Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Complex Orders on the Hybrid System, 77211-77213 [E5-8052]
Download as PDF
Federal Register / Vol. 70, No. 249 / Thursday, December 29, 2005 / Notices
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any inappropriate 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
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has been designated as a fee change
pursuant to Section 19(b)(3)(A)(ii) of the
Act 11 and Rule 19b–4(f)(2) 12
thereunder, because it establishes or
changes a due, fee, or other charge
imposed by the Exchange. Accordingly,
the proposal will take effect upon filing
with the Commission. At any time
within 60 days of the filing of such
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:
wwhite on PROD1PC65 with NOTICES
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–2005–107 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–2005–107. 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–2005–107 and
should be submitted on or before
January 19, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Jonathan G. Katz,
Secretary.
[FR Doc. E5–8047 Filed 12–28–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53008; File No. SR–CBOE–
2005–95]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Complex
Orders on the Hybrid System
December 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 December
19, 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
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
11 15
U.S.C. 78s(b)(3)(A)(ii).
12 17 CFR 240.19b–4(f)(2).
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by the Exchange. The CBOE has filed
this proposal pursuant to Section
19(b)(3)(A)(iii) of the Act 3 and Rule
19b–4(f)(6) thereunder,4 which renders
the proposal effective upon filing with
the Commission.5 The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The CBOE proposes to amend CBOE
Rule 6.53C, ‘‘Complex Orders on the
Hybrid System,’’ to better describe the
routing of complex orders and to
include orders from Market-Makers and
specialists on an options exchange as
additional order categories eligible to be
routed to the Hybrid System complex
order book (‘‘COB’’) from PAR
workstations or directly to the COB. 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’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Commission recently approved
CBOE Rule 6.53C, which sets forth the
procedures used to trade complex
orders on the CBOE’s COB system.6
Currently, CBOE Rule 6.53C provides
that the appropriate Exchange
committee may determine whether to
allow complex orders to route to PAR or
to the COB and whether to allow
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 The CBOE has requested that the Commission
waive the 30-day operative delay, as specified in
Rule 19b–4(f)(6)(iii). 17 CFR 240.19b–4(f)(6)(iii).
6 See Securities Exchange Act Release No. 51271
(February 28, 2005), 70 FR 10712 (March 4, 2005)
(order approving File No. SR–CBOE–2004–45).
4 17
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Federal Register / Vol. 70, No. 249 / Thursday, December 29, 2005 / Notices
complex orders from non-broker-dealer
public customers and from brokerdealers that are not Market-Makers or
specialists on an options exchange to
route from PAR workstations to the
COB.
The CBOE proposes to amend CBOE
Rule 6.53C to better describe the routing
of complex orders. The CBOE intended
at all times and built its COB in such a
way that, depending on committee
determination, complex orders could be
routed directly to the COB (which
facilitates more automated handling of
complex orders), to the PAR workstation
(where complex orders are announced
to the trading crowd and are traded in
open outcry), and/or from the PAR
workstation to the COB.7 Accordingly,
the revised rule more clearly states the
routing alternatives for complex orders.
The CBOE also proposes to include
orders from Market-Makers and
specialists on an options exchange as
additional order categories that are
eligible to be entered in the COB. As
part of the original CBOE Rule 6.53C
proposal and text, the CBOE never
intended to route these types of orders
to the COB (either directly to the COB
or from PAR to the COB). Instead, the
CBOE intended that such orders would
be routed to PAR workstations for
handling. However, the CBOE is now
proposing to make these orders eligible
for entry into the COB, subject to
committee determination. The CBOE
also proposes to make corresponding
changes to the rule text to clarify that,
in addition to routing to PAR
workstations, as determined by the
appropriate Exchange committee, such
orders would be eligible for routing
from PAR workstations to the COB and/
or routing to the COB directly.
wwhite on PROD1PC65 with NOTICES
2. Statutory Basis
The CBOE believes the proposed rule
change is consistent with the Act 8 and
the rules and regulations under the Act
applicable to a national securities
exchange and, in particular, the
requirements of Section 6(b) of the Act.9
Specifically, the Exchange believes the
proposed rule change is consistent with
7 The appropriate committee may determine that
more than one of these routing alternatives is
available. Thus, for example, if the appropriate
committee determines that the routing alternatives
available for public customer complex orders in a
particular class are to: (i) Route directly to the COB,
(ii) route to PAR, and (iii) route from PAR to the
COB, a member representing a public customer
complex order could elect whether to route that
order directly to the COB or to a PAR workstation
and, if routed to a PAR workstation, whether the
order would be represented in open outcry or
routed from the PAR workstation to the COB for
electronic handling.
8 15 U.S.C. 78a et seq.
9 15 U.S.C. 78f(b).
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18:56 Dec 28, 2005
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Section 6(b)(5) 10 in that it is designed
to facilitate transactions in securities, to
promote just and equitable principles of
trade, to enhance competition and to
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
The Exchange neither solicited nor
received comments on the proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has designated the
proposed rule change as one that: (i)
Does not significantly affect the
protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) does not become operative for 30
days from the date of filing, or such
shorter time as the Commission may
designate if consistent with the
protection of investors and the public
interest. In addition, as required under
rule 19b–4(f)(6)(iii),11 the CBOE
provided the Commission with written
notice of its intention to file the
proposed rule change, along with a brief
description and the text of the proposed
rule change, at least five business days
prior to filing the proposal with the
Commission. Therefore, the foregoing
rule change has become effective
pursuant to Section 19(b)(3)(A) of the
Act 12 and Rule 19b–4(f)(6)
thereunder.13
Pursuant to rule 19b–4(f)(6)(iii) under
the Act, a proposal does not become
operative for 30 days after the date of its
filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest. The CBOE has requested
that the Commission waive the 30-day
operative delay. The CBOE believes that
waiver of the 30-day operative delay is
consistent with the protection of
investors and the public interest
because the proposal clarifies the
CBOE’s existing rule and amends the
rule to allow orders from Market Makers
and options exchange specialists to be
10 15
U.S.C. 78f(b)(5).
CFR 240.19b–4(f)(6)(iii).
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(6).
11 17
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Frm 00095
Fmt 4703
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eligible for entry into the COB, which
could facilitate more automated
handling of complex orders and allow
CBOE participants to access potentially
larger pools of liquidity located on the
CBOE.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because the proposal clarifies the
CBOE’s existing rule and because
allowing orders from Market Makers
and options exchange specialists to be
eligible for entry into the COB could
facilitate the execution of complex
orders entered into the COB.14 For these
reasons, the Commission designates that
the proposed rule change become
operative immediately.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
the 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–2005–95 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 No.
SR–CBOE–2005–95. 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
14 For purposes of waiving the 30-day operative
delay, the Commission has considered the proposed
rule’s impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
E:\FR\FM\29DEN1.SGM
29DEN1
Federal Register / Vol. 70, No. 249 / Thursday, December 29, 2005 / Notices
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 the filing also will be
available for inspection and copying at
the principal office of the Exchange. 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 No.
SR–CBOE–2005–95 and should be
submitted on or before January 19, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Jonathan G. Katz,
Secretary.
[FR Doc. E5–8052 Filed 12–28–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52987; File No. SR–CBOE–
2005–108]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to a Session Fee
Increase for the Regulatory Element of
the Continuing Education
Requirements of CBOE Rule 9.3A
wwhite on PROD1PC65 with NOTICES
December 20, 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 December
12, 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 CBOE. The Exchange has
designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by CBOE under
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
section 19(b)(3)(A)(ii) of the Act,3 and
Rule 19b–4(f)(2) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to amend its Fees
Schedule to increase the session fee for
the Regulatory Element of the
Continuing Education requirements of
CBOE Rule 9.3A. Below is the text of the
proposed rule change. Proposed new
language is in italics; proposed
deletions are in [brackets].
*
*
*
*
*
Chicago Board Options Exchange, Inc.—
Fees Schedule
December [1]12, 2005
1.–4. Unchanged.
FOOTNOTES: (1)–(18) Unchanged.
5.–11. Unchanged.
12. REGULATORY FEES
(A)–(E) Unchanged.
(F) Continuing Education Fee:
There shall be a session fee of $75.00
assessed as to each individual who is
required to complete the Regulatory
Element of the Continuing Education
Requirements pursuant to CBOE Rule
9.3A.
13.–23. Unchanged.
Remainder of Fees Schedule—
Unchanged.
*
*
*
*
*
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
The Regulatory Element, a computerbased education program administered
by The National Association of
15 17
1 15
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18:56 Dec 28, 2005
3 15
4 17
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U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
Frm 00096
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77213
Securities Dealers, Inc. (‘‘NASD’’) to
help ensure that registered persons are
kept up-to-date on regulatory,
compliance, and sales practice matters
in the industry, is a component of the
Securities Industry Continuing
Education Program (‘‘Program’’) under
CBOE Rule 9.3A. The Securities
Industry/Regulatory Council on
Continuing Education (‘‘Council’’) 5 was
organized in 1995 to facilitate
cooperative industry/regulatory
coordination of the administration and
future development of the Program in
keeping with applicable industry
regulations and changing industry
needs. Its roles include recommending
and helping develop specific content
and questions for the Regulatory
Element, defining minimum core
curricula for the Firm Element
component of the Program, and
developing and updating information
about the Program for industry-wide
dissemination.
It is the Council’s responsibility to
maintain the Program on a revenue
neutral basis while maintaining
adequate reserves for unanticipated
future expenditures.6 In December 2003,
the Council voted to reduce the
Regulatory Element session fee from $65
to $60 effective January 1, 2004, in order
to reduce the reserves to a level
necessary to support current and
expected programs and expenses. The
Council decided to review the reserve
level and evaluate the Regulatory
Element session fee on an annual basis.
The 2004 financial review and
evaluation produced no change in the
Regulatory Element session fee. In
September 2005, the Council’s annual
financial review and evaluation
revealed that unless the Regulatory
Element session fee were adjusted, the
Council’s reserves were likely to be
insufficient in 2006. The reasons for the
declining surplus are: (1) Lower than
projected session volume resulting in a
significant decrease in actual revenue
over projected revenue; (2) higher
delivery-related expenses beginning in
2006; and (3) costs associated with the
5 The Council currently consists of 20
individuals, 14 of whom are securities industry
professionals associated with NASD member firms
and six of whom represent self-regulatory
organizations (the American Stock Exchange LLC,
CBOE, the Municipal Securities Rulemaking Board,
NASD, the New York Stock Exchange, Inc., and the
Philadelphia Stock Exchange, Inc.).
6 The Regulatory Element session fee was initially
set at $75 when NASD established the continuing
education requirements in 1995. The session fee
was reduced in 1999 to $65 and again in 2004 to
$60. The proposed fee increase returns the
Regulatory Element session fee to its 1995 level.
E:\FR\FM\29DEN1.SGM
29DEN1
Agencies
[Federal Register Volume 70, Number 249 (Thursday, December 29, 2005)]
[Notices]
[Pages 77211-77213]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-8052]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53008; File No. SR-CBOE-2005-95]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Complex Orders on the Hybrid System
December 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 December 19, 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 Exchange.
The CBOE has filed this proposal pursuant to Section 19(b)(3)(A)(iii)
of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the
proposal effective upon filing with the Commission.\5\ 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)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
\5\ The CBOE has requested that the Commission waive the 30-day
operative delay, as specified in Rule 19b-4(f)(6)(iii). 17 CFR
240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CBOE proposes to amend CBOE Rule 6.53C, ``Complex Orders on the
Hybrid System,'' to better describe the routing of complex orders and
to include orders from Market-Makers and specialists on an options
exchange as additional order categories eligible to be routed to the
Hybrid System complex order book (``COB'') from PAR workstations or
directly to the COB. 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's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Commission recently approved CBOE Rule 6.53C, which sets forth
the procedures used to trade complex orders on the CBOE's COB
system.\6\ Currently, CBOE Rule 6.53C provides that the appropriate
Exchange committee may determine whether to allow complex orders to
route to PAR or to the COB and whether to allow
[[Page 77212]]
complex orders from non-broker-dealer public customers and from broker-
dealers that are not Market-Makers or specialists on an options
exchange to route from PAR workstations to the COB.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 51271 (February 28,
2005), 70 FR 10712 (March 4, 2005) (order approving File No. SR-
CBOE-2004-45).
---------------------------------------------------------------------------
The CBOE proposes to amend CBOE Rule 6.53C to better describe the
routing of complex orders. The CBOE intended at all times and built its
COB in such a way that, depending on committee determination, complex
orders could be routed directly to the COB (which facilitates more
automated handling of complex orders), to the PAR workstation (where
complex orders are announced to the trading crowd and are traded in
open outcry), and/or from the PAR workstation to the COB.\7\
Accordingly, the revised rule more clearly states the routing
alternatives for complex orders.
---------------------------------------------------------------------------
\7\ The appropriate committee may determine that more than one
of these routing alternatives is available. Thus, for example, if
the appropriate committee determines that the routing alternatives
available for public customer complex orders in a particular class
are to: (i) Route directly to the COB, (ii) route to PAR, and (iii)
route from PAR to the COB, a member representing a public customer
complex order could elect whether to route that order directly to
the COB or to a PAR workstation and, if routed to a PAR workstation,
whether the order would be represented in open outcry or routed from
the PAR workstation to the COB for electronic handling.
---------------------------------------------------------------------------
The CBOE also proposes to include orders from Market-Makers and
specialists on an options exchange as additional order categories that
are eligible to be entered in the COB. As part of the original CBOE
Rule 6.53C proposal and text, the CBOE never intended to route these
types of orders to the COB (either directly to the COB or from PAR to
the COB). Instead, the CBOE intended that such orders would be routed
to PAR workstations for handling. However, the CBOE is now proposing to
make these orders eligible for entry into the COB, subject to committee
determination. The CBOE also proposes to make corresponding changes to
the rule text to clarify that, in addition to routing to PAR
workstations, as determined by the appropriate Exchange committee, such
orders would be eligible for routing from PAR workstations to the COB
and/or routing to the COB directly.
2. Statutory Basis
The CBOE believes the proposed rule change is consistent with the
Act \8\ and the rules and regulations under the Act applicable to a
national securities exchange and, in particular, the requirements of
Section 6(b) of the Act.\9\ Specifically, the Exchange believes the
proposed rule change is consistent with Section 6(b)(5) \10\ in that it
is designed to facilitate transactions in securities, to promote just
and equitable principles of trade, to enhance competition and to
protect investors and the public interest.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78a et seq.
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
The Exchange neither solicited nor received comments on the
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has designated the proposed rule change as one that:
(i) Does not significantly affect the protection of investors or the
public interest; (ii) does not impose any significant burden on
competition; and (iii) does not become operative for 30 days from the
date of filing, or such shorter time as the Commission may designate if
consistent with the protection of investors and the public interest. In
addition, as required under rule 19b-4(f)(6)(iii),\11\ the CBOE
provided the Commission with written notice of its intention to file
the proposed rule change, along with a brief description and the text
of the proposed rule change, at least five business days prior to
filing the proposal with the Commission. Therefore, the foregoing rule
change has become effective pursuant to Section 19(b)(3)(A) of the Act
\12\ and Rule 19b-4(f)(6) thereunder.\13\
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\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
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Pursuant to rule 19b-4(f)(6)(iii) under the Act, a proposal does
not become operative for 30 days after the date of its filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest. The CBOE has requested
that the Commission waive the 30-day operative delay. The CBOE believes
that waiver of the 30-day operative delay is consistent with the
protection of investors and the public interest because the proposal
clarifies the CBOE's existing rule and amends the rule to allow orders
from Market Makers and options exchange specialists to be eligible for
entry into the COB, which could facilitate more automated handling of
complex orders and allow CBOE participants to access potentially larger
pools of liquidity located on the CBOE.
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because the proposal clarifies the CBOE's existing rule and because
allowing orders from Market Makers and options exchange specialists to
be eligible for entry into the COB could facilitate the execution of
complex orders entered into the COB.\14\ For these reasons, the
Commission designates that the proposed rule change become operative
immediately.
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\14\ For purposes of waiving the 30-day operative delay, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate the 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-2005-95 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 No. SR-CBOE-2005-95. 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
[[Page 77213]]
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 the filing also will be available for
inspection and copying at the principal office of the Exchange. 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 No. SR-CBOE-2005-95 and should be
submitted on or before January 19, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. E5-8052 Filed 12-28-05; 8:45 am]
BILLING CODE 8010-01-P