Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Extension of a Pilot Program That Increases the Standard Position and Exercise Limits for Certain Options Traded on the Exchange, 50952-50954 [E6-14195]
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50952
Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices
LEO special base rates, as adjusted by
the applicable locality payment.’’
(2) Page 67452: Section III.D.5.—In
the first sentence, insert ‘‘LEO special
base rate,’’ after ‘‘GS rate,’’.
(3) Page 67452. Section III.D.6. In the
second sentence, insert ‘‘GS base’’ after
‘‘maximum’’ and ‘‘or LEO special base
rates’’ before ‘‘of each band’’. In the
third sentence, insert ‘‘under 5 U.S.C.
5305’’ after ‘‘special rates’’.
(4) Page 67452: Section III.D.7.
Replace ‘‘special salary rate’’ with
‘‘special rate’’ throughout paragraph 7.
In the first sentence, insert ‘‘under 5
U.S.C. 5305’’ before ‘‘will be used’’. In
the second sentence, replace ‘‘5 CFR
530.303’’ with ‘‘5 CFR 530.304’’.
(5) Page 67453: Section III.D.13. In the
second sentence, insert ‘‘GS base rate,
LEO special base rate,’’ before ‘‘locality
rate’’ in the parenthetical.
(6) Page 67453: Section III.D. 14. In
the second sentence, insert ‘‘GS base
rate, LEO special base rate,’’ before
‘‘locality rate’’ in the parenthetical.
(7) Page 67455: Section IV.A.1. In the
first sentence, insert ‘‘or LEO special
base schedule’’ after ‘‘GS base schedule’’
in the parenthetical.
(8) Page 67455: Section IV.B.2. In the
first sentence, insert ‘‘or LEO special
base schedule’’ after ‘‘GS base schedule’’
in the parenthetical.
(9) Page 67455: Section IV.B.3. In the
third sentence, insert ‘‘or LEO special
base rate’’ after ‘‘GS base rate’’. Delete
the last parenthetical.
(10) Page 67455—67456: Section
IV.B.5. Delete all text in paragraph 5.
after the first sentence.
(11) Page 67456; Section IV.B.6. In the
second sentence, replace ‘‘GS rate’’ with
‘‘GS rates’’ and delete ‘‘of basic pay (or
converted special rate, if applicable)’’.
(12) Page 67456. Section IV.C. Replace
last sentence with ‘‘(See 5 CFR
531.407(b) for additional information on
equivalent increase determinations.)’’
[FR Doc. 06–7210 Filed 8–24–06; 11:07 am]
BILLING CODE 6325–43–P
(‘‘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
modify its short-term option series pilot
program (‘‘Pilot Program’’) 3 to change
the number of short-term series that may
be listed in an options class from five to
seven. The Exchange filed Amendment
No. 1 with the Commission on July 11,
2006.4 The amended proposal was
published for comment in the Federal
Register on July 19, 2006.5 No
comments were received. This order
approves the proposed rule change, as
amended.
The Pilot Program currently provides
that the Exchange may open up to five
short-term series for each expiration
date in an approved class. CBOE has
proposed to increase the maximum to
seven. The Exchange has stated it would
list approximately the same number of
series with strike prices above and
below the price of the underlying
security or value of the index at about
the time the series is opened. CBOE also
proposed that, if the Exchange has
opened less than seven series in a
particular options class for a given
expiration date, it could open additional
series in that class if the Exchange
deems it necessary to maintain an
orderly market or meet customer
demand, or when the current value of
the underlying index moves
substantially from the exercise price or
prices of the series already opened.
After careful review, the Commission
finds that the proposal is consistent
with the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.6 In particular, the
Commission believes that the proposal
is consistent with the requirements of
section 6(b)(5) of the Act,7 which
requires, among other things, that the
rules of a national securities exchange
1 15
mstockstill on PROD1PC61 with NOTICES
[Release No. 34–54338; File No. SR–CBOE–
2006–49]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Approving a
Proposed Rule Change and
Amendment No. 1 Thereto To Allow
Listing of Up to Seven Short-Term
Options Series per Class
August 21, 2006.
On June 27, 2006, the Chicago Board
Options Exchange, Incorporated
VerDate Aug<31>2005
15:09 Aug 25, 2006
Jkt 208001
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 52011
(July 12, 2005), 70 FR 41451 (July 19, 2005) (SR–
CBOE–2004–63) (approving short-term option series
on a pilot basis through July 12, 2006). The Pilot
Program has since been extended through July 12,
2007. See Securities Exchange Act Release No.
53984 (June 14, 2006), 71 FR 35718 (June 21, 2006)
(SR–CBOE–2006–48).
4 In Amendment No. 1, a partial amendment, the
Exchange corrected a typographical error in the
proposed rule text.
5 See Securities Exchange Act Release No. 54133
(July 12, 2006), 71 FR 41062.
6 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
7 15 U.S.C. 78f(b)(5).
2 17
SECURITIES AND EXCHANGE
COMMISSION
PO 00000
Frm 00071
Fmt 4703
Sfmt 4703
be designed to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, to promote just and equitable
principles of trade, and, in general, to
protect investors and the public interest.
The proposal is a reasonable expansion
of a Pilot Program that offers the market
potentially useful products while not
appearing to raise any concerns about
quote capacity.8
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,9 that the
proposed rule change (File No. SR–
CBOE–2006–49), as amended, is
approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Nancy M. Morris,
Secretary.
[FR Doc. E6–14193 Filed 8–25–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54336; File No. SR–CBOE–
2006–69]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the Extension
of a Pilot Program That Increases the
Standard Position and Exercise Limits
for Certain Options Traded on the
Exchange
August 18, 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 August 9,
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 filed
the proposal as a ‘‘non-controversial’’
rule change pursuant to Section
8 The Exchange, should it wish to propose an
extension, expansion, or permanent approval of the
Pilot Program, must submit a report on the Pilot
Program to the Commission. See Securities
Exchange Act Release No. 51172 (February 9, 2005),
70 FR 7979 (February 16, 2005). The Commission
notes that the Exchange submitted a report on June
13, 2006, in connection with its filing to extend the
Pilot Program through July 12, 2007. See Securities
Exchange Act Release No. 53684 (June 14, 2006), 71
FR 35718 (June 21, 2006).
9 15 U.S.C. 78s(b)(2).
10 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
E:\FR\FM\28AUN1.SGM
28AUN1
Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices
19(b)(3)(A) of the Act 3 and Rule 19b–
4(f)(6) thereunder,4 which renders it
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
The CBOE proposes to extend an
existing pilot program that increases the
standard position and exercise limits for
certain options traded on the Exchange
(‘‘Pilot Program’’). The text of the
proposed rule change is available on the
CBOE’s Web site (https://
www.cboe.com), at the CBOE’s principal
office, 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 Exchange 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
The Pilot Program, as previously
approved by the Commission, provides
for an increase to the standard position
and exercise limits for equity option
contracts and for options on QQQQs for
a six-month period.5 Specifically, the
Pilot Program increased the applicable
position and exercise limits for equity
options and options on the QQQQ in
accordance with the following levels:
mstockstill on PROD1PC61 with NOTICES
3 15
U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
5 The Pilot Program was approved by the
Commission on February 23, 2005. See Securities
Exchange Act Release No. 51244 (February 23,
2005), 70 FR 10010 (March 1, 2005) (order
approving SR–CBOE–2003–30, as amended) (‘‘Pilot
Program Order’’). The Pilot Program has been
extended twice and is due to expire on September
1, 2006. See Securities Exchange Act Release Nos.
52262 (August 15, 2005), 70 FR 48995 (August 22,
2005) (notice of filing and immediate effectiveness
of SR–CBOE–2005–61); and 53348 (February 22,
2006), 71 FR 10574 (March 1, 2006) (notice of filing
and immediate effectiveness of SR–CBOE–2006–
11).
VerDate Aug<31>2005
15:09 Aug 25, 2006
Jkt 208001
Current equity option
contract limit 6
Pilot program equity
option contract limit*
13,500 contracts ....... 25,000 contracts.
22,500 contracts ....... 50,000 contracts.
31,500 contracts ....... 75,000 contracts.
60,000 contracts ....... 200,000 contracts.
75,000 contracts ....... 250,000 contracts.
*Except when the Pilot Program is in effect.
Current QQQQ option
contract limit
Pilot program QQQQ
option contract limit
300,000 contracts .....
900,000 contracts.
The purpose of the proposed rule
change is to extend the Pilot Program for
an additional six-month period, through
March 1, 2007. The Exchange believes
that extending the Pilot Program for six
months is warranted due to the positive
feedback from members and for the
reasons cited in the original rule filing
that proposed the adoption of the Pilot
Program.6 Also, the Exchange has not
encountered any problems or
difficulties relating to the Pilot Program
since its inception. For these reasons,
the Exchange requests that the
Commission extend the Pilot Program
for the aforementioned additional
period.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements provided under
Section 6(b)(5) 7 of the Act 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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The 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
Because the forgoing rule change does
not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
6 See
7 15
PO 00000
Pilot Program Order, supra note 5.
U.S.C. 78f(b)(5).
Frm 00072
Fmt 4703
Sfmt 4703
50953
burden on competition; and (3) become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 8 and Rule 19b–
4(f)(6) thereunder.9
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.10 However, Rule 19b–
4(f)(6)(iii) 11 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange provided the Commission
with written notice of its intent to file
this proposed rule change at least five
business days prior to the date of filing
the proposed rule change. In addition,
the Exchange has requested that the
Commission waive the 30-day preoperative delay. The Commission
believes that waiving the 30-day preoperative delay is consistent with the
protection of investors and in the public
interest because it will allow the Pilot
Program to continue uninterrupted.12
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 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
No. SR–CBOE–2006–69 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.
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii).
11 Id.
12 For the purposes only of waiving the preoperative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
9 17
E:\FR\FM\28AUN1.SGM
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50954
Federal Register / Vol. 71, No. 166 / Monday, August 28, 2006 / Notices
All submissions should refer to File
No. SR–CBOE–2006–69. 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 will also 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 No.
SR–CBOE–2006–69 and should be
submitted on or before September 18,
2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Nancy M. Morris,
Secretary.
[FR Doc. E6–14195 Filed 8–25–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54335; File No. SR–ISE–
2006–47]
Self-Regulatory Organizations;
International Securities Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to the Extension of a
Pilot Period To Increase Position
Limits and Exercise Limits for Equity
Options and Options on the Nasdaq100 Tracking Stock
10, 2006, the International Securities
Exchange, Inc. (‘‘ISE’’ 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 ISE. The Exchange
has filed the proposal as a ‘‘noncontroversial’’ rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(6) thereunder,4 which renders
it 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
The ISE proposes to extend the time
period for the ISE Rule 412 and ISE Rule
414 position and exercise limits pilot
program for equity option contracts and
options on the Nasdaq-100 Index
Tracking Stock (‘‘QQQQ’’) (‘‘Pilot
Program’’). The text of the proposed rule
change is available on the ISE’s Web site
(https://www.iseoptions.com), at the
ISE’s principal office, 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
ISE 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 Exchange 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
The Pilot Program provides for an
increase to the standard position and
exercise limits for equity option
contracts and for options on QQQQs.5
The Pilot Program, after being extended
on two prior occasions, is set to expire
on September 1, 2006.6 Specifically, the
mstockstill on PROD1PC61 with NOTICES
August 18, 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 August
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Aug<31>2005
15:09 Aug 25, 2006
Jkt 208001
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 51295
(March 2, 2005), 70 FR 11292 (March 8, 2005)
(notice of filing and immediate effectiveness of SR–
ISE–2005–14) (‘‘Pilot Program Notice’’).
6 See Securities Exchange Act Release Nos. 53345
(February 22, 2006), 71 FR 10579 (March 1, 2006)
(notice of filing and immediate effectiveness of SR–
4 17
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
Pilot Program increased the applicable
position and exercise limits for equity
options and options on the QQQQ to the
following levels:
Current equity option
contract limit 7
13,500
22,500
31,500
60,000
75,000
contracts
contracts
contracts
contracts
contracts
.......
.......
.......
.......
.......
Pilot program equity
option contract limit
25,000 contracts.
50,000 contracts.
75,000 contracts.
200,000 contracts.
250,000 contracts.
Current QQQQ option
contract limit
Pilot program QQQQ
option contract limit
300,000 contracts .....
900,000 contracts.
The purpose of the proposed rule
change is to extend the Pilot Program for
an additional six-month period, until
March 1, 2007. The Exchange believes
that extending the Pilot Program for six
months is warranted due to the positive
feedback from members and for the
reasons cited in the original rule filing
that proposed the adoption of the Pilot
Program.8 Additionally, the Exchange
represents that it has not experienced
any problems or difficulties relating to
the Pilot Program since its inception.
For these reasons, the Exchange requests
that the Commission extend the Pilot
Program until March 1, 2007.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 9 in general, and furthers the
objective of Section 6(b)(5) of the Act 10
in particular, in that it is designed to
promote just and equitable principles of
trade and to protect investors and the
public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose any burden on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
ISE–2006–10); and 52265 (August 15, 2005), 70 FR
48996 (August 22, 2005) (notice of filing and
immediate effectiveness of SR–ISE–2005–39).
7 Except when the Pilot Program is in effect.
8 See Pilot Program Notice, supra note 5.
9 15 U.S.C. 78f(b).
10 10 15 U.S.C. 78f(b)(5).
E:\FR\FM\28AUN1.SGM
28AUN1
]]>Agencies
[Federal Register Volume 71, Number 166 (Monday, August 28, 2006)]
[Notices]
[Pages 50952-50954]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-14195]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54336; File No. SR-CBOE-2006-69]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to the Extension of a Pilot Program That Increases
the Standard Position and Exercise Limits for Certain Options Traded on
the Exchange
August 18, 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 August 9, 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 filed the proposal as a ``non-controversial'' rule change
pursuant to Section
[[Page 50953]]
19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which
renders it 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).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CBOE proposes to extend an existing pilot program that
increases the standard position and exercise limits for certain options
traded on the Exchange (``Pilot Program''). The text of the proposed
rule change is available on the CBOE's Web site (https://www.cboe.com),
at the CBOE's principal office, 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 Exchange 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
The Pilot Program, as previously approved by the Commission,
provides for an increase to the standard position and exercise limits
for equity option contracts and for options on QQQQs for a six-month
period.\5\ Specifically, the Pilot Program increased the applicable
position and exercise limits for equity options and options on the QQQQ
in accordance with the following levels:
---------------------------------------------------------------------------
\5\ The Pilot Program was approved by the Commission on February
23, 2005. See Securities Exchange Act Release No. 51244 (February
23, 2005), 70 FR 10010 (March 1, 2005) (order approving SR-CBOE-
2003-30, as amended) (``Pilot Program Order''). The Pilot Program
has been extended twice and is due to expire on September 1, 2006.
See Securities Exchange Act Release Nos. 52262 (August 15, 2005), 70
FR 48995 (August 22, 2005) (notice of filing and immediate
effectiveness of SR-CBOE-2005-61); and 53348 (February 22, 2006), 71
FR 10574 (March 1, 2006) (notice of filing and immediate
effectiveness of SR-CBOE-2006-11).
------------------------------------------------------------------------
Pilot program equity option
Current equity option contract limit \6\ contract limit\*\
------------------------------------------------------------------------
13,500 contracts.......................... 25,000 contracts.
22,500 contracts.......................... 50,000 contracts.
31,500 contracts.......................... 75,000 contracts.
60,000 contracts.......................... 200,000 contracts.
75,000 contracts.......................... 250,000 contracts.
\*\Except when the Pilot Program is in effect.
------------------------------------------------------------------------
Pilot program QQQQ option
Current QQQQ option contract limit contract limit
------------------------------------------------------------------------
300,000 contracts......................... 900,000 contracts.
------------------------------------------------------------------------
The purpose of the proposed rule change is to extend the Pilot
Program for an additional six-month period, through March 1, 2007. The
Exchange believes that extending the Pilot Program for six months is
warranted due to the positive feedback from members and for the reasons
cited in the original rule filing that proposed the adoption of the
Pilot Program.\6\ Also, the Exchange has not encountered any problems
or difficulties relating to the Pilot Program since its inception. For
these reasons, the Exchange requests that the Commission extend the
Pilot Program for the aforementioned additional period.
---------------------------------------------------------------------------
\6\ See Pilot Program Order, supra note 5.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirements provided under Section 6(b)(5) \7\ of the Act
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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The 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
Because the forgoing rule change does not: (1) Significantly affect
the protection of investors or the public interest; (2) impose any
significant burden on competition; and (3) become operative for 30 days
after the date of this filing, or such shorter time as the Commission
may designate, it has become effective pursuant to Section 19(b)(3)(A)
of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\10\
However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange provided the Commission
with written notice of its intent to file this proposed rule change at
least five business days prior to the date of filing the proposed rule
change. In addition, the Exchange has requested that the Commission
waive the 30-day pre-operative delay. The Commission believes that
waiving the 30-day pre-operative delay is consistent with the
protection of investors and in the public interest because it will
allow the Pilot Program to continue uninterrupted.\12\
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\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ Id.
\12\ For the purposes only of waiving the pre-operative delay,
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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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 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 No. SR-CBOE-2006-69 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.
[[Page 50954]]
All submissions should refer to File No. SR-CBOE-2006-69. 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 will also 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 No. SR-CBOE-2006-69 and should be submitted on or before September
18, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-14195 Filed 8-25-06; 8:45 am]
BILLING CODE 8010-01-P
