Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Amend Rule 8.3A Relating to Class Quoting Limits, 43911-43912 [E5-4027]

Download as PDF Federal Register / Vol. 70, No. 145 / Friday, July 29, 2005 / Notices is suspended for the period from 9:30 a.m. EDT, July 27, 2005 through 11:59 p.m. EDT, on August 9, 2005. SECURITIES AND EXCHANGE COMMISSION [File No. 500–1] In the Matter of Greyfield Capital, Inc.; Order of Suspension of Trading July 27, 2005. It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Greyfield Capital, Inc. (‘‘GRYF’’) because of questions as to whether the company was validly reorganized as an Oregon company and the identity of its current officers and directors, whether there have been inaccurate statements about what line of business it is in, whether its recent issuance of shares was validly authorized, and whether there are exaggerations concerning the magnitude of the company’s operations in recent press releases. The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of the above-listed company. Therefore, it is ordered, pursuant to Section 12(k) of the Securities Exchange Act of 1934, that trading in the abovelisted company is suspended for the period from 9:30 a.m. EDT July 27, 2005 through 11:59 p.m. EDT, on August 9, 2005. By the Commission. Jonathan G. Katz, Secretary. [FR Doc. 05–15120 Filed 7–27–05; 12:15 pm] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [File No. 500–1] In the Matter of UCAP, Inc.; Order of Suspension of Trading July 27, 2005. It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of UCAP, Inc. because the company has failed to file timely periodic reports with the Commission in violation of Section 13(a) of the Securities Exchange Act of 1934, since the period ended March 31, 2003. The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of UCAP, Inc. Therefore, it is ordered, pursuant to Section 12(k) of the Securities Exchange Act of 1934, that trading in UCAP, Inc. VerDate jul<14>2003 17:05 Jul 28, 2005 Jkt 205001 By the Commission. Jonathan G. Katz, Secretary. [FR Doc. 05–15121 Filed 7–27–05; 12:15 pm] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52100; File No. SR–CBOE– 2005–48] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Amend Rule 8.3A Relating to Class Quoting Limits July 21, 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 June 17, 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. On July 18, 2005, the CBOE filed Amendment No. 1 to the proposed rule change.3 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,4 and Rule 19b–4(f)(1) thereunder,5 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule U.S.C. 78s(b)(1). CFR 240.19b–4. 3 In Amendment No. 1, the Exchange made nonsubstantive changes to the text of proposed CBOE Rule 8.3A.03 to clarify that Market Makers who do not quote electronically in an option class will not count towards the CQL for such option class. The effective date of the original proposed rule change is June 17, 2005, and the effective date of Amendment No. 1 is July 18, 2005. For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change, as amended, under Section 19(b)(3)(C) of the Act, the Commission considers such period to commence on July 18, 2005, the date on which the Exchange filed Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C). 4 15 U.S.C. 78s(b)(3)(A)(i). 5 17 CFR 240.19b–4(f)(1). PO 00000 1 15 2 17 Frm 00075 Fmt 4703 Sfmt 4703 43911 change, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The CBOE proposes to amend CBOE Rule 8.3A pertaining to Class Quoting Limits (‘‘CQL’’). The text of the proposed rule change is available on the Exchange’s Internet Web site (http:// www.cboe.com), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. 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 CBOE Rule 8.3A, Maximum Number of Market Participants Quoting Electronically per Product, establishes the upper limit, or CQL, on the number of members that may quote electronically in a particular product traded on the CBOE’s Hybrid Trading System and Hybrid 2.0 Platform.6 The methodology for determining which members may submit electronic quotations in a product is governed by paragraphs (a) through (c) of CBOE Rule 8.3A. The purpose of this proposed rule change is to amend CBOE Rule 8.3A in order to expressly note CBOE’s interpretation that a Market-Maker, who holds an appointment pursuant to CBOE Rule 8.3 in an option class traded on the Hybrid Trading System or the Hybrid 2.0 Platform but does not quote electronically in that option class under the provisions of CBOE Rule 8.7(d)(i), does not count towards the CQL in that option class. Pursuant to CBOE Rule 8.3, a MarketMaker has the right to quote (a) electronically in all classes traded on 6 See CBOE Rule 8.3A.01. See also Securities Exchange Act Release No. 51429 (March 24, 2005), 70 FR 16536 (March 31, 2005) (SR–CBOE–2004–58). E:\FR\FM\29JYN1.SGM 29JYN1 43912 Federal Register / Vol. 70, No. 145 / Friday, July 29, 2005 / Notices the Hybrid Trading System that are located in one trading station and a certain number of classes traded on the Hybrid 2.0 Platform that are located in one trading station and (b) in open outcry in all classes traded on the Exchange. However, pursuant to CBOE Rule 8.7(d)(i), a Market-Maker that does not transact more than 20% of his contract volume electronically in an appointed Hybrid class during any calendar quarter is not obligated to quote electronically in any designated series within that option class. In establishing the rules relating to CQLs, the CBOE did not intend, and there would be no purpose, for a Market-Maker, who holds an appointment in a Hybrid class but elects to trade only in open outcry, to count towards the CQL in that option class. Accordingly, the CBOE believes that this interpretation is consistent with the purpose of CBOE Rule 8.3A, which, as noted above, is to limit the number of members that may quote electronically in a particular product to ensure that the Exchange has the ability to effectively handle all quotes generated by members. Although the CBOE anticipates that this situation may arise in only a handful of option classes, absent this interpretation, the CQL in these option classes could be reached even though a certain number of appointed Market-Makers do not submit electronic quotations. As a consequence, other members who might be willing to provide competitive quotations would be prevented from doing so unless the CBOE determines to increase the CQL in accordance with CBOE Rule 8.3A. In proposed CBOE Rule 8.3A.03, the CBOE notes that in the event the Market-Maker later determines to quote electronically in that option class in which he holds an appointment, the Marker-Maker may do so and would count towards the CQL for that option class, which is consistent with the provisions of CBOE Rule 8.3A. If the total number of members quoting electronically exceeds the CQL for that option class, the option class would have an ‘‘increased CQL’’ as described in CBOE Rule 8.3A.01(a). Reduction in any ‘‘increased CQL’’ will be in accordance with the procedures described in CBOE Rule 8.3A.01(a). 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.7 7 15 Specifically, the Exchange believes that the proposed rule change is consistent with the provisions of Section 6(b)(5),8 which require the rules of an exchange to be designed to 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 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 9 and Rule 19b– 4(f)(1) thereunder,10 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.11 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: 17:05 Jul 28, 2005 Jkt 205001 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–2005–48. 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 (http://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–2005–48 and should be submitted on or before August 19, 2005. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–4027 Filed 7–28–05; 8:45 am] BILLING CODE 8010–01–P Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File U.S.C. 78f(b). VerDate jul<14>2003 Number SR–CBOE–2005–48 on the subject line. PO 00000 8 15 U.S.C. 78f(b)(5). U.S.C. 78s(b)(3)(A)(i). 10 17 CFR 240.19b–4(f)(1). 11 See supra note 3. 9 15 Frm 00076 Fmt 4703 Sfmt 4703 12 17 E:\FR\FM\29JYN1.SGM CFR 200.30–3(a)(12). 29JYN1

Agencies

[Federal Register Volume 70, Number 145 (Friday, July 29, 2005)]
[Notices]
[Pages 43911-43912]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4027]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52100; File No. SR-CBOE-2005-48]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change and Amendment No. 1 Thereto To Amend Rule 8.3A Relating to 
Class Quoting Limits

July 21, 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 June 17, 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. 
On July 18, 2005, the CBOE filed Amendment No. 1 to the proposed rule 
change.\3\ 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,\4\ and Rule 19b-4(f)(1) thereunder,\5\ which 
renders the proposal effective upon filing with the Commission. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change, as amended, from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange made non-substantive 
changes to the text of proposed CBOE Rule 8.3A.03 to clarify that 
Market Makers who do not quote electronically in an option class 
will not count towards the CQL for such option class. The effective 
date of the original proposed rule change is June 17, 2005, and the 
effective date of Amendment No. 1 is July 18, 2005. For purposes of 
calculating the 60-day period within which the Commission may 
summarily abrogate the proposed rule change, as amended, under 
Section 19(b)(3)(C) of the Act, the Commission considers such period 
to commence on July 18, 2005, the date on which the Exchange filed 
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
    \4\ 15 U.S.C. 78s(b)(3)(A)(i).
    \5\ 17 CFR 240.19b-4(f)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The CBOE proposes to amend CBOE Rule 8.3A pertaining to Class 
Quoting Limits (``CQL''). The text of the proposed rule change is 
available on the Exchange's Internet Web site (http://www.cboe.com), at 
the Exchange's Office of the Secretary, and at the Commission's Public 
Reference Room.

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
    CBOE Rule 8.3A, Maximum Number of Market Participants Quoting 
Electronically per Product, establishes the upper limit, or CQL, on the 
number of members that may quote electronically in a particular product 
traded on the CBOE's Hybrid Trading System and Hybrid 2.0 Platform.\6\ 
The methodology for determining which members may submit electronic 
quotations in a product is governed by paragraphs (a) through (c) of 
CBOE Rule 8.3A.
---------------------------------------------------------------------------

    \6\ See CBOE Rule 8.3A.01. See also Securities Exchange Act 
Release No. 51429 (March 24, 2005), 70 FR 16536 (March 31, 2005) 
(SR-CBOE-2004-58).
---------------------------------------------------------------------------

    The purpose of this proposed rule change is to amend CBOE Rule 8.3A 
in order to expressly note CBOE's interpretation that a Market-Maker, 
who holds an appointment pursuant to CBOE Rule 8.3 in an option class 
traded on the Hybrid Trading System or the Hybrid 2.0 Platform but does 
not quote electronically in that option class under the provisions of 
CBOE Rule 8.7(d)(i), does not count towards the CQL in that option 
class.
    Pursuant to CBOE Rule 8.3, a Market-Maker has the right to quote 
(a) electronically in all classes traded on

[[Page 43912]]

the Hybrid Trading System that are located in one trading station and a 
certain number of classes traded on the Hybrid 2.0 Platform that are 
located in one trading station and (b) in open outcry in all classes 
traded on the Exchange. However, pursuant to CBOE Rule 8.7(d)(i), a 
Market-Maker that does not transact more than 20% of his contract 
volume electronically in an appointed Hybrid class during any calendar 
quarter is not obligated to quote electronically in any designated 
series within that option class.
    In establishing the rules relating to CQLs, the CBOE did not 
intend, and there would be no purpose, for a Market-Maker, who holds an 
appointment in a Hybrid class but elects to trade only in open outcry, 
to count towards the CQL in that option class. Accordingly, the CBOE 
believes that this interpretation is consistent with the purpose of 
CBOE Rule 8.3A, which, as noted above, is to limit the number of 
members that may quote electronically in a particular product to ensure 
that the Exchange has the ability to effectively handle all quotes 
generated by members. Although the CBOE anticipates that this situation 
may arise in only a handful of option classes, absent this 
interpretation, the CQL in these option classes could be reached even 
though a certain number of appointed Market-Makers do not submit 
electronic quotations. As a consequence, other members who might be 
willing to provide competitive quotations would be prevented from doing 
so unless the CBOE determines to increase the CQL in accordance with 
CBOE Rule 8.3A.
    In proposed CBOE Rule 8.3A.03, the CBOE notes that in the event the 
Market-Maker later determines to quote electronically in that option 
class in which he holds an appointment, the Marker-Maker may do so and 
would count towards the CQL for that option class, which is consistent 
with the provisions of CBOE Rule 8.3A. If the total number of members 
quoting electronically exceeds the CQL for that option class, the 
option class would have an ``increased CQL'' as described in CBOE Rule 
8.3A.01(a). Reduction in any ``increased CQL'' will be in accordance 
with the procedures described in CBOE Rule 8.3A.01(a).
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.\7\ Specifically, the Exchange believes that 
the proposed rule change is consistent with the provisions of Section 
6(b)(5),\8\ which require the rules of an exchange to be designed to 
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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    \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 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 \9\ 
and Rule 19b-4(f)(1) thereunder,\10\ because it constitutes a stated 
policy, practice, or interpretation with respect to the meaning, 
administration, or enforcement of an existing rule.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(i).
    \10\ 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.\11\
---------------------------------------------------------------------------

    \11\ See supra note 3.
---------------------------------------------------------------------------

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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-CBOE-2005-48 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-2005-48. 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 (http://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-2005-48 
and should be submitted on or before August 19, 2005.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4027 Filed 7-28-05; 8:45 am]
BILLING CODE 8010-01-P