Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change Relating to the Assignment of RAES Orders to Logged-In Market-Makers Participating on RAES, 28588-28592 [E5-2480]
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28588
Federal Register / Vol. 70, No. 95 / Wednesday, May 18, 2005 / Notices
in Item IV below. The Exchange has
prepared summaries, set forth in
Sections A, B and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
In June 2003, the Exchange reinstated
its options marketing fee of $0.40 per
contract on the transactions of
specialists and ROTs in equity options.5
Currently, the options marketing fee is
eligible to be assessed on all equity
options transactions (including options
on exchange-traded funds and trust
issued receipts). The Exchange proposes
to amend the options marketing fee in
connection with options on SPDRs to
increase the fee from the current level
of $0.40 to $1.00 per contract. All other
equity options would continue to
remain subject to the current options
marketing fee level of $0.40 per
contract.
The options marketing fee is assessed
on only those specialist and ROT
transactions involving customer orders
from firms that accept payment for
directing their orders to the Exchange
(‘‘payment accepting firms’’) with whom
a specialist has negotiated a payment for
order flow arrangement. In addition, the
options marketing fee is currently
assessed only on transactions of
specialists and ROTs with orders from
customers of payment accepting firms
that are for 200 contracts or less. The
Exchange proposes to eliminate the
restriction limiting the assessment of the
marketing fee for options transactions of
200 contracts or less. Thus, the fee
would be eligible to be assessed on all
transactions in equity options regardless
of the contract size.
The Exchange believes that the $1.00
per contract options marketing fee for
SPDR options is an equitable allocation
of a reasonable fee among members and
is designed to enable the Exchange to
compete with other markets in attracting
SPDR options order flow.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 6 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 7 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees, and
5 See Securities Exchange Act Release No. 48053
(June 17, 2003), 68 FR 37880 (June 25, 2003) (SR–
Amex–2003–50).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(4).
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14:03 May 17, 2005
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other charges among exchange members
and other persons using exchange
facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition 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
The Amex 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
Because the foregoing rule change
establishes or changes a due, fee, or
other charge imposed by the Exchange,
it has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act 8 and
subparagraph (f)(2) of Rule 19b–4
thereunder.9 Accordingly, the proposal
will take effect upon filing with the
Commission. 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 furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Amex–2005–050 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–Amex–2005–050. This file
PO 00000
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
Room. Copies of the filing also will be
available for inspection and copying at
the principal office of the Amex. 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–Amex–2005–050 and
should be submitted on or before June
8, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5–2481 Filed 5–17–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51684; File No. SR–CBOE–
2005–24]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of
Proposed Rule Change Relating to the
Assignment of RAES Orders to
Logged-In Market-Makers Participating
on RAES
May 11, 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 March 15,
2005, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
10 17
8 15
U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
Frm 00083
Fmt 4703
Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 70, No. 95 / Wednesday, May 18, 2005 / Notices
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by CBOE. 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 Exchange proposes to add an
alternative to the current procedures
that apply to the assignment of orders
on the Exchange’s Retail Automatic
Execution System (‘‘RAES’’) to CBOE
market-makers logged on to participate
in RAES. The text of the proposed rule
change is set forth below. Proposed new
language is in italics and proposed
deletions are in brackets.
*
*
*
*
*
Rule 6.8—RAES Operations
(a)–(g) No change.
*
*
*
*
*
* * * Interpretations and Policies
.01–.05 No change.
.06 (a) In the exercise of their
authority to determine the procedure for
assigning RAES-eligible orders to
Participating Market-Makers for
execution, the appropriate FPCs have
determined that in the absence of any
specified alternative assignment
methodology, an assigned Participating
Market-Maker is required to buy/sell the
entirety of each RAES order assigned to
him up to the maximum size of RAESeligible orders in that class of options.
Alternatively, the appropriate FPC may
specify that some or all options classes
are subject to ‘‘Variable RAES’’, [or to]
the ‘‘100 Spoke RAES Wheel’’, or with
respect to index option classes only, the
‘‘1000 Spoke RAES Wheel’’. Other than
immediately after the Commission
initially approves the Exchange to use
Variable RAES (in which case Variable
RAES may be implemented without the
requisite notice), any time the
appropriate FPC intends to discuss an
issue related to the RAES allocation
method the FPC must provide at least
three days’ advance notice to the
Exchange’s membership and must
provide members with either the
opportunity to provide written
comments or the opportunity to appear
at the meeting, or both regarding the
proposed change.
(b) No change.
(c) Under the ‘‘100 Spoke RAES
Wheel,’’ RAES orders would be assigned
to logged-in market makers [according
to] based on the percentage of their inperson agency contracts traded in that
class (excluding RAES contracts traded)
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compared to all of the market-maker inperson agency contracts traded
(excluding RAES contracts) during the
review period. The review period will
be determined by the appropriate Floor
Procedure Committee and may be for
any period not in excess of 10 trading
days within the previous 30 calendar
days. The trading days within the
review period may be for nonconsecutive trading days. The
percentage distribution will be
calculated at the conclusion of each
trading day and will be applied to the
100 Spoke RAES Wheel distribution on
the following trading day. On each
revolution of the RAES wheel, subject to
the exceptions described below, each
participating market-maker (who is
logged onto RAES at the time) will be
assigned enough contracts to replicate
his percentage of contracts on RAES that
he traded in-person in that class during
the review period. A participation
percentage will be calculated for each
market-maker for each class that the
market-maker trades. For this purpose
all DPM Designees of the same DPM
unit will have their percentage
aggregated into a single percentage for
the DPM unit.
Once a market-maker has logged onto
RAES, he will be assigned contracts on
the RAES Wheel until his market-maker
participation percentage has been met.
This may mean that multiple orders (or
an order and a part of the succeeding
order) will be assigned to the same
market-maker on the Wheel. To
understand how the RAES orders will
actually be allocated to market-makers
to meet those percentages, one must
understand the concepts of ‘‘spokes’’
and ‘‘wedges.’’ A ‘‘spoke’’ is 1% of the
RAES wheel and often may be equal to
one contract. The appropriate Floor
Procedure Committee may determine
the number of contracts that make up
one spoke. Each market-maker logged
onto RAES for that class, regardless of
his participation percentage, is entitled
to be assigned at least one spoke on
every revolution of the RAES wheel. For
example, if a spoke equals one contract
then there will be 100 [spokes] contracts
that will be assigned to market-makers
on every revolution of the RAES wheel.
If a spoke is defined as five contracts
then there will be 500 RAES contracts
assigned to the participating marketmakers before the RAES wheel
completes one revolution. Generally, the
RAES Wheel will consist of the number
of spokes replicating the cumulative
percentage of all market-makers logged
onto the system who have a
participation percentage plus one spoke
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28589
for each market-maker that does not
have a specific participation percentage.
A ‘‘wedge’’ is the maximum number
of spokes that a market-maker may be
consecutively assigned at any one time
on the RAES wheel. Because the size of
the wedge may be smaller than the
number of contracts to which a
particular market-maker is entitled
during one revolution of the RAES
Wheel, that market-maker will receive
more than one turn during one
revolution of the RAES wheel. The
wedge size will be variable, at the
discretion of the appropriate Floor
Procedure Committee and may be
different for different classes or the
same for all classes. The appropriate
Floor Procedure Committee will notify
the membership of each class of options
that is subject to the ‘‘100 Spoke RAES
Wheel’’.
(d) Under the ‘‘1000 Spoke RAES
Wheel’’, which may only be
implemented in index option classes, all
of the terms and provisions set forth in
CBOE Rule 6.8.06(c) with respect to the
100 Spoke RAES Wheel shall apply to
the 1000 Spoke RAES Wheel, except
that (i) the 1000 Spoke RAES Wheel is
comprised of 1000 spokes, each of
which generally represents .1% of the
1000 Spoke RAES Wheel, and (ii) the
appropriate Floor Procedure Committee
shall determine on a class by class basis
whether the assignment of RAES orders
to logged-in Market-Makers is based on
the percentage of a Market-Maker’s
contracts traded in that index option
class (excluding RAES contracts traded)
compared to all Market-Maker contracts
traded (excluding RAES contracts)
during the review period, or the
percentage of the Market-Maker’s inperson agency contracts traded in that
class (excluding RAES contracts traded)
compared to all Market-Maker in-person
agency contracts traded (excluding
RAES contracts) during the review
period.
The appropriate Floor Procedure
Committee will notify the membership
of each class of options that is subject
to the ‘‘1000 Spoke RAES Wheel’’ and
the method of allocation for RAES
orders under the 1000 Spoke RAES
Wheel.
([d] e) The effectiveness of any other
methodology for assigning RAES orders
to Participating Market-Makers that may
be adopted by an appropriate FPC shall
be conditioned upon its having been
filed with the Securities and Exchange
Commission pursuant to Section 19(b)
of the Securities Exchange Act of 1934.
.07–.09 No change.
*
*
*
*
*
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Federal Register / Vol. 70, No. 95 / Wednesday, May 18, 2005 / Notices
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
CBOE included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. CBOE has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
CBOE Rule 6.8—RAES Operations—
governs the execution of orders on
RAES. CBOE Rule 6.8.06 sets forth
alternatives available to the appropriate
Floor Procedure Committee to
implement the procedures for the
assignment of RAES-eligible orders to
CBOE market-makers logged on to RAES
for execution. One alternative set forth
in current Rule 6.8.06(c), the ‘‘100
Spoke RAES Wheel,’’ assigns RAES
orders to logged-in market-makers based
on the percentage of their in-person
agency contracts traded in that class
(excluding RAES contracts traded)
compared to all of the market-maker in-
person agency contracts traded
(excluding RAES contracts) during the
review period.3 The proposed rule
change sets forth a new alternative,
available only in index option classes,
that offers a wheel with 1000 spokes
and assignment procedures that are
similar to the assignment procedures
applicable to the 100 Spoke RAES
Wheel.
Under the proposed 1000 Spoke
RAES Wheel, the appropriate Floor
Procedure Committee will determine on
a class-by-class basis whether the
assignment of RAES orders to logged-in
market-makers is based on the
percentage of a market-maker’s contracts
traded in that index option class
(excluding RAES contracts traded)
compared to all market-maker contracts
traded (excluding RAES contracts)
during the review period, or the
percentage of the market-maker’s inperson agency contracts traded in that
class (excluding RAES contracts traded)
compared to all market-maker in-person
agency contracts traded (excluding
RAES contracts) during the review
period. As is the case with the 100
Spoke RAES Wheel, the procedure for
the 1000 Spoke RAES Wheel would
provide that on each revolution of the
wheel, each participating market-maker
who is logged in RAES at the time will
be assigned a number of contracts that
approximates the percentage of
contracts on RAES that he or she traded
in-person in that index option class
during the review period, subject to the
restrictions set forth in current Rule
6.8.06(c).
The effect of utilizing the 1000 Spoke
RAES Wheel instead of the 100 Spoke
RAES Wheel is that the number of
contracts allocated to a market-maker
will increase by a factor of 10 for every
revolution of the RAES wheel. This
procedure is designed to reduce the
rounding effects that result under the
100 Spoke RAES Wheel (the RAES
system configuration rounds contracts
to the nearest whole number). For
example, if the percentage of a market
maker’s contracts traded in an index
option class compared to all of the
market-maker in person contracts traded
during the review period is 1.34%, the
100 Spoke RAES Wheel would allocate
1 contract to the market-maker for every
revolution of the RAES wheel. In
contrast, the 1000 Spoke RAES Wheel
would allocate 13 contracts to the
market-maker (13.4 contracts, rounded
to the nearest whole number) for every
revolution.
Allocation Example. To better
understand how RAES contracts would
be assigned under the ‘‘1000 Spoke
RAES Wheel,’’ the table below shows
the allocations a market-maker would
receive under each of the ‘‘100 Spoke
RAES Wheel’’ and ‘‘1000 Spoke RAES
Wheel.’’ The example assumes that one
spoke on the 1000 Spoke RAES Wheel
is equivalent to one contract.4
Percent of
market-maker
non-RAES
volume
Market-maker
1 ...................................................................................................................................................
2 ...................................................................................................................................................
3 ...................................................................................................................................................
4 ...................................................................................................................................................
5 ...................................................................................................................................................
6 ...................................................................................................................................................
7 ...................................................................................................................................................
8 ...................................................................................................................................................
9 ...................................................................................................................................................
10 .................................................................................................................................................
3 As stated in CBOE Rule 6.8.06(c), the review
period will be determined by the appropriate Floor
Procedure Committee and may be for any period
not in excess of 10 trading days within the previous
30 calendar days. The trading days within the
review period may be for non-consecutive trading
days. According to CBOE, the review period is redetermined, and thus participation percentages are
re-calculated, on a daily basis. Thus, CBOE notes
that while a new market-maker is entitled to be
assigned at least one spoke on every revolution of
the RAES wheel, the market-maker would on
subsequent days be entitled to replicate the
percentage of non-RAES contracts that he actually
traded during the relevant review period. For
example, if a new market-maker signs onto RAES
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and is allocated one spoke, but the market-maker
trades enough non-RAES contracts on that day to
qualify the market-maker for more than one spoke
when the review period is re-determined on the
following day, the market-maker would be entitled
to such additional spoke or spokes. Telephone
conferences between David M. Doherty, Assistant
Secretary, CBOE, and Geoffrey C. Pemble, Special
Counsel, Division of Market Regulation, Securities
and Exchange Commission, on April 6, 2005 and
between Mr. Doherty and David L. Orlic, Attorney,
Division of Market Regulation, Securities and
Exchange Commission, on April 22, 2005.
4 Normally, one spoke on the wheel will be
equivalent to one contract, except that the
PO 00000
Frm 00085
Fmt 4703
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37.90
30.40
9.90
4.49
2.90
1.25
1.40
0.85
0.90
0.00
Number of
contracts
based on a
100 spoke
wheel
38
30
10
4
3
1
1
1
1
1
Number of
contracts
based on 1000
spoke wheel
379
304
99
45
29
13
14
9
9
1
appropriate Floor Procedure Committee may
establish a larger spoke size. Changing the spoke
size (and thus, the wheel size) does not change the
participation percentages of the individual marketmakers. Each market-maker logged on to RAES is
entitled to at least one spoke on every revolution
of the wheel, regardless of what might otherwise be
his entitlement based on his participation during
the review period. This ensures that new marketmakers logged on to RAES have a minimum
participation in RAES transactions. These
procedures are identical to the procedures
governing the allocation of trades under the 100
Spoke RAES Wheel.
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Federal Register / Vol. 70, No. 95 / Wednesday, May 18, 2005 / Notices
Percent of
market-maker
non-RAES
volume
Market-maker
Totals ....................................................................................................................................
The table set forth above demonstrates
that the 1000 Spoke RAES Wheel more
closely approximates a market-maker’s
participation percentage. The allocation
of 902 contracts in the 1000 Spoke
RAES Wheel also highlights the
fluctuation of the RAES wheel size
resulting from the rounding effects and
the inclusion of new market-makers
who do not have a participation
percentage in the wheel.
The Exchange notes that the operation
of the ‘‘wedge’’ allocation, which
establishes the maximum number of
spokes that a market-maker may be
consecutively assigned at any one time
on the wheel, would limit consecutive
distributions to any one market-maker.
A wedge is the maximum number of
spokes that may be assigned to a marketmaker in any one ‘‘hit’’ during a rotation
of the RAES Wheel. The concept of the
wedge system ensures that each marketmaker eligible to participate during a
particular review period will be
assigned at least some contracts before
market-makers entitled to a greater
number of spokes are assigned all of
their contracts in a given revolution.
The wedge system also breaks up the
distribution of contracts into smaller
groupings in order to reduce exposure of
any one market-maker to market risk. If
the size of the wedge is smaller than the
number of spokes to which a particular
market-maker may be entitled based on
his participation percentage, the marketmaker will be assigned more than once
during one revolution of the RAES
Wheel. For example, in the table above,
where one spoke on the 1000 Spoke
RAES Wheel is equal to one contract,
MM7 would receive a total of 14
contracts during one revolution of the
RAES Wheel. If the wedge size is 10,
MM7 will first be assigned 10 contracts
on the RAES Wheel and then 4 contracts
at a different place on the RAES Wheel
during that same revolution. Thus, in
one complete revolution of the RAES
Wheel, he will be assigned two times for
a total of 14 contracts, consisting of one
10-contract assignment and one 4contract assignment. As set forth in
current Rule 6.8.06(c), which rule
would govern the 1000 Spoke RAES
Wheel, the wedge size will be variable
at the discretion of the appropriate Floor
Procedure Committee and may be
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........................
different for different index classes or
the same for all index classes.
The proposed rule changes also
propose to revise the type of trades that
could be included in the percentage
allocation under the 1000 Spoke RAES
Wheel. Specifically, the proposed rule
would permit the appropriate Floor
Procedure Committee to determine on a
class by class basis whether the
assignment of RAES orders to logged-in
market-makers is based on the
percentage of a market-maker’s contracts
traded in that index option class
(excluding RAES contracts traded)
compared to all of the market-maker
contracts traded (excluding RAES
contracts) during the review period, or
the percentage of the market-maker’s inperson agency contracts traded in that
class (excluding RAES contracts traded)
compared to all of the market-maker inperson agency contracts traded
(excluding RAES contracts) during the
review period. The purpose of this
proposed change is to recognize the
trading dynamics that exist in index
option trading crowds where trading
between market makers is more
prevalent.5 Other than the proposed
changes described above, all other terms
and provisions that apply to the 100
Spoke RAES Wheel as provided in
CBOE Rule 6.8.06(c) would apply to the
1000 Spoke RAES Wheel.
Lastly, the Exchange is revising CBOE
Rule 6.8.06(c) to make clarifying
changes to the description of the
operation of the 100 Spoke RAES
Wheel.
The Exchange believes the proposed
1000 Spoke RAES Wheel will provide a
viable alternative to the 100 Spoke
RAES Wheel, which was used in some
equity option trading crowds prior to
the transfer of equity option trading to
the Exchange’s Hybrid system. The
Exchange developed the 100 Spoke
RAES Wheel to better distribute RAES
volume to those market-makers
providing greater liquidity in the trading
pits. However, index floor procedure
committees have not employed the 100
Spoke RAES Wheel alternative because
5 Telephone conversation between David M.
Doherty, Assistant Secretary, CBOE, and David L.
Orlic, Attorney, Division of Market Regulation,
Securities and Exchange Commission, on April 22,
2005.
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Number of
contracts
based on a
100 spoke
wheel
Number of
contracts
based on 1000
spoke wheel
90
902
of the rounding effects that would occur
in large trading crowds.6 Specifically, as
the trading crowds increase, the
percentage allocation becomes more
widely dispersed among the many
market-makers in index trading crowds.
The rounding requirements could erode
allocations even further for marketmakers with small percentage
allocations, which would occur on a
more frequent basis as the size of the
crowd increases. The Exchange believes
the 1000 Spoke RAES Wheel would
diminish this effect, while at the same
time preserving the distribution benefits
to those market-makers providing
greater liquidity in index trading pits.
2. Statutory Basis
CBOE believes the proposed rule
change is consistent with the Act and
the rules and regulations under the Act
applicable to a national securities
exchange and, in particular, the
requirements of Section 6(b) of the Act.7
Specifically, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 8 requirements that
the rules of an exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts and, in general, to
protect investors and the public interest.
CBOE believes that the proposed rule
change will enhance the ability of the
Exchange to provide instantaneous
automatic execution of public customer
orders at the best available prices in
index option classes.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
6 Telephone conversation between David M.
Doherty, Assistant Secretary, CBOE, and David L.
Orlic, Attorney, Division of Market Regulation,
Securities and Exchange Commission, on April 22,
2005.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
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Federal Register / Vol. 70, No. 95 / Wednesday, May 18, 2005 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange did not solicit or
receive any written comments with
respect to the proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
A. By order approve the proposed rule
change, or
B. Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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–2005–24 on the
subject line.
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 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–
2005–24 and should be submitted on or
before June 8, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5–2480 Filed 5–17–05; 8:45 am]
BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
Notice of Action Subject to
Intergovernmental Review Under
Executive Order 12372
U.S. Small Business
Administration.
ACTION: Notice of action subject to
intergovernmental review under
Executive Order 12372.
AGENCY:
SUMMARY: The Small Business
Administration (SBA) is notifying the
public that it intends to grant the
pending applications of 22 existing
Small Business Development Centers
Paper comments
(SBDCs) for refunding on October 1,
2005, subject to the availability of funds.
• Send paper comments in triplicate
Six states do not participate in the EO
to Jonathan G. Katz, Secretary,
12372 process; therefore, their addresses
Securities and Exchange Commission,
are not included. A short description of
450 Fifth Street, NW., Washington, DC
the SBDC program follows in the
20549–0609.
All submissions should refer to File
SUPPLEMENTARY INFORMATION below.
The SBA is publishing this notice at
Number SR–CBOE–2005–24. This file
least 120 days before the expected
number should be included on the
subject line if e-mail is used. To help the refunding date. The SBDCs and their
mailing addresses are listed below in
Commission process and review your
the address section. A copy of this
comments more efficiently, please use
only one method. The Commission will notice also is being furnished to the
post all comments on the Commission’s respective State single points of contact
designated under the Executive Order.
Internet Web site (https://www.sec.gov/
Each SBDC application must be
rules/sro.shtml). Copies of the
consistent with any area-wide small
submission, all subsequent
business assistance plan adopted by a
amendments, all written statements
State-authorized agency.
with respect to the proposed rule
change that are filed with the
DATES: A State single point of contact
Commission, and all written
and other interested State or local
communications relating to the
entities may submit written comments
proposed rule change between the
9 17 CFR 200.30–3(a)(12).
Commission and any person, other than
VerDate jul<14>2003
14:03 May 17, 2005
Jkt 205001
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
regarding an SBDC refunding within 30
days from the date of publication of this
notice to the SBDC.
ADDRESSES:
Addresses or Relevant SBDC State Directors
Mr. Al Salgado, Region Director, Univ. of
Texas at San Antonio, 501 West Durango
Blvd., San Antonio, TX 78207. (210) 458–
2450.
Mr. Conley Salyer, State Director, West
Virginia Development Office, 950 Kanawha
Boulevard, East, Charleston, WV 25301.
(304) 558–2960.
Mr. Clinton Tymes, State Director, University
of Delaware, One Innovation Way, Suite
301, Newark, DE 19711. (302) 831–2747.
Ms. Carmen Marti, SBDC Director, Inter
American University of Puerto Rico, Ponce
de Leon Avenue, #416, Edificio Union
Plaza, Seventh Floor, Hato Rey, PR 00918.
(787) 763–6811.
Mr. Michael Young, Region Director,
University of Houston, 2302 Fannin, Suite
200, Houston, TX 77002. (713) 752–8425.
Ms. Becky Naugle, State Director, University
of Kentucky, 225 Gatton College of
Business Economics, Lexington, KY,
40506–0034. (859) 257–7668.
Ms. Liz Klimback, Region Director, Dallas
Community College, 1402 Corinth Street,
Dallas, TX 75212. (214) 860–5835.
Ms. Rene Sprow, State Director, Univ. of
Maryland @ College Park, 7100 Baltimore
Avenue, Suite 401, Baltimore, MD 20742–
1815. (301) 403–8300.
Mr. Craig Bean, Region Director, Texas Tech
University, 2579 South Loop 289, Suite
114, Lubbock, TX 79423–1637. (806) 745–
3973.
Ms. Diane Wolverton, State Director,
University of Wyoming, P.O. Box 3922,
Laramie, WY 82071. (307) 766–3505.
Mr. Max Summers, State Director, University
of Missouri, 1205 University Avenue, Suite
300, Columbia, MO 65211. (573) 882–1348.
Mr. Jon Ryan, State Director, Iowa State
University, 340 Gerdin Business Building,
Ames, IA 50011–1350. (515) 2942–2037.
Mr. James L. King, State Director, State
University of New York, SUNY Plaza, S–
523, Albany, NY 12246. (518) 443–5398.
Ms. Jane Howard, Acting State Director, Ohio
Department of Development, 77 South
High Street, 28th Floor, Columbus, OH
43216–1001. (614) 466–5095.
Mr. Donald L. Kelpinski, State Director,
Vermont Technical College, P.O. Box 188,
Randolph Center, VT 05061–0188. (802)
728–9101.
Mr. Warren Bush, SBDC Director, University
of the Virgin Islands, 8000 Nisky Center,
Suite 720, St. Thomas, US VI 00802–5804.
(340) 776–3206.
FOR FURTHER INFORMATION CONTACT:
Antonio Doss, Associate Administrator
for SBDCs, U.S. Small Business
Administration, 409 Third Street, SW.,
Sixth Floor, Washington, DC 20416.
SUPPLEMENTARY INFORMATION:
Description of the SBDC Program
A partnership exists between SBA
and an SBDC. SBDCs offer training,
E:\FR\FM\18MYN1.SGM
18MYN1
]]>Agencies
[Federal Register Volume 70, Number 95 (Wednesday, May 18, 2005)]
[Notices]
[Pages 28588-28592]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-2480]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51684; File No. SR-CBOE-2005-24]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of Proposed Rule Change Relating to the
Assignment of RAES Orders to Logged-In Market-Makers Participating on
RAES
May 11, 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 March 15, 2005, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange
Commission
[[Page 28589]]
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by CBOE. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to add an alternative to the current
procedures that apply to the assignment of orders on the Exchange's
Retail Automatic Execution System (``RAES'') to CBOE market-makers
logged on to participate in RAES. The text of the proposed rule change
is set forth below. Proposed new language is in italics and proposed
deletions are in brackets.
* * * * *
Rule 6.8--RAES Operations
(a)-(g) No change.
* * * * *
* * * Interpretations and Policies
.01-.05 No change.
.06 (a) In the exercise of their authority to determine the
procedure for assigning RAES-eligible orders to Participating Market-
Makers for execution, the appropriate FPCs have determined that in the
absence of any specified alternative assignment methodology, an
assigned Participating Market-Maker is required to buy/sell the
entirety of each RAES order assigned to him up to the maximum size of
RAES-eligible orders in that class of options. Alternatively, the
appropriate FPC may specify that some or all options classes are
subject to ``Variable RAES'', [or to] the ``100 Spoke RAES Wheel'', or
with respect to index option classes only, the ``1000 Spoke RAES
Wheel''. Other than immediately after the Commission initially approves
the Exchange to use Variable RAES (in which case Variable RAES may be
implemented without the requisite notice), any time the appropriate FPC
intends to discuss an issue related to the RAES allocation method the
FPC must provide at least three days' advance notice to the Exchange's
membership and must provide members with either the opportunity to
provide written comments or the opportunity to appear at the meeting,
or both regarding the proposed change.
(b) No change.
(c) Under the ``100 Spoke RAES Wheel,'' RAES orders would be
assigned to logged-in market makers [according to] based on the
percentage of their in-person agency contracts traded in that class
(excluding RAES contracts traded) compared to all of the market-maker
in-person agency contracts traded (excluding RAES contracts) during the
review period. The review period will be determined by the appropriate
Floor Procedure Committee and may be for any period not in excess of 10
trading days within the previous 30 calendar days. The trading days
within the review period may be for non-consecutive trading days. The
percentage distribution will be calculated at the conclusion of each
trading day and will be applied to the 100 Spoke RAES Wheel
distribution on the following trading day. On each revolution of the
RAES wheel, subject to the exceptions described below, each
participating market-maker (who is logged onto RAES at the time) will
be assigned enough contracts to replicate his percentage of contracts
on RAES that he traded in-person in that class during the review
period. A participation percentage will be calculated for each market-
maker for each class that the market-maker trades. For this purpose all
DPM Designees of the same DPM unit will have their percentage
aggregated into a single percentage for the DPM unit.
Once a market-maker has logged onto RAES, he will be assigned
contracts on the RAES Wheel until his market-maker participation
percentage has been met. This may mean that multiple orders (or an
order and a part of the succeeding order) will be assigned to the same
market-maker on the Wheel. To understand how the RAES orders will
actually be allocated to market-makers to meet those percentages, one
must understand the concepts of ``spokes'' and ``wedges.'' A ``spoke''
is 1% of the RAES wheel and often may be equal to one contract. The
appropriate Floor Procedure Committee may determine the number of
contracts that make up one spoke. Each market-maker logged onto RAES
for that class, regardless of his participation percentage, is entitled
to be assigned at least one spoke on every revolution of the RAES
wheel. For example, if a spoke equals one contract then there will be
100 [spokes] contracts that will be assigned to market-makers on every
revolution of the RAES wheel. If a spoke is defined as five contracts
then there will be 500 RAES contracts assigned to the participating
market-makers before the RAES wheel completes one revolution.
Generally, the RAES Wheel will consist of the number of spokes
replicating the cumulative percentage of all market-makers logged onto
the system who have a participation percentage plus one spoke for each
market-maker that does not have a specific participation percentage.
A ``wedge'' is the maximum number of spokes that a market-maker may
be consecutively assigned at any one time on the RAES wheel. Because
the size of the wedge may be smaller than the number of contracts to
which a particular market-maker is entitled during one revolution of
the RAES Wheel, that market-maker will receive more than one turn
during one revolution of the RAES wheel. The wedge size will be
variable, at the discretion of the appropriate Floor Procedure
Committee and may be different for different classes or the same for
all classes. The appropriate Floor Procedure Committee will notify the
membership of each class of options that is subject to the ``100 Spoke
RAES Wheel''.
(d) Under the ``1000 Spoke RAES Wheel'', which may only be
implemented in index option classes, all of the terms and provisions
set forth in CBOE Rule 6.8.06(c) with respect to the 100 Spoke RAES
Wheel shall apply to the 1000 Spoke RAES Wheel, except that (i) the
1000 Spoke RAES Wheel is comprised of 1000 spokes, each of which
generally represents .1% of the 1000 Spoke RAES Wheel, and (ii) the
appropriate Floor Procedure Committee shall determine on a class by
class basis whether the assignment of RAES orders to logged-in Market-
Makers is based on the percentage of a Market-Maker's contracts traded
in that index option class (excluding RAES contracts traded) compared
to all Market-Maker contracts traded (excluding RAES contracts) during
the review period, or the percentage of the Market-Maker's in-person
agency contracts traded in that class (excluding RAES contracts traded)
compared to all Market-Maker in-person agency contracts traded
(excluding RAES contracts) during the review period.
The appropriate Floor Procedure Committee will notify the
membership of each class of options that is subject to the ``1000 Spoke
RAES Wheel'' and the method of allocation for RAES orders under the
1000 Spoke RAES Wheel.
([d] e) The effectiveness of any other methodology for assigning
RAES orders to Participating Market-Makers that may be adopted by an
appropriate FPC shall be conditioned upon its having been filed with
the Securities and Exchange Commission pursuant to Section 19(b) of the
Securities Exchange Act of 1934.
.07-.09 No change.
* * * * *
[[Page 28590]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, CBOE included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. CBOE has prepared summaries, set forth in Sections A, B,
and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
CBOE Rule 6.8--RAES Operations--governs the execution of orders on
RAES. CBOE Rule 6.8.06 sets forth alternatives available to the
appropriate Floor Procedure Committee to implement the procedures for
the assignment of RAES-eligible orders to CBOE market-makers logged on
to RAES for execution. One alternative set forth in current Rule
6.8.06(c), the ``100 Spoke RAES Wheel,'' assigns RAES orders to logged-
in market-makers based on the percentage of their in-person agency
contracts traded in that class (excluding RAES contracts traded)
compared to all of the market-maker in-person agency contracts traded
(excluding RAES contracts) during the review period.\3\ The proposed
rule change sets forth a new alternative, available only in index
option classes, that offers a wheel with 1000 spokes and assignment
procedures that are similar to the assignment procedures applicable to
the 100 Spoke RAES Wheel.
---------------------------------------------------------------------------
\3\ As stated in CBOE Rule 6.8.06(c), the review period will be
determined by the appropriate Floor Procedure Committee and may be
for any period not in excess of 10 trading days within the previous
30 calendar days. The trading days within the review period may be
for non-consecutive trading days. According to CBOE, the review
period is re-determined, and thus participation percentages are re-
calculated, on a daily basis. Thus, CBOE notes that while a new
market-maker is entitled to be assigned at least one spoke on every
revolution of the RAES wheel, the market-maker would on subsequent
days be entitled to replicate the percentage of non-RAES contracts
that he actually traded during the relevant review period. For
example, if a new market-maker signs onto RAES and is allocated one
spoke, but the market-maker trades enough non-RAES contracts on that
day to qualify the market-maker for more than one spoke when the
review period is re-determined on the following day, the market-
maker would be entitled to such additional spoke or spokes.
Telephone conferences between David M. Doherty, Assistant Secretary,
CBOE, and Geoffrey C. Pemble, Special Counsel, Division of Market
Regulation, Securities and Exchange Commission, on April 6, 2005 and
between Mr. Doherty and David L. Orlic, Attorney, Division of Market
Regulation, Securities and Exchange Commission, on April 22, 2005.
---------------------------------------------------------------------------
Under the proposed 1000 Spoke RAES Wheel, the appropriate Floor
Procedure Committee will determine on a class-by-class basis whether
the assignment of RAES orders to logged-in market-makers is based on
the percentage of a market-maker's contracts traded in that index
option class (excluding RAES contracts traded) compared to all market-
maker contracts traded (excluding RAES contracts) during the review
period, or the percentage of the market-maker's in-person agency
contracts traded in that class (excluding RAES contracts traded)
compared to all market-maker in-person agency contracts traded
(excluding RAES contracts) during the review period. As is the case
with the 100 Spoke RAES Wheel, the procedure for the 1000 Spoke RAES
Wheel would provide that on each revolution of the wheel, each
participating market-maker who is logged in RAES at the time will be
assigned a number of contracts that approximates the percentage of
contracts on RAES that he or she traded in-person in that index option
class during the review period, subject to the restrictions set forth
in current Rule 6.8.06(c).
The effect of utilizing the 1000 Spoke RAES Wheel instead of the
100 Spoke RAES Wheel is that the number of contracts allocated to a
market-maker will increase by a factor of 10 for every revolution of
the RAES wheel. This procedure is designed to reduce the rounding
effects that result under the 100 Spoke RAES Wheel (the RAES system
configuration rounds contracts to the nearest whole number). For
example, if the percentage of a market maker's contracts traded in an
index option class compared to all of the market-maker in person
contracts traded during the review period is 1.34%, the 100 Spoke RAES
Wheel would allocate 1 contract to the market-maker for every
revolution of the RAES wheel. In contrast, the 1000 Spoke RAES Wheel
would allocate 13 contracts to the market-maker (13.4 contracts,
rounded to the nearest whole number) for every revolution.
Allocation Example. To better understand how RAES contracts would
be assigned under the ``1000 Spoke RAES Wheel,'' the table below shows
the allocations a market-maker would receive under each of the ``100
Spoke RAES Wheel'' and ``1000 Spoke RAES Wheel.'' The example assumes
that one spoke on the 1000 Spoke RAES Wheel is equivalent to one
contract.\4\
---------------------------------------------------------------------------
\4\ Normally, one spoke on the wheel will be equivalent to one
contract, except that the appropriate Floor Procedure Committee may
establish a larger spoke size. Changing the spoke size (and thus,
the wheel size) does not change the participation percentages of the
individual market-makers. Each market-maker logged on to RAES is
entitled to at least one spoke on every revolution of the wheel,
regardless of what might otherwise be his entitlement based on his
participation during the review period. This ensures that new
market-makers logged on to RAES have a minimum participation in RAES
transactions. These procedures are identical to the procedures
governing the allocation of trades under the 100 Spoke RAES Wheel.
----------------------------------------------------------------------------------------------------------------
Percent of Number of Number of
market-maker contracts contracts
Market-maker non-RAES based on a 100 based on 1000
volume spoke wheel spoke wheel
----------------------------------------------------------------------------------------------------------------
1............................................................... 37.90 38 379
2............................................................... 30.40 30 304
3............................................................... 9.90 10 99
4............................................................... 4.49 4 45
5............................................................... 2.90 3 29
6............................................................... 1.25 1 13
7............................................................... 1.40 1 14
8............................................................... 0.85 1 9
9............................................................... 0.90 1 9
10.............................................................. 0.00 1 1
-----------------
[[Page 28591]]
Totals...................................................... .............. 90 902
----------------------------------------------------------------------------------------------------------------
The table set forth above demonstrates that the 1000 Spoke RAES
Wheel more closely approximates a market-maker's participation
percentage. The allocation of 902 contracts in the 1000 Spoke RAES
Wheel also highlights the fluctuation of the RAES wheel size resulting
from the rounding effects and the inclusion of new market-makers who do
not have a participation percentage in the wheel.
The Exchange notes that the operation of the ``wedge'' allocation,
which establishes the maximum number of spokes that a market-maker may
be consecutively assigned at any one time on the wheel, would limit
consecutive distributions to any one market-maker. A wedge is the
maximum number of spokes that may be assigned to a market-maker in any
one ``hit'' during a rotation of the RAES Wheel. The concept of the
wedge system ensures that each market-maker eligible to participate
during a particular review period will be assigned at least some
contracts before market-makers entitled to a greater number of spokes
are assigned all of their contracts in a given revolution. The wedge
system also breaks up the distribution of contracts into smaller
groupings in order to reduce exposure of any one market-maker to market
risk. If the size of the wedge is smaller than the number of spokes to
which a particular market-maker may be entitled based on his
participation percentage, the market-maker will be assigned more than
once during one revolution of the RAES Wheel. For example, in the table
above, where one spoke on the 1000 Spoke RAES Wheel is equal to one
contract, MM7 would receive a total of 14 contracts during one
revolution of the RAES Wheel. If the wedge size is 10, MM7 will first
be assigned 10 contracts on the RAES Wheel and then 4 contracts at a
different place on the RAES Wheel during that same revolution. Thus, in
one complete revolution of the RAES Wheel, he will be assigned two
times for a total of 14 contracts, consisting of one 10-contract
assignment and one 4-contract assignment. As set forth in current Rule
6.8.06(c), which rule would govern the 1000 Spoke RAES Wheel, the wedge
size will be variable at the discretion of the appropriate Floor
Procedure Committee and may be different for different index classes or
the same for all index classes.
The proposed rule changes also propose to revise the type of trades
that could be included in the percentage allocation under the 1000
Spoke RAES Wheel. Specifically, the proposed rule would permit the
appropriate Floor Procedure Committee to determine on a class by class
basis whether the assignment of RAES orders to logged-in market-makers
is based on the percentage of a market-maker's contracts traded in that
index option class (excluding RAES contracts traded) compared to all of
the market-maker contracts traded (excluding RAES contracts) during the
review period, or the percentage of the market-maker's in-person agency
contracts traded in that class (excluding RAES contracts traded)
compared to all of the market-maker in-person agency contracts traded
(excluding RAES contracts) during the review period. The purpose of
this proposed change is to recognize the trading dynamics that exist in
index option trading crowds where trading between market makers is more
prevalent.\5\ Other than the proposed changes described above, all
other terms and provisions that apply to the 100 Spoke RAES Wheel as
provided in CBOE Rule 6.8.06(c) would apply to the 1000 Spoke RAES
Wheel.
---------------------------------------------------------------------------
\5\ Telephone conversation between David M. Doherty, Assistant
Secretary, CBOE, and David L. Orlic, Attorney, Division of Market
Regulation, Securities and Exchange Commission, on April 22, 2005.
---------------------------------------------------------------------------
Lastly, the Exchange is revising CBOE Rule 6.8.06(c) to make
clarifying changes to the description of the operation of the 100 Spoke
RAES Wheel.
The Exchange believes the proposed 1000 Spoke RAES Wheel will
provide a viable alternative to the 100 Spoke RAES Wheel, which was
used in some equity option trading crowds prior to the transfer of
equity option trading to the Exchange's Hybrid system. The Exchange
developed the 100 Spoke RAES Wheel to better distribute RAES volume to
those market-makers providing greater liquidity in the trading pits.
However, index floor procedure committees have not employed the 100
Spoke RAES Wheel alternative because of the rounding effects that would
occur in large trading crowds.\6\ Specifically, as the trading crowds
increase, the percentage allocation becomes more widely dispersed among
the many market-makers in index trading crowds. The rounding
requirements could erode allocations even further for market-makers
with small percentage allocations, which would occur on a more frequent
basis as the size of the crowd increases. The Exchange believes the
1000 Spoke RAES Wheel would diminish this effect, while at the same
time preserving the distribution benefits to those market-makers
providing greater liquidity in index trading pits.
---------------------------------------------------------------------------
\6\ Telephone conversation between David M. Doherty, Assistant
Secretary, CBOE, and David L. Orlic, Attorney, Division of Market
Regulation, Securities and Exchange Commission, on April 22, 2005.
---------------------------------------------------------------------------
2. Statutory Basis
CBOE believes the proposed rule change is consistent with the Act
and the rules and regulations under the Act applicable to a national
securities exchange and, in particular, the requirements of Section
6(b) of the Act.\7\ Specifically, the Exchange believes the proposed
rule change is consistent with the Section 6(b)(5) \8\ requirements
that the rules of an exchange be designed to promote just and equitable
principles of trade, to prevent fraudulent and manipulative acts and,
in general, to protect investors and the public interest. CBOE believes
that the proposed rule change will enhance the ability of the Exchange
to provide instantaneous automatic execution of public customer orders
at the best available prices in index option classes.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
[[Page 28592]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange did not solicit or receive any written comments with
respect to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
A. By order approve the proposed rule change, or
B. Institute proceedings to determine whether the proposed rule
change should be disapproved.
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-2005-24 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-2005-24. 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 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-2005-24
and should be submitted on or before June 8, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5-2480 Filed 5-17-05; 8:45 am]
BILLING CODE 8010-01-P
