Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Revisions to the Series 4 Examination Program, 74068-74070 [E5-7338]
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74068
Federal Register / Vol. 70, No. 239 / Wednesday, December 14, 2005 / Notices
CBOE understands that the other
SROs also will file with the Commission
similar revisions to the Series 9/10
examination program.
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)(1) 8 of the Act in particular, in that
it is designed to enforce compliance by
Exchange members and persons
associated with its members with the
rules of the Exchange. The Exchange
also believes the proposed rule change
furthers the objectives of Section
6(c)(3) 9 of the Act, which authorizes
CBOE to prescribe standards of training,
experience and competence for persons
associated with CBOE members.
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–2005–98 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52913; File No. SR–CBOE–
2005–97]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Revisions to
the Series 4 Examination Program
December 7, 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
15, 2005, the Pacific Exchange, Inc.
Paper Comments
(‘‘CBOE’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
• Send paper comments in triplicate
(‘‘SEC’’ or ‘‘Commission’’) the proposed
to Jonathan G. Katz, Secretary,
rule change as described in Items I, II,
Securities and Exchange Commission,
B. Self-Regulatory Organization’s
and III below, which Items have been
100 F Street, NE., Washington, DC
Statement on Burden on Competition
prepared by CBOE. CBOE has
20549–9303.
All submissions should refer to File
CBOE does not believe that the
designated the proposed rule change as
Number SR–CBOE–2005–98. This file
proposed rule change will impose any
constituting a stated policy, practice, or
number should be included on the
burden on competition that is not
interpretation with respect to the
subject line if e-mail is used. To help the meaning, administration, or
necessary or appropriate in furtherance
Commission process and review your
of purposes of the Act.
enforcement of an existing rule of the
comments more efficiently, please use
self-regulatory organization pursuant to
C. Self-Regulatory Organization’s
only one method. The Commission will Section 19(b)(3)(A)(i) of the Act 3 and
Statement on Comments on the
post all comments on the Commission’s Rule 19b–4(f)(1) thereunder,4 which
Proposed Rule Change Received From
Internet Web site (https://www.sec.gov/
renders the proposal effective upon
Members, Participants or Others
rules/sro.shtml). Copies of the
filing with the Commission. The
No written comments were solicited
submission, all subsequent
Commission is publishing this notice to
or received with respect to the proposed amendments, all written statements
solicit comments on the proposed rule
rule change.
with respect to the proposed rule
change from interested persons.
change that are filed with the
III. Date of Effectiveness of the
I. Self-Regulatory Organization’s
Commission, and all written
Proposed Rule Change and Timing for
Statement of the Terms of Substance of
communications relating to the
Commission Action
the Proposed Rule Change
proposed rule change between the
The proposed rule change has become Commission and any person, other than
CBOE is filing revisions to the study
effective pursuant to Section
outline and selection specifications for
those that may be withheld from the
19(b)(3)(A)(i) of the Act 10 and Rule 19b– public in accordance with the
the Limited Principal—Registered
4(f)(1) thereunder,11 in that the
Options (Series 4) examination program.
provisions of 5 U.S.C. 552, will be
proposed rule change constitutes a
The proposed revisions update the
available for inspection and copying in
stated policy, practice, or interpretation the Commission’s Public Reference
material to reflect changes to the laws,
with respect to the meaning,
Room. Copies of such filing also will be rules, and regulations covered by the
administration, or enforcement of an
examination, as well as modify the
available for inspection and copying at
existing rule of the self-regulatory
content of the examination program to
the principal office of the CBOE. All
organization. CBOE will announce the
track more closely the functional
comments received will be posted
implementation date in a Regulatory
workflow of a Series 4 limited principal.
without change; the Commission does
Circular to be published no later than 60 not edit personal identifying
CBOE is not proposing any textual
days after SEC Notice of this filing.
changes to the Constitution or Rules of
information from submissions. You
At any time within 60 days of the
CBOE.
should submit only information that
The revised study outline is attached
filing of the proposed rule change, the
you wish to make available publicly. All
as Exhibit 3a. However, CBOE has
Commission may summarily abrogate
submissions should refer to File
omitted the Series 4 selection
such rule change if it appears to the
Number SR–CBOE–2005–98 submitted
specifications from this filing and has
Commission that such action is
on or before January 4, 2006.
submitted the specifications under
necessary or appropriate in the public
For the Commission, by the Division of
separate cover to the Commission with
interest, for the protection of investors,
Market Regulation, pursuant to delegated
a request for confidential treatment
or otherwise in furtherance of the
authority.12
pursuant to the Commission’s
purposes of the Act.
Jonathan G. Katz,
confidential treatment procedures under
Secretary.
[FR Doc. E5–7337 Filed 12–13–05; 8:45 am]
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(1).
9 15 U.S.C. 78f(c)(3).
10 15 U.S.C. 78s(b)(3)(A)(i).
11 17 CFR 240.19b–4(f)(1).
8 15
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BILLING CODE 8010–01–P
12 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(i).
4 17 CFR 240.19b–4(f)(1).
2 17
CFR 200.30–3(a)(12).
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14DEN1
Federal Register / Vol. 70, No. 239 / Wednesday, December 14, 2005 / Notices
the Freedom of Information Act.5 The
text of the proposed rule change is
available on the Exchange’s Web site
(https://www.cboe.com), at the
Exchange’s Office of the Secretary, and
at the Commission.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
CBOE 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. 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 Rule 9.2 states that no member
organization shall be approved to
transact options business with the
public until those persons associated
with it who are designated as Options
Principals have been approved by and
registered with the Exchange. CBOE
Rule 9.2 further requires successful
completion of an examination
prescribed by the Exchange in order to
qualify for registration as an Options
Principal. The Series 4 examination, an
industry-wide examination, has been
designed for this purpose, and tests a
candidate’s knowledge of options
trading generally, the industry rules
applicable to trading of option contracts,
and the rules of registered clearing
agencies for options. The Series 4
examination covers, among other things,
equity options, foreign currency
options, index options, and options on
government and mortgage-backed
securities.
The Series 4 examination program is
shared by CBOE and the following
SROs: the American Stock Exchange
LLC, the National Association of
Securities Dealers, Inc., the New York
Stock Exchange, Inc., the Pacific
Exchange, Inc., and the Philadelphia
Stock Exchange, Inc.
A committee of industry
representatives, together with the staff
of CBOE and the other SROs, recently
undertook a periodic review of the
Series 4 examination program. As a
result of this review and as part of an
ongoing effort to align the examination
more closely to the supervisory duties of
a Series 4 limited principal, CBOE is
proposing to modify the content of the
examination to track the functional
workflow of a Series 4 limited principal.
More specifically, CBOE is proposing to
revise the main section headings and
the number of questions on each section
of the Series 4 study outline as follows:
Options Investment Strategies,
decreased from 35 to 34 questions;
Supervision of Sales Activities and
Trading Practices, increased from 71 to
75 questions; and Supervision of
Employees, Business Conduct, and
Recordkeeping and Reporting
Requirements, decreased from 19 to 16
questions. CBOE is further proposing
revisions to the study outline to reflect
the SEC short sale requirements. The
revised examination continues to cover
the areas of knowledge required to
supervise options activities.
CBOE is proposing these changes to
the entire content of the Series 4
examination, including the selection
specifications and question bank. The
number of questions on the Series 4
examination will remain at 125, and
candidates will continue to have three
hours to complete the exam. Also, each
question will continue to count one
point, and each candidate must
correctly answer 70 percent of the
questions to receive a passing grade.
CBOE understands that the other
SROs also will file with the Commission
similar revisions to the Series 4
examination program.
2. Statutory Basis
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)(1) 7 of the Act in particular, in that
it is designed to enforce compliance by
Exchange members and persons
associated with its members with the
rules of the Exchange. The Exchange
also believes the proposed rule change
furthers the objectives of Section
6(c)(3) 8 of the Act, which authorizes
CBOE to prescribe standards of training,
experience and competence for persons
associated with CBOE members.
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 purposes of the Act.
U.S.C. 78f(b).
U.S.C. 78(b)(1).
8 15 U.S.C. 78(c)(3).
5 17
C.F.R. 200.83.
VerDate Aug<31>2005
15:29 Dec 13, 2005
Jkt 208001
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
The proposed rule change has become
effective pursuant to Section
19(b)(3)(A)(i) of the Act 9 and Rule 19b–
4(f)(1) thereunder,10 in that the
proposed rule change constitutes a
stated policy, practice, or interpretation
with respect to the meaning,
administration, or enforcement of an
existing rule of the self-regulatory
organization. CBOE will announce the
implementation date in a Regulatory
Circular to be published no later than 60
days after SEC Notice of this filing.
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–2005–97 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–2005–97. 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
6 15
7 15
PO 00000
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9 15
U.S.C. 78f(b)(3)(A)(i).
CFR 240.19b–(f)(l).
10 17
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74069
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14DEN1
74070
Federal Register / Vol. 70, No. 239 / Wednesday, December 14, 2005 / Notices
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–2005–97 and should
be submitted on or before January 4,
2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Jonathan G. Katz,
Secretary.
[FR Doc. E5–7338 Filed 12–13–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52922; File Nos. SR–DTC–
2005–16, SR–FICC–2005–19, and SR–
NSCC–2005–14]
Self-Regulatory Organizations; The
Depository Trust Company, Fixed
Income Clearing Corporation, and
National Securities Clearing
Corporation; Order Approving
Proposed Rule Changes to Require
Members to Purchase Shares of the
Common Stock of The Depository
Trust & Clearing Corporation
On October 4, 2005, The Depository
Trust Company (‘‘DTC’’), the Fixed
Income Clearing Corporation (‘‘FICC’’),
and the National Securities Clearing
Corporation filed with the Securities
and Exchange Commission
(‘‘Commission’’) proposed rule changes
SR–DTC–2005–16, SR–FICC–2005–19,
and SR–NSCC–2005–14 pursuant to
section 19(b)(1) of the Securities
VerDate Aug<31>2005
15:29 Dec 13, 2005
Jkt 208001
U.S.C. 78s(b)(1).
Exchange Act Release Nos. 52665
(October 25, 2005), 70 FR 62357 [SR–DTC–2005–
16]; 52663 (October 25, 2005), 70 FR 62359 [SR–
FICC–2005–19]; and 52664 (October 25, 2005), 70
FR 62364 [SR–NSCC–2005–14].
3 Letter from Stewart A. Levin, Ph.D., Geophysics
Research Fellow, Landmark Graphics Corp. (Oct.
29, 2005).
4 Letter from Kelly S. McEntire, Retired State of
Utah Administrator, (Dec. 6, 2005).
5 Pursuant to the amendments to the Shareholders
Agreement, a Mandatory Purchaser Participant that
is a Participant in more than one clearing agency
will be required to purchase DTCC common shares
based upon its relative use of the services of all
clearing agencies of which it is a Participant. For
DTC, a Mandatory Purchaser Participant includes
all participants of DTC other than Limited
Participants. For FICC, this term includes Netting
Members of FICC’s Government Securities Division.
For NSCC, this term includes all Members other
than Mutual Fund/Insurance Services Members.
2 Securities
I. Introduction
CFR 200.30–3(a)(12).
II. Description
The Depository Trust & Clearing
Corporation (‘‘DTCC’’) is a holding
company parent of DTC, FICC, and
NSCC. Pursuant to DTCC’s current
Shareholders Agreement (‘‘Shareholders
Agreement’’), substantially all members
and participants of DTC, FICC, and
NSCC (collectively ‘‘Participants’’) are
entitled but are not required to purchase
DTCC common shares. Participants are
allocated an entitlement to purchase
DTCC common shares on the basis of
their relative use of the services of DTC,
FICC, and NSCC. As of the last periodic
allocation of share entitlements in 2003,
approximately 1,100 Participants had a
right to purchase DTCC common shares;
however, only 190 Participants
currently own any DTCC common
shares and of these only 86 own DTCC
common shares up to the full amounts
of their share entitlements.
DTCC has obtained the consent of its
common shareholders to amend the
Shareholders Agreement pursuant to
which Participants of DTC, FICC, and
NSCC that make full use of the services
of one or more of these clearing agency
subsidiaries of DTCC would be required
to purchase DTCC common shares
(‘‘Mandatory Purchaser Participants’’) 5
in accordance with the terms of the
amended Shareholders Agreement
while preserving the right but not the
obligation of other Participants that
make only limited use of the services of
one or more of the clearing agencies to
1 15
December 7, 2005.
11 17
Exchange Act of 1934 (‘‘Act’’).1 Notices
of the proposals were published in the
Federal Register on October 31, 2005.2
The Commission received one comment
letter in response to the proposed rule
change filed by DTC 3 and one comment
letter in response to the proposed rule
change filed by FICC.4 For the reasons
discussed below, the Commission is
approving the proposed rule change.
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purchase DTCC common shares
(‘‘Voluntary Purchaser Participants’’).6
Holders of DTCC common shares are
entitled to elect all of the directors of
DTCC other than two directors that
DTCC preferred shareholders are
entitled to elect.7 DTCC common
shareholders are entitled to vote on all
other matters submitted to a vote of
DTCC shareholders, and each DTCC
common shareholder is entitled to one
vote per DTCC common share. DTCC
common shareholders are entitled to
cumulative voting in the election of
directors. In addition, DTCC common
shareholders are entitled to receive out
of the assets of DTCC, when and if
declared by the Board of Directors of
DTCC, dividends payable in cash or
stock or otherwise. However, since DTC,
FICC, and NSCC provide their services
to their Participants on a cost-basis with
revenues in excess of expenses and
necessary reserves rebated or provide
their services on a discounted basis, as
a matter of policy and practice DTCC
does not pay any dividends on DTCC
common shares. The amendments to the
Shareholders Agreement will have no
effect on these rights of DTCC common
shareholders and preferred
shareholders.
Pursuant to certain covenants in the
Shareholders Agreement, a person
elected as a director of DTCC also serves
as a director of DTC, FICC, and NSCC.
The amendments to the Shareholders
Agreement will have no effect on these
covenants.
The system for allocating entitlements
to purchase shares in the Shareholders
Agreement was first implemented by
DTC with respect to DTC common
shares in 1973. At that time, the bank
users of DTC’s services purchased their
DTC common shares, but for logistical
and other reasons the NYSE, the NASD,
and the American Stock Exchange
(‘‘AMEX’’) (collectively ‘‘Self-Regulatory
6 The DTCC Shareholders Agreement marked to
show the proposed amendments is attached to the
proposed rule change as Exhibit 3 and is available
on DTC’s Web site at https://www.dtc.org/impNtc/
mor/, FICC’s Web site at https://
www.ficc.com/gov/gov.docs.jsp?NS-query=, and
NSCC’s Web site at www.nscc.com/legal.
7 In connection with the 1999 integration of DTC
and NSCC and formation of DTCC, the New York
Stock Exchange (‘‘NYSE’’) and the National
Association of Securities Dealers (‘‘NASD’’), the
then coowners of NSCC, each received 10,000
DTCC preferred shares in exchange for their NSCC
common stock. DTCC preferred shareholders have
no right to vote on any matters submitted to a vote
of DTCC shareholders except that each of the two
DTCC preferred shareholders are entitled to elect
one director. DTCC preferred shareholders have no
right to receive any dividends. In the event of any
liquidation, dissolution or winding up of the affairs
of DTCC, DTCC preferred shareholders are entitled
to a liquidation preference of $300 per share of
DTCC preferred stock.
E:\FR\FM\14DEN1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 239 (Wednesday, December 14, 2005)]
[Notices]
[Pages 74068-74070]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-7338]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52913; File No. SR-CBOE-2005-97]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Revisions to the Series 4 Examination Program
December 7, 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 15, 2005, the Pacific Exchange, Inc. (``CBOE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by CBOE.
CBOE has designated the proposed rule change as constituting a stated
policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule of the self-
regulatory organization pursuant to Section 19(b)(3)(A)(i) of the Act
\3\ and Rule 19b-4(f)(1) 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)(i).
\4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE is filing revisions to the study outline and selection
specifications for the Limited Principal--Registered Options (Series 4)
examination program. The proposed revisions update the material to
reflect changes to the laws, rules, and regulations covered by the
examination, as well as modify the content of the examination program
to track more closely the functional workflow of a Series 4 limited
principal. CBOE is not proposing any textual changes to the
Constitution or Rules of CBOE.
The revised study outline is attached as Exhibit 3a. However, CBOE
has omitted the Series 4 selection specifications from this filing and
has submitted the specifications under separate cover to the Commission
with a request for confidential treatment pursuant to the Commission's
confidential treatment procedures under
[[Page 74069]]
the Freedom of Information Act.\5\ The text of the proposed rule change
is available on the Exchange's Web site (https://www.cboe.com), at the
Exchange's Office of the Secretary, and at the Commission.
---------------------------------------------------------------------------
\5\ 17 C.F.R. 200.83.
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, CBOE 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. 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 Rule 9.2 states that no member organization shall be approved
to transact options business with the public until those persons
associated with it who are designated as Options Principals have been
approved by and registered with the Exchange. CBOE Rule 9.2 further
requires successful completion of an examination prescribed by the
Exchange in order to qualify for registration as an Options Principal.
The Series 4 examination, an industry-wide examination, has been
designed for this purpose, and tests a candidate's knowledge of options
trading generally, the industry rules applicable to trading of option
contracts, and the rules of registered clearing agencies for options.
The Series 4 examination covers, among other things, equity options,
foreign currency options, index options, and options on government and
mortgage-backed securities.
The Series 4 examination program is shared by CBOE and the
following SROs: the American Stock Exchange LLC, the National
Association of Securities Dealers, Inc., the New York Stock Exchange,
Inc., the Pacific Exchange, Inc., and the Philadelphia Stock Exchange,
Inc.
A committee of industry representatives, together with the staff of
CBOE and the other SROs, recently undertook a periodic review of the
Series 4 examination program. As a result of this review and as part of
an ongoing effort to align the examination more closely to the
supervisory duties of a Series 4 limited principal, CBOE is proposing
to modify the content of the examination to track the functional
workflow of a Series 4 limited principal. More specifically, CBOE is
proposing to revise the main section headings and the number of
questions on each section of the Series 4 study outline as follows:
Options Investment Strategies, decreased from 35 to 34 questions;
Supervision of Sales Activities and Trading Practices, increased from
71 to 75 questions; and Supervision of Employees, Business Conduct, and
Recordkeeping and Reporting Requirements, decreased from 19 to 16
questions. CBOE is further proposing revisions to the study outline to
reflect the SEC short sale requirements. The revised examination
continues to cover the areas of knowledge required to supervise options
activities.
CBOE is proposing these changes to the entire content of the Series
4 examination, including the selection specifications and question
bank. The number of questions on the Series 4 examination will remain
at 125, and candidates will continue to have three hours to complete
the exam. Also, each question will continue to count one point, and
each candidate must correctly answer 70 percent of the questions to
receive a passing grade.
CBOE understands that the other SROs also will file with the
Commission similar revisions to the Series 4 examination program.
2. Statutory Basis
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)(1) \7\ of the Act in particular, in that it
is designed to enforce compliance by Exchange members and persons
associated with its members with the rules of the Exchange. The
Exchange also believes the proposed rule change furthers the objectives
of Section 6(c)(3) \8\ of the Act, which authorizes CBOE to prescribe
standards of training, experience and competence for persons associated
with CBOE members.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78(b)(1).
\8\ 15 U.S.C. 78(c)(3).
---------------------------------------------------------------------------
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 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
The proposed rule change has become effective pursuant to Section
19(b)(3)(A)(i) of the Act \9\ and Rule 19b-4(f)(1) thereunder,\10\ in
that the proposed rule change constitutes a stated policy, practice, or
interpretation with respect to the meaning, administration, or
enforcement of an existing rule of the self-regulatory organization.
CBOE will announce the implementation date in a Regulatory Circular to
be published no later than 60 days after SEC Notice of this filing.
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\9\ 15 U.S.C. 78f(b)(3)(A)(i).
\10\ 17 CFR 240.19b-(f)(l).
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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 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-2005-97 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-2005-97. 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
[[Page 74070]]
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-2005-97 and should be
submitted on or before January 4, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
Jonathan G. Katz,
Secretary.
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\11\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E5-7338 Filed 12-13-05; 8:45 am]
BILLING CODE 8010-01-P
