Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Approving Proposed Rule Change Relating to the Exposure Period for Crossing Orders in the Hybrid Trading System, 17529 [E6-5034]

Download as PDF 17529 Federal Register / Vol. 71, No. 66 / Thursday, April 6, 2006 / Notices 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 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 submission should refer to File Number SR–CBOE–2006–14 and should be submitted on or before April 27, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 Nancy M. Morris, Secretary. [FR Doc. E6–4989 Filed 4–5–06; 8:45 am] with Section 6(b)(5) of the Act.6 The Commission believes that, in the electronic environment of Hybrid, reducing the exposure period to 3 seconds could facilitate the prompt execution of orders, while providing participants in Hybrid with an adequate opportunity to compete for exposed bids and offers. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,7 that the proposed rule change (SR–CBOE–2006– 09) is hereby approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 Nancy M. Morris, Secretary. [FR Doc. E6–5034 Filed 4–5–06; 8:45 am] BILLING CODE 8010–01–P BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53580; File No. SR–NASD– 2006–040] [Release No. 34–53567; File No. SR–CBOE– 2006–09] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Expand NASD’s Order Audit Trail System Exemptive Authority To Include Recording Requirements Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Approving Proposed Rule Change Relating to the Exposure Period for Crossing Orders in the Hybrid Trading System March 30, 2006. March 29, 2006. On January 30, 2006, the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ or ‘‘Exchange’’), filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 to decrease the exposure period for crossing orders in its Hybrid Trading System (‘‘Hybrid’’) from 10 seconds to 3 seconds. The proposed rule change was published for comment in the Federal Register on February 22, 2006.3 The Commission received no comments on the proposal. After careful consideration, the Commission finds that the proposed rule change is consistent with the requirements of Section 6(b) of the Act 4 and the rules and regulations thereunder applicable to a national securities exchange,5 and in particular sroberts on PROD1PC70 with NOTICES 8 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 53278 (February 13, 2006), 71 FR 9184. 4 15 U.S.C. 78f(b). 5 In approving this proposal, the Commission has considered the proposed rule’s impact on 1 15 VerDate Aug<31>2005 19:52 Apr 05, 2006 Jkt 208001 Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 2 thereunder, notice is hereby given that on March 28, 2006, the National Association of Securities Dealers, Inc. (‘‘NASD’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by NASD. The Commission is publishing this notice and order to solicit comments on the proposed rule change from interested persons and to approve the proposal on an accelerated basis. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change NASD is proposing to expand NASD’s current Order Audit Trail System (OATS) exemptive authority to include recording requirements. Below is the efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 6 15 U.S.C. 78f(b)(5). 7 15 U.S.C. 78s(b)(2). 8 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 text of the proposed rule change. Proposed new language is in italics; proposed deletions are in [brackets].3 * * * * * 6950. Order Audit Trail System * * * * * 6955. Order Data Transmission Requirements (a) through (c) No Change. [(d) Exemptions] [(1) Pursuant to the Rule 9600 Series, the staff, for good cause shown after taking into consideration all relevant factors, may exempt, subject to specified terms and conditions, a member from the order data transmission requirements of this Rule for manual orders, if such exemption is consistent with the protection of investors and the public interest, and the member meets the following criteria:] [(A) the member and current control affiliates and associated persons of the member have not been subject within the last five years to any final disciplinary action, and within the last ten years to any disciplinary action involving fraud;] [(B) The member has annual revenues of less than $2 million;] [(C) The member does not conduct any market making activities in Nasdaq Stock Market equity securities;] [(D) The member does not execute principal transactions with its customers (with limited exception for principal transactions executed pursuant to error corrections); and] [(E) The member does not conduct clearing or carrying activities for other firms.] [(2) An exemption provided pursuant to this paragraph (d) shall not exceed a period of two years. At or prior to the expiration of a grant of exemptive relief under this paragraph (d), a member meeting the criteria set forth in paragraph (d)(1) may request, pursuant to the Rule 9600 Series, a subsequent exemption, which will be considered at the time of the request, consistent with the protection of investors and the public interest.] [(3) This paragraph shall be in effect until May 8, 2011.] * * * * * 6958. Exemption to the Order Recording and Data Transmission Requirements (a) Pursuant to the Rule 9600 Series, the staff, for good cause shown after 3 The proposed changes indicated herein are based on rule text approved by the SEC on September 28, 2005, which become effective on May 8, 2006. See Securities Exchange Act Release No. 52521 (September 28, 2005), 70 FR 57909 (October 4, 2005) (File No. SR–NASD–00–23). E:\FR\FM\06APN1.SGM 06APN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 71, Number 66 (Thursday, April 6, 2006)]
[Notices]
[Page 17529]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-5034]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53567; File No. SR-CBOE-2006-09]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Approving Proposed Rule Change Relating to the 
Exposure Period for Crossing Orders in the Hybrid Trading System

March 29, 2006.
    On January 30, 2006, the Chicago Board Options Exchange, 
Incorporated (``CBOE'' or ``Exchange''), filed with the Securities and 
Exchange Commission (``Commission'') a proposed rule change pursuant to 
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ 
and Rule 19b-4 thereunder,\2\ to decrease the exposure period for 
crossing orders in its Hybrid Trading System (``Hybrid'') from 10 
seconds to 3 seconds. The proposed rule change was published for 
comment in the Federal Register on February 22, 2006.\3\ The Commission 
received no comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\  See Securities Exchange Act Release No. 53278 (February 13, 
2006), 71 FR 9184.
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    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of Section 6(b) of the 
Act \4\ and the rules and regulations thereunder applicable to a 
national securities exchange,\5\ and in particular with Section 6(b)(5) 
of the Act.\6\ The Commission believes that, in the electronic 
environment of Hybrid, reducing the exposure period to 3 seconds could 
facilitate the prompt execution of orders, while providing participants 
in Hybrid with an adequate opportunity to compete for exposed bids and 
offers.
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    \4\ 15 U.S.C. 78f(b).
    \5\ In approving this proposal, the Commission has considered 
the proposed rule's impact on efficiency, competition, and capital 
formation. See 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-CBOE-2006-09) is hereby 
approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-5034 Filed 4-5-06; 8:45 am]
BILLING CODE 8010-01-P

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