Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Accelerated Approval of Proposed Rule Change and Amendment No. 1 Thereto Relating to Extension of the Options Intermarket Linkage Fees Pilot Program, 45865-45866 [E6-13003]
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Federal Register / Vol. 71, No. 154 / Thursday, August 10, 2006 / Notices
Commission, Office of Filings and
Information Services, Washington, DC
20549.
Extension: Regulation SHO; SEC File No.
270–534; OMB Control No. 3235–0589.
rwilkins on PROD1PC61 with NOTICES
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’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Regulation SHO
Proposed Regulation SHO, Rule 201
(17 CFR 242.200 through 242.203)
requires each broker-dealer that effects a
sell order in any equity security to mark
the order ‘‘long,’’ ‘‘short,’’ or ‘‘short
exempt.’’ Proposed Regulation SHO,
Rule 201 causes a collection of
information because the rule’s
requirement that each order ticket be
marked either ‘‘long,’’ ‘‘short,’’ or ‘‘short
exempt’’ is a disclosure to third parties
and the public imposed on ten or more
persons.
The information required by the rule
is necessary for the execution of the
Commission’s mandate under the
Exchange Act to prevent fraudulent,
manipulative, and deceptive acts and
practices by broker-dealers. The purpose
of the information collected is to enable
regulators to monitor whether a person
effecting a short sale is acting in
accordance with proposed Regulation
SHO. Without the requirement that each
order or an equity security be marked
either ‘‘long,’’ ‘‘short,’’ or ‘‘short
exempt,’’ there would be no means to
police compliance with Regulation
SHO.
We assume that all of the
approximately 6,752 registered brokerdealers effect sell orders in securities
covered by proposed Regulation SHO.
For purposes of the Paperwork
Reduction Act, the Commission staff has
estimated that a total of 1,164,755,007
trades are executed annually.
This is an average of approximately
172,505 annual responses by each
respondent. Each response of marking
orders ‘‘long,’’ ‘‘short’’ or ‘‘short
exempt’’ takes approximately .000139
hours (.5 seconds) to complete. Thus,
the total approximate estimated annual
hour burden per year is 161,900 burden
hours (1,164,755,007 responses @
0.000139 hours/response). A reasonable
estimate for the paperwork compliance
for the proposed rules for each brokerdealer is approximately 24 burden hours
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21:27 Aug 09, 2006
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(172,505 responses @ .000139 hours/
response) or (161,900 burden hours/
6,752 respondents).
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to R. Corey Booth, Director/CIO, Office
of Information Technology, Securities
and Exchange Commission, c/o Shirley
Martinson, 6432 General Green Way,
Alexandria, VA 22312 or send an E-mail
to: PRA_Mailbox@sec.gov. Comments
must be submitted to OMB within 60
days of this notice.
Dated: July 31, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. E6–13027 Filed 8–9–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54272; File No. SR–CBOE–
2006–59]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Granting
Accelerated Approval of Proposed
Rule Change and Amendment No. 1
Thereto Relating to Extension of the
Options Intermarket Linkage Fees Pilot
Program
August 3, 2006.
On June 15, 2006, the Chicago Board
Options Exchange, Incorporated
(‘‘CBOE’’ 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
amend its Fees Schedule to extend until
July 31, 2007 the Options Intermarket
Linkage (‘‘Linkage’’) fee pilot program
(‘‘Pilot Program’’). The proposed rule
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00101
Fmt 4703
Sfmt 4703
45865
change was published for comment in
the Federal Register on July 6, 2006.3
The Commission received no comments
on the proposal. On August 3, 2006, the
Exchange filed Amendment No. 1 to the
proposed rule change.4 This order
approves the proposed rule change, as
amended, on an accelerated basis.
The Exchange’s fees for Principal and
Principal Acting as Agent orders are
operating under the Pilot Program.
These Linkage-related fees expired on
July 31, 2006.5 The Exchange proposes
to retroactively extend from August 1,
2006 through July 31, 2007 the Pilot
Program.6
After careful review, the Commission
finds that the proposed rule change, as
amended, is consistent with the
requirements of the Act and the rules
and regulations applicable thereunder to
a national securities exchange.7 More
specifically, the Commission finds that
the proposal is consistent with Section
6(b) of the Act 8 in general, and furthers
the objectives of Section 6(b)(4) of the
Act 9 in particular, in that it is designed
to provide for the equitable allocation of
reasonable dues, fees, and other charges
among CBOE members and other
persons using its facilities. The
Commission believes that: (i) The
prospective extension of the Pilot
Program will give the Exchange and the
Commission further opportunity to
evaluate whether the fees are
appropriate; and (ii) the retroactive
extension of the Pilot Program will
permit the pilot to continue on an
uninterrupted basis for the two days
between the expiration of the pilot on
July 31, 2006 and the date of this
approval order.
The Commission finds good cause,
pursuant to Section 19(b)(2) of the
Act,10 for approving the proposed rule
change prior to the 30th day after the
date of publication of notice thereof in
the Federal Register. Specifically, the
Commission notes that accelerated
approval of the proposal will allow the
Pilot Program to continue without
3 Securities Exchange Act Release No. 54064
(June 29, 2006), 71 FR 38438.
4 See infra, at note 6.
5 See Securities Exchange Act Release No. 52073
(July 20, 2005), 70 FR 43474 (July 27, 2005) (SR–
CBOE–2005–54).
6 In Amendment No. 1, in light of the expiration
of the Pilot Program, the Exchange modified its
proposal to request that the Pilot Program be
extended retroactively. Amendment No. 1 is a
technical amendment and is not subject to notice
and comment.
7 In approving the proposed rule change, as
amended, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4).
10 15 U.S.C. 78s(b)(2).
E:\FR\FM\10AUN1.SGM
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45866
Federal Register / Vol. 71, No. 154 / Thursday, August 10, 2006 / Notices
interruption as the Exchange and the
Commission further consider the
appropriateness of Linkage fees.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,11 that the
proposed rule change (SR–CBOE–2006–
59), as amended, is hereby approved on
an accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Nancy M. Morris,
Secretary.
[FR Doc. E6–13003 Filed 8–9–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54275; File No. SR–CBOE–
2006–61]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the Modified
ROS Opening Procedure Cut-Off Times
August 4, 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 27,
2006, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) 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 Exchange.
The Exchange has designated the
proposed rule change as constituting a
non-controversial rule change under
Rule 19b–4(f)(6) under the Act,3 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
rwilkins on PROD1PC61 with NOTICES
The Exchange proposes to modify
certain cut-off times applicable to its
modified Rapid Opening System
(‘‘ROS’’) opening procedure for the
calculation of settlement prices of
volatility indexes. Proposed new
11 Id.
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
1 15
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21:27 Aug 09, 2006
Jkt 208001
language is italicized; proposed
deletions are in brackets:
*
*
*
*
*
Rule 6.2A. Rapid Opening System
This rule has no applicability to series
trading on the CBOE Hybrid Opening
System. Such series will be governed by
Rule 6.2B.
(a)—(c) No change.
* * * Interpretation and Policies:
.01–.02 No change.
.03 Modified ROS Opening
Procedure For Calculation of Settlement
Prices of Volatility Indexes.
All provisions set forth in Rule 6.2A
and the accompanying interpretations
and policies shall remain in effect
unless superseded or modified by this
Rule 6.2A.03. To facilitate the
calculation of a settlement price for
futures and options contracts on
volatility indexes, the Exchange shall
utilize a modified ROS opening
procedure for any index option series
with respect to which a volatility index
is calculated (including any index
option series opened under Rule
6.2A.01). This modified ROS opening
procedure will be utilized only on the
final settlement date of the options and
futures contracts on the applicable
volatility index in each expiration
month.
The following provisions shall be
applicable when the modified ROS
opening procedure set forth in this Rule
6.2A.03 is in effect for an index option
with respect to which a volatility index
is calculated:
(i)–(iv) No change.
(v) All index option orders for
participation in the modified ROS
opening procedure that are related to
positions in, or a trading strategy
involving, volatility index options or
futures, and any change to or
cancellation of any such order:
(A) must be received prior to 8 a.m.
(CT), and
(B) may not be cancelled or changed
after 8 a.m. (CT), unless the order is not
executed in the modified ROS opening
procedure and the cancellation or
change is submitted after the modified
ROS opening procedure is concluded
(provided that any such order may be
changed or cancelled after 8:00 a.m.
(CT) and prior to [8:25 a.m. (CT)]
applicable cut-off time established in
accordance with paragraph (vi) in order
to correct a legitimate error, in which
case the member submitting the change
or cancellation shall prepare and
maintain a memorandum setting forth
the circumstances that resulted in the
change or cancellation and shall file a
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
copy of the memorandum with the
Exchange no later than the next
business day in a form and manner
prescribed by the Exchange).
In general, the Exchange shall
consider index option orders to be
related to positions in, or a trading
strategy involving, volatility index
options or futures for purposes of this
Rule 6.2A.03(v) if the orders possess the
following three characteristics:
(i)–(iii) No change.
Whether index option orders are
related to positions in, or a trading
strategy involving, volatility index
options or futures for purposes of this
Rule 6.2A.03(v) depends upon specific
facts and circumstances. Order types
other than those provided above may
also be deemed by the Exchange to fall
within this category of orders if the
Exchange determines that to be the case
based upon the applicable facts and
circumstances.
The provisions of this Rule 6.2A.03(v)
may be suspended by two Floor
Officials in the event of unusual market
conditions.
(vi) All other index option orders for
participation in the modified ROS
opening procedure, and any change to
or cancellation of any such order, must
be received prior to [8:25 a.m. (CT)] the
applicable cut-off time in order to
participate at the ROS opening price for
the applicable index option series. The
applicable cut-off time for the affected
index option series will be established
by the appropriate Procedure
Committee on a class-by-class basis,
provided the cut-off time will be no
earlier than 8:25 a.m. (CT) and no later
than 8:30 a.m. (CT). All
pronouncements regarding changes to
the applicable cut-off time will be
announced to the membership via
Regulatory Circular that is issued at
least one day prior to implementation.
(vii)—(ix) No change.
*
*
*
*
*
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.
E:\FR\FM\10AUN1.SGM
10AUN1
]]>Agencies
[Federal Register Volume 71, Number 154 (Thursday, August 10, 2006)]
[Notices]
[Pages 45865-45866]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-13003]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54272; File No. SR-CBOE-2006-59]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Order Granting Accelerated Approval of Proposed Rule
Change and Amendment No. 1 Thereto Relating to Extension of the Options
Intermarket Linkage Fees Pilot Program
August 3, 2006.
On June 15, 2006, the Chicago Board Options Exchange, Incorporated
(``CBOE'' 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 amend its Fees Schedule to
extend until July 31, 2007 the Options Intermarket Linkage
(``Linkage'') fee pilot program (``Pilot Program''). The proposed rule
change was published for comment in the Federal Register on July 6,
2006.\3\ The Commission received no comments on the proposal. On August
3, 2006, the Exchange filed Amendment No. 1 to the proposed rule
change.\4\ This order approves the proposed rule change, as amended, on
an accelerated basis.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 54064 (June 29, 2006),
71 FR 38438.
\4\ See infra, at note 6.
---------------------------------------------------------------------------
The Exchange's fees for Principal and Principal Acting as Agent
orders are operating under the Pilot Program. These Linkage-related
fees expired on July 31, 2006.\5\ The Exchange proposes to
retroactively extend from August 1, 2006 through July 31, 2007 the
Pilot Program.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 52073 (July 20,
2005), 70 FR 43474 (July 27, 2005) (SR-CBOE-2005-54).
\6\ In Amendment No. 1, in light of the expiration of the Pilot
Program, the Exchange modified its proposal to request that the
Pilot Program be extended retroactively. Amendment No. 1 is a
technical amendment and is not subject to notice and comment.
---------------------------------------------------------------------------
After careful review, the Commission finds that the proposed rule
change, as amended, is consistent with the requirements of the Act and
the rules and regulations applicable thereunder to a national
securities exchange.\7\ More specifically, the Commission finds that
the proposal is consistent with Section 6(b) of the Act \8\ in general,
and furthers the objectives of Section 6(b)(4) of the Act \9\ in
particular, in that it is designed to provide for the equitable
allocation of reasonable dues, fees, and other charges among CBOE
members and other persons using its facilities. The Commission believes
that: (i) The prospective extension of the Pilot Program will give the
Exchange and the Commission further opportunity to evaluate whether the
fees are appropriate; and (ii) the retroactive extension of the Pilot
Program will permit the pilot to continue on an uninterrupted basis for
the two days between the expiration of the pilot on July 31, 2006 and
the date of this approval order.
---------------------------------------------------------------------------
\7\ In approving the proposed rule change, as amended, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Commission finds good cause, pursuant to Section 19(b)(2) of
the Act,\10\ for approving the proposed rule change prior to the 30th
day after the date of publication of notice thereof in the Federal
Register. Specifically, the Commission notes that accelerated approval
of the proposal will allow the Pilot Program to continue without
[[Page 45866]]
interruption as the Exchange and the Commission further consider the
appropriateness of Linkage fees.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\11\ that the proposed rule change (SR-CBOE-2006-59), as amended,
is hereby approved on an accelerated basis.
---------------------------------------------------------------------------
\11\ Id.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-13003 Filed 8-9-06; 8:45 am]
BILLING CODE 8010-01-P
