Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Extension of a Pilot Program That Increases the Standard Position and Exercise Limits for Certain Options Traded on the Exchange, 10574-10576 [06-1907]
Download as PDF
10574
Federal Register / Vol. 71, No. 40 / Wednesday, March 1, 2006 / Notices
Commission may designate, it has
become effective pursuant to section
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6) thereunder.11
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.12 However, Rule 19b–
4(f)(6)(iii) 13 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange provided the Commission
with written notice of its intent to file
this proposed rule change at least five
business days prior to the date of filing
the proposed rule change. In addition,
the Exchange has requested that the
Commission waive the 30-day preoperative delay. The Commission
believes that waiving the 30-day preoperative delay is consistent with the
protection of investors and in the public
interest because it will allow the Pilot
Program to continue uninterrupted.14
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 Act.
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, 100 F Street, NE., Washington,
DC 20549. Copies of such filing will also
be available for inspection and copying
at the principal office of the BSE. 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–BSE–2006–07 and should be
submitted on or before March 22, 2006.
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:
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Nancy M. Morris,
Secretary.
[FR Doc. E6–2817 Filed 2–28–06; 8:45 am]
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
No. SR–BSE–2006–07 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File No.
SR–BSE–2006–07. This file number
should be included on the subject line
wwhite on PROD1PC61 with NOTICES
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
13 Id.
14 For the purposes only of waiving the preoperative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
11 17
VerDate Aug<31>2005
18:25 Feb 28, 2006
Jkt 208001
BILLING CODE 8010–01–P
[Release No. 34–53348; File No. SR–CBOE–
2006–11]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the Extension
of a Pilot Program That Increases the
Standard Position and Exercise Limits
for Certain Options Traded on the
Exchange
February 22, 2006.
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
Frm 00113
Fmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The CBOE proposes to extend an
existing pilot program that increases the
standard position and exercise limits for
certain options traded on the Exchange
(‘‘Pilot Program’’). The text of the
proposed rule change is available on the
CBOE’s Web site (https://
www.cboe.com), at the CBOE’s principal
office, and at the Commission’s Public
Reference Room.
Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
CBOE included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
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 Pilot Program, as previously
approved by the Commission, provides
for an increase to the standard position
and exercise limits for equity option
contracts and for options on QQQQs for
a six-month period.5 Specifically, the
3 15
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 January
31, 2006, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or
‘‘Exchange’’) filed with the Securities
PO 00000
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 Exchange has filed
the proposal as a ‘‘non-controversial’’
rule change pursuant to Section
19(b)(3)(A) of the Act 3 and Rule 19b–
4(f)(6) thereunder,4 which renders it
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
Sfmt 4703
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 The proposed extension is actually for six
months and ten days. The Pilot Program, which the
Commission approved for February 23, 2005, and
extended for an additional six months, is set to
expire on February 23, 2006. See Securities
Exchange Act Release No. 51244 (February 23,
2005) 70 FR 10010 (March 1, 2005) (order
approving SR–CBOE–2003–30, as amended) (‘‘Pilot
Program Order’’). See also Securities Exchange Act
Release No. 52262 (August 15, 2005), 70 FR 48995
(August 22, 2005) (order approving SR–CBOE–
2005–61).
4 17
E:\FR\FM\01MRN1.SGM
01MRN1
Federal Register / Vol. 71, No. 40 / Wednesday, March 1, 2006 / Notices
Pilot Program increased the applicable
position and exercise limits for equity
options on the QQQQ in accordance
with the following levels:
Current equity option contract limit 6
Pilot program equity option contract limit
13,500
22,500
31,500
60,000
75,000
25,000
50,000
75,000
200,000
250,000
Current QQQQ option contract limit
Pilot program QQQQ option contract limit
300,000
900,000
The purpose of the proposed rule
change is to extend the Pilot Program for
an additional period of slightly over six
months, through September 1, 2006.
The Exchange believes that extending
the Pilot Program for six months is
warranted due to the positive feedback
from members and for the reasons cited
in the original rule filing that proposed
the adoption of the Pilot Program.7 Also,
the Exchange has not encountered any
problems or difficulties relating to the
Pilot Program since its inception. For
these reasons, the Exchange requests
that the Commission extend the Pilot
Program for the aforementioned
additional period.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements provided under
Section 6(b)(5) of the Act that the rules
of an exchange be designed to promote
just and equitable principles of trade, to
prevent fraudulent and manipulative
acts and, in general, 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.
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.
wwhite on PROD1PC61 with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
does not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
6 Except
7 See
when the Pilot Program is in effect.
Pilot Program Order, supra note5.
VerDate Aug<31>2005
10575
18:25 Feb 28, 2006
Jkt 208001
burden on competition; and (3) become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 8 and Rule 19b–
4(f)(6) thereunder.9
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.10 However, Rule 19b–
4(f)(6)(iii) 11 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day preoperative delay. The Commission
believes that waiving the 30-day preoperative delay is consistent with the
protection of investors and in the public
interest because it will allow the Pilot
Program to continue uninterrupted.12
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 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:
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii).
11 Id.
12 For the purposes only of waiving the preoperative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f). The
Commission is also exercising its authority to waive
the five-day pre-filing requirement.
9 17
PO 00000
Frm 00114
Fmt 4703
Sfmt 4703
Electronic Comments
• Use the Commission’s Internet
comment from (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–CBOE–2006–11 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File No.
SR–CBOE–2006–11. 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, 100 F Street, NE., Washington,
DC 20549. Copies of such filing will also
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 No.
SR–CBOE–2006–11 and should be
submitted on or before March 22, 2006.
E:\FR\FM\01MRN1.SGM
01MRN1
10576
Federal Register / Vol. 71, No. 40 / Wednesday, March 1, 2006 / Notices
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Nancy M. Morris,
Secretary.
[FR Doc. 06–1907 Filed 2–28–06; 8:45 am]
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8010–01–M
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53343; File No. SR–CBOE–
2006–13]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1
Thereto To Amend CBOE Rule 8.3
Relating to Market-Maker
Appointments
February 22, 2006.
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 February
2, 2006, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
have been prepared by the Exchange.
The Exchange filed the proposal as a
‘‘non-controversial’’ proposed rule
change pursuant to Section
19(b)(3)(A)(iii) of the Act 3 and Rule
19b–4(f)(6) thereunder.4 On February
17, 2006, the Exchange filed
Amendment No. 1 to the proposed rule
change.5 The Commission is publishing
this notice, as amended, 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 8.3 relating to Market-Maker
appointments. The text of the proposed
rule change is available on the CBOE’s
Web site (https://www.cboe.com), at the
CBOE’s Office of the Secretary, and at
the Commission.
13 17
CFR 200.30–3(a)(12).
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 Amendment No. 1 is incorporated in this notice.
Amendment No. 1 clarifies that for purposes of the
proposed amendment to CBOE Rule 8.3, the
Exchange is using the specific Tiers set forth in
CBOE Rule 8.4(d) that have been structured for
purposes of Remote Market-Maker appointments.
wwhite on PROD1PC61 with NOTICES
1 15
VerDate Aug<31>2005
18:25 Feb 28, 2006
Jkt 208001
In its filing with the Commission, the
CBOE included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of those
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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this rule change is to
amend CBOE Rule 8.3 relating to
Market-Maker appointments, other than
appointments for Remote MarketMakers. Currently, CBOE Rule 8.3(c)
provides that a Market-Maker can quote
(i) electronically in all classes traded on
the Hybrid Trading System that are
located in one designated trading station
(‘‘appointed trading station’’) provided,
however, that with respect to Hybrid 2.0
Classes, a Market-Maker may submit
electronic quotations in up to 40 classes
for each Exchange membership it owns
or up to 30 classes for each Exchange
membership it leases; and (ii) in open
outcry all classes traded on the
Exchange.
CBOE proposes to allow a MarketMaker that is submitting electronic
quotations in his or her appointed
Hybrid and Hybrid 2.0 Classes to quote
electronically in either two additional
Hybrid 2.0 Classes in Tier A or Tier B
that are not located in the MarketMaker’s appointed trading station, or
five additional Hybrid 2.0 Classes in
Tiers C, D, or E that are not located in
the Market-Maker’s appointed trading
station.6
CBOE Rule 8.3 also would provide
that the Market-Maker cannot be
affiliated with an e-DPM or RMM that
holds an appointment in one of these
additional Hybrid 2.0 Classes, which is
consistent with the current restriction in
CBOE Rule 8.3 on Market-Makers
streaming electronic quotations from
6 For purposes of Remote Market-Maker
appointments, CBOE has assigned approximately
604 Hybrid 2.0 Classes to five separate tiers
structured according to trading volume statistics
and an ‘‘A+’’ Tier which consists of five option
classes listed in CBOE Rule 8.4(d). Tiers A though
E each consist of approximately 120 Hybrid 2.0
Classes.
PO 00000
Frm 00115
Fmt 4703
Sfmt 4703
outside of their appointed trading
stations in classes in which an affiliated
e-DPM or RMM submits electronic
quotations.7 Moreover, pursuant to a
Pilot Program that expires on September
14, 2006, a Market-Maker could be
affiliated with another Market-Maker
(‘‘Affiliated Market-Maker’’) who holds
an appointment in one of these
additional Hybrid 2.0 Classes, provided
that the Market-Maker could not submit
electronic quotations in these additional
Hybrid 2.0 Classes if the Affiliated
Market-Maker is submitting electronic
quotations from outside its appointed
trading station. Pursuant to a separate
Pilot Program that expires on March 14,
2006 (see CBOE Rule 8.4(c)(ii)), if both
Market-Makers operate as multiple
aggregation units under the criteria set
forth in CBOE Rule 8.4(c)(ii), the
preceding restriction would not apply.
With respect to the additional Hybrid
2.0 Classes, the provisions of CBOE Rule
8.3A would continue to apply, and a
Market-Maker would be able to quote
electronically in the options classes
provided the Class Quoting Limit
(‘‘CQL’’) for the option class has not
been met (unless the CQL has been
otherwise increased under the
provisions of CBOE Rule 8.3A).
CBOE believes it would be
appropriate and beneficial to permit
Market-Makers to quote electronically in
an additional number of Hybrid 2.0
Classes which are not located in the
Market-Maker’s appointed trading
station. The Exchange believes that
allowing Market-Makers the opportunity
to quote electronically in up to either
two additional Hybrid 2.0 Classes in
Tier A or Tier B that are not located in
the Market-Maker’s appointed trading
station, or five additional Hybrid 2.0
Classes in Tiers C, D, or E that are not
located in the Market-Maker’s appointed
trading station would increase
competition and liquidity in the classes,
while providing Market-Makers with
additional trading opportunities outside
of their appointed trading stations.
CBOE also proposes to eliminate the
40/30 restriction on quoting Hybrid 2.0
Classes electronically depending on
whether the Market-Maker owns or
leases a membership. Instead, the CBOE
proposes to allow a Market-Maker to
submit electronic quotations in all
Hybrid and Hybrid 2.0 Classes located
in his/her appointed trading station.
CBOE does not believe that the
limitation on only quoting electronically
7 CBOE Rule 8.3(c) states that: ‘‘Any MarketMaker affiliated with an e-DPM or RMM shall be
ineligible to submit electronic quotations from
outside of its appointed trading station prusuant to
this rule in any class in which the affiliated e-DPM
or RMM has an appointment.’’
E:\FR\FM\01MRN1.SGM
01MRN1
Agencies
[Federal Register Volume 71, Number 40 (Wednesday, March 1, 2006)]
[Notices]
[Pages 10574-10576]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-1907]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53348; File No. SR-CBOE-2006-11]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to the Extension of a Pilot Program That Increases
the Standard Position and Exercise Limits for Certain Options Traded on
the Exchange
February 22, 2006.
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 January 31, 2006, 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
Exchange has filed the proposal as a ``non-controversial'' rule change
pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6)
thereunder,\4\ which renders it effective upon filing with the
Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CBOE proposes to extend an existing pilot program that
increases the standard position and exercise limits for certain options
traded on the Exchange (``Pilot Program''). The text of the proposed
rule change is available on the CBOE's Web site (https://www.cboe.com),
at the CBOE's principal office, and at the Commission's Public
Reference Room.
Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the CBOE included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed 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 Pilot Program, as previously approved by the Commission,
provides for an increase to the standard position and exercise limits
for equity option contracts and for options on QQQQs for a six-month
period.\5\ Specifically, the
[[Page 10575]]
Pilot Program increased the applicable position and exercise limits for
equity options on the QQQQ in accordance with the following levels:
---------------------------------------------------------------------------
\5\ The proposed extension is actually for six months and ten
days. The Pilot Program, which the Commission approved for February
23, 2005, and extended for an additional six months, is set to
expire on February 23, 2006. See Securities Exchange Act Release No.
51244 (February 23, 2005) 70 FR 10010 (March 1, 2005) (order
approving SR-CBOE-2003-30, as amended) (``Pilot Program Order'').
See also Securities Exchange Act Release No. 52262 (August 15,
2005), 70 FR 48995 (August 22, 2005) (order approving SR-CBOE-2005-
61).
------------------------------------------------------------------------
Current equity option contract Pilot program equity option
limit \6\ contract limit
------------------------------------------------------------------------
13,500 25,000
22,500 50,000
31,500 75,000
60,000 200,000
75,000 250,000
------------------------------------------------------------------------
CurrenPilot program QQQQ option contract
limit
------------------------------------------------------------------------
300,000 900,000
------------------------------------------------------------------------
The purpose of the proposed rule change is to extend the Pilot
Program for an additional period of slightly over six months, through
September 1, 2006. The Exchange believes that extending the Pilot
Program for six months is warranted due to the positive feedback from
members and for the reasons cited in the original rule filing that
proposed the adoption of the Pilot Program.\7\ Also, the Exchange has
not encountered any problems or difficulties relating to the Pilot
Program since its inception. For these reasons, the Exchange requests
that the Commission extend the Pilot Program for the aforementioned
additional period.
---------------------------------------------------------------------------
\6\ Except when the Pilot Program is in effect.
\7\ See Pilot Program Order, supra note5.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirements provided under Section 6(b)(5) of the Act that
the rules of an exchange be designed to promote just and equitable
principles of trade, to prevent fraudulent and manipulative acts and,
in general, 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.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change does not: (1) Significantly
affect the protection of investors or the public interest; (2) impose
any significant burden on competition; and (3) become operative for 30
days after the date of this filing, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\10\
However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day pre-operative delay. The Commission
believes that waiving the 30-day pre-operative delay is consistent with
the protection of investors and in the public interest because it will
allow the Pilot Program to continue uninterrupted.\12\
---------------------------------------------------------------------------
\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ Id.
\12\ For the purposes only of waiving the pre-operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
The Commission is also exercising its authority to waive the five-
day pre-filing requirement.
---------------------------------------------------------------------------
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 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 from (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-CBOE-2006-11 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-CBOE-2006-11. 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, 100 F Street, NE.,
Washington, DC 20549. Copies of such filing will also 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 No. SR-CBOE-2006-11 and should be
submitted on or before March 22, 2006.
[[Page 10576]]
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. 06-1907 Filed 2-28-06; 8:45 am]
BILLING CODE 8010-01-M