Self-Regulatory Organizations; Chicago Board Options Exchange, Inc.; Notice of Filing of a Proposed Rule Change and Amendment No. 1 Thereto Relating to Minor Rule Violations in Connection With Trade Reporting, 63057-63058 [E6-17994]

Download as PDF Federal Register / Vol. 71, No. 208 / Friday, October 27, 2006 / Notices and other fixed-income products have historically been issued with terms of up to, or greater than, thirty (30) years. The Exchange believes expanding the duration for Index-Linked Securities subject to generic listing standards in Section 107D of the Company Guide will help to foster quote competition and promote enhanced efficiency in the marketplace. Incorporating these guidelines into the Exchange’s generic listing standards for Index-Linked Securities will allow Index-Linked Securities that satisfy the listing standards to begin trading pursuant to Rule 19b–4(e), without constituting a proposed rule change within the meaning of section 19(b) of the Act and Rule 19b–4, for which notice and comment and Commission approval is necessary.7 The Exchange’s ability to rely on Rule 19b–4(e) to list such IndexLinked Securities potentially reduces the time frame for bringing these securities to the market, thereby promoting competition and making such products available to investors more quickly. The Exchange also notes that the Commission has approved amendments to the generic listing standards for equity-linked notes that removed the maximum term limits for those securities.8 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with section 6 of the Act 9 in general and furthers the objectives of section 6(b)(5) 10 in particular in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. jlentini on PROD1PC65 with NOTICES B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange believes that the proposed rule change does not impose 7 Telephone Conference on October 12, 2006 among Richard A. Mikaliunas, Senior Vice President, Amex and Nyieri Nazarian, Assistant General Counsel, Amex and Rebekah Liu, Special Counsel, Division of Market Regulation (‘‘Division’’), Commission and Mitra Mehr, Special Counsel, Division, Commission (Telephone Conference). 8 Telephone Conference. See Securities Exchange Act Release No. 42110 (November 5, 1999), 64 FR 61677 (November 12, 1999) (SR–Amex–99–33); 41992 (October 7, 1999), 64 FR 56007 (October 15, 1999) (SR–NYSE–99–22); 42313 (January 4, 2000), 65 FR 2205 (January 13, 2000) (SR–CHX–99–19). 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(5). VerDate Aug<31>2005 16:53 Oct 26, 2006 Jkt 211001 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 self-regulatory organization 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. 63057 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–2006–88 and should be submitted on or before November 17, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Nancy M. Morris, Secretary. [FR Doc. E6–17995 Filed 10–26–06; 8:45 am] BILLING CODE 8011–01–P 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 rulecomments@sec.gov. Please include File Number SR–Amex–2006–88 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54631; File No. SR–CBOE– 2006–81] Self-Regulatory Organizations; Chicago Board Options Exchange, Inc.; Notice of Filing of a Proposed Rule Change and Amendment No. 1 Thereto Relating to Minor Rule Violations in Connection With Trade Reporting October 20, 2006. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Paper Comments notice is hereby given that on October • Send paper comments in triplicate 4, 2006, the Chicago Board Options to Nancy M. Morris, Secretary, Exchange, Inc. (‘‘CBOE’’ or ‘‘Exchange’’) Securities and Exchange Commission, filed with the Securities and Exchange 100 F Street, NE., Washington, DC Commission (‘‘Commission’’) the 20549–1090. proposed rule change as described in All submissions should refer to File Items I, II, and III below, which items Number SR–Amex–2006–88. This file have been prepared by CBOE. On number should be included on the October 17, 2006, the Exchange filed subject line if e-mail is used. To help the Amendment No. 1 to the proposed rule Commission process and review your change.3 The Commission is publishing comments more efficiently, please use this notice to solicit comments on the only one method. The Commission will proposed rule change, as amended, from post all comments on the Commission’s interested persons. Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the 11 17 CFR 200.30–3(a)(12). submission, all subsequent 1 15 U.S.C. 78s(b)(1). amendments, all written statements 2 17 CFR 240.19b–4. with respect to the proposed rule 3 In Amendment No. 1, CBOE replaced the statutory basis section of the original proposal. change that are filed with the PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 E:\FR\FM\27OCN1.SGM 27OCN1 63058 Federal Register / Vol. 71, No. 208 / Friday, October 27, 2006 / Notices I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend CBOE Rule 17.50—Imposition of Fines for Minor Rule Violations, particularly the provisions of CBOE Rule 17.50(g)(4) for Failure to Submit Trade Information on Time and Failure to Submit Trade Information to the Price Reporter. The text of the proposed rule change is available on CBOE’s Web site at http://www.cboe.com, at 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 Exchange included statements concerning the purpose of, and basis for, the proposed rule change, as amended, and discussed any comments it received on the proposal. 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 jlentini on PROD1PC65 with NOTICES 1. Purpose The Exchange represents that the purpose of this proposal is to increase and strengthen the sanctions imposed pursuant to its Minor Rule Violation Plan in connection with the failure to submit timely trade information. Additionally, the Exchange also proposes to amend the surveillance ‘‘look-back’’ period for the aforementioned conduct from a rolling 18-month period to a rolling 24-month period. CBOE Rule 6.51 provides, in relevant part, that a participant in each transaction to be designated by the Exchange must report or ensure the transaction is reported to the Exchange within 90 seconds of the execution in a form and manner prescribed by the Exchange so that the trade information may be disseminated. Transactions not reported within 90 seconds after execution in accordance with CBOE Rule 6.51(a)(i) are designated as late. The Exchange believes that the proposed rule change, by increasing fine levels and lengthening the rolling surveillance period to a 24-month period, would serve as an effective deterrent to such violative conduct. VerDate Aug<31>2005 16:53 Oct 26, 2006 Jkt 211001 2. Statutory Basis Electronic Comments The Exchange believes that the proposed rule change would strengthen its ability to carry out its oversight responsibilities as a self-regulatory organization and reinforce its surveillance and enforcement functions. The Exchange believes that the proposed rule change, as amended, is consistent with section 6(b) of the Act,4 in general, and furthers the objectives of section 6(b)(5) of the Act,5 in particular, in that it would promote just and equitable principles of trade, facilitate transactions in securities, remove impediments to and perfect the mechanisms of a free and open market and a national market system, and protect investors and the public interest. • 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–2006–81 on the subject line. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change would impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on 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 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, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: 4 15 5 15 PO 00000 U.S.C. 78f(b). U.S.C. 78f(b)(6). Frm 00074 Fmt 4703 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–2006–81. 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 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–2006–81 and should be submitted on or before November 17, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.6 Nancy M. Morris, Secretary. [FR Doc. E6–17994 Filed 10–26–06; 8:45 am] BILLING CODE 8011–01–P 6 17 Sfmt 4703 E:\FR\FM\27OCN1.SGM CFR 200.30–3(a)(12). 27OCN1

Agencies

[Federal Register Volume 71, Number 208 (Friday, October 27, 2006)]
[Notices]
[Pages 63057-63058]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-17994]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54631; File No. SR-CBOE-2006-81]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Inc.; Notice of Filing of a Proposed Rule Change and Amendment No. 1 
Thereto Relating to Minor Rule Violations in Connection With Trade 
Reporting

October 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 October 4, 2006, the Chicago Board Options Exchange, Inc. (``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. On October 17, 
2006, the Exchange filed Amendment No. 1 to the proposed rule 
change.\3\ The Commission is publishing this notice to solicit comments 
on the proposed rule change, as amended, from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, CBOE replaced the statutory basis 
section of the original proposal.

---------------------------------------------------------------------------

[[Page 63058]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend CBOE Rule 17.50--Imposition of Fines 
for Minor Rule Violations, particularly the provisions of CBOE Rule 
17.50(g)(4) for Failure to Submit Trade Information on Time and Failure 
to Submit Trade Information to the Price Reporter.
    The text of the proposed rule change is available on CBOE's Web 
site at http://www.cboe.com, at 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 Exchange included statements 
concerning the purpose of, and basis for, the proposed rule change, as 
amended, and discussed any comments it received on the proposal. 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 Exchange represents that the purpose of this proposal is to 
increase and strengthen the sanctions imposed pursuant to its Minor 
Rule Violation Plan in connection with the failure to submit timely 
trade information. Additionally, the Exchange also proposes to amend 
the surveillance ``look-back'' period for the aforementioned conduct 
from a rolling 18-month period to a rolling 24-month period. CBOE Rule 
6.51 provides, in relevant part, that a participant in each transaction 
to be designated by the Exchange must report or ensure the transaction 
is reported to the Exchange within 90 seconds of the execution in a 
form and manner prescribed by the Exchange so that the trade 
information may be disseminated. Transactions not reported within 90 
seconds after execution in accordance with CBOE Rule 6.51(a)(i) are 
designated as late. The Exchange believes that the proposed rule 
change, by increasing fine levels and lengthening the rolling 
surveillance period to a 24-month period, would serve as an effective 
deterrent to such violative conduct.
2. Statutory Basis
    The Exchange believes that the proposed rule change would 
strengthen its ability to carry out its oversight responsibilities as a 
self-regulatory organization and reinforce its surveillance and 
enforcement functions. The Exchange believes that the proposed rule 
change, as amended, is consistent with section 6(b) of the Act,\4\ in 
general, and furthers the objectives of section 6(b)(5) of the Act,\5\ 
in particular, in that it would promote just and equitable principles 
of trade, facilitate transactions in securities, remove impediments to 
and perfect the mechanisms of a free and open market and a national 
market system, and protect investors and the public interest.
---------------------------------------------------------------------------

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

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange neither solicited nor received comments on 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 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, as amended, 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-2006-81 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-2006-81. 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 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-2006-81 and should be submitted on or before November 17, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
[FR Doc. E6-17994 Filed 10-26-06; 8:45 am]
BILLING CODE 8011-01-P