Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Order Granting Accelerated Approval to Proposed Rule Change and Amendments No. 1 and 2 Thereto To Amend CBOE Rule 8.7 To Extend for an Additional Six Months Its Pilot Program Pertaining to Market-Maker Quote Sizes, 48787-48789 [E5-4532]
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Federal Register / Vol. 70, No. 160 / Friday, August 19, 2005 / Notices
Comments on this proposal for
emergency review should be received
within 5 calendar days from the date of
this publication. We are requesting
OMB to take action within 10 calendar
days from the close of this Federal
Register Notice on the request for
emergency review.
Comments are encouraged and will be
accepted for 60 days until October 18,
2005.
ADDRESSES: Send or deliver comments
to: U.S. Office of Personnel
Management, HRPS\CLCS\PMFP,
ATTN: Rob Timmins, 1900 E Street,
NW., Room 1425, Washington, DC
20415–9820, E-mail: pmf@opm.gov; and
Brenda Aguilar, OPM Desk Officer,
Office of Management and Budget,
Office of Information and Regulatory
Affairs, New Executive Office Building,
NW., Room 10235, Washington, DC
20503.
DATES:
Office of Personnel Management.
Linda M. Springer,
Director.
[FR Doc. 05–16591 Filed 8–17–05; 1:29 pm]
BILLING CODE 6325–38–P
RAILROAD RETIREMENT BOARD
Proposed Collection; Comment
Request
Summary: In accordance with the
requirement of Section 3506(c)(2)(A) of
the Paperwork Reduction Act of 1995
which provides opportunity for public
comment on new or revised data
collections, the Railroad Retirement
Board (RRB) will publish periodic
summaries of proposed data collections.
Comments are invited on: (a) Whether
the proposed information collection is
necessary for the proper performance of
the functions of the agency, including
whether the information has practical
utility; (b) the accuracy of the RRB’s
estimate of the burden of the collection
of the information; (c) ways to enhance
the quality, utility, and clarity of the
information to be collected; and (d)
ways to minimize the burden related to
the collection of information on
respondents, including the use of
automated collection techniques or
other forms of information technology.
Title and purpose of information
collection: Medicare; OMB 3220–0082.
Under section 7(d) of the Railroad
Retirement Act (RRA), the Railroad
Retirement Board (RRB) administers the
Medicare program for persons covered
by the railroad retirement system. The
RRB uses Form AA–6, Employee
Application for Medicare; Form AA–7,
Spouse/Divorced Spouse Application
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For Medicare; and Form AA–8, Widow/
Widower Application for Medicare; to
obtain the information needed to
determine whether individuals who
have not yet filed for benefits under the
RRA are qualified for Medicare
payments provided under Title XVIII of
the Social Security Act.
Further, in order for the RRB to
determine if a qualified railroad
retirement beneficiary who is claiming
supplementary medical insurance
coverage under Medicare is entitled to
a Special Enrollment Period (SEP) and/
or premium surcharge relief because of
coverage under an Employer Group
Health Plan (EGHP), it needs to obtain
information regarding the claimant’s
EGHP coverage, if any. The RRB uses
Form RL–311-F, Evidence of Coverage
Under An Employer Group Health Plan,
to obtain the basic information needed
by the RRB to establish EGHP coverage
for a qualified railroad retirement
beneficiary. Completion of the forms is
required to obtain a benefit. One
response is requested of each
respondent.
The RRB proposes no changes to
Forms AA–6, AA–7 and AA–8. The RRB
proposes revising Form RL–311–F by
adding a new item, Item 2, ‘‘Name of the
Group Health Plan’’. In addition the
RRB proposes minor, non-burden
impacting, editorial and formatting
changes. The RRB estimates that 180
Form AA–6’s, 50 Form AA–7’s, 10 Form
AA–8’s, and 800 RL–311–F’s are
completed annually. The completion
time for Forms AA–6, AA–7 and AA–8
is estimated at 8 minutes. The
completion time for Form RL–311–F is
estimated at 10 minutes.
Additional Information or Comments:
To request more information or to
obtain a copy of the information
collection justification, 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
North Rush Street, Chicago, Illinois
60611–2092 or send an e-mail to
Ronald.Hodapp@RRB.GOV. Written
comments should be received within 60
days of this notice.
Charles Mierzwa,
Clearance Officer.
[FR Doc. 05–16470 Filed 8–18–05; 8:45 am]
BILLING CODE 7905–01–P
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48787
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52256; File No. SR–CBOE–
2005–56]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Order Granting Accelerated Approval
to Proposed Rule Change and
Amendments No. 1 and 2 Thereto To
Amend CBOE Rule 8.7 To Extend for
an Additional Six Months Its Pilot
Program Pertaining to Market-Maker
Quote Sizes
August 15, 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 July 15,
2005, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. On July 29, 2005,
CBOE submitted Amendment No. 1 to
the proposed rule change.3 On August
10, 2005, CBOE submitted Amendment
No. 2 to the proposed rule change.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
change, as amended, from interested
persons and to approve the proposal on
an accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to amend CBOE Rule
8.7 to extend for an additional six
months its pilot program pertaining to
market-maker quote sizes. The text of
the proposed rule change is available on
CBOE’s Web site at https://
www.CBOE.com, at CBOE’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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 In Amendment No. 1, CBOE replaced the
original rule filing in its entirety.
4 In Amendment No. 2, CBOE revised the text of
the proposed rule change to be consistent with its
current rule in order to accurately reflect the
proposed rule change.
2 17
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48788
Federal Register / Vol. 70, No. 160 / Friday, August 19, 2005 / Notices
proposed rule change. The text of these
statements may be examined at the
places specified in Item III 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
On August 17, 2004, the Commission
approved, on a one-year pilot basis, an
exception to CBOE Rule 8.7, pertaining
to the general quoting obligations of
Market-Makers in option classes traded
on CBOE’s Hybrid Trading System
(‘‘Pilot Program’’).5 The Pilot Program
allows Market-Makers to submit an
undecremented electronic quotation of a
size as low as 1-contract (‘‘1-up’’) when
the underlying primary market for the
option disseminates a 1-up market (i.e.,
a market that reflects a quotation for 100
shares of the underlying security). The
ability to quote 1-up is expressly
conditioned on the process being
automated; in other words, a MarketMaker may not manually adjust his
quotes to reflect a 1-up size quote.
CBOE believes that the Pilot Program
has been effective in serving the original
purpose of the rule filing. Specifically,
the purpose of the Pilot Program was to
address the fact that Market-Makers may
be subject to heightened and possibly
inappropriate levels of risk due to their
obligation to maintain electronic twosided quotes for at least 10-contracts,
whereas there is no restriction on the
stock specialist’s ability to disseminate
a 1-up market. Additionally, when the
underlying market disseminates a 1-up
quote, it substantially restricts the
amount of liquidity available in that
security to 100 shares on that particular
side of the market, which limits a
Market-Maker’s ability to hedge his/her
positions and increases his/her financial
exposure.
CBOE requests that the Pilot Program
be extended for an additional six
months, until February 17, 2006, to
allow CBOE time to further consider
whether this Pilot Program is a useful
tool for Market-Makers to manage their
risks when the underlying primary
market quotes 1-up. This additional
time would also provide Market-Makers
with the opportunity to modify their
systems to quote 1-up on an automated
basis.
(2) Statutory Basis
The Exchange 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.6 Specifically, the Exchange
believes the proposed rule change is
consistent with the Section 6(b)(5) 7
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
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
IV. Commssion’s Findings and Order
Granting Accelerated Approval of
Proposed Rule Change
The Commission finds that the
proposed rule change, as amended, is
III. Solicitation of Comments
consistent with the requirements of the
Interested persons are invited to
Act and the rules and regulations
submit written data, views, and
thereunder applicable to a national
arguments concerning the foregoing,
securities exchange.8 In particular, the
including whether the proposed rule
Commission believes that the proposal
change, as amended, is consistent with
is consistent with Section 6(b)(5) of the
the Act. Comments may be submitted by
Act,9 which requires that the rules of an
any of the following methods:
exchange be designed to prevent
Electronic Comments
fraudulent and manipulative acts and
practices, to promote just and equitable
• Use the Commission’s Internet
principles of trade, to remove
comment form (https://www.sec.gov/
impediments to and perfect the
rules/sro.shtml); or
mechanism of a free and open market
• Send an e-mail to ruleand a national market system, and in
comments@sec.gov. Please include File
general to protect investors and the
Number SR–CBOE–2005–56 on the
public interest.
subject line.
The Commission believes that
Paper Comments
extending the Pilot Program for an
additional six months is necessary to
• Send paper comments in triplicate
provide the Commission with adequate
to Jonathan G. Katz, Secretary,
information to evaluate the effect of the
Securities and Exchange Commission,
Pilot Program. The Commission notes
Station Place, 100 F Street, NE.,
that in approving the Pilot Program, it
Washington, DC 20549–9303.
requested a report from CBOE based on
All submissions should refer to File
ten months of data during the first year
Number SR–CBOE–2005–56. This file
of the Pilot Program, to be due two
number should be included on the
subject line if e-mail is used. To help the months prior to expiration of the Pilot
Program. The Commission received a
Commission process and review your
letter from CBOE approximately one
comments more efficiently, please use
only one method. The Commission will month prior to the end of the Pilot
post all comments on the Commission’s
8
The Exchange neither received or
solicited written comments on the
proposal.
Securities Exchange Act Release No. 50205
(August 17, 2004), 69 FR 51869 (August 23, 2004)
(approving SR–CBOE–2003–39).
In approving this proposal, the Commission has
considered its impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
9 15 U.S.C. 78f(b)(5).
5 See
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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 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–2005–56 and should
be submitted on or before September 9,
2005.
PO 00000
6 15
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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Federal Register / Vol. 70, No. 160 / Friday, August 19, 2005 / Notices
Program. The letter from CBOE, which
was based on a very limited analysis of
the program, stated that in its opinion,
the Pilot Program did not have any
impact on CBOE’s best quote and size of
best quote or the quality of the CBOE
market. CBOE stated in the letter that it
believed that additional Market-Makers
would utilize the Pilot Program if given
more time to make the required systems
changes.
Should the Exchange decide to
propose to extend, or to obtain
permanent approval of, the Pilot
Program, the Commission expects to
receive a more comprehensive analysis
of the entire Pilot Program two months
prior to the expiration of this six-month
extension, so that the Commission may
evaluate the effectiveness of the Pilot
Program.
The Commission finds good cause,
pursuant to Section 19(b)(2) of the
Act,10 for approving the proposed rule
change, as amended, prior to the
thirtieth day after the publication of
notice thereof in the Federal Register.
The Pilot Program is set to expire on
August 17, 2005, and as such, to allow
the Pilot Program to continue to operate
pursuant to proper authority, the
Commission believes it is appropriate to
accelerate approval. Accordingly, the
Commission finds that good cause
exists, consistent with Section 6(b)(5) of
the Act,11 to approve the proposal on an
accelerated basis.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,12 that the
proposed rule change, as amended (SR–
CBOE–2005–56), is hereby approved on
an accelerated basis on a pilot basis,
scheduled to expire on February 17,
2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Jonathan G. Katz,
Secretary.
[FR Doc. E5–4532 Filed 8–18–05; 8:45 am]
BILLING CODE 8010–01–P
10 15
U.S.C. 78s(b)(2).
U.S.C. 78f(b)(5).
12 15 U.S.C. 78s(b)(2).
13 17 CFR 200.30–3(a)(12).
11 15
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48789
SECURITIES AND EXCHANGE
COMMISSION
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
[Release No. 34–52250; File No. SR–ISE–
2005–34]
The ISE is proposing to amend its
Schedule of Fees to establish fees for
transactions in options on three narrowbased indexes and three broad-based
indexes. The three narrow-based
indexes are the ISE U.S. Regional Banks
Index, the ISE SINdex, and the ISE BioPharmaceuticals Index. The three broadbased indexes are the ISE 250 Index, the
ISE 100 Index, and the ISE 50 Index.
The text of the proposed rule change, as
amended, is available on the ISE’s Web
site (https://www.iseoptions.com/legal/
proposed_rule_changes.asp), at the
principal office of the ISE, and at the
Commission’s Public Reference Room.
Self-Regulatory Organizations;
International Securities Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change and Amendments Nos. 1, 2,
and 3 Thereto Relating to Fee Changes
August 12, 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 July 12,
2005, the International Securities
Exchange, Inc. (‘‘ISE’’ 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 ISE. On July
29, 2005, ISE filed Amendment No. 1 to
the proposed rule change.3 On August
10, 2005, ISE filed Amendment No. 2 to
the proposed rule change.4 On August
11, 2005, ISE filed Amendment No. 3 to
the proposed rule change.5 The ISE has
designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by the ISE under
section 19(b)(3)(A)(ii) of the Act,6 and
Rule 19b–4(f)(2) thereunder,7 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.
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Amendment No. 1 made technical changes to
the text of the filing, including Exhibit 5 (ISE’s
Schedule of Fees), to correct the name of one of the
narrow-based indexes, the ISE Integrated Oil & Gas
Index, and to add asterisks after the Comparison
Fee section in the Schedule of Fees to indicate
omitted text.
4 Amendment No. 2 made a clarifying change to
the text of the filing to indicate that options on the
ISE Integrated Oil & Gas Index are not currently
listed for trading on the Exchange but that the
Exchange expects to list those options in the near
future. ISE also made a technical change to
correctly renumber all pages of Exhibit 4 and to
clarify the language in Item II.
5 Amendment No. 3 deletes ISE Integrated Oil &
Gas Index from the Schedule of Fees in Exhibit 5,
as well as all references to that Index in the text
of the filing. Due to technical reasons, the Exchange
is not currently able to list options on the ISE
Integrated Oil & Gas Index. The correction to
Exhibit 5 does not affect the fees for transactions in
options on the three narrow-based indexes and the
three broad-based indexes that are the subject of
this filing.
6 15 U.S.C. 78s(b)(3)(A)(ii).
7 17 CFR 240.19b–4(f)(2).
PO 00000
1 15
2 17
Frm 00127
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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
ISE 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 ISE 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 Schedule of Fees to establish fees for
transactions in options on three narrowbased indexes and three broad-based
indexes. The narrow-based indexes are
the ISE U.S. Regional Banks Index
(‘‘JLO’’), the ISE SINdex (‘‘SIN’’), and
the ISE Bio-Pharmaceuticals Index
(‘‘RND’’).8 The three broad-based
indexes are the ISE 250 Index (‘‘IXZ’’),
the ISE 100 Index (‘‘IXX’’), and the ISE
50 Index (‘‘IXK’’).9 Specifically, the
8 The Exchange represents that the following
three narrow-based indexes, the ISE U.S. Regional
Banks Index, the ISE SINdex, and the ISE BioPharmaceuticals Index, meet the standards of ISE
Rule 2002(b), which allows the ISE to begin trading
these products by filing Form 19b–4(e) at least five
business days after commencement of trading these
new products pursuant to Rule 19b–4(e) of the Act.
The Commission notes that the ISE filed Form 19b–
4(e) for these narrow-based indexes with the
Commission on June 19, 2005.
9 See Securities Exchange Act Release No. 51913
(June 23, 2005), 70 FR 38220 (July 1, 2005) (SR–
ISE–2004–28) (order approving the trading of
options on the ISE 250 Index, the ISE 100 Index,
and the ISE 50 Index).
E:\FR\FM\19AUN1.SGM
19AUN1
]]>Agencies
[Federal Register Volume 70, Number 160 (Friday, August 19, 2005)]
[Notices]
[Pages 48787-48789]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4532]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52256; File No. SR-CBOE-2005-56]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Order Granting Accelerated Approval
to Proposed Rule Change and Amendments No. 1 and 2 Thereto To Amend
CBOE Rule 8.7 To Extend for an Additional Six Months Its Pilot Program
Pertaining to Market-Maker Quote Sizes
August 15, 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 July 15, 2005, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``SEC'' or ``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared by
the Exchange. On July 29, 2005, CBOE submitted Amendment No. 1 to the
proposed rule change.\3\ On August 10, 2005, CBOE submitted Amendment
No. 2 to the proposed rule change.\4\ The Commission is publishing this
notice to solicit comments on the proposed rule change, as amended,
from interested persons and to approve the proposal on an accelerated
basis.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ In Amendment No. 1, CBOE replaced the original rule filing
in its entirety.
\4\ In Amendment No. 2, CBOE revised the text of the proposed
rule change to be consistent with its current rule in order to
accurately reflect the proposed rule change.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to amend CBOE Rule 8.7 to extend for an additional
six months its pilot program pertaining to market-maker quote sizes.
The text of the proposed rule change is available on CBOE's Web site at
https://www.CBOE.com, at CBOE'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
[[Page 48788]]
proposed rule change. The text of these statements may be examined at
the places specified in Item III 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
On August 17, 2004, the Commission approved, on a one-year pilot
basis, an exception to CBOE Rule 8.7, pertaining to the general quoting
obligations of Market-Makers in option classes traded on CBOE's Hybrid
Trading System (``Pilot Program'').\5\ The Pilot Program allows Market-
Makers to submit an undecremented electronic quotation of a size as low
as 1-contract (``1-up'') when the underlying primary market for the
option disseminates a 1-up market (i.e., a market that reflects a
quotation for 100 shares of the underlying security). The ability to
quote 1-up is expressly conditioned on the process being automated; in
other words, a Market-Maker may not manually adjust his quotes to
reflect a 1-up size quote.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 50205 (August 17,
2004), 69 FR 51869 (August 23, 2004) (approving SR-CBOE-2003-39).
---------------------------------------------------------------------------
CBOE believes that the Pilot Program has been effective in serving
the original purpose of the rule filing. Specifically, the purpose of
the Pilot Program was to address the fact that Market-Makers may be
subject to heightened and possibly inappropriate levels of risk due to
their obligation to maintain electronic two-sided quotes for at least
10-contracts, whereas there is no restriction on the stock specialist's
ability to disseminate a 1-up market. Additionally, when the underlying
market disseminates a 1-up quote, it substantially restricts the amount
of liquidity available in that security to 100 shares on that
particular side of the market, which limits a Market-Maker's ability to
hedge his/her positions and increases his/her financial exposure.
CBOE requests that the Pilot Program be extended for an additional
six months, until February 17, 2006, to allow CBOE time to further
consider whether this Pilot Program is a useful tool for Market-Makers
to manage their risks when the underlying primary market quotes 1-up.
This additional time would also provide Market-Makers with the
opportunity to modify their systems to quote 1-up on an automated
basis.
(2) Statutory Basis
The Exchange 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.\6\ Specifically, the Exchange believes the
proposed rule change is consistent with the Section 6(b)(5) \7\
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.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
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 received or solicited written comments on the
proposal.
III. 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-2005-56 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-2005-56. 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 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-2005-56
and should be submitted on or before September 9, 2005.
IV. Commssion's Findings and Order Granting Accelerated Approval of
Proposed Rule Change
The Commission finds that the proposed rule change, as amended, is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange.\8\
In particular, the Commission believes that the proposal is consistent
with Section 6(b)(5) of the Act,\9\ which requires that the rules of an
exchange be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and in general to protect investors and the
public interest.
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\8\ In approving this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. See 15
U.S.C. 78c(f).
\9\ 15 U.S.C. 78f(b)(5).
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The Commission believes that extending the Pilot Program for an
additional six months is necessary to provide the Commission with
adequate information to evaluate the effect of the Pilot Program. The
Commission notes that in approving the Pilot Program, it requested a
report from CBOE based on ten months of data during the first year of
the Pilot Program, to be due two months prior to expiration of the
Pilot Program. The Commission received a letter from CBOE approximately
one month prior to the end of the Pilot
[[Page 48789]]
Program. The letter from CBOE, which was based on a very limited
analysis of the program, stated that in its opinion, the Pilot Program
did not have any impact on CBOE's best quote and size of best quote or
the quality of the CBOE market. CBOE stated in the letter that it
believed that additional Market-Makers would utilize the Pilot Program
if given more time to make the required systems changes.
Should the Exchange decide to propose to extend, or to obtain
permanent approval of, the Pilot Program, the Commission expects to
receive a more comprehensive analysis of the entire Pilot Program two
months prior to the expiration of this six-month extension, so that the
Commission may evaluate the effectiveness of the Pilot Program.
The Commission finds good cause, pursuant to Section 19(b)(2) of
the Act,\10\ for approving the proposed rule change, as amended, prior
to the thirtieth day after the publication of notice thereof in the
Federal Register. The Pilot Program is set to expire on August 17,
2005, and as such, to allow the Pilot Program to continue to operate
pursuant to proper authority, the Commission believes it is appropriate
to accelerate approval. Accordingly, the Commission finds that good
cause exists, consistent with Section 6(b)(5) of the Act,\11\ to
approve the proposal on an accelerated basis.
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\10\ 15 U.S.C. 78s(b)(2).
\11\ 15 U.S.C. 78f(b)(5).
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V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\12\ that the proposed rule change, as amended (SR-CBOE-2005-56),
is hereby approved on an accelerated basis on a pilot basis, scheduled
to expire on February 17, 2006.
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\12\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. E5-4532 Filed 8-18-05; 8:45 am]
BILLING CODE 8010-01-P
