Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change To Amend the Exchange's Rules Pertaining to the Imposition of Fines for Minor Rule Violations, 32065-32066 [E8-12482]

Download as PDF Federal Register / Vol. 73, No. 109 / Thursday, June 5, 2008 / Notices 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 Number SR–BSE–2008–31 on the subject line. Paper Comments yshivers on PROD1PC62 with NOTICES • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57883; File No. SR–CBOE– 2008–53] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change To Amend the Exchange’s Rules Pertaining to the Imposition of Fines for Minor Rule Violations May 29, 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 19, All submissions should refer to File 2008, the Chicago Board Options Number SR-BSE–2008–31. This file Exchange, Incorporated (‘‘CBOE’’ or number should be included on the subject line if e-mail is used. To help the ‘‘Exchange’’) filed with the Securities and Exchange Commission Commission process and review your (‘‘Commission’’) the proposed rule comments more efficiently, please use only one method. The Commission will change as described in Items I, II, and post all comments on the Commission’s III below, which Items have been substantially prepared by the CBOE. Internet Web site (https://www.sec.gov/ The Commission is publishing this rules/sro/shtml). Copies of the notice to solicit comments on the submission, all subsequent proposed rule change from interested amendments, all written statements persons. with respect to the proposed rule change that are filed with the I. Self-Regulatory Organization’s Commission, and all written Statement of the Terms of Substance of communications relating to the the Proposed Rule Change proposed rule change between the Commission and any person, other than The Exchange proposes to amend those that may be withheld from the CBOE Rule 17.50, ‘‘Imposition of Fines public in accordance with the for Minor Rule Violations,’’ to revise the provisions of 5 U.S.C. 552, will be provisions of CBOE Rule 17.50(g)(1) available for inspection and copying in ‘‘Violations of Position Limits Rules.’’ the Commission’s Public Reference The text of the proposed rule change is Room, on official business days between available on the Exchange’s Web site the hours of 10 a.m. and 3 p.m. Copies (https://www.cboe.org/Legal), at the of such filing will also be available for CBOE’s principal office, and at the inspection and copying at the principal Commission’s Public Reference Room. office of the Exchange. All comments received will be posted without change; II. Self-Regulatory Organization’s Statement of the Purpose of, and the Commission does not edit personal Statutory Basis for, the Proposed Rule identifying information from Change submissions. You should submit only information that you wish to make In its filing with the Commission, the available publicly. All submissions Exchange included statements should refer to File No. SR-BSE–2008– concerning the purpose of, and basis for, 31 and should be submitted on or before the proposed rule change and discussed June 26, 2008. any comments it received on the proposed rule change. The text of these For the Commission, by the Division of statements may be examined at the Trading and Markets, pursuant to delegated authority.13 places specified in Item IV below. The Exchange has prepared summaries, set Florence E. Harmon, forth in Sections A, B, and C below, of Acting Secretary. the most significant aspects of such [FR Doc. E8–12481 Filed 6–4–08; 8:45 am] statements. BILLING CODE 8010–01–P 1 15 13 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 14:51 Jun 04, 2008 2 17 Jkt 214001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00116 Fmt 4703 Sfmt 4703 32065 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to increase and strengthen the sanctions imposed pursuant to its Minor Rule Violation Plan (‘‘MRVP’’) in connection with any member or customer who exceeds the Exchange’s position limit in accordance with CBOE Rule 4.11. The Exchange believes that increasing the fine levels specified; consolidating individual members, member organizations, and customers into one category; and lengthening the surveillance period from a 12-month period to a rolling 24month period will serve as an effective deterrent to such violative conduct. In addition, the Exchange, as a member of the Intermarket Surveillance Group (‘‘ISG’’), as well as certain other self-regulatory organizations (‘‘SROs’’) on October 29, 2007 executed and filed with the Commission a final version of an Agreement pursuant to Section 17(d) of the Act (the ‘‘17d–2 Agreement’’).3 The members of the ISG intend to enter into an amendment to the 17d–2 Agreement in the near future concerning the surveillance and sanctions of position limit violations. As such, the SROs have agreed that their respective rules concerning position limits regarding options contracts are common rules. As a result, the proposal to amend the CBOE’s MRVP will further result in consistency in sanctions among the SROs that are signatories to the 17d–2 Agreement and the forthcoming amendment concerning position limit violations. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,4 in general, and furthers the objectives of Section 6(b)(5) of the Act,5 in particular, in that it is designed to promote just and equitable principles of trade, facilitate transactions in securities, 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 proposed rule change will strengthen its ability to carry out its oversight responsibilities as 3 See letter to Richard Holley, Senior Special Counsel, Division of Trading and Markets, Commission, from Nyieri Nazarian, Assistant General Counsel, American Stock Exchange LLC, dated October 29, 2007. 4 15 U.S.C. 78f(b). 5 15 U.S.C. 78f(b)(5). E:\FR\FM\05JNN1.SGM 05JNN1 32066 Federal Register / Vol. 73, No. 109 / Thursday, June 5, 2008 / Notices an SRO and reinforce its surveillance and enforcement functions. Additionally, the Exchange believes that the proposed rule change will promote consistency in minor rule violations and respective SRO reporting obligations as set forth pursuant to Rule 19d–1(c)(2) under the Act,6 which governs minor rule violation plans. 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 No written comments were solicited or received on the proposed rule change. 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) 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 the Exchange 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 All submissions should refer to File Number SR–CBOE–2008–53. 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 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–2008–53 and should be submitted on or before June 26, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Florence E. Harmon, Acting Secretary. [FR Doc. E8–12482 Filed 6–4–08; 8:45 am] 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 Electronic Comments Self-Regulatory Organizations; The Options Clearing Corporation; Order Granting Approval of a Proposed Rule Change, as Modified by Amendment No. 1, Relating to SPDR Gold Shares • 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–2008–53 on the subject line. yshivers on PROD1PC62 with NOTICES Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. 6 17 CFR 240.19d–1(c)(2). VerDate Aug<31>2005 14:51 Jun 04, 2008 II. Description The rule change helps to clarify the manner in which options and security futures on SPDR Gold Shares will be treated and cleared by adding an interpretation to the definition of ‘‘fund share’’ in Article I, Section 1 of OCC’s By-Laws.4 Under the interpretation, OCC will clear and treat as securities options any option contracts on SPDR Gold Shares, which are traded on securities exchanges. Similarly, OCC will clear and treat as security futures any futures contracts on SPDR Gold Shares.5 In its capacity as a ‘‘derivatives clearing organization’’ registered with the Commodity Futures Trading Commission (‘‘CFTC’’), OCC also filed the proposed rule change with the CFTC for prior approval by the CFTC pursuant to provisions of the Commodity Exchange Act (‘‘CEA’’).6 III. Discussion Section 17A(b)(3)(F) of the Act requires, among other things, that the rules of a clearing agency be designed to promote the prompt and accurate clearance and settlement of securities transactions.7 By amending its By-Laws to help clarify that options and security 1 15 U.S.C. 78s(b)(1). Exchange Act Release Nos. 57466 (March 11, 2008), 73 FR 14297 and 57695 (April 21, 2008), 73 FR 22452. The Commission republished notice of the proposed rule change in order to add footnote 6 to Section IV, Solicitation of Comments. 3 Although the proposed rule change was amended after it was noticed for comment in the Federal Register, republication of the notice is not necessary because the post-notice amendment made only a technical change to reflect that streetTRACKS Gold Trust has been re-named SPDR Gold Trust. 4 The new interpretation replaces the interpretation that was added to OCC’s By-Laws by File No. SR–OCC–2008–04, which was effective upon filing. At the request of the Commission, OCC withdrew SR–OCC–2008–04 from consideration by the Commission in conjunction with the submission of this filing, SR–OCC–2008–07. 5 The exact language of the interpretation can be found at https://www.optionsclearing.com/ publications/rules/proposed_changes/ sr_occ_08_07.pdf. 6 OCC’s filing with the CFTC can be found at https://www.cftc.gov/stellent/groups/public/ @rulesandproducts/documents/ifdocs/ rul030708occ001.pdf. 7 15 U.S.C. 78q–1(b)(3)(F). 2 Securities SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57895; File No. SR–OCC– 2008–07] May 30, 2008. I. Introduction On March 7, 2008, The Options Clearing Corporation (‘‘OCC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) proposed rule change SR–OCC–2008–07 pursuant to Section 19(b)(1) of the Securities 7 17 Jkt 214001 Exchange Act of 1934 (‘‘Act’’).1 Notice of the proposal was published in the Federal Register on March 17, 2008, and was republished on April 25, 2008.2 On May 22, 2008, OCC filed Amendment No. 1 to the proposed rule change.3 No comment letters were received. For the reasons discussed below, the Commission is granting approval of the proposed rule change, as amended. PO 00000 CFR 200.30–3(a)(12). Frm 00117 Fmt 4703 Sfmt 4703 E:\FR\FM\05JNN1.SGM 05JNN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 73, Number 109 (Thursday, June 5, 2008)]
[Notices]
[Pages 32065-32066]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-12482]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57883; File No. SR-CBOE-2008-53]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of Proposed Rule Change To Amend the 
Exchange's Rules Pertaining to the Imposition of Fines for Minor Rule 
Violations

May 29, 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 19, 2008, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' or ``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 substantially 
prepared by the 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend CBOE Rule 17.50, ``Imposition of 
Fines for Minor Rule Violations,'' to revise the provisions of CBOE 
Rule 17.50(g)(1) ``Violations of Position Limits Rules.'' The text of 
the proposed rule change is available on the Exchange's Web site 
(https://www.cboe.org/Legal), at the CBOE's principal office, 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 proposes to increase and strengthen the sanctions 
imposed pursuant to its Minor Rule Violation Plan (``MRVP'') in 
connection with any member or customer who exceeds the Exchange's 
position limit in accordance with CBOE Rule 4.11. The Exchange believes 
that increasing the fine levels specified; consolidating individual 
members, member organizations, and customers into one category; and 
lengthening the surveillance period from a 12-month period to a rolling 
24-month period will serve as an effective deterrent to such violative 
conduct.
    In addition, the Exchange, as a member of the Intermarket 
Surveillance Group (``ISG''), as well as certain other self-regulatory 
organizations (``SROs'') on October 29, 2007 executed and filed with 
the Commission a final version of an Agreement pursuant to Section 
17(d) of the Act (the ``17d-2 Agreement'').\3\ The members of the ISG 
intend to enter into an amendment to the 17d-2 Agreement in the near 
future concerning the surveillance and sanctions of position limit 
violations. As such, the SROs have agreed that their respective rules 
concerning position limits regarding options contracts are common 
rules. As a result, the proposal to amend the CBOE's MRVP will further 
result in consistency in sanctions among the SROs that are signatories 
to the 17d-2 Agreement and the forthcoming amendment concerning 
position limit violations.
---------------------------------------------------------------------------

    \3\ See letter to Richard Holley, Senior Special Counsel, 
Division of Trading and Markets, Commission, from Nyieri Nazarian, 
Assistant General Counsel, American Stock Exchange LLC, dated 
October 29, 2007.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\4\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\5\ in particular, in that it 
is designed to promote just and equitable principles of trade, 
facilitate transactions in securities, 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 proposed rule change will 
strengthen its ability to carry out its oversight responsibilities as

[[Page 32066]]

an SRO and reinforce its surveillance and enforcement functions. 
Additionally, the Exchange believes that the proposed rule change will 
promote consistency in minor rule violations and respective SRO 
reporting obligations as set forth pursuant to Rule 19d-1(c)(2) under 
the Act,\6\ which governs minor rule violation plans.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ 17 CFR 240.19d-1(c)(2).
---------------------------------------------------------------------------

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

    No written comments were solicited or received on the proposed rule 
change.

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) 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 the Exchange 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-2008-53 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-CBOE-2008-53. 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 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-2008-53 and should be 
submitted on or before June 26, 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,
Acting Secretary.
[FR Doc. E8-12482 Filed 6-4-08; 8:45 am]
BILLING CODE 8010-01-P

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