Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Chicago Board Options Exchange, Incorporated To Extend a Pilot Program Relating to Margin Requirements for Certain Complex Options Spreads, 15669-15671 [E5-1365]
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Federal Register / Vol. 70, No. 58 / Monday, March 28, 2005 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release Nos. 33–8560; 34–51417, File No.
265–23]
Advisory Committee on Smaller Public
Companies
Securities and Exchange
Commission.
ACTION: Notice of first meeting of SEC
Advisory Committee on Smaller Public
Companies.
AGENCY:
The Securities and Exchange
Commission Advisory Committee on
Smaller Public Companies will hold its
first meeting on Tuesday, April 12,
2005, in the William O. Douglas Room
of the Commission’s headquarters, 450
Fifth Street, NW., Washington, DC,
beginning at 9:30 a.m. The meeting will
be open to the public and webcast on
the Commission’s Web site at https://
www.sec.gov. The public is invited to
submit written statements to the
Committee.
SUMMARY:
Written statements should be
received on or before April 8, 2005.
ADDRESSES: Written statements may be
submitted by any of the following
methods:
DATES:
Electronic Statements
• Use the Commission’s Internet
submission form (https://www.sec.gov/
info/smbus/acspc.shtml; or
• Send an e-mail message to rulecomments@sec.gov. Please include File
Number 265–23 on the subject line; or
(202) 942–2908, Office of Small
Business Policy, Division of Corporation
Finance, Securities and Exchange
Commission, 450 Fifth Street, NW.,
Washington, DC 20549–0310.
SUPPLEMENTARY INFORMATION: In
accordance with Section 10(a) of the
Federal Advisory Committee Act, 5
U.S.C.-App. 1, § 10(a), and the
regulations thereunder, Gerald J.
Laporte, Designated Federal Officer of
the Committee, has ordered publication
of this notice that the Advisory
Committee will hold its first meeting on
April 12, 2005, in the William O.
Douglas Room at the Commission’s
headquarters, 450 Fifth Street, NW.,
Washington, DC, beginning at 9:30 a.m.
The purpose of this meeting is to
discuss general organizational matters, a
Committee Agenda and a timetable for
the Committee’s work. The agenda for
the meeting includes consideration of
publishing a release in the Federal
Register soliciting public comment on
the Committee Agenda, which sets forth
the proposed topics for consideration by
the Committee over its entire term.
Members of the public are not expected
to be permitted to speak or orally
address the Committee at this meeting,
but are expected to be able to do so at
some future meetings in accordance
with guidelines to be adopted and
published.
Dated: March 23, 2005.
Jonathan G. Katz,
Secretary.
[FR Doc. 05–6100 Filed 3–23–05; 4:59 pm]
BILLING CODE 8010–01–P
Paper Statements
• Send paper statements in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
450 Fifth Street, NW., Washington, DC
20549–0609.
All submissions should refer to File
No. 265–23. This file number should be
included on the subject line if e-mail is
used. To help us process and review
your statement more efficiently, please
use only one method. The Commission
will post all statements on the
Commission’s Web site (https://
www.sec.gov./info/smbus/acspc.shtml).
Statements are also available for public
inspection and copying in the
Commission’s Public Reference Room,
450 Fifth Street, NW., Washington, DC
20549. All statements received will be
posted without change; we do not edit
personal identifying information from
submissions. You should submit only
information that you wish to make
available publicly.
FOR FURTHER INFORMATION CONTACT:
Kevin M. O’Neill, Special Counsel, at
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15:12 Mar 25, 2005
Jkt 205001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51407; File No. SR–CBOE–
2005–16]
15669
proposed rule change as described in
Items I and II below, which Items have
been prepared primarily by the CBOE.
Pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder,4 CBOE has designated this
proposal as non-controversial, which
renders the proposed rule change
effective immediately upon filing. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to extend, until
February 7, 2006, a pilot program
permitting an interpretation to CBOE
Rule 12.3, Margin Requirements,
relating to margin requirements for
certain complex option spreads. The
text of the proposed rule change is
available at the Office of the Secretary,
CBOE and at the Commission.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
CBOE included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. CBOE has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.5
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
Chicago Board Options Exchange,
Incorporated To Extend a Pilot
Program Relating to Margin
Requirements for Certain Complex
Options Spreads
March 22, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on February
7, 2005, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
PO 00000
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00057
Fmt 4703
Sfmt 4703
On August 8, 2003, the Commission
approved on a one-year pilot basis
(‘‘Pilot’’) a CBOE Regulatory Circular
setting forth an interpretation of CBOE’s
current margin requirements for certain
complex option spreads.6 CBOE
subsequently submitted two additional
filings relating to the Pilot—one to
extend the Pilot for an additional six
months,7 which was effective upon
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 The Commission has modified parts of these
statements.
6 See Securities Exchange Act Release No. 48306
(August 8, 2003), 68 FR 48974 (approving SR–
CBOE–2003–24). Regulatory Circular RG03–66 was
issued by CBOE following the Commission’s
approval of SR–CBOE–2003–24.
7 See SR–CBOE–2004–56.
4 17
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28MRN1
15670
Federal Register / Vol. 70, No. 58 / Monday, March 28, 2005 / Notices
filing with the Commission,8 and
another proposing permanent
implementation of the margin
requirements covered by the Pilot.9 In
this filing, CBOE has requested an
additional extension of the Pilot, until
February 7, 2006, or until such time as
the Commission has approved CBOE’s
request for permanent implementation
of the margin requirements on certain
complex option spreads, whichever
occurs sooner.
CBOE is proposing an extension of the
Pilot so that it may continue in effect
while the Commission considers
CBOE’s proposal for permanent
implementation. As such, CBOE
proposes to reissue the Regulatory
Circular with the new Pilot expiration
date. CBOE has received no negative
comments concerning Regulatory
Circulars RG03–66 or RG04–90 since
they were issued, nor is CBOE aware of
any negative consequences resulting
from the application of the margin
requirements permitted by the
Regulatory Circulars.
2. Statutory Basis
CBOE represented that the proposed
Regulatory Circular clarifies that CBOE’s
current margin rules extend to complex
option spreads, thereby allowing
investors to more efficiently implement
these strategies. As such, CBOE believes
that the proposed Regulatory Circular
interpretation of CBOE Rule 12.3 is
consistent with and furthers the
objectives of Section 6(b)(5) of the Act,
in that it is designed to perfect the
mechanisms of a free and open market
and to protect investors and the public
interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
CBOE neither solicited nor received
written comments with respect to the
proposed rule change.
8 See Securities Exchange Act Release No. 50164
(August 6, 2004), 69 FR 50405 (August 16, 2004)
(approving SR–CBOE–2004–56). Regulatory
Circular RG03–66 was reissued as Regulatory
Circular RG04–90.
9 See SR–CBOE–2004–53.
VerDate jul<14>2003
15:12 Mar 25, 2005
Jkt 205001
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective upon filing on
February 7, 2005, pursuant to Section
19(b)(3)(A) 10 of the Act and Rule 19b–
4(f)(6) 11 thereunder because the
proposal: (1) Does not significantly
affect the protection of investors or the
public interest; (2) does not impose any
significant burden on competition; and
(3) does not become operative for 30
days from the date of filing, or such
shorter time as the Commission may
designate if consistent with the
protection of investors and the public
interest; provided that the selfregulatory organization has given the
Commission written notice of its intent
to file the proposed rule change at least
five business days prior to the filing
date of the proposed rule change.12
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative prior to 30 days after
the date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii),13 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest.
CBOE has requested that the
Commission waive the 30-day operative
waiting period to permit CBOE to
continue the Pilot without interruption
while the Commission determines
whether to approve permanent
implementation of the subject margin
requirements.
The Commission, consistent with the
protection of investors and the public
interest, has waived the 30-day
requirement that the proposed rule
change not become operative for 30 days
after the date it was filed.14 The
Commission believes that granting
immediate effectiveness to the proposed
rule change is appropriate because it
will allow the Pilot to continue without
interruption after it would otherwise
have expired on February 7, 2005. At
any time within 60 days of the filing of
the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
12 As required under Rule 19b–4(f)(6)(iii), the
CBOE provided the Commission with written notice
of its intent to file the proposed rule change at least
five business days prior to the filing date.
13 17 CFR 240.19b–4(f)(6)(iii).
14 For the purposes only of accelerating the
operative date of this proposal, the Commission has
considered the proposed rules impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
PO 00000
10 15
11 17
Frm 00058
Fmt 4703
Sfmt 4703
or otherwise in the furtherance of the
purposes of the Act.15
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2005–16 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
450 Fifth Street, NW., Washington, DC
20549–0609.
All submissions should refer to File
Number SR–CBOE–2005–16. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such
filing also will be available for
inspection and copying at the principal
office of the CBOE. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CBOE–
2005–16 and should be submitted on or
before April 18, 2005.
15 15
E:\FR\FM\28MRN1.SGM
U.S.C. 78s(b)(3)(C).
28MRN1
Federal Register / Vol. 70, No. 58 / Monday, March 28, 2005 / Notices
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1365 Filed 3–25–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51390; File No. SR–OCC–
2005–02]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
the Establishment of a Money-Only
Settlement Service
March 17, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
March 2, 2005, The Options Clearing
Corporation (‘‘OCC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which items have been
prepared primarily by OCC. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change establishes
a money-only settlement service for
OCC clearing members.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
OCC included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. OCC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of such statements.2
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Clearing members have asked OCC to
provide a facility that effects transfers of
16 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 The Commission has modified parts of these
statements.
VerDate jul<14>2003
15:12 Mar 25, 2005
Jkt 205001
daily money differences and claims
between clearing members.3 These
money differences may result from such
things as, among other things, transfers
of accounts and commission billing for
trade execution. Clearing members
presently settle these differences
through invoices and checks sent
through the U.S. mail or by messenger
deliveries. However, clearing members
have advised OCC that items sent by
either of these means are frequently lost,
misdelivered, or delayed and ultimately
are written off as uncollectible.
In response to these requests, OCC has
determined to add a money-only
settlement service that would be
available for clearing member use
through OCC’s ENCORE system. This
service, which will only be available for
money differences arising from
transactions cleared by OCC, will be
governed by proposed new Rule 504.4
Clearing members desiring to settle an
open money item with another clearing
member will initiate an instruction on
any business day through the ENCORE
system. OCC will specify a time by
which instructions will have to be
approved. If the clearing member
receiving the instruction does not
approve it by the deadline, the
instruction will be deemed null and
void and will be deleted from the
system. If the instruction is approved,5
OCC, as agent, would draft a paying
clearing member’s designated bank
account at a time to be specified by
OCC. OCC will similarly specify a time
by which OCC, as agent, will pay to the
collecting clearing member the amount
specified in the instruction. Initially,
OCC intends to effect money-only
settlement on the business day after an
instruction is approved. In the future,
however, OCC may effect money-only
settlement on the same business day
that an instruction is approved. OCC
will notify its clearing members before
implementing a change with respect to
settlement times.
OCC will withhold money-only
settlement amounts owed to any
clearing member if the clearing member
has any unsatisfied payment obligation
3 In making their request, clearing members
advised OCC that other securities clearing agencies,
including The Depository Trust Company (‘‘DTC’’)
and National Securities Clearing Corporation
(‘‘NSCC’’), offer a comparable service to their
participants. See DTC Rule 9(A), Transactions in
Securities and Money Payments and NSCC Rule 41,
Funds Only Settlement Service.
4 Proposed Rule 504 is based on Rule 503
pursuant to which OCC, as agent, effects premium
settlements between banks or depositories and
clearing members with respect to their escrow
depository receipt activity under Rule 613.
5 Approval of an instruction by a clearing member
will be detailed in an audit trail created and
maintained by OCC.
PO 00000
Frm 00059
Fmt 4703
Sfmt 4703
15671
to OCC. Any amounts withheld will be
used to reduce the unpaid obligation.
In drafting a paying clearing member’s
bank account or in making payment to
a collecting clearing member in
connection with money-only settlement
transactions, OCC may combine
multiple transactions for which the
clearing member is obligated to make
payment or is entitled to receive
payments. However, OCC will neither
net money-only settlement amounts
payable by a clearing member with any
amounts payable to the clearing member
by OCC with respect to any account
maintained by the clearing member with
OCC nor will OCC net money-only
settlement amounts payable to a
clearing member with amounts payable
by the clearing member to OCC. Moneyonly settlement amounts will appear as
a separate line item on a settlement
report made available to clearing
members on each business day.6
The money differences to be
processed through the money-only
settlement system are between clearing
members, and OCC will accordingly
only act as agent for each clearing
member in facilitating their settlement.
OCC will not guarantee money-only
settlements and will not be obligated to
make a money-only settlement payment
unless it has collected the amount of the
payment from the paying clearing
member. If a clearing member is
suspended by OCC pursuant to Chapter
XI of the Rules, any pending
instructions of such clearing member
will be deemed null and void to the
extent that the suspended clearing
member is a paying clearing member.7
OCC does not believe that the moneyonly settlement service will adversely
affect its capacity to settle transactions
in cleared securities because its cash
settlement system has more than
sufficient capacity to handle the
anticipated daily volume of money-only
settlements.
OCC believes that the proposed rule
change is consistent with Section 17A of
the Act because money-only settlement
service will provide a more efficient
means for clearing members to settle
money differences relating to
transactions or positions in cleared
contracts, thereby improving the
likelihood that these amounts will be
collected by clearing members. The
proposed rule change is not inconsistent
with the existing rules of OCC,
6 This report is made available to Clearing
Members via OCC’s on-line report inquiry service.
7 OCC’s determination not to guarantee moneyonly settlement items is consistent with NSCC Rule
41, Section 10.
E:\FR\FM\28MRN1.SGM
28MRN1
]]>Agencies
[Federal Register Volume 70, Number 58 (Monday, March 28, 2005)]
[Notices]
[Pages 15669-15671]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1365]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51407; File No. SR-CBOE-2005-16]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Board Options
Exchange, Incorporated To Extend a Pilot Program Relating to Margin
Requirements for Certain Complex Options Spreads
March 22, 2005.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on February 7, 2005, the Chicago Board Options Exchange, Incorporated
(``CBOE'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared primarily by the CBOE.
Pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder,\4\ CBOE has designated this proposal as non-
controversial, which renders the proposed rule change effective
immediately upon filing. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to extend, until February 7, 2006, a pilot program
permitting an interpretation to CBOE Rule 12.3, Margin Requirements,
relating to margin requirements for certain complex option spreads. The
text of the proposed rule change is available at the Office of the
Secretary, CBOE and at the Commission.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, CBOE included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. CBOE has prepared summaries, set forth in Sections A, B,
and C below, of the most significant aspects of such statements.\5\
---------------------------------------------------------------------------
\5\ The Commission has modified parts of these statements.
---------------------------------------------------------------------------
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On August 8, 2003, the Commission approved on a one-year pilot
basis (``Pilot'') a CBOE Regulatory Circular setting forth an
interpretation of CBOE's current margin requirements for certain
complex option spreads.\6\ CBOE subsequently submitted two additional
filings relating to the Pilot--one to extend the Pilot for an
additional six months,\7\ which was effective upon
[[Page 15670]]
filing with the Commission,\8\ and another proposing permanent
implementation of the margin requirements covered by the Pilot.\9\ In
this filing, CBOE has requested an additional extension of the Pilot,
until February 7, 2006, or until such time as the Commission has
approved CBOE's request for permanent implementation of the margin
requirements on certain complex option spreads, whichever occurs
sooner.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 48306 (August 8,
2003), 68 FR 48974 (approving SR-CBOE-2003-24). Regulatory Circular
RG03-66 was issued by CBOE following the Commission's approval of
SR-CBOE-2003-24.
\7\ See SR-CBOE-2004-56.
\8\ See Securities Exchange Act Release No. 50164 (August 6,
2004), 69 FR 50405 (August 16, 2004) (approving SR-CBOE-2004-56).
Regulatory Circular RG03-66 was reissued as Regulatory Circular
RG04-90.
\9\ See SR-CBOE-2004-53.
---------------------------------------------------------------------------
CBOE is proposing an extension of the Pilot so that it may continue
in effect while the Commission considers CBOE's proposal for permanent
implementation. As such, CBOE proposes to reissue the Regulatory
Circular with the new Pilot expiration date. CBOE has received no
negative comments concerning Regulatory Circulars RG03-66 or RG04-90
since they were issued, nor is CBOE aware of any negative consequences
resulting from the application of the margin requirements permitted by
the Regulatory Circulars.
2. Statutory Basis
CBOE represented that the proposed Regulatory Circular clarifies
that CBOE's current margin rules extend to complex option spreads,
thereby allowing investors to more efficiently implement these
strategies. As such, CBOE believes that the proposed Regulatory
Circular interpretation of CBOE Rule 12.3 is consistent with and
furthers the objectives of Section 6(b)(5) of the Act, in that it is
designed to perfect the mechanisms of a free and open market and to
protect investors and the public interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
CBOE neither solicited nor received written comments with respect
to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective upon filing
on February 7, 2005, pursuant to Section 19(b)(3)(A) \10\ of the Act
and Rule 19b-4(f)(6) \11\ thereunder because the proposal: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) does not become operative for 30 days from the date of filing,
or such shorter time as the Commission may designate if consistent with
the protection of investors and the public interest; provided that the
self-regulatory organization has given the Commission written notice of
its intent to file the proposed rule change at least five business days
prior to the filing date of the proposed rule change.\12\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ As required under Rule 19b-4(f)(6)(iii), the CBOE provided
the Commission with written notice of its intent to file the
proposed rule change at least five business days prior to the filing
date.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative prior to 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. CBOE has requested
that the Commission waive the 30-day operative waiting period to permit
CBOE to continue the Pilot without interruption while the Commission
determines whether to approve permanent implementation of the subject
margin requirements.
---------------------------------------------------------------------------
\13\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
The Commission, consistent with the protection of investors and the
public interest, has waived the 30-day requirement that the proposed
rule change not become operative for 30 days after the date it was
filed.\14\ The Commission believes that granting immediate
effectiveness to the proposed rule change is appropriate because it
will allow the Pilot to continue without interruption after it would
otherwise have expired on February 7, 2005. At any time within 60 days
of the filing of the proposed rule change, the Commission may summarily
abrogate such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in the furtherance of the
purposes of the Act.\15\
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\14\ For the purposes only of accelerating the operative date of
this proposal, the Commission has considered the proposed rules
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
\15\ 15 U.S.C. 78s(b)(3)(C).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-CBOE-2005-16 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW.,
Washington, DC 20549-0609.
All submissions should refer to File Number SR-CBOE-2005-16. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Section, 450 Fifth
Street, NW., Washington, DC 20549. Copies of such filing also will be
available for inspection and copying at the principal office of the
CBOE. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
CBOE-2005-16 and should be submitted on or before April 18, 2005.
[[Page 15671]]
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
Margaret H. McFarland,
Deputy Secretary.
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\16\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E5-1365 Filed 3-25-05; 8:45 am]
BILLING CODE 8010-01-P
