Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to CBOE's Holdback Timer, 7336-7338 [E8-2204]
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Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Notices
• Ability to transact in any ETF
underlying markets.
The regulatory requirements
applicable to DARTs will be surveilled
for by the FINRA Amex Regulation
Division (‘‘FINRA Amex’’) consistent
with current surveillance procedures for
Registered Traders on the Exchange.
FINRA Amex staff will work with Amex
technical staff on planning the
necessary changes to AEMI to capture
required surveillance data and
surveilling the increased number of
market makers that the program is
expected to attract. Adjustments to
current technology and surveillance
procedures will likely also be
necessitated by the fact that DARTs will
not be physically located on the floor of
the Exchange.
DARTs will interface with the Amex’s
Floor Officials in the case of trade
disputes substantially in accordance
with existing procedures used for
SROTs. Each DART accordingly will be
required to designate persons on and/or
off-floor to be in direct real-time contact
with Floor Officials on such matters.
Regulation M will apply to DARTs in
the same way that it applies to other
market participants, as will Amex Rule
193 to the extent a DART is affiliated
with a specialist member organization.
However, no expansion of the
application of Amex Rule 193 beyond
current practice is intended.10
Finally, the Comment Letter had
observed that a provision proposed in
SR–Amex–2007–85 relating to
minimum capital requirements for
DARTs is unnecessary due to its current
inapplicability to DARTs (who will be
subject to the Commission’s net capital
rule).11 The Exchange has eliminated
that provision from the current
proposed rule change.
jlentini on PROD1PC65 with NOTICES
III. Discussion
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.12 In particular, the
Commission finds that the proposal is
consistent with section 6(b)(5) of the
10 The language in Rule 110A–AEMI(c)(ii) crossreferencing Amex Rule 193 is substantively
identical to language also contained in Amex Rules
993–ANTE(d)(iii) (Supplemental Registered
Options Traders) and 994–ANTE(d)(iii) (Remote
Registered Options Traders), neither of which have
been interpreted to expand the applicability of
Amex Rule 193 beyond affiliates of specialists.
11 Rule 15c3–1 under the Act, 17 CFR 240.15c3–
1.
12 In approving this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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17:02 Feb 06, 2008
Jkt 214001
Act,13 which requires, among other
things, that a national securities
exchange’s rules be designed to promote
just and equitable principles of trade, to
remove impediments to and to perfect
the mechanism of a free and open
market and a national market system,
and, in general, to protect investors and
the public interest.
Under the proposal, DARTs would be
permitted to quote electronically in
ETFs from off the Exchange’s physical
trading floor. Amex’s rules already
provide for one type of competing
market maker in ETF securities—
Registered Traders. Like Registered
Traders, DARTs will not be permitted to
enter quotations in equity securities. In
addition, similar rules would govern the
allocations of DARTs and Registered
Traders, except DARTs will not be
permitted to participate in a post-trade
allocation in connection with an auction
trade. The Commission believes it is
reasonable and consistent with the Act
for Amex to establish DARTs as remote
competitive market makers subject to
the allocation rules described in the
proposal.
The Commission notes that DARTs
will be required to meet certain
eligibility requirements. The existence
of order flow commitments between a
DART applicant and order flow
providers is one such factor. The
Commission notes the Exchange’s
representation that a future change to, or
termination of, any such commitments
would not be used by the Exchange at
any point in the future to terminate or
take remedial action against a DART,
and that the Exchange would not take
remedial action solely because orders
subject to any such commitments were
not subsequently routed to the
Exchange. Similarly, the Exchange has
included the ‘‘willingness to promote
the Exchange’’ as a factor that the
Committee may consider when making
its application decisions. The
Commission notes the Exchange’s
representation that the Committee
would not apply this factor to in any
way restrict, either directly or
indirectly, a DART’s activities as a
market maker or specialist on other
exchanges, or to restrict how a DART
handles orders it holds in a fiduciary
capacity to which it owes a duty of best
execution.
The Commission also notes that,
should the Committee decide not to
approve a DART applicant, or should a
DART’s appointment be suspended or
terminated in one or more classes, a
DART applicant or DART, respectively,
would be entitled to a hearing under
13 15
PO 00000
U.S.C. 78f(b)(5).
Frm 00094
Fmt 4703
Sfmt 4703
Article IV, section 1(g) of the Amex
Constitution and Amex Rule 40.
Proposed Amex Rule 110A(b)–AEMI
sets forth the obligations that a DART
would be required to fulfill.
Specifically, a DART would be required
to generate continuous, two-sided
quotations in all assigned ETF
securities. A DART’s affirmative market
making obligations appear to be
sufficient to justify the benefits it would
receive as a market maker.
The proposal also appears reasonably
designed to prevent the misuse of
material, non-public information with
any affiliates that may conduct a
brokerage business in securities
assigned to a DART, or that may act as
a specialist or market maker in any
security underlying a derivative security
assigned to a DART.
IV. Conclusion
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,14 that the
proposed rule change (SR–Amex–2007–
138) is approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–2123 Filed 2–6–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57250; File No. SR–CBOE–
2008–11]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to CBOE’s
Holdback Timer
February 1, 2008.
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 January
29, 2008, 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
substantially prepared by the CBOE.
The Exchange filed the proposal as a
‘‘non-controversial’’ proposed rule
change pursuant to Section 19(b)(3)(A)
14 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
15 17
E:\FR\FM\07FEN1.SGM
07FEN1
Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Notices
of the Act 3 and Rule 19b–4(f)(6)
thereunder,4 which rendered the
proposal effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to amend its rules
relating to the usage of its holdback
timer. The text of the proposed rule
change is available at CBOE, the
Commission’s Public Reference Room,
and https://www.cboe.org/Legal.
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 proposal.
The text of these statements may be
examined at the places specified in Item
IV below. CBOE 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
On May 16, 2007, the Commission
approved CBOE’s proposed rule change,
which implemented an additional quote
mitigation strategy, namely, a holdback
timer.5 In its filing, CBOE stated that it
would utilize a holdback timer that
delays quotation updates to OPRA for
no longer than one (1) second, and that
it would be used in option classes
trading on the Hybrid Trading System
and Hybrid 2.0 Platform. Subsequently,
CBOE implemented a new trading
platform, the Hybrid 3.0 Platform,
which allows a single quoter to submit
an electronic quote which represents the
aggregate Market-Maker quoting interest
in a series in the trading crowd.6
CBOE now proposes to clarify that it
may utilize the holdback timer in any
option classes traded on CBOE,
including option classes traded on the
Hybrid 3.0 Platform. CBOE believes that
the holdback timer is an appropriate
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release 55772 (May
16, 2007), 72 FR 28732 (May 22, 2007) (SR–CBOE–
2007–45).
6 See CBOE Rule 1.1(aaa).
and useful tool in mitigating quotations,
as it reduces the number of quotations
that CBOE disseminates to OPRA,
without negatively impacting
transparency. CBOE also notes that the
holdback timer has been endorsed by
the Securities Information and Financial
Markets Association. CBOE is not
proposing to change the manner in
which the holdback timer functions, as
described in its original rule filing SR–
CBOE–2007–45.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 7 in general, and furthers the
objectives of Section 6(b)(5) of the Act 8
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, promote just and
equitable principles of trade, 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.
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 either
solicited or received by the Exchange.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 9 and Rule 19b–4(f)(6)
thereunder,10 because the foregoing
proposed rule does not: (i) significantly
affect the protection of investors or the
public interest; (ii) impose any
significant burden on competition; and
(iii) 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.
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30-days after
4 17
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17:02 Feb 06, 2008
Jkt 214001
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(6).
8 15
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
7337
the date of filing.11 However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest.12 The
Exchange has requested that the
Commission waive the 30-day operative
delay. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because such waiver will allow CBOE to
implement the holdback timer in Hybrid
3.0 option classes immediately, and
thus reduce the number of quotations it
disseminates to OPRA. Furthermore, the
proposed rule change does not present
any novel regulatory issues as the
holdback timer is already implemented
with respect to options classes trading
on the Hybrid Trading System and
Hybrid 2.0 Platform. For these reasons,
the Commission designates the proposal
to be operative upon filing with the
Commission.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.14
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
Number SR–CBOE–2008–11 on the
subject line.
11 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the self-regulatory
organization to give the Commission notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
CBOE has satisfied the five-day pre-filing
requirement.
12 17 CFR 240.19b–4(f)(6)(iii).
13 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
14 See 15 U.S.C. 78s(b)(3)(C).
E:\FR\FM\07FEN1.SGM
07FEN1
7338
Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Notices
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–2008–11. 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, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of the 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–2008–11 and should
be submitted on or before February 28,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–2204 Filed 2–6–08; 8:45 am]
jlentini on PROD1PC65 with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57256; File No. SR–CBOE–
2008–09]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of
Proposed Rule Change Establishing a
Voluntary Professional Designation
February 1, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 2 thereunder,
notice is hereby given that on January
18, 2008, the Chicago Board Options
Exchange, Incorporated (the ‘‘Exchange’’
or ‘‘CBOE’’) 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
substantially prepared by the Exchange.
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 Exchange proposes to adopt a
voluntary professional designation. The
text of the proposed rule change is
available at CBOE, the Commission’s
Public Reference Room, and (https://
www.cboe.org/Legal).
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. CBOE 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
This filing proposes to allow nonbroker-dealer customers to voluntarily
have their orders categorized as brokerdealer orders for order handling, order
execution, and cancel fee calculation
purposes (‘‘Voluntary Professional(s)’’).
1 15
15 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
17:02 Feb 06, 2008
2 17
Jkt 214001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00096
Fmt 4703
Specifically, these orders would be
treated as broker-dealer orders for
purposes of CBOE Rules 6.13 (CBOE
Hybrid System’s Automatic Execution
Feature), 6.45 (Priority of Bids and
Offers—Allocation of Trades), 6.45A
(Priority and Allocation of Equity
Option Trades on the CBOE Hybrid
System), 6.45B (Priority and Allocation
of Trades in Index Options and Options
on ETFs on the CBOE Hybrid System),
and 6.53C (Complex Orders on the
Hybrid System).
Some Exchange users have requested
this flexibility because it is more
suitable to their trading strategies that
involve high volume order submission
and cancellation. These Voluntary
Professionals would participate on
trades on the same terms as brokerdealer orders for purposes of the rules
set forth above. Orders from Voluntary
Professionals would continue to be
treated as public customer orders for
purposes of the linkage-related rules.
CBOE would provide the same awaymarket protection for orders from
Voluntary Professionals as for orders
from public customers. Additionally,
orders from Voluntary Professionals that
are cancelled would not be counted as
public customer order cancellations in
connection with the cancellation fee
calculation applicable to clearing
members. The Exchange intends to
establish, via a separate rule filing under
Section 19(b) of the Act, a transaction
fee applicable to Voluntary
Professionals and the Exchange would
not commence the Voluntary
Professional program until such fee was
in place.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,3 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,4 in particular, in that it is
designed to promote just and equitable
principles of trade, serve to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and
protect investors and the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
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.
3 15
4 15
Sfmt 4703
E:\FR\FM\07FEN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
07FEN1
]]>Agencies
[Federal Register Volume 73, Number 26 (Thursday, February 7, 2008)]
[Notices]
[Pages 7336-7338]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-2204]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57250; File No. SR-CBOE-2008-11]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to CBOE's Holdback Timer
February 1, 2008.
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 January 29, 2008, 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 substantially prepared by
the CBOE. The Exchange filed the proposal as a ``non-controversial''
proposed rule change pursuant to Section 19(b)(3)(A)
[[Page 7337]]
of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which rendered the
proposal effective upon filing with the Commission. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------
\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
CBOE proposes to amend its rules relating to the usage of its
holdback timer. The text of the proposed rule change is available at
CBOE, the Commission's Public Reference Room, and https://www.cboe.org/
Legal.
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 proposal. The text of these
statements may be examined at the places specified in Item IV below.
CBOE 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
On May 16, 2007, the Commission approved CBOE's proposed rule
change, which implemented an additional quote mitigation strategy,
namely, a holdback timer.\5\ In its filing, CBOE stated that it would
utilize a holdback timer that delays quotation updates to OPRA for no
longer than one (1) second, and that it would be used in option classes
trading on the Hybrid Trading System and Hybrid 2.0 Platform.
Subsequently, CBOE implemented a new trading platform, the Hybrid 3.0
Platform, which allows a single quoter to submit an electronic quote
which represents the aggregate Market-Maker quoting interest in a
series in the trading crowd.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release 55772 (May 16, 2007), 72
FR 28732 (May 22, 2007) (SR-CBOE-2007-45).
\6\ See CBOE Rule 1.1(aaa).
---------------------------------------------------------------------------
CBOE now proposes to clarify that it may utilize the holdback timer
in any option classes traded on CBOE, including option classes traded
on the Hybrid 3.0 Platform. CBOE believes that the holdback timer is an
appropriate and useful tool in mitigating quotations, as it reduces the
number of quotations that CBOE disseminates to OPRA, without negatively
impacting transparency. CBOE also notes that the holdback timer has
been endorsed by the Securities Information and Financial Markets
Association. CBOE is not proposing to change the manner in which the
holdback timer functions, as described in its original rule filing SR-
CBOE-2007-45.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \7\ in general, and furthers the objectives of Section
6(b)(5) of the Act \8\ in particular, in that it is designed to prevent
fraudulent and manipulative acts and practices, promote just and
equitable principles of trade, 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.
---------------------------------------------------------------------------
\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
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 either solicited or received by the
Exchange.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) thereunder,\10\ because
the foregoing proposed rule does not: (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30-days after the date of filing.\11\
However, Rule 19b-4(f)(6)(iii) permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest.\12\ The Exchange has requested that
the Commission waive the 30-day operative delay. The Commission
believes that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest because such waiver
will allow CBOE to implement the holdback timer in Hybrid 3.0 option
classes immediately, and thus reduce the number of quotations it
disseminates to OPRA. Furthermore, the proposed rule change does not
present any novel regulatory issues as the holdback timer is already
implemented with respect to options classes trading on the Hybrid
Trading System and Hybrid 2.0 Platform. For these reasons, the
Commission designates the proposal to be operative upon filing with the
Commission.\13\
---------------------------------------------------------------------------
\11\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the self-regulatory organization to give the
Commission notice of its intent to file the proposed rule change,
along with a brief description and text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. CBOE has satisfied the five-day pre-filing requirement.
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
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.\14\
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\14\ See 15 U.S.C. 78s(b)(3)(C).
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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 Number SR-CBOE-2008-11 on the subject line.
[[Page 7338]]
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-2008-11. 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, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the 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-2008-11 and should be
submitted on or before February 28, 2008.
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\15\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-2204 Filed 2-6-08; 8:45 am]
BILLING CODE 8011-01-P
