Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change and Amendment No. 1 Thereto To Delete Certain Exchange Rules, or Portions Thereof, Which Have Been Determined by the Exchange To Be Obsolete or Unnecessary, 72318-72320 [E5-6751]
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Federal Register / Vol. 70, No. 231 / Friday, December 2, 2005 / Notices
given to extending the time to request a
hearing. A request for extension of time
must be made in writing to the Director,
Office of Enforcement, U.S. Nuclear
Regulatory Commission, Washington,
DC 20555, and include a statement of
good cause for the extension. Any
request for a hearing shall be submitted
to the Secretary, U.S. Nuclear
Regulatory Commission, ATTN: Chief,
Rulemakings and Adjudications Staff,
Washington, DC 20555. Copies also
shall be sent to the Director, Office of
Enforcement, U.S. Nuclear Regulatory
Commission, Washington, DC 20555, to
the Assistant General Counsel for
Materials Litigation and Enforcement at
the same address, to the Regional
Administrator, NRC Region IV, 611
Ryan Plaza Drive, Suite 400, Arlington,
Texas 76011, and to the Licensee.
Because of continuing disruptions in
delivery of mail to United States
Government offices, it is requested that
answers and requests for hearing be
transmitted to the Secretary of the
Commission either by means of
facsimile transmission to 301–415–1101
or by e-mail to hearingdocket@nrc.gov
and also to the Office of the General
Counsel either by means of facsimile
transmission to 301–415–3725 or by email to OGCMailCenter@nrc.gov. If a
person other than the licensee requests
a hearing, that person shall set forth
with particularity the manner in which
his interest is adversely affected by this
Confirmatory Order and propose at least
one admissible contention, addressing
the criteria set forth in 10 CFR 2.309(d)
and (f).
If a hearing is requested by a person
whose interest is adversely affected, the
Commission will issue an Order
designating the time and place of any
hearing. If a hearing is held, the issue to
be considered at such hearing shall be
whether this Confirmatory Order should
be sustained. In the absence of any
request for hearing, or written approval
of an extension of time in which to
request a hearing, the provisions
specified in section IV above shall be
final 20 days from the date of this
Confirmatory Order without further
order or proceedings. If an extension of
time for requesting a hearing has been
approved, the provisions specified in
Section IV shall be final when the
extension expires if a hearing request
has not been received. An Answer or a
Request for Hearing Shall Not Stay the
Immediate Effectiveness of this Order.
For the Nuclear Regulatory Commission.
Dated this 22nd day of November 2005.
Michael R. Johnson,
Director, Office of Enforcement.
[FR Doc. E5–6750 Filed 12–1–05; 8:45 am]
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[Release No. 34–52824; File No. SR–CBOE–
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BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Pub. L. 94–409, that the
Securities and Exchange Commission
will hold the following meeting during
the week of December 5, 2005:
A closed meeting will be held on
Thursday, December 8, 2005 at 2 p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters may also be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c), (3), (5), (7), (9)(B), and
(10) and 17 CFR 200.402(a), (3), (5), (7),
9(ii) and (10) permit consideration of
the scheduled matters at the closed
meeting.
Commissioner Glassman, as duty
officer, voted to consider the items
listed for the closed meeting in closed
session.
The subject matter of the closed
meeting scheduled for Thursday,
December 8, 2005 will be:
Formal orders of investigations;
Institution and settlement of injunctive
actions;
Institution and settlement of
administrative proceedings of an
enforcement nature; and an
Adjudicatory matter.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact: The Office of the Secretary at
(202) 551–5400.
Dated: November 29, 2005.
Jonathan G. Katz,
Secretary.
[FR Doc. 05–23612 Filed 11–30–05; 11:33
am]
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Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change and Amendment No. 1
Thereto To Delete Certain Exchange
Rules, or Portions Thereof, Which
Have Been Determined by the
Exchange To Be Obsolete or
Unnecessary
November 22, 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 1, 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 November 8,
2005, the Exchange filed Amendment
No. 1 to the proposal.3 The Exchange
filed the proposed rule change, as
amended, as a ‘‘non-controversial’’ rule
change under Rule 19b–4(f)(6) under the
Act,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,
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 delete certain
rules, or portions thereof, which have
been determined by the Exchange to be
obsolete or unnecessary. The text of the
proposed rule change is available on
Exchange’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
CBOE included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Form 19b–4 dated November 8, 2005, which
replaced the original filing in its entirety
(‘‘Amendment No. 1’’).
4 17 CFR 240.19b–4(f)(6).
2 17
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Federal Register / Vol. 70, No. 231 / Friday, December 2, 2005 / Notices
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, Proposed Rule
Change
1. Purpose
The Exchange proposes to delete the
rules, or portions thereof, that pertain to
the former Joint Venture Participation
Agreement (‘‘Agreement’’) between
CBOE and the Chicago Board of Trade
(‘‘CBOT’’). The Exchange represents that
the Agreement, among other things,
provided that CBOE would waive
certain dues and fees for CBOT Exercise
members who made no trades in CBOE
contracts in a given quarter. In addition,
the Agreement waived all membership
application fees and technology fees for
CBOT Exercise members. The Exchange
represents that the Agreement
terminated on December 29, 1998, and
the Exchange has no intention of
initiating this program in the future. On
December 10, 1998, CBOE issued
Regulatory Circular RG98–140 to its
members informing them that the
Agreement would terminate effective
December 29, 1998 and that the
Agreement would not be renewed. In
addition, the Commission issued
Securities Exchange Act Release No.
40973, which pertained to the
termination of the Agreement and the
initiation of fees that would ultimately
be charged to the CBOT Exercise
members pursuant to the termination of
the Agreement.5 The proposed CBOE
rules that pertain to the obsolete
Agreement, or the portions thereof, that
are to be deleted are: CBOE Rule 1.1,
Rule 6.7, Rule 6.20, Rule 6.70, Rule 9.1,
Rule 19.1, and Rule 30.12.
Also, the Exchange proposes to delete
the rules, or portions thereof, that
pertain to Board Brokers. A Board
Broker is an individual member, a
nominee of a member organization or a
member organization who or which is
registered with the Exchange for the
purposes of (i) acting as a ‘‘broker’s
broker’’ for specified classes of options,
at the post at which such classes of
options are traded, by accepting and
attempting to execute orders placed
with him by other members, and (ii)
monitoring the market for such classes
of options at the post. The Exchange
represents that it has not used Board
5 Securities Exchange Act Release No. 40973
(January 25, 1999), 64 FR 4915 (February 1, 1999)
(SR–CBOE–98–55).
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Brokers for approximately 22 years, and
does not intend to use them in the
future. The proposed CBOE rules
pertaining to Board Brokers, or the
portions thereof, that are to be deleted
are: CBOE Rule 6.43, Rule 6.46, Rule
6.47, Rule 6.54, Rule 6.70, Rule 7.1,
Rule 7.2, Rule 7.3, Rule 7.4, Rule 7.5,
Rule 7.7, Rule 7.8, Rule 7.9, Rule 7.10,
and Rule 7.11.
In addition to the deletions of the
above-referenced ‘‘Joint Venture’’ and
‘‘Board Broker’’ rules, or portions
thereof, the Exchange proposes to delete
each of the following rules, or portions
thereof:
• CBOE Rule 2.21—This rule allows
the Exchange to impose a charge upon
Exchange members measured by their
respective net commissions. The
Exchange represents that Exchange
members have not assessed the
commissions that such charges are
measured by since the early 1970s, and
such commissions will not be assessed
by Exchange members in the future. For
this reason, the Exchange has not
imposed and will not impose such
charges upon its members, since there is
no commission to base it upon,
therefore making this rule obsolete and
unnecessary.
• CBOE Rule 2.25 and CBOE Rule
2.30—These rules allow the Exchange to
assess fees for the delayed submission of
trade information. Specifically, these
rules allow the Exchange to assess fees
to members who failed to submit trade
information for at least 80% of all of
that member’s transactions. Currently,
over 98% of all trade information is
disseminated within one hour after the
time of execution. The Exchange
represents that it no longer assesses
such fees, since 98% of all trade
information is disseminated within one
hour after the time of execution, and
does not intend to assess them in the
future.
• CBOE Rule 14.2, CBOE Rule 14.3,
and CBOE Rule 14.5—The rules in
Chapter 14 of the CBOE rulebook were
created for the purpose of charging and
collecting commissions. Specifically,
CBOE Rule 14.1 made it mandatory for
commissions to be charged and
collected upon the execution of all
orders, for the accounts of members and
non-members, of securities dealt on
CBOE. CBOE Rule 14.1 stated that the
commissions would be no less than the
rates established by CBOE and such
commissions shall be ‘‘net and free from
any rebate, return, discount or
allowance.’’ The Exchange represents
that CBOE Rule 14.1 was deleted from
CBOE’s rules on May 15, 1975, since
such fixed commissions would no
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72319
longer be charged and would not be
charged in the future.
For this reason, at this time, the
Exchange proposes to delete CBOE
Rules 14.2, 14.3, and 14.5, since the
Exchange believes that there is no need
for these rules since they pertained
specifically to the commissions
discussed in CBOE Rule 14.1 and which
are no longer necessary.
Specifically, CBOE Rule 14.2 involves
reciprocal arrangements. The Exchange
states that reciprocal arrangements were
agreements that brokers used with other
brokers to permit such brokers to
participate in the commissions that
were generated from the execution of
orders. The Exchange represents that
reciprocal arrangements have not been
used since the early 1970s. Specifically,
CBOE Rule 14.2(a) states that any such
arrangement had to be reported to CBOE
and subject to CBOE’s approval. CBOE
Rule 14.2(b) states that no member, in
consideration of the receipt of business,
shall make any payments, or give up
any work or give up any part of any
commission to which such member is or
will be entitled. Since such
arrangements as described in CBOE
Rule 14.2(b) were never permitted, the
Exchange would not approve such
arrangements pursuant to CBOE Rule
14.2(a), if and when an Exchange
member reported such an arrangement
to the Exchange. Further, since the
commissions as discussed in CBOE Rule
14.1 are no longer charged, and have not
been charged since the early 1970s, the
Exchange believes that there is no need
to have a rule pertaining to reciprocal
arrangements, since the commissions
that the arrangements were based on are
no longer charged and will not be
charged in the future. Specifically,
CBOE Rule 14.2 prohibited those
arrangements that were used to
circumvent the commissions referred to
in CBOE Rule 14.1, and therefore, since
CBOE Rule 14.1 was deleted on May 15,
1975, there is no need for CBOE Rule
14.2.
CBOE Rule 14.3 deals with
commissions charged on non-member
orders. This rule specifically sets forth
that the commissions to be charged on
non-member orders shall be mutually
agreed upon. Again, the Exchange
represents that this rule is obsolete,
since the commissions that this rule
pertains to are no longer charged and
have not been charged since the early
1970s. Therefore, the Exchange believes
that there is no need for this rule.
CBOE Rule 14.5 deals with intramember rates for floor brokerage. This
rule states that for those orders that are
executed when a principal is given up,
the commission shall be mutually
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Federal Register / Vol. 70, No. 231 / Friday, December 2, 2005 / Notices
agreed upon. As with CBOE Rule 14.3,
the Exchange believes that this rule is
obsolete, since the commissions that
this rule pertains to have not been
charged since the early 1970s and the
Exchange does not plan to charge such
commissions in the future. For this
reason, the Exchange believes that there
is no need for this rule.
• CBOE Rule 15.4—This rule pertains
to a monthly commission report that the
Exchange required certain individual
members and member organizations to
submit to the Treasurer of the Exchange.
Specifically, this rule required certain
members to disclose commissions on
business done on the Exchange for each
month. The Exchange believes that this
rule is obsolete, since such a report is
no longer necessary given that such
commissions are no longer charged and
collected.
2. Statutory Basis
By deleting certain Exchange rules, or
portions thereof, which have been
determined to be obsolete or
unnecessary, the Exchange believes that
the proposed rule change is consistent
with Section 6(b) of the Act 6 in general,
and furthers the objectives of Section
6(b)(5) of the Act 7 in particular, 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 national market system, and, in
general, 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 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
Written comments on the proposed
rule change were neither solicited nor
received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change, as
amended: (i) Does not significantly
affect the protection of investors or the
public interest; (ii) does not impose any
significant burden on competition; and
(iii) by its terms, does not become
operative for 30 days after the date of
6 15
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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15:11 Dec 01, 2005
Jkt 205001
filing, the proposed rule change has
become effective pursuant to Section
19(b)(3)(A) of the Act 8 and
subparagraph (f)(6) of Rule 19b–4
thereunder.9 As required under Rule
19b–4(f)(6)(iii),10 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.
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 the 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:
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–2005–69 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9309.
All submissions should refer to File
Number SR–CBOE–2005–69. 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
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii).
11 The effective date of Amendment No. 1 is
November 8, 2005. For purposes of calculating the
60-day period within which the Commission may
summarily abrogate the proposal, the Commission
considers the period to commence on November 8,
2005, the date on which the Exchange submitted
Amendment No. 1.
9 17
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Fmt 4703
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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–2005–69 and should
be submitted on or before December 23,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6751 Filed 12–1–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52838; File No. SR–NYSE–
2005–66]
Self-Regulatory Organizations; New
York Stock Exchange, Inc.; Order
Granting Accelerated Approval of
Proposed Rule Change and
Amendment No. 1 Thereto To Amend
Rule 460 (Specialists Participating in
Contests)
November 28, 2005.
I. Introduction
On September 29, 2005, the New York
Stock Exchange, Inc. (‘‘NYSE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) a proposed rule
change, pursuant to Section 19(b)(1) of
the Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 to
amend NYSE Rule 460 (Specialists
Participating in Contests). On October
25, 2005, the NYSE amended the
proposed rule change. The proposed
rule change, as modified by Amendment
No. 1, was published for comment in
the Federal Register on November 3,
2005.3 The Commission received no
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 52688
(October 27, 2005), 70 FR 66879.
1 15
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]]>Agencies
[Federal Register Volume 70, Number 231 (Friday, December 2, 2005)]
[Notices]
[Pages 72318-72320]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-6751]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52824; File No. SR-CBOE-2005-69]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change and Amendment No. 1 Thereto To Delete Certain
Exchange Rules, or Portions Thereof, Which Have Been Determined by the
Exchange To Be Obsolete or Unnecessary
November 22, 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 1, 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 November 8, 2005, the Exchange filed Amendment No. 1 to the
proposal.\3\ The Exchange filed the proposed rule change, as amended,
as a ``non-controversial'' rule change under Rule 19b-4(f)(6) under the
Act,\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, as amended, from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Form 19b-4 dated November 8, 2005, which replaced the
original filing in its entirety (``Amendment No. 1'').
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CBOE proposes to delete certain rules, or portions thereof,
which have been determined by the Exchange to be obsolete or
unnecessary. The text of the proposed rule change is available on
Exchange'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 CBOE included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed
[[Page 72319]]
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, Proposed Rule Change
1. Purpose
The Exchange proposes to delete the rules, or portions thereof,
that pertain to the former Joint Venture Participation Agreement
(``Agreement'') between CBOE and the Chicago Board of Trade (``CBOT'').
The Exchange represents that the Agreement, among other things,
provided that CBOE would waive certain dues and fees for CBOT Exercise
members who made no trades in CBOE contracts in a given quarter. In
addition, the Agreement waived all membership application fees and
technology fees for CBOT Exercise members. The Exchange represents that
the Agreement terminated on December 29, 1998, and the Exchange has no
intention of initiating this program in the future. On December 10,
1998, CBOE issued Regulatory Circular RG98-140 to its members informing
them that the Agreement would terminate effective December 29, 1998 and
that the Agreement would not be renewed. In addition, the Commission
issued Securities Exchange Act Release No. 40973, which pertained to
the termination of the Agreement and the initiation of fees that would
ultimately be charged to the CBOT Exercise members pursuant to the
termination of the Agreement.\5\ The proposed CBOE rules that pertain
to the obsolete Agreement, or the portions thereof, that are to be
deleted are: CBOE Rule 1.1, Rule 6.7, Rule 6.20, Rule 6.70, Rule 9.1,
Rule 19.1, and Rule 30.12.
---------------------------------------------------------------------------
\5\ Securities Exchange Act Release No. 40973 (January 25,
1999), 64 FR 4915 (February 1, 1999) (SR-CBOE-98-55).
---------------------------------------------------------------------------
Also, the Exchange proposes to delete the rules, or portions
thereof, that pertain to Board Brokers. A Board Broker is an individual
member, a nominee of a member organization or a member organization who
or which is registered with the Exchange for the purposes of (i) acting
as a ``broker's broker'' for specified classes of options, at the post
at which such classes of options are traded, by accepting and
attempting to execute orders placed with him by other members, and (ii)
monitoring the market for such classes of options at the post. The
Exchange represents that it has not used Board Brokers for
approximately 22 years, and does not intend to use them in the future.
The proposed CBOE rules pertaining to Board Brokers, or the portions
thereof, that are to be deleted are: CBOE Rule 6.43, Rule 6.46, Rule
6.47, Rule 6.54, Rule 6.70, Rule 7.1, Rule 7.2, Rule 7.3, Rule 7.4,
Rule 7.5, Rule 7.7, Rule 7.8, Rule 7.9, Rule 7.10, and Rule 7.11.
In addition to the deletions of the above-referenced ``Joint
Venture'' and ``Board Broker'' rules, or portions thereof, the Exchange
proposes to delete each of the following rules, or portions thereof:
CBOE Rule 2.21--This rule allows the Exchange to impose a
charge upon Exchange members measured by their respective net
commissions. The Exchange represents that Exchange members have not
assessed the commissions that such charges are measured by since the
early 1970s, and such commissions will not be assessed by Exchange
members in the future. For this reason, the Exchange has not imposed
and will not impose such charges upon its members, since there is no
commission to base it upon, therefore making this rule obsolete and
unnecessary.
CBOE Rule 2.25 and CBOE Rule 2.30--These rules allow the
Exchange to assess fees for the delayed submission of trade
information. Specifically, these rules allow the Exchange to assess
fees to members who failed to submit trade information for at least 80%
of all of that member's transactions. Currently, over 98% of all trade
information is disseminated within one hour after the time of
execution. The Exchange represents that it no longer assesses such
fees, since 98% of all trade information is disseminated within one
hour after the time of execution, and does not intend to assess them in
the future.
CBOE Rule 14.2, CBOE Rule 14.3, and CBOE Rule 14.5--The
rules in Chapter 14 of the CBOE rulebook were created for the purpose
of charging and collecting commissions. Specifically, CBOE Rule 14.1
made it mandatory for commissions to be charged and collected upon the
execution of all orders, for the accounts of members and non-members,
of securities dealt on CBOE. CBOE Rule 14.1 stated that the commissions
would be no less than the rates established by CBOE and such
commissions shall be ``net and free from any rebate, return, discount
or allowance.'' The Exchange represents that CBOE Rule 14.1 was deleted
from CBOE's rules on May 15, 1975, since such fixed commissions would
no longer be charged and would not be charged in the future.
For this reason, at this time, the Exchange proposes to delete CBOE
Rules 14.2, 14.3, and 14.5, since the Exchange believes that there is
no need for these rules since they pertained specifically to the
commissions discussed in CBOE Rule 14.1 and which are no longer
necessary.
Specifically, CBOE Rule 14.2 involves reciprocal arrangements. The
Exchange states that reciprocal arrangements were agreements that
brokers used with other brokers to permit such brokers to participate
in the commissions that were generated from the execution of orders.
The Exchange represents that reciprocal arrangements have not been used
since the early 1970s. Specifically, CBOE Rule 14.2(a) states that any
such arrangement had to be reported to CBOE and subject to CBOE's
approval. CBOE Rule 14.2(b) states that no member, in consideration of
the receipt of business, shall make any payments, or give up any work
or give up any part of any commission to which such member is or will
be entitled. Since such arrangements as described in CBOE Rule 14.2(b)
were never permitted, the Exchange would not approve such arrangements
pursuant to CBOE Rule 14.2(a), if and when an Exchange member reported
such an arrangement to the Exchange. Further, since the commissions as
discussed in CBOE Rule 14.1 are no longer charged, and have not been
charged since the early 1970s, the Exchange believes that there is no
need to have a rule pertaining to reciprocal arrangements, since the
commissions that the arrangements were based on are no longer charged
and will not be charged in the future. Specifically, CBOE Rule 14.2
prohibited those arrangements that were used to circumvent the
commissions referred to in CBOE Rule 14.1, and therefore, since CBOE
Rule 14.1 was deleted on May 15, 1975, there is no need for CBOE Rule
14.2.
CBOE Rule 14.3 deals with commissions charged on non-member orders.
This rule specifically sets forth that the commissions to be charged on
non-member orders shall be mutually agreed upon. Again, the Exchange
represents that this rule is obsolete, since the commissions that this
rule pertains to are no longer charged and have not been charged since
the early 1970s. Therefore, the Exchange believes that there is no need
for this rule.
CBOE Rule 14.5 deals with intra-member rates for floor brokerage.
This rule states that for those orders that are executed when a
principal is given up, the commission shall be mutually
[[Page 72320]]
agreed upon. As with CBOE Rule 14.3, the Exchange believes that this
rule is obsolete, since the commissions that this rule pertains to have
not been charged since the early 1970s and the Exchange does not plan
to charge such commissions in the future. For this reason, the Exchange
believes that there is no need for this rule.
CBOE Rule 15.4--This rule pertains to a monthly commission
report that the Exchange required certain individual members and member
organizations to submit to the Treasurer of the Exchange. Specifically,
this rule required certain members to disclose commissions on business
done on the Exchange for each month. The Exchange believes that this
rule is obsolete, since such a report is no longer necessary given that
such commissions are no longer charged and collected.
2. Statutory Basis
By deleting certain Exchange rules, or portions thereof, which have
been determined to be obsolete or unnecessary, the Exchange believes
that the proposed rule change is consistent with Section 6(b) of the
Act \6\ in general, and furthers the objectives of Section 6(b)(5) of
the Act \7\ in particular, 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 national market system, and, in
general, protect investors and the public interest.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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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 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
Written comments on the proposed rule change were neither solicited
nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change, as amended: (i) Does not
significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
and (iii) by its terms, does not become operative for 30 days after the
date of filing, the proposed rule change has become effective pursuant
to Section 19(b)(3)(A) of the Act \8\ and subparagraph (f)(6) of Rule
19b-4 thereunder.\9\ As required under Rule 19b-4(f)(6)(iii),\10\ 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.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 17 CFR 240.19b-4(f)(6)(iii).
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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 the furtherance of the purposes of the Act.\11\
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\11\ The effective date of Amendment No. 1 is November 8, 2005.
For purposes of calculating the 60-day period within which the
Commission may summarily abrogate the proposal, the Commission
considers the period to commence on November 8, 2005, the date on
which the Exchange submitted Amendment No. 1.
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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-2005-69 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9309.
All submissions should refer to File Number SR-CBOE-2005-69. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Section. 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-2005-69 and should be submitted on or before
December 23, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. E5-6751 Filed 12-1-05; 8:45 am]
BILLING CODE 8010-01-P
