Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Position and Exercise Limits on the Boston Options Exchange Facility, 18831-18833 [E8-7189]

Download as PDF Federal Register / Vol. 73, No. 67 / Monday, April 7, 2008 / Notices III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has designated the proposed rule change as one that: (1) Does not significantly affect the protection of investors or the public interest; (2) does not impose any significant burden on competition; and (3) does not become operative for 30 days from the date of filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest. Therefore, the foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 10 and subparagraph (f)(6) of Rule 19b–4 thereunder.11 The Exchange has asked the Commission to waive the 30-day operative delay to permit the Exchange to immediately compete with the other options exchanges that have similarly amended their quarterly options series pilot programs. The Commission notes that this proposal is substantially similar to a proposed rule change submitted by the Chicago Board Options Exchange, which was approved by the Commission following publication for notice and comment, and does not raise any new regulatory issues.12 Waiving the 30-day operative delay will promote, without undue delay, further competition in the options market.13 For these reasons, the Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest and designates the proposal operative upon filing. The Commission notes that this rule change will become part of the pilot program and, going forward, its effects will be considered by the Commission in the event that the Exchange seeks to renew or make permanent the pilot program.14 Thus, in the Exchange’s 10 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires a self-regulatory organization to provide the Commission with written 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. The Exchange has fulfilled this requirement. 12 See Securities Exchange Act Release No. 57410, supra note 6. See also Securities Exchange Act Release No. 57425, supra note 6. 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. See 15 U.S.C. 78c(f). 14 As set forth in the Pilot Program Release, if the Exchange were to propose an extension, expansion, or permanent approval of the Pilot Program, the Exchange must submit, along with any filing proposing such amendments to the program, a report that provides an analysis of the Pilot Program rfrederick on PROD1PC67 with NOTICES 11 17 VerDate Aug<31>2005 15:24 Apr 04, 2008 Jkt 214001 future reports on the Pilot Program, the Exchange should include analysis of (1) the impact of the additional series on the Exchange’s market and quote capacity, and (2) the implementation and effects of the delisting policy, including the number of series eligible for delisting during the period covered by the report, the number of series actually delisted during that period (pursuant to the delisting policy or otherwise), and documentation of any customer requests to maintain QOS strikes that were otherwise eligible for delisting. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate the 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–2008–17 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–BSE–2008–17. This file number should be included on the covering the entire period during which the Pilot Program was in effect. See Pilot Program Release, supra note 5. The Pilot Program Release requires the Exchange to include in its report, at a minimum: (1) data and written analysis on the open interest and trading volume in the classes for which QOS were opened; (2) an assessment of the appropriateness of the option classes selected for the Pilot Program; (3) an assessment of the impact of the Pilot Program on the capacity of the Exchange, OPRA, and market data vendors (to the extent data from market data vendors is available); (4) any capacity problems or other problems that arose during the operation of the Pilot Program and how the Exchange addressed such problems; (5) any complaints that the Exchange received during the operation of the Pilot Program and how the Exchange addressed them; and (6) any additional information that would assist in assessing the operation of the Pilot Program. PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 18831 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–BSE–2008–17 and should be submitted on or before April 28, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–7116 Filed 4–4–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57598; File No. SR–BSE– 2008–19] Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Position and Exercise Limits on the Boston Options Exchange Facility April 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 March 18, 2008, the Boston Stock Exchange, Inc. (‘‘Exchange’’ or ‘‘BSE’’) filed with the Securities and Exchange Commission 15 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\07APN1.SGM 07APN1 18832 Federal Register / Vol. 73, No. 67 / Monday, April 7, 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 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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the rules of the Boston Options Exchange (‘‘BOX’’) to increase the position and exercise limits applicable to options on the DIAMONDS Trust, Series 1 (‘‘DIA’’). The text of the rule proposal is available on the Exchange’s Web site (https:// www.bostonstock.com), at the offices of the Exchange, 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 rfrederick on PROD1PC67 with NOTICES 1. Purpose The Exchange is proposing to amend the BOX rules pertaining to position and exercise limits for options on DIA. The Exchange proposes to increase position and exercise limits for options on DIA to 300,000 contracts on the same side of the market. The Commission previously approved a similar proposal of the Chicago Board Options Exchange (‘‘CBOE’’).5 3 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 5 See Securities Exchange Act Release No. 47346 (February 11, 2003) 68 FR 8316 (February 20, 2003) (SR–CBOE–2002–26) (approving an increase in the position limits and exercise limits to 300,000 for DIA options). The Commission stated that ‘‘given the surveillance capabilities of the [CBOE] and the 4 17 VerDate Aug<31>2005 15:24 Apr 04, 2008 Jkt 214001 The Exchange also recently made permanent its increased position and exercise limits for certain equity options on BOX, which were in effect on a pilot basis.6 The Exchange stipulated, as part of its proposal for such permanent approval, that ‘‘its surveillance procedures and reporting procedures, in conjunction with the financial requirements and risk management review procedures already in place at the clearing firms and the Options Clearing Corporation, [would] serve to adequately address any concerns the Commission may have with respect to account(s) engaging in any manipulative schemes or assuming too high a level of risk exposure.’’ 7 These representations also apply to the current proposal to increase the position and exercise limits for options on DIA. The Exchange now seeks to increase the position and exercise limits for options on DIA on BOX to the level that such limits are in effect on CBOE (300,000 contracts on the same side of the market). The Exchange asserts that the justifications behind the Commission’s approval of CBOE’s proposal should support the same increased position and exercise limits on options on DIA on BOX. Specifically, the Exchange believes that the ‘‘structure of the DIA options and the considerable liquidity of both the underlying cash and options market for DIA options lessen the opportunity for manipulation of this product and disruption in the underlying market that a lower position limit may protect against.’’ 8 The Exchange believes that the reporting requirements imposed under the BOX rules will help protect against potential manipulation.9 Additionally, the Exchange believes that such an increase in position and exercise limits on options on DIA on BOX is also required for competitive purposes as well as for purposes of consistency and uniformity among the competing options exchanges. This, taken in conjunction depth and liquidity in both the DIA options and the underlying cash market in DIAs, the Commission believes it is permissible to significantly raise position and exercise limits for DIA options without risk of disruption to the options or underlying cash markets.’’ The Commission also stated that ‘‘financial and reporting requirements * * * should allow [CBOE] to detect and deter trading abuses arising from the increased position and exercise limits, and will also allow [CBOE] to monitor large positions in order to identify instances of potential risk and to assess additional margin and/or capital charges, if deemed necessary.’’ 6 See Securities Exchange Act Release No. 57414 (March 3, 2008) 73 FR 12481 (March 7, 2008) (SR– BSE–2008–12). 7 Id. 8 See Securities Exchange Act Release No. 47346, supra note 5. 9 See BOX Rules, Ch. III, Sec. 10. PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 with the permanent establishment of other increased position and exercise limits for certain equity options on BOX,10 supports the Exchange’s proposal related to such increased position and exercise limits applicable to DIA. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of section 6(b) of the Act 11 in general, and section 6(b)(5) of the Act 12 in particular, in that it is designed to promote just and equitable principles of trade, to prevent fraudulent and manipulative acts, 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. Specifically, the Exchange believes that the structure of the DIA options and the considerable liquidity of the market for DIA options diminishes the opportunity for manipulation of this product and disruption in the underlying market that a lower position limit may protect against. 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 The Exchange has neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has designated the proposed rule change as one that: (1) Does not significantly affect the protection of investors or the public interest; (2) does not impose any significant burden on competition; and (3) does not become operative for 30 days from the date of filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest. Therefore, the foregoing rule change has become effective pursuant to section 19(b)(3)(A) of the Act 13 and 10 See, e.g., Securities Exchange Act Release No. 57414, supra note 6. 11 15 U.S.C. 78f(b). 12 15 U.S.C. 78f(b)(5). 13 15 U.S.C. 78s(b)(3)(A). E:\FR\FM\07APN1.SGM 07APN1 Federal Register / Vol. 73, No. 67 / Monday, April 7, 2008 / Notices subparagraph (f)(6) of Rule 19b–4 thereunder.14 The Exchange notes that the proposed rule change is based on a similar proposal previously approved by the Commission,15 and does not raise any novel issues. Additionally, the Exchange asserts that the proposed rule change is necessary to eliminate any confusion among members of multiple exchanges regarding position and exercise limits applicable to options on DIA and for purposes of maintaining a fair and orderly market. The Exchange has asked the Commission to waive the operative delay to permit the proposed rule change to become operative prior to the 30th day after filing. The Exchange states that waiving the operative delay will allow the proposed increase in the position and exercise limits applicable to options on DIA on BOX to be put into effect immediately, which will align BOX’s DIA limits with the DIA limits applicable to members of other options exchange(s), thereby promoting conformity and uniformity in the rules of the several options exchanges. The Commission believes that waiving the 30-day operative delay of the Exchange’s proposal is consistent with the protection of investors and the public interest.16 Therefore, the Commission designates the proposal to be operative upon filing. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate the 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 rfrederick on PROD1PC67 with NOTICES 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: 14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires a self-regulatory organization to provide the Commission with written 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. The Exchange has fulfilled this requirement. 15 See Securities Exchange Act Release No. 47346, supra note 5. 16 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. See 15 U.S.C. 78c(f). VerDate Aug<31>2005 15:24 Apr 04, 2008 Jkt 214001 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–2008–19 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. 18833 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57593; File No. SR–CBOE– 2008–38] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Fees for the CBOE Stock Exchange April 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 March 31, All submissions should refer to File 2008, the Chicago Board Options Number SR–BSE–2008–19. This file Exchange, Incorporated (‘‘Exchange’’ or number should be included on the ‘‘CBOE’’) filed with the Securities and subject line if e-mail is used. To help the Exchange Commission (‘‘Commission’’) Commission process and review your the proposed rule change as described comments more efficiently, please use in Items I, II, and III below, which Items only one method. The Commission will have been substantially prepared by the post all comments on the Commission’s Exchange. The Exchange has designated Internet Web site (https://www.sec.gov/ this proposal as one establishing a due, rules/sro.shtml ). Copies of the fee, or other charge imposed by the Exchange under Section 19(b)(3)(A) of submission, all subsequent the Act 3 and Rule 19b–4(f)(2) amendments, all written statements thereunder,4 which renders it effective with respect to the proposed rule upon filing with the Commission. The change that are filed with the Commission is publishing this notice to Commission, and all written solicit comments on the proposed rule communications relating to the change from interested persons. proposed rule change between the Commission and any person, other than I. Self-Regulatory Organization’s those that may be withheld from the Statement of the Terms of Substance of public in accordance with the the Proposed Rule Change provisions of 5 U.S.C. 552, will be The Exchange proposes to modify its available for inspection and copying in fees applicable to the CBOE Stock the Commission’s Public Reference Exchange (‘‘CBSX’’). The text of the Room, 100 F Street, NE., Washington, proposed rule change is available on the DC 20549, on official business days Exchange’s Web site (https:// between the hours of 10 a.m. and 3 p.m. www.cboe.org/legal), at the Exchange’s Copies of such filing also will be principal office, and at the available for inspection and copying at Commission’s Public Reference Room. the principal office of the Exchange. All II. Self-Regulatory Organization’s comments received will be posted Statement of the Purpose of, and without change; the Commission does Statutory Basis for, the Proposed Rule not edit personal identifying Change information from submissions. You In its filing with the Commission, the should submit only information that you wish to make available publicly. All Exchange included statements concerning the purpose of and basis for submissions should refer to File the proposed rule change and discussed Number SR–BSE–2008–19 and should any comments it received on the be submitted on or before April 28, proposed rule change. The text of these 2008. statements may be examined at the For the Commission, by the Division of places specified in Item IV below. The Trading and Markets, pursuant to delegated Exchange has prepared summaries, set authority.17 forth in Sections A, B, and C below, of Florence E. Harmon, the most significant aspects of such statements. Deputy Secretary. [FR Doc. E8–7189 Filed 4–4–08; 8:45 am] 1 15 BILLING CODE 8011–01–P U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(2). 2 17 17 17 PO 00000 CFR 200.30–3(a)(12). Frm 00102 Fmt 4703 Sfmt 4703 E:\FR\FM\07APN1.SGM 07APN1

Agencies

[Federal Register Volume 73, Number 67 (Monday, April 7, 2008)]
[Notices]
[Pages 18831-18833]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-7189]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57598; File No. SR-BSE-2008-19]


Self-Regulatory Organizations; Boston Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Position and Exercise Limits on the Boston Options Exchange 
Facility

April 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 March 18, 2008, the Boston Stock Exchange, Inc. (``Exchange'' or 
``BSE'') filed with the Securities and Exchange Commission

[[Page 18832]]

(``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

    The Exchange proposes to amend the rules of the Boston Options 
Exchange (``BOX'') to increase the position and exercise limits 
applicable to options on the DIAMONDS Trust, Series 1 (``DIA''). The 
text of the rule proposal is available on the Exchange's Web site 
(https://www.bostonstock.com), at the offices of the Exchange, 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
    The Exchange is proposing to amend the BOX rules pertaining to 
position and exercise limits for options on DIA. The Exchange proposes 
to increase position and exercise limits for options on DIA to 300,000 
contracts on the same side of the market. The Commission previously 
approved a similar proposal of the Chicago Board Options Exchange 
(``CBOE'').\5\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 47346 (February 11, 
2003) 68 FR 8316 (February 20, 2003) (SR-CBOE-2002-26) (approving an 
increase in the position limits and exercise limits to 300,000 for 
DIA options). The Commission stated that ``given the surveillance 
capabilities of the [CBOE] and the depth and liquidity in both the 
DIA options and the underlying cash market in DIAs, the Commission 
believes it is permissible to significantly raise position and 
exercise limits for DIA options without risk of disruption to the 
options or underlying cash markets.'' The Commission also stated 
that ``financial and reporting requirements * * * should allow 
[CBOE] to detect and deter trading abuses arising from the increased 
position and exercise limits, and will also allow [CBOE] to monitor 
large positions in order to identify instances of potential risk and 
to assess additional margin and/or capital charges, if deemed 
necessary.''
---------------------------------------------------------------------------

    The Exchange also recently made permanent its increased position 
and exercise limits for certain equity options on BOX, which were in 
effect on a pilot basis.\6\ The Exchange stipulated, as part of its 
proposal for such permanent approval, that ``its surveillance 
procedures and reporting procedures, in conjunction with the financial 
requirements and risk management review procedures already in place at 
the clearing firms and the Options Clearing Corporation, [would] serve 
to adequately address any concerns the Commission may have with respect 
to account(s) engaging in any manipulative schemes or assuming too high 
a level of risk exposure.'' \7\ These representations also apply to the 
current proposal to increase the position and exercise limits for 
options on DIA. The Exchange now seeks to increase the position and 
exercise limits for options on DIA on BOX to the level that such limits 
are in effect on CBOE (300,000 contracts on the same side of the 
market).
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 57414 (March 3, 
2008) 73 FR 12481 (March 7, 2008) (SR-BSE-2008-12).
    \7\ Id.
---------------------------------------------------------------------------

    The Exchange asserts that the justifications behind the 
Commission's approval of CBOE's proposal should support the same 
increased position and exercise limits on options on DIA on BOX. 
Specifically, the Exchange believes that the ``structure of the DIA 
options and the considerable liquidity of both the underlying cash and 
options market for DIA options lessen the opportunity for manipulation 
of this product and disruption in the underlying market that a lower 
position limit may protect against.'' \8\ The Exchange believes that 
the reporting requirements imposed under the BOX rules will help 
protect against potential manipulation.\9\ Additionally, the Exchange 
believes that such an increase in position and exercise limits on 
options on DIA on BOX is also required for competitive purposes as well 
as for purposes of consistency and uniformity among the competing 
options exchanges. This, taken in conjunction with the permanent 
establishment of other increased position and exercise limits for 
certain equity options on BOX,\10\ supports the Exchange's proposal 
related to such increased position and exercise limits applicable to 
DIA.
---------------------------------------------------------------------------

    \8\ See Securities Exchange Act Release No. 47346, supra note 5.
    \9\ See BOX Rules, Ch. III, Sec. 10.
    \10\ See, e.g., Securities Exchange Act Release No. 57414, supra 
note 6.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of section 6(b) of the Act \11\ in general, and section 
6(b)(5) of the Act \12\ in particular, in that it is designed to 
promote just and equitable principles of trade, to prevent fraudulent 
and manipulative acts, 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. Specifically, 
the Exchange believes that the structure of the DIA options and the 
considerable liquidity of the market for DIA options diminishes the 
opportunity for manipulation of this product and disruption in the 
underlying market that a lower position limit may protect against.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 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

    The Exchange has neither solicited nor received comments on the 
proposed rule change.

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

    The Exchange has designated the proposed rule change as one that: 
(1) Does not significantly affect the protection of investors or the 
public interest; (2) does not impose any significant burden on 
competition; and (3) does not become operative for 30 days from the 
date of filing, or such shorter time as the Commission may designate if 
consistent with the protection of investors and the public interest. 
Therefore, the foregoing rule change has become effective pursuant to 
section 19(b)(3)(A) of the Act \13\ and

[[Page 18833]]

subparagraph (f)(6) of Rule 19b-4 thereunder.\14\ The Exchange notes 
that the proposed rule change is based on a similar proposal previously 
approved by the Commission,\15\ and does not raise any novel issues. 
Additionally, the Exchange asserts that the proposed rule change is 
necessary to eliminate any confusion among members of multiple 
exchanges regarding position and exercise limits applicable to options 
on DIA and for purposes of maintaining a fair and orderly market.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to provide the Commission 
with written 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. The Exchange has fulfilled this requirement.
    \15\ See Securities Exchange Act Release No. 47346, supra note 
5.
---------------------------------------------------------------------------

    The Exchange has asked the Commission to waive the operative delay 
to permit the proposed rule change to become operative prior to the 
30th day after filing. The Exchange states that waiving the operative 
delay will allow the proposed increase in the position and exercise 
limits applicable to options on DIA on BOX to be put into effect 
immediately, which will align BOX's DIA limits with the DIA limits 
applicable to members of other options exchange(s), thereby promoting 
conformity and uniformity in the rules of the several options 
exchanges.
    The Commission believes that waiving the 30-day operative delay of 
the Exchange's proposal is consistent with the protection of investors 
and the public interest.\16\ Therefore, the Commission designates the 
proposal to be operative upon filing.
---------------------------------------------------------------------------

    \16\ 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. See 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 the 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-BSE-2008-19 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-BSE-2008-19. 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-BSE-2008-19 and should be submitted on 
or before April 28, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

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

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-7189 Filed 4-4-08; 8:45 am]
BILLING CODE 8011-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.