Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Appointment of CBSX DPMs, 70814-70816 [E6-20656]
Download as PDF
<![CDATA[
70814
Federal Register / Vol. 71, No. 234 / Wednesday, December 6, 2006 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were 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 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.
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 the 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
Number SR–CBOE–2005–111 and
should be submitted on or before
December 27, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.18
Nancy M. Morris,
Secretary.
[FR Doc. E6–20621 Filed 12–5–06; 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
PWALKER on PRODPC60 with NOTICES
• 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
Number SR–CBOE–2005–111 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54831; File No. SR–CBOE–
2006–100]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the
Appointment of CBSX DPMs
November 29, 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 November
• Send paper comments in triplicate
27, 2006, the Chicago Board Options
to Nancy M. Morris, Secretary,
Exchange, Incorporated (‘‘Exchange’’ or
Securities and Exchange Commission,
‘‘CBOE’’) filed with the Securities and
100 F Street, NE, Washington, DC
Exchange Commission (‘‘Commission’’)
20549–1090.
the proposed rule change as described
All submissions should refer to File
in Items I and II below, which Items
Number SR–CBOE–2005–111. This file
have been substantially prepared by the
number should be included on the
Exchange. The Exchange has designated
subject line if e-mail is used. To help the this proposal as non-controversial under
Commission process and review your
Section 19(b)(3)(A)(iii) of the Act 3 and
comments more efficiently, please use
Rule 19b–4(f)(6) thereunder,4 which
only one method. The Commission will renders the proposed rule change
post all comments on the Commission’s effective upon filing with the
Internet Web site (https://www.sec.gov/
Commission. The Commission is
rules/sro.shtml). Copies of the
publishing this notice to solicit
submission, all subsequent
comments on the proposed rule change
amendments, all written statements
from interested persons.
with respect to the proposed rule
change that are filed with the
18 17 CFR 200.30–3(a)(12).
Commission, and all written
1 15 U.S.C. 78s(b)(1).
communications relating to the
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
proposed rule change between the
4 17 CFR 240.19b–4(f)(6).
Commission and any person, other than
VerDate Aug<31>2005
16:03 Dec 05, 2006
Jkt 211001
PO 00000
Frm 00081
Fmt 4703
Sfmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to adopt rules to
appoint CBOE Stock Exchange DPMs.
The text of the proposed rule change is
available on the Exchange’s Web site
(https://www.cboe.com), at the
Exchange’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 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.5 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 is a
separate legal entity (a Delaware
Limited Liability Company) that is
owned by the Exchange and several
strategic partners. The Exchange
separately has submitted a rule filing
governing the allocation of securities to
CBSX DPMs,6 and will shortly submit a
rule filing proposing to establish CBSX
as a facility of the Exchange.
The purpose of this filing is to adopt
rules that will allow for the
appointment of CBSX DPMs. Any such
appointments would be contingent on
Commission approval of rules governing
CBSX DPM trading procedures and
obligations. The Exchange hopes to
5 See Securities Exchange Act Release No. 54422
(September 11, 2006), 71 FR 54537 (September 15,
2006) (‘‘STOC Approval Order’’) (approving SR–
CBOE–2004–21).
6 See Securities Exchange Act Release No. 54792
(November 20, 2006), 71 FR 68659 (November 27,
2006) (notice of filing of SR–CBOE–2006–96).
E:\FR\FM\06DEN1.SGM
06DEN1
Federal Register / Vol. 71, No. 234 / Wednesday, December 6, 2006 / Notices
launch CBSX on February 5, 2007.
Establishing rules to allow for
appointment of CBSX DPMs ahead of
the anticipated launch of CBSX will
allow the CBSX DPM firms to
immediately market CBSX as a
destination marketplace.
The Exchange expects CBSX will
appoint a limited number of CBSX
DPMs. In accordance with the proposed
revisions to Rule 53.53, CBSX will
select the firms that would be
designated as CBSX DPMs. Factors to be
considered in making such a selection
are essentially identical to the factors set
forth in the current rule applicable to
STOC DPMs. Such factors may include,
but are not limited to, any one or more
of the following: (1) Adequacy of
capital; (2) operational capacity; (3)
trading experience and observance of
generally accepted standards of conduct
by the applicant; (4) number and
experience of support personnel of the
applicant; (5) regulatory history of
adherence to Exchange rules by the
applicant; (6) willingness and ability of
the applicant to promote CBSX as a
marketplace; (7) performance
evaluations conducted pursuant to
Exchange/CBSX rules; and (8) in the
event that one or more shareholders,
directors, officers, partners, managers,
members, or other principals of an
applicant is or has previously been a
shareholder, director, officer, partner,
manager, member, or other principal in
another CBSX DPM, adherence by such
CBSX DPM to the requirements set forth
in CBSX rules regarding CBSX DPM
responsibilities and obligations during
the time period in which such person(s)
held such position(s) with the CBSX
DPM.
PWALKER on PRODPC60 with NOTICES
2. Statutory Basis
CBOE believes the proposed rule
change is consistent with the Act and
the rules and regulations under the Act
applicable to a national securities
exchange and, in particular, the
requirements of Section 6(b) of the Act.7
Specifically, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 8 requirements that
the rules of an exchange be designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and to protect investors and the
public interest.
7 15
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Aug<31>2005
16:03 Dec 05, 2006
Jkt 211001
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE 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 proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A) of the Act 9 and
subparagraph (f)(6) of Rule 19b–4
thereunder.10 Because the foregoing
proposed rule change (i) does not
significantly affect the protection of
investors or the public interest; (ii) does
not impose any significant burden on
competition; and (iii) does not become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.11
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of filing. However, Rule 19b–
4(f)(6)(iii) permits the Commission to
waive the operative delay if such action
is consistent with the protection of
investors and the public interest. The
Exchange has asked the Commission to
waive the operative delay to permit the
proposed rule change to become
effective prior to the 30th day after
filing.
The Commission has determined to
waive the 30-day delay and allow the
proposed rule change to become
operative immediately.12 The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
11 Rule 19b–4(f)(6)(iii) also requires the Exchange
to give written notice to the Commission of its
intent to file the proposed rule change at least five
business days prior to filing. The Exchange
complied with this requirement.
12 For purposes only of waiving the operative
delay of this proposal, the Commission notes that
it has considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
10 17
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
70815
public interest. The proposed rule is
substantially similar to the previous
version of the rule approved for the
Exchange’s STOC system.13
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
purposes 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–2006–100 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–2006–100. 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 Commissions
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 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
13 See
E:\FR\FM\06DEN1.SGM
STOC Approval Order, supra note 5.
06DEN1
70816
Federal Register / Vol. 71, No. 234 / Wednesday, December 6, 2006 / Notices
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–CBOE–2006–100 and
should be submitted on or before
December 27, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Nancy M. Morris,
Secretary.
[FR Doc. E6–20656 Filed 12–5–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54821; File No. SR–FICC–
2006–13]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Order
Granting Approval of a Proposed Rule
Change Relating to the Federal
Reserve’s National Settlement System
November 28, 2006.
I. Introduction
On July 11, 2006, Fixed Income
Clearing Corporation (‘‘FICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) and on
August 6, 2006 amended proposed rule
change SR–FICC–2006–13 pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’).1 Notice
of the proposal was published in the
Federal Register on October 26, 2006.2
No comment letters were received. For
the reasons discussed below, the
Commission is granting approval of the
proposed rule change.
II. Description
The proposed rule change amends the
rules of FICC’s Mortgage-Backed
Securities Division (‘‘MBSD’’) to require
clearing participants to satisfy their cash
settlement amounts ultimately through
the Federal Reserve’s National
Settlement Service (‘‘NSS’’).3 The MBSD
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 Securities Exchange Act Release No. 54622,
(October 18, 2006), 71 FR 62632.
3 For a description of NSS, refer to https://
www.frbservices.org/Wholesale/natsettle.html.
The Commission previously approved a proposed
rule change filed by FICC to make a similar
amendment to the rules of its Government
Securities Division (‘‘GSD’’). Securities Exchange
Act Release No. 52853 (November 29, 2005), 70 FR
72682 (December 6, 2005) [File No. SR–FICC–2005–
14]. FICC’s affiliates, The Depository Trust
Company (‘‘DTC’’) and the National Securities
Clearing Corporation (‘‘NSCC’’) also use NSS in
their funds settlement processes. However, DTC
and NSCC do not currently use NSS for the
payment of credit. MBSD will process both the
PWALKER on PRODPC60 with NOTICES
1 15
VerDate Aug<31>2005
16:03 Dec 05, 2006
Jkt 211001
cash settlement process is set forth in
Rule 8 of Article II of the MBSD’s rules.
On a daily basis, FICC computes a cash
balance, which is either a debit amount
or a credit amount, per participant
account and nets the cash balances
across aggregated accounts. Unlike at
GSD where cash settlement occurs on a
daily basis, at MBSD there are specific
dates on which debits and credits are
required to be made. Settlement dates at
MBSD are based upon the settlement
dates of the different classes of MBSDeligible securities. There is a time
deadline for the payment of debits to
FICC as announced by the MBSD from
time to time. All payments of cash
settlement amounts by a MBSD clearing
participant to FICC and all collections of
cash settlement amounts by a MBSD
clearing participant from FICC are done
through depository institutions that are
designated by MBSD participants and
by FICC to act on their behalf with
regard to such payments and
collections. All payments are made by
fund wires from one depository
institution to the other.
Under the proposed rule change, the
required payment mechanism for the
satisfaction of cash settlement amounts
will be the NSS. FICC will appoint DTC
as its settlement agent for purposes of
interfacing with the NSS.4 In order to
satisfy its cash settlement obligations
through the NSS process, each MBSD
clearing participant will appoint a ‘‘cash
settling bank.’’ An MBSD clearing
participant that qualifies may act as its
own cash settling bank.
The MBSD will establish a limited
membership category for cash settling
banks. Banks or trust companies that are
DTC settling banks (as defined in DTC’s
rules and procedures), GSD funds-only
settling bank members (as defined in the
GSD’s rules), or clearing participants
with direct access to a Federal Reserve
Bank and NSS will be eligible to become
MBSD cash settling bank participants by
executing the requisite membership
agreements for this purpose. Banks or
trust companies that do not fall into
these categories and that desire to
become MBSD cash settling bank
participants will need to apply to FICC.
Such banks or trust companies will also
need to have direct access to a Federal
Reserve Bank and the NSS as well as
satisfy the financial responsibility
standards and operational capability
imposed by FICC from time to time.
Initially, these applicants will be
debits and credits of its cash settlement process
through the NSS, as is the case for the GSD.
4 DTC currently performs this service for the GSD
and NSCC.
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
required to meet and to maintain a Tier
1 capital ratio of 6 percent.5
In addition to the membership
agreement, each MBSD clearing
participant and the cash settling bank it
has selected will be required to execute
an agreement whereby the participant
will appoint the bank to act on its behalf
for cash settlement purposes. The bank
will also be required to execute any
agreements that may be required by the
Federal Reserve Bank for participation
in the NSS for FICC’s cash settlement
process. The cash settling banks will be
required to follow the procedures for
cash settlement payment processing set
forth in the proposed rule change. This
includes, for example, providing FICC
or its settlement agent with the requisite
acknowledgement of the bank’s
intention to settle the cash settlement
amounts of the MBSD clearing
participants it represents on a timely
basis and to participate in the NSS
process. Cash settling banks will have
the right to refuse to settle for a
particular MBSD clearing participant
and will also be able to opt out of NSS
for one business day if they are
experiencing extenuating
circumstances.6 In such a situation, the
clearing participant would be
responsible for ensuring that its cash
settlement debit was wired to the
depository institution designated by
FICC to receive such payments by the
payment deadline. The proposed rule
change makes clear that the obligation
of a MBSD clearing participant to fulfill
its cash settlement would remain at all
times with the MBSD clearing
participant.
As FICC’s settlement agent, DTC will
submit instructions to have the Federal
Reserve Bank accounts of the cash
settlement banks charged for the debit
amounts and credited for the credit
amounts. Utilization of NSS will
eliminate the need for the initiation of
wire transfers in satisfaction of MBSD
settlement amounts, and FICC believes
that it will therefore reduce the risk that
the MBSD clearing participant that
designated the bank would incur a late
payment fine due to delay in wiring
funds. The proposed rule change should
also reduce operational burden for the
operations staff of FICC and of the
MBSD clearing participants.
5 This is the same financial requirement for GSD
funds-only settling banks that fall into a similar
category. As with the GSD, FICC would retain the
authority and discretion to change this financial
criterion by providing advanced notice to the
settling banks and the netting members through an
important notice.
6 These procedures are consistent with the GSD,
NSCC, and DTC procedures in this respect.
E:\FR\FM\06DEN1.SGM
06DEN1
]]>Agencies
[Federal Register Volume 71, Number 234 (Wednesday, December 6, 2006)]
[Notices]
[Pages 70814-70816]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-20656]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54831; File No. SR-CBOE-2006-100]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to the Appointment of CBSX DPMs
November 29, 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 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 substantially prepared by
the Exchange. The Exchange has designated this proposal as non-
controversial under Section 19(b)(3)(A)(iii) of the Act \3\ and Rule
19b-4(f)(6) thereunder,\4\ which renders the proposed rule change
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)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to adopt rules to appoint CBOE Stock Exchange DPMs.
The text of the proposed rule change is available on the Exchange's Web
site (https://www.cboe.com), at the Exchange'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 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.\5\ 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 is a separate legal entity (a Delaware Limited Liability Company)
that is owned by the Exchange and several strategic partners. The
Exchange separately has submitted a rule filing governing the
allocation of securities to CBSX DPMs,\6\ and will shortly submit a
rule filing proposing to establish CBSX as a facility of the Exchange.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 54422 (September 11,
2006), 71 FR 54537 (September 15, 2006) (``STOC Approval Order'')
(approving SR-CBOE-2004-21).
\6\ See Securities Exchange Act Release No. 54792 (November 20,
2006), 71 FR 68659 (November 27, 2006) (notice of filing of SR-CBOE-
2006-96).
---------------------------------------------------------------------------
The purpose of this filing is to adopt rules that will allow for
the appointment of CBSX DPMs. Any such appointments would be contingent
on Commission approval of rules governing CBSX DPM trading procedures
and obligations. The Exchange hopes to
[[Page 70815]]
launch CBSX on February 5, 2007. Establishing rules to allow for
appointment of CBSX DPMs ahead of the anticipated launch of CBSX will
allow the CBSX DPM firms to immediately market CBSX as a destination
marketplace.
The Exchange expects CBSX will appoint a limited number of CBSX
DPMs. In accordance with the proposed revisions to Rule 53.53, CBSX
will select the firms that would be designated as CBSX DPMs. Factors to
be considered in making such a selection are essentially identical to
the factors set forth in the current rule applicable to STOC DPMs. Such
factors may include, but are not limited to, any one or more of the
following: (1) Adequacy of capital; (2) operational capacity; (3)
trading experience and observance of generally accepted standards of
conduct by the applicant; (4) number and experience of support
personnel of the applicant; (5) regulatory history of adherence to
Exchange rules by the applicant; (6) willingness and ability of the
applicant to promote CBSX as a marketplace; (7) performance evaluations
conducted pursuant to Exchange/CBSX rules; and (8) in the event that
one or more shareholders, directors, officers, partners, managers,
members, or other principals of an applicant is or has previously been
a shareholder, director, officer, partner, manager, member, or other
principal in another CBSX DPM, adherence by such CBSX DPM to the
requirements set forth in CBSX rules regarding CBSX DPM
responsibilities and obligations during the time period in which such
person(s) held such position(s) with the CBSX DPM.
2. Statutory Basis
CBOE believes the proposed rule change is consistent with the Act
and the rules and regulations under the Act applicable to a national
securities exchange and, in particular, the requirements of Section
6(b) of the Act.\7\ Specifically, the Exchange believes the proposed
rule change is consistent with the Section 6(b)(5) \8\ requirements
that the rules of an exchange be designed to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system, and to protect
investors and the public interest.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE does not believe that the proposed rule change 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
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \9\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\10\ Because the foregoing proposed rule change (i) does not
significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
and (iii) does not become operative for 30 days from the date on which
it was filed, or such shorter time as the Commission may designate, if
consistent with the protection of investors and the public interest,
the proposed rule change has become effective pursuant to Section
19(b)(3)(A) of the Act and Rule 19b-4(f)(6)(iii) thereunder.\11\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ Rule 19b-4(f)(6)(iii) also requires the Exchange to give
written notice to the Commission of its intent to file the proposed
rule change at least five business days prior to filing. The
Exchange complied with this requirement.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. However,
Rule 19b-4(f)(6)(iii) permits the Commission to waive the operative
delay if such action is consistent with the protection of investors and
the public interest. The Exchange has asked the Commission to waive the
operative delay to permit the proposed rule change to become effective
prior to the 30th day after filing.
The Commission has determined to waive the 30-day delay and allow
the proposed rule change to become operative immediately.\12\ The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
The proposed rule is substantially similar to the previous version of
the rule approved for the Exchange's STOC system.\13\
---------------------------------------------------------------------------
\12\ For purposes only of waiving the operative delay of this
proposal, the Commission notes that it has considered the proposed
rule's impact on efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
\13\ See STOC Approval Order, supra note 5.
---------------------------------------------------------------------------
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 purposes 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-2006-100 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-2006-100. 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 Commissions 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 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
[[Page 70816]]
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-CBOE-2006-100 and should be submitted on or before
December 27, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-20656 Filed 12-5-06; 8:45 am]
BILLING CODE 8011-01-P
