Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Accelerated Approval to a Proposed Rule Change To Amend CBOE Rule 8.4 To Remove the Physical Trading Crowd Appointment Alternative for Remote Market-Makers and To Create an “A+” Tier Consisting of the Two Most Actively-Traded Products on the Exchange, 20952 [E5-1883]

Download as PDF 20952 Federal Register / Vol. 70, No. 77 / Friday, April 22, 2005 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51543; File No. SR–CBOE– 2005–23] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Accelerated Approval to a Proposed Rule Change To Amend CBOE Rule 8.4 To Remove the Physical Trading Crowd Appointment Alternative for Remote Market-Makers and To Create an ‘‘A+’’ Tier Consisting of the Two Most Actively-Traded Products on the Exchange April 14, 2005. On March 15, 2005, 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 8.4(d) to remove the Physical Trading Crowd (‘‘PTC’’) appointment alternative for Remote Market-Makers (‘‘RMMs’’) and to create an ‘‘A+’’ Tier consisting of the two most actively-traded products on the Exchange. The proposed rule change was published for comment in the Federal Register on March 21, 2005.3 The Commission received no comments on the proposal. 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 4 and, in particular, the requirements of section 6 of the Act 5 and the rules and regulations thereunder. The Commission specifically finds that the proposed rule change is consistent with section 6(b)(5) of the Act 6 in that it is designed to promote just and equitable principles of trade, to remove impediments and to perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Commission finds good cause for approving the proposed rule change prior to the thirtieth day after the 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 51371 (March 15, 2005), 70 FR 13557. 4 In approving this proposed rule change, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 5 15 U.S.C. 78f. 6 15 U.S.C. 78f(b)(5). 2 17 VerDate jul<14>2003 15:27 Apr 21, 2005 Jkt 205001 proposal is published for comment in the Federal Register pursuant to section 19(b)(2) of the Act.7 The Commission believes that accelerating approval of the proposal is necessary to accommodate the rollout of CBOE’s RMM program. In particular, the Commission notes that the proposal would enable CBOE to commence its RMM program with two of the most actively-traded products included, options on Standard & Poor’s Depositary Receipts (Spiders) and options on the Nasdaq-100 Index Tracking Stock (QQQQs), under a new ‘‘A+’’ Tier designation. Furthermore, the Commission notes that the proposal would eliminate the PTC appointment option for RMMs and would require them to have a Virtual Trading Crowd appointment, which should allow them greater flexibility to choose their own appointments. The Commission therefore believes that accelerated approval of the proposed rule change is appropriate and finds that it is consistent with the Act. It is therefore ordered, pursuant to section 19(b)(2) of the Act,8 that the proposed rule change (SR–CBOE–2005– 23) be approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.9 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–1883 Filed 4–21–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51542; File No. SR-CBOE– 2005–22] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Accelerated Approval to a Proposed Rule Change To Adopt an Inactivity Fee To Be Charged Against Remote Market-Makers That Fail To Commence Quoting in Their Appointed Classes April 14, 2005. On March 15, 2005, 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 PO 00000 7 15 U.S.C. 78s(b)(2). U.S.C. 78s(b)(2). 9 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 8 15 Frm 00098 Fmt 4703 Sfmt 4703 adopt an inactivity fee to be charged against Remote Market-Makers (‘‘RMMs’’) that fail to commence quoting in their appointed classes. The proposed rule change was published for comment in the Federal Register on March 21, 2005.3 The Commission received no comments on the proposal. 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 4 and, in particular, the requirements of Section 6 of the Act 5 and the rules and regulations thereunder. The Commission specifically finds that the proposed rule change is consistent with section 6(b)(4) of the Act 6 in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among CBOE members. The Commission finds good cause for approving the proposed rule change prior to the thirtieth day after the proposal is published for comment in the Federal Register pursuant to section 19(b)(2) of the Act.7 The Commission believes that accelerating approval of the proposal is necessary to accommodate the rollout of CBOE’s RMM program. In particular, the Commission notes that accelerated approval of the proposal would enable CBOE to commence its RMM program with the inactivity fee in place, which should help to ensure that RMMs are aware that they will be subject to fees if they fail to submit quotations in their appointed classes. The Commission further notes that the proposal should help to prevent an RMM that obtains an electronic appointment in a product from not initiating quoting in that product. In addition, the Commission notes that the proposed inactivity fee is similar to a fee imposed by the International Securities Exchange (‘‘ISE’’).8 The Commission therefore believes that accelerated approval of the proposed rule change is appropriate and finds that it is consistent with the Act. It is therefore ordered, pursuant to section 19(b)(2) of the Act,9 that the 3 See Securities Exchange Act Release No. 51370 (March 15, 2005), 70 FR 13559. 4 In approving this proposed rule change, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 5 15 U.S.C. 78f. 6 15 U.S.C. 78f(b)(4). 7 15 U.S.C. 78s(b)(2). 8 See Securities Exchange Act Release 46272 (July 26, 2002), 67 FR 50497 (August 2, 2002); see also ISE Regulatory Information Circulars 2002–04 and 2002–09. 9 15 U.S.C. 78s(b)(2). E:\FR\FM\22APN1.SGM 22APN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 70, Number 77 (Friday, April 22, 2005)]
[Notices]
[Page 20952]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1883]



[[Page 20952]]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51543; File No. SR-CBOE-2005-23]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Granting Accelerated Approval to a Proposed Rule 
Change To Amend CBOE Rule 8.4 To Remove the Physical Trading Crowd 
Appointment Alternative for Remote Market-Makers and To Create an 
``A+'' Tier Consisting of the Two Most Actively-Traded Products on the 
Exchange

April 14, 2005.
    On March 15, 2005, 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 8.4(d) to 
remove the Physical Trading Crowd (``PTC'') appointment alternative for 
Remote Market-Makers (``RMMs'') and to create an ``A+'' Tier consisting 
of the two most actively-traded products on the Exchange.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

    The proposed rule change was published for comment in the Federal 
Register on March 21, 2005.\3\ The Commission received no comments on 
the proposal.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 51371 (March 15, 
2005), 70 FR 13557.
---------------------------------------------------------------------------

    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 \4\ and, in 
particular, the requirements of section 6 of the Act \5\ and the rules 
and regulations thereunder. The Commission specifically finds that the 
proposed rule change is consistent with section 6(b)(5) of the Act \6\ 
in that it is designed to promote just and equitable principles of 
trade, to remove impediments and to perfect the mechanism of a free and 
open market and a national market system, and, in general, to protect 
investors and the public interest.
---------------------------------------------------------------------------

    \4\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission finds good cause for approving the proposed rule 
change prior to the thirtieth day after the proposal is published for 
comment in the Federal Register pursuant to section 19(b)(2) of the 
Act.\7\ The Commission believes that accelerating approval of the 
proposal is necessary to accommodate the rollout of CBOE's RMM program. 
In particular, the Commission notes that the proposal would enable CBOE 
to commence its RMM program with two of the most actively-traded 
products included, options on Standard & Poor's Depositary Receipts 
(Spiders) and options on the Nasdaq-100 Index Tracking Stock (QQQQs), 
under a new ``A+'' Tier designation. Furthermore, the Commission notes 
that the proposal would eliminate the PTC appointment option for RMMs 
and would require them to have a Virtual Trading Crowd appointment, 
which should allow them greater flexibility to choose their own 
appointments. The Commission therefore believes that accelerated 
approval of the proposed rule change is appropriate and finds that it 
is consistent with the Act.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-CBOE-2005-23) be approved.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1883 Filed 4-21-05; 8:45 am]
BILLING CODE 8010-01-P

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.