Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change Regarding Its Board Review Authority, 32156-32158 [E6-8552]
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32156
Federal Register / Vol. 71, No. 106 / Friday, June 2, 2006 / Notices
Under Rule 19b–4(f)(6) of the Act,11
the proposal does not become operative
for 30 days after the date of its filing, or
such shorter time as the Commission
may designate if consistent with the
protection of investors and the public
interest. The Amex has requested that
the Commission waive the five-day prefiling requirement 12 and the 30-day
operative delay to allow for the
expeditious and accurate publication of
Amex rules. The Commission believes
that the Amex’s proposal raises no new
issues or regulatory concerns as it is
simply a proposal to reformat rule text
changes that have already been
approved by the Commission.
Therefore, the Commission, consistent
with the protection of investors and the
public interest, has determined to waive
the five-day pre-filing requirement and
the 30-day operative date so that the
proposal may take effect upon filing.13
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 Amex. 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–Amex–2006–52 and should
be submitted on or before June 23, 2006.
IV. Solicitation of Comments
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6–8538 Filed 6–1–06; 8:45 am]
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–Amex–2006–52 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–Amex–2006–52. 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
11 Id.
jlentini on PROD1PC65 with NOTICES
12 Amex
provided the Commission with written
notice of its intent to file the proposed rule change
one day prior to the filing date.
13 For purposes only of waiving the operative
delay for 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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BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–34–53872; File No. SR–
CBOE–2006–45]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of a
Proposed Rule Change Regarding Its
Board Review Authority
May 25, 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 May 5,
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, II, and
III below, which Items have been
prepared by CBOE. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
rules to clarify the authority of its Board
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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of Directors (‘‘Board’’) with respect to
actions or inactions of committees of
CBOE and CBOE staff. The text of the
proposed rule change is below.
Proposed new language is in italics;
proposed deletions are in [brackets].
*
*
*
*
*
Chicago Board Options Exchange,
Incorporated
Rules
*
*
*
*
*
Chapter II Organization and
Administration (Rules 2.1–2.40)
Part A—Committees (Rule 2.1)
Rule 2.1. Committees of the Exchange
(a)–(c) No change.
(d) General Duties and Powers of
Committees. Each committee shall
administer the provisions of the
Constitution and the rules of the
Exchange pertaining to matters within
its jurisdiction. In addition to any
powers and duties specifically granted
in the Constitution or Rules, e[E]ach
committee shall have only such other
powers and duties as may be delegated
to it by the Board of Directors. Each
committee is subject to the control and
supervision of the Board of Directors.
Part B—Board Review (Rule 2.2)
Rule 2.2. Power of the Board to Review
Exchange Decisions
In connection with any delegation to
a committee or committees pursuant to
Article EIGHTH of the Certificate of
Incorporation, the Board retains the
power and authority to review, affirm,
modify, suspend or overrule any and all
actions or inactions of committees and
of all officers, representatives or
designees of the Exchange; provided,
however, that such power and authority
shall not apply to (a) actions taken (or
inactions) pursuant to Chapters XVII,
XVIII and XIX of the Rules, unless
specifically provided for in those Rules,
or (b) actions taken by (or inactions of)
the Nominating Committee or Executive
Committee pursuant to Article IV of the
Constitution.
Part [B]C—Departments (Rule 2.15)
No change.
Part [C]D—Dues, Fees and Other
Charges (Rules 2.20–2.40)
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
CBOE included statements concerning
E:\FR\FM\02JNN1.SGM
02JNN1
Federal Register / Vol. 71, No. 106 / Friday, June 2, 2006 / Notices
the purpose of, and basis for, the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. CBOE has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
jlentini on PROD1PC65 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
CBOE’s Certificate of Incorporation
provides that the Board shall manage
the business and affairs of the Exchange
except to the extent that the authority,
powers, and duties of such management
shall be delegated to a committee or
committees of the Exchange that are
established pursuant to the Exchange’s
Constitution. The Certificate of
Incorporation and Constitution of CBOE
also provide that the Board may
establish one or more committees, each
of which shall have the authority,
power, and duties as may be prescribed
in the Exchange’s Constitution or Rules,
or by resolution of the Board.3
Over time the Board has established
various committees, several of which
have specific authorities described in
the Exchange’s Constitution or Rules.
Though CBOE Rule 2.1, Committees of
the Exchange, currently provides that
each committee ‘‘is subject to the
control and supervision of the Board,’’
this supervisory power alone does not
make explicit the power of the Board to
directly modify or overrule the action
(or inaction) of a committee when the
decisionmaking authority with respect
to the action has been delegated to the
committee in the Exchange’s Rules. The
proposed rule change will address this
by explicitly reserving the Board’s
review authority over all actions taken
by (or inactions of) committees of CBOE,
as well as CBOE staff. Specifically, this
proposed rule change seeks to adopt
CBOE Rule 2.2, Power of the Board to
Review Exchange Decisions, which
clarifies that the Board retains the
power and authority to review, affirm,
modify, suspend, or overrule any and all
actions or inactions of committees of
CBOE and of CBOE officers,
representatives, or designees. Proposed
CBOE Rule 2.2 would not apply to
actions taken (or inactions) pursuant to
Chapters XVII (Discipline), XVIII
(Arbitration), and XIX (Hearings and
Review) of the Exchange’s Rules, unless
3 See
Article EIGHTH of the CBOE Certificate of
Incorporation and Section 7.6 of the CBOE
Constitution.
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18:05 Jun 01, 2006
Jkt 208001
specifically provided for in those Rules,
or to actions taken by (or inactions of)
the Nominating Committee or Executive
Committee relating to the nominating
process pursuant to Article IV of the
Exchange’s Constitution. The proposed
rule change also seeks to amend CBOE
Rule 2.1 to make clear that committees
will only have such powers and duties
as are specifically granted in the
Exchange’s Constitution or Rules and
only such other powers and duties as
may be delegated to them by the Board.
2. Statutory Basis
The Exchange believes that, because it
clarifies the Board’s authority, the
proposed rule change is consistent with
the requirements of Section 6(b)(5) of
the Act 4 which requires, among other
things, that the rules of the Exchange be
designed to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, and in general, to protect
investors and the public interest. The
Exchange also believes that the
proposed rule change is consistent with
the requirements of Section 6(b)(1) of
the Act,5 which requires that an
exchange be so organized so as to have
the capacity to be able to carry out the
purposes of the Act and to comply, and
(subject to any rule or order of the
Commission pursuant to Section 17(d)6
or 19(g)(2)7 of the Act) to enforce
compliance by its members and persons
associated with its members, with the
provisions of the Act, the rules and
regulations thereunder, and the rules of
the Exchange.
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
No written comments were solicited
or received with respect to the proposed
rule change.
4 15
U.S.C. 78f(b)(5).
U.S.C. 78f(b)(1).
6 15 U.S.C. 78q(d).
7 15 U.S.C. 78s(g)(2).
5 15
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32157
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the Exchange consents,
the Commission shall:
(A) By order approve such proposed
rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
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
No. SR–CBOE–2006–45 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–2006–45. 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 Commissions
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 CBOE. All
E:\FR\FM\02JNN1.SGM
02JNN1
32158
Federal Register / Vol. 71, No. 106 / Friday, June 2, 2006 / Notices
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–2006–45 and should
be submitted on or before June 23, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6–8552 Filed 6–1–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53876; File No. SR–NYSE–
2006–16]
Self-Regulatory Organizations; New
York Stock Exchange, Inc. (n/k/a New
York Stock Exchange LLC); Order
Granting Approval of a Proposed Rule
Change and Amendment No. 1
Relating to the Listing and Trading of
Index-Linked Securities of Barclays
Bank PLC Linked to the Performance
of the Dow Jones—AIG Commodity
Index Total Return
May 25, 2006.
I. Introduction
jlentini on PROD1PC65 with NOTICES
On March 6, 2006, the New York
Stock Exchange, Inc. (n/k/a New York
Stock Exchange LLC) (‘‘NYSE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4 2
thereunder, a proposed rule change to
list and trade Index-Linked Securities of
Barclays Bank PLC (‘‘Barclays’’) linked
to the performance of the Dow Jones—
AIG Commodity Index Total Return (the
‘‘Index’’). On March 27, 2006, NYSE
filed Amendment No. 1 to the proposed
rule change. The proposed rule change,
as amended by Amendment No. 1, was
published for comment in the Federal
Register on April 21, 2006 for a 15-day
comment period.3 The Commission
received no comments on the proposal.
This order approves the proposed rule
change.
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. 53639
(April 12, 2006), 71 FR 20741 (the ‘‘Notice’’).
1 15
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II. Description of the Proposal
The NYSE proposes to list and trade
the Index-Linked Securities (‘‘Notes’’)
that will track the performance of the
Index pursuant to Section 703.19
(‘‘Other Securities’’) of the NYSE Listed
Company Manual (the ‘‘Manual’’).
Barclays intends to issue the Notes
under the name ‘‘iPathSM ExchangeTraded Notes.’’ The Exchange believes
that the Notes will conform to the initial
listing standards for equity securities
under Section 703.19 of the Manual
because Barclays is an affiliate of
Barclays PLC,4 an Exchange-listed
company in good standing. Under
Section 703.19 of the Manual, the
Exchange may approve for listing and
trading securities not otherwise covered
by the criteria of Sections 1 and 7 of the
Manual, provided the issue is suited for
auction market trading.5 The Notes will
have a minimum life of one year, the
minimum public market value of the
Notes at the time of issuance will
exceed $4 million, there will be at least
one million Notes outstanding, and
there will be at least 400 holders at the
time of issuance.
The Notes are a series of mediumterm debt securities of Barclays that
provide for a cash payment at maturity
or upon earlier exchange at the holder’s
option, based on the performance of the
Index. The principal amount of each
Note is $50. The Notes will trade on the
Exchange’s equity trading floor, and the
Exchange’s existing equity trading rules
will apply to trading the Notes. The
Notes will not have a minimum
principal amount that will be repaid
and, accordingly, payment on the Notes
prior to or at maturity may be less than
the original issue price of the Notes. In
fact, the value of the Index must
increase for the investor to receive at
least the $50 principal amount per Note
at maturity or upon exchange or
redemption. If the value of the Index
decreases or does not increase
sufficiently to offset the investor fee
(described below), the investor will
4 The issuer of the Notes, Barclays, is an affiliate
of an Exchange-listed company (Barclays PLC) and
not an Exchange-listed company itself. However,
Barclays, though an affiliate of Barclays PLC, would
exceed the Exchange’s earnings and minimum
tangible net worth requirements in Section 102 of
the Manual. Additionally, the Exchange states that
the Notes, when combined with the original issue
price of all other Note offerings of the issuer that
are listed on a national securities exchange (or
association), does not exceed 25% of the issuer’s
net worth. Telephone conference between Florence
E. Harmon, Senior Special Counsel, Division of
Market Regulation (‘‘Division’’), Commission, and
John Carey, Assistant General Counsel, Exchange,
on April 11, 2006 (‘‘April 11 Telephone
Conference’’).
5 See Securities Exchange Act Release No. 28217
(July 18, 1990), 55 FR 30056 (July 24, 1990).
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Frm 00131
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receive less, and possibly significantly
less, than the $50 principal amount per
Note. In addition, holders of the Notes
will not receive any interest payments
from the Notes. The Notes will have a
term of 30 years. The Notes are not
callable.6
Holders who have not previously
redeemed their Notes will receive a cash
payment at maturity equal to the
principal amount of their Notes times
the index factor on the Final Valuation
Date (as defined below) minus the
investor fee on the Final Valuation Date.
The ‘‘index factor’’ on any given day
will be equal to the closing value of the
Index on that day divided by the initial
index level. The ‘‘initial index level’’ is
the closing value of the Index on the
date of issuance of the Notes (the ‘‘Trade
Date’’), and the ‘‘final index level’’ is the
closing value of the Index on the Final
Valuation Date. The investor fee is equal
to 0.75% per year times the principal
amount of a holder’s Notes times the
index factor, calculated on a daily basis
in the following manner: The investor
fee on the Trade Date will equal zero.
On each subsequent calendar day until
maturity or early redemption, the
investor fee will increase by an amount
equal to 0.75% times the principal
amount of a holder’s Notes times the
index factor on that day (or, if such day
is not a trading day, the index factor on
the immediately preceding trading day)
divided by 365. The investor fee is the
only fee holders will be charged in
connection with their ownership of the
Notes.
Prior to maturity, holders may redeem
their Notes on any Redemption Date
(defined below) during the term of the
Notes, provided that they present at
least 50,000 Notes for redemption, or
they act through a broker or other
financial intermediaries (such as a bank
or other financial institution not
required to register as a broker-dealer to
engage in securities transactions) that
are willing to bundle their Notes for
redemption with other investors’ Notes.
If a holder chooses to redeem his Notes,
the holder will receive a cash payment
on the applicable Redemption Date
equal to the principal amount of his
Notes times the index factor on the
applicable Valuation Date (defined
below) minus the investor fee on the
applicable Valuation Date. A
‘‘Redemption Date’’ is the third business
day following a Valuation Date (other
than the Final Valuation Date (defined
below)). A ‘‘Valuation Date’’ is each
Thursday from the first Thursday after
issuance of the Notes until the last
Thursday before maturity of the Notes
6 April
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02JNN1
]]>Agencies
[Federal Register Volume 71, Number 106 (Friday, June 2, 2006)]
[Notices]
[Pages 32156-32158]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-8552]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34-53872; File No. SR-CBOE-2006-45]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of a Proposed Rule Change Regarding Its
Board Review Authority
May 25, 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 May 5, 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, II, and III below, which Items have been prepared by CBOE. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its rules to clarify the authority
of its Board of Directors (``Board'') with respect to actions or
inactions of committees of CBOE and CBOE staff. The text of the
proposed rule change is below. Proposed new language is in italics;
proposed deletions are in [brackets].
* * * * *
Chicago Board Options Exchange, Incorporated
Rules
* * * * *
Chapter II Organization and Administration (Rules 2.1-2.40)
Part A--Committees (Rule 2.1)
Rule 2.1. Committees of the Exchange
(a)-(c) No change.
(d) General Duties and Powers of Committees. Each committee shall
administer the provisions of the Constitution and the rules of the
Exchange pertaining to matters within its jurisdiction. In addition to
any powers and duties specifically granted in the Constitution or
Rules, e[E]ach committee shall have only such other powers and duties
as may be delegated to it by the Board of Directors. Each committee is
subject to the control and supervision of the Board of Directors.
Part B--Board Review (Rule 2.2)
Rule 2.2. Power of the Board to Review Exchange Decisions
In connection with any delegation to a committee or committees
pursuant to Article EIGHTH of the Certificate of Incorporation, the
Board retains the power and authority to review, affirm, modify,
suspend or overrule any and all actions or inactions of committees and
of all officers, representatives or designees of the Exchange;
provided, however, that such power and authority shall not apply to (a)
actions taken (or inactions) pursuant to Chapters XVII, XVIII and XIX
of the Rules, unless specifically provided for in those Rules, or (b)
actions taken by (or inactions of) the Nominating Committee or
Executive Committee pursuant to Article IV of the Constitution.
Part [B]C--Departments (Rule 2.15)
No change.
Part [C]D--Dues, Fees and Other Charges (Rules 2.20-2.40)
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, CBOE included statements
concerning
[[Page 32157]]
the purpose of, and basis for, the proposed rule change and discussed
any comments it received on the proposed rule change. The text of these
statements may be examined at the places specified in Item IV below.
CBOE has prepared summaries, set forth in Sections A, B, and C below,
of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
CBOE's Certificate of Incorporation provides that the Board shall
manage the business and affairs of the Exchange except to the extent
that the authority, powers, and duties of such management shall be
delegated to a committee or committees of the Exchange that are
established pursuant to the Exchange's Constitution. The Certificate of
Incorporation and Constitution of CBOE also provide that the Board may
establish one or more committees, each of which shall have the
authority, power, and duties as may be prescribed in the Exchange's
Constitution or Rules, or by resolution of the Board.\3\
---------------------------------------------------------------------------
\3\ See Article EIGHTH of the CBOE Certificate of Incorporation
and Section 7.6 of the CBOE Constitution.
---------------------------------------------------------------------------
Over time the Board has established various committees, several of
which have specific authorities described in the Exchange's
Constitution or Rules. Though CBOE Rule 2.1, Committees of the
Exchange, currently provides that each committee ``is subject to the
control and supervision of the Board,'' this supervisory power alone
does not make explicit the power of the Board to directly modify or
overrule the action (or inaction) of a committee when the
decisionmaking authority with respect to the action has been delegated
to the committee in the Exchange's Rules. The proposed rule change will
address this by explicitly reserving the Board's review authority over
all actions taken by (or inactions of) committees of CBOE, as well as
CBOE staff. Specifically, this proposed rule change seeks to adopt CBOE
Rule 2.2, Power of the Board to Review Exchange Decisions, which
clarifies that the Board retains the power and authority to review,
affirm, modify, suspend, or overrule any and all actions or inactions
of committees of CBOE and of CBOE officers, representatives, or
designees. Proposed CBOE Rule 2.2 would not apply to actions taken (or
inactions) pursuant to Chapters XVII (Discipline), XVIII (Arbitration),
and XIX (Hearings and Review) of the Exchange's Rules, unless
specifically provided for in those Rules, or to actions taken by (or
inactions of) the Nominating Committee or Executive Committee relating
to the nominating process pursuant to Article IV of the Exchange's
Constitution. The proposed rule change also seeks to amend CBOE Rule
2.1 to make clear that committees will only have such powers and duties
as are specifically granted in the Exchange's Constitution or Rules and
only such other powers and duties as may be delegated to them by the
Board.
2. Statutory Basis
The Exchange believes that, because it clarifies the Board's
authority, the proposed rule change is consistent with the requirements
of Section 6(b)(5) of the Act \4\ which requires, among other things,
that the rules of the Exchange be designed to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, and in general, to protect investors and the public
interest. The Exchange also believes that the proposed rule change is
consistent with the requirements of Section 6(b)(1) of the Act,\5\
which requires that an exchange be so organized so as to have the
capacity to be able to carry out the purposes of the Act and to comply,
and (subject to any rule or order of the Commission pursuant to Section
17(d)\6\ or 19(g)(2)\7\ of the Act) to enforce compliance by its
members and persons associated with its members, with the provisions of
the Act, the rules and regulations thereunder, and the rules of the
Exchange.
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\4\ 15 U.S.C. 78f(b)(5).
\5\ 15 U.S.C. 78f(b)(1).
\6\ 15 U.S.C. 78q(d).
\7\ 15 U.S.C. 78s(g)(2).
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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
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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission shall:
(A) By order approve such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
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 No. SR-CBOE-2006-45 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-2006-45. 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 Commissions 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 CBOE.
All
[[Page 32158]]
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-2006-45 and should be
submitted on or before June 23, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
J. Lynn Taylor,
Assistant Secretary.
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\8\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E6-8552 Filed 6-1-06; 8:45 am]
BILLING CODE 8010-01-P
