Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Increase the Class Quoting Limit in One Option Class, 19122-19123 [E8-7272]

Download as PDF 19122 Federal Register / Vol. 73, No. 68 / Tuesday, April 8, 2008 / Notices 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–Amex–2008–27 on the subject line. Paper Comments pwalker on PROD1PC71 with NOTICES • 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–Amex–2008–27. 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–Amex–2008–27 and should be submitted on or before April 29, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–7311 Filed 4–7–08; 8:45 am] SECURITIES AND EXCHANGE COMMISSION the most significant parts of such statements. [Release No. 34–57602; File No. SR–CBOE– 2008–35] A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Increase the Class Quoting Limit in One Option Class April 2, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’ or ‘‘Exchange Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on March 28, 2008, the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’ or ‘‘SEC’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the CBOE. The Exchange has designated this proposal as one constituting a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule under Section 19(b)(3)(A)(i) of the Act,3 and Rule 19b–4(f)(1) thereunder,4 which renders 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 The Exchange proposes to increase the class quoting limit in one option class. The text of the proposed rule change is available on CBOE’s Web site (https://www.cboe.org/legal), at the CBOE’s Office of the Secretary, 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 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(i). 4 17 CFR 240.19b–4(f)(1). BILLING CODE 8011–01–P 2 17 17 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 16:09 Apr 07, 2008 Jkt 214001 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 1. Purpose CBOE Rule 8.3A, Maximum Number of Market Participants Quoting Electronically per Product, establishes class quoting limits (‘‘CQLs’’) for each class traded on the Hybrid Trading System or Hybrid 2.0 Platform.5 A CQL is the maximum number of quoters that may quote electronically in a given product and Rule 8.3A, Interpretation .01(a) provides that the current levels are generally established at 50. In addition, Rule 8.3A, Interpretation .01(b) provides a procedure by which the President of the Exchange may increase the CQL for an existing or new product. In this regard, the President of the Exchange may increase the CQL in exceptional circumstances, which are defined in the rule as ‘‘substantial trading volume, whether actual or expected.’’ 6 The effect of an increase in the CQL is procompetitive in that it increases the number of market participants that may quote electronically in a product. The purpose of this filing is to increase the CQL in the option class Visa, Inc. (V) from its current limit of 60 to 70.7 CBOE anticipates that there will be substantial trading volume in this class. In addition, increasing the CQL to 70 will accommodate Market-Makers that are currently on the wait-list to be appointed to the option class. Increasing the CQL in this option will enable the Exchange to enhance the liquidity offered, thereby offering deeper and more liquid markets. Lastly, CBOE represents that it has the systems capacity to support this increase in the CQL. 2. Statutory Basis Accordingly, CBOE believes the proposed rule change is consistent with the Act and the rules and regulations under the Act applicable to a national securities exchange and, in particular, the requirements of Section 6(b) of the Act.8 Specifically, the Exchange believes the proposed rule change is 5 See Rule 8.3A.01. actions taken by the President of the Exchange pursuant to this paragraph will be submitted to the SEC in a rule filing pursuant to Section 19(b)(3)(A) of the Exchange Act.’’ Rule 8.3A.01(b). 7 CBOE recently increased the CQL in V from 50 to 60. See Securities Exchange Act Release No. 57582 (March 31, 2008) (SR–CBOE–2008–34). 8 15 U.S.C. 78(f)(b). 6 ‘‘Any E:\FR\FM\08APN1.SGM 08APN1 Federal Register / Vol. 73, No. 68 / Tuesday, April 8, 2008 / Notices pwalker on PROD1PC71 with NOTICES consistent with the Section 6(b)(5) 9 requirements 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. As indicated above, the Exchange believes that increasing the CQL in these options will enable the Exchange to enhance the liquidity offered, thereby offering deeper and more liquid markets. Number SR–CBOE–2008–35 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. 19123 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57601; File No. SR–NYSE– 2008–22] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend All submissions should refer to File the Moratorium on the Qualification and Registration of New Registered Number SR–CBOE–2008–35. This file Competitive Market Makers and New number should be included on the B. Self-Regulatory Organization’s subject line if e-mail is used. To help the Competitive Traders, Governed by Statement on Burden on Competition NYSE Rules 107A and 110, Commission process and review your CBOE does not believe that the Respectively, for an Additional Three comments more efficiently, please use proposed rule change will impose any only one method. The Commission will Months burden on competition that is not post all comments on the Commission’s April 2, 2008. necessary or appropriate in furtherance Internet Web site (https://www.sec.gov/ of the purposes of the Act. Pursuant to Section 19(b)(1) of the rules/sro.shtml). Copies of the Securities Exchange Act of 1934 C. Self-Regulatory Organization’s submission, all subsequent (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Statement on Comments on the amendments, all written statements notice is hereby given that on March 26, Proposed Rule Change Received From with respect to the proposed rule 2008, the New York Stock Exchange Members, Participants, or Others change that are filed with the LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with The Exchange neither received nor Commission, and all written the Securities and Exchange solicited written comments on the communications relating to the Commission (‘‘Commission’’) the proposal. proposed rule change between the proposed rule change as described in Commission and any person, other than Items I and II below, which Items have III. Date of Effectiveness of the those that may be withheld from the Proposed Rule Change and Timing for been substantially prepared by the public in accordance with the Commission Action Exchange. The Commission is provisions of 5 U.S.C. 552, will be publishing this notice to solicit The foregoing proposed rule change available for inspection and copying in comments on the proposed rule change will take effect upon filing with the the Commission’s Public Reference from interested persons. Commission pursuant to Section 19(b)(3)(A)(i) of the Act 10 and Rule 19b– Room, on official business days between I. Self-Regulatory Organization’s the hours of 10 a.m. and 3 p.m. Copies 4(f)(1) thereunder,11 because it Statement of the Terms of Substance of of such filing also will be available for constitutes a stated policy, practice, or the Proposed Rule Change inspection and copying at the principal interpretation with respect to the The Exchange proposes to extend for meaning, administration, or office of the CBOE. All comments enforcement of an existing rule. received will be posted without change; three months the moratorium related to At any time within 60 days of the the qualification and registration of the Commission does not edit personal filing of the proposed rule change, the Registered Competitive Market Makers identifying information from Commission may summarily abrogate (‘‘RCMMs’’), pursuant to Exchange Rule submissions. You should submit only such rule change if it appears to the 107A, and Competitive Traders (‘‘CTs’’), information that you wish to make Commission that such action is pursuant to Exchange Rule 110 available publicly. All submissions necessary or appropriate in the public (‘‘Moratorium’’). The text of the should refer to File Number SR–CBOE– interest, for the protection of investors, 2008–35 and should be submitted on or proposed rule change is available at or otherwise in furtherance of the https://www.nyse.com, the NYSE, and before April 29, 2008. purposes of the Act. the Commission’s Public Reference For the Commission, by the Division of Room. IV. Solicitation of Comments Trading and Markets, pursuant to delegated II. Self-Regulatory Organization’s Interested persons are invited to authority.12 Statement of the Purpose of, and submit written data, views, and Florence E. Harmon, Statutory Basis for, the Proposed Rule arguments concerning the foregoing, Deputy Secretary. Change including whether the proposed rule [FR Doc. E8–7272 Filed 4–7–08; 8:45 am] change is consistent with the Act. In its filing with the Commission, the BILLING CODE 8011–01–P Comments may be submitted by any of Exchange included statements the following methods: concerning the purpose of, and basis for, the proposed rule change. The text of Electronic Comments these statements may be examined at • Use the Commission’s Internet the places specified in Item IV below. comment form (https://www.sec.gov/ The Exchange has prepared summaries, rules/sro.shtml); or set forth in Sections A, B, and C below, • Send an e-mail to ruleof the most significant aspects of such comments@sec.gov. Please include File statements. 9 15 U.S.C. 78(f)(b)(5). U.S.C. 78s(b)(3)(A)(i). 11 17 CFR 240.19b–4(f)(1). 10 15 VerDate Aug<31>2005 16:09 Apr 07, 2008 1 15 12 17 Jkt 214001 PO 00000 CFR 200.30–3(a)(12). Frm 00077 Fmt 4703 Sfmt 4703 2 17 E:\FR\FM\08APN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 08APN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 73, Number 68 (Tuesday, April 8, 2008)]
[Notices]
[Pages 19122-19123]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-7272]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57602; File No. SR-CBOE-2008-35]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Increase the Class Quoting Limit in One Option Class

April 2, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'' or ``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ notice 
is hereby given that on March 28, 2008, the Chicago Board Options 
Exchange, Incorporated (``CBOE'' or ``Exchange'') filed with the 
Securities and Exchange Commission (``Commission'' or ``SEC'') the 
proposed rule change as described in Items I, II, and III below, which 
Items have been prepared by the CBOE. The Exchange has designated this 
proposal as one constituting a stated policy, practice, or 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule under Section 19(b)(3)(A)(i) of the 
Act,\3\ and Rule 19b-4(f)(1) thereunder,\4\ which renders 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(i).
    \4\ 17 CFR 240.19b-4(f)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to increase the class quoting limit in one 
option class. The text of the proposed rule change is available on 
CBOE's Web site (https://www.cboe.org/legal), at the CBOE's Office of 
the Secretary, 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 parts of such 
statements.

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

1. Purpose
    CBOE Rule 8.3A, Maximum Number of Market Participants Quoting 
Electronically per Product, establishes class quoting limits (``CQLs'') 
for each class traded on the Hybrid Trading System or Hybrid 2.0 
Platform.\5\ A CQL is the maximum number of quoters that may quote 
electronically in a given product and Rule 8.3A, Interpretation .01(a) 
provides that the current levels are generally established at 50.
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    \5\ See Rule 8.3A.01.
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    In addition, Rule 8.3A, Interpretation .01(b) provides a procedure 
by which the President of the Exchange may increase the CQL for an 
existing or new product. In this regard, the President of the Exchange 
may increase the CQL in exceptional circumstances, which are defined in 
the rule as ``substantial trading volume, whether actual or expected.'' 
\6\ The effect of an increase in the CQL is procompetitive in that it 
increases the number of market participants that may quote 
electronically in a product. The purpose of this filing is to increase 
the CQL in the option class Visa, Inc. (V) from its current limit of 60 
to 70.\7\
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    \6\ ``Any actions taken by the President of the Exchange 
pursuant to this paragraph will be submitted to the SEC in a rule 
filing pursuant to Section 19(b)(3)(A) of the Exchange Act.'' Rule 
8.3A.01(b).
    \7\ CBOE recently increased the CQL in V from 50 to 60. See 
Securities Exchange Act Release No. 57582 (March 31, 2008) (SR-CBOE-
2008-34).
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    CBOE anticipates that there will be substantial trading volume in 
this class. In addition, increasing the CQL to 70 will accommodate 
Market-Makers that are currently on the wait-list to be appointed to 
the option class. Increasing the CQL in this option will enable the 
Exchange to enhance the liquidity offered, thereby offering deeper and 
more liquid markets. Lastly, CBOE represents that it has the systems 
capacity to support this increase in the CQL.
2. Statutory Basis
    Accordingly, CBOE believes the proposed rule change is consistent 
with the Act and the rules and regulations under the Act applicable to 
a national securities exchange and, in particular, the requirements of 
Section 6(b) of the Act.\8\ Specifically, the Exchange believes the 
proposed rule change is

[[Page 19123]]

consistent with the Section 6(b)(5) \9\ requirements 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. As indicated above, the 
Exchange believes that increasing the CQL in these options will enable 
the Exchange to enhance the liquidity offered, thereby offering deeper 
and more liquid markets.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78(f)(b).
    \9\ 15 U.S.C. 78(f)(b)(5).
---------------------------------------------------------------------------

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.

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

    The Exchange neither received nor solicited written comments on the 
proposal.

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

    The foregoing proposed rule change will take effect upon filing 
with the Commission pursuant to Section 19(b)(3)(A)(i) of the Act \10\ 
and Rule 19b-4(f)(1) thereunder,\11\ because it constitutes a stated 
policy, practice, or interpretation with respect to the meaning, 
administration, or enforcement of an existing rule.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(i).
    \11\ 17 CFR 240.19b-4(f)(1).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-CBOE-2008-35 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-2008-35. 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, 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 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-2008-35 and should be submitted on or before April 29, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-7272 Filed 4-7-08; 8:45 am]
BILLING CODE 8011-01-P

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