Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Increase the Class Quoting Limit in the Option Class Apple Computer, 17932-17934 [E6-5084]
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17932
Federal Register / Vol. 71, No. 67 / Friday, April 7, 2006 / Notices
Section
205(a) of the Act (Pub. L. 109–53; 119
Stat. 462, 483; 19 U.S.C. 4034) provides
that certain entries of textile or apparel
goods of designated eligible countries
that are parties to the Dominican
Republic—Central America—United
States Free Trade Agreement (CAFTA–
DR) made on or after January 1, 2004
may be liquidated or reliquidated at the
applicable rate of duty for those goods
established in the Schedule of the
United States to Annex 3.3 of the
CAFTA–DR. Section 205(b) of the Act
requires the USTR to determine, in
accordance with Article 3.20 of the
CAFTA–DR, which CAFTA–DR
countries are eligible countries for
purposes of Section 205(a). Article 3.20
provides that importers may claim
retroactive duty treatment for imports of
certain textile or apparel goods entered
on or after January 1, 2004 and before
the entry into force of CAFTA–DR from
those CAFTA–DR countries that will
provide reciprocal retroactive duty
treatment or a benefit for textile or
apparel goods that is equivalent to
retroactive duty treatment.
Pursuant to Section 205(b) of the Act,
I have determined that Honduras and
Nicaragua will each provide an
equivalent benefit for textile or apparel
goods of the United States within the
meaning of Article 3.20 of the CAFTA–
DR. I therefore determine that Honduras
and Nicaragua are eligible countries for
purposes of Section 205 of the Act.
SUPPLEMENTARY INFORMATION:
Rob Portman,
U.S. Trade Representative.
[FR Doc. E6–5074 Filed 4–6–06; 8:45 am]
BILLING CODE 3190–D2–P
1934 requires transfer agents to register
with the Commission, the Comptroller
of the Currency, the Board of Governors
of the Federal Reserve System, or the
Federal Deposit Insurance Corporation,
and to amend their registration.
It is estimated that on an annual basis,
the Commission will receive
approximately 100 applications for
registration on Form TA–1 from transfer
agents required to register as such with
the Commission. Included in this figure
are amendments made to Form TA–1 as
required by Rule 17Ac2–1(c). Based
upon past submissions, the staff
estimates that the average number of
hours necessary to comply with the
requirements of Rule 17Ac2–1 is one
and one-half hours, with a total burden
of 150 hours.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
Written comments regarding the
above information should be directed to
the following persons: (i) Desk Officer
for the Securities and Exchange
Commission, Office of Information and
Regulatory Affairs, Office of
Management and Budget, Room 10102,
New Executive Office Building,
Washington, DC 20503 or by sending an
e-mail to: David_Rostker@omb.eop.gov;
and (ii) R. Corey Booth, Director/Chief
Information Officer, C/O Shirley
Martinson, 6432 General Green Way,
Alexandria, Virginia 22312 or send an email to: PRA_Mailbox@sec.gov.
Comments must be submitted to the
Office of Management and Budget
within 30 days of this notice.
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Dated: March 30, 2006
Nancy M. Morris,
Secretary.
[FR Doc. E6–5082 Filed 4–6–06; 8:45 am]
BILLING CODE 8010–01–P
Upon written request, copies available
from: Securities and Exchange
Commission, Office of Filings and
Information Services, Washington, DC
20549.
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
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Extension:
Rule 17Ac2–1, SEC File No. 270–95, OMB
Control No. 3235–0084.
FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: [71 FR 16350, March
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
requests for approval of extension on
the following rule: Rule 17Ac2–1.
Rule 17Ac2–1 (17 CFR 240.17Ac2–1)
under the Securities Exchange Act of
STATUS:
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31, 2006].
Closed Meeting.
PLACE: 100 F Street, NE., Washington,
DC.
ANNOUNCEMENT OF ADDITIONAL MEETING:
Additional Meeting (Week of April 3,
2006).
A Closed Meeting has been scheduled
for Wednesday, April 5, 2006 at 5:15
p.m.
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Commissioners and certain staff
members who have an interest in the
matter will attend the Closed Meeting.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(5), (7), (9)(B) and (10)
and 17 CFR 200.402(a)(5), (7), 9(ii) and
(10) permit consideration of the
scheduled matter at the Closed Meeting.
Commissioner Nazareth, as duty
officer, voted to consider the item listed
for the closed meeting in closed session,
and determined that no earlier notice
thereof was possible.
The subject matter of the Closed
Meeting scheduled for Wednesday,
April 5, 2006 will be: Institution and
settlement of injunctive action.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items. For further
information and to ascertain what, if
any, matters have been added, deleted
or postponed, please contact: The Office
of the Secretary at (202) 551–5400.
Dated: April 4, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. 06–3390 Filed 4–5–06; 11:15 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53586; File No. SR–CBOE–
2006–29]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Increase the Class
Quoting Limit in the Option Class
Apple Computer
April 3, 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 March 16,
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
designated this proposal as one
constituting a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule under
1 15
2 17
E:\FR\FM\07APN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
07APN1
Federal Register / Vol. 71, No. 67 / Friday, April 7, 2006 / Notices
Section 19(b)(3)(A)(i) of the Act,3 and
Rule 19b–4(f)(1) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to increase the class
quoting limit in the option class Apple
Computer (‘‘AAPL’’). The text of the
proposed rule change is available on
CBOE’s Web site (https://
www.cboe.com), at the CBOE’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
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 CBOE has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
CBOE Rule 8.3A establishes class
quoting limits (‘‘CQLs’’) for each class
traded on the Hybrid Trading System.5
A CQL is the maximum number of
quoters that may quote electronically in
a given product and the current levels
are established from 25–40, depending
on the trading activity of the particular
product.
CBOE Rule 8.3A, Interpretation .01(c)
provides a procedure by which the
President of the Exchange may increase
the CQL for a particular product. In this
regard, the President of the Exchange
may increase the CQL in exceptional
circumstances, which would include
substantial trading volume, whether
actual or expected.6 The effect of an
increase in the CQL is procompetitive in
that it increases the number of market
wwhite on PROD1PC61 with NOTICES
3 15
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
5 See CBOE Rule 8.3A.01.
6 Any actions taken by the President of the
Exchange pursuant to this paragraph must be
submitted to the Commission in a rule filing
pursuant to Section 19(b)(3)(A) of the Act. CBOE
Rule 8.3A.01(c).
4 17
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participants that may quote
electronically in a product. The purpose
of this filing is to increase the CQL in
the option class AAPL from its current
limit of 44 to 47.7
AAPL is one of the most active equity
option classes traded on the Exchange,
and consistently ranks among the top
classes in national average daily trading
volume. Increasing the CQL in AAPL
options would enable the Exchange to
enhance the liquidity offered, thereby
offering deeper and more liquid
markets.
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.8
Specifically, the Exchange believes the
proposed rule change is consistent with
the requirements of Section 6(b)(5) 9 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.
17933
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2006–29 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
B. Self-Regulatory Organization’s
20549–1090.
Statement on Burden on Competition
All submissions should refer to File
CBOE does not believe that the
Number SR–CBOE–2006–29. This file
proposed rule change will impose any
number should be included on the
burden on competition that is not
subject line if e-mail is used. To help the
necessary or appropriate in furtherance
Commission process and review your
of the purposes of the Act.
comments more efficiently, please use
only one method. The Commission will
C. Self-Regulatory Organization’s
post all comments on the Commission’s
Statement on Comments on the
Internet Web site (https://www.sec.gov/
Proposed Rule Change Received From
rules/sro.shtml). Copies of the
Members, Participants, or Others
submission, all subsequent
The Exchange neither received nor
amendments, all written statements
solicited written comments on the
with respect to the proposed rule
proposal.
change that are filed with the
III. Date of Effectiveness of the
Commission, and all written
Proposed Rule Change and Timing for
communications relating to the
Commission Action
proposed rule change between the
Commission and any person, other than
The foregoing proposed rule change
those that may be withheld from the
will take effect upon filing with the
public in accordance with the
Commission pursuant to Section
19(b)(3)(A)(i) of the Act 10 and Rule 19b– provisions of 5 U.S.C. 552, will be
available for inspection and copying in
4(f)(1) thereunder,11 because it
the Commission’s Public Reference
constitutes a stated policy, practice, or
Room. Copies of such filing also will be
interpretation with respect to the
available for inspection and copying at
meaning, administration, or
the principal office of the CBOE. All
enforcement of an existing rule.
comments received will be posted
At any time within 60 days of the
without change; the Commission does
filing of the proposed rule change, the
not edit personal identifying
information from submissions. You
7 CBOE previously increased the CQL in AAPL
from 40 to 44 on April 21, 2005. See Securities
should submit only information that
Exchange Act Release No. 51720 (May 19, 2005), 70
you wish to make available publicly. All
FR 30164 (May 25, 2005).
submissions should refer to File
8 15 U.S.C. 78f(b).
Number SR–CBOE–2006–29 and should
9 15 U.S.C. 78f(b)(5).
be submitted on or before April 28,
10 15 U.S.C. 78s(b)(3)(A)(i).
2006.
11 17 CFR 240.19b–4(f)(1).
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17934
Federal Register / Vol. 71, No. 67 / Friday, April 7, 2006 / Notices
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Nancy M. Morris,
Secretary.
[FR Doc. E6–5084 Filed 4–6–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53585; File Nos. SR–NYSE–
2004–43 and SR–NYSE–2005–32]
Self-Regulatory Organizations; New
York Stock Exchange, Inc.; Order
Approving Proposed Rule Change
Relating to the Real-Time NYSE
OpenBook Service and OpenBook
Fees and Order Approving Proposed
Rule Change Relating to the Contract
Terms Governing Vendor Displays of
NYSE OpenBook Data, and Notice of
Filing and Order Granting Accelerated
Approval of Amendment No. 2 Thereto
March 31, 2006.
I. Introduction
On August 11, 2004, the New York
Stock Exchange, Inc. (‘‘NYSE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
update NYSE OpenBook
(‘‘OpenBook’’) limit order information
in real time and to increase the monthly
per-terminal fee for the real-time
OpenBook service (‘‘Real-Time Fee
Proposal’’).3 The Real-Time Fee
Proposal was published for comment in
the Federal Register on September 2,
2004.4 The Commission received nine
letters regarding the Real-Time Fee
Proposal.5 Several commenters on the
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 File No. SR–NYSE–2004–43.
4 See Securities Exchange Act Release No. 50275
(August 26, 2004), 69 FR 53760.
5 See letters to Jonathan G. Katz, Secretary,
Commission, from Lisa M. Utasi, President, and
Kimberly Unger, Executive Director, The Security
Traders Association of New York, Inc. (‘‘STANY’’),
dated September 22, 2004 (‘‘STANY Letter’’);
Richard A. Korhammer, Chief Executive Officer,
Lava Trading Inc. (‘‘Lava’’), dated September 23,
2004 (‘‘Lava Letter’’); Thomas F. Secunda,
Bloomberg L.P. (‘‘Bloomberg’’), dated September 23,
2004 (‘‘Bloomberg Letter I’’); Ellen L.S. Koplow,
Executive Vice President and General Counsel,
Ameritrade Holding Corporation, dated September
23, 2004 (‘‘Ameritrade Letter I’’); Christopher P.
Gilkerson, Vice President and Associate General
Counsel, Charles Schwab (‘‘Schwab’’), dated
September 23, 2004 (‘‘Schwab Letter’’); David
Colker, Chief Executive Office and President,
National Stock Exchange (‘‘NSX’’), dated September
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Real-Time Fee Proposal argued that the
existing OpenBook contractual
provisions, which prohibit vendors from
consolidating OpenBook data with data
from other market centers, are
anticompetitive and discriminatory.6
Other commenters believed that the
NYSE should file for public comment
and Commission review and approval
the contract terms that would govern the
distribution of OpenBook data.7
On May 13, 2005, the NYSE filed a
proposed rule change containing
proposed contract terms, set forth in a
revised version of Exhibit C to the
‘‘Agreement for the Receipt and Use of
Market Data,’’ that would govern the
displays and dissemination of
OpenBook data (the ‘‘Exhibit C
Proposal’’).8 The NYSE filed
Amendment No. 1 to the Exhibit C
Proposal on June 16, 2005.9 The Exhibit
C Proposal, as amended by Amendment
No. 1 (‘‘Original Exhibit C Proposal’’),
was published for comment in the
24, 2004 (‘‘NSX Letter I’’); Eliot Wagner, Chair,
Technology and Regulation Committee, the
Securities Industry Association (‘‘SIA’’), and
Christopher Gilkerson, Chair, Market Data
Subcommittee, SIA, dated October 22, 2004 (‘‘SIA
Letter I’’); Meyer S. Furcher, Chairman and Chief
Executive Officer, Philadelphia Stock Exchange,
Inc. dated October 11, 2004; and letter from R.
Bruce Josten, Executive Vice President, Government
Affairs, U.S. Chamber of Commerce, to the
Honorable William Donaldson, Chairman,
Commission, dated September 27, 2004 (‘‘U.S.
Chamber of Commerce Letter I’’).
6 See, e.g., Bloomberg Letter I (the OpenBook
contract terms are unfairly discriminatory because
some, but not all, OpenBook subscribers would be
able to consolidate OpenBook information with
limit order information from other markets);
Schwab Letter (the current contractual provisions
governing the distribution of OpenBook data
discriminate against vendors and their clients, and
are anticompetitive, because they restrict
redistribution and consolidation with other
markets’ data); Ameritrade Letter I (the proposal
discriminates among market participants because
vendors, unlike institutions and professionals, are
prohibited from enhancing OpenBook data or
commingling it with data from other market
centers); and SIA Letter I (some members have
suggested that the existing OpenBook contractual
provisions may be anticompetitive because they
restrict redistribution and consolidation with other
markets’ data), supra note 5.
7 See, e.g., Schwab Letter, SIA Letter I, and U.S.
Chamber of Commerce Letter I, supra note 5. See
also NSX Letter I and Lava Letter, supra note 5 (the
contract terms should be included so that the public
can assess the impact of the proposal on
transparency and competition among market
centers).
8 File No. SR–NYSE–2005–32. The Commission
received a comment letter on June 3, 2005 from
Bloomberg. See letter from Kim Borg, Bloomberg, to
Annette L. Nazareth, Director, Division of Market
Regulation, Commission, dated June 2, 2005.
Bloomberg resubmitted this comment letter on July
22, 2005. See supra note 11.
9 In Amendment No. 1 provided a copy of its
current Exhibit C marked to indicate the changes
that the NYSE proposed. NYSE did not propose any
substantive changes to the proposal in Amendment
No. 1.
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Federal Register on July 1, 2005.10 The
Commission received six comment
letters regarding the Original Exhibit C
Proposal.11 The NYSE responded to the
comments regarding the Real-Time Fee
Proposal and the Original Exhibit C
Proposal on September 30, 2005.12 The
NYSE filed Amendment No. 2 to the
Exhibit C Proposal on February 26,
2006.13 This order approves the RealTime Fee Proposal and the Exhibit C
Proposal, as amended by Amendment
No. 2. In addition, the Commission is
publishing notice to solicit comment on,
and is simultaneously approving, on an
accelerated basis, Amendment No. 2 to
the Exhibit C Proposal.
II. Background
The OpenBook service is a
compilation of limit order data that the
NYSE provides to market data vendors,
broker-dealers, private network
providers, and other entities through a
data feed. The Commission approved
the current fees for the OpenBook
service in 2001.14 In its 2001 OpenBook
proposal, the NYSE described, but did
not file with the Commission, the
contractual provisions governing market
data vendors’ receipt and display of
OpenBook data. These provisions,
which are in effect today, prohibit
market data vendors from providing
displays that integrate OpenBook data
10 See Securities Exchange Act Release No. 51925
(June 24, 2005), 70 FR 38226.
11 See letters to Jonathan G. Katz, Secretary,
Commission, from David Colker, Chief Executive
Officer and President, NSX, dated July 20, 2005
(‘‘NSX Letter II’’); Phylis M. Esposito, Executive
Vice President, Chief Strategy Officer, Ameritrade,
dated July 22, 2005 (‘‘Ameritrade Letter II’’);
Christopher Gilkerson, Chair, SIA Technology and
Regulation Committee and Andrew Wels, Chair,
SIA Market Data Subcommittee, dated July 22, 2005
(‘‘SIA Letter II’’); Kim Bang, Bloomberg, dated July
22, 2005 (‘‘Bloomberg Letter II’’); Kim Bang,
Bloomberg, dated October 19, 2005 (‘‘Bloomberg
Letter III’’); and letter to the Honorable Cynthia
Glassman, Acting Chairman, Commission, from R.
Bruce Josten, Executive Vice President, Government
Affairs, U.S. Chamber of Commerce, dated July 22,
2005 (‘‘U.S. Chamber of Commerce Letter II’’).
12 See letters from Mary Yeager, Assistant
Secretary, NYSE, to Jonathan G. Katz, Secretary,
Commission, dated September 30, 2005 (‘‘NYSE
Response Letters’’). One of the NYSE Response
Letters addresses the comments raised by
Bloomberg, while the other NYSE Response Letter
addresses the comments of the remaining
commenters.
13 As described more fully below, Amendment
No. 2 revises Exhibit C to permit a vendor to
provide a display that integrates OpenBook
information with information from other markets
without attributing the OpenBook information to
the NYSE, provided the vendor satisfies certain
requirements. Amendment No. 2 replaces and
supersedes the originally proposed Exhibit C in its
entirety.
14 See Securities Exchange Act Release No. 45138
(December 7, 2001), 66 FR 64895 (December 14,
2001) (order approving File No. SR–NYSE–2001–
42) (‘‘OpenBook Fee Order’’).
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]]>Agencies
[Federal Register Volume 71, Number 67 (Friday, April 7, 2006)]
[Notices]
[Pages 17932-17934]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-5084]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53586; File No. SR-CBOE-2006-29]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Increase the Class Quoting Limit in the Option Class
Apple Computer
April 3, 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 March 16, 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 designated this proposal as one constituting a stated
policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule under
[[Page 17933]]
Section 19(b)(3)(A)(i) of the Act,\3\ and Rule 19b-4(f)(1)
thereunder,\4\ which renders the proposal effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(i).
\4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to increase the class quoting limit in the option
class Apple Computer (``AAPL''). The text of the proposed rule change
is available on CBOE's Web site (https://www.cboe.com), at the CBOE'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 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 CBOE has prepared summaries, set forth in Sections
A, B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
CBOE Rule 8.3A establishes class quoting limits (``CQLs'') for each
class traded on the Hybrid Trading System.\5\ A CQL is the maximum
number of quoters that may quote electronically in a given product and
the current levels are established from 25-40, depending on the trading
activity of the particular product.
---------------------------------------------------------------------------
\5\ See CBOE Rule 8.3A.01.
---------------------------------------------------------------------------
CBOE Rule 8.3A, Interpretation .01(c) provides a procedure by which
the President of the Exchange may increase the CQL for a particular
product. In this regard, the President of the Exchange may increase the
CQL in exceptional circumstances, which would include substantial
trading volume, whether actual or expected.\6\ The effect of an
increase in the CQL is procompetitive in that it increases the number
of market participants that may quote electronically in a product. The
purpose of this filing is to increase the CQL in the option class AAPL
from its current limit of 44 to 47.\7\
---------------------------------------------------------------------------
\6\ Any actions taken by the President of the Exchange pursuant
to this paragraph must be submitted to the Commission in a rule
filing pursuant to Section 19(b)(3)(A) of the Act. CBOE Rule
8.3A.01(c).
\7\ CBOE previously increased the CQL in AAPL from 40 to 44 on
April 21, 2005. See Securities Exchange Act Release No. 51720 (May
19, 2005), 70 FR 30164 (May 25, 2005).
---------------------------------------------------------------------------
AAPL is one of the most active equity option classes traded on the
Exchange, and consistently ranks among the top classes in national
average daily trading volume. Increasing the CQL in AAPL options would
enable the Exchange to enhance the liquidity offered, thereby offering
deeper and more liquid markets.
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.\8\ Specifically, the Exchange believes the
proposed rule change is consistent with the requirements of Section
6(b)(5) \9\ 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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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of 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 received nor solicited written comments on the
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change will take effect upon filing
with the Commission pursuant to Section 19(b)(3)(A)(i) of the Act \10\
and Rule 19b-4(f)(1) thereunder,\11\ because it constitutes a stated
policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule.
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\10\ 15 U.S.C. 78s(b)(3)(A)(i).
\11\ 17 CFR 240.19b-4(f)(1).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-CBOE-2006-29 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 20549-1090.
All submissions should refer to File Number SR-CBOE-2006-29. 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-2006-29 and should be submitted on or before April
28, 2006.
[[Page 17934]]
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-5084 Filed 4-6-06; 8:45 am]
BILLING CODE 8010-01-P
