Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Approving Proposed Rule Change and Amendments No. 1 and No. 2 Thereto Relating to Market-Makers and Remote Maker-Makers, 19537 [E8-7512]
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Federal Register / Vol. 73, No. 70 / Thursday, April 10, 2008 / Notices
and a national market system, and, in
general, to protect investors and the
public interest. The Commission
believes that the proposal should allow
for greater flexibility in pricing largesized orders and may provide a greater
opportunity for price improvement. The
Commission also notes that the proposal
is substantially similar to requirements
set forth in the rules of another
exchange.12
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,13 that the
proposed rule change (SR–CBOE–2008–
14), be, and hereby is approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–7505 Filed 4–9–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57615; File No. SR–CBOE–
2007–120]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Approving
Proposed Rule Change and
Amendments No. 1 and No. 2 Thereto
Relating to Market-Makers and Remote
Maker-Makers
April 3, 2008.
On October 11, 2007, the Chicago
Board Options Exchange, Incorporated
(‘‘CBOE’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change
relating to Market-Makers and Remote
Market-Makers (‘‘RMMs’’). On February
13, 2008, the Exchange submitted
Amendment No. 1 to the proposed rule
change.3 The proposed rule change was
published for comment in the Federal
Register on February 29, 2008.4 On
April 2, 2008, the Exchange submitted
Amendment No. 2 to the proposed rule
change.5 The Commission received no
12 See
paragraphs (d) and (e) of ISE Rule 716.
U.S.C. 78s(b)(2).
14 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Amendment 1 replaced the original filing in its
entirety.
4 See Securities Exchange Act Release No. 57367
(February 21, 2008), 73 FR 11168 (‘‘Notice’’).
5 In Amendment No. 2, CBOE made minor
revisions to the proposed rule text to reflect changes
mstockstill on PROD1PC66 with NOTICES
13 15
VerDate Aug<31>2005
16:48 Apr 09, 2008
Jkt 214001
comments regarding the proposal. This
order approves the proposed rule
change, as amended.
CBOE proposes to amend its rules
relating to Market-Makers and RMMs.
The Exchange notes that, since the time
the RMM rules were adopted, the ability
of Market-Makers to quote from a
location outside of the trading crowd or
trading floor has expanded. CBOE also
states that the existing obligations of
Market-Makers and RMMs are generally
the same. CBOE therefore does not see
a reason to maintain the RMM category
of market participant and proposes to
delete all references to RMMs in its
rules. In connection with this change,
CBOE’s proposal also: (i) Amends the
definition of Market-Maker to include
member organizations; (ii) amends
CBOE Rule 3.3 to clarify that the
member organization membership
statuses that are approved by the
Membership Committee include MarketMaker; and (iii) deletes Interpretation
and Policy .02 to CBOE Rule 3.8, and
amends CBOE Rule 3.8(a)(ii), to allow
any member organization that is the
owner or lessee of more than one
membership to designate one individual
to be the nominee for all memberships
utilized by the organization (except that,
for each membership utilized for trading
in open outcry on the trading floor, the
organization must designate a different
individual to be the nominee for each of
the memberships).
CBOE also proposes to reorganize the
text of two of the Exchange’s pilot
programs relating to the ability of eDPMs, Off-Floor DPMs, and RMMs to
have affiliated Market-Makers in the
same class and clarify that they would
no longer apply to RMMs.6 The
Exchange also is adding a new provision
to CBOE Rule 8.3 that provides that
there is no restriction on affiliated
Market-Makers holding an appointment
and submitting electronic quotations in
the same class, provided CBOE uses an
allocation algorithm in the class that
does not allocate electronic trades, in
whole or in part, in an equal percentage
based on the number of market
participants quoting at the best bid or
offer.7
made in a subsequent rule filing that extended two
of the Exchange’s pilot programs. See Securities
Exchange Act Release No. 57519 (March 18, 2008)
73 FR 15805 (March 25, 2008) (‘‘Pilot Extension’’).
These changes are technical and are not subject to
public comment.
6 In the Notice, the Exchange indicated that it
proposed extending these pilot programs for an
additional year. This extension was subsequently
made in a separate filing. See Pilot Extension in
note 5, supra.
7 CBOE’s proposal also: (i) Amends CBOE Rule
8.3 to provide that the appointment of a MarketMaker to a certain option class can be made by the
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Fmt 4703
Sfmt 4703
19537
The Commission finds that the
proposal, as amended, is consistent with
section 6(b)(5) of the Act,8 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 a national market system and, in
general, to protect investors and the
public interest.9 Specifically, the
Commission finds that it is consistent
with the Act for CBOE to clarify, update,
and consolidate the Exchange’s rules
related to Market-Makers and their
obligations on the Exchange.
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,10 that the
proposed rule change (SR–CBOE–2007–
120), as amended, is approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–7512 Filed 4–9–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57586; File No. SR–FICC–
2007–10]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Order
Approving Proposed Rule Change, as
Modified by Amendment No. 1, To
Replace the Mortgage-Backed
Securities Division Clearing Fund
Calculation Methodology With a YieldDriven Value-at-Risk Methodology
March 31, 2008.
I. Introduction
On August 31, 2007, the Fixed Income
Clearing Corporation (‘‘FICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) and on
September 27, 2007, amended proposed
rule change SR-FICC–2007–10 pursuant
Market-Maker’s selection or by CBOE, consistent
with certain criteria set forth in CBOE Rule 8.3; (ii)
amends CBOE Rule 8.3 to delete the requirement
that a Market-Maker may hold an appointment in
an appropriate number of Hybrid option classes that
are located at one trading station; (iii) amends
CBOE Rule 8.7 to delete references to RMMs and
other outdated references, and (iv) updates or
deletes outdated provisions in other CBOE Rules,
including CBOE Rule 8.3A relating to Class Quoting
Limits.
8 15 U.S.C. 78f(b)(5).
9 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).
10 15 U.S.C. 78s(b)(2).
11 17 CFR 200.30–3(a)(12).
E:\FR\FM\10APN1.SGM
10APN1
Agencies
[Federal Register Volume 73, Number 70 (Thursday, April 10, 2008)]
[Notices]
[Page 19537]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-7512]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57615; File No. SR-CBOE-2007-120]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Order Approving Proposed Rule Change and Amendments No. 1
and No. 2 Thereto Relating to Market-Makers and Remote Maker-Makers
April 3, 2008.
On October 11, 2007, the Chicago Board Options Exchange,
Incorporated (``CBOE'' or ``Exchange'') filed with the Securities and
Exchange Commission (``Commission''), pursuant to section 19(b)(1) of
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change relating to Market-Makers and
Remote Market-Makers (``RMMs''). On February 13, 2008, the Exchange
submitted Amendment No. 1 to the proposed rule change.\3\ The proposed
rule change was published for comment in the Federal Register on
February 29, 2008.\4\ On April 2, 2008, the Exchange submitted
Amendment No. 2 to the proposed rule change.\5\ The Commission received
no comments regarding the proposal. This order approves the proposed
rule change, as amended.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment 1 replaced the original filing in its entirety.
\4\ See Securities Exchange Act Release No. 57367 (February 21,
2008), 73 FR 11168 (``Notice'').
\5\ In Amendment No. 2, CBOE made minor revisions to the
proposed rule text to reflect changes made in a subsequent rule
filing that extended two of the Exchange's pilot programs. See
Securities Exchange Act Release No. 57519 (March 18, 2008) 73 FR
15805 (March 25, 2008) (``Pilot Extension''). These changes are
technical and are not subject to public comment.
---------------------------------------------------------------------------
CBOE proposes to amend its rules relating to Market-Makers and
RMMs. The Exchange notes that, since the time the RMM rules were
adopted, the ability of Market-Makers to quote from a location outside
of the trading crowd or trading floor has expanded. CBOE also states
that the existing obligations of Market-Makers and RMMs are generally
the same. CBOE therefore does not see a reason to maintain the RMM
category of market participant and proposes to delete all references to
RMMs in its rules. In connection with this change, CBOE's proposal
also: (i) Amends the definition of Market-Maker to include member
organizations; (ii) amends CBOE Rule 3.3 to clarify that the member
organization membership statuses that are approved by the Membership
Committee include Market-Maker; and (iii) deletes Interpretation and
Policy .02 to CBOE Rule 3.8, and amends CBOE Rule 3.8(a)(ii), to allow
any member organization that is the owner or lessee of more than one
membership to designate one individual to be the nominee for all
memberships utilized by the organization (except that, for each
membership utilized for trading in open outcry on the trading floor,
the organization must designate a different individual to be the
nominee for each of the memberships).
CBOE also proposes to reorganize the text of two of the Exchange's
pilot programs relating to the ability of e-DPMs, Off-Floor DPMs, and
RMMs to have affiliated Market-Makers in the same class and clarify
that they would no longer apply to RMMs.\6\ The Exchange also is adding
a new provision to CBOE Rule 8.3 that provides that there is no
restriction on affiliated Market-Makers holding an appointment and
submitting electronic quotations in the same class, provided CBOE uses
an allocation algorithm in the class that does not allocate electronic
trades, in whole or in part, in an equal percentage based on the number
of market participants quoting at the best bid or offer.\7\
---------------------------------------------------------------------------
\6\ In the Notice, the Exchange indicated that it proposed
extending these pilot programs for an additional year. This
extension was subsequently made in a separate filing. See Pilot
Extension in note 5, supra.
\7\ CBOE's proposal also: (i) Amends CBOE Rule 8.3 to provide
that the appointment of a Market-Maker to a certain option class can
be made by the Market-Maker's selection or by CBOE, consistent with
certain criteria set forth in CBOE Rule 8.3; (ii) amends CBOE Rule
8.3 to delete the requirement that a Market-Maker may hold an
appointment in an appropriate number of Hybrid option classes that
are located at one trading station; (iii) amends CBOE Rule 8.7 to
delete references to RMMs and other outdated references, and (iv)
updates or deletes outdated provisions in other CBOE Rules,
including CBOE Rule 8.3A relating to Class Quoting Limits.
---------------------------------------------------------------------------
The Commission finds that the proposal, as amended, is consistent
with section 6(b)(5) of the Act,\8\ 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 a national market
system and, in general, to protect investors and the public
interest.\9\ Specifically, the Commission finds that it is consistent
with the Act for CBOE to clarify, update, and consolidate the
Exchange's rules related to Market-Makers and their obligations on the
Exchange.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b)(5).
\9\ 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).
---------------------------------------------------------------------------
It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\10\ that the proposed rule change (SR-CBOE-2007-120), as amended,
is approved.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-7512 Filed 4-9-08; 8:45 am]
BILLING CODE 8011-01-P