Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change Regarding Market-Maker Appointments, 42690-42691 [E6-11983]

Download as PDF 42690 Federal Register / Vol. 71, No. 144 / Thursday, July 27, 2006 / Notices 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 by the Exchange on this proposal. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act 9 and subparagraph (f)(6) of Rule 19b–4 10 thereunder because it does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate; and the Exchange has given the Commission written notice of its intention to file the proposed rule change at least five business days prior to filing. 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. 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. 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 the rule change. The Commission believes that because the proposal would extend the current allocation algorithm to the Exchange’s new class of market participants, SROTs, the proposal raises no new regulatory concerns. Therefore, the Commission, consistent with the protection of investors and the public interest, has determined to waive the five-day prefiling requirement and the 30-day operative date so that the proposal may take effect upon filing.13 rwilkins on PROD1PC63 with NOTICES 9 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 11 Id. 12 Amex provided the Commission with written notice of its intent to file the proposed rule change three days prior to the filing date. 13 For purposes only of waiving the operative delay for this proposal, the Commission has 10 17 VerDate Aug<31>2005 16:46 Jul 26, 2006 Jkt 208001 IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 Jill M. Peterson, Assistant Secretary. [FR Doc. E6–11988 Filed 7–26–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–Amex–2006–68 on the subject line. [Release No. 34–54184; File No. SR–CBOE– 2006–66] Paper Comments July 20, 2006. Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change Regarding Market-Maker Appointments 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 July 11, 2006, the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ or ‘‘Exchange’’) filed with the Securities All submissions should refer to File and Exchange Commission Number SR–Amex–2006–68. This file (‘‘Commission’’) the proposed rule number should be included on the subject line if e-mail is used. To help the change as described in Items I, II, and III below, which Items have been Commission process and review your prepared by the Exchange. The comments more efficiently, please use only one method. The Commission will Commission is publishing this notice to post all comments on the Commission’s solicit comments on the proposed rule change from interested persons. Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the I. Self-Regulatory Organization’s submission, all subsequent Statement of the Terms of Substance of amendments, all written statements the Proposed Rule Change with respect to the proposed rule CBOE proposes to amend CBOE Rule change that are filed with the 8.3 relating to Market-Maker Commission, and all written appointments. The text of the proposed communications relating to the rule change is available on the proposed rule change between the Exchange’s Web site (http:// Commission and any person, other than www.cboe.com), at the CBOE’s Office of those that may be withheld from the the Secretary, and at the Commission’s public in accordance with the Public Reference Room. provisions of 5 U.S.C. 552, will be II. Self-Regulatory Organization’s available for inspection and copying in Statement of the Purpose of, and the Commission’s Public Reference Statutory Basis for, the Proposed Rule Room. Copies of such filing also will be Change available for inspection and copying at In its filing with the Commission, the the principal office of the Amex. All Exchange included statements comments received will be posted concerning the purpose of and basis for without change; the Commission does the proposed rule change and discussed not edit personal identifying any comments it received on the information from submissions. You proposed rule change. The text of those should submit only information that statements may be examined at the you wish to make available publicly. All places specified in Item IV below. The submissions should refer to File Exchange has prepared summaries, set Number SR–Amex–2006–68 and should forth in sections A, B, and C below, of be submitted on or before August 17, the most significant parts of such 2006. statements. • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\27JYN1.SGM 27JYN1 Federal Register / Vol. 71, No. 144 / Thursday, July 27, 2006 / Notices rwilkins on PROD1PC63 with NOTICES A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend CBOE Rule 8.3 with respect to MarketMaker appointments. Currently, pursuant to CBOE Rule 8.1, a MarketMaker is by definition an individual (either a member or nominee of a member organization) who is registered with the Exchange for the purpose of making transactions as a dealerspecialist on the Exchange.3 Under CBOE Rule 8.3, an individual MarketMaker’s appointment(s) are in the name of the Market-Maker even if the MarketMaker is a nominee of a member organization or has registered the Market-Maker’s membership for a member organization. CBOE proposes to amend CBOE Rule 8.3 to provide that in the event a Market-Maker is a nominee of a member organization or has registered the Market-Maker’s membership for a member organization, the member organization with which the MarketMaker is associated would be permitted to request that the Exchange deem all class appointments be made to the member organization instead of to the individual Market-Maker. In such a case, if an individual Market-Maker were no longer associated with a member organization, the class appointments would continue to be held by the member organization and not the individual Market-Maker. A member organization, however, would not be required to make such a request. In the event a member organization did not request that the class appointments be held by the member organization, a Market-Maker’s class appointments would continue to be held in the name of the individual Market-Maker and not the member organization with which the Market-Maker is associated. Additionally, CBOE proposes to amend CBOE Rule 8.3 to provide that if such a request is made by a member organization, CBOE would consider that the submission of electronic quotations and orders would be made by and on behalf of the member organization with which the individual Market-Maker is associated. However, CBOE Rule 8.3, as proposed to be amended, states that the individual Market-Maker would continue to have all of the obligations of a Market-Maker under Exchange rules in these circumstances. Finally, CBOE proposes to replace various references to ‘‘appropriate Market Performance Committee’’ with the ‘‘Exchange’’ in CBOE Rule 8.3. Certain of these changes make the rule consistent with current practice and procedures. Additionally, CBOE would be permitted to continue to delegate to the appropriate Market Performance Committee various duties and responsibilities. 2. Statutory Basis CBOE believes the proposed rule change is consistent with the Act 4 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.5 Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 6 requirements that the rules of an exchange be designed to remove impediments to and perfect the mechanism for a free and open market and a national market system, and, in general, to protect investors and the public interest. 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 CBOE consents, the Commission will: (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 3 An RMM, on the other hand, can be either an individual member or a member organization. See CBOE Rule 8.4(a). VerDate Aug<31>2005 16:46 Jul 26, 2006 Jkt 208001 PO 00000 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–CBOE–2006–66 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–2006–66. 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 (http://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–2006–66 and should be submitted on or before August 17, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.7 J. Lynn Taylor, Assistant Secretary. [FR Doc. E6–11983 Filed 7–26–06; 8:45 am] BILLING CODE 8010–01–P 4 15 U.S.C. 78a et seq. U.S.C. 78f(b). 6 15 U.S.C. 78f(b)(5). 5 15 Frm 00067 Fmt 4703 7 17 Sfmt 4703 42691 E:\FR\FM\27JYN1.SGM CFR 200.30–3(a)(12). 27JYN1

Agencies

[Federal Register Volume 71, Number 144 (Thursday, July 27, 2006)]
[Notices]
[Pages 42690-42691]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-11983]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54184; File No. SR-CBOE-2006-66]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of a Proposed Rule Change Regarding 
Market-Maker Appointments

July 20, 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 July 11, 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 the 
Exchange. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    CBOE proposes to amend CBOE Rule 8.3 relating to Market-Maker 
appointments. The text of the proposed rule change is available on the 
Exchange's Web site (http://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 Exchange 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.

[[Page 42691]]

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend CBOE Rule 8.3 with respect to 
Market-Maker appointments. Currently, pursuant to CBOE Rule 8.1, a 
Market-Maker is by definition an individual (either a member or nominee 
of a member organization) who is registered with the Exchange for the 
purpose of making transactions as a dealer-specialist on the 
Exchange.\3\ Under CBOE Rule 8.3, an individual Market-Maker's 
appointment(s) are in the name of the Market-Maker even if the Market-
Maker is a nominee of a member organization or has registered the 
Market-Maker's membership for a member organization.
---------------------------------------------------------------------------

    \3\ An RMM, on the other hand, can be either an individual 
member or a member organization. See CBOE Rule 8.4(a).
---------------------------------------------------------------------------

    CBOE proposes to amend CBOE Rule 8.3 to provide that in the event a 
Market-Maker is a nominee of a member organization or has registered 
the Market-Maker's membership for a member organization, the member 
organization with which the Market-Maker is associated would be 
permitted to request that the Exchange deem all class appointments be 
made to the member organization instead of to the individual Market-
Maker. In such a case, if an individual Market-Maker were no longer 
associated with a member organization, the class appointments would 
continue to be held by the member organization and not the individual 
Market-Maker. A member organization, however, would not be required to 
make such a request. In the event a member organization did not request 
that the class appointments be held by the member organization, a 
Market-Maker's class appointments would continue to be held in the name 
of the individual Market-Maker and not the member organization with 
which the Market-Maker is associated.
    Additionally, CBOE proposes to amend CBOE Rule 8.3 to provide that 
if such a request is made by a member organization, CBOE would consider 
that the submission of electronic quotations and orders would be made 
by and on behalf of the member organization with which the individual 
Market-Maker is associated. However, CBOE Rule 8.3, as proposed to be 
amended, states that the individual Market-Maker would continue to have 
all of the obligations of a Market-Maker under Exchange rules in these 
circumstances.
    Finally, CBOE proposes to replace various references to 
``appropriate Market Performance Committee'' with the ``Exchange'' in 
CBOE Rule 8.3. Certain of these changes make the rule consistent with 
current practice and procedures. Additionally, CBOE would be permitted 
to continue to delegate to the appropriate Market Performance Committee 
various duties and responsibilities.
2. Statutory Basis
    CBOE believes the proposed rule change is consistent with the Act 
\4\ 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.\5\ Specifically, the Exchange believes the 
proposed rule change is consistent with the Section 6(b)(5) \6\ 
requirements that the rules of an exchange be designed to remove 
impediments to and perfect the mechanism for a free and open market and 
a national market system, and, in general, to protect investors and the 
public interest.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78a et seq.
    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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 CBOE consents, the Commission will:
    (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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-CBOE-2006-66 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-2006-66. 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 (http://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-2006-66 and should be submitted on or before August 
17, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6-11983 Filed 7-26-06; 8:45 am]
BILLING CODE 8010-01-P