mailing list for the ESU Project. State and local government
representatives should notify their constituents of this planned
project and encourage them to comment on their areas of concern.
    If you are a landowner receiving this notice, a pipeline company
representative may contact you about the acquisition of an easement to
construct, operate, and maintain the planned facilities. The company
would seek to negotiate a mutually acceptable agreement. However, if
the Commission approves the ESU Project, that approval conveys with it
the right of eminent domain. Therefore, if easement negotiations fail
to produce an agreement, the pipeline company could initiate
condemnation proceedings where compensation would be determined in
accordance with state law.
    A fact sheet prepared by the FERC entitled ``An Interstate Natural
Gas Facility On My Land? What Do I Need To Know?'' is available for
viewing on the FERC Web site (www.ferc.gov). This fact sheet addresses
a number of typically asked questions, including the use of eminent
domain and how to participate in the Commission's proceedings.

Public Participation

    For your convenience, there are three methods you can use to submit
your comments to the Commission. The Commission will provide equal
consideration to all comments received, whether filed in written form
or provided verbally. The Commission encourages electronic filing of
comments and has expert staff available to assist you at<PHONE_NUMBER>
or

<EMAIL_ADDRESS>Please carefully follow these instructions so that
your comments are properly recorded.
    (1) You can file your comments electronically using the eComment
feature on the Commission's Web site (www.ferc.gov) under the link to
Documents and Filings. This is an easy method for submitting brief,
text-only comments on a project;
    (2) You can file your comments electronically by using the eFiling
feature on the Commission's Web site (www.ferc.gov) under the link to
Documents and Filings. With eFiling, you can provide comments in a
variety of formats by attaching them as a file with your submission.
New eFiling users must first create an account by clicking on
``eRegister.'' If you are filing a comment on a particular project,
please select ``Comment on a Filing'' as the filing type; or
    (3) You can file a paper copy of your comments by mailing them to
the following address. Be sure to reference the ESU Project docket
number (PF16-3-000) with your submission: Kimberly D. Bose, Secretary,
Federal Energy Regulatory Commission, 888 First Street NE., Room 1A,
Washington, DC 20426

Summary of the Planned Project

    Millennium plans to construct and operate about 7.8 miles of 30-
and 36-inch-diameter pipeline loop \1\ in Orange County, New York. The
planned pipeline loop would transport natural gas from Millennium's
existing Corning Compressor Station to an existing interconnect with
Algonquin Gas Transmission, LLC in Ramapo, New York. Millennium would
also construct a new compressor station in Sullivan County, New York;
install additional compression at the Hancock Compressor Station in
Delaware County, New York; and modify the Westtown Meter Station in
Orange County, New York and the Ramapo Meter Station in Rockland
County, New York. According to Millennium, the ESU Project would be
designed to transport approximately 200,000 dekatherms per day of
additional natural gas service. The general location of the ESU Project
facilities is shown in appendix 1.\2\
---------------------------------------------------------------------------

    \1\ A pipeline loop is a segment of pipe constructed parallel to
an existing pipeline to increase capacity.
    \2\ The appendices referenced in this notice will not appear in
the Federal Register. Copies of the appendices were sent to all of
those receiving this notice in the mail and are available at
www.ferc.gov using the link called ``eLibrary'' or from the
Commission's Public Reference Room, 888 First Street NE.,
Washington, DC 20426, or call<PHONE_NUMBER>. For instructions on
connecting to eLibrary, refer to the last page of this notice.
---------------------------------------------------------------------------

    The ESU Project would consist of the following facilities in New
York:
     Approximately 7.8 miles of new 30- and 36-inch-diameter
pipeline loop to be located generally adjacent to Millennium's existing
mainline in Orange County;
     a new 22,400-horsepower compressor station in Sullivan
County;
     an additional 22,400 horsepower of compression at the
existing Hancock Compressor Station in Delaware County;
     modifications at the existing Ramapo Meter Station in
Rockland County;
     modifications at the existing Huguenot and Westtown Meter
Stations in Orange County; and
     construction of an interconnect to Millennium's proposed
Valley Lateral Pipeline.

Land Requirements for Construction

    Construction of the planned facilities would disturb about 199.6
acres of land for the aboveground facilities and the pipeline loop.
Millennium would maintain about 51.0 acres for permanent operation of
the ESU Project's facilities following construction; the remaining
acreage would be restored and revert to former uses. Most of the
pipeline loop would be located within Millennium's existing easements,
offset about 25 feet from Millennium's existing pipeline.

The EA Process

    The National Environmental Policy Act (NEPA) requires the
Commission to take into account the environmental impacts that could
result from an action whenever it considers the issuance of a
Certificate of Public Convenience and Necessity. NEPA also requires us
\3\ to discover and address concerns the public may have about
proposals. This process is referred to as scoping. The main goal of the
scoping process is to focus the analysis in the EA on the important
environmental issues. By this notice, the Commission requests public
comments on the scope of the issues to be addressed in the EA. We will
consider all filed comments during the preparation of the EA.
---------------------------------------------------------------------------

    \3\ ``We,'' ``us,'' and ``our'' refer to the environmental staff
of the Commission's Office of Energy Projects.
---------------------------------------------------------------------------

    In the EA we will discuss impacts that could occur as a result of
the construction and operation of the planned project under these
general headings:
     Geology and soils;
     land use;
     water resources, fisheries, and wetlands;
     cultural resources;
     vegetation and wildlife, including migratory birds;
     air quality and noise;
     endangered and threatened species;
     public safety; and
     cumulative impacts.
    We will also evaluate possible alternatives to the planned ESU
Project or portions of the project, and make recommendations on how to
lessen or avoid impacts on the various resource areas.
    Although no formal application has been filed, we have already
initiated our NEPA review under the Commission's pre-filing process.
The purpose of the pre-filing process is to encourage early involvement
of interested stakeholders and to identify and resolve issues before
the FERC receives an application. As part of our pre-filing review, we
have begun to contact some federal and state agencies to discuss their
involvement in the scoping process and the preparation of the EA.
    The EA will present our independent analysis of the issues and will
be available in the public record through eLibrary. Depending on the
comments received during the scoping process, we may also publish and
distribute the EA to the public for an allotted comment period. We will
consider all comments on the EA before we make our recommendations to
the Commission. To ensure we have the opportunity to consider and
address your comments, please carefully follow the instructions in the
Public Participation section, beginning on page 2.
    With this notice, we are asking agencies with jurisdiction by law
and/or special expertise with respect to the environmental issues
related to this project to formally cooperate with us in the
preparation of the EA.\4\ Agencies that would like to request
cooperating agency status should follow the instructions for filing
comments provided under the Public Participation section of this
notice.
---------------------------------------------------------------------------

    \4\ The Council on Environmental Quality regulations addressing
cooperating agency responsibilities are at Title 40, Code of Federal
Regulations, Part 1501.6.
---------------------------------------------------------------------------

Consultations Under Section 106 of the National Historic Preservation
Act

    In accordance with the Advisory Council on Historic Preservation's
implementing regulations for section 106 of the National Historic
Preservation Act, we are using this notice to initiate consultation
with the New York State Historic Preservation Office (SHPO), and to
solicit their views and those of other government agencies, interested
Indian tribes, and the public on the ESU Project's potential effects on

historic properties.\5\ We will define the project-specific Area of
Potential Effects (APE) in consultation with the SHPO as the ESU
Project develops. For natural gas facility projects, the APE at a
minimum encompasses all areas subject to ground disturbance (examples
include construction right-of-way, contractor/pipe storage yards,
compressor stations, and access roads). Our EA for this project will
document our findings on the impacts on historic properties and
summarize the status of consultations under section 106.
---------------------------------------------------------------------------

    \5\ The Advisory Council on Historic Preservation regulations
are at Title 36, Code of Federal Regulations, Part 800. Those
regulations define historic properties as any prehistoric or
historic district, site, building, structure, or object included in
or eligible for inclusion in the National Register of Historic
Places.
---------------------------------------------------------------------------

Environmental Mailing List

    The environmental mailing list includes federal, state, and local
government representatives and agencies; elected officials;
environmental and public interest groups; Native American Tribes; other
interested parties; and local libraries and newspapers. This list also
includes all affected landowners (as defined in the Commission's
regulations) who are potential right-of-way grantors, whose property
may be used temporarily for project purposes, or who own homes within
certain distances of aboveground facilities, and anyone who submits
comments on the ESU Project. We will update the environmental mailing
list as the analysis proceeds to ensure that we send the information
related to this environmental review to all individuals, organizations,
and government entities interested in and/or potentially affected by
the planned project.
    Copies of the EA will be sent to the environmental mailing list for
public review and comment. If you would prefer to receive a paper copy
of the document instead of the CD version or would like to remove your
name from the mailing list, please return the attached Information
Request (see appendix 2).

Becoming an Intervenor

    Once Millennium files its application with the Commission, you may
want to become an ``intervenor'' which is an official party to the
Commission's proceeding. Intervenors play a more formal role in the
process and are able to file briefs, appear at hearings, and be heard
by the courts if they choose to appeal the Commission's final ruling.
An intervenor formally participates in the proceeding by filing a
request to intervene. Instructions for becoming an intervenor are in
the User's Guide under the ``e-filing'' link on the Commission's Web
site. Please note that the Commission will not accept requests for
intervenor status at this time. You must wait until the Commission
receives a formal application for the ESU Project.

Additional Information

    Additional information about the ESU Project is available from the
Commission's Office of External Affairs, at (866) 208-FERC, or on the
FERC Web site (www.ferc.gov) using the eLibrary link. Click on the
eLibrary link, click on ``General Search'' and enter the docket number,
excluding the last three digits in the Docket Number field (i.e., PF16-
3). Be sure you have selected an appropriate date range. For
assistance, please contact FERC Online Support at
<EMAIL_ADDRESS>or toll free at<PHONE_NUMBER>, or for TTY,
contact<PHONE_NUMBER>. The eLibrary link also provides access to the
texts of formal documents issued by the Commission, such as orders,
notices, and rulemakings.
    In addition, the Commission offers a free service called
eSubscription which allows you to keep track of all formal issuances
and submittals in specific dockets. This can reduce the amount of time
you spend researching proceedings by automatically providing you with
notification of these filings, document summaries, and direct links to
the documents. Go to www.ferc.gov/docs-filing/esubscription.asp.
Finally, public meetings or site visits will be posted on the
Commission's calendar located at www.ferc.gov/EventCalendar/EventsList.aspx along with other related information.

Kimberly D. Bose,
 Secretary.
[FR Doc. 2016-11908 Filed 5-19-16; 8:45 am]
 BILLING CODE 6717-01-P