Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change Relating to the Composition of the Exchange's Modified Trading System Appointments Committee, 30156-30158 [E5-2602]
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30156
Federal Register / Vol. 70, No. 100 / Wednesday, May 25, 2005 / Notices
requirements. In order to evaluate the
proposed CT extensions, a probabilistic
risk assessment (PRA) evaluation was
performed in TR NEDC–33046,
submitted on May 3, 2002, as
supplemented by letter dated July 30,
2003, and as approved by the NRC by
letter and SE dated October 8, 2004. The
PRA evaluation concluded that, based
on the use of bounding risk parameters
for the General Electric (GE)-designed
plants, the proposed increase in the
PCIV CTs from 4 hours or 72 hours to
7 days does not alter the ability of the
plant to meet the overall primary
containment leakage requirements. It
also concluded that the proposed
changes do not result in an
unacceptable incremental conditional
core damage probability (ICCDP) or
incremental conditional large early
release probability (ICLERP) according
to the guidelines of Regulatory Guide
(RG) 1.177. As a result, there would be
no significant increase in the
consequences of an accident previously
evaluated. Therefore, the proposed
changes do not involve a significant
increase in the probability or
consequences of an accident previously
evaluated.
2. Does the change create the
possibility of a new or different kind of
accident from any accident previously
evaluated?
Response: No.
The proposed change does not create
the possibility of a new or different kind
of accident from any accident
previously evaluated. The proposed
changes revise the CTs for restoring an
inoperable PCIV (or isolating the
affected penetration) within the scope of
TR NEDC–33046 submitted on May 3,
2002, as supplemented by letter dated
July 30, 2003, and as approved by the
NRC by letter and Safety Evaluation
dated October 8, 2004, from 4 hours or
72 hours to 7 days. PCIVs, individually
and in combination, control the extent
of leakage from the primary
containment following an accident. The
proposed CT extensions apply to the
reduction in redundancy in the primary
containment isolation function by the
PCIVs for a limited period of time, but
do not alter the ability of the plant to
meet the overall primary containment
leakage requirements. The proposed
changes do not change the design,
configuration, or method of operation of
the plant. The proposed changes do not
involve a physical alteration of the plant
(no new or different type of equipment
will be installed). Therefore, the
proposed changes do not create the
possibility of a new or different kind of
accident from any previously evaluated.
VerDate jul<14>2003
17:52 May 24, 2005
Jkt 205001
3. Does the proposed change involve
a significant reduction in a margin of
safety?
Response: No.
The proposed change does not
involve a significant reduction in a
margin of safety. The proposed changes
revise the CTs for restoring an
inoperable PCIV (or isolating the
affected penetration) within the scope of
the TR NEDC–33046 submitted on May
3, 2002, as supplemented by letter dated
July 30, 2003, and as approved by the
NRC by letter and SE dated October 8,
2004, from 4 hours or 72 hours to 7
days. PCIVs, individually and in
combination, control the extent of
leakage from the primary containment
following an accident. The proposed CT
extensions apply to the reduction in
redundancy in the primary containment
isolation function provided by the
PCIVs for a limited period of time, but
do not alter the ability of the plant to
meet the overall primary containment
leakage requirements. In order to
evaluate the proposed CT extensions, a
PRA evaluation was performed in TR
NEDC–33046 submitted on May 3, 2002,
as supplemented by letter dated July 30,
2003, and as approved by the NRC by
letter and SE dated October 8, 2004. The
PRA evaluation concluded that, based
on the use of bounding risk parameters
for GE-designed plants, the proposed
increase in the PCIV CTs from 4 hours
or 72 hours to 7 days does not alter the
ability of the plant to meet the overall
primary containment leakage
requirements. It also concluded that the
proposed changes do not result in an
unacceptable ICCDP or ICLERP
according to the guidelines of RG 1.177.
Therefore, the proposed changes do not
involve a significant reduction in a
margin of safety.
Based on the above, the proposed
change involves no significant hazards
consideration under the standards set
forth in 10 CFR 50.92(c), and
accordingly, a finding of no significant
hazards consideration is justified.
Dated at Rockville, Maryland, this 19th day
of May, 2005.
For the Nuclear Regulatory Commission.
Herbert N. Berkow,
Director, Project Directorate IV, Division of
Licensing Project Management, Office of
Nuclear Reactor Regulation.
[FR Doc. E5–2631 Filed 5–24–05; 8:45 am]
BILLING CODE 7590–01–P
PO 00000
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51704; File No. SR–CBOE–
2005–29]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of a
Proposed Rule Change Relating to the
Composition of the Exchange’s
Modified Trading System
Appointments Committee
May 18, 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 April 19,
2005, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the Exchange. 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 is proposing to amend
CBOE Rule 8.82 relating to the
composition of the Exchange’s Modified
Trading System Appointments
Committee (‘‘MTS Committee’’ or
‘‘Committee’’). Below is the text of the
proposed rule change. Proposed new
language is in italics; proposed
deletions are in [brackets].
*
*
*
*
*
Chapter VIII
Market-Makers, Trading Crowds and
Modified Trading Systems
*
*
*
*
Sfmt 4703
*
*
*
*
Rule 8.82—MTS Committee
[(a)] The selection of MTS Committee
members and the determination of the
composition of the MTS Committee
shall be made in accordance with Rule
2.1. [consist of the Vice-Chairman of the
Exchange, the Chairman of the Market
Performance Committee, and nine
persons elected by the membership of
the Exchange.
(b) The nine elected MTS Committee
members shall include: three members
2 17
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*
Section C: Designated Primary Market
Makers
1 15
Frm 00101
*
E:\FR\FM\25MYN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 70, No. 100 / Wednesday, May 25, 2005 / Notices
whose primary business is as a MarketMaker; three members whose primary
business is as a Market-Maker or as a
DPM Designee; and three members
whose primary business is as a Floor
Broker, at least two of whom represent
public customer orders in the course of
their activities as a Floor Broker. One of
the nine elected positions on the MTS
Committee may instead be filled by a
person (i) who directly or indirectly
owns and controls a membership with
respect to which the person acts as a
lessor, (ii) whose primary business is
not as a Market-Maker, DPM Designee,
or Floor Broker, and (iii) whose primary
residence is located within 80 miles of
the Exchange’s trading floor. No elected
member of the MTS Committee may be
affiliated (as defined under Rule 1.1(j))
with any other elected member of the
MTS Committee. The nine elected MTS
Committee members shall have threeyear terms, three of which shall expire
each year.
(c) The election procedures for the
nine elected MTS Committee members
shall be the same as the election
procedures for elected Directors that are
set forth in Article IV and Article V of
the Exchange Constitution. Accordingly,
the following shall occur as part of these
procedures: The Nominating Committee
shall select nominees to fill expiring
terms and vacancies on the MTS
Committee. Nominations may also be
made by petition, signed by not less
than 100 voting members and filed with
the Secretary of the Exchange no later
than 5 p.m. (Chicago time) on the
Monday preceding the 1st Friday in
November, or the first business day
thereafter in the event that Monday
occurs on a holiday. The election to fill
the expiring terms and vacancies on the
MTS Committee shall be held as part of
the annual election. The term of office
of each MTS Committee member elected
at an annual election meeting shall
commence at the time of the first regular
Board of Directors meeting of the
calendar year following that annual
election meeting and shall continue
until the first regular Board meeting of
the third succeeding calendar year.
Elected MTS Committee members shall
hold office for the terms for which they
are elected and until their successors are
duly elected and qualified or until their
earlier death, resignation, or removal.
(d) Candidates for election to the MTS
Committee, whether nominated by the
Nominating Committee or by petition,
shall be eligible for election in any of
the categories for which they qualify
both at the time of their nomination and
at the time of their election. The sole
judge of whether a candidate satisfies
the applicable qualifications for election
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17:52 May 24, 2005
Jkt 205001
to the MTS Committee in a designated
category shall be the Nominating
Committee in the case of candidates
nominated by the Nominating
Committee, and shall be the Executive
Committee in the case of candidates
nominated by petition, and the decision
of the respective committee shall be
final. In the event a person’s status
changes following election to the MTS
Committee, the sole judge of whether
the person continues to satisfy the
applicable qualifications for service on
the MTS Committee shall be the Board
of Directors.
(e) In the event of the refusal, failure,
neglect, or inability of any MTS
Committee member to discharge that
person’s duties, or for any cause
affecting the best interests of the
Exchange, the sufficiency of which the
Board of Directors shall be the sole
judge, the Board shall have the power,
by the affirmative vote of at least twothirds of the Directors then in office, to
remove that MTS Committee member
from the Committee.
(f) Any vacancy occurring among the
members of the MTS Committee may be
filled by a qualified person appointed
by the Vice Chairman of the Board with
the approval of the Board of Directors.
The term of any MTS Committee
member so chosen shall be from the
date of appointment until the first
regular Board meeting of the calendar
year following the next annual election
meeting and until the person’s successor
is duly elected and qualified, or until
the person’s earlier death, resignation,
or removal. The remaining portion of
the unexpired term of an MTS
Committee member, if any, shall be
served by a person elected at the next
annual election meeting.]
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange 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 those
statements may be examined at the
places specified 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.
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
30157
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to revise the
manner in which the members of the
Exchange’s MTS Committee 3 are
chosen, as governed by existing CBOE
Rule 8.82. Currently, members of the
MTS Committee are elected to serve on
the Committee by the Exchange’s
membership at the Exchange’s annual
election.4 Committee candidates are
nominated by the Exchange’s
Nominating Committee (or by petition).5
The Committee’s composition, terms of
the Committee’s members, procedures
for filling vacancies on the Committee
and other matters relating to the
Committee’s structure also are
specifically provided for in CBOE Rule
8.82.
The Exchange asserts that in the
interest of efficiency and uniformity, the
Exchange now proposes to amend CBOE
Rule 8.82 to provide that the members
of the MTS Committee should be
appointed in a manner consistent with
other Exchange committees,
specifically, in accordance with CBOE
Rule 2.1 (Committees of the Exchange).
CBOE Rule 2.1 provides, in part, that
the Vice Chairman of the Board of
Directors (‘‘Vice Chairman’’), with the
approval of the Board of Directors, shall
appoint the chairmen and members of
certain committees provided for in
CBOE Rule 2.1, or any other committee
established in accordance with the
Exchange’s Constitution, to serve for
terms expiring at the first regular
meeting of the Board of Directors in
each calendar year. CBOE Rule 2.1 also
provides that the Vice Chairman has the
authority to remove any member of such
committees and to fill any vacancies for
the remainder of the pertinent
committee term. This rule change
proposes to have the appointment of
MTS Committee members covered
under the provisions of CBOE Rule 2.1.
Additionally, other than the MTS
Committee, the Nominating Committee
and the Board-level committees, the
Exchange’s rules do not define the
composition of the Exchange’s
3 Generally, under CBOE rules, the MTS
Committee is assigned the authority to make
determinations concerning whether to grant or
withdraw the approval to act as a designated
primary market maker (‘‘DPM’’ ), among other
things. See, specifically, CBOE Rule 8.80 and,
generally, CBOE Rules 8.80 through 8.94, which
provide the scope of the MTS Committee’s
authority over DPMs.
4 See Articles IV and V (Conduct of Annual
Election) of the Exchange’s Constitution.
5 See CBOE Rule 8.82.
E:\FR\FM\25MYN1.SGM
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Federal Register / Vol. 70, No. 100 / Wednesday, May 25, 2005 / Notices
committees. Consistent with that
approach, CBOE Rule 8.82 would no
longer mandate a particular composition
for the MTS Committee and, instead,
would provide that the MTS
Committee’s composition shall also be
determined in accordance with CBOE
Rule 2.1.
2. Statutory Basis
The Exchange believes that this
proposed rule change is consistent with
Section 6(b) of the Act,6 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,7 in particular, in that the
proposal should promote just and
equitable principles of trade, serve to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and
protect investors and the public interest.
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 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 Exchange neither solicited nor
received written comments on 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 findings or
(ii) as to which the Exchange consents,
the Commission will:
(a) By order approve such 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:
6 15
7 15
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–2005–29 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–2005–29. 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–
2005–29 and should be submitted on or
before June 15, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–2602 Filed 5–24–05; 8:45 am]
BILLING CODE 8010–01–P
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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17:52 May 24, 2005
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CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51705; File No. SR–CBOE–
2005–35]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Inc.; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change and Amendment Nos. 1 and 2
Thereto Eliminating the Remote
Market-Maker Inactivity Fee
May 18, 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 April 26,
2005, the Chicago Board Options
Exchange, Inc. (‘‘CBOE’’ or ‘‘Exchange’’)
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 by the CBOE. On
May 11, 2005, the CBOE submitted
Amendment No. 1 to the proposed rule
change.3 On May 17, 2005, the CBOE
submitted Amendment No. 2 to the
proposed rule change.4 The CBOE has
designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by the CBOE
under Section 19(b)(3)(A)(ii) of the Act,5
and Rule 19b–4(f)(2) thereunder,6 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to eliminate
the Remote Market-Maker (‘‘RMM’’)
inactivity fee. Below is the text of the
proposed rule change, as amended.
Proposed new language is italicized;
proposed deletions are in [brackets].
Chicago Board Options Exchange, Inc.
Fees Schedule
[Aril 20, 2005] May 13, 2005
1. Options Transaction Fees
(1)(3)(4)(7): Per Contract
Equity Options (13):
I.–VIII. Unchanged.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 In Amendment No. 1, the Exchange clarified the
description of the purpose of the inactivity fee and
amended the proposal’s rule text to indicate the
date of its Fees Schedule.
4 In Amendment No. 2, the Exchange made
technical corrections to the proposal’s rule text and
further revised the date of its Fees Schedule.
5 15 U.S.C. 78s(b)(3)(A)(ii).
6 17 CFR 240.19b–4(f)(2).
2 17
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]]>Agencies
[Federal Register Volume 70, Number 100 (Wednesday, May 25, 2005)]
[Notices]
[Pages 30156-30158]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-2602]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51704; File No. SR-CBOE-2005-29]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of a Proposed Rule Change Relating to
the Composition of the Exchange's Modified Trading System Appointments
Committee
May 18, 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 April 19, 2005, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II and III below, which Items have been prepared by the
Exchange. 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 is proposing to amend CBOE Rule 8.82 relating to the
composition of the Exchange's Modified Trading System Appointments
Committee (``MTS Committee'' or ``Committee''). Below is the text of
the proposed rule change. Proposed new language is in italics; proposed
deletions are in [brackets].
* * * * *
Chapter VIII
Market-Makers, Trading Crowds and Modified Trading Systems
* * * * *
Section C: Designated Primary Market Makers
* * * * *
Rule 8.82--MTS Committee
[(a)] The selection of MTS Committee members and the determination
of the composition of the MTS Committee shall be made in accordance
with Rule 2.1. [consist of the Vice-Chairman of the Exchange, the
Chairman of the Market Performance Committee, and nine persons elected
by the membership of the Exchange.
(b) The nine elected MTS Committee members shall include: three
members
[[Page 30157]]
whose primary business is as a Market-Maker; three members whose
primary business is as a Market-Maker or as a DPM Designee; and three
members whose primary business is as a Floor Broker, at least two of
whom represent public customer orders in the course of their activities
as a Floor Broker. One of the nine elected positions on the MTS
Committee may instead be filled by a person (i) who directly or
indirectly owns and controls a membership with respect to which the
person acts as a lessor, (ii) whose primary business is not as a
Market-Maker, DPM Designee, or Floor Broker, and (iii) whose primary
residence is located within 80 miles of the Exchange's trading floor.
No elected member of the MTS Committee may be affiliated (as defined
under Rule 1.1(j)) with any other elected member of the MTS Committee.
The nine elected MTS Committee members shall have three-year terms,
three of which shall expire each year.
(c) The election procedures for the nine elected MTS Committee
members shall be the same as the election procedures for elected
Directors that are set forth in Article IV and Article V of the
Exchange Constitution. Accordingly, the following shall occur as part
of these procedures: The Nominating Committee shall select nominees to
fill expiring terms and vacancies on the MTS Committee. Nominations may
also be made by petition, signed by not less than 100 voting members
and filed with the Secretary of the Exchange no later than 5 p.m.
(Chicago time) on the Monday preceding the 1st Friday in November, or
the first business day thereafter in the event that Monday occurs on a
holiday. The election to fill the expiring terms and vacancies on the
MTS Committee shall be held as part of the annual election. The term of
office of each MTS Committee member elected at an annual election
meeting shall commence at the time of the first regular Board of
Directors meeting of the calendar year following that annual election
meeting and shall continue until the first regular Board meeting of the
third succeeding calendar year. Elected MTS Committee members shall
hold office for the terms for which they are elected and until their
successors are duly elected and qualified or until their earlier death,
resignation, or removal.
(d) Candidates for election to the MTS Committee, whether nominated
by the Nominating Committee or by petition, shall be eligible for
election in any of the categories for which they qualify both at the
time of their nomination and at the time of their election. The sole
judge of whether a candidate satisfies the applicable qualifications
for election to the MTS Committee in a designated category shall be the
Nominating Committee in the case of candidates nominated by the
Nominating Committee, and shall be the Executive Committee in the case
of candidates nominated by petition, and the decision of the respective
committee shall be final. In the event a person's status changes
following election to the MTS Committee, the sole judge of whether the
person continues to satisfy the applicable qualifications for service
on the MTS Committee shall be the Board of Directors.
(e) In the event of the refusal, failure, neglect, or inability of
any MTS Committee member to discharge that person's duties, or for any
cause affecting the best interests of the Exchange, the sufficiency of
which the Board of Directors shall be the sole judge, the Board shall
have the power, by the affirmative vote of at least two-thirds of the
Directors then in office, to remove that MTS Committee member from the
Committee.
(f) Any vacancy occurring among the members of the MTS Committee
may be filled by a qualified person appointed by the Vice Chairman of
the Board with the approval of the Board of Directors. The term of any
MTS Committee member so chosen shall be from the date of appointment
until the first regular Board meeting of the calendar year following
the next annual election meeting and until the person's successor is
duly elected and qualified, or until the person's earlier death,
resignation, or removal. The remaining portion of the unexpired term of
an MTS Committee member, if any, shall be served by a person elected at
the next annual election meeting.]
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange 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 those statements may be examined at the places specified 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to revise the manner in which the members of
the Exchange's MTS Committee \3\ are chosen, as governed by existing
CBOE Rule 8.82. Currently, members of the MTS Committee are elected to
serve on the Committee by the Exchange's membership at the Exchange's
annual election.\4\ Committee candidates are nominated by the
Exchange's Nominating Committee (or by petition).\5\ The Committee's
composition, terms of the Committee's members, procedures for filling
vacancies on the Committee and other matters relating to the
Committee's structure also are specifically provided for in CBOE Rule
8.82.
---------------------------------------------------------------------------
\3\ Generally, under CBOE rules, the MTS Committee is assigned
the authority to make determinations concerning whether to grant or
withdraw the approval to act as a designated primary market maker
(``DPM'' ), among other things. See, specifically, CBOE Rule 8.80
and, generally, CBOE Rules 8.80 through 8.94, which provide the
scope of the MTS Committee's authority over DPMs.
\4\ See Articles IV and V (Conduct of Annual Election) of the
Exchange's Constitution.
\5\ See CBOE Rule 8.82.
---------------------------------------------------------------------------
The Exchange asserts that in the interest of efficiency and
uniformity, the Exchange now proposes to amend CBOE Rule 8.82 to
provide that the members of the MTS Committee should be appointed in a
manner consistent with other Exchange committees, specifically, in
accordance with CBOE Rule 2.1 (Committees of the Exchange). CBOE Rule
2.1 provides, in part, that the Vice Chairman of the Board of Directors
(``Vice Chairman''), with the approval of the Board of Directors, shall
appoint the chairmen and members of certain committees provided for in
CBOE Rule 2.1, or any other committee established in accordance with
the Exchange's Constitution, to serve for terms expiring at the first
regular meeting of the Board of Directors in each calendar year. CBOE
Rule 2.1 also provides that the Vice Chairman has the authority to
remove any member of such committees and to fill any vacancies for the
remainder of the pertinent committee term. This rule change proposes to
have the appointment of MTS Committee members covered under the
provisions of CBOE Rule 2.1.
Additionally, other than the MTS Committee, the Nominating
Committee and the Board-level committees, the Exchange's rules do not
define the composition of the Exchange's
[[Page 30158]]
committees. Consistent with that approach, CBOE Rule 8.82 would no
longer mandate a particular composition for the MTS Committee and,
instead, would provide that the MTS Committee's composition shall also
be determined in accordance with CBOE Rule 2.1.
2. Statutory Basis
The Exchange believes that this proposed rule change is consistent
with Section 6(b) of the Act,\6\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\7\ in particular, in that the
proposal should promote just and equitable principles of trade, serve
to remove impediments to and perfect the mechanism of a free and open
market and a national market system, and protect investors and the
public interest.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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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 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 Exchange neither solicited nor received written comments on 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 findings or (ii) as to
which the Exchange consents, the Commission will:
(a) By order approve such 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-2005-29 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-2005-29. 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-2005-29
and should be submitted on or before June 15, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-2602 Filed 5-24-05; 8:45 am]
BILLING CODE 8010-01-P
