Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Off-Floor DPMs, 18016-18018 [E8-6733]
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18016
Federal Register / Vol. 73, No. 64 / Wednesday, April 2, 2008 / Notices
because the additional quote and
message traffic from any additional
index option series is not expected to
significantly impact current system
capacity. In addition, the Exchange
believes the proposed rule change is
consistent with the provisions of
Section 6 of the Act,10 in general, and
with Section 6(b)(5) of the Act,11 in
particular, in that the proposal is
designed to prevent fraudulent and
manipulative acts and practices, 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, in general, to protect
investors and the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
BSE 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 were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change 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, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 12 and Rule 19b–
4(f)(6) thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) may not become
operative prior to 30 days after the date
of filing, unless the Commission
designates a shorter time if such action
is consistent with the protection of
investors and the public interest.14 The
Exchange has requested that the
Commission waive the 30-day operative
delay. The Commission believes that
U.S.C. 78f.
U.S.C. 78f(b)(5).
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file 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. BSE has complied with this
requirement.
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest. The
Commission notes that other selfregulatory organizations recently
adopted substantially similar rule
changes that were effective upon
filing,15 and that this filing raises no
new regulatory issues.
The Commission notes the Exchange’s
representations that it possesses the
necessary systems capacity to handle
the additional traffic associated with the
additional listing of a seventh contract
month in order to maintain four
consecutive near term contract months
for those broad-based security index
options upon which the Exchange
calculates a constant three-month
volatility index. The Commission
hereby grants the Exchange’s request
and designates the proposal as operative
upon filing.16
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–BSE–2008–14 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BSE–2008–14. This file
10 15
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11 15
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15 See Securities Exchange Act Release Nos.
57284 (February 7, 2008), 73 FR 8387 (February 13,
2008) (SR–NYSEArca–2008–16); 57104 (January 4,
2008), 73 FR 2070 (January 11, 2008) (SR–ISE–
2007–113); 57449 (March 7, 2008), (SR–Amex–
2008–13).
16 For purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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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, on official business days between
the hours of 10 a.m. and 3 p.m. Copies
of such filing also will be available for
inspection and copying at the principal
office of BSE. 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–BSE–
2008–14 and should be submitted on or
before April 23, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–6788 Filed 4–1–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57568; File No. SR–CBOE–
2008–32]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Related to Off-Floor
DPMs
March 26, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 24,
2008, the Chicago Board Options
Exchange, Incorporated (the ‘‘Exchange’’
or ‘‘CBOE’’) filed with the Securities
and Exchange Commission (the
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 73, No. 64 / Wednesday, April 2, 2008 / Notices
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been
substantially prepared by the Exchange.
The Exchange filed the proposal as a
‘‘non-controversial’’ proposed rule
change pursuant to Section
19(b)(3)(A)(iii) of the Act 3 and Rule
19b–4(f)(6) thereunder.4 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 amend
CBOE rules relating to DPMs. The text
of the proposed rule change is available
at the Exchange, at the Commission’s
Public Reference Room, and at 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, 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
rmajette on PROD1PC64 with NOTICES
1. Purpose
Last year, CBOE amended its rules to
provide DPMs with the flexibility to
operate remotely away from CBOE’s
trading floor as a so-called ‘‘Off-Floor
DPM.’’ 5 At the time, CBOE stated that
a DPM could function as an Off-Floor
DPM in equity option classes. CBOE
now proposes to amend its rules to
provide DPMs with the same flexibility
to operate as an Off-Floor DPM in any
option class traded on the Hybrid
Trading System and Hybrid 2.0
Platform. Specifically, CBOE proposes
to amend CBOE Rule 8.80 and CBOE
Rule 8.83, which describe the option
classes in which an Off-Floor DPM can
function.6
3 15
U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 55531
(March 26, 2007), 72 FR 15736 (April 2, 2007) (SR–
CBOE–2006–94) (the ‘‘original filing’’).
6 CBOE also proposes to amend CBOE Rule 6.45B
to clarify, as it did CBOE Rule 6.45A in the original
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CBOE proposes to clarify that an OffFloor DPM can function in option
classes traded on the Hybrid 2.0
Platform 7 in addition to the Hybrid
Trading System.8 At the time CBOE’s
rule filing to allow Off-Floor DPMs was
approved, CBOE’s trading platforms
included the Hybrid Trading System
and the Hybrid 2.0 Platform, the latter
of which was encompassed in the
definition of Hybrid Trading System
under CBOE Rule 1.1(aaa). Later in
2007, however, CBOE established a new
trading platform—the Hybrid 3.0
Platform.9 Accordingly, CBOE wishes to
clarify that Off-Floor DPMs can function
in the Hybrid Trading System and the
Hybrid 2.0 Platform, but not the Hybrid
3.0 Platform.
By expanding the types of option
classes in which an Off-Floor DPM can
function, CBOE believes that the rule
change will provide flexibility to
member organizations that may wish to
function remotely in various types of
option classes. It will further provide
flexibility to CBOE when allocating
option classes, as CBOE could
determine to allocate non-equity option
classes to a DPM or an Off-Floor DPM.
Expanding the category of option classes
in which a DPM can function as an OffFloor DPM also removes a potential
operational issue for a DPM that has
been allocated equity and non-equity
option classes. Absent this change to
CBOE’s rules, a DPM organization that
is approved to function as an Off-Floor
DPM would need to maintain a presence
on the trading floor as a DPM for its
non-equity option classes, while being
permitted to function as an Off-Floor
DPM in its equity option classes.
Accordingly, CBOE believes that the
proposed rule change is designed to
promote just and equitable principles of
trade and also promotes efficiency.
2. Statutory Basis
The Exchange 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.10 Specifically, the Exchange
believes the proposed rule change is
consistent with the requirements of
filing, that the DPM participation entitlement for
orders represented in open outcry is only applicable
to an On-Floor DPM. See CBOE Rules 8.83 and 8.87.
7 The Hybrid 2.0 Platform is an enhanced
platform that allows remote quoting by authorized
categories of members.
8 See CBOE Rule 1.1(aaa).
9 See Securities Exchange Act Release No. 55874
(June 7, 2007), 72 FR 32688 (June 13, 2007) (SR–
CBOE–2006–101).
10 15 U.S.C. 78f(b).
PO 00000
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18017
Section 6(b)(5) of the Act 11 that the
rules of an exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts and, in general, to
protect investors and the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will impose any
burden on competition 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
Because the foregoing 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, provided that the selfregulatory organization has given the
Commission written notice of its intent
to file 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, the proposed rule change
has become effective pursuant to
Section 19(b)(3)(A)(iii) of the Act 12 and
Rule 19b–4(f)(6) thereunder.13 At any
time within 60 days of the filing of such
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.
11 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A)(iii).
13 17 CFR 240.19b–4(f)(6). Rule 19b–4(f)(6) under
the Act requires a self-regulatory organization to
give written notice of a proposed rule change filed
pursuant to this subsection at least five business
days prior to filing. CBOE complied with this
requirement.
12 15
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18018
Federal Register / Vol. 73, No. 64 / Wednesday, April 2, 2008 / Notices
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
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–2008–32 on the
subject line.
[Release No. 34–57556; File No. SR–CBOE–
2008–03]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Approving
Proposed Rule Change Relating to
Complex Orders
March 26, 2008.
Paper Comments
rmajette on PROD1PC64 with NOTICES
I. Introduction
On January 14, 2008, the Chicago
• Send paper comments in triplicate
Board Options Exchange, Incorporated
to Nancy M. Morris, Secretary,
(‘‘CBOE’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission,
Securities and Exchange Commission
100 F Street, NE., Washington, DC
(‘‘Commission’’), pursuant to Section
20549–1090.
19(b)(1) of the Securities Exchange Act
All submissions should refer to File
of 1934 (‘‘Act’’) 1 and Rule 19b–4
Number SR–CBOE–2008–32. This file
thereunder,2 a proposed rule change
number should be included on the
regarding complex orders. The proposed
subject line if e-mail is used. To help the rule change was published for comment
Commission process and review your
in the Federal Register on February 21,
comments more efficiently, please use
2008.3 The Commission received no
only one method. The Commission will comments regarding the proposal.
post all comments on the Commission’s
II. Description of the Proposal
Internet Web site (https://www.sec.gov/
The Exchange is proposing to amend
rules/sro.shtml). Copies of the
its priority provisions contained in
submission, all subsequent
CBOE Rules 6.45, 6.45A and 6.45B to
amendments, all written statements
provide that a complex order may be
with respect to the proposed rule
executed at a net debit or credit price
change that are filed with the
with another member without giving
Commission, and all written
priority to equivalent bids (offers) in the
communications relating to the
individual series legs that are
proposed rule change between the
Commission and any person, other than represented in the public customer limit
order book, provided that one leg of the
those that may be withheld from the
complex order betters the corresponding
public in accordance with the
bid (offer) in the public customer limit
provisions of 5 U.S.C. 552, will be
order book by at least the amount
available for inspection and copying in
determined by the Exchange on a classthe Commission’s Public Reference
by-class basis. The amount shall be
Room, 100 F Street, NE., Washington,
either (i) one minimum trading
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. increment (i.e., $0.10, $0.05 or $0.01, as
applicable) or (ii) a $0.01 increment.
Copies of such filing also will be
Currently, the rules provide that one leg
available for inspection and copying at
the principal office of the Exchange. All of a complex order must better the
corresponding bid (offer) in the public
comments received will be posted
customer limit order book by at least
without change; the Commission does
one minimum trading increment.4
not edit personal identifying
information from submissions. You
III. Discussion
should submit only information that
The Commission finds that the
you wish to make available publicly. All proposed rule change is consistent with
submissions should refer to File
Number SR–CBOE–2008–32 and should
1 15 U.S.C. 78s(b)(1).
be submitted on or before April 23,
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 57326
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–6733 Filed 4–1–08; 8:45 am]
BILLING CODE 8011–01–P
14 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
15:36 Apr 01, 2008
Jkt 214001
(February 13, 2008), 73 FR 9609.
4 Currently, for example, if a complex order
spread market is quoted on a net debit/credit basis
at $0.90 to $1.10 and there are orders represented
in the public customer limit order book in the
individual series at each of the respective prices,
the complex order may only be executed with
another member at a net price of $0.95 to $1.05.
Under the proposed revisions, a complex order may
be executed at a net price of $0.91 to $1.09,
permitting price improvement at net prices ranging
from $0.91–$0.94 and $1.06–$1.09.
PO 00000
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the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.5 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,6 which requires,
among other things, that the rules of a
national securities 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, in general, to protect investors and
the public interest.
The Commission believes that it is
beneficial for orders in the same
securities directed to an exchange to
interact with each other, as such
interaction promotes efficient exchange
trading and protects investors by
assuring that orders are executed
pursuant to a single set of priority rules
that are consistently and fairly applied.
The Commission notes that CBOE
maintains a complex order book
(‘‘COB’’) to facilitate more automated
handling of complex orders traded on
the Hybrid System by permitting market
participants to place complex orders at
net debit/credit prices on a central limit
order book.7 In addition, market
participants may choose to enter
complex orders into the complex order
auction (‘‘COA’’) for potential price
improvement via the automated request
for responses process.8 The Commission
believes that the proposed rule change
to modify the Exchange’s priority
provisions for complex orders is
appropriate in this circumstance in light
of the price competition for complex
orders driven by the COB and the
availability of the COA. The
Commission believes that the proposal
could enhance the orderly execution of
complex orders on the CBOE and could
provide new opportunities for price
improvement. The Commission believes
that these benefits outweigh the
minimal impact on the efficient
interaction of public customer orders in
5 In approving this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
6 15 U.S.C. 78f(b)(5).
7 See Securities Exchange Act Release No. 51271
(February 28, 2005), 70 FR 10712 (March 4, 2005).
8 See Securities Exchange Act Release No. 54135
(July 12, 2006), 71 FR 41287 (July 20, 2006). In
addition, the Commission notes that the legs of a
COA-eligible order may be executed in $0.01
increments, regardless of the minimum quoting
increments that otherwise would apply to the
individual legs of the order. See CBOE Rule
6.53C(d)(v). CBOE rules also allow complex orders
routed to or resting in the COB to be expressed and
executed in $0.01 increments, thereby providing
additional price points at which complex orders
could be executed. See CBOE Rule 6.53C(c)(ii).
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]]>Agencies
[Federal Register Volume 73, Number 64 (Wednesday, April 2, 2008)]
[Notices]
[Pages 18016-18018]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-6733]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57568; File No. SR-CBOE-2008-32]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Related to Off-Floor DPMs
March 26, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on March 24, 2008, the Chicago Board Options Exchange,
Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities
and Exchange Commission (the
[[Page 18017]]
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been substantially prepared by the Exchange.
The Exchange filed the proposal as a ``non-controversial'' proposed
rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and
Rule 19b-4(f)(6) thereunder.\4\ 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
The Exchange proposes to amend CBOE rules relating to DPMs. The
text of the proposed rule change is available at the Exchange, at the
Commission's Public Reference Room, and at 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, 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
Last year, CBOE amended its rules to provide DPMs with the
flexibility to operate remotely away from CBOE's trading floor as a so-
called ``Off-Floor DPM.'' \5\ At the time, CBOE stated that a DPM could
function as an Off-Floor DPM in equity option classes. CBOE now
proposes to amend its rules to provide DPMs with the same flexibility
to operate as an Off-Floor DPM in any option class traded on the Hybrid
Trading System and Hybrid 2.0 Platform. Specifically, CBOE proposes to
amend CBOE Rule 8.80 and CBOE Rule 8.83, which describe the option
classes in which an Off-Floor DPM can function.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 55531 (March 26,
2007), 72 FR 15736 (April 2, 2007) (SR-CBOE-2006-94) (the ``original
filing'').
\6\ CBOE also proposes to amend CBOE Rule 6.45B to clarify, as
it did CBOE Rule 6.45A in the original filing, that the DPM
participation entitlement for orders represented in open outcry is
only applicable to an On-Floor DPM. See CBOE Rules 8.83 and 8.87.
---------------------------------------------------------------------------
CBOE proposes to clarify that an Off-Floor DPM can function in
option classes traded on the Hybrid 2.0 Platform \7\ in addition to the
Hybrid Trading System.\8\ At the time CBOE's rule filing to allow Off-
Floor DPMs was approved, CBOE's trading platforms included the Hybrid
Trading System and the Hybrid 2.0 Platform, the latter of which was
encompassed in the definition of Hybrid Trading System under CBOE Rule
1.1(aaa). Later in 2007, however, CBOE established a new trading
platform--the Hybrid 3.0 Platform.\9\ Accordingly, CBOE wishes to
clarify that Off-Floor DPMs can function in the Hybrid Trading System
and the Hybrid 2.0 Platform, but not the Hybrid 3.0 Platform.
---------------------------------------------------------------------------
\7\ The Hybrid 2.0 Platform is an enhanced platform that allows
remote quoting by authorized categories of members.
\8\ See CBOE Rule 1.1(aaa).
\9\ See Securities Exchange Act Release No. 55874 (June 7,
2007), 72 FR 32688 (June 13, 2007) (SR-CBOE-2006-101).
---------------------------------------------------------------------------
By expanding the types of option classes in which an Off-Floor DPM
can function, CBOE believes that the rule change will provide
flexibility to member organizations that may wish to function remotely
in various types of option classes. It will further provide flexibility
to CBOE when allocating option classes, as CBOE could determine to
allocate non-equity option classes to a DPM or an Off-Floor DPM.
Expanding the category of option classes in which a DPM can function as
an Off-Floor DPM also removes a potential operational issue for a DPM
that has been allocated equity and non-equity option classes. Absent
this change to CBOE's rules, a DPM organization that is approved to
function as an Off-Floor DPM would need to maintain a presence on the
trading floor as a DPM for its non-equity option classes, while being
permitted to function as an Off-Floor DPM in its equity option classes.
Accordingly, CBOE believes that the proposed rule change is designed to
promote just and equitable principles of trade and also promotes
efficiency.
2. Statutory Basis
The Exchange 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.\10\ Specifically, the Exchange believes the
proposed rule change is consistent with the requirements of Section
6(b)(5) of the Act \11\ that the rules of an exchange be designed to
promote just and equitable principles of trade, to prevent fraudulent
and manipulative acts and, in general, to protect investors and the
public interest.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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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 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
Because the foregoing 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, provided that the self-regulatory organization
has given the Commission written notice of its intent to file 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, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A)(iii) of the Act \12\ and Rule 19b-
4(f)(6) thereunder.\13\ At any time within 60 days of the filing of
such 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.
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6). Rule 19b-4(f)(6) under the Act
requires a self-regulatory organization to give written notice of a
proposed rule change filed pursuant to this subsection at least five
business days prior to filing. CBOE complied with this requirement.
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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.
[[Page 18018]]
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-2008-32 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-2008-32. 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 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 Number SR-CBOE-2008-32 and should be
submitted on or before April 23, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary. 6
[FR Doc. E8-6733 Filed 4-1-08; 8:45 am]
BILLING CODE 8011-01-P
