Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change and Amendment No. 1 Thereto Relating to the Hybrid Opening System, 39537-39539 [E5-3594]
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39537
Federal Register / Vol. 70, No. 130 / Friday, July 8, 2005 / Notices
the employee’s railroad service had
been covered by that Act.
The RRB currently obtains the
required information by the use of forms
G–319 (Statement Regarding Family and
Earnings for Special Guaranty
Computation) and G–320 (Statement by
Employee Annuitant Regarding Student
Age 18–19). One form is completed by
each respondent.
The RRB proposes significant burden
impacting changes to Form G–319 and
Form G–320. The major changes
proposed are primarily to gather
information needed due to the Railroad
Retirement and Survivors Improvement
Act which created a new category of
employees whose families might qualify
for the Special Guaranty Computation if
the employee has less than 120 months
of railroad service, but at least 60
months of railroad service after 1995,
and to expand the use of Form G–320
to include student attendance
monitoring. Proposed Form G–319 will
be renamed, ‘‘Statement Regarding
Family and Earnings for the Special
Guaranty Computation’’. Proposed Form
G–320 will be renamed ‘‘Student
Questionnaire for the Special Guaranty
Computation’’. Transmittal letters
containing completion instructions have
been developed for both of the proposed
forms.
The estimated annual respondent
burden is as follows:
Annual
responses
Form #(s)
G–319 Employee completed:
With assistance ....................................................................................................................
Without assistance ...............................................................................................................
G–319 Spouse completed:
With assistance ....................................................................................................................
Without assistance ...............................................................................................................
G–320:
Age 18 at Special Guaranty .................................................................................................
Begin Date or Special Guaranty.
Age 18 Attainments.
G–320:
Student Monitoring done in Sept., March, and at end of school year .................................
Charles Mierzwa,
Clearance Officer.
[FR Doc. 05–13445 Filed 7–7–05; 8:45 am]
BILLING CODE 7905–01–P
SECURITIES AND EXCHANGE
COMMISSION
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 16,
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 CBOE. The CBOE
submitted Amendment No. 1 on June
24, 2005.3 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 amend its
rules relating to the Hybrid Opening
System (‘‘HOSS’’) procedures. The text
of the proposed rule change is set forth
below. Additions are in italics.
Deletions are in brackets.
[Release No. 34–51938; File No. SR–CBOE–
2005–40]
CHAPTER VI
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of a
Proposed Rule Change and
Amendment No. 1 Thereto Relating to
the Hybrid Opening System
Rule 6.2B. Hybrid Opening System
(‘‘HOSS’’)
Rule 6.2B. (a) No change.
(b) After the Opening Notice is sent,
the System will calculate and provide
1 15
June 29, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
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Doing Business on the Exchange Floor
Jkt 205001
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Amendment No. 1 revised the rule text to reflect
language recently approved in another filing.
PO 00000
2 17
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Burden (hrs)
100
5
26
55
43
5
100
5
30
60
50
5
95
15
24
170
15
42
475
Total ...............................................................................................................................
Additional Information or Comments:
To request more information or to
obtain a copy of the information
collection justifications, forms, and/or
supporting material, please call the RRB
Clearance Officer at (312) 751–3363 or
send an e-mail request to
Charles.Mierzwa@RRB.GOV. Comments
regarding the information collection
should be addressed to Ronald J.
Hodapp, Railroad Retirement Board, 844
N. Rush Street, Chicago, Illinois 60611–
2092 or send an e-mail to
Ronald.Hodapp@RRB.GOV. Comments
should be received within 60 days of
this notice.
Time (min)
........................
169
the Expected Opening Price (‘‘EOP’’)
and expected opening size (‘‘EOS’’)
given the current resting orders during
the EOP Period (‘‘EOP Period’’). The
appropriate FPC will establish the
duration of the EOP Period on a class
basis at between five and sixty seconds.
The EOP, which will be calculated and
disseminated to market participants
every few seconds, is the price at which
the greatest number of orders in the
Book are expected to trade. After the
Opening Notice is sent, quotes and
orders may be submitted without
restriction. An EOP may only be
calculated if: (i) there are market orders
in the Book, or the Book is crossed
(highest bid is higher than the lowest
offer) or locked (highest bid equals
lowest offer), and (ii) at least one øthe
DPM’s¿ quote ø(or if there is no DPM
appointed to the class, at least one quote
from either a Market Maker or LMM
with an appointment in the class)¿ is
present and complies with the legal
width quote requirements of Rule
8.7(b)(iv).
(c)–(d) No Change.
(e) The System will not open a series
if one of the following conditions is met:
(i) øIn classes in which a DPM has
been appointed, there¿ There is no
quote present in the series that complies
with the legal width quote requirements
of Rule 8.7(b)(iv) øfrom the DPM for the
series. In classes in which no DPM has
been appointed, there is no quote from
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39538
Federal Register / Vol. 70, No. 130 / Friday, July 8, 2005 / Notices
at least one market-maker or LMM with
an appointment in the class¿;
(ii) The opening price is not within an
acceptable range (as determined by the
appropriate FPC and announced to the
membership via Regulatory Circular)
compared to the øhighest¿ lowest quote
offer and the [ølowest¿ highest quote
bid ø(e.g., the upper boundary of the
acceptable range may be 125% of the
highest quote offer and the lower
boundary may be 75% of the lowest
quote bid)¿; or
(iii) No Change.
(f)–(i) No Change.
*
*
*
*
*
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. The 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing to amend
its rules relating to HOSS procedures.
HOSS is the Exchange’s automated
system for initiating trading at the
beginning of each trading day. For each
class of options contracts approved for
trading, the appointed designated
primary market maker (‘‘DPM’’)
conducts an opening rotation, which
must be held promptly following the
opening of the underlying security in
the primary market. For purposes of
HOSS, an underlying security shall be
deemed to have opened in the primary
market if such market has (i) reported a
transaction in the underlying security,
or (ii) disseminated opening quotations
for the underlying security and not
given an indication of a delayed
opening, whichever occurs first.
Currently, CBOE rules do not allow a
Hybrid option series to be opened
unless the DPM for that option class has
submitted a quote that complies with
the legal quote width requirements of
CBOE Rule 8.7(b)(v),4 regardless of
whether other market participants have
4 See
CBOE Rules 6.2B(b) and (e).
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timely submitted legal opening quotes.5
In an effort to better ensure that all
options series are promptly opened on
CBOE, the Exchange is proposing to
allow HOSS to open an option series as
long as any market participant,6 not just
the DPM, has submitted an opening
quote that complies with the legal width
quote requirements. It should be noted
that, under the proposal, even though
HOSS can open a series without a
DPM’s quote, DPMs, as well as
electronic DPMs (‘‘e-DPMs’’), remain
obligated under CBOE rules to timely
submit opening quotes.7
Finally, this rule change proposes to
clarify one of the conditions necessary
for opening a series. Current CBOE Rule
6.2B(e)(ii) provides that, in order for the
Hybrid System to open a series, the
opening price must be within an
acceptable range (as determined from
time to time by the appropriate
Exchange floor procedure committee)
compared with the highest quote offer
and the lowest quote bid. The Exchange
proposes to change the method for
determining the acceptable range to use
the highest bid and the lowest offer,
which could provide for an even tighter
opening price range. In addition, the
example provided in the same rule
would be eliminated.
2. Statutory Basis
By allowing more participants’ quotes
to be included in the opening process,
the Exchange is increasing the
likelihood that any particular option
series will open, and, as such, the
Exchange believes this proposed rule
change, as amended, is consistent with
Section 6(b) of the Act 8 in general, and
further the objectives of Section 6(b)(5)
in particular,9 in that it 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.
5 Other factors must also be satisfied. The opening
price for the series must be within an acceptable
range and the opening trade cannot create a market
order imbalance. See CBOE Rule 6.2B(e)(ii) and
(iii).
6 This includes a quote from a DPM, e-DPM,
market maker, or a remote market maker. See CBOE
Rule 6.45A.
7 See Securities Exchange Act Release No. 51670
(May 9, 2005), 70 FR 28338 (May 18, 2005) (order
approving SR–CBOE–2005–027, which requires eDPMs to submit opening quotes in 100% of the
series in all of their respective allocated option
classes).
8 15 U.S.C. 78f(b)(5).
9 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
This proposed rule change, as
amended, does not 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
No written comments were solicited
or received 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 CBOE 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, as amended, 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–2005–40 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission/
Station Place, 100 F Street, NE.,
Washington, DC 20549–9303.
All submissions should refer to File
Number SR–CBOE–2005–40. 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
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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. 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–2005–40 and should
be submitted by July 29, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–3594 Filed 7–7–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51944; File No. SR–CHX–
2005–19
Self Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change to Extend
the Pilot Rule Interpretation Relating to
Trading of Nasdaq National Market
Securities in Subpenny Increments
June 30, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 27,
2005, the Chicago Stock Exchange,
Incorporated (‘‘CHX’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the CHX. The
Exchange has filed this proposal
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) thereunder,4
which renders the proposal effective
upon filing with the Commission. The
10 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 5 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
VerDate jul<14>2003
16:32 Jul 07, 2005
Jkt 205001
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 CHX has proposed to extend,
until the effective date of new Rule 612
of Regulation NMS,5 a pilot rule
interpretation (Article XXX, Rule 2,
Interpretation and Policy .06 ‘‘Trading
in Nasdaq/NM Securities in Subpenny
Increments’’) which requires a CHX
specialist (including a market maker
who holds customer limit orders) to
better the price of a customer limit order
in his book which is priced at the
national best bid or offer (‘‘NBBO’’) by
at least one penny if the specialist
determines to trade with an incoming
market or marketable limit order. The
pilot, which was approved in
conjunction with exemptive relief
granted by the Commission to allow for
trading in Nasdaq National Market
securities in subpenny increments,
expires on June 30, 2005. The Exchange
proposes that the pilot remain in effect
until the effective date of Rule 612.
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
CHX included statements concerning
the purpose of and basis for the
proposed rule changes and discussed
any comments it received regarding the
proposal. The text of these statements
may be examined at the places specified
in Item III below. The CHX 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
Changes
1. Purpose
On April 6, 2001, the Commission
approved, on a pilot basis through July
9, 2001, a pilot rule interpretation
(Article XXX, Rule 2, Interpretation and
Policy .06 ‘‘Trading in Nasdaq/NM
Securities in Subpenny Increments’’) 6
that requires a CHX specialist (including
a market maker who holds customer
limit orders) to better the price of a
customer limit order in his book which
5 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496 (June 29, 2005) (‘‘Reg.
NMS Release’’). Rule 612 will become effective on
August 29, 2005.
6 See Securities Exchange Act Release No. 44164
(April 6, 2001), 66 FR 19263 (April 13, 2001) (SR–
CHX–2001–07).
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39539
is priced at the NBBO by at least one
penny if the specialist determines to
trade with an incoming market or
marketable limit order. The pilot, which
was approved in conjunction with
exemptive relief granted by the
Commission to allow for trading in
Nasdaq National Market securities in
subpenny increments, has been
extended many times and now is set to
expire on June 30, 2005.7 The Exchange
is not proposing any substantive (or
typographical) change to the pilot;
rather, the Exchange proposes that the
pilot be immediately reinstated and
remain in effect through the effective
date of Rule 612 of Regulation NMS.8
2. Statutory Basis
The CHX believes the proposal is
consistent with the requirements of the
Act and the rules and regulations
thereunder that are applicable to a
national securities exchange and, in
particular, with the requirements of
Section 6(b).9 The CHX believes the
proposal is consistent with Section
6(b)(5) of the Act 10 in that it is designed
to promote just and equitable principles
of trade, to remove impediments, and to
perfect the mechanism of, a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.11
B. Self-Regulatory Organization’s
Statement of Burden on Competition
The Exchange does not believe that
the proposed rule changes will impose
any burden on competition.
7 See Securities Exchange Act Release Nos. 44535
(July 10, 2001), 66 FR 37251 (July 17, 2001)
(extending pilot through November 5, 2001); 45062
(November 15, 2001), 66 FR 58768 (November 23,
2001) (extending pilot through January 14, 2002);
45386 (February 1, 2002), 67 FR 6062 (February 8,
2002) (extending the pilot through April 15, 2002);
45755 (April 15, 2002), 67 FR 19607 (April 22,
2002) (extending the pilot through September 30,
2002); 46587 (October 2, 2002), 67 FR 63180
(October 10, 2002) (extending the pilot through
January 31, 2003); 47372 (February 14, 2003), 68 FR
8955 (February 26, 2003) (extending the pilot
through May 31, 2003); 47951 (May 30, 2003), 68
FR 34448 (June 9, 2003) (extending the pilot
through December 1, 2003); 48871 (December 3,
2003), 68 FR 69097 (December 11, 2003) (extending
pilot through June 30, 2004); 49994 (July 9, 2004),
69 FR 42486 (July 15, 2004) (extending pilot
through June 30, 2005).
8 See supra note 5.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
11 With the Exchange’s permission, the
Commission deleted irrelevant language from the
notice relating to the Exchange’s continuing
education programs. Telephone conference between
Ellen Neely, President & General Counsel,
Exchange, and Raymond Lombardo, Special
Counsel, Division of Market Regulation,
Commission, on June 29, 2005.
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08JYN1
]]>Agencies
[Federal Register Volume 70, Number 130 (Friday, July 8, 2005)]
[Notices]
[Pages 39537-39539]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-3594]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51938; File No. SR-CBOE-2005-40]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of a Proposed Rule Change and Amendment
No. 1 Thereto Relating to the Hybrid Opening System
June 29, 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 May 16, 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 CBOE.
The CBOE submitted Amendment No. 1 on June 24, 2005.\3\ 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\ Amendment No. 1 revised the rule text to reflect language
recently approved in another filing.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its rules relating to the Hybrid
Opening System (``HOSS'') procedures. The text of the proposed rule
change is set forth below. Additions are in italics. Deletions are in
brackets.
CHAPTER VI
Doing Business on the Exchange Floor
Rule 6.2B. Hybrid Opening System (``HOSS'')
Rule 6.2B. (a) No change.
(b) After the Opening Notice is sent, the System will calculate and
provide the Expected Opening Price (``EOP'') and expected opening size
(``EOS'') given the current resting orders during the EOP Period (``EOP
Period''). The appropriate FPC will establish the duration of the EOP
Period on a class basis at between five and sixty seconds. The EOP,
which will be calculated and disseminated to market participants every
few seconds, is the price at which the greatest number of orders in the
Book are expected to trade. After the Opening Notice is sent, quotes
and orders may be submitted without restriction. An EOP may only be
calculated if: (i) there are market orders in the Book, or the Book is
crossed (highest bid is higher than the lowest offer) or locked
(highest bid equals lowest offer), and (ii) at least one [lsqbb]the
DPM's[rsqbb] quote [lsqbb](or if there is no DPM appointed to the
class, at least one quote from either a Market Maker or LMM with an
appointment in the class)[rsqbb] is present and complies with the legal
width quote requirements of Rule 8.7(b)(iv).
(c)-(d) No Change.
(e) The System will not open a series if one of the following
conditions is met:
(i) [lsqbb]In classes in which a DPM has been appointed,
there[rsqbb] There is no quote present in the series that complies with
the legal width quote requirements of Rule 8.7(b)(iv) [lsqbb]from the
DPM for the series. In classes in which no DPM has been appointed,
there is no quote from
[[Page 39538]]
at least one market-maker or LMM with an appointment in the
class[rsqbb];
(ii) The opening price is not within an acceptable range (as
determined by the appropriate FPC and announced to the membership via
Regulatory Circular) compared to the [lsqbb]highest[rsqbb] lowest quote
offer and the [[lsqbb]lowest[rsqbb] highest quote bid [lsqbb](e.g., the
upper boundary of the acceptable range may be 125% of the highest quote
offer and the lower boundary may be 75% of the lowest quote
bid)[rsqbb]; or
(iii) No Change.
(f)-(i) No Change.
* * * * *
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. The 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing to amend its rules relating to HOSS
procedures. HOSS is the Exchange's automated system for initiating
trading at the beginning of each trading day. For each class of options
contracts approved for trading, the appointed designated primary market
maker (``DPM'') conducts an opening rotation, which must be held
promptly following the opening of the underlying security in the
primary market. For purposes of HOSS, an underlying security shall be
deemed to have opened in the primary market if such market has (i)
reported a transaction in the underlying security, or (ii) disseminated
opening quotations for the underlying security and not given an
indication of a delayed opening, whichever occurs first.
Currently, CBOE rules do not allow a Hybrid option series to be
opened unless the DPM for that option class has submitted a quote that
complies with the legal quote width requirements of CBOE Rule
8.7(b)(v),\4\ regardless of whether other market participants have
timely submitted legal opening quotes.\5\ In an effort to better ensure
that all options series are promptly opened on CBOE, the Exchange is
proposing to allow HOSS to open an option series as long as any market
participant,\6\ not just the DPM, has submitted an opening quote that
complies with the legal width quote requirements. It should be noted
that, under the proposal, even though HOSS can open a series without a
DPM's quote, DPMs, as well as electronic DPMs (``e-DPMs''), remain
obligated under CBOE rules to timely submit opening quotes.\7\
---------------------------------------------------------------------------
\4\ See CBOE Rules 6.2B(b) and (e).
\5\ Other factors must also be satisfied. The opening price for
the series must be within an acceptable range and the opening trade
cannot create a market order imbalance. See CBOE Rule 6.2B(e)(ii)
and (iii).
\6\ This includes a quote from a DPM, e-DPM, market maker, or a
remote market maker. See CBOE Rule 6.45A.
\7\ See Securities Exchange Act Release No. 51670 (May 9, 2005),
70 FR 28338 (May 18, 2005) (order approving SR-CBOE-2005-027, which
requires e-DPMs to submit opening quotes in 100% of the series in
all of their respective allocated option classes).
---------------------------------------------------------------------------
Finally, this rule change proposes to clarify one of the conditions
necessary for opening a series. Current CBOE Rule 6.2B(e)(ii) provides
that, in order for the Hybrid System to open a series, the opening
price must be within an acceptable range (as determined from time to
time by the appropriate Exchange floor procedure committee) compared
with the highest quote offer and the lowest quote bid. The Exchange
proposes to change the method for determining the acceptable range to
use the highest bid and the lowest offer, which could provide for an
even tighter opening price range. In addition, the example provided in
the same rule would be eliminated.
2. Statutory Basis
By allowing more participants' quotes to be included in the opening
process, the Exchange is increasing the likelihood that any particular
option series will open, and, as such, the Exchange believes this
proposed rule change, as amended, is consistent with Section 6(b) of
the Act \8\ in general, and further the objectives of Section 6(b)(5)
in particular,\9\ in that it 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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\8\ 15 U.S.C. 78f(b)(5).
\9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
This proposed rule change, as amended, does not 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
No written comments were solicited or received 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 CBOE 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, as amended, 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-2005-40 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission/Station Place, 100 F
Street, NE., Washington, DC 20549-9303.
All submissions should refer to File Number SR-CBOE-2005-40. 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
[[Page 39539]]
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. 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-2005-40 and should be
submitted by July 29, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-3594 Filed 7-7-05; 8:45 am]
BILLING CODE 8010-01-P
