Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Increased Class Quoting Limits in AAPL, GOOG, MNX, QQQQ, 30164-30165 [E5-2636]
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30164
Federal Register / Vol. 70, No. 100 / Wednesday, May 25, 2005 / Notices
agreement, the Back-up Exchange will
apply the per contract and per contract
side fees normally applicable to
exclusively listed options under the
Disabled Exchange’s fee schedule, the
Commission believes that the proposed
rule change appears to be reasonably
designed to minimize the disruption
associated with back-up trading of such
options. The proposal also clarifies that,
with regard to singly listed and multiply
listed options, the fees charged shall be
those set forth in the Back-up Exchange
fee schedule where trading occurs at a
Back-up Exchange, or, where trading
occurs at CBOE, the CBOE fee schedule.
The Commission finds good cause,
consistent with Sections 6(b)(5) and
19(b) of the Act,18 to approve the
proposal prior to the thirtieth day after
the date of publication of notice of filing
thereof in the Federal Register.
Amendment No. 4 simply corrects a
reference to ‘‘Back-up Exchange’’ in
Section (d)(2) of CBOE Rule 6.16.
Likewise, Amendment No. 5 changes
the number of the footnote CBOE
proposes to add to its Fee Schedule
from 17 to 16 to avoid a gap in the
numbering of the notes. Because
Amendment Nos. 4 and 5 propose
minor corrections to the rule text that
are consistent with the clear intent of
the proposal, the Commission finds that
it is appropriate to approve Amendment
Nos. 4 and 5 on an accelerated basis.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning Amendment Nos.
4 and 5, including whether each of these
amendments 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–2004–59 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–2004–59. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such
filing also will be available for
inspection and copying at the principal
office of the CBOE. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CBOE–
2004–59 and should be submitted on or
before June 15, 2005.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,19 that the
proposed rule change (SR–CBOE–2004–
59), as amended by Amendment Nos. 1,
2 and 3, is hereby approved, and that
Amendment Nos. 4 and 5 to the
proposed rule change are approved on
an accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.20
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–2634 Filed 5–24–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
17:52 May 24, 2005
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Increased
Class Quoting Limits in AAPL, GOOG,
MNX, QQQQ
1. Purpose
The Commission approved the
Exchange’s Remote Market-Maker
(‘‘RMM’’) program (‘‘Program’’) on
March 14, 2005.5 CBOE Rule 8.3A,
Maximum Number of Market
Participants Quoting Electronically per
May 19, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
20 17
Jkt 205001
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 these
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.
[Release No. 34–51720; File No. SR–CBOE–
2005–33]
U.S.C. 78f(b)(5) and 78s(b).
VerDate jul<14>2003
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The CBOE proposes to increase the
class quoting limits in a select number
of active options classes. The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.com), the Office of the
Secretary, CBOE and at the Commission.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
19 15
18 15
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 21,
2005, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’ or ‘‘SEC’’) the proposed
rule change as described in Items I, II
and III below, which Items have been
prepared by the CBOE. The CBOE has
designated this proposal as one
constituting a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule under
Section 19(b)(3)(A)(i) of the Act,3 and
Rule 19b–4(f)(1) thereunder,4 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 persons.
PO 00000
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
Frm 00109
Fmt 4703
Sfmt 4703
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(i).
4 17 CFR 240.19b–4(f)(1).
5 See Securities Exchange Act Release No. 51366
(March 14, 2005), 70 FR 13217 (March 18, 2005).
2 17
E:\FR\FM\25MYN1.SGM
25MYN1
Federal Register / Vol. 70, No. 100 / Wednesday, May 25, 2005 / Notices
Product, establishes class quoting limits
(‘‘CQLs’’) for each class traded on the
Hybrid Trading System.6 A CQL is the
maximum number of quoters that may
quote electronically in a given product
and the current levels are established
from 25–40, depending on the trading
activity of the particular product.
CBOE Rule 8.3A.01(c) provides a
procedure by which the President of the
Exchange may increase the CQL for a
particular product. In this regard, the
President of the Exchange may increase
the CQL in exceptional circumstances,
which are defined in the rule as ‘‘* * *
substantial trading volume, whether
actual or expected.’’7 The effect of an
increase in the CQL is procompetitive in
that it increases the number of market
participants that may quote
electronically in a product. The purpose
of this filing is to increase the CQLs for
four products trading on the Exchange:
Apple Computer (AAPL), options on the
Nasdaq-100 Index Tracking Stock
(QQQQ), options on the mini-Nasdaq
100 index (MNX), and Google (GOOG).
Specifically, the Exchange proposes to
increase the CQLs in these products by
the following amounts: AAPL CQL
increased by 4; MNX CQL increased by
4; QQQQ CQL increased by 2; and
GOOG CQL increased by 3.
Each of these products routinely is
among the most actively-traded on the
Exchange for both index and equity
products and, therefore, there is
substantial trading volume in each of
these products. Increasing the CQLs in
each of these products will enable the
Exchange to enhance the liquidity
offered, thereby offering deeper and
more liquid markets. Each of these
products has a ‘‘waiting list’’ of market
participants waiting to quote and, per
CBOE Rule 8.3A’s requirements, quoting
spots will be offered on a time priority
basis, starting with the first person on
each list. The Exchange represents that
it will comply with all of the
requirements of CBOE Rule 8.3A in
increasing the CQLs in these products
and, if it determines subsequently to
reduce such CQLs, in reducing the CQLs
in these products.8 Changes to the CQLs
6 See
CBOE Rule 8.3A.01.
actions taken by the President of the
Exchange pursuant to this paragraph will be
submitted to the SEC in a rule filing pursuant to
Section 19(b)(3)(A) of the Exchange Act.’’ CBOE
Rule 8.3A.01(c).
8 The Exchange has represented that it will follow
the procedures outlined in CBOE Rule 8.3A.01(a)
for assigning new CQLs, based on revised trading
volume statistics, at the end of the calendar quarter
and that if the new CQLs are lower than the
increased CQLs assigned as a result of this proposed
rule change, the procedures outlined in CBOE Rule
8.3A.01(a) will be followed. Telephone
conversation of May 18, 2005, between Patrick
7 ‘‘Any
VerDate jul<14>2003
17:52 May 24, 2005
Jkt 205001
will be announced to the membership
via Information Circular.
2. Statutory Basis
The CBOE believes that 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.9
Specifically, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 10 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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The CBOE does not believe that the
proposed rule change will impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
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
The foregoing proposed rule change
will take effect upon filing with the
Commission pursuant to Section
19(b)(3)(A)(i) of the Act11 and Rule 19b–
4(f)(1) thereunder,12 because it
constitutes a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule.
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
Sexton, Assistant General Counsel, CBOE and
David Michehl, Attorney, Division of Market
Regulation, Commission.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
11 15 U.S.C. 78s(b)(3)(A)(i).
12 17 CFR 240.19b–4(f)(1).
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
30165
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–2005–33 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–2005–33. 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
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of the CBOE. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–CBOE–2005–33 and should
be submitted on or before June 15, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–2636 Filed 5–24–05; 8:45 am]
BILLING CODE 8010–01–P
13 17
E:\FR\FM\25MYN1.SGM
CFR 200.30–3(a)(12).
25MYN1
]]>Agencies
[Federal Register Volume 70, Number 100 (Wednesday, May 25, 2005)]
[Notices]
[Pages 30164-30165]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-2636]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51720; File No. SR-CBOE-2005-33]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Increased Class Quoting Limits in AAPL, GOOG,
MNX, QQQQ
May 19, 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 21, 2005, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'' or ``SEC'') the proposed rule change as
described in Items I, II and III below, which Items have been prepared
by the CBOE. The CBOE has designated this proposal as one constituting
a stated policy, practice, or interpretation with respect to the
meaning, administration, or enforcement of an existing rule under
Section 19(b)(3)(A)(i) of the Act,\3\ and Rule 19b-4(f)(1)
thereunder,\4\ 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 persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(i).
\4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CBOE proposes to increase the class quoting limits in a select
number of active options classes. The text of the proposed rule change
is available on the Exchange's Web site (https://www.cboe.com), the
Office of the Secretary, CBOE and at the Commission.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, 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 these 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Commission approved the Exchange's Remote Market-Maker
(``RMM'') program (``Program'') on March 14, 2005.\5\ CBOE Rule 8.3A,
Maximum Number of Market Participants Quoting Electronically per
[[Page 30165]]
Product, establishes class quoting limits (``CQLs'') for each class
traded on the Hybrid Trading System.\6\ A CQL is the maximum number of
quoters that may quote electronically in a given product and the
current levels are established from 25-40, depending on the trading
activity of the particular product.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 51366 (March 14,
2005), 70 FR 13217 (March 18, 2005).
\6\ See CBOE Rule 8.3A.01.
---------------------------------------------------------------------------
CBOE Rule 8.3A.01(c) provides a procedure by which the President of
the Exchange may increase the CQL for a particular product. In this
regard, the President of the Exchange may increase the CQL in
exceptional circumstances, which are defined in the rule as ``* * *
substantial trading volume, whether actual or expected.''\7\ The effect
of an increase in the CQL is procompetitive in that it increases the
number of market participants that may quote electronically in a
product. The purpose of this filing is to increase the CQLs for four
products trading on the Exchange: Apple Computer (AAPL), options on the
Nasdaq-100 Index Tracking Stock (QQQQ), options on the mini-Nasdaq 100
index (MNX), and Google (GOOG). Specifically, the Exchange proposes to
increase the CQLs in these products by the following amounts: AAPL CQL
increased by 4; MNX CQL increased by 4; QQQQ CQL increased by 2; and
GOOG CQL increased by 3.
---------------------------------------------------------------------------
\7\ ``Any actions taken by the President of the Exchange
pursuant to this paragraph will be submitted to the SEC in a rule
filing pursuant to Section 19(b)(3)(A) of the Exchange Act.'' CBOE
Rule 8.3A.01(c).
---------------------------------------------------------------------------
Each of these products routinely is among the most actively-traded
on the Exchange for both index and equity products and, therefore,
there is substantial trading volume in each of these products.
Increasing the CQLs in each of these products will enable the Exchange
to enhance the liquidity offered, thereby offering deeper and more
liquid markets. Each of these products has a ``waiting list'' of market
participants waiting to quote and, per CBOE Rule 8.3A's requirements,
quoting spots will be offered on a time priority basis, starting with
the first person on each list. The Exchange represents that it will
comply with all of the requirements of CBOE Rule 8.3A in increasing the
CQLs in these products and, if it determines subsequently to reduce
such CQLs, in reducing the CQLs in these products.\8\ Changes to the
CQLs will be announced to the membership via Information Circular.
---------------------------------------------------------------------------
\8\ The Exchange has represented that it will follow the
procedures outlined in CBOE Rule 8.3A.01(a) for assigning new CQLs,
based on revised trading volume statistics, at the end of the
calendar quarter and that if the new CQLs are lower than the
increased CQLs assigned as a result of this proposed rule change,
the procedures outlined in CBOE Rule 8.3A.01(a) will be followed.
Telephone conversation of May 18, 2005, between Patrick Sexton,
Assistant General Counsel, CBOE and David Michehl, Attorney,
Division of Market Regulation, Commission.
---------------------------------------------------------------------------
2. Statutory Basis
The CBOE believes that 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.\9\ Specifically, the Exchange believes the
proposed rule change is consistent with the Section 6(b)(5) \10\
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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The CBOE does not believe that the proposed rule change will impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
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
The foregoing proposed rule change will take effect upon filing
with the Commission pursuant to Section 19(b)(3)(A)(i) of the Act\11\
and Rule 19b-4(f)(1) thereunder,\12\ because it constitutes a stated
policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A)(i).
\12\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
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 rule-comments@sec.gov. Please include
File Number SR-CBOE-2005-33 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-2005-33. 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 Room. Copies of such
filing also will be available for inspection and copying at the
principal office of the CBOE. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-CBOE-2005-33 and should be submitted on or before June
15, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-2636 Filed 5-24-05; 8:45 am]
BILLING CODE 8010-01-P
