Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change Related to Sponsored Users, 30430-30431 [E8-11702]
Download as PDF
<![CDATA[
30430
Federal Register / Vol. 73, No. 102 / Tuesday, May 27, 2008 / Notices
[FR Doc. E8–11724 Filed 5–23–08; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57836; File No. SR–CBOE–
2008–54]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of a
Proposed Rule Change Related to
Sponsored Users
May 19, 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 May 12,
2008, Chicago Board Options Exchange,
Incorporated (‘‘CBOE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
substantially by CBOE. 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 Rule 6.20A, Sponsored Users, to
permit Sponsored User access to all
products traded on CBOE. The text of
the proposed rule change is available at
https://www.cboe.org/Legal, the principal
offices of the Exchange, and the
Commission’s Public Reference Room.
pwalker on PROD1PC71 with NOTICES
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
CBOE included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. CBOE has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Aug<31>2005
17:22 May 23, 2008
Jkt 214001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
CBOE is proposing to amend CBOE
Rule 6.20A, Sponsored Users, which
governs electronic access for the entry
and execution of orders by Sponsored
Users with authorized access and the
applicable requirements that Sponsored
Users and Sponsoring Members are
required to satisfy in order to engage in
a Sponsoring Member/Sponsored User
relationship. Under the current Rule,
the Sponsored User program is only
applicable to CBOE’s FLEX Hybrid
Trading System (‘‘FLEX’’) and the CBOE
Stock Exchange (‘‘CBSX’’) facility. Thus,
currently a ‘‘Sponsored User’’ is defined
as a person or entity that has entered
into a sponsorship arrangement with a
Sponsoring Member for purposes of
receiving electronic access to FLEX and
CBSX. CBOE is proposing to expand the
rule to permit electronic access for the
entry and execution of orders by
Sponsored Users with authorized access
to all other products traded on CBOE.
CBOE Rule 6.20A will apply to
Sponsored Users with authorized access
to all other products traded on CBOE in
the same manner as it is currently
applied to Sponsored Users with
authorized access to FLEX and CBSX.
Sponsored User access to CBOE will
also be conditioned on the same
requirements that are currently applied
to Sponsored Users on FLEX and CBSX.
Unlike the number of Sponsored Users
for FLEX and CBSX, which can be
unlimited, with respect to all other
products trading on CBOE, this filing
proposes that the number of Sponsored
Users with such electronic access to
CBOE be limited to a total of 15
persons/entities 3 (hereinafter referred to
as ‘‘Sponsored User Slots’’).
Sponsored User applications for the
CBOE Sponsored User Slots shall be
submitted to the Exchange’s
Membership Department and will be
processed in the order they are received
on a time-stamped basis. Sponsored
User applications may be submitted by
hand-delivery, e-mail, or facsimile. For
applications received via e-mail or
facsimile, the time-stamp will be the
3 For purposes of CBOE Rule 6.20A, a ‘‘Sponsored
User’’ would now be defined as a person or entity
that has entered into a sponsorship arrangement
with a Sponsoring Member for purposes of
receiving electronic access to the facilities and
products specified in the Rule (referred to as the
‘‘Exchange System(s’’)), which would now include
the products traded on the FLEX Hybrid Trading
System, CBOE and CBSX. See proposed changes to
Rule 6.20A(a) and proposed Interpretation and
Policy .01 to Rule 6.20A.
PO 00000
Frm 00056
Fmt 4703
Sfmt 4703
time the e-mail/facsimile is received by
the Membership Department. If there are
more applicants than Sponsored User
Slots, the Exchange will maintain a
waitlist and use a First In, First Out
(‘‘FIFO’’) method for filling the
Sponsored User Slots. In the event a
Sponsored User application is
determined by the Membership
Department to be incomplete,4 the
application will not be considered to
have been submitted under the FIFO
method until a completed application is
submitted. The Exchange will issue a
circular providing notice as to when the
Exchange will begin accepting
applications for the 15 Sponsored User
Slots and will detail how the
applications may be submitted to the
Exchange’s Membership Department.
Lastly, the Exchange notes that persons
(or entities) aggrieved in an economic
sense by Exchange actions, including
actions taken with respect to the
Sponsored User Slots, may apply for an
opportunity to be heard and have the
complained-of action reviewed in
accordance with Chapter XIX, Hearings
and Review.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act 5
in general and furthers the objectives of
Section 6(b)(5) 6 in particular in that the
proposal is designed to remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system, and, in
general, 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
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
4 For example, an application would be
considered incomplete if a Sponsoring Member has
not agreed to sponsor the Sponsored User
applicant’s electronic access to CBOE.
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
E:\FR\FM\27MYN1.SGM
27MYN1
Federal Register / Vol. 73, No. 102 / Tuesday, May 27, 2008 / Notices
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding, or
(ii) as to which CBOE consents, the
Commission will:
(A) By order approve such proposed
rule change; or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
should submit only information that
you wish to make publicly available. All
submissions should refer to File
Number SR–CBOE–2008–54 and should
be submitted on or before June 17, 2008.
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:
BILLING CODE 8010–01–P
pwalker on PROD1PC71 with 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
Number SR–CBOE–2008–54 on the
subject line.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–11702 Filed 5–23–08; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57837; File No. SR–CBOE–
2008–46]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Related To the Hybrid
Agency Liaison
May 20, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
Paper Comments
notice is hereby given that on May 15,
• Send paper comments in triplicate
2008, the Chicago Board Options
to Nancy M. Morris, Secretary,
Exchange, Incorporated (‘‘CBOE’’ or
Securities and Exchange Commission,
‘‘Exchange’’) filed with the Securities
Station Place, 100 F Street, NE.,
and Exchange Commission
Washington, DC 20549–1090.
(‘‘Commission’’) the proposed rule
All submissions should refer to File
change as described in Items I, II, and
Number SR–CBOE–2008–54. This file
III below, which Items have been
number should be included on the
subject line if e-mail is used. To help the substantially prepared by CBOE. The
Exchange filed the proposal as a ‘‘nonCommission process and review your
controversial’’ proposed rule change
comments more efficiently, please use
only one method. The Commission will pursuant to Section 19(b)(3)(A)(iii) of
3
post all comments on the Commission’s the Act and Rule 19b–4(f)(6)
thereunder,4 which renders the proposal
Internet Web site (https://www.sec.gov/
effective upon filing with the
rules/sro.shtml). Copies of the
Commission. The Commission is
submission, all subsequent
publishing this notice to solicit
amendments, all written statements
comments on the proposed rule change
with respect to the proposed rule
from interested persons.
change that are filed with the
Commission, and all written
I. Self-Regulatory Organization’s
communications relating to the
Statement of the Terms of Substance of
proposed rule change between the
the Proposed Rule Change
Commission and any person, other than
The Exchange proposes to modify
those that may be withheld from the
Rule 6.14, Hybrid Agency Liaison
public in accordance with the
(‘‘HAL’’), so that the Exchange may
provisions of 5 U.S.C. 552, will be
determine on a class-by-class basis to
available for inspection and copying in
permit electronic exposure of HAL
the Commission’s Public Reference
orders to all CBOE members to give
Room, 100 F Street, NE., Washington,
additional opportunities to provide the
DC 20549, on official business days
orders with the best price. The text of
between the hours of 10 a.m. and 3 p.m.
the proposed rule change is available on
Copies of such filing also will be
the Exchange’s Web site (https://
available for inspection and copying at
the principal office of CBOE. All
7 17 CFR 200.30–3(a)(12).
comments received will be posted
1 15 U.S.C. 78s(b)(1).
without change; the Commission does
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
not edit personal identifying
4 17 CFR 240.19b–4(f)(6).
information from submissions. You
VerDate Aug<31>2005
17:22 May 23, 2008
Jkt 214001
PO 00000
Frm 00057
Fmt 4703
Sfmt 4703
30431
www.cboe.org/Legal), at the Exchange’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,
CBOE included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of those
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
In classes where HAL is activated,
HAL automatically upon receipt
processes market and limit orders if: (i)
The market orders or limit orders are
marketable against the Exchange’s
disseminated quotation while that
quotation is not at the national best bid
or offer (‘‘NBBO’’); (ii) the limit orders
would improve the Exchange’s
disseminated quotation and are
marketable against quotations
disseminated by other exchanges
participating in the Intermarket Options
Linkage (‘‘Linkage’’); and (iii) for Hybrid
3.0 classes, the limit orders would
improve the Exchange’s disseminated
quotation, except when the
disseminated quotation is represented
by a manual quote, in which case the
limit order will automatically route to
the electronic book instead of being
processed by HAL, and the manual
quote will be cancelled.5
When these circumstances occur,
orders that are received by HAL are
immediately upon receipt electronically
exposed to all Market-Makers appointed
to the relevant option class, as well as
all members acting as agent for orders at
the top of the Exchange’s book
(‘‘Qualifying Members’’) in the relevant
series.6 At the conclusion of the HAL
process:
5 See
Rule 6.14(a).
orders are exposed for a period determined
by the Exchange on a class-by-class basis, which
period shall not exceed 1.5 seconds. If a MarketMaker or Qualifying Member (on behalf of the order
it is representing) commits to trade with any
portion of the order during the exposure period,
then the exposure period will end, and an
allocation period will begin. The allocation period
6 The
E:\FR\FM\27MYN1.SGM
Continued
27MYN1
]]>Agencies
[Federal Register Volume 73, Number 102 (Tuesday, May 27, 2008)]
[Notices]
[Pages 30430-30431]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-11702]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57836; File No. SR-CBOE-2008-54]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of a Proposed Rule Change Related to
Sponsored Users
May 19, 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 May 12, 2008, Chicago Board Options Exchange, Incorporated (``CBOE''
or the ``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared substantially by CBOE.
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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend CBOE Rule 6.20A, Sponsored Users, to
permit Sponsored User access to all products traded on CBOE. The text
of the proposed rule change is available at https://www.cboe.org/Legal,
the principal offices of the Exchange, and 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, CBOE included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. CBOE has prepared summaries, set forth in Sections A, B,
and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
CBOE is proposing to amend CBOE Rule 6.20A, Sponsored Users, which
governs electronic access for the entry and execution of orders by
Sponsored Users with authorized access and the applicable requirements
that Sponsored Users and Sponsoring Members are required to satisfy in
order to engage in a Sponsoring Member/Sponsored User relationship.
Under the current Rule, the Sponsored User program is only applicable
to CBOE's FLEX Hybrid Trading System (``FLEX'') and the CBOE Stock
Exchange (``CBSX'') facility. Thus, currently a ``Sponsored User'' is
defined as a person or entity that has entered into a sponsorship
arrangement with a Sponsoring Member for purposes of receiving
electronic access to FLEX and CBSX. CBOE is proposing to expand the
rule to permit electronic access for the entry and execution of orders
by Sponsored Users with authorized access to all other products traded
on CBOE.
CBOE Rule 6.20A will apply to Sponsored Users with authorized
access to all other products traded on CBOE in the same manner as it is
currently applied to Sponsored Users with authorized access to FLEX and
CBSX. Sponsored User access to CBOE will also be conditioned on the
same requirements that are currently applied to Sponsored Users on FLEX
and CBSX. Unlike the number of Sponsored Users for FLEX and CBSX, which
can be unlimited, with respect to all other products trading on CBOE,
this filing proposes that the number of Sponsored Users with such
electronic access to CBOE be limited to a total of 15 persons/entities
\3\ (hereinafter referred to as ``Sponsored User Slots'').
---------------------------------------------------------------------------
\3\ For purposes of CBOE Rule 6.20A, a ``Sponsored User'' would
now be defined as a person or entity that has entered into a
sponsorship arrangement with a Sponsoring Member for purposes of
receiving electronic access to the facilities and products specified
in the Rule (referred to as the ``Exchange System(s'')), which would
now include the products traded on the FLEX Hybrid Trading System,
CBOE and CBSX. See proposed changes to Rule 6.20A(a) and proposed
Interpretation and Policy .01 to Rule 6.20A.
---------------------------------------------------------------------------
Sponsored User applications for the CBOE Sponsored User Slots shall
be submitted to the Exchange's Membership Department and will be
processed in the order they are received on a time-stamped basis.
Sponsored User applications may be submitted by hand-delivery, e-mail,
or facsimile. For applications received via e-mail or facsimile, the
time-stamp will be the time the e-mail/facsimile is received by the
Membership Department. If there are more applicants than Sponsored User
Slots, the Exchange will maintain a waitlist and use a First In, First
Out (``FIFO'') method for filling the Sponsored User Slots. In the
event a Sponsored User application is determined by the Membership
Department to be incomplete,\4\ the application will not be considered
to have been submitted under the FIFO method until a completed
application is submitted. The Exchange will issue a circular providing
notice as to when the Exchange will begin accepting applications for
the 15 Sponsored User Slots and will detail how the applications may be
submitted to the Exchange's Membership Department. Lastly, the Exchange
notes that persons (or entities) aggrieved in an economic sense by
Exchange actions, including actions taken with respect to the Sponsored
User Slots, may apply for an opportunity to be heard and have the
complained-of action reviewed in accordance with Chapter XIX, Hearings
and Review.
---------------------------------------------------------------------------
\4\ For example, an application would be considered incomplete
if a Sponsoring Member has not agreed to sponsor the Sponsored User
applicant's electronic access to CBOE.
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
\5\ in general and furthers the objectives of Section 6(b)(5) \6\ in
particular in that the proposal is designed to remove impediments to
and perfect the mechanisms of a free and open market and a national
market system, and, in general, protect investors and the public
interest.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(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 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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i)
[[Page 30431]]
as the Commission may designate up to 90 days of such date if it finds
such longer period to be appropriate and publishes its reasons for so
finding, or (ii) as to which CBOE consents, the Commission will:
(A) By order approve such proposed rule change; or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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-2008-54 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-CBOE-2008-54. 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 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 publicly available. All
submissions should refer to File Number SR-CBOE-2008-54 and should be
submitted on or before June 17, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-11702 Filed 5-23-08; 8:45 am]
BILLING CODE 8010-01-P
