Boxing champion Floyd Mayweather Jr. and music producer DJ Khalid have both settled charges with the U.S. Securities and Exchange Commission (SEC) for failing to disclose that they were paid to promote initial coin offering (ICO) projects to the public.
The charges against the two celebrities came about after they both used various social media outlets to promote ICO projects that were in the midst of fundraising rounds.
Mayweather sent out a tweet to his nearly eight million followers regarding an ICO fundraising round being conducted by Centra Tech ICO, who reportedly paid Mayweather $100,000 to tweet about the project.
"Get yours before they sell out, I got mine…" Mayweather wrote.
The same project also paid music producer DJ Khalid to tweet about their ICO, who called the project a "game changer" while being paid an undisclosed $50,000 for the post.
Because the SEC largely classifies ICOs as securities offerings, the undisclosed celebrity endorsements were in violation of securities laws.
In a settlement with the SEC, Mayweather paid a total of $614,775 in disgorgement, penalties, and pretrial interest, while also agreeing to not promote any securities products (even disclosed ones) for the next three years.
DJ Khalid also settled the charges, agreeing to pay a total of $152,725 in disgorgement, penalties, and pre-trial interest.
Due to the complex nature of ICOs, they have become the perfect venue for groups looking to garner tremendous amounts of money from investors, while offering little more than broad roadmaps and lofty promises, making them highly risky for investors.
Despite this, they can prove to be a highly lucrative and efficient method of fundraising for trustworthy projects, and regulation of the space is critical in order to increase investor-confidence in ICO investments.
Last year, the SEC announced that they would be cracking down on paid celebrity ICO endorsements that are undisclosed, explaining that celebrities or public personas who endorse ICOs must publicly disclose all the information surrounding their relationship to the project.
"Any celebrity or other individual who promotes a virtual token or coin that is a security must disclose the nature, scope, and amount of compensation received in exchange for the promotion," the SEC said in a public statement.
Larry Cermak, the head of analysis at cryptocurrency research website The Block, explained the dangers of celebrity endorsed ICOs, noting that many unsavvy investors take their advice at face value and neglect to do prudent research into the project.
As the SEC further enforces ICOs as securities, it is likely that the tokens resulting from these offerings will also be regulated as securities products, which could spell trouble for their investors.


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Kako veš, da se bliža božič? John Lewis predstavi svoj nov oglas, ki si ga ljudje po celem svetu z velikim veseljem pogledajo. Letošnji oglas #ManOnTheMoon si je v treh dneh ogledalo preko 8.000.000 ljudi!
Lily watches on as our man goes about his chores, all alone up there. She becomes determined to get something to the moon, to send him a message and show him that someone down here is thinking of him. The music is 'Half the World Away' performed by Aurora, the original song was by Oasis.


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Дубочани () е село в Босна и Херцеговина, разположено в община Требине, в ентитета на Република Сръбска. Населението му според преброяването през 2013 г. е 18 души, от тях: 18 (100,00 %) сърби.

Население
Численост на населението според преброяванията през годините:
 1961 – 265 души
 1971 – 209 души
 1981 – 131 души
 1991 – 53 души
 2013 – 18 души

Източници

Села в община Требине

redpajama_set_name: RedPajamaWikipedia


The Korean Journal of Parasitology 2012; 50(4): 333-337.
1. Chitwood MB, Valesquez C, Salazar NG. Capillaria philippinensis sp. n. (Nematoda: Trichinellidae), from the intestine of man in the Philippines. J Parasitol 1968;54: 368-371. PMID: 5647122.
2. Whalen GE, Rosenberg EB, Strickland GT, Gutman RA, Cross JH, Watten RH. Intestinal capillariasis. A new disease in man. Lancet 1969;1: 13-16. PMID: 4178763.
3. Pradatsundarasar A, Pecharanónd K, Chintanawóngs C, Ungthavórn P. The first case of intestinal capillariasis in Thailand. Southeast Asian J Trop Med Public Health 1973;4: 131-134. PMID: 4718123.
4. Mukai T, Shimizu S, Yamamoto M, Horiuchi I, Kishimoto S, Kajiyama G. A case of intestinal capillariasis. Jpn Arch Intern Med 1983;30: 163-169.
5. Hoghooghi-Rad N, Maraghi S, Narenj-Zadeh A. Capillaria philippinensis infection in Khoozestan Province, Iran: Case report. Am J Trop Med Hyg 1987;37: 135-137. PMID: 3605494.
6. Chen CY, Hsieh WC, Lin JT, Liu MC. Intestinal capillariasis: Report of a case. Taiwan Yi Xue Hui Za Zhi 1989;88: 617-620. PMID: 2794962.
7. Youssef FG, Mikhail EM, Mansour NS. Intestinal capillariasis in Egypt: A case report. Am J Trop Med Hyg 1989;40: 195-196. PMID: 2919727.
8. Chichino G, Bernuzzi AM, Bruno A, Cevini C, Atzori C, Malfitano A, Scaglia M. Intestinal capillariasis (Capillaria philippinensis) acquired in Indonesia: A case report. Am J Trop Med Hyg 1992;47: 10-12. PMID: 1636874.
9. el Hassan EH, Mikhail WE. Malabsorption due to Capillaria philippinensis in an Egyptian woman living in Dubai, United Arab Emirates. Trans R Soc Trop Med Hyg 1992;86: 79. PMID: 1566316.
10. Lee SH, Hong ST, Chai JY, Kim WH, Kim YT, Song IS, Kim SW, Choi BI, Cross JH. A case of intestinal capillariasis in the Republic of Korea. Am J Trop Med Hyg 1993;48: 542-546. PMID: 8480863.
11. Kang G, Mathan M, Ramakrishna BS, Mathai E, Sarada V. Human intestinal capillariasis: first report from India. Trans R Soc Trop Med Hyg 1994;88: 204. PMID: 8036674.
12. Soukhathammavong P, Sayasone S, Harimanana AN, Akkhavong A, Thammasack S, Phoumindr N, Choumlivong K, Choumlivong K, Keoluangkhot V, Phongmany S, Akkhavong K, Hatz C, Strobel M, Odermatt P. Three cases of intestinal capillariasis in Lao People's Democratic Republic. Am J Trop Med Hyg 2008;79: 735-738. PMID: 18981514.
13. Dronda F, Chaves F, Sanz A, Lopez-Velez R. Human intestinal capillariasis in an area of nonendemicity: Case report and review. Clin Infect Dis 1993;17: 909-912. PMID: 8286640.
14. Hong ST, Kim YT, Choe G, Min YI, Cho SH, Kim JK, Kook J, Chai JY, Lee SH. Two cases of intestinal capillariasis in Korea. Korean J Parasitol 1994;32: 43-48. PMID: 8167107.
15. Lee SH, Rhee PL, Lee JH, Lee KT, Le JK, Sim SG, Lee SK, Kim JJ, Ko KC, Paik SW, Rhee JC, Choi KW, Lee NY, Cho SL, Ryu KH. A case of intestinal capillariasis: fourth case report in Korea. Korean J Gastroenterol 1999;34: 542-546 (in Korean).
16. Kwon Y, Jung HY, Ha HK, Lee I. An imported case of intestinal capillariasis presenting as protein-losing enteropathy. Korean J Pathol 2000;34: 235-238 (in Korean).
17. Vasantha PL, Girish N, Leela KS. Human intestinal capillariasis: A rare case report from non-endemic area (Andhra Pradesh, India). Indian J Med Microbiol 2012;30: 236-239. PMID: 22664447.
18. Attia RA, Tolba ME, Yones DA, Bakir HY, Eldeek HE, Kamel S. Capillaria philippinensis in Upper Egypt: has it become endemic? Am J Trop Med Hyg 2012;86: 126-133. PMID: 22232463.
19. Saichua P, Nithikathkul C, Kaewpitoon N. Human intestinal capillariasis in Thailand? World J Gastroenterol 2008;14: 506-510. PMID: 18203280.
20. Lu LH, Lin MR, Choi WM, Hwang KP, Hsu YH, Bair MJ, Liu JD, Wang TE, Liu TP, Chung WC. Human intestinal capillariasis (Capillaria philippinensis) in Taiwan. Am J Trop Med Hyg 2006;74: 810-813. PMID: 16687685.
21. Belizario VY, de Leon WU, Esparar DG, Galang JM, Fantone J, Verdadero C. Compostela Valley: A new endemic focus for capillariasis philippinensis. Southeast Asian J Trop Med Public Health 2000;31: 478-481. PMID: 11289005.
22. Cross JH. In Farthing MJG, Keusch GT, Wakelin D eds, Capillaria philippinensis and Trichostrongylus orientalis. Enteric infection 2. Intestinal helminthes. 1995, London, UK. Chapman & Hall Medical. pp 151-164.


Check us out this Wednesday night!
At River Valley, we walked alongside youth as they navigate tough questions, explore their faith and wrestle with how to live it out. They will find an honest, friendly and fun group of peers at different points in their walk with Christ. They will have opportunities to develop meaningful relationships and discover God's incredible love for them. Our YOUTH team members are simply the BEST! We are here to support youth and their families grow in Christlikeness and experience the incredible life God has planned for them.
*NOTE: 9th graders are encouraged to choose the group that fit them best.


text:
All Sectors / Education
The Team @ Satis Education
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The Fallibroome Trust is a ten school multi-academy education trust working tirelessly for the children in its three secondary and seven primary schools. All schools are based in Cheshire.
Our core purpose is to create the conditions for our students to develop the skills, knowledge, and aptitudes to enable them to thrive as life-long learners in a complex world. We do this by delivering high quality teaching and learning with innovative approaches to curriculum design.
The Trust is looking for a new CEO for the next phase of its development, following the retirement of our current leader. We are stable at 10 schools but evaluating organic growth to include a fourth secondary school. We want to actively explore the educational and community benefits of creating cross-phase hubs around our family of schools in Macclesfield, Winsford and Congleton.
We are looking for a strategic, pragmatic leader who can demonstrate the impact of their leadership on schools, pupils, parents, staff, and communities. Evidence of your ability to lead, enable and empower those around you will be key to your success and the ongoing success of the Trust.
The Trust needs a CEO with a deep theoretical and practical knowledge of school improvement who will develop a clear blueprint for delivering school improvement. We are looking for candidates who can evidence the impact they have in their current setting, ideally with cross phase experience.
Autonomy is fundamental to the Trust ethos, we want our schools to respond to the needs of their school community with local understanding and local knowledge, whilst sharing best practice. The CEO and leadership team strike an effective balance between autonomy and standardisation in all areas of Trust delivery and cultivate a spirit of generosity and mutual support.
We have been a System Leader in key areas of national strategy and seek to strengthen our place in the education landscape with this appointment. For instance: one of the Trust schools has recently been awarded Science Learning Partnership and Computing Hub status and another is a former Teaching School. The Trust is a Delivery Partner for the new ECF and NPQ programmes and we want to capitalise on the opportunities these bring to our students and staff.
If you are a strategic leader and committed educationalist; able to demonstrate highly developed school improvement knowledge; have a clear vision for securing our place in the education landscape; are able to manage risk and financial complexity and have the personal credibility required to lead a dynamic organisation – please get in touch.
For more information, visit www.joinfallibroome.co.uk
For an informal and confidential conversation please contact Laura McGunigle at Satis Education on 07931 384683 or laura@satiseducation.co.uk
The closing date for applications is: 7 January 2022 at 12:00pm
Interviews commence: w/c 17 January 2022
The Fallibroome Trust is committed to the safeguarding and welfare of children and young people and expects all staff and volunteers to share this commitment. This post is subject to satisfactory Disclosure and Barring Service (DBS) Enhanced Disclosure Certificate. Stringent Checks and Vetting Procedures apply to all posts as part of our Safeguarding Policy.
Chief Executive Officer Full Time
ategi Wales, UK
ategi is a not for profit organisation with over 25 years' experience in helping people live their lives their way....
CEO Full Time
The Bureau of Investigative Journalism London, UK
About the role The Bureau of Investigative Journalism is seeking a new Chief Executive and Editor-in-Chief to steer the next...
Belfast City Council Belfast, UK £130000 - £147000
It is no exaggeration to state that Belfast is a city transformed and has become one of the most attractive...
Children with Cancer UK Greater London, UK
Responsible to the board of trustees as a whole, but usually line managed by the chair of trustees on behalf of...
PORTOBELLO BUSINESS CENTRE London, UK £60000 - £70000
About Us Portobello Business Centre (PBC) is an independent social enterprise that operates as a not-for-profit organisation. Founded in the...
Age UK York York, UK
Age UK York is looking to appoint a new Chief Executive Officer. This is a great opportunity for a dynamic,...
Expiration date: March 13, 2022
Location: St Helens, Saint Helens, UK
Job Title: Chief Executive Officer
Salary: £125,000

redpajama_set_name: RedPajamaCommonCrawl


Closer look: Rohani (fourth from left) and Kota Damansara MP Halimaton Saadiah Bohan (second from left) looking at the faulty railing that cost the life of the five-year-old at the PPR flats in Section 8, Kota Damansara.
PETALING JAYA: Wednesday was just like any other day for 15-year-old Nur Diana Alden – until she returned from school and saw her youngest brother sprawled and bleeding on the ground of their block of flat in Kota Damansara.
The Form Three student's instinct was to rush over to her five-year-old brother, but she was stopped by several others and told to get her mother.
"I could see that his chest was still heaving," Nur Diana recalled.
"The ambulance had not arrived yet. But they wouldn't let me get near him," she said, adding that she immediately rushed upstairs to inform her mother.
Muhammad Zul Hazriq Danish Alden was believed to have slipped through a gap in the railing of their sixth storey unit of the People's Housing Projects (PPR) flat in Section 8 while playing with his friends and fell at about 3.15pm.
He died from head and other injuries.
The wire mesh used to close the gap in the railing at the flats.
Witnesses said the boy, who was close to his eldest sister, screamed for Nur Diana as he was falling.
Women, Family and Community Development Minister Datuk Seri Rohani Abdul Karim visited the victim's mother Norsahura Sahara Mohamad, 35, and her family yesterday to offer counselling service and a cash donation.
"This type of trauma usually cuts deep and lasts long. Whenever the mother is ready, the Welfare Department's counsellor will help her and the whole family, especially the brother who witnessed the incident," she said.
She also urged the public to stop accusing the mother of being negligent.
"This is a very unfortunate incident," Rohani said. "The mother told me that her baby boy was not the type to leave the house without his brother.
"I told her not to blame herself. And we, the public, must refrain from pointing fingers," she added.
Rohani also called on the residents to look out for each other and notify the building management if they see faulty railings or any type of breakdowns that could pose a danger to residents, especially children.
The flat's residents association chairman Johari Nander said a five-year-old boy from a different block also fell to his death from the railings of the 14th floor in 2013.
"After that incident, I wrote to the city council and they sent a repairman. I suppose the repairs were not good enough," he said.


176 people in our community are currently praying with you.
In the course of time, Amnon son of David fell in love with Tamar, the beautiful sister of Absalom son of David. Amnon became frustrated to the point of illness on account of his sister Tamar, for she was a virgin, and it seemed impossible for him to do anything to her.
Now Amnon had a friend named Jonadab son of Shimeah, David's brother. Jonadab was a very shrewd man. He asked Amnon, "Why do you, the king's son, look so haggard morning after morning? Won't you tell me?"
Amnon said to him, "I'm in love with Tamar, my brother Absalom's sister."
"Go to bed and pretend to be ill," Jonadab said. "When your father comes to see you, say to him, 'I would like my sister Tamar to come and give me something to eat. Let her prepare the food in my sight so I may watch her and then eat it from her hand.' "
So Amnon lay down and pretended to be ill. When the king came to see him, Amnon said to him, "I would like my sister Tamar to come and make some special bread in my sight, so I may eat from her hand."
David sent word to Tamar at the palace: "Go to the house of your brother Amnon and prepare some food for him." So Tamar went to the house of her brother Amnon, who was lying down. She took some dough, kneaded it, made the bread in his sight and baked it.
This doesn't seem to be headed for a happy ending, at this point. Amnon is in love with his half-sister and seems willing to plot to be alone with her. And he has just the kind of friend nobody needs, Jonadab, a clever and unscrupulous person willing to help Amnon further his unholy desires — in such a dangerous situation, hanging out with "the wrong crowd" is fuel on the fire.
We shall see how this turns out tomorrow.


The Duke Start-Up Challenge provides an outlet for entrepreneurial collaboration among Duke students and faculty, with a $50K grand prize. The competition spans the academic year and includes sub-competitions for an elevator pitch, an executive summary and a business plan.
As an alternative program of study for those students whose academic interests are not met through our existing majors, minors and certificates, Program II offers the opportunity to create a tailored curriculum.
The Duke Smart Home Program is a research-based approach to smart living sponsored by the Pratt School of Engineering. Primarily focused on undergraduates, it encourages students from different academic disciplines to form teams and explore smart ways to use technology in the home.
One of the hallmarks of a Duke education is the ability to translate theory into practice. Supporting innovation and entrepreneurship at Duke is a way of helping faculty, staff and students transform creative ideas from the classroom or the laboratory into real-world applications.
T'87, co-founder of Melissa and Doug Toy co.
Success and failure. We expect both.
Duke enrolls multi-faceted, multi-talented students.
Every year we are fortunate enough to receive applications from the most accomplished students in the world. We're most interested in those students who will challenge us, make original discoveries, use their leadership skills in new venues and take advantage of the depth as well as the breadth of Duke's offerings.
We want to find the ambitious and the curious—students who want to tackle issues head-on and are open to change. Duke is a community of talented learners, and we look for people who have unique qualities, who can challenge us as much as we challenge them. We want some bumps. We want some students who are well-rounded, some with sharp edges. We want people who are not afraid to undertake things that are messy, complex and extremely difficult to do well—because they love it.
We like students who make intelligent and interesting mistakes, students who understand that only in risking failure do we become stronger, better and smarter.
Our 6,400 undergraduates are among the most engaged, brilliant, passionate and funny students in the world. Are you? Are you ready to take on challenges that you aren't quite sure you can meet? That's what Duke is, and that's what we see in our students. We want you to make real discoveries, serious contributions—even change the world. We want to help you achieve your very best. That kind of openness provides a valuable undergraduate education and it's part of what we look for in our applicants.
The Walk Again Project is a multinational collaborative effort to free paralyzed patients from the confines of their physical bodies through breakthroughs in neuroscience.
Led by the Duke Center for Neuroengineering, Walk Again is developing a high-performance brain-controlled prosthetic device that may enable patients to escape their wheelchairs.
Over the past decade, neuroscientists at Duke have helped to develop the field of brain-machine interface (BMI) into one of the most promising areas of basic and applied research in modern neuroscience.
Student Story Miguel Nicolelis, M.D., Ph.D.


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Boys basketball: With Adrian Griffin Jr. back, Stepinac gets hot, rolls in playoff opener
NEW YORK — When Stepinac gathered Friday afternoon for practice, it was the full team's first workout together since December.
"The first time we had all 14 guys on the roster participating in practice," coach Pat Massaroni said. "It felt a little weird."
The getting-to-know-you-again period didn't last long. In Sunday's CHSAA playoff opener, Stepinac found its rhythm just before halftime and ran past Mount St. Michael 99-62 in an Archdiocesan quarterfinal at St. Raymond.
R.J. Davis had a triple-double, finishing with 22 points, 10 rebounds and 10 assists, and fellow senior Luke Fizulich added 21 points on the strength of seven 3-pointers.
Fizulich's shooting fueled a game where Stepinac buried 16 shots from beyond the arc, but the Crusaders' hot shooting coincided with the return of five-star junior Adrian Griffin Jr., who played for the first time since suffering a sprained knee on Jan. 3.
The 6-foot-7 Duke commit didn't start and was on a minutes' restriction, but he still finished with 13 points and 11 rebounds in 14 minutes.
"Just coming out here and playing with my teammates once again, it was just fun," said Griffin Jr., who had his first shot blocked before settling in with seven second-quarter points. "We had fun out there. I just told myself to stay mentally ready and make sure my body is right before I come back."
Griffin was originally supposed to miss just three weeks, but his return was delayed when his doctor deemed his knee wasn't fully stable. He wore a brace Sunday and moved gingerly early before find more explosiveness as the game went on.
Griffin said Stepinac's hot shooting was partly responsible for his slow start. Fizulich, Matt Brand (11 points) and Sam Gibbs (9) combined to hit 13 of the team's 3-pointers.
"Once I got in, everyone was hot," Griffin said. "I just wanted to share the ball and get my teammates open. I just wanted to keep sharing the wealth."
Davis picked up his production after his teammates helped open the floor as well. He didn't attempt a shot for more than six minutes against Mount St. Michael's box-and-one, but he caught fire late in the first half, including a running 3-pointer off a steal to beat the buzzer.
Davis later completed his triple-double midway through the fourth quarter when he dropped a pass to Malcolm Chimezie for a dunk.
"Our shooters did a great job of stepping into their shot and being ready to shoot," said Davis, who missed three games late in the regular season due to a cut under his left eye that required eight stitches. "Luke. Sam. Matt. The vibe and energy we all felt, the positivity, I think that's why the chemistry was there all day."
Stepinac (16-9), the No. 2 seed, will meet No. 3 Cardinal Hayes in Tuesday's semifinals at Mount St. Michael at either 6 or 7:30 p.m.
Iona Prep can't close late
Iona Prep scored the first 10 points Sunday, then rallied to take the lead in the fourth quarter after falling behind by as many as seven points in the third. However, the Gaels couldn't execute late in a 78-69 to Monsignor Scanlan in their Archdiocesan quarterfinal at St. Raymond.
Iona Prep (12-13) earned a 53-52 lead on sophomore R.J. Greene's two free throws early in the final period. Senior Keeshawn Jones later tied the game 59-59 with 4:28 to go, but Scanlan (14-11) scored five straight and had an 11-3 run to take control for good.
"We had some poor offensive possessions where we got away from what we do," Iona Prep coach Steve Alvarado said. "When we execute in the offensive end, we usually get pretty good shots. But then guys want to be heroes and they get away from stuff that can get us a quality shot."
Scanlan hurt the Gaels on the offensive glass late in the game, especially senior Koby Brea, a 6-foot-6 wing committed to Dayton. Brea and fellow second-team all-league guard Joe Munden both helped generate the offense, which allowed Scanlan to pull away.
Fellow senior Rodney Bailey also banked in a shot from beyond halfcourt for a 52-48 lead at the end of the third quarter.
Jones led Iona Prep with 17 points, seven rebounds, four assists and three steals. Greene added 16 points and senior Aidan Hilderbrand had 12 points and eight rebounds.
"We knew if we played our game that we'd give ourselves a chance," Alvarado said. "We generally do, it's always for us a the end of the game if we're going to execute."
The Gaels will be idle for more than a week before returning to action in the second round of the CHSAA intersectional tournament on either March 4 or 5 at a site to be determined.


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Justia Regulation Tracker Agencies And Commissions Securities And Exchange Commission Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Approval to a Proposed Rule Change Regarding the Extension and Expansion of the Penny Pilot Program, 56403-56406 [E7-19495]
Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Approval to a Proposed Rule Change Regarding the Extension and Expansion of the Penny Pilot Program, 56403-56406 [E7-19495]
Download as PDF Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56565; File No. SR–CBOE– 2007–98] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Approval to a Proposed Rule Change Regarding the Extension and Expansion of the Penny Pilot Program September 27, 2007. I. Introduction On August 14, 2007, the Chicago Board Options Exchange, Incorporated (''CBOE'' 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 its rules to extend and expand the pilot program to quote certain options in smaller increments (''Pilot Program'' or ''Pilot''). The proposed rule change was published for comment in the Federal Register on August 22, 2007.3 The Commission received three comment letters on the proposed rule change.4 The Exchange responded to the Citadel Letter on September 21, 2007.5 This order approves the proposed rule change. II. Description of the Proposal Currently, the six options exchanges, including CBOE, participate in the thirteen class Pilot Program,6 which is scheduled to expire on September 27, 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 56276 (August 17, 2007), 72 FR 47096. 4 See letter to Nancy Morris, Secretary, Commission, from John C. Nagel, Director & Associate General Counsel, Citadel, dated September 12, 2007 (''Citadel Letter''); letter to Nancy M. Morris, Secretary, Commission, from Michael T. Bickford, Senior Vice President, Options, American Stock Exchange LLC, dated September 19, 2007 (''Amex Letter''); and letter to Nancy M. Morris, Secretary, Commission, from Andrew B. Stevens, Assistant General Counsel, NYSE Arca, Inc., dated September 26, 2007 (''NYSE Arca Letter''). 5 See letter to Nancy M. Morris, Secretary, Commission, from Edward J. Joyce, President and Chief Operating Officer, CBOE, dated September 21, 2007 (''CBOE Response''). 6 The thirteen option classes currently in the Pilot are: Ishares Russell 2000 (IWM); NASDAQ–100 Index Tracking Stock (QQQQ); SemiConductor Holders Trust (SMH); General Electric Company (GE); Advanced Micro Devices, Inc. (AMD), Microsoft Corporation (MSFT); Intel Corporation (INTC); Caterpillar, Inc. (CAT); Whole Foods Market, Inc. (WFMI); Texas Instruments, Inc. (TXN); Flextronics International Ltd. (FLEX); Sun Microsystems, Inc. (JAVA); and Agilent Technologies, Inc. (A). rwilkins on PROD1PC63 with NOTICES 2 17 VerDate Aug<31>2005 18:31 Oct 02, 2007 Jkt 211001 2007.7 The Exchange proposes to amend its rules to extend and expand the Pilot Program to include fifty-two additional classes, in two phases. Phase One will begin on September 28, 2007 and will continue for six months, until March 27, 2008. Phase One will add the following twenty-two options classes to the Pilot: SPDRs (SPY); Apple, Inc. (AAPL); Altria Group Inc. (MO); Dendreon Corp. (DNDN); Amgen Inc. (AMGN); Yahoo! Inc. (YHOO); QUALCOMM Inc. (QCOM); General Motors Corporation (GM); Energy Select Sector (XLE); DIAMONDS Trust, Series 1 (DIA); Oil Services HOLDRs (OIH); NYSE Euronext, Inc. (NYX); Cisco Systems, Inc. (CSCO); Financial Select Sector SPDR (XLF); AT&T Inc. (T); Citigroup Inc. (C); Amazon.com Inc. (AMZN); Motorola Inc. (MOT); Research in Motion Ltd. (RIMM); Freeport-McMoRan Copper & Gold Inc. (FCX); ConocoPhillips (COP); and Bristol-Myers Squibb Co. (BMY). These twenty-two options classes are among the most actively-traded, multiply-listed options classes, and account, together with the current thirteen Pilot classes, for approximately 35% of total industry trading volume.8 Phase Two will begin on March 28, 2008, and will continue for one year, until March 27, 2009. During the second phase, the number of options classes trading in pennies will again increase. The Exchange proposes to add twentyeight more classes from among the most actively-traded, multiply-listed options classes.9 The minimum price variation for all classes to be included in the Pilot Program, except for the QQQQs, will continue to be $0.01 for all quotations in option series that are quoted at less than $3 per contract and $0.05 for all quotations in option series that are quoted at $3 per contract or greater. The QQQQs will continue to be quoted in $0.01 increments for all options series. CBOE also proposes quote and trade two index options, the Mini-SPX Index Options (XSP) and options on the Dow Jones Industrial Average (DJX), in the same minimum increments as the SPY 7 The Pilot Program began on January 26, 2007 and is currently set to expire on September 27, 2007. See Securities Exchange Act Release No. 56139 (July 26, 2007), 72 FR 42159 (August 1, 2007) (SR–CBOE–2007–86). See also Securities Exchange Act Release No. 55154 (January 23, 2007), 72 FR 4743 (February 1, 2007) (SR–CBOE–2006–92) (''Original Pilot Program Approval Order''). 8 This volume is based on the Options Clearing Corporation (''OCC'') year-to-date trading volume data through July 16, 2007. 9 The Exchange has committed to file a proposed rule change under Section 19(b)(3)(A) of the Act to identify the options classes to be included in the second expansion. PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 56403 and DIA options, which will be included in Phase One of the Pilot. XSP options are based on the S&P 500 Index; SPY options are based on the SPDR exchange-traded fund (''ETF''), which is designed to track the performance of the S&P 500 Index. DJX options are based on the Dow Jones Industrial Average (''DJIA''); DIA options are based on an ETF designed to track the performance of the DJIA. CBOE believes it is important that these products have the same minimum increment for consistency and competitive reasons. During the extended and expanded Pilot Program, the CBOE commits to deliver four reports to the Commission. Each report will analyze the impact of penny pricing on market quality and options system capacity. The first report will analyze the penny pilot results from May 1, 2007 through September 27, 2007; the second will analyze the results from September 28, 2007 through January 31, 2008; the third will analyze the results from February 1, 2008 through July 31, 2008; and the fourth and final report will examine the results from August 1, 2008 through January 31, 2009. These reports will be provided to the Commission within thirty days of the conclusion of the reporting period. III. Discussion After careful review of the proposal, the comment letters, and the CBOE Response, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.10 In particular, the Commission finds that the proposal is consistent with Section 6(b)(5) of the Act,11 which requires, among other things, that the rules of an exchange be 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. On June 28, 2005, the Pacific Exchange (now known as NYSE Arca) announced its intention to begin quoting and trading all listed options in penny increments.12 In June 2006, to facilitate the orderly transition to quoting a limited number of options in penny increments, Chairman Cox sent a 10 In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 11 15 U.S.C. 78f(b)(5). 12 PCX News Release, ''Pacific Exchange to Trade Options in Pennies,'' June 28, 2005. E:\FR\FM\03OCN1.SGM 03OCN1 56404 Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Notices rwilkins on PROD1PC63 with NOTICES letter to the six options exchanges urging the exchanges that chose to begin quoting in smaller increments to plan for the implementation of a limited penny pilot program to commence in January 2007.13 All six of the options exchanges submitted proposals to permit quoting a limited number of classes in smaller increments, and, in January 2007, the Commission approved those proposals to implement the current Pilot Program.14 The exchanges have now submitted proposals to extend and further expand the Pilot. The continued operation and phased expansion of the Pilot Program will provide further valuable information to the exchanges, the Commission, and others about the impact of penny quoting in the options market. In particular, extending and expanding the Pilot Program as proposed by CBOE will allow further analysis of the impact of penny quoting in the Pilot classes over a longer period of time on, among other things: (1) Spreads; (2) peak quote rates; (3) quote message traffic; (4) displayed size; (5) ''depth of book'' liquidity; and (6) market structure. CBOE has committed to provide the Commission with periodic reports, which will analyze the impact of the expanded Pilot Program. The Commission expects the Exchange to include statistical information relating to these factors in its periodic reports. An analysis of the current Pilot shows that the reduction in the minimum quoting increment has resulted in narrowing the average quoted spreads in all classes in the Pilot.15 A reduction in quoted spreads means that customers and other market participants may be able to trade options at better prices. The reduction in spreads also has led the exchanges to reduce or eliminate their exchange-sponsored payment-for13 Commission Press Release 2006–91, ''SEC Chairman Cox Urges Options Exchanges to Start Limited Penny Quoting,'' June 7, 2006. 14 See Securities Exchange Act Release Nos. 55154 (January 23, 2007), 72 FR 4743 (February 1, 2007) (SR–CBOE–2006–92); 55162 (January 24, 2007), 72 FR 4738 (February 1, 2007) (Amex–2006– 106); 55155 (January 23, 2007), 72 FR 4741 (February 1, 2007) (SR–BSE–2006–49); 55161 (January 24, 2007), 72 FR 4754 (February 1, 2007) (SR–ISE–2006–62); 55156 (January 23, 2007), 72 FR 4759 (February 1, 2007) (SR–NYSEArca–2006–73); and 55153 (January 23, 2007), 72 FR 4553 (January 31, 2007) (SR–Phlx–2006–74). As noted above, supra note 7 and accompanying text, the current Pilot is scheduled to expire on September 27, 2007. 15 See CBOE, Penny Pilot Report, June 1, 2007 (''CBOE Report''). See also Amex, Penny Quoting Pilot Program Report, June 8, 2007 (''Amex Report''); Box, Penny Pilot Data Review, June 18, 2007 (''Box Report''); ISE, Penny Pilot Analysis, May 23, 2007 (''ISE Report''); NYSE Arca Options, Understanding Economic and Capacity Impacts of the Penny Pilot, May 31, 2007 (''NYSE Arca Report''); and Phlx, Options Penny Pricing Pilot Report, May 31, 2007 (''Phlx Report''). VerDate Aug<31>2005 18:31 Oct 02, 2007 Jkt 211001 order-flow programs.16 The Commission believes that the proposed rule change is designed to continue the narrowing of spreads. The Commission notes that, as anticipated, the Pilot has contributed to the increase in quotation message traffic from the options markets. However, while the increase in quotation message traffic is appreciable, it has been manageable by the exchanges and the Options Price Reporting Authority, and the Commission did not receive any reports of disruptions in the dissemination of pricing information as a result of quote capacity restraints. Although the Commission anticipates that the proposed expansion of the Pilot Program may contribute to further increases in quote message traffic, the Commission believes that CBOE's proposal is sufficiently limited such that it is unlikely to increase quote message traffic beyond the capacity of market participants' systems and disrupt the timely receipt of quote information. The Commission also notes that CBOE has adopted and will continue to utilize quote mitigation strategies that should mitigate the expected increase in quote traffic.17 Overall trading activity in the options markets is very concentrated, with a relatively few options classes accounting for a significant share of total options volume. CBOE's proposal, which will expand the Pilot to include a limited number of options from among the most actively-traded classes (based on average trading volume), will provide an opportunity for reduced spreads where the greatest amount of trading occurs, thus maximizing the economic benefit of the Pilot while minimizing the impact of increased quote traffic. One commenter suggests that relative trading volume is the measure that should be used to assess the success of quoting in smaller increments.18 The commenter reported the percentage 16 See Securities Exchange Act Release Nos. 55328 (February 21, 2007), 72 FR 9050 (February 28, 2007) (SR–Amex–2007–16); 55197 (January 30, 2007), 72 FR 5772 (February 7, 2007) (SR–BSE– 2007–02); 55265 (February 9, 2007), 72 FR 7697 (February 16, 2007) (SR–CBOE–2007–11); 55271 (February 12, 2007), 72 FR 7699 (February 16, 2007) (SR–ISE–2007–08); 55223 (February 1, 2007) 72 FR 6306 (February 9, 2007) (SR–NYSEArca–2007–07); and 55290 (February 13, 2007), 72 FR 8051 (February 22, 2007) (SR–Phlx–2007–05). 17 See Securities Exchange Act Release Nos. 55154 (January 23, 2007), 72 FR 4743 (February 1, 2007) (SR–CBOE–2007–92), 55772 (May 16, 2007), 72 FR 28732 (May 22, 2007) (SR–CBOE–2007–45), and 55853 (June 4, 2007), 72 FR 32151 (June 11, 2007) (SR–CBOE–2007–56). Further, the Commission notes that the other options exchanges participating in the Pilot also have adopted and will continue to utilize quote mitigation strategies. 18 See Citadel Letter, supra note 4. PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 change in the relative trading volume before and after the Pilot for each of the thirteen classes.19 The commenter's data shows an increase in relative trading volume for QQQQ, IWM, SHM, AMD, and SUNW, and a decrease in relative trading volume for MSFT, INTC, GE, TXN, A, CAT, WFMI and FLEX. The commenter believes the data shows that the Pilot works well for index and sector products, but smaller increments caused a decline in the relative trading volume for single stock options. The commenter argues that much of the decrease in relative trading volume in Pilot classes is a symptom of the decrease in displayed size available for those classes. On the basis of a decline in the relative trading volume, the commenter argues that single stock option classes should be removed from the Pilot and replaced with liquid index or sector option classes. Much of the recent growth in options volume has been in the large index and ETF products, such as the SPX, SPY, and the QQQQ. As their relative trading volume increases, the aggregate relative trading volume of other products necessarily declines (although actual volume levels may increase). For example, the SPX, SPY, QQQQ, and IWM accounted for 16.1% of total options volume in the four months before the pilot and rose to 21.7% of volume in the five months after the pilot.20 By definition, the relative trading volume of all other classes (Pilot and non-Pilot) falls from 83.9% in the pre-Pilot period to 78.3% in the postPilot period. Using the commenter's numerical approach, the relative market share of SPX, SPY, QQQ, and IWM increased by 34.8% ((21.7%/16.1%)–1). In contrast, the relative trading volume of all other classes fell by 6.7% (78.3/ 83.9%)–1) in the post-Pilot period compared to the pre-Pilot period. Thus, in addition to the random variation in relative trading volume that occurs over time, there was an overall decline in the relative trading volume of issues outside the four largest index and ETF options, although their actual aggregate volume levels increased. 19 The commenter measures the relative trading volume of a class as that class' trading volume as a percentage of total OCC volume. The change in relative trading volume is the relative trading volume from date of entrance into the Pilot to August 27, 2007 divided by the relative trading volume from November 1, 2006 through entrance in the Pilot. 20 The pre-Pilot period consists of the four months before the Pilot commenced (October 1– January 25, 2007) and the post-Pilot period consists of the five months after the Pilot commenced (February 9, 2007–June 30, 2007). The two week period when the Pilot classes were introduced are excluded from the analysis. E:\FR\FM\03OCN1.SGM 03OCN1 Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Notices rwilkins on PROD1PC63 with NOTICES More specifically, for the 100 and 500 most active classes,21 relative trading volume fell for 63% and 56%, respectively, of non-Pilot classes. In the Pilot classes, seven, or 54%, of the thirteen Pilot classes had a decline in market share and seven, or 70%, of the ten single stock option classes had a decline in relative trading volume.22 The Commission does not believe that the data at this time supports the conclusion that a decrease in relative trading volume in the Pilot classes is due to a reduction of the minimum quoting variation. In fact, the data demonstrates that declines in relative trading volume were not limited to stocks included in the Pilot, and substantial declines in relative trading volume, as defined by the commenter, describe a large portion of classes that were not in the Pilot. Therefore, based on the data reviewed to date, the Commission cannot conclude that the Pilot has had an adverse impact on volume in the Pilot securities. Therefore, the Commission believes that CBOE's proposal to select additional classes from among the most activelytraded options has a reasonable basis and is consistent with the Act.23 The Commission believes that the impact of smaller increments on trading volume is one of the more difficult aspects of the Pilot to assess, and notes that the exchange reports did not show a clear change in trading volume.24 While some industry participants expressed disappointment that volume had not increased, the bid-ask spread is only one factor that influences volume. Other factors that impact option volume are trading activity in the underlying security and in related products, volatility in the market and in the underlying security, as well as firm and market specific information and events. The Commission believes that the addition of more securities in the next phase will increase the sample size and 21 All of the thirteen Pilot classes fall into the 500 most actively-traded, and nine are within the 100 most actively-traded group. 22 The change in relative trading volume for the median stock for the top 500 (100) classes is ¥8% (¥13%), compared to a change of ¥3% for the thirteen Pilot stocks and a change of ¥24% for the ten single stock options. The Commission notes that, with a Pilot sample size of thirteen or ten, these statistics will be highly sensitive to the performance of one or two classes. 23 The Commission notes that the classes the commenter specifically recommends for inclusion in the expanded Pilot—SPY, DIA, OIH, XLF, and XLE—are among classes proposed by CBOE to be included in the Pilot Program beginning September 28, 2007. 24 See Amex Report, supra note 15, at 6–7; CBOE Report, supra note 15, Attachment at pages 5–6; ISE Report, supra note 15, at 17–20; and NYSE Arca Report, supra note 15, at 15. VerDate Aug<31>2005 18:31 Oct 02, 2007 Jkt 211001 should help in further analysis of such issues. The commenter also expressed concern that the quoted size in the Pilot classes is dropping to levels that are ''sub-optimal'' or ''inadequate'' for institutional size orders, and recommended that the Commission carefully evaluate the impact of penny quoting on liquidity before allowing the exchanges to expand the Pilot.25 The Commission fully agrees that the impact of the Pilot on displayed size, as well as non-displayed ''depth of book,'' and the impact of any decreased size on market and execution quality, is an area that should be carefully analyzed as the Pilot continues. The Commission also recognizes that the exchange reports show there has, in fact, been a reduction in the displayed size available in the Pilot classes.26 The Commission is not at this time, however, able to conclude that this decrease has caused a decrease in trading volume or relative trading volume, or other harm to the market, as a result of the Pilot Program. The Commission does, however, expect CBOE to include in its reports an analysis of the market impact of reducing the minimum price increment, particularly on the ability of market participants to effectively execute largesized orders. The Commission will analyze the information provided in the Exchange's reports, in conjunction with the information provided by other exchanges and market participants, to inform its evaluation and consideration of any exchange's proposed further expansion of the Pilot. The commenter further noted, to the extent that additional size may be available below the best bid or offer,27 options market participants discount the value of such liquidity because it is generally not transparent to the market and is not easily accessible even if displayed.28 The commenter noted that, 25 See Citadel Letter, supra note 4. Amex Report, supra note 15, at 6; BOX Report, supra note 15, at 2; CBOE Report, supra note 15, at Attachment page 2; ISE Report, supra note 15, at 7–8; NYSE Arca Report, supra note 15, at 9–10; and Phlx Report, supra note 15, at 3–4 and 6–7. 27 Only two exchanges provided information on ''depth of book'' on their markets in the Pilot classes. See NYSE Arca Report at 8–10, supra note 15, and ISE Report, supra note 15, at 9. ISE reported that the average total size of all quotes on its book at all price levels, weighted for volume, for all thirteen Pilot classes was reduced by 61%. See ISE Report, supra note 15, at 9. NYSE Arca compared liquidity resident in its book within the legacy minimum price variation to pre-Pilot top of book liquidity and reported that volume weighted liquidity across all thirteen Pilot classes decreased 1%. See NYSE Arca Report, supra note 15, at 8. 28 See Citadel Letter, supra note 4. The Commission notes that currently only NYSE Arca makes available quotes and orders on its book 26 See PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 56405 unlike in the equities markets, market participants cannot quickly sweep multiple markets through multiple price levels to reach such additional liquidity. The Commission encourages the exchanges to consider measures that would facilitate access to depth of book quotes. The commenter also recommends removing the poorest performing single stock names from the Pilot and replacing them with liquid index or sector products.29 The Commission agrees that there should be a mechanism for removing option classes from the Pilot. The Commission specifically requested comment in the notice of CBOE's proposal on: (1) Whether there are circumstances under which classes included in the Pilot should be removed; (2) if so, what factors should be considered in making the determination to remove a class from the Pilot, specifically whether an objective standard should be used or whether a more subjective analysis should be allowed; (3) what concerns might arise by removing a class from the Pilot, and how could such concerns be ameliorated; (4) how frequently should such an analysis be undertaken, or should the evaluation be automated; and (5) if a class is to be removed from the Pilot, how much notice should be given to market participants that the quoting increment will change, but did not receive any comments. The Commission will continue to consider comments on how to fairly and objectively determine if a class should be removed from the Pilot. Finally, to the extent that the Exchange files a proposed rule change to further expand the Pilot, the Commission urges it to include in any such proposal a methodology for removing classes from the Pilot. below the NBBO. See http://www.nysedata.com/ nysedata/InformationProducts/ArcaBook/tabid/ 293/Default.aspx. The Commission anticipates that to the extent this display of information proves to be valuable to the options market as a whole, other exchanges may choose to make this information available as well. 29 See supra, note 23 and Citadel Letter, supra note 4. The Exchange also supports removing from the Pilot option classes that, after analysis and review, are found not to be good choices for quoting in penny increments, and recommends replacing them with other classes that are suitable for quoting in a penny increment. CBOE notes that data collected to date clearly suggests that some Pilot classes may not be good candidates for penny quoting. CBOE also notes that, in its Pilot report to the Commission, it stated that further analysis must be conducted over a longer period of time before drawing any firm conclusions as to the impact of quoting in penny increments, and to determine which classes benefit from penny quoting compared to those that do not. See CBOE Response, supra note 5. E:\FR\FM\03OCN1.SGM 03OCN1 56406 Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Notices rwilkins on PROD1PC63 with NOTICES Finally, the Commission received two comment letters on CBOE's proposal to quote and trade XSP and DJX in the same minimum increments as the SPY and DIA options, for consistency and competitive reasons.30 One commenter argues that it is inconsistent with the Pilot Program and the purpose and objectives of the Act to permit CBOE to quote singly-listed products in penny increments.31 Specifically, the commenter believes that it is inconsistent with the Pilot Program and the advancement of competition to allow CBOE to unilaterally expand the Pilot Program by including two products subject to exclusive licensing agreements.32 The Commission does not believe that the issue of exclusive licensing agreements is raised by this proposed rule change. CBOE already lists and trades XSP and DJX options, pursuant to Commission approval, and is only proposing in this filing to change the minimum price variation for those options. The Commission believes that, because XSP and DJX are designed to track the same indexes as multiplylisted options included in the Pilot, CBOE's proposal to quote and trade XSP and DJX in the same minimum increments as classes in the Pilot is consistent with the Act. The commenter also believes that, based on CBOE's rationale for quoting XSP and DJX in the same increments as SPY and DIA, the Exchange should have proposed to also quote the S&P 500 index (SPX) in smaller increments because it is a ''related'' product.33 CBOE argues that the XSP and DJX are competitive products to the SPY and DIA, not merely that they are ''related products.'' The Commission does not believe that CBOE's decision not to propose reducing the minimum increment in SPX (or any other product that is based on the same index as a class included in the Pilot) makes its proposal to reduce the minimum increment for XSP and DJX inconsistent with the Act. Moreover, the Commission does not believe that CBOE's proposal to quote two additional singly-listed classes in smaller increments impedes the ability of any exchange or the Commission to evaluate the Pilot 30 See Amex Letter and NYSE Arca Letter, supra note 4. 31 See Amex Letter, supra note 4 32 NYSE Arca also believes that the proposal is not wholly consistent with the Pilot. See NYSE Arca Letter, supra note 4. 33 See Amex Letter, supra note 4. NYSE Arca also believes that CBOE's proposal is incomplete because it did not propose to also quote options on the Nasdaq 100 Index (NDX), and options on the Russell 2000 Index (RUT) in smaller increments. See NYSE Arca Letter, supra note 4. VerDate Aug<31>2005 18:31 Oct 02, 2007 Jkt 211001 Program. The Commission also notes that it would consider other proposals by exchanges to reduce the minimum quoting increment for other options, whether for the same reasons put forth by CBOE in its proposal, or other reasons. For the reasons discussed above, the Commission believes that the proposed rule change is consistent with the Act. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,34 that the proposed rule change (SR–CBOE–2007– 98), be, and hereby is, approved on a pilot basis, which will end on March 27, 2009. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.35 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–19495 Filed 10–2–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56532; File No. SR–CBOE– 2006–104] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Approving Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Codify the Hybrid Price Check Parameter September 26, 2007. I. Introduction On December 7, 2006, the Chicago Board Options Exchange, Incorporated (''CBOE'' 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 CBOE Rule 6.13, CBOE Hybrid System's Automatic Execution Feature, to codify an automated system feature that prevents executions at potentially erroneous prices (''price check parameter functionality''). On August 1, 2007, the Exchange filed Amendment No. 1 to the proposed rule change. The proposed rule change, as amended, was published for comment in the Federal Register on August 20, 2007.3 The 34 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 56245 (August 14, 2007), 72 FR 46525. 35 17 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 Commission received no comments regarding the proposal. II. Description of the Proposal The proposed rule change would amend CBOE Rule 6.13 to adopt the price check parameter functionality, which the Exchange would activate, on a series by series basis for a given option class, to prevent an automatic execution of a market order through CBOE's Hybrid System if such execution would occur outside a prescribed market width. Specifically, the functionality would be triggered to block an execution of a market order if the width between the Exchange's best bid and best offer is not within an ''acceptable price range.'' The applicable acceptable price range for each series of an option class would be determined by the appropriate Exchange Procedure Committee and could be no less than 1.5 times the corresponding bid/ask differentials in CBOE Rule 8.7(b)(iv)(A).4 The acceptable price range for each series of an option class would be announced to the CBOE membership via Regulatory Circular at least one day in advance. When the price check parameter functionality is triggered for a particular market order, such market order no longer would be eligible for automatic execution and would be routed on a class by class basis to PAR (the public automated routing system) or BART (the booth automated routing terminal) or, at the order entry firm's discretion, to the order entry firm's booth printer. The Exchange also proposed that the senior official in CBOE's Control Room or two Floor Officials could grant intraday relief by widening the acceptable price range for one or more option series. If such intra-day relief is granted, it would be announced via verbal message to the trading crowd, printer message to member organizations on the trading floor, and electronic message to members that request to receive such messages. The granting of such intra-day relief would be for no more than the duration of the particular trading day. Any decision to extend relief beyond an intra-day basis would be announced to the membership via Regulatory Circular. 4 CBOE Rule 8.7(b)(iv)(A) sets forth the bid/ask differentials for open outcry trading, which are as follows: No more than $0.25 between the bid and offer for each option contract for which the bid is less than $2.00; no more than $0.40 where the bid is at least $2.00 but does not exceed $5.00; no more than $0.50 where the bid is more than $5.00 but does not exceed $10; no more than $0.80 where the bid is more than $10 but does not exceed $20; and no more than $1.00 where the bid is more than $20. E:\FR\FM\03OCN1.SGM 03OCN1
[Federal Register Volume 72, Number 191 (Wednesday, October 3, 2007)]
[Release No. 34-56565; File No. SR-CBOE-2007-98]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Order Granting Approval to a Proposed Rule Change
Regarding the Extension and Expansion of the Penny Pilot Program
September 27, 2007.
On August 14, 2007, the Chicago Board Options Exchange,
Incorporated (``CBOE'' 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 its rules to extend and
expand the pilot program to quote certain options in smaller increments
(``Pilot Program'' or ``Pilot''). The proposed rule change was
published for comment in the Federal Register on August 22, 2007.\3\
The Commission received three comment letters on the proposed rule
change.\4\ The Exchange responded to the Citadel Letter on September
21, 2007.\5\ This order approves the proposed rule change.
\3\ See Securities Exchange Act Release No. 56276 (August 17,
2007), 72 FR 47096.
\4\ See letter to Nancy Morris, Secretary, Commission, from John
C. Nagel, Director & Associate General Counsel, Citadel, dated
September 12, 2007 (``Citadel Letter''); letter to Nancy M. Morris,
Secretary, Commission, from Michael T. Bickford, Senior Vice
President, Options, American Stock Exchange LLC, dated September 19,
2007 (``Amex Letter''); and letter to Nancy M. Morris, Secretary,
Commission, from Andrew B. Stevens, Assistant General Counsel, NYSE
Arca, Inc., dated September 26, 2007 (``NYSE Arca Letter'').
\5\ See letter to Nancy M. Morris, Secretary, Commission, from
Edward J. Joyce, President and Chief Operating Officer, CBOE, dated
September 21, 2007 (``CBOE Response'').
II. Description of the Proposal
Currently, the six options exchanges, including CBOE, participate
in the thirteen class Pilot Program,\6\ which is scheduled to expire on
September 27, 2007.\7\ The Exchange proposes to amend its rules to
extend and expand the Pilot Program to include fifty-two additional
classes, in two phases.
\6\ The thirteen option classes currently in the Pilot are:
Ishares Russell 2000 (IWM); NASDAQ-100 Index Tracking Stock (QQQQ);
SemiConductor Holders Trust (SMH); General Electric Company (GE);
Advanced Micro Devices, Inc. (AMD), Microsoft Corporation (MSFT);
Intel Corporation (INTC); Caterpillar, Inc. (CAT); Whole Foods
Market, Inc. (WFMI); Texas Instruments, Inc. (TXN); Flextronics
International Ltd. (FLEX); Sun Microsystems, Inc. (JAVA); and
Agilent Technologies, Inc. (A).
\7\ The Pilot Program began on January 26, 2007 and is currently
set to expire on September 27, 2007. See Securities Exchange Act
Release No. 56139 (July 26, 2007), 72 FR 42159 (August 1, 2007) (SR-
CBOE-2007-86). See also Securities Exchange Act Release No. 55154
(January 23, 2007), 72 FR 4743 (February 1, 2007) (SR-CBOE-2006-92)
(``Original Pilot Program Approval Order'').
Phase One will begin on September 28, 2007 and will continue for
six months, until March 27, 2008. Phase One will add the following
twenty-two options classes to the Pilot: SPDRs (SPY); Apple, Inc.
(AAPL); Altria Group Inc. (MO); Dendreon Corp. (DNDN); Amgen Inc.
(AMGN); Yahoo! Inc. (YHOO); QUALCOMM Inc. (QCOM); General Motors
Corporation (GM); Energy Select Sector (XLE); DIAMONDS Trust, Series 1
(DIA); Oil Services HOLDRs (OIH); NYSE Euronext, Inc. (NYX); Cisco
Systems, Inc. (CSCO); Financial Select Sector SPDR (XLF); AT&T Inc.
(T); Citigroup Inc. (C); Amazon.com Inc. (AMZN); Motorola Inc. (MOT);
Research in Motion Ltd. (RIMM); Freeport-McMoRan Copper & Gold Inc.
(FCX); ConocoPhillips (COP); and Bristol-Myers Squibb Co. (BMY). These
twenty-two options classes are among the most actively-traded,
multiply-listed options classes, and account, together with the current
thirteen Pilot classes, for approximately 35% of total industry trading
volume.\8\
\8\ This volume is based on the Options Clearing Corporation
(``OCC'') year-to-date trading volume data through July 16, 2007.
Phase Two will begin on March 28, 2008, and will continue for one
year, until March 27, 2009. During the second phase, the number of
options classes trading in pennies will again increase. The Exchange
proposes to add twenty-eight more classes from among the most actively-
traded, multiply-listed options classes.\9\
\9\ The Exchange has committed to file a proposed rule change
under Section 19(b)(3)(A) of the Act to identify the options classes
to be included in the second expansion.
The minimum price variation for all classes to be included in the
Pilot Program, except for the QQQQs, will continue to be $0.01 for all
quotations in option series that are quoted at less than $3 per
contract and $0.05 for all quotations in option series that are quoted
at $3 per contract or greater. The QQQQs will continue to be quoted in
$0.01 increments for all options series.
CBOE also proposes quote and trade two index options, the Mini-SPX
Index Options (XSP) and options on the Dow Jones Industrial Average
(DJX), in the same minimum increments as the SPY and DIA options, which
will be included in Phase One of the Pilot. XSP options are based on
the S&P 500 Index; SPY options are based on the SPDR exchange-traded
fund (``ETF''), which is designed to track the performance of the S&P
500 Index. DJX options are based on the Dow Jones Industrial Average
(``DJIA''); DIA options are based on an ETF designed to track the
performance of the DJIA. CBOE believes it is important that these
products have the same minimum increment for consistency and
competitive reasons.
During the extended and expanded Pilot Program, the CBOE commits to
deliver four reports to the Commission. Each report will analyze the
impact of penny pricing on market quality and options system capacity.
The first report will analyze the penny pilot results from May 1, 2007
through September 27, 2007; the second will analyze the results from
September 28, 2007 through January 31, 2008; the third will analyze the
results from February 1, 2008 through July 31, 2008; and the fourth and
final report will examine the results from August 1, 2008 through
January 31, 2009. These reports will be provided to the Commission
within thirty days of the conclusion of the reporting period.
After careful review of the proposal, the comment letters, and the
CBOE Response, the Commission finds that the proposed rule change is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities
exchange.\10\ In particular, the Commission finds that the proposal is
consistent with Section 6(b)(5) of the Act,\11\ which requires, among
other things, that the rules of an exchange be 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\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\11\ 15 U.S.C. 78f(b)(5).
On June 28, 2005, the Pacific Exchange (now known as NYSE Arca)
announced its intention to begin quoting and trading all listed options
in penny increments.\12\ In June 2006, to facilitate the orderly
transition to quoting a limited number of options in penny increments,
Chairman Cox sent a
letter to the six options exchanges urging the exchanges that chose to
begin quoting in smaller increments to plan for the implementation of a
limited penny pilot program to commence in January 2007.\13\ All six of
the options exchanges submitted proposals to permit quoting a limited
number of classes in smaller increments, and, in January 2007, the
Commission approved those proposals to implement the current Pilot
Program.\14\ The exchanges have now submitted proposals to extend and
further expand the Pilot.
\12\ PCX News Release, ``Pacific Exchange to Trade Options in
Pennies,'' June 28, 2005.
\13\ Commission Press Release 2006-91, ``SEC Chairman Cox Urges
Options Exchanges to Start Limited Penny Quoting,'' June 7, 2006.
\14\ See Securities Exchange Act Release Nos. 55154 (January 23,
2007), 72 FR 4743 (February 1, 2007) (SR-CBOE-2006-92); 55162
(January 24, 2007), 72 FR 4738 (February 1, 2007) (Amex-2006-106);
55155 (January 23, 2007), 72 FR 4741 (February 1, 2007) (SR-BSE-
2006-49); 55161 (January 24, 2007), 72 FR 4754 (February 1, 2007)
(SR-ISE-2006-62); 55156 (January 23, 2007), 72 FR 4759 (February 1,
2007) (SR-NYSEArca-2006-73); and 55153 (January 23, 2007), 72 FR
4553 (January 31, 2007) (SR-Phlx-2006-74). As noted above, supra
note 7 and accompanying text, the current Pilot is scheduled to
expire on September 27, 2007.
The continued operation and phased expansion of the Pilot Program
will provide further valuable information to the exchanges, the
Commission, and others about the impact of penny quoting in the options
market. In particular, extending and expanding the Pilot Program as
proposed by CBOE will allow further analysis of the impact of penny
quoting in the Pilot classes over a longer period of time on, among
other things: (1) Spreads; (2) peak quote rates; (3) quote message
traffic; (4) displayed size; (5) ``depth of book'' liquidity; and (6)
market structure. CBOE has committed to provide the Commission with
periodic reports, which will analyze the impact of the expanded Pilot
Program. The Commission expects the Exchange to include statistical
information relating to these factors in its periodic reports.
An analysis of the current Pilot shows that the reduction in the
minimum quoting increment has resulted in narrowing the average quoted
spreads in all classes in the Pilot.\15\ A reduction in quoted spreads
means that customers and other market participants may be able to trade
options at better prices. The reduction in spreads also has led the
exchanges to reduce or eliminate their exchange-sponsored payment-for-
order-flow programs.\16\ The Commission believes that the proposed rule
change is designed to continue the narrowing of spreads.
\15\ See CBOE, Penny Pilot Report, June 1, 2007 (``CBOE
Report''). See also Amex, Penny Quoting Pilot Program Report, June
8, 2007 (``Amex Report''); Box, Penny Pilot Data Review, June 18,
2007 (``Box Report''); ISE, Penny Pilot Analysis, May 23, 2007
(``ISE Report''); NYSE Arca Options, Understanding Economic and
Capacity Impacts of the Penny Pilot, May 31, 2007 (``NYSE Arca
Report''); and Phlx, Options Penny Pricing Pilot Report, May 31,
2007 (``Phlx Report'').
\16\ See Securities Exchange Act Release Nos. 55328 (February
21, 2007), 72 FR 9050 (February 28, 2007) (SR-Amex-2007-16); 55197
(January 30, 2007), 72 FR 5772 (February 7, 2007) (SR-BSE-2007-02);
55265 (February 9, 2007), 72 FR 7697 (February 16, 2007) (SR-CBOE-
2007-11); 55271 (February 12, 2007), 72 FR 7699 (February 16, 2007)
(SR-ISE-2007-08); 55223 (February 1, 2007) 72 FR 6306 (February 9,
2007) (SR-NYSEArca-2007-07); and 55290 (February 13, 2007), 72 FR
8051 (February 22, 2007) (SR-Phlx-2007-05).
The Commission notes that, as anticipated, the Pilot has
contributed to the increase in quotation message traffic from the
options markets. However, while the increase in quotation message
traffic is appreciable, it has been manageable by the exchanges and the
Options Price Reporting Authority, and the Commission did not receive
any reports of disruptions in the dissemination of pricing information
as a result of quote capacity restraints. Although the Commission
anticipates that the proposed expansion of the Pilot Program may
contribute to further increases in quote message traffic, the
Commission believes that CBOE's proposal is sufficiently limited such
that it is unlikely to increase quote message traffic beyond the
capacity of market participants' systems and disrupt the timely receipt
of quote information. The Commission also notes that CBOE has adopted
and will continue to utilize quote mitigation strategies that should
mitigate the expected increase in quote traffic.\17\
2007), 72 FR 4743 (February 1, 2007) (SR-CBOE-2007-92), 55772 (May
16, 2007), 72 FR 28732 (May 22, 2007) (SR-CBOE-2007-45), and 55853
(June 4, 2007), 72 FR 32151 (June 11, 2007) (SR-CBOE-2007-56).
Further, the Commission notes that the other options exchanges
participating in the Pilot also have adopted and will continue to
utilize quote mitigation strategies.
Overall trading activity in the options markets is very
concentrated, with a relatively few options classes accounting for a
significant share of total options volume. CBOE's proposal, which will
expand the Pilot to include a limited number of options from among the
most actively-traded classes (based on average trading volume), will
provide an opportunity for reduced spreads where the greatest amount of
trading occurs, thus maximizing the economic benefit of the Pilot while
minimizing the impact of increased quote traffic.
One commenter suggests that relative trading volume is the measure
that should be used to assess the success of quoting in smaller
increments.\18\ The commenter reported the percentage change in the
relative trading volume before and after the Pilot for each of the
thirteen classes.\19\ The commenter's data shows an increase in
relative trading volume for QQQQ, IWM, SHM, AMD, and SUNW, and a
decrease in relative trading volume for MSFT, INTC, GE, TXN, A, CAT,
WFMI and FLEX. The commenter believes the data shows that the Pilot
works well for index and sector products, but smaller increments caused
a decline in the relative trading volume for single stock options. The
commenter argues that much of the decrease in relative trading volume
in Pilot classes is a symptom of the decrease in displayed size
available for those classes. On the basis of a decline in the relative
trading volume, the commenter argues that single stock option classes
should be removed from the Pilot and replaced with liquid index or
sector option classes.
\18\ See Citadel Letter, supra note 4.
\19\ The commenter measures the relative trading volume of a
class as that class' trading volume as a percentage of total OCC
volume. The change in relative trading volume is the relative
trading volume from date of entrance into the Pilot to August 27,
2007 divided by the relative trading volume from November 1, 2006
through entrance in the Pilot.
Much of the recent growth in options volume has been in the large
index and ETF products, such as the SPX, SPY, and the QQQQ. As their
relative trading volume increases, the aggregate relative trading
volume of other products necessarily declines (although actual volume
levels may increase). For example, the SPX, SPY, QQQQ, and IWM
accounted for 16.1% of total options volume in the four months before
the pilot and rose to 21.7% of volume in the five months after the
pilot.\20\ By definition, the relative trading volume of all other
classes (Pilot and non-Pilot) falls from 83.9% in the pre-Pilot period
to 78.3% in the post-Pilot period. Using the commenter's numerical
approach, the relative market share of SPX, SPY, QQQ, and IWM increased
by 34.8% ((21.7%/16.1%)-1). In contrast, the relative trading volume of
all other classes fell by 6.7% (78.3/83.9%)-1) in the post-Pilot period
compared to the pre-Pilot period. Thus, in addition to the random
variation in relative trading volume that occurs over time, there was
an overall decline in the relative trading volume of issues outside the
four largest index and ETF options, although their actual aggregate
volume levels increased.
\20\ The pre-Pilot period consists of the four months before the
Pilot commenced (October 1-January 25, 2007) and the post-Pilot
period consists of the five months after the Pilot commenced
(February 9, 2007-June 30, 2007). The two week period when the Pilot
classes were introduced are excluded from the analysis.
More specifically, for the 100 and 500 most active classes,\21\
relative trading volume fell for 63% and 56%, respectively, of non-
Pilot classes. In the Pilot classes, seven, or 54%, of the thirteen
Pilot classes had a decline in market share and seven, or 70%, of the
ten single stock option classes had a decline in relative trading
volume.\22\
\21\ All of the thirteen Pilot classes fall into the 500 most
actively-traded, and nine are within the 100 most actively-traded
\22\ The change in relative trading volume for the median stock
for the top 500 (100) classes is -8% (-13%), compared to a change of
-3% for the thirteen Pilot stocks and a change of -24% for the ten
single stock options. The Commission notes that, with a Pilot sample
size of thirteen or ten, these statistics will be highly sensitive
to the performance of one or two classes.
The Commission does not believe that the data at this time supports
the conclusion that a decrease in relative trading volume in the Pilot
classes is due to a reduction of the minimum quoting variation. In
fact, the data demonstrates that declines in relative trading volume
were not limited to stocks included in the Pilot, and substantial
declines in relative trading volume, as defined by the commenter,
describe a large portion of classes that were not in the Pilot.
Therefore, based on the data reviewed to date, the Commission cannot
conclude that the Pilot has had an adverse impact on volume in the
Pilot securities. Therefore, the Commission believes that CBOE's
proposal to select additional classes from among the most actively-
traded options has a reasonable basis and is consistent with the
Act.\23\
\23\ The Commission notes that the classes the commenter
specifically recommends for inclusion in the expanded Pilot--SPY,
DIA, OIH, XLF, and XLE--are among classes proposed by CBOE to be
included in the Pilot Program beginning September 28, 2007.
The Commission believes that the impact of smaller increments on
trading volume is one of the more difficult aspects of the Pilot to
assess, and notes that the exchange reports did not show a clear change
in trading volume.\24\ While some industry participants expressed
disappointment that volume had not increased, the bid-ask spread is
only one factor that influences volume. Other factors that impact
option volume are trading activity in the underlying security and in
related products, volatility in the market and in the underlying
security, as well as firm and market specific information and events.
The Commission believes that the addition of more securities in the
next phase will increase the sample size and should help in further
analysis of such issues.
\24\ See Amex Report, supra note 15, at 6-7; CBOE Report, supra
note 15, Attachment at pages 5-6; ISE Report, supra note 15, at 17-
20; and NYSE Arca Report, supra note 15, at 15.
The commenter also expressed concern that the quoted size in the
Pilot classes is dropping to levels that are ``sub-optimal'' or
``inadequate'' for institutional size orders, and recommended that the
Commission carefully evaluate the impact of penny quoting on liquidity
before allowing the exchanges to expand the Pilot.\25\ The Commission
fully agrees that the impact of the Pilot on displayed size, as well as
non-displayed ``depth of book,'' and the impact of any decreased size
on market and execution quality, is an area that should be carefully
analyzed as the Pilot continues. The Commission also recognizes that
the exchange reports show there has, in fact, been a reduction in the
displayed size available in the Pilot classes.\26\ The Commission is
not at this time, however, able to conclude that this decrease has
caused a decrease in trading volume or relative trading volume, or
other harm to the market, as a result of the Pilot Program. The
Commission does, however, expect CBOE to include in its reports an
analysis of the market impact of reducing the minimum price increment,
particularly on the ability of market participants to effectively
execute large-sized orders. The Commission will analyze the information
provided in the Exchange's reports, in conjunction with the information
provided by other exchanges and market participants, to inform its
evaluation and consideration of any exchange's proposed further
expansion of the Pilot.
\26\ See Amex Report, supra note 15, at 6; BOX Report, supra
note 15, at 2; CBOE Report, supra note 15, at Attachment page 2; ISE
Report, supra note 15, at 7-8; NYSE Arca Report, supra note 15, at
9-10; and Phlx Report, supra note 15, at 3-4 and 6-7.
The commenter further noted, to the extent that additional size may
be available below the best bid or offer,\27\ options market
participants discount the value of such liquidity because it is
generally not transparent to the market and is not easily accessible
even if displayed.\28\ The commenter noted that, unlike in the equities
markets, market participants cannot quickly sweep multiple markets
through multiple price levels to reach such additional liquidity. The
Commission encourages the exchanges to consider measures that would
facilitate access to depth of book quotes.
\27\ Only two exchanges provided information on ``depth of
book'' on their markets in the Pilot classes. See NYSE Arca Report
at 8-10, supra note 15, and ISE Report, supra note 15, at 9. ISE
reported that the average total size of all quotes on its book at
all price levels, weighted for volume, for all thirteen Pilot
classes was reduced by 61%. See ISE Report, supra note 15, at 9.
NYSE Arca compared liquidity resident in its book within the legacy
minimum price variation to pre-Pilot top of book liquidity and
reported that volume weighted liquidity across all thirteen Pilot
classes decreased 1%. See NYSE Arca Report, supra note 15, at 8.
\28\ See Citadel Letter, supra note 4. The Commission notes that
currently only NYSE Arca makes available quotes and orders on its
book below the NBBO. See http://www.nysedata.com/nysedata/
InformationProducts/ArcaBook/tabid/293/Default.aspx. The Commission
anticipates that to the extent this display of information proves to
be valuable to the options market as a whole, other exchanges may
choose to make this information available as well.
The commenter also recommends removing the poorest performing
single stock names from the Pilot and replacing them with liquid index
or sector products.\29\ The Commission agrees that there should be a
mechanism for removing option classes from the Pilot. The Commission
specifically requested comment in the notice of CBOE's proposal on: (1)
Whether there are circumstances under which classes included in the
Pilot should be removed; (2) if so, what factors should be considered
in making the determination to remove a class from the Pilot,
specifically whether an objective standard should be used or whether a
more subjective analysis should be allowed; (3) what concerns might
arise by removing a class from the Pilot, and how could such concerns
be ameliorated; (4) how frequently should such an analysis be
undertaken, or should the evaluation be automated; and (5) if a class
is to be removed from the Pilot, how much notice should be given to
market participants that the quoting increment will change, but did not
receive any comments. The Commission will continue to consider comments
on how to fairly and objectively determine if a class should be removed
from the Pilot. Finally, to the extent that the Exchange files a
proposed rule change to further expand the Pilot, the Commission urges
it to include in any such proposal a methodology for removing classes
from the Pilot.
\29\ See supra, note 23 and Citadel Letter, supra note 4. The
Exchange also supports removing from the Pilot option classes that,
after analysis and review, are found not to be good choices for
quoting in penny increments, and recommends replacing them with
other classes that are suitable for quoting in a penny increment.
CBOE notes that data collected to date clearly suggests that some
Pilot classes may not be good candidates for penny quoting. CBOE
also notes that, in its Pilot report to the Commission, it stated
that further analysis must be conducted over a longer period of time
before drawing any firm conclusions as to the impact of quoting in
penny increments, and to determine which classes benefit from penny
quoting compared to those that do not. See CBOE Response, supra note
Finally, the Commission received two comment letters on CBOE's
proposal to quote and trade XSP and DJX in the same minimum increments
as the SPY and DIA options, for consistency and competitive
reasons.\30\ One commenter argues that it is inconsistent with the
Pilot Program and the purpose and objectives of the Act to permit CBOE
to quote singly-listed products in penny increments.\31\ Specifically,
the commenter believes that it is inconsistent with the Pilot Program
and the advancement of competition to allow CBOE to unilaterally expand
the Pilot Program by including two products subject to exclusive
licensing agreements.\32\
\30\ See Amex Letter and NYSE Arca Letter, supra note 4.
\31\ See Amex Letter, supra note 4.
\32\ NYSE Arca also believes that the proposal is not wholly
consistent with the Pilot. See NYSE Arca Letter, supra note 4.
The Commission does not believe that the issue of exclusive
licensing agreements is raised by this proposed rule change. CBOE
already lists and trades XSP and DJX options, pursuant to Commission
approval, and is only proposing in this filing to change the minimum
price variation for those options. The Commission believes that,
because XSP and DJX are designed to track the same indexes as multiply-
listed options included in the Pilot, CBOE's proposal to quote and
trade XSP and DJX in the same minimum increments as classes in the
Pilot is consistent with the Act.
The commenter also believes that, based on CBOE's rationale for
quoting XSP and DJX in the same increments as SPY and DIA, the Exchange
should have proposed to also quote the S&P 500 index (SPX) in smaller
increments because it is a ``related'' product.\33\ CBOE argues that
the XSP and DJX are competitive products to the SPY and DIA, not merely
that they are ``related products.'' The Commission does not believe
that CBOE's decision not to propose reducing the minimum increment in
SPX (or any other product that is based on the same index as a class
included in the Pilot) makes its proposal to reduce the minimum
increment for XSP and DJX inconsistent with the Act. Moreover, the
Commission does not believe that CBOE's proposal to quote two
additional singly-listed classes in smaller increments impedes the
ability of any exchange or the Commission to evaluate the Pilot
Program. The Commission also notes that it would consider other
proposals by exchanges to reduce the minimum quoting increment for
other options, whether for the same reasons put forth by CBOE in its
proposal, or other reasons.
\33\ See Amex Letter, supra note 4. NYSE Arca also believes that
CBOE's proposal is incomplete because it did not propose to also
quote options on the Nasdaq 100 Index (NDX), and options on the
Russell 2000 Index (RUT) in smaller increments. See NYSE Arca
Letter, supra note 4.
For the reasons discussed above, the Commission believes that the
proposed rule change is consistent with the Act.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\34\ that the proposed rule change (SR-CBOE-2007-98), be, and
hereby is, approved on a pilot basis, which will end on March 27, 2009.
\34\ 15 U.S.C. 78s(b)(2).
[FR Doc. E7-19495 Filed 10-2-07; 8:45 am]


The vast waterways, interesting wildlife, and crystal-clear blue water keep people coming back again and again. A family-friendly environment, Pacific Palms resort offers an extensive activities program along with facilities, including a swimming pool, spa, sauna, gymnasium, barbecue and playground. For excursions farther afield, a car is necessary to fully enjoy the area, as public transportation is not available. Nearby Smith's Lake provides boat rentals and Wallis Lake has picnic spots. Four-wheel-drive tours can be arranged with pick up at the resort. Paddle boats and windsurfers are only 3 miles (5 km) away.
Each unit is a self-contained Polynesian-style villa offering ceiling fans, cable television with DVD, and partial kitchen in the 2 bedroom and full kitchen in the 3 bedroom. Shared laundry facilities are available on-site. 2-bedroom units sleep up to six guests in a queen bed, 2 single beds, and 1 double sleep sofa. 3-bedroom units for up to 8 guests provide a queen bed, 2 singles, 2 bunk beds, a double sleep sofa, and 2 bathrooms.
The nearest international airport is in Sydney, 4 hrs drive away. Take the Pacific Hwy through to the Forster/Tuncurry turn off 2 km north of Bulahdelah. Turn right onto The Lakes Way and travel 40km to the Elizabeth Beach turnoff - on right, look for the resort on the crest of the hill on Lakeside Crescent. If travelling south take the Pacific Hwy through to the Forster/Tuncurry turn off (10km south of Taree). Turn left onto The Lakes Way and travel through Tuncurry over the bridge & through Forster following the signs towards Bulahdelah. Pacific Palms Resort is 20 kms south of Forster. Turn left at Elizabeth Beach turn off, look for the resort on the crest of the hill.
There is no public transport available. A vechile is a must when holidaying in area. Office hours are Monday-Friday 9 am to 3 pm, Thursday 9 am - 5 pm, Friday and Saturday 8 am - 6 pm, Sunday and public holidays the office is closed.
Should you require a cot or high chair in your unit, please contact the resort prior to your holiday dates.
There are designated smoking areas at the entry and exit of the resort. There is no smoking in the villas (balconies), internal common areas of the resort and within 10m of any recreational area or facility in accordance with NSW Government regulations. Fines apply to any breach of this law.


Brad is entering his second season as the Lumberjacks as the Director of Western Scouting. Brad also serves as a scout for Dubuque Fighting Saints in the USHL. Prior to joining the Lumberjacks, Brad coached five seasons of youth hockey in Grand Rapids, MN at the Pee Wee level, and he remains a coach with the Iron Range All-Stars at the Pee Wee and Bantam levels, as he has been for the past three seasons. Brad ran cross country, played baseball and hockey at Grand Rapids High School. After high school he attended HCC where he played hockey and was the team's leading scorer, play-off leading scorer, voted to the all-tournament team and was also awarded the Frank Catani MVP award. Brad, his wife Amber and their son Dylan reside in Northern Minnesota.
Reed returns to Granite City for his second stint as the Director of Eastern Recruiting. Reed was one of the original scouts for the organization in its inaugural season in 2007-2008 helping to recruit the first class of players which eventually reached the National Tournament in 2009.
Reed played his high school hockey at Grand Rapids High School graduating in 97'. He played his junior hockey with the Bismarck Bobcats in 98'-99' and played division III with the University of Wisconsin-Superior from 00'-03' where he was a member of the 2002 NCAA D-III championship team. Reed coached for one year under Dan Stauber at UWS before moving on to coach high school hockey at Willmar High School and Currently Virginia High School. He started his junior scouting with the Rochester Ice Hawks in 05'-06, he also spent three years as scout and assistant coach with the Mn Flying Aces. Reed helped recruit the Lumberjacks to a Silver Cup Championship in 2015. He is now starting his 4th year with the Lumberjacks and he is excited to continue with the tradition and success of the Lumberjacks.
Chris enters his first year scouting for the Lumberjacks as the Director of North Central Scouting. He began coaching in 1989 at the Bantam level, while attending college, and has since coached all levels of youth hockey, primarily in the Anoka Area Hockey Association. Chris played his youth and High School hockey for Anoka and continued on to UW-Stout for two seasons. He is still active in his local youth hockey program, and is enjoying his new opportunity with the LumberJacks. Chris resides in Anoka, MN with his wife Teresa, daughter Lauren and son Nathan, while his son Cole is at Bemidji State University.
Chris has a passion to see players continue to follow their goals/dreams of playing hockey at the next level. He actively travels around the North Central seeking players determined to take that next step in their hockey path.


Lea is the director of Open Door Spain and established the business after recognising the need for a quicker, more efficient property sales service in the Spanish market.
Prior to joining Open Door, Lea was a successful business leader who worked in several strategic sourcing, finance and control roles for major private sector companies in several countries. She was most recently the UK & Irish Finance Director for one of the world's biggest dairy companies.
In addition to being a property enthusiast, Lea holds a Masters in International Business and an Executive Masters in Finance & Control.
Lea is native Dutch, fluent in English and Spanish, and speaks German and a little French too. Through her international background and knowledge of the local market and culture, she can serve both Spanish and foreign customers.


We are looking for a Treasurer who understands and cares about Freedom from Torture's charitable aims. You will also understand good governance and what the role of a non-executive Trustee involves.
You need to be a qualified accountant with experience in financial management and controls including audit and risk ideally, but not essentially, in a charity context. The successful appointee will chair our Finance Committee.
To request an information pack, please email Executive@tpp.co.uk or for an informal conversation, please contact our retained Consultants at TPP Recruitment: Brigitte Stundner or Rob Hayter on 020 7198 6060.
To apply, you will need to submit a CV and cover letter which clearly demonstrate how you meet the requirements of the role and state why you wish to be a Treasurer at Freedom from Torture.
The closing date for applications is Friday 9th February and interviews will be held 19th February 2019.


text:
Frosty definitely got the last laugh on this one.🤣
Building a snowman is a fun tradition for many families during the holiday season – but unfortunately, there are a lot of Scrooges out there too.
A driver from Kentucky learned the hard way that you shouldn't mess with people's lovable snowmen – especially one that's 9 feet tall.
Cody Lutz, his fiance Lucy, and Lucy's sister, all built the towering snowman outside his home using a thick tree trunk as its foundation.
He welcomed the sisters (who are from Mississippi) to his Petersburg, Kentucky home so they could experience the biggest snowfall they'd ever seen. That, along with the huge snowman.
Lutz shared with CBS News:
"We had a full weekend of sledding, snowball fights … and making the most of the winter wonderland. Of course, that included building a snowman!"
YouTube Screenshot - Eyewitness News WEHT WTVW
A massive tree stump in the front yard proved to be the best choice as a base for the snowman.
It ended up nearly ten feet tall thanks to a top hat. It wasn't something anyone would miss passing by.
"Everyone driving by loved him, and waved and honked to express their delight," Lutz said.
"However, evidently not everyone was a fan! I arrived home to find a set of tire tracks across my yard, ending abruptly at the base of the snowman."
Frosty was still standing but the stump, now exposed, had a bumper mark on it. A very snowy one.
Lutz went to work on a Monday, and when he came back, found tire tracks leading up to his beefed-up snowman.
Now it was snowy so it's safe to assume the vehicle was a 4×4 or at least all-wheel drive.
YouTube - Eyewitness News WEHT WTVW
But Frosty's sturdy lower body won that fight!
Lutz called it "Instant Karma".
The driver found out Frosty's "roots" were so much stronger.
And it's a wonder the truck was able to drive away after an impact that hard. Unless they drove away with airbags in their faces.
Can't help but wonder what the driver's story was when he got back home. Or what the insurance company did.
Eyewitness News WEHT WTVW
And through it all, Frosty, in his natural element, remained standing and smiling the whole time.
He certainly got the last laugh there! This towering snowman was cold as ice the whole time.
That driver was a real Grinch for attempting to run the massive snowman over though.
Pixabay - ErikaWittlieb
Frosty's stump may have been exposed but that vehicle's front end was too.
A hanging front bumper, exposed radiator, and lots of odd noises became the driver's headache.
That's after the headache he suffered from the impact – not to mention, lots of embarrassment.
The trio got the last laugh.
All they wanted was to enjoy the snow, but this little mishap has now become a holiday memory for them.
It goes to show that it's wrong to mess with people's fun – especially during the Christmas season. And if you do – prepare to have karma knocking at your door.
Watch the video below to hear Lutz chuckle over what happened with their 9-foot Frosty!
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Facebook – Cody Lutz Media


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All that legal stuff.
One Stop Car Sales ("us", "we", or "our") operates the http://onestopcarsales.com website (the "Service").
We use your data to provide and improve the Service. By using the Service, you agree to the collection and use of information in accordance with this policy. Unless otherwise defined in this Privacy Policy, terms used in this Privacy Policy have the same meanings as in our Terms and Conditions, accessible from http://onestopcarsales.com.
One Stop Car Sales uses the collected data for various purposes:
One Stop Car Sales will take all steps reasonably necessary to ensure that your data is treated securely and in accordance with this Privacy Policy and no transfer of your Personal Data will take place to an organization or a country unless there are adequate controls in place including the security of your data and other personal information.
One Stop Car Sales may disclose your Personal Data in the good faith belief that such action is necessary to:
To protect and defend the rights or property of One Stop Car Sales
Statcounter is a web traffic analysis tool. You can read the Privacy Policy for Statcounter here: https://statcounter.com/about/legal/
By email: This email address is being protected from spambots. You need JavaScript enabled to view it.
By phone number: 931-424-1111
By mail: 819 Mill St., Pulaski, TN 38478
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