Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change To Codify a Fee Schedule for the Sale of Open and Close Volume Data on CBOE Listed Options by Market Data Express, LLC, 68657-68659 [E6-19976]

Download as PDF Federal Register / Vol. 71, No. 227 / Monday, November 27, 2006 / Notices • BOX will use variable rates of ‘‘bundling’’ delays for the three different types of broadcast updates: changes in price, increases in quantity without a change in price, and decreases in quantity without a change in price. Under this proposal, changes in prices may be subject to less delay than changes to quantity at same price. For example, BOX may apply a ‘‘bundling interval’’ of 400 milliseconds to updates regarding a price change while using a figure of 1,000 milliseconds for updates concerning only a change in quantity at the same price. The appropriate mix will be determined by the relative success BOX is meeting in its overall goals of traffic reduction. The Exchange does not propose to apply the above-described bundling to traffic relating to price improvement auctions or NBBO exposure mechanisms, nor to trade reporting messages. Furthermore, no bundling of quotes is proposed for inbound orders and quotes which are sent to BOX by users; messaging will only be bundled for outbound updates. The Exchange believes this proposal is an optimal trade-off between costs and benefits and that it is fully compliant with its firm quote obligations. The Exchange further believes that the proposed rule is designed to provide the Exchange with a quote mitigation plan which will significantly reduce overall peak market data traffic with a relatively small impact on the quality of information available to options market users. • BOX’s target reduction in outbound peak traffic is 15% to 20% of what the traffic would have been had no mitigation been applied. • Reduction in overall traffic, as opposed to peaks, will be lower, but still significant, with a target of 8% to 10%. sroberts on PROD1PC70 with NOTICES 2. Statutory Basis The Exchange believes that the proposed rule change 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 the proposed rule change is designed to promote just and equitable principles of trade, to prevent fraudulent and manipulative acts and practices, to remove impediments to and perfect the mechanism of 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. 78f(b). 5 15 U.S.C. 78f(b)(5). VerDate Aug<31>2005 16:58 Nov 24, 2006 Jkt 211001 B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange 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 Written comments on the proposed rule change were neither solicited nor received. 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 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 No. SR–BSE–2006–48 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 No. SR–BSE–2006–48. 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 at http://www.sec.gov/ rules/sro.shtml. Copies of the submission, all subsequent PO 00000 Frm 00129 Fmt 4703 Sfmt 4703 68657 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, 100 F Street, NE., Washington, DC 20549. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. 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–BSE–2006–48 and should be submitted on or before December 18, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.6 Nancy M. Morris, Secretary. [FR Doc. E6–19983 Filed 11–24–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54771; File No. SR–CBOE– 2006–88] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change To Codify a Fee Schedule for the Sale of Open and Close Volume Data on CBOE Listed Options by Market Data Express, LLC November 16, 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 November 3, 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 CBOE. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 6 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\27NON1.SGM 27NON1 68658 Federal Register / Vol. 71, No. 227 / Monday, November 27, 2006 / Notices I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The CBOE proposes to codify a fee schedule for the sale of open and close volume data on CBOE listed options by Market Data Express, LLC (‘‘MDX’’), a wholly-owned subsidiary of CBOE. The text of the proposed rule change is available on the CBOE’s Web site (http://www.cboe.com), the Office of the Secretary, CBOE, 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, 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 Amex 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 sroberts on PROD1PC70 with NOTICES 1. Purpose CBOE creates volume data for each CBOE listed option that consists of opening buys and opening sells and closing buys and closing sells.3 This opening and closing position data is subdivided by origin code (i.e., customer or firm) and the customer data is further subdivided by order size. The volume data is summarized by day and series (symbol, expiration date, strike price, call or put). This volume data is referred to herein as the ‘‘Open/Close Data.’’ MDX offers the Open/Close Data for sale to CBOE members and nonmembers. The fees that MDX assesses for the Open/Close Data are set forth in the Price List on MDX’s Web site. Members and non-members are charged the same fees for the Open/Close Data. Under the proposal, customers may purchase Open/Close Data on a subscription basis or by ad hoc request. Daily Open/Close Data covering all CBOE securities would be available for purchase by subscribing to the Daily Update service at a cost of $600 per month. Subscribers to the Daily Update service would receive a daily data file via download from MDX’s Web site. Historical Open/Close Data covering all CBOE securities may be purchased on an ad hoc request basis and is delivered via DVD. The charge for Historical Open/Close Data covering all CBOE securities would be $7,200 per year for requests for one to four years of data. Requests for five or more years of Historical Open/Close Data would receive a 50% discount beginning with the fifth year of data (i.e., MDX charges $7,200 for each of the first four years of data and $3,600 for year five and each subsequent year of data). Alternatively, a customer may purchase Historical Open/Close Data on an individual CBOE security at a cost of $4.50 per security per month. This data would be available via download form MDX’s Web site. A 50% discount would be applied for requests for ten or more years of data, beginning with the tenth year of data. also believes the proposed MDX fees are consistent with Rule 603 under the Act (Distribution, Consolidation, and Display of Information with Respect to Quotations for and Transaction in NMS Stocks) 8 in that the fees are fair and reasonable and not unreasonably discriminatory. Members and nonmembers pay the same fees for the Open/Close Data. 2. Statutory Basis III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,4 in general, and furthers the objectives of Section 6(b)(4) of the Act,5 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among CBOE members and issuers and other persons using its facilities. The Open/Close Data is summarized and formatted by MDX in such a way that it increases its usability and value. In order to develop the Open/Close Data, MDX had to develop at significant expense a separate and more detailed system than the system MDX uses to generate its options summary data. The Exchange took these development costs into account when setting the proposed fees for the Open/ Close Data. The Exchange is not aware of any data product offered by another exchange that is similar to the Open/ Close Data product.6 While there is no direct comparison to another exchange’s product, the Exchange believes the proposed Open/Close Data fees are fair and reasonable in that the fees are less than the fees charged by another exchange for data that is not summarized and formatted in the way the Open/Close Data is.7 The Exchange 4 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 6 The Exchange believes the Options Clearing Corporation provides free of charge gross contract volume by class and by origin code only. 7 See Securities Exchange Act Release No. 53212 (February 2, 2006), 71 FR 6803 (February 9, 2006) (SR–ISE–2006–07) and Securities Exchange Act 5 15 3 An opening buy is a transaction that creates or increases a long position and an opening sell is a transaction that creates or increases a short position. A closing buy is a transaction made to close out a position. A closing sell is a transaction to reduce or eliminate a long position. VerDate Aug<31>2005 16:58 Nov 24, 2006 Jkt 211001 PO 00000 Frm 00130 Fmt 4703 Sfmt 4703 B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange 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. 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. 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–CBOE–2006–88 on the subject line. Release No. 53390 (February 28, 2006), 71 FR 11457 (March 7, 2006) (SR–ISE–2006–08). 8 17 CFR 242.603. E:\FR\FM\27NON1.SGM 27NON1 Federal Register / Vol. 71, No. 227 / Monday, November 27, 2006 / Notices (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on November • Send paper comments in triplicate 20, 2006, the Chicago Board Options to Nancy M. Morris, Secretary, Exchange, Incorporated (‘‘CBOE’’ or Securities and Exchange Commission, ‘‘Exchange’’) filed with the Securities Station Place, 100 F Street, NE., and Exchange Commission Washington, DC 20549–1090. (‘‘Commission’’) the proposed rule All submissions should refer to File change as described in Items I, II, and Number SR–CBOE–2006–88. This file III below, which Items have been number should be included on the substantially prepared by the Exchange. subject line if e-mail is used. To help the The Commission is publishing this Commission process and review your notice to solicit comments on the comments more efficiently, please use proposed rule change from interested only one method. The Commission will persons. post all comments on the Commission’s I. Self-Regulatory Organization’s Internet Web site (http://www.sec.gov/ Statement of the Terms of Substance of rules/sro.shtml). Copies of the the Proposed Rule Change submission, all subsequent amendments, all written statements The Exchange submits this rule with respect to the proposed rule change filing to modify its rules relating change that are filed with the to the allocation of stocks for the Commission, and all written Exchange’s proposed stock-trading communications relating to the facility, CBSX. The text of the proposed proposed rule change between the rule change is set forth below. Additions Commission and any person, other than are in italics; deletions are in [brackets]. those that may be withheld from the Chicago Board Options Exchange, public in accordance with the Incorporated provisions of 5 U.S.C. 552, will be available for inspection and copying in Rules the Commission’s Public Reference * * * * * Room. Copies of such filing also will be RULE 53.54. [Conditions on the] available for inspection and copying at Allocation of Securities to [STOC] the principal office of the CBOE. All CBSX DPMs comments received will be posted without change; the Commission does (a) CBSX [The STOC DPM not edit personal identifying Committee] may establish [(i) information from submissions. You restrictions applicable to all STOC should submit only information that DPMs on the concentration of securities you wish to make available publicly. All allocable to a single STOC DPM and to submissions should refer to File affiliated STOC DPMs and (ii)] Number SR–CBOE–2006–88 and should minimum eligibility standards be submitted on or before December 18, applicable to all [STOC] CBSX DPMs 2006. which must be satisfied in order for a [STOC] CBSX DPM to receive For the Commission, by the Division of allocations of securities, including but Market Regulation, pursuant to delegated not limited to standards relating to authority.9 adequacy of capital and number of Nancy M. Morris, personnel. Secretary. (b) CBSX shall determine, for each [FR Doc. E6–19976 Filed 11–24–06; 8:45 am] security in which CBSX begins trading, BILLING CODE 8011–01–P which CBSX DPM should be allocated such security. Factors to be considered in making such determinations may SECURITIES AND EXCHANGE include, but are not limited to, any one COMMISSION or more of the following: Performance, volume, capacity, market performance [Release No. 34–54792; File No. SR–CBOE– commitments, operational factors, 2006–96] efficiency, competitiveness, expressed preferences of issuers, and the best Self-Regulatory Organizations; interest of CBSX. Alternatively, in Chicago Board Options Exchange, instances where multiple securities are Incorporated; Notice of Filing of being allocated at one time, CBSX may Proposed Rule Change Regarding allocate such securities utilizing a draft Allocation of Stocks to CBSX DPMs where the draft selection order for the November 20, 2006. eligible CBSX DPMs is determined Pursuant to Section 19(b)(1) of the randomly by CBSX. Securities Exchange Act of 1934 sroberts on PROD1PC70 with NOTICES Paper Comments 1 15 9 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 16:58 Nov 24, 2006 2 17 Jkt 211001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00131 Fmt 4703 Sfmt 4703 68659 (c) Prior to the commencement of trading on CBSX, all securities that will initially trade on CBSX (pursuant to a rollout schedule determined by CBSX) shall be allocated as follows: (1) CBSX will randomly set a draft rotation for all CBSX DPMs. (2) The top 500 securities (based on a twelve-month average daily volume) will be selected by the DPMs (one by one) in the established rotation order. (3) Any additional securities selected by CBSX to initially trade on CBSX shall be allocated equally among the CBSX DPMs in a random fashion by CBSX. * * * * * II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CBOE included statements concerning 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 In September 2006, the Commission approved Exchange Chapters 50–55 governing the trading of non-option securities on the Exchange.3 The Exchange, via a separate rule filing, will be proposing to further modify Chapters 50–55 in connection with the establishment of the CBOE Stock Exchange (‘‘CBSX’’). CBSX will be a facility of the Exchange and will serve as the Exchange’s vehicle for trading non-option securities. CBSX would be a separate legal entity (a Delaware Limited Liability Company) that is owned by the Exchange and several strategic partners. The Exchange is also submitting rule filings proposing to establish CBSX as a facility of the Exchange and proposing to allow CBSX to appoint CBSX DPMs. The purpose of this filing is to adopt rules that would allow for the allocation of stocks to CBSX DPMs (the Exchange expects that the filing allowing appointment of 3 See Securities Exchange Act Release No. 54422 (September 11, 2006), 71 FR 54537 (September 15, 2006) (approving SR–CBOE–2004–21). See also Securities Exchange Act Release No. 54526 (September 27, 2006), 71 FR 58646 (October 4, 2006) (approving SR–CBOE–2006–70). E:\FR\FM\27NON1.SGM 27NON1

Agencies

[Federal Register Volume 71, Number 227 (Monday, November 27, 2006)]
[Notices]
[Pages 68657-68659]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-19976]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54771; File No. SR-CBOE-2006-88]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of Proposed Rule Change To Codify a Fee 
Schedule for the Sale of Open and Close Volume Data on CBOE Listed 
Options by Market Data Express, LLC

November 16, 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 November 3, 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 CBOE. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.

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[[Page 68658]]

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

    The CBOE proposes to codify a fee schedule for the sale of open and 
close volume data on CBOE listed options by Market Data Express, LLC 
(``MDX''), a wholly-owned subsidiary of CBOE. The text of the proposed 
rule change is available on the CBOE's Web site (http://www.cboe.com), 
the Office of the Secretary, CBOE, 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, 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 Amex has prepared summaries, set forth in Sections 
A, B, and C below, of the most significant aspects of such statements.

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

1. Purpose
    CBOE creates volume data for each CBOE listed option that consists 
of opening buys and opening sells and closing buys and closing 
sells.\3\ This opening and closing position data is subdivided by 
origin code (i.e., customer or firm) and the customer data is further 
subdivided by order size. The volume data is summarized by day and 
series (symbol, expiration date, strike price, call or put). This 
volume data is referred to herein as the ``Open/Close Data.''
---------------------------------------------------------------------------

    \3\ An opening buy is a transaction that creates or increases a 
long position and an opening sell is a transaction that creates or 
increases a short position. A closing buy is a transaction made to 
close out a position. A closing sell is a transaction to reduce or 
eliminate a long position.
---------------------------------------------------------------------------

    MDX offers the Open/Close Data for sale to CBOE members and non-
members. The fees that MDX assesses for the Open/Close Data are set 
forth in the Price List on MDX's Web site. Members and non-members are 
charged the same fees for the Open/Close Data.
    Under the proposal, customers may purchase Open/Close Data on a 
subscription basis or by ad hoc request. Daily Open/Close Data covering 
all CBOE securities would be available for purchase by subscribing to 
the Daily Update service at a cost of $600 per month. Subscribers to 
the Daily Update service would receive a daily data file via download 
from MDX's Web site. Historical Open/Close Data covering all CBOE 
securities may be purchased on an ad hoc request basis and is delivered 
via DVD. The charge for Historical Open/Close Data covering all CBOE 
securities would be $7,200 per year for requests for one to four years 
of data. Requests for five or more years of Historical Open/Close Data 
would receive a 50% discount beginning with the fifth year of data 
(i.e., MDX charges $7,200 for each of the first four years of data and 
$3,600 for year five and each subsequent year of data).
    Alternatively, a customer may purchase Historical Open/Close Data 
on an individual CBOE security at a cost of $4.50 per security per 
month. This data would be available via download form MDX's Web site. A 
50% discount would be applied for requests for ten or more years of 
data, beginning with the tenth year of data.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\4\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act,\5\ in particular, in that it 
is designed to provide for the equitable allocation of reasonable dues, 
fees, and other charges among CBOE members and issuers and other 
persons using its facilities. The Open/Close Data is summarized and 
formatted by MDX in such a way that it increases its usability and 
value. In order to develop the Open/Close Data, MDX had to develop at 
significant expense a separate and more detailed system than the system 
MDX uses to generate its options summary data. The Exchange took these 
development costs into account when setting the proposed fees for the 
Open/Close Data. The Exchange is not aware of any data product offered 
by another exchange that is similar to the Open/Close Data product.\6\ 
While there is no direct comparison to another exchange's product, the 
Exchange believes the proposed Open/Close Data fees are fair and 
reasonable in that the fees are less than the fees charged by another 
exchange for data that is not summarized and formatted in the way the 
Open/Close Data is.\7\ The Exchange also believes the proposed MDX fees 
are consistent with Rule 603 under the Act (Distribution, 
Consolidation, and Display of Information with Respect to Quotations 
for and Transaction in NMS Stocks) \8\ in that the fees are fair and 
reasonable and not unreasonably discriminatory. Members and non-members 
pay the same fees for the Open/Close Data.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
    \6\ The Exchange believes the Options Clearing Corporation 
provides free of charge gross contract volume by class and by origin 
code only.
    \7\ See Securities Exchange Act Release No. 53212 (February 2, 
2006), 71 FR 6803 (February 9, 2006) (SR-ISE-2006-07) and Securities 
Exchange Act Release No. 53390 (February 28, 2006), 71 FR 11457 
(March 7, 2006) (SR-ISE-2006-08).
    \8\ 17 CFR 242.603.
---------------------------------------------------------------------------

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

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

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

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the 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.

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-2006-88 on the subject line.

[[Page 68659]]

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.
    All submissions should refer to File Number SR-CBOE-2006-88. 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-2006-88 and should be submitted on or before 
December 18, 2006.
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
Nancy M. Morris,
Secretary.
[FR Doc. E6-19976 Filed 11-24-06; 8:45 am]
BILLING CODE 8011-01-P