Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change Relating to the Exposure Period for Crossing Orders in the Hybrid Trading System, 73495-73497 [E5-7193]

Download as PDF Federal Register / Vol. 70, No. 237 / Monday, December 12, 2005 / Notices Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve such proposed rule change, or (B) Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change 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–2005–83 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 20549–9303. All submissions should refer to File Number SR–CBOE–2005–83. 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 VerDate Aug<31>2005 17:51 Dec 09, 2005 Jkt 208001 you wish to make available publicly. All submissions should refer to File Number SR–CBOE–2005–83 and should be submitted on or before January 3, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Jonathan G. Katz, Secretary. [FR Doc. E5–7192 Filed 12–9–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52889; File No. SR–CBOE– 2005–94] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change Relating to the Exposure Period for Crossing Orders in the Hybrid Trading System December 5, 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 November 4, 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 and II below, which Items have been prepared by the CBOE. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and is approving 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 decrease the exposure period for crossing orders in its Hybrid Trading System (‘‘Hybrid’’) from 30 seconds to 10 seconds. The text of the proposed rule change is provided below (additions are italicized; deletions are [bracketed]). Chicago Board Options Exchange, Incorporated Rules * * * * * 13 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 73495 Rule 6.45A.—Priority and Allocation of Equity Option Trades on the CBOE Hybrid System (a)–(e) No change. * * * Interpretations and Policies: .01 Principal Transactions: Order entry firms may not execute as principal against orders they represent as agent unless: (i) Agency orders are first exposed on the Hybrid System for at least [thirty (30)]ten (10) seconds, (ii) the order entry firm has been bidding or offering for at least [thirty (30)]ten (10) seconds prior to receiving an agency order that is executable against such bid or offer, or (iii) the order entry firm proceeds in accordance with the crossing rules contained in Rule 6.74. .02 Solicitation Orders: Order entry firms must expose orders they represent as agent for at least [thirty (30)]ten (10) seconds before such orders may be executed electronically via the electronic execution mechanism of the Hybrid System, in whole or in part, against orders solicited from members and non-member broker-dealers to transact with such orders. * * * * * Rule 6.45B—Priority and Allocation of Trades in Index Options and Options on ETFs on the CBOE Hybrid System (a)–(d) No change. * * * Interpretations and Policies: .01 Principal Transactions: Order entry firms may not execute as principal against orders they represent as agent unless: (i) Agency orders are first exposed on the Hybrid System for at least [thirty (30)]ten (10) seconds, (ii) the order entry firm has been bidding or offering for at least [thirty (30)]ten (10) seconds prior to receiving an agency order that is executable against such bid or offer, or (iii) the order entry firm proceeds in accordance with the crossing rules contained in Rule 6.74. .02 Solicitation Orders. Order entry firms must expose orders they represent as agent for at least [thirty (30)]ten (10) seconds before such orders may be executed electronically via the electronic execution mechanism of the Hybrid System, in whole or in part, against orders solicited from members and non-member broker-dealers to transact with such orders. * * * * * 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 E:\FR\FM\12DEN1.SGM 12DEN1 73496 Federal Register / Vol. 70, No. 237 / Monday, December 12, 2005 / Notices comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item III below. The CBOE has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose CBOE rules provide that an order entry firm may not execute an order it represents as agent with a facilitation or solicited order (referred to herein as ‘‘crossing orders’’) using Hybrid unless it first complies with the 30-second exposure requirement. Specifically, order entry firms may not execute a facilitation cross unless (i) the agency order is first exposed on Hybrid for at least 30 seconds, (ii) the order entry firm has been bidding or offering for at least 30 seconds prior to receiving the agency order that is executable against such bid or offer, or (iii) the order entry firm proceeds in accordance with the floorbased open outcry crossing rules contained in CBOE Rule 6.74, ‘‘Crossing’’ Orders. Similarly, order entry firms may not execute a solicitation cross unless the agency order is first exposed on Hybrid for at least 30 seconds. During this 30 second exposure period for crossing orders, other members may enter orders to trade against the exposed order. The Exchange proposes to shorten the duration of the exposure period contained in the rules governing such transactions, as set forth in Interpretations and Policies .01 and .02 to CBOE Rules 6.45A, Priority and Allocation of Equity Option Trades on the CBOE Hybrid System, and 6.45B, Priority and Allocation of Trades in Index Options and Options on ETFs on the CBOE Hybrid System, from 30 seconds to 10 seconds. This shortened exposure period is fully consistent with the electronic nature of Hybrid. Market participants on the CBOE have implemented systems that monitor any updates to the CBOE market including any changes resulting from orders being entered into Hybrid and can automatically respond based on pre-set parameters. Thus, an exposure period of 10 seconds will permit exposure of orders on the CBOE in a manner consistent with the Exchange’s electronic market. By reducing the exposure time from 30 seconds to 10 seconds, the CBOE believes that members will be able to provide liquidity to their customers’ VerDate Aug<31>2005 17:51 Dec 09, 2005 Jkt 208001 orders on a timelier basis, thus providing investors with more speedy executions. Timely and accurate executions are consistent with the principles under which Hybrid was developed. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with section 6(b) of the Act 3 in general and furthers the objectives of section 6(b)(5) of the Act 4 in particular in that it is designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, 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. In particular, the proposed rule change will provide investors with more timely execution of their options orders, while ensuring that there is an adequate exposure of all crossing orders in the CBOE marketplace. 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 No written comments were solicited or received with respect to the proposed rule change. III. 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–2005–94 on the subject line. Paper Comments • Send paper comments in triplicate to Jonathan G. Katz, Secretary, 3 15 4 15 PO 00000 U.S.C. 78f(b). U.S.C. 78f(b)(5). Frm 00067 Fmt 4703 Sfmt 4703 Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–9303. All submissions should refer to File Number SR–CBOE–2005–94. 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–2005–94 and should be submitted on or before January 3, 2006. IV. Commission’s Findings and Order Granting Accelerated Approval of the Proposed Rule Change After careful consideration, the Commission finds that the proposed rule change is consistent with the requirements of section 6(b) of the Act 5 and the rules and regulations thereunder applicable to a national securities exchange,6 and in particular with section 6(b)(5) of the Act.7 The Commission believes that, in the electronic environment of Hybrid, reducing the exposure period to 10 seconds could facilitate the prompt execution of orders, while providing participants in Hybrid with an adequate opportunity to compete for exposed bids and offers. The Exchange has requested accelerated approval of the proposed rule change. The Commission finds good cause, pursuant to section 19(b)(2) 5 15 U.S.C. 78f(b). approving this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 7 15 U.S.C. 78f(b)(5). 6 In E:\FR\FM\12DEN1.SGM 12DEN1 Federal Register / Vol. 70, No. 237 / Monday, December 12, 2005 / Notices of the Act,8 for approving the proposed rule change prior to the thirtieth day after the date of publication of the notice of filing in the Federal Register. The Commission believes that accelerated approval of the proposed rule change will allow the Exchange to remain competitive with other exchanges that permit the crossing of orders after a 10-second exposure period.9 V. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Act,10 that the proposed rule change (SR–CBOE–2005– 94) is hereby approved on an accelerated basis. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Jonathan G. Katz, Secretary. [FR Doc. E5–7193 Filed 12–9–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52894; File No. SR–ISE– 2005–45] Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change and Amendment No. 1 Thereto Relating to the Elimination of Position and Exercise Limits on NDX Options December 5, 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 21, 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 and II below, which Items have been prepared by the ISE. On November 14, 2005, the ISE filed Amendment No. 1 to the proposed rule change.3 The Commission is publishing this notice to solicit comments on the proposed rule change, Broad-based underlying index 100,000 contracts ............................................ 45,000 contracts .............................................. 50,000 contracts .............................................. 500,000 contracts ............................................ None [75,000 contracts] ................................... 750,000 contracts ............................................ as amended, from interested persons. In addition, the Commission is granting accelerated approval of the proposed rule change, as amended. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The ISE proposes to amend its rules to eliminate position and exercise limits for options on the Nasdaq 100 Index (‘‘NDX’’). The text of the proposed rule change, as amended, is below. Proposed new language is in italics; proposed deletions are in [brackets]. * * * * * Rule 2004. Position Limits for BroadBased Index Options (a) Rule 412 generally shall govern position limits for broad-based index options, as modified by this Rule 2004. There may be no position limit for certain Specified (as provided in Rule 2000) broad-based index options contracts. All other broad-based index options contracts shall be subject to a contract limitation fixed by the Exchange, which shall not be larger than the limits provided in the chart below. Standard limit (on the same side of the market) S&P SmallCap 600 Index .................................. S&P MidCap 400 Index ...................................... Reduced Value S&P 1000 Index ....................... Micro S&P 1000 Index ....................................... Nasdaq 100 Index .............................................. Mini Nasdaq 100 Index ...................................... Remainder of the Chart—No Change. * * * * (b)–(d) No Change. * * * * * * (a) Broad-based Index Hedge Exemption. The broad-based index hedge exemption is in addition to the other exemptions available under Exchange Rules, interpretations and 10 15 9 See, 11 17 17:51 Dec 09, 2005 Jkt 208001 than than than than 60,000 near-term. 25,000 near-term. 30,000 near-term. 300,000 near-term. policies. The following procedures and criteria must be satisfied to qualify for a broad-based index hedge exemption: (1)–(4) No Change. (5) Positions in broad-based index options that are traded on the Exchange are exempt from the standard limits to the extent specified below. 1,500,000 contracts. [150,000 contracts]. 75,000. on the same side of the market in excess of 100,000 contracts in NDX [a Specified (as provided in Rule 2000) number of contracts] for its own account 8 15 VerDate Aug<31>2005 No more No more No more No more None. None. Broad-based index hedge exemption (is in addition to standard limit) Nasdaq 100 Stock Index (1⁄10th value) (MNX) ......................................... [Nasdaq 100 Stock Index (full value) (NDX)] ........................................... Other broad-based indexes ...................................................................... U.S.C. 78s(b)(2). e.g., Securities Exchange Act Release No. 52814 (November 21, 2005), 70 FR 71591 (November 29, 2005) (SR–PCX–2005–85). Restrictions Rule 2006. Exemptions from Position Limits Broad-based index option type (6)–(12) No Change. (13) Each member (other than Exchange market-makers) that maintains a broad-based index option[s] position 73497 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 or for the account of a customer, shall report information as to whether the positions are hedged and provide documentation as to how such contracts 3 Amendment No. 1, which replaced and superseded the original filing in its entirety, added certain reporting requirements and margin provisions and expanded on the purpose of the proposed rule change. E:\FR\FM\12DEN1.SGM 12DEN1

Agencies

[Federal Register Volume 70, Number 237 (Monday, December 12, 2005)]
[Notices]
[Pages 73495-73497]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-7193]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52889; File No. SR-CBOE-2005-94]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Order Granting Accelerated Approval 
of Proposed Rule Change Relating to the Exposure Period for Crossing 
Orders in the Hybrid Trading System

December 5, 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 November 4, 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 and II below, which Items have been prepared by the CBOE. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons and is approving the 
proposal on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    CBOE proposes to decrease the exposure period for crossing orders 
in its Hybrid Trading System (``Hybrid'') from 30 seconds to 10 
seconds. The text of the proposed rule change is provided below 
(additions are italicized; deletions are [bracketed]).

Chicago Board Options Exchange, Incorporated

Rules
* * * * *
Rule 6.45A.--Priority and Allocation of Equity Option Trades on the 
CBOE Hybrid System
    (a)-(e) No change.
    * * * Interpretations and Policies:
    .01 Principal Transactions: Order entry firms may not execute as 
principal against orders they represent as agent unless: (i) Agency 
orders are first exposed on the Hybrid System for at least [thirty 
(30)]ten (10) seconds, (ii) the order entry firm has been bidding or 
offering for at least [thirty (30)]ten (10) seconds prior to receiving 
an agency order that is executable against such bid or offer, or (iii) 
the order entry firm proceeds in accordance with the crossing rules 
contained in Rule 6.74.
    .02 Solicitation Orders: Order entry firms must expose orders they 
represent as agent for at least [thirty (30)]ten (10) seconds before 
such orders may be executed electronically via the electronic execution 
mechanism of the Hybrid System, in whole or in part, against orders 
solicited from members and non-member broker-dealers to transact with 
such orders.
* * * * *
Rule 6.45B--Priority and Allocation of Trades in Index Options and 
Options on ETFs on the CBOE Hybrid System
    (a)-(d) No change.
    * * * Interpretations and Policies:
    .01 Principal Transactions: Order entry firms may not execute as 
principal against orders they represent as agent unless: (i) Agency 
orders are first exposed on the Hybrid System for at least [thirty 
(30)]ten (10) seconds, (ii) the order entry firm has been bidding or 
offering for at least [thirty (30)]ten (10) seconds prior to receiving 
an agency order that is executable against such bid or offer, or (iii) 
the order entry firm proceeds in accordance with the crossing rules 
contained in Rule 6.74.
    .02 Solicitation Orders. Order entry firms must expose orders they 
represent as agent for at least [thirty (30)]ten (10) seconds before 
such orders may be executed electronically via the electronic execution 
mechanism of the Hybrid System, in whole or in part, against orders 
solicited from members and non-member broker-dealers to transact with 
such orders.
* * * * *

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

[[Page 73496]]

comments it received on the proposed rule change. The text of these 
statements may be examined at the places specified in Item III below. 
The CBOE has prepared summaries, set forth in sections A, B, and C 
below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    CBOE rules provide that an order entry firm may not execute an 
order it represents as agent with a facilitation or solicited order 
(referred to herein as ``crossing orders'') using Hybrid unless it 
first complies with the 30-second exposure requirement. Specifically, 
order entry firms may not execute a facilitation cross unless (i) the 
agency order is first exposed on Hybrid for at least 30 seconds, (ii) 
the order entry firm has been bidding or offering for at least 30 
seconds prior to receiving the agency order that is executable against 
such bid or offer, or (iii) the order entry firm proceeds in accordance 
with the floor-based open outcry crossing rules contained in CBOE Rule 
6.74, ``Crossing'' Orders. Similarly, order entry firms may not execute 
a solicitation cross unless the agency order is first exposed on Hybrid 
for at least 30 seconds. During this 30 second exposure period for 
crossing orders, other members may enter orders to trade against the 
exposed order.
    The Exchange proposes to shorten the duration of the exposure 
period contained in the rules governing such transactions, as set forth 
in Interpretations and Policies .01 and .02 to CBOE Rules 6.45A, 
Priority and Allocation of Equity Option Trades on the CBOE Hybrid 
System, and 6.45B, Priority and Allocation of Trades in Index Options 
and Options on ETFs on the CBOE Hybrid System, from 30 seconds to 10 
seconds. This shortened exposure period is fully consistent with the 
electronic nature of Hybrid. Market participants on the CBOE have 
implemented systems that monitor any updates to the CBOE market 
including any changes resulting from orders being entered into Hybrid 
and can automatically respond based on pre-set parameters. Thus, an 
exposure period of 10 seconds will permit exposure of orders on the 
CBOE in a manner consistent with the Exchange's electronic market.
    By reducing the exposure time from 30 seconds to 10 seconds, the 
CBOE believes that members will be able to provide liquidity to their 
customers' orders on a timelier basis, thus providing investors with 
more speedy executions. Timely and accurate executions are consistent 
with the principles under which Hybrid was developed.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
section 6(b) of the Act \3\ in general and furthers the objectives of 
section 6(b)(5) of the Act \4\ in particular in that it is designed to 
foster cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, 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. 
In particular, the proposed rule change will provide investors with 
more timely execution of their options orders, while ensuring that 
there is an adequate exposure of all crossing orders in the CBOE 
marketplace.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f(b).
    \4\ 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

    No written comments were solicited or received with respect to the 
proposed rule change.

III. 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-2005-94 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 20549-9303.
    All submissions should refer to File Number SR-CBOE-2005-94. 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-2005-94 and should be submitted on or before 
January 3, 2006.

IV. Commission's Findings and Order Granting Accelerated Approval of 
the Proposed Rule Change

    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of section 6(b) of the 
Act \5\ and the rules and regulations thereunder applicable to a 
national securities exchange,\6\ and in particular with section 6(b)(5) 
of the Act.\7\ The Commission believes that, in the electronic 
environment of Hybrid, reducing the exposure period to 10 seconds could 
facilitate the prompt execution of orders, while providing participants 
in Hybrid with an adequate opportunity to compete for exposed bids and 
offers.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ In approving this proposal, the Commission has considered 
the proposed rule's impact on efficiency, competition, and capital 
formation. See 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange has requested accelerated approval of the proposed 
rule change. The Commission finds good cause, pursuant to section 
19(b)(2)

[[Page 73497]]

of the Act,\8\ for approving the proposed rule change prior to the 
thirtieth day after the date of publication of the notice of filing in 
the Federal Register. The Commission believes that accelerated approval 
of the proposed rule change will allow the Exchange to remain 
competitive with other exchanges that permit the crossing of orders 
after a 10-second exposure period.\9\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(2).
    \9\ See, e.g., Securities Exchange Act Release No. 52814 
(November 21, 2005), 70 FR 71591 (November 29, 2005) (SR-PCX-2005-
85).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\10\ that the proposed rule change (SR-CBOE-2005-94) is hereby 
approved on an accelerated basis.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jonathan G. Katz,
Secretary.
[FR Doc. E5-7193 Filed 12-9-05; 8:45 am]
BILLING CODE 8010-01-P
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