Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Options on Shares of the SPDR® Gold Trust, 40884-40886 [E8-16234]
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40884
Federal Register / Vol. 73, No. 137 / Wednesday, July 16, 2008 / Notices
For the U.S. Nuclear Regulatory
Commission.
Lawrence E. Kokajko,
Director, Division of High-Level Waste
Repository Safety, Office of Nuclear Material
Safety and Safeguards.
[FR Doc. E8–16225 Filed 7–15–08; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58136; File No. SR–BSE–
2008–41]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to
Options on Shares of the SPDR Gold
Trust
July 10, 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 July 9,
2008, the Boston Stock Exchange, Inc.
(‘‘BSE’’ or ‘‘Exchange’’), filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. BSE filed the proposal
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) thereunder,4
which renders the proposal effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
mstockstill on PROD1PC66 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Section 3 (Criteria for Underlying
Securities) of Chapter IV of the Rules of
the Boston Options Exchange Group
LLC (‘‘BOX’’) to enable the listing and
trading on BOX of options on the
SPDR Gold Trust (Ticker: GLD). The
text of the proposed rule change is
available at the Exchange, the
Commission’s Public Reference Room,
and https://www.bostonstock.com.
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,
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
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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 purpose of the proposed rule
change is to enable the listing and
trading of options on the SPDR Gold
Trust (the ‘‘Gold ETF’’) on BOX.
Currently, Section 3(i) of Chapter IV
of the BOX Rules provides that
securities deemed appropriate for
options trading shall include shares or
other securities (‘‘Exchange-Traded
Fund Shares’’) that are traded on a
national securities exchange and are
defined as an ‘‘NMS’’ stock under Rule
600 of Regulation NMS, and that (i)
Represent interests in registered
investment companies (or series thereof)
organized as open-end management
investment companies, unit investment
trusts or similar entities that hold
portfolios of securities and/or financial
instruments, including, but not limited
to, stock index futures contracts, options
on futures, options on securities and
indices, equity caps, collars and floors,
swap agreements, forward contracts,
repurchase agreements and reverse
repurchase agreements (the ‘‘Financial
Instruments’’) and money market
instruments, including, but not limited
to, U.S. government securities and
repurchase agreements (the ‘‘Money
Market Instruments’’) comprising or
otherwise based on or representing
investments in broad-based indexes or
portfolios of securities and/or Financial
Instruments and Money Market
Instruments (or that hold securities in
one or more other registered investment
companies that themselves hold such
portfolios of securities and/or Financial
Instruments and Money Market
Instruments) or (ii) represent interests in
a trust that holds a specified non-U.S.
currency or currencies deposited with
the trust when aggregated in some
specified minimum number may be
surrendered to the trust by the
beneficial owner to receive the specified
non-U.S. currency or currencies and
pays the beneficial owner interest and
other distributions on the deposited
non-U.S. currency or currencies, if any,
declared and paid by the trust or (iii)
represent commodity pool interests
PO 00000
Frm 00055
Fmt 4703
Sfmt 4703
principally engaged, directly or
indirectly, in holding and/or managing
portfolios or baskets of securities,
commodity futures contracts, options on
commodity futures contracts, swaps,
forward contracts and/or options on
physical commodities and/or non-U.S.
currency. The proposed rule change
would expand the types of ETFs that
may be approved for options trading on
BOX to include the SPDR Gold Trust.
Apart from allowing the SPDR Gold
Trust to be an underlying for options
traded on BOX as described above, the
listing standards for ETFs would remain
unchanged from those that apply under
current BOX rules. In addition to
satisfying the aforementioned listing
standards in Section 3(i) of Chapter IV
of the BOX Rules, the Gold ETF must be
traded on a national securities exchange
and must be defined as an ‘‘NMS stock’’
under Rule 600 of Regulation NMS. The
Gold ETF must also either: (1) Meet the
criteria and guidelines of paragraphs (a)
and (b) under Section 3 of Chapter IV of
the BOX Rules (Criteria for Underlying
Securities); or (2) be available for
creation or redemption each business
day from and through the issuing trust,
investment company, commodity pool
or other entity in cash or in kind at a
price related to net asset value, and the
issuer is obligated to issue the Gold ETF
in a specified aggregate number even if
some or all of the investments and/or
cash required to be deposited have not
been received by the issuer, subject to
the condition that the person obligated
to deposit the investment assets has
undertaken to deliver them as soon as
possible and such undertaking is
secured by the delivery and
maintenance of collateral consisting of
cash or cash equivalents satisfactory to
the issuer of the Gold ETF, all as
described in the Gold ETF’s prospectus.
The Exchange proposes that the
current applicable continued listing
standards for options on ETFs would
apply to options on the SPDR Gold
Trust. Specifically, as set forth in
Section 4(h) of Chapter IV of the BOX
Rules, the Gold ETF approved for
options trading will not be deemed to
meet the requirements for continued
approval, and the Exchange will not
open for trading any additional series of
options contracts if the Gold ETF ceases
to be an ‘‘NMS stock,’’ or the Gold ETF
is delisted, halted or suspended from
trading on its primary market or if any
of the following circumstances occur:
(1) Following the initial twelve-month
period beginning upon the
commencement of trading of the Gold
ETF, there are fewer than 50 record and/
or beneficial holders of the Gold ETF for
30 or more consecutive trading days; (2)
E:\FR\FM\16JYN1.SGM
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Federal Register / Vol. 73, No. 137 / Wednesday, July 16, 2008 / Notices
the value of the index or portfolio of
securities or portfolio of commodities
including commodity futures contracts,
options on commodity futures contracts,
swaps, forward contracts, and/or
options on physical commodities, on
which the Gold ETF is based is no
longer calculated or available; or (3)
such other event occurs or condition
exists that in the opinion of the
Exchange makes further dealing in such
options on the Exchange inadvisable.
The Exchange represents that its
surveillance procedures applicable to
trading in options on the Gold ETF will
be similar to those applicable to all
other options on ETFs currently traded
on BOX. Further, the Exchange may
obtain trading information via the
Intermarket Surveillance Group (‘‘ISG’’)
from other exchanges who are members
or affiliates of the ISG, including, but
not limited to, the New York Mercantile
Exchange, Inc., related to any financial
instrument(s) traded on that exchange
that is based, in whole or in part, upon
an interest in, or performance of, gold.
Finally, the listing and trading of
options on the Gold ETF under Section
3(i) will not have any effect on the rules
pertaining to position and exercise
limits 5 or margin.6
This proposed rule change is based on
filings recently approved by the
Commission.7
2. Statutory Basis
The Exchange believes that the
proposal is consistent with Section 6(b)
of the Act,8 in general, and furthers the
objectives of Section 6(b)(5) of the Act,9
in particular, in that it is designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts, 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. Specifically, the
Exchange believes that amending the
BOX Rules to accommodate the listing
and trading of options on the Gold ETF
will benefit investors by providing them
with greater risk management tools.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 10 and
Rule 19b–4(f)(6) thereunder.11
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 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 requests that the Commission
waive the 30-day operative delay so that
the Exchange can list and trade options
on the Gold ETF immediately. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest to permit the listing and
trading of options on the SPDR Gold
Trust without further delay.12 The
Commission notes the proposal is
substantively identical to proposals that
were recently approved by the
Commission, and does not raise any
10 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.
12 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
mstockstill on PROD1PC66 with NOTICES
11 17
5 See Sections 7 and 9 of Chapter III of the BOX
Rules.
6 See Section 3 of Chapter XIII of the BOX Rules.
7 See Securities Exchange Act Release No. 57894
(May 30, 2008), 73 FR 32061 (June 5, 2008) (File
Nos. SR–Amex–2008–15; SR–CBOE–2005–11; SR–
ISE–2008–12; SR–NYSEArca–2008–52; and SR–
Phlx–2008–17). See also Securities Exchange Act
Release No. 57945 (June 10, 2008), 73 FR 34353
(June 17, 2008) (SR–NASDAQ–2008–051).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
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40885
new regulatory issues.13 For these
reasons, the Commission designates the
proposed rule change as operative upon
filing.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–BSE–2008–41 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–BSE–2008–41. 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 the filing also will be available
for inspection and copying at the
principal office of the Exchange. All
comments received will be posted
13 See
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supra note 7.
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40886
Federal Register / Vol. 73, No. 137 / Wednesday, July 16, 2008 / Notices
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–BSE–2008–41 and should
be submitted on or before August 6,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–16234 Filed 7–15–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58138; File No. SR–CBOE–
2007–30]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of
Proposed Rule Change and
Amendment No. 1 Thereto Relating to
Amendments to Rule 9.21
(Communications to Customers)
July 10, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’) 1, and Rule 19b–4
thereunder 2, notice is hereby given that
on March 19, 2007, 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 CBOE. CBOE
filed Amendment No. 1 to the proposed
rule change on June 9, 2008.3 The
Commission is publishing this notice to
solicit comments on the proposed rule
change, as amended, from interested
persons.
mstockstill on PROD1PC66 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to remove
or otherwise amend elements of CBOE
Rule 9.21 (‘‘Communications to
Customers’’) that incorporate provisions
of the Securities Act of 1933
(‘‘Securities Act’’) 4 because options
traded on CBOE consist solely of
standardized options issued by the
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Amendment No. 1 replaces the original filing in
its entirety.
4 15 U.S.C. 77a et seq.
1 15
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Jkt 214001
Options Clearing Corporation (‘‘OCC’’),
a registered clearing agency, that are
exempt under Rule 238 of the Securities
Act from all provisions of the Securities
Act except the antifraud provisions of
Section 17. Additionally, the proposed
amendments expand the types of
communications governed by Rule 9.21
to include independently prepared
reprints and other communications
between a member or member
organization and a customer. The
proposed amendments also exempt
certain options communications from
the pre-approval requirement by a
Registered Options Principal (‘‘ROP’’).
The text of the proposed rule change is
available at the Exchange, the
Commission’s Public Reference Room
and https://www.cboe.org/legal.
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, Proposed Rule
Change
1. Purpose
On December 23, 2002, the
Commission published final rules that
exempt standardized options, as defined
in Rule 9b–15 of the Exchange Act, that
are issued by a registered clearing
agency and traded on a registered
national securities exchange or on a
registered national securities
association, from all provisions of the
Securities Act (other than the anti-fraud
provisions) and the registration
requirements of the Exchange Act.6
Because the Securities Act and the rules
thereunder (other than the anti-fraud
provisions) are no longer applicable to
such standardized options, CBOE
proposes to remove elements of the
Securities Act that are embedded in
CBOE Rule 9.21. In particular, CBOE
proposes to remove all references to a
CFR 240.9b–1.
‘‘Exemption for Standardized Options From
Provisions of the Securities Act of 1933 and From
the Registration Requirements of the Securities
Exchange Act of 1934; Final Rule,’’ Securities Act
Release No. 8171 and Exchange Act Release No.
47082 (Dec. 23, 2002), 68 FR 188 (Jan. 2, 2003).
PO 00000
5 17
6 See
Frm 00057
Fmt 4703
Sfmt 4703
‘‘prospectus’’ from Rule 9.21.
Prospectuses are no longer required for
such standardized options, and the OCC
has, in fact, ceased publication of a
prospectus.7 In addition, the proposed
amendments will update and reorganize
Rule 9.21. The proposed amendments
are similar to amendments filed with
the Commission by the Financial
Industry Regulatory Authority, Inc. and
the New York Stock Exchange, LLC and,
if adopted, would provide a more
uniform approach to communications to
customers regarding standardized
options.8
a. Deletion of Certain Provisions
As noted above, CBOE Rule 9.21
contains a number of references to a
prospectus and other Securities Act
requirements. The Exchange proposes to
delete the following from Rule 9.21:
(1) Rule 9.21(a)(iv), which references
the Securities Act definition of
prospectus,
(2) Rule 9.21(d), which incorporates
Securities Act principles in that it
prohibits written material concerning
options from being furnished to any
person who has not previously or
contemporaneously received the ODD,
(3) Rule 9.21(e)(ii), which defines the
term ‘‘Educational Material,’’ 9
(4) Interpretation and Policy .02A of
Rule 9.21, which outlines what is
permitted in an ‘‘Advertisement,’’ 10 and
(5) Interpretation and Policy .03 of
Rule 9.21, which concerns educational
material.11
b. Redesignation of Rule 9.21(a) to
Proposed Rule 9.21(d) and Related
Amendments
Rule 9.21(a) currently contains an
outline of the ‘‘General Rule’’ for
options communications. CBOE
proposes to redesignate paragraph (a) as
paragraph (d), and to incorporate
limitations on the use of options
communications contained in
Interpretations and Policies .01 of Rule
9.21 into proposed Rule 9.21(d). In
addition, proposed Rule 9.21(d)(iii)
would amend Rule 9.21(a)(iii) by
7 The options disclosure document (‘‘ODD’’)
prepared in accordance with Rule 9b–1 under the
Exchange Act is not deemed to be a prospectus. 17
CFR 230.135b. See, e.g., Securities Act Release No.
8049 (Dec. 21, 2001), 67 FR 228 (Jan. 2, 2002).
8 See Exchange Act Release No. 57720 (Apr. 25,
2008) 73 FR 24332 (May 2, 2008) (SR–FINRA–
2008–13) and SR–NYSE–2006–50.
9 This paragraph essentially incorporates
language of Securities Act Rule 134a. While this
amendment would eliminate the separate
educational material category, as discussed below
the Exchange also proposes to revise the definition
of Sales Literature to include educational material.
10 This paragraph essentially incorporates
language of Securities Act Rule 134.
11 See note 9, supra.
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]]>Agencies
[Federal Register Volume 73, Number 137 (Wednesday, July 16, 2008)]
[Notices]
[Pages 40884-40886]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-16234]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58136; File No. SR-BSE-2008-41]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Options on Shares of the SPDR[supreg] Gold Trust
July 10, 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 July 9, 2008, the Boston Stock Exchange, Inc. (``BSE'' or
``Exchange''), filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. BSE filed the
proposal pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6) thereunder,\4\ which renders the proposal effective upon filing
with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Section 3 (Criteria for Underlying
Securities) of Chapter IV of the Rules of the Boston Options Exchange
Group LLC (``BOX'') to enable the listing and trading on BOX of options
on the SPDR[supreg] Gold Trust (Ticker: GLD). The text of the proposed
rule change is available at the Exchange, the Commission's Public
Reference Room, and https://www.bostonstock.com.
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 purpose of the proposed rule change is to enable the listing
and trading of options on the SPDR[supreg] Gold Trust (the ``Gold
ETF'') on BOX.
Currently, Section 3(i) of Chapter IV of the BOX Rules provides
that securities deemed appropriate for options trading shall include
shares or other securities (``Exchange-Traded Fund Shares'') that are
traded on a national securities exchange and are defined as an ``NMS''
stock under Rule 600 of Regulation NMS, and that (i) Represent
interests in registered investment companies (or series thereof)
organized as open-end management investment companies, unit investment
trusts or similar entities that hold portfolios of securities and/or
financial instruments, including, but not limited to, stock index
futures contracts, options on futures, options on securities and
indices, equity caps, collars and floors, swap agreements, forward
contracts, repurchase agreements and reverse repurchase agreements (the
``Financial Instruments'') and money market instruments, including, but
not limited to, U.S. government securities and repurchase agreements
(the ``Money Market Instruments'') comprising or otherwise based on or
representing investments in broad-based indexes or portfolios of
securities and/or Financial Instruments and Money Market Instruments
(or that hold securities in one or more other registered investment
companies that themselves hold such portfolios of securities and/or
Financial Instruments and Money Market Instruments) or (ii) represent
interests in a trust that holds a specified non-U.S. currency or
currencies deposited with the trust when aggregated in some specified
minimum number may be surrendered to the trust by the beneficial owner
to receive the specified non-U.S. currency or currencies and pays the
beneficial owner interest and other distributions on the deposited non-
U.S. currency or currencies, if any, declared and paid by the trust or
(iii) represent commodity pool interests principally engaged, directly
or indirectly, in holding and/or managing portfolios or baskets of
securities, commodity futures contracts, options on commodity futures
contracts, swaps, forward contracts and/or options on physical
commodities and/or non-U.S. currency. The proposed rule change would
expand the types of ETFs that may be approved for options trading on
BOX to include the SPDR[supreg] Gold Trust.
Apart from allowing the SPDR[supreg] Gold Trust to be an underlying
for options traded on BOX as described above, the listing standards for
ETFs would remain unchanged from those that apply under current BOX
rules. In addition to satisfying the aforementioned listing standards
in Section 3(i) of Chapter IV of the BOX Rules, the Gold ETF must be
traded on a national securities exchange and must be defined as an
``NMS stock'' under Rule 600 of Regulation NMS. The Gold ETF must also
either: (1) Meet the criteria and guidelines of paragraphs (a) and (b)
under Section 3 of Chapter IV of the BOX Rules (Criteria for Underlying
Securities); or (2) be available for creation or redemption each
business day from and through the issuing trust, investment company,
commodity pool or other entity in cash or in kind at a price related to
net asset value, and the issuer is obligated to issue the Gold ETF in a
specified aggregate number even if some or all of the investments and/
or cash required to be deposited have not been received by the issuer,
subject to the condition that the person obligated to deposit the
investment assets has undertaken to deliver them as soon as possible
and such undertaking is secured by the delivery and maintenance of
collateral consisting of cash or cash equivalents satisfactory to the
issuer of the Gold ETF, all as described in the Gold ETF's prospectus.
The Exchange proposes that the current applicable continued listing
standards for options on ETFs would apply to options on the SPDR
[supreg] Gold Trust. Specifically, as set forth in Section 4(h) of
Chapter IV of the BOX Rules, the Gold ETF approved for options trading
will not be deemed to meet the requirements for continued approval, and
the Exchange will not open for trading any additional series of options
contracts if the Gold ETF ceases to be an ``NMS stock,'' or the Gold
ETF is delisted, halted or suspended from trading on its primary market
or if any of the following circumstances occur: (1) Following the
initial twelve-month period beginning upon the commencement of trading
of the Gold ETF, there are fewer than 50 record and/or beneficial
holders of the Gold ETF for 30 or more consecutive trading days; (2)
[[Page 40885]]
the value of the index or portfolio of securities or portfolio of
commodities including commodity futures contracts, options on commodity
futures contracts, swaps, forward contracts, and/or options on physical
commodities, on which the Gold ETF is based is no longer calculated or
available; or (3) such other event occurs or condition exists that in
the opinion of the Exchange makes further dealing in such options on
the Exchange inadvisable.
The Exchange represents that its surveillance procedures applicable
to trading in options on the Gold ETF will be similar to those
applicable to all other options on ETFs currently traded on BOX.
Further, the Exchange may obtain trading information via the
Intermarket Surveillance Group (``ISG'') from other exchanges who are
members or affiliates of the ISG, including, but not limited to, the
New York Mercantile Exchange, Inc., related to any financial
instrument(s) traded on that exchange that is based, in whole or in
part, upon an interest in, or performance of, gold.
Finally, the listing and trading of options on the Gold ETF under
Section 3(i) will not have any effect on the rules pertaining to
position and exercise limits \5\ or margin.\6\
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\5\ See Sections 7 and 9 of Chapter III of the BOX Rules.
\6\ See Section 3 of Chapter XIII of the BOX Rules.
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This proposed rule change is based on filings recently approved by
the Commission.\7\
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\7\ See Securities Exchange Act Release No. 57894 (May 30,
2008), 73 FR 32061 (June 5, 2008) (File Nos. SR-Amex-2008-15; SR-
CBOE-2005-11; SR-ISE-2008-12; SR-NYSEArca-2008-52; and SR-Phlx-2008-
17). See also Securities Exchange Act Release No. 57945 (June 10,
2008), 73 FR 34353 (June 17, 2008) (SR-NASDAQ-2008-051).
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2. Statutory Basis
The Exchange believes that the proposal is consistent with Section
6(b) of the Act,\8\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\9\ in particular, in that it is designed to promote
just and equitable principles of trade, to prevent fraudulent and
manipulative acts, 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. Specifically, the
Exchange believes that amending the BOX Rules to accommodate the
listing and trading of options on the Gold ETF will benefit investors
by providing them with greater risk management tools.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6)
thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 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 requests that the Commission waive
the 30-day operative delay so that the Exchange can list and trade
options on the Gold ETF immediately. The Commission believes that
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest to permit the listing and trading of
options on the SPDR Gold Trust without further delay.\12\ The
Commission notes the proposal is substantively identical to proposals
that were recently approved by the Commission, and does not raise any
new regulatory issues.\13\ For these reasons, the Commission designates
the proposed rule change as operative upon filing.
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\12\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
\13\ See supra note 7.
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-BSE-2008-41 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-BSE-2008-41. 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 the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted
[[Page 40886]]
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-BSE-2008-41 and should be submitted on or before August
6, 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. E8-16234 Filed 7-15-08; 8:45 am]
BILLING CODE 8010-01-P
