Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Quarterly Options Series Pilot Program Until July 10, 2009, 38010-38012 [E8-14922]
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38010
Federal Register / Vol. 73, No. 128 / Wednesday, July 2, 2008 / Notices
Options series thereby providing FLEXparticipating members and their
customers greater flexibility to trade
FLEX Equity Options will benefit the
marketplace and market participants.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change will impose
no 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 by the Exchange on this
proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (A) Significantly affect
the protection of investors or the public
interest; (B) impose any significant
burden on competition; and (C) by its
terms, become operative for 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate, if consistent with the
protection of investors and the public
interest, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 18 and Rule 19b–4(f)(6)
thereunder.19
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing. However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay and designate the proposed rule
change immediately operative, so that
the Exchange can implement the rule
change, which is substantially similar to
proposals recently implemented at other
exchanges, without delay. The Amex
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest for competitive reasons, and
18 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires that a self-regulatory
organization submit to the Commission 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 Commission notes that Amex has
satisfied the five-day pre-filing notice requirement.
jlentini on PROD1PC65 with NOTICES
19 17
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because the proposal raises no new or
controversial issues.
The Commission notes that the Amex
proposal is substantially similar to the
CBOE Pilot Program which was
published for comment in the Federal
Register. No comments were received
on CBOE’s proposal, and the Amex
proposal raises no new or novel issues.
Based on this, the Commission believes
that waiving the 30-day operative delay
is consistent with the protection of
investors and the public interest.
Therefore, the Commission designates
the proposed rule change to be operative
upon filing.20
At any time within 60 days of the
filing of such 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 rulecomments@sec.gov. Please include File
Number SR–Amex–2008–50 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–Amex–2008–50. 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
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).
PO 00000
20 For
Frm 00083
Fmt 4703
Sfmt 4703
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 Amex. 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–2008–50 and should
be submitted on or before July 23, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15002 Filed 7–1–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58018; File No. SR–CBOE–
2008–62]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Quarterly
Options Series Pilot Program Until July
10, 2009
June 25, 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 June 12,
2008, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (‘‘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
21 17
CFR 200.30–3(a)(12).
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).
1 15
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Federal Register / Vol. 73, No. 128 / Wednesday, July 2, 2008 / Notices
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
CBOE proposes to extend for one year
an existing pilot program (‘‘Pilot’’)
under which the Exchange lists
Quarterly Options Series, which are
options series that expire at the close of
business on the last business day of a
calendar quarter. The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.org/legal), at the principal
office 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
jlentini on PROD1PC65 with NOTICES
1. Purpose
On July 10, 2006, the Exchange filed
with the Commission SR–CBOE–2006–
65, which was effective on filing.5 That
proposed rule change allowed the
Exchange to establish a pilot program in
which the Exchange lists Quarterly
Options Series. The Exchange
subsequently extended the duration of
the Pilot for one year, so that it would
expire on July 10, 2008.6 On March 3,
2008, the Commission approved a
proposed rule change amending the
Pilot to permit the listing of additional
series and to implement a delisting
policy for outlying series with no open
interest.7 The Exchange hereby proposes
to extend the Pilot, as amended, for an
5 See Securities Exchange Act Release No. 54123
(July 11, 2006), 71 FR 40558, (July 17, 2006) (SR–
CBOE–2006–65).
6 See Securities Exchange Act Release No. 56035
(July 10, 2007), 72 FR 38851, (July 16, 2007) (SR–
CBOE–2007–70).
7 See Securities Exchange Act Release No. 57410
(March 3, 2008), 73 FR 12483 (March 7, 2008) (SR–
CBOE–2007–96).
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18:51 Jul 01, 2008
Jkt 214001
additional year, so that it will expire on
July 10, 2009. This proposal does not
request any other changes to the Pilot.
In SR–CBOE–2006–65, the Exchange
stated that it would submit, in
connection with any proposed
extension of the Pilot, a Pilot Program
Report (‘‘Report’’) that would provide an
analysis of the Pilot covering the entire
period during which the Pilot was in
effect. The Exchange further stated that
the Report would include, at a
minimum: (1) Data and written analysis
on the open interest and trading volume
in the classes for which Quarterly
Options Series were opened; (2) an
assessment of the appropriateness of the
option classes selected for the Pilot; (3)
an assessment of the impact of the Pilot
on the capacity of CBOE, OPRA, and on
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 and how CBOE
addressed such problems; (5) any
complaints that CBOE received during
the operation of the Pilot and how
CBOE addressed them; and (6) any
additional information that would assist
in assessing the operation of the Pilot.
In connection with SR–CBOE–2007–96,
the Commission further requested that
the Report 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 Quarterly Options Series
strikes that were otherwise eligible for
delisting. The Exchange has submitted,
under separate cover, a Report and
supplement (‘‘Supplement’’) in
connection with the present proposed
rule change, which Report seeks
confidential treatment under the
Freedom of Information Act.
The Exchange represents that the
Report and Supplement clearly support
CBOE’s belief that extension of the Pilot
Program is proper.8 Among other things,
the Exchange represents that the Report
and the Supplement show the strength
and efficacy of the Pilot Program on the
Exchange as reflected by the strong
volume of Quarterly Options traded on
the Exchange since the Pilot’s inception
in July 2006. The Exchange also
8 See electronic mail sent June 24, 2008 from
Jennifer Yeadon, Exchange, to Heidi Pilpel,
Attorney, Division of Trading and Markets,
Commission.
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
38011
represents that the Report and the
Supplement establish that the Pilot
Program has not created, and in the
future should not create, capacity
problems for the Exchange’s or OPRA’s
systems. Moreover, the Exchange
believes that the proposed extension of
the Pilot Program will not have an
adverse impact on capacity.
2. Statutory Basis
The Exchange believes that short-term
options series increase the variety of
listed options available to investors and
provide investors with a valuable tool to
manage risk exposure, minimize capital
outlays, and be more responsive to the
timing of events affecting the securities
underlying options contracts. For these
reasons, the Exchange believes the
proposed rule change is consistent with
Section 6(b) of the Act.9 Specifically,
the Exchange believes the proposed rule
change is consistent with Section 6(b)(5)
of the Act,10 which requires that the
rules of an exchange be designed to
promote just and equitable principles of
trade, serve to remove impediments to
and perfect the mechanism for a free
and open market and a national market
system, and, in general, to 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 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 with respect to 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
9 15
U.S.C. 78(f)(b).
U.S.C. 78(f)(b)(5).
10 15
E:\FR\FM\02JYN1.SGM
02JYN1
38012
Federal Register / Vol. 73, No. 128 / Wednesday, July 2, 2008 / Notices
Section 19(b)(3)(A) of the Act 11 and
subparagraph (f)(6) of Rule 19b–4
thereunder.12
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 Commission
has determined that waiving the 30-day
operative delay of the Exchange’s
proposal is consistent with the
protection of investors and the public
interest and will promote competition
because such waiver will allow CBOE to
continue the existing Pilot without
interruption.13 Therefore, the
Commission designates the proposal
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
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–CBOE–2008–62 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–2008–62. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
11 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.
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).
jlentini on PROD1PC65 with NOTICES
12 17
VerDate Aug<31>2005
18:51 Jul 01, 2008
Jkt 214001
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 No.
SR–CBOE–2008–62 and should be
submitted on or before July 23, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–14922 Filed 7–1–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58044; File No. SR–DTC–
2008–02]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Relating to
the Deposits Service Guide
June 26, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
May 2, 2008, The Depository Trust
Company (‘‘DTC’’) 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 primarily by DTC. DTC filed
the proposed rule change pursuant to
PO 00000
Section 19(b)(3)(A)(iii) of the Act 2 and
Rule 19b–4(f)(4) thereunder 3 so that the
proposal was 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 proposed rule change clarifies
DTC’s Regular Custody Services
procedures regarding the handling of
non-negotiable securities that require
additional legal documentation.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
DTC 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. DTC 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
The proposed rule change clarifies a
provision relating to Legal Deposits as
set forth in the ‘‘Regular Custody
Services’’ section of the DTC Deposits
Service Guide (‘‘Guide’’). Specifically,
DTC is amending a section of the Guide
to clarify that when DTC holds nonnegotiable certificates that are missing
additional legal documentation, DTC
will hold such certificates in its custody
until: (1) The certificates are made
negotiable by a subsequent document
deposit or (2) the participant instructs
DTC to return the certificates in a
manner directed by that participant.
DTC states that the proposed rule
change is consistent with the
requirements of Section 17A of the Act 4
and the rules and regulations
thereunder because it clarifies an
existing procedure in DTC’s rules
relating to securities certificates held by
DTC on behalf of its participants and
thus promotes the safeguarding of
securities which are in the custody or
control of DTC or for which it is
responsible.
2 15
14 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
Frm 00085
Fmt 4703
Sfmt 4703
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(4).
4 15 U.S.C. 78q–1.
3 17
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]]>Agencies
[Federal Register Volume 73, Number 128 (Wednesday, July 2, 2008)]
[Notices]
[Pages 38010-38012]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-14922]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58018; File No. SR-CBOE-2008-62]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Extend the Quarterly Options Series Pilot Program Until
July 10, 2009
June 25, 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 June 12, 2008, the Chicago Board Options Exchange, Incorporated
(``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (``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
[[Page 38011]]
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
CBOE proposes to extend for one year an existing pilot program
(``Pilot'') under which the Exchange lists Quarterly Options Series,
which are options series that expire at the close of business on the
last business day of a calendar quarter. The text of the proposed rule
change is available on the Exchange's Web site (https://www.cboe.org/
legal), at the principal office 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
On July 10, 2006, the Exchange filed with the Commission SR-CBOE-
2006-65, which was effective on filing.\5\ That proposed rule change
allowed the Exchange to establish a pilot program in which the Exchange
lists Quarterly Options Series. The Exchange subsequently extended the
duration of the Pilot for one year, so that it would expire on July 10,
2008.\6\ On March 3, 2008, the Commission approved a proposed rule
change amending the Pilot to permit the listing of additional series
and to implement a delisting policy for outlying series with no open
interest.\7\ The Exchange hereby proposes to extend the Pilot, as
amended, for an additional year, so that it will expire on July 10,
2009. This proposal does not request any other changes to the Pilot.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 54123 (July 11,
2006), 71 FR 40558, (July 17, 2006) (SR-CBOE-2006-65).
\6\ See Securities Exchange Act Release No. 56035 (July 10,
2007), 72 FR 38851, (July 16, 2007) (SR-CBOE-2007-70).
\7\ See Securities Exchange Act Release No. 57410 (March 3,
2008), 73 FR 12483 (March 7, 2008) (SR-CBOE-2007-96).
---------------------------------------------------------------------------
In SR-CBOE-2006-65, the Exchange stated that it would submit, in
connection with any proposed extension of the Pilot, a Pilot Program
Report (``Report'') that would provide an analysis of the Pilot
covering the entire period during which the Pilot was in effect. The
Exchange further stated that the Report would include, at a minimum:
(1) Data and written analysis on the open interest and trading volume
in the classes for which Quarterly Options Series were opened; (2) an
assessment of the appropriateness of the option classes selected for
the Pilot; (3) an assessment of the impact of the Pilot on the capacity
of CBOE, OPRA, and on 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 and how CBOE
addressed such problems; (5) any complaints that CBOE received during
the operation of the Pilot and how CBOE addressed them; and (6) any
additional information that would assist in assessing the operation of
the Pilot. In connection with SR-CBOE-2007-96, the Commission further
requested that the Report 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 Quarterly Options Series strikes that
were otherwise eligible for delisting. The Exchange has submitted,
under separate cover, a Report and supplement (``Supplement'') in
connection with the present proposed rule change, which Report seeks
confidential treatment under the Freedom of Information Act.
The Exchange represents that the Report and Supplement clearly
support CBOE's belief that extension of the Pilot Program is proper.\8\
Among other things, the Exchange represents that the Report and the
Supplement show the strength and efficacy of the Pilot Program on the
Exchange as reflected by the strong volume of Quarterly Options traded
on the Exchange since the Pilot's inception in July 2006. The Exchange
also represents that the Report and the Supplement establish that the
Pilot Program has not created, and in the future should not create,
capacity problems for the Exchange's or OPRA's systems. Moreover, the
Exchange believes that the proposed extension of the Pilot Program will
not have an adverse impact on capacity.
---------------------------------------------------------------------------
\8\ See electronic mail sent June 24, 2008 from Jennifer Yeadon,
Exchange, to Heidi Pilpel, Attorney, Division of Trading and
Markets, Commission.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that short-term options series increase the
variety of listed options available to investors and provide investors
with a valuable tool to manage risk exposure, minimize capital outlays,
and be more responsive to the timing of events affecting the securities
underlying options contracts. For these reasons, the Exchange believes
the proposed rule change is consistent with Section 6(b) of the Act.\9\
Specifically, the Exchange believes the proposed rule change is
consistent with Section 6(b)(5) of the Act,\10\ which requires that the
rules of an exchange be designed to promote just and equitable
principles of trade, serve to remove impediments to and perfect the
mechanism for a free and open market and a national market system, and,
in general, to protect investors and the public interest.
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\9\ 15 U.S.C. 78(f)(b).
\10\ 15 U.S.C. 78(f)(b)(5).
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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 with respect to 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
[[Page 38012]]
Section 19(b)(3)(A) of the Act \11\ and subparagraph (f)(6) of Rule
19b-4 thereunder.\12\
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 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.
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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 Commission has determined that waiving the
30-day operative delay of the Exchange's proposal is consistent with
the protection of investors and the public interest and will promote
competition because such waiver will allow CBOE to continue the
existing Pilot without interruption.\13\ Therefore, the Commission
designates the proposal operative upon filing.
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\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).
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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-CBOE-2008-62 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-2008-62. 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 No. SR-CBOE-2008-62 and should be
submitted on or before July 23, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-14922 Filed 7-1-08; 8:45 am]
BILLING CODE 8010-01-P
