Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend CBOE Rule 8.4 Relating to Remote Market-Maker Appointments, 54597-54598 [E5-5027]
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Federal Register / Vol. 70, No. 178 / Thursday, September 15, 2005 / Notices
By the Commission.
Jonathan G. Katz,
Secretary.
[FR Doc. E5–5025 Filed 9–14–05; 8:45 am]
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.
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52398; File No. SR–CBOE–
2005–74]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend CBOE Rule 8.4
Relating to Remote Market-Maker
Appointments
September 8, 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
September 2, 2005, the Chicago Board
Options Exchange, Incorporated
(‘‘Exchange’’ or ‘‘CBOE’’) 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 Exchange. The Exchange filed the
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 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
CBOE proposes to amend CBOE Rule
8.4 relating to Remote Market-Maker
appointments. The text of the proposed
rule change is available on the CBOE’s
Web site (https://www.cboe.com), at the
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
proposed rule change. The text of these
1 15
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
VerDate Aug<18>2005
15:03 Sep 14, 2005
Jkt 205001
54597
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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
B. Self-Regulatory Organization’s
Statement on Burden on Competition
1. Purpose
The purpose of this rule change is to
amend CBOE Rule 8.4 relating to
Remote Market-Maker (‘‘RMM’’)
appointments. Rule 8.4 provides that
RMMs will have a Virtual Trading
Crowd (‘‘VTC’’) Appointment, which
confers the right to quote electronically
in a certain number of products selected
from various ‘‘tiers’’. There are five tiers
that are structured according to trading
volume statistics and an ‘‘A+’’ Tier
which consists of two option classes—
options on Standard & Poor’s Depositary
Receipts and options on the Nasdaq-100
Index Tracking Stock.5 Rule 8.4(d)
assigns ‘‘appointment costs’’ to products
based on the tier in which they are
located, and an RMM may select for
each Exchange membership it owns or
leases any combination of products
trading on the Hybrid 2.0 Platform
whose aggregate ‘‘appointment cost’’
does not exceed 1.0.
CBOE proposes to amend Rule 8.4(d)
relating to the ‘‘A+’’ Tier in two
respects. First, CBOE proposes to
include an additional option class in the
‘‘A+’’ Tier, namely options on
Diamonds (DIA). CBOE believes it is
appropriate to include this option class
in this tier based on its trading volume.6
Second, CBOE proposes to lower the
‘‘appointment cost’’ for the ‘‘A+’’ Tier
from .60 to .25 for each option class in
this tier. CBOE believes that an
‘‘appointment cost’’ of .25, or one
quarter of a CBOE membership, is a
more appropriate ‘‘appointment cost’’
for each product in the ‘‘A+’’ Tier.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 7 in general and
furthers the objectives of Section
6(b)(5) 8 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
5 See Securities Exchange Act Release No. 51543
(April 14, 2005), 70 FR 20952 (April 22, 2005),
approving SR–CBOE–2005–23.
6 Currently, DIA options are traded on CBOE’s
Hybrid Trading System, but not on the Hybrid 2.0
Platform. Thus, there are no RMMs currently
appointed in the DIA option class.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
The Exchange 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
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
Because the foregoing proposed rule
change does not:
(i) significantly affect the protection of
investors or the public interest;
(ii) impose any significant burden on
competition; and
(iii) become operative for 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate, if consistent with the
protection of investors and the public
interest, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 9 and Rule 19b–4(f)(6) thereunder.10
As required under Rule 19b-4(f)(6)(iii)
under the Act,11 the Exchange provided
the Commission with written notice of
its intent to file the proposed rule
change, along with a brief description
and text of the proposed rule change, at
least five business days prior to the date
of the filing of the proposed rule change.
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.12 However, Rule 19b–
4(f)(6)(iii) 13 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. In
addition, the Exchange has requested
that the Commission waive the 30-day
operative delay and render the proposed
rule change to become operative
immediately. The Commission believes
that waiving the 30-day operative delay
is consistent with the protection of
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 Id.
13 Id.
10 17
E:\FR\FM\15SEN1.SGM
15SEN1
54598
Federal Register / Vol. 70, No. 178 / Thursday, September 15, 2005 / Notices
investors and the public interest. The
two changes to the ‘‘A+’’ Tier that are
described in this proposed rule change
do not raise any new, unique, or
substantive issues from those raised in
the filing that initially established the
‘‘A+’’ Tier and the appointment cost for
this tier.14 By lowering the
‘‘appointment cost’’ of the ‘‘A+’’ Tier,
CBOE is reducing the cost to its
members to trade in the products that
are in this tier. For the reasons stated
above, the Commission therefore
designates the proposal to become
operative immediately.15
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 rulecomments@sec.gov. Please include File
Number SR–CBOE–2005–74 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–2005–74. 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
14 See
supra note 5.
purposes only of waiving the operative date
of this proposal, the Commission has considered
the impact of the proposed rule on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
15 For
VerDate Aug<18>2005
15:03 Sep 14, 2005
Jkt 205001
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–2005–74 and should
be submitted on or before October 6,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
Jonathan G. Katz,
Secretary.
[FR Doc. E5–5027 Filed 9–14–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52393; File No. SR–DTC–
2005–12]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Clarify the
Scope and Update the Description of
the Security Position Reports Service
September 8, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
August 23, 2005, The Depository Trust
Company (‘‘DTC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change described in Items I, II, and III
below, which items have been prepared
primarily by DTC. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of the proposed rule
change is to clarify the scope and
update the description of DTC’s
Security Position Reports (‘‘SPRs’’)
16 17
1 15
PO 00000
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
Frm 00079
Fmt 4703
Sfmt 4703
Service it provides to issuers, trustees,
and authorized agents.2
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
DTC 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. DTC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.3
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SPRs are reports prepared by DTC that
show for each issuer whose securities
are eligible for DTC’s book entry
services the identity of each DTC
participant having that issuer’s
securities credited to its participant
account as of a selected date and the
quantity of securities so credited (i.e.,
‘‘security position’’). Prior to the
creation of DTC, issuers had direct
access to SPR information from their
transfer agents. Now, most securities are
registered with the transfer agent in the
name of DTC’s nominee, Cede & Co.,
and issuers rely on DTC to provide them
with SPR information. DTC also
provides SPR information to trustees
and authorized third party agents
(‘‘TPAs’’). These entities typically need
SPR information provided by DTC in
order to properly conduct proxy, record
date, and voting rights-related
functions.4
2 DTC Rule 2 (‘‘Participants and Pledgees’’),
Section 1 authorizes DTC to provide to the issuer
of any security at any time credited to the account
of the participant the name of the participant and
the amount of the issuer’s securities so credited.
DTC is also authorized to provide similar
information to any appropriate governmental
authority.
3 The Commission has modified the text of the
summaries prepared by DTC.
4 In 1979, the Commission mandated that each
clearing agency make SPRs available to issuers
whose securities the clearing agency holds in its
name or in the name of its nominee. Securities
Exchange Act Release No. 16443 (December 28,
1979), 44 FR 76777. In 1989, a DTC rule change
authorized DTC to provide SPRs to resolution and
indenture trustees for debt obligations on deposit at
DTC. Securities Exchange Act Release No. 27426
(November 7, 1989), 54 FR 47624 [File No. SR–
DTC–89–20]. TPAs are also provided with such
information as a result of their role in carrying out
functions on behalf of issuers or trustees. DTC is
modifying its SPR process to require all TPAs that
receive SPR information to agree on an annual basis
to only use such information for the benefit of the
E:\FR\FM\15SEN1.SGM
15SEN1
]]>Agencies
[Federal Register Volume 70, Number 178 (Thursday, September 15, 2005)]
[Notices]
[Pages 54597-54598]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-5027]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52398; File No. SR-CBOE-2005-74]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Amend CBOE Rule 8.4 Relating to Remote Market-Maker
Appointments
September 8, 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 September 2, 2005, the Chicago Board Options Exchange, Incorporated
(``Exchange'' or ``CBOE'') 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 Exchange.
The Exchange filed the 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 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).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to amend CBOE Rule 8.4 relating to Remote Market-
Maker appointments. The text of the proposed rule change is available
on the CBOE's Web site (https://www.cboe.com), at the 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 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this rule change is to amend CBOE Rule 8.4 relating
to Remote Market-Maker (``RMM'') appointments. Rule 8.4 provides that
RMMs will have a Virtual Trading Crowd (``VTC'') Appointment, which
confers the right to quote electronically in a certain number of
products selected from various ``tiers''. There are five tiers that are
structured according to trading volume statistics and an ``A+'' Tier
which consists of two option classes--options on Standard & Poor's
Depositary Receipts and options on the Nasdaq-100 Index Tracking
Stock.\5\ Rule 8.4(d) assigns ``appointment costs'' to products based
on the tier in which they are located, and an RMM may select for each
Exchange membership it owns or leases any combination of products
trading on the Hybrid 2.0 Platform whose aggregate ``appointment cost''
does not exceed 1.0.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 51543 (April 14,
2005), 70 FR 20952 (April 22, 2005), approving SR-CBOE-2005-23.
---------------------------------------------------------------------------
CBOE proposes to amend Rule 8.4(d) relating to the ``A+'' Tier in
two respects. First, CBOE proposes to include an additional option
class in the ``A+'' Tier, namely options on Diamonds (DIA). CBOE
believes it is appropriate to include this option class in this tier
based on its trading volume.\6\
---------------------------------------------------------------------------
\6\ Currently, DIA options are traded on CBOE's Hybrid Trading
System, but not on the Hybrid 2.0 Platform. Thus, there are no RMMs
currently appointed in the DIA option class.
---------------------------------------------------------------------------
Second, CBOE proposes to lower the ``appointment cost'' for the
``A+'' Tier from .60 to .25 for each option class in this tier. CBOE
believes that an ``appointment cost'' of .25, or one quarter of a CBOE
membership, is a more appropriate ``appointment cost'' for each product
in the ``A+'' Tier.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \7\ in general and furthers the objectives
of Section 6(b)(5) \8\ in particular, in that it is 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.
---------------------------------------------------------------------------
\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 Exchange 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
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
Because the foregoing proposed rule change does not:
(i) significantly affect the protection of investors or the public
interest;
(ii) impose any significant burden on competition; and
(iii) become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, if
consistent with the protection of investors and the public interest, it
has become effective pursuant to Section 19(b)(3)(A) of the Act \9\ and
Rule 19b-4(f)(6) thereunder.\10\ As required under Rule 19b-
4(f)(6)(iii) under the Act,\11\ the Exchange provided the Commission
with written notice of its intent to file the proposed rule change,
along with a brief description and text of the proposed rule change, at
least five business days prior to the date of the filing of the
proposed rule change.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\12\
However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. In addition, the Exchange has
requested that the Commission waive the 30-day operative delay and
render the proposed rule change to become operative immediately. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of
[[Page 54598]]
investors and the public interest. The two changes to the ``A+'' Tier
that are described in this proposed rule change do not raise any new,
unique, or substantive issues from those raised in the filing that
initially established the ``A+'' Tier and the appointment cost for this
tier.\14\ By lowering the ``appointment cost'' of the ``A+'' Tier, CBOE
is reducing the cost to its members to trade in the products that are
in this tier. For the reasons stated above, the Commission therefore
designates the proposal to become operative immediately.\15\
---------------------------------------------------------------------------
\12\ Id.
\13\ Id.
\14\ See supra note 5.
\15\ For purposes only of waiving the operative date of this
proposal, the Commission has considered the impact of the proposed
rule on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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-2005-74 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-2005-74. 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-2005-74 and should be submitted on or before
October 6, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jonathan G. Katz,
Secretary.
[FR Doc. E5-5027 Filed 9-14-05; 8:45 am]
BILLING CODE 8010-01-P
