Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Duration of CBOE Rule 6.45A(b) Pertaining to Orders Represented in Open Outcry, 15235-15237 [E6-4367]
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Federal Register / Vol. 71, No. 58 / Monday, March 27, 2006 / Notices
transactions resulting from dividend
strategies, merger strategies, and short
stock interest strategies, as defined in
Footnote 13 of this Fees Schedule,7 8 or
cabinet trades (see CBOE Rule 6.54—
Accommodation Liquidations).
CBOE states that it is not amending its
marketing fee program in any other
respects.
2. Statutory Basis
The Exchange believes that the
proposed rule change, as amended, is
consistent with Section 6(b) of the Act,9
in general, and furthers the objectives of
Section 6(b)(4) of the Act,10 in
particular, in that it is designed to
provide for the equitable allocation of
reasonable dues, fees, and other charges
among its members and other persons
using its facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change, as amended,
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,
as amended, has been designated as a
wwhite on PROD1PC65 with NOTICES
7 CBOE
notes that, as set forth in Footnote 13 of
its Fees Schedule, a dividend strategy is defined as
transactions done to achieve a dividend arbitrage
involving the purchase, sale, and exercise of in-themoney options of the same class, executed prior to
the date on which the underlying stock goes exdividend. CBOE states that a merger strategy is
defined as transactions done to achieve a merger
arbitrage involving the purchase, sale, and exercise
of options of the same class and expiration date,
each executed prior to the date on which
shareholders of record are required to elect their
respective form of consideration, i.e., cash or stock.
A short stock interest strategy is defined as
transactions done to achieve a short stock interest
arbitrage involving the purchase, sale, and exercise
of in-the-money options of the same class.
8 CBOE notes that the fees currently assessed on
transactions resulting from dividend strategies,
merger strategies, and short stock interest strategies,
as defined in Footnote 13 of its Fees Schedule, are
part of a pilot program that will expire on
September 1, 2006. See Securities Exchange Act
Release No. 53412 (March 3, 2006), 71 FR 12752
(March 13, 2006) (SR–CBOE–2006–20). Telephone
conversation between Patrick Sexton, Associate
General Counsel, Exchange, and David Liu and
Michou Nguyen, Attorneys, Division of Market
Regulation, Commission, on March 7, 2006.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4).
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18:19 Mar 24, 2006
Jkt 208001
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, as amended,
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.13
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2006–23 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number SR–CBOE–2006–23. 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
11 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
13 The effective date of the original proposed rule
change is March 1, 2006, and the effective date of
Amendment No. 1 is March 16, 2006. For purposes
of calculating the 60-day period within which the
Commission may summarily abrogate the proposed
rule change, as amended, the Commission considers
the period to commence on March 16, 2006, the
date on which the Exchange submitted Amendment
No. 1. See 15 U.S.C. 78s(b)(3)(C).
12 17
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15235
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–2006–23 and should
be submitted on or before April 17,
2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Nancy M. Morris,
Secretary.
[FR Doc. E6–4340 Filed 3–24–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53524; File No. SR–CBOE–
2006–22]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Duration of
CBOE Rule 6.45A(b) Pertaining to
Orders Represented in Open Outcry
March 21, 2006.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934(the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 8,
2006, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the CBOE. 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 which
renders it effective upon filing with the
Commission.5 The Commission is
14 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 The Exchange has asked the Commission to
waive the 30-day operative delay required by Rule
19b–4(f)(6)(iii), 17 CFR 240.19b–4(f)(6)(iii). See
discussion infra Section III.
1 15
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15236
Federal Register / Vol. 71, No. 58 / Monday, March 27, 2006 / Notices
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
on March 14, 2006, the Exchange
proposes to extend the effectiveness of
the Rule through July 14, 2006.8
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
2. Statutory Basis
The CBOE proposes to extend the
duration of CBOE Rule 6.45A(b) (the
‘‘Rule’’), which relates to the allocation
of orders represented in open outcry in
equity option classes designated by the
Exchange to be traded on the CBOE
Hybrid Trading System (‘‘Hybrid’’)
through July 14, 2006. No other
substantive changes are being made to
the Rule. The text of the proposed rule
change is available on the CBOE’s
Internet Web site (https://
www.cboe.com), at the CBOE’s principal
office, and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
CBOE included statements concerning
the purpose of, and basis for, the
proposed rule change and discussed any
comments it received on the proposed
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
wwhite on PROD1PC65 with NOTICES
In March 2005, the Commission
approved revisions to CBOE Rule 6.45A
related to the introduction of Remote
Market-Makers.6 Among other things,
the Rule, pertaining to the allocation of
orders represented in open outcry in
equity options classes traded on Hybrid,
was amended to clarify that only incrowd market participants would be
eligible to participate in open outcry
trade allocations. In addition, the Rule
was amended to limit its duration until
September 14, 2005, unless otherwise
extended. The duration of the Rule was
thereafter extended through December
14, 2005 and again through March 14,
2006.7 As the duration period expired
6 See Securities Exchange Act Release No. 51366
(March 14, 2005), 70 FR 13217 (March 18, 2005)
(SR–CBOE–2004–75).
7 See Securities Exchange Act Release Nos. 52423
(September 14, 2005), 70 FR 55194 (September 20,
2005) (extending the duration of the Rule through
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18:19 Mar 24, 2006
Jkt 208001
The Exchange believes the proposed
rule change is consistent with the Act
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
the section 6(b)(5) 10 requirements 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 that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not (1) significantly affect
December 14, 2005) and 52957 (December 15,
2005), 70 FR 76085 (December 22, 2005) (extending
the Rule through March 14, 2006).
8 In order to effect proprietary transactions on the
floor of the Exchange, in addition to complying
with the requirements of the Rule, members are also
required to comply with the requirements of
Section 11(a)(1) of the Act, 15 U.S.C. 78k(a)(1), or
qualify for an exemption. Section 11(a)(1) restricts
securities transactions of a member of any national
securities exchange effected on that exchange for (i)
the member’s own account, (ii) the account of a
person associated with the member, or (iii) an
account over which the member or a person
associated with the member exercises discretion,
unless a specific exemption is available. The
Exchange issued a regulatory circular to members
informing them of the applicability of these Section
11(a)(1) requirements when the duration of the Rule
was extended until December 14, 2005 and again
when the duration of the Rule was extended until
March 14, 2006. See CBOE Regulatory Circulars
RG05–103 (November 2, 2005) and RG06–001
(January 3, 2006). The Exchange represents that it
expects to issue a similar regulatory circular to
members reminding them of the applicability of the
section 11(a)(1) requirements with respect to the
proposed rule change. Telephone conversation
between Jennifer Lamie, Managing Senior Attorney,
CBOE, and Ronesha A. Butler, Special Counsel,
Division of Market Regulation, Commission (March
14, 2006).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00080
Fmt 4703
Sfmt 4703
the protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for thirty days from the date
on which it was filed, or such shorter
time as the Commission may designate
if consistent with the protection of
investors and the public interest, it has
become effective pursuant to section
19(b)(3)(A) of the Act 11 and Rule 19b–
4(f)(6) 12 thereunder.13
A proposed rule change filed under
Commission Rule 19b–4(f)(6) 14
normally does not become operative
prior to thirty days after the date of
filing. The CBOE requests that the
Commission waive the 30-day operative
delay, as specified in Rule 19b–
4(f)(6)(iii), and designate the proposed
rule change to become operative
immediately to allow the Exchange to
continue to operate under the existing
allocation parameters for orders
represented in open outcry in Hybrid on
an uninterrupted basis. The
Commission hereby grants the request.
The Commission believes that waiving
the 30-day operative delay is consistent
with the protection of investors and the
public interest because such waiver will
allow the CBOE to continue to operate
under the Rule without interruption.
For these reasons, the Commission
designates the proposed rule change as
effective and operative upon filing.15
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 the 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:
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
13 Pursuant to Rule 19b–4(f)(6)(iii), the Exchange
has given the Commission written notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
on which the Exchange filed the proposed rule
change. See 17 CFR 240.19b–4(f)(6)(iii).
14 17 CFR 240.19b–4(f)(6).
15 For the purposes only of waiving the operative
date of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
12 17
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Federal Register / Vol. 71, No. 58 / Monday, March 27, 2006 / 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
No. SR–CBOE–2006–22 on the subject
line.
Paper Comments
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53503; SR-DTC–2006–01]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Relating to
the Participant Exchange System
March 16, 2006.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
January 19, 2006, The Depository Trust
Company (‘‘DTC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
All submissions should refer to File
change as described in Items I, II, and
Number SR–CBOE–2006–22. This file
III below, which Items have been
number should be included on the
prepared primarily by DTC. The
subject line if e-mail is used. To help the Commission is publishing this notice to
Commission process and review your
solicit comments on the proposed rule
comments more efficiently, please use
change from interested persons.
only one method. The Commission will
post all comments on the Commission’s I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
Internet Web site (https://www.sec.gov/
the Proposed Rule Change
rules/sro.shtml). Copies of the
Under the proposed rule change, DTC
submission, all subsequent
will disable its Participant Exchange
amendments, all written statements
(‘‘PEX’’) buy-in functionality for the
with respect to the proposed rule
National Securities Clearing
change that are filed with the
Corporation’s (‘‘NSCC’’) Continuous Net
Commission, and all written
Settlement (‘‘CNS’’) buy-ins on or about
communications relating to the
February 10, 2006.
proposed rule change between the
Commission and any person, other than II. Self-Regulatory Organization’s
Statement of the Purpose of, and
those that may be withheld from the
Statutory Basis for, the Proposed Rule
public in accordance with the
Change
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
In its filing with the Commission,
the Commission’s Public Reference
DTC included statements concerning
Room. Copies of such filing also will be the purpose of and basis for the
available for inspection and copying at
proposed rule change and discussed any
comments it received on the proposed
the principal office of the CBOE. All
rule change. The text of these statements
comments received will be posted
may be examined at the places specified
without change; the Commission does
in Item IV below. DTC has prepared
not edit personal identifying
summaries, set forth in sections A, B,
information from submissions. You
and C below, of the most significant
should submit only information that
you wish to make available publicly. All aspects of such statements.
submissions should refer to File
A. Self-Regulatory Organization’s
Number SR–CBOE–2006–22 and should Statement of the Purpose of, and
be submitted on or before April 17,
Statutory Basis for, the Proposed Rule
2006.
Change
Between 2003 and 2005, DTC made
For the Commission, by the Division of
several rule filings to establish and
Market Regulation, pursuant to delegated
enhance its SMART/Track service.2 In
authority.16
rule filing SR–DTC–2005–19, DTC
Nancy M. Morris,
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
Secretary.
[FR Doc. E6–4367 Filed 3–24–06; 8:45 am]
wwhite on PROD1PC65 with NOTICES
BILLING CODE 8010–01–P
16 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
18:19 Mar 24, 2006
Jkt 208001
1 15
U.S.C. 78s(b)(1).
Exchange Act Release Nos. 50029
(July 15, 2004), 69 FR 43870 (July 22, 2004)
(Universal Hub, Stock Loan notification service);
50887 (Dec. 20, 2004), 69 FR 77802 (Dec. 28, 2004)
(Corporate Action Liability Notification Service);
52104 (July 21, 2005), 70 FR 43730 (July 28, 2005)
(SMART/Track for Agency Lending Disclosure);
and 53032 (Dec. 28, 2005), 71 FR 1457 (Jan. 9, 2006)
(SMART/Track for Buy-Ins) [SR–DTC–2005–19].
2 Securities
PO 00000
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Fmt 4703
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15237
added the SMART/Track for Buy-Ins
service that provides automated
communication, warehousing, and
tracking of various types of buy-in
related notices.3 As part of that filing,
DTC announced that the SMART/Track
for Buy-Ins service would replace the
buy-in functionality of DTC’s PEX
platform.
Under this proposed rule change, DTC
will disable the PEX functionality for
NSCC’s CNS buy-ins on or about
February 10, 2006.4 Accordingly, DTC
participants and NSCC CNS users must
register for the SMART/Track for BuyIns service. DTC has been assisting its
participants and CNS users in this
regard.
The PEX buy-in functionality for buyins other than NSCC CNS buy-ins (i.e.
NYSE, AMEX, NASD, and NSCC
Balance Order buy-ins) and for
Municipal Securities Rulemaking Board
closeouts will remain active until the
final phase of SMART/Track for Buy-Ins
is implemented, which is currently
anticipated to happen in June 2006.
When that happens, all PEX buy-in
functionality will be disabled pursuant
to a rule filing that DTC will file at that
time.5 DTC and NSCC will notify their
participants of the exact date of such
termination through Important Notices.
DTC believes that the proposed rule
change is consistent with the
requirements of Section 17A of the Act 6
and the rules and regulations
thereunder because it is consistent with
DTC’s obligation to safeguard securities
and funds in its custody or control.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
DTC does not believe that the
proposed rule change will have any
impact or impose any burden on
competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
DTC has not solicited or received
written comments relating to the
proposed rule change. DTC will notify
the Commission of any written
comments it receives.
3 Securities Exchange Act Release No. 53032
supra note 2.
4 DTC and NSCC have notified their respective
participants of this action. DTC Important Notice
B#9049–06 (Jan. 19, 2006) available online at https://
www.dtc.org/impNtc/ope/ope_9049-06.pdf; NSCC
Important Notice A#6189 (Jan. 19, 2006), available
online at https://www.nscc.com/impnot/notices/
notice2006/a6189.pdf.
5 PEX will remain a DTC service for other
functions not related to buy-ins.
6 15 U.S.C. 78q–1.
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]]>Agencies
[Federal Register Volume 71, Number 58 (Monday, March 27, 2006)]
[Notices]
[Pages 15235-15237]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-4367]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53524; File No. SR-CBOE-2006-22]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Extend the Duration of CBOE Rule 6.45A(b) Pertaining to
Orders Represented in Open Outcry
March 21, 2006.
Pursuant to section 19(b)(1) of the Securities Exchange Act of
1934(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby
given that on March 8, 2006, the Chicago Board Options Exchange,
Incorporated (``CBOE'' or ``Exchange'') filed with the Securities and
Exchange Commission (the ``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared by
the CBOE. 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\ which renders it effective upon
filing with the Commission.\5\ The Commission is
[[Page 15236]]
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 Exchange has asked the Commission to waive the 30-day
operative delay required by Rule 19b-4(f)(6)(iii), 17 CFR 240.19b-
4(f)(6)(iii). See discussion infra Section III.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CBOE proposes to extend the duration of CBOE Rule 6.45A(b) (the
``Rule''), which relates to the allocation of orders represented in
open outcry in equity option classes designated by the Exchange to be
traded on the CBOE Hybrid Trading System (``Hybrid'') through July 14,
2006. No other substantive changes are being made to the Rule. The text
of the proposed rule change is available on the CBOE's Internet Web
site (https://www.cboe.com), at the CBOE's principal office, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the CBOE included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed 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
In March 2005, the Commission approved revisions to CBOE Rule 6.45A
related to the introduction of Remote Market-Makers.\6\ Among other
things, the Rule, pertaining to the allocation of orders represented in
open outcry in equity options classes traded on Hybrid, was amended to
clarify that only in-crowd market participants would be eligible to
participate in open outcry trade allocations. In addition, the Rule was
amended to limit its duration until September 14, 2005, unless
otherwise extended. The duration of the Rule was thereafter extended
through December 14, 2005 and again through March 14, 2006.\7\ As the
duration period expired on March 14, 2006, the Exchange proposes to
extend the effectiveness of the Rule through July 14, 2006.\8\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 51366 (March 14,
2005), 70 FR 13217 (March 18, 2005) (SR-CBOE-2004-75).
\7\ See Securities Exchange Act Release Nos. 52423 (September
14, 2005), 70 FR 55194 (September 20, 2005) (extending the duration
of the Rule through December 14, 2005) and 52957 (December 15,
2005), 70 FR 76085 (December 22, 2005) (extending the Rule through
March 14, 2006).
\8\ In order to effect proprietary transactions on the floor of
the Exchange, in addition to complying with the requirements of the
Rule, members are also required to comply with the requirements of
Section 11(a)(1) of the Act, 15 U.S.C. 78k(a)(1), or qualify for an
exemption. Section 11(a)(1) restricts securities transactions of a
member of any national securities exchange effected on that exchange
for (i) the member's own account, (ii) the account of a person
associated with the member, or (iii) an account over which the
member or a person associated with the member exercises discretion,
unless a specific exemption is available. The Exchange issued a
regulatory circular to members informing them of the applicability
of these Section 11(a)(1) requirements when the duration of the Rule
was extended until December 14, 2005 and again when the duration of
the Rule was extended until March 14, 2006. See CBOE Regulatory
Circulars RG05-103 (November 2, 2005) and RG06-001 (January 3,
2006). The Exchange represents that it expects to issue a similar
regulatory circular to members reminding them of the applicability
of the section 11(a)(1) requirements with respect to the proposed
rule change. Telephone conversation between Jennifer Lamie, Managing
Senior Attorney, CBOE, and Ronesha A. Butler, Special Counsel,
Division of Market Regulation, Commission (March 14, 2006).
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act 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 the section 6(b)(5) \10\
requirements 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.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The CBOE does not believe that the proposed rule change will impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed 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 thirty days from the date on which it was filed,
or such shorter time as the Commission may designate if consistent with
the protection of investors and the public interest, it has become
effective pursuant to section 19(b)(3)(A) of the Act \11\ and Rule 19b-
4(f)(6) \12\ thereunder.\13\
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
\13\ Pursuant to Rule 19b-4(f)(6)(iii), the Exchange has given
the Commission written notice of its intent to file the proposed
rule change, along with a brief description and text of the proposed
rule change, at least five business days prior to the date on which
the Exchange filed the proposed rule change. See 17 CFR 240.19b-
4(f)(6)(iii).
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A proposed rule change filed under Commission Rule 19b-4(f)(6) \14\
normally does not become operative prior to thirty days after the date
of filing. The CBOE requests that the Commission waive the 30-day
operative delay, as specified in Rule 19b-4(f)(6)(iii), and designate
the proposed rule change to become operative immediately to allow the
Exchange to continue to operate under the existing allocation
parameters for orders represented in open outcry in Hybrid on an
uninterrupted basis. The Commission hereby grants the request. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because such waiver will allow the CBOE to continue to operate under
the Rule without interruption. For these reasons, the Commission
designates the proposed rule change as effective and operative upon
filing.\15\
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\14\ 17 CFR 240.19b-4(f)(6).
\15\ For the purposes only of waiving the operative date of this
proposal, 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 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 the 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:
[[Page 15237]]
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 No. SR-CBOE-2006-22 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 Number SR-CBOE-2006-22. 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-2006-22 and should be submitted on or before April
17, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-4367 Filed 3-24-06; 8:45 am]
BILLING CODE 8010-01-P
