Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Current Pilot Program for Quarterly Options Series on the Boston Options Exchange Facility, 41138-41140 [E8-16348]
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Federal Register / Vol. 73, No. 138 / Thursday, July 17, 2008 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release Nos. 33–8942; 34–58146; File No.
265–24]
Advisory Committee on Improvements
to Financial Reporting
Securities and Exchange
Commission.
ACTION: Notice of Meeting of SEC
Advisory Committee on Improvements
to Financial Reporting.
AGENCY:
SUMMARY: The Securities and Exchange
Commission Advisory Committee on
Improvements to Financial Reporting is
providing notice that it will hold a
public telephone conference meeting on
Thursday, July 31, 2008 beginning at 1
p.m. Members of the public may take
part in the meeting by listening to the
Webcast accessible on the Commission’s
Web site at https://www.sec.gov or by
calling telephone number (888) 285–
4585 and using code number 578070.
Persons needing special
accommodations to take part because of
a disability should notify a contact
person listed below.
The agenda for the meeting includes
adoption of the Committee’s final report
to the Commission. The Committee may
also discuss written statements received
and other matters of concern. The
public is invited to submit written
statements for the meeting, including
any comments on the draft final report
discussed at the Committee’s July 11,
2008 open meeting available at https://
www.sec.gov/about/offices/oca/
acifr.shtml.
Written statements should be
received on or before July 22, 2008.
ADDRESSES: Written statements may be
submitted by any of the following
methods:
DATES:
Electronic Comments
• Use the Commission’s Internet
submission form (https://www.sec.gov/
rules/other.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number 265–24 on the subject line.
mstockstill on PROD1PC66 with NOTICES
Paper Comments
• Send paper statements in triplicate
to Florence E. Harmon, Acting Federal
Advisory Committee Management
Officer, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File No.
265–24. This file number should be
included on the subject line if e-mail is
used. To help us process and review
your statements more efficiently, please
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21:03 Jul 16, 2008
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use only one method. The Commission
staff will post all statements on the
Advisory Committee’s Web site (https://
www.sec.gov/about/offices/oca/
acifr.shtml). Statements and comments
also will be available for public
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.
All statements received will be posted
without change; we do not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly.
FOR FURTHER INFORMATION CONTACT:
James L. Kroeker, Deputy Chief
Accountant, or Shelly C. Luisi, Senior
Associate Chief Accountant, at (202)
551–5300, Office of the Chief
Accountant, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–6561.
SUPPLEMENTARY INFORMATION: In
accordance with Section 10(a) of the
Federal Advisory Committee Act, 5
U.S.C. App. 1, § 10(a), James L. Kroeker,
Designated Federal Officer of the
Committee, has approved publication of
this notice.
Dated: July 11, 2008.
Florence E. Harmon,
Acting Committee Management Officer.
[FR Doc. E8–16351 Filed 7–16–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58131; File No. SR–BSE–
2008–37]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Extend the
Current Pilot Program for Quarterly
Options Series on the Boston Options
Exchange Facility
July 9, 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 8,
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. The Exchange has
designated this proposal as non-
PO 00000
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00113
Fmt 4703
Sfmt 4703
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 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 Exchange is proposing to extend
until July 10, 2009, the current pilot
program applicable to the Quarterly
Options Series (‘‘Pilot Program’’) on the
Boston Options Exchange (‘‘BOX’’)
facility. The text of the proposed rule
change is available on the Exchange’s
Web site (https://www.bostonstock.com),
at the Exchange’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 is proposing to extend
through July 10, 2009, the Pilot Program
on BOX to list options series that expire
at the close of business on the last
business day of a calendar quarter
(‘‘Quarterly Options Series’’).5 The Pilot
Program is currently set to expire on
July 10, 2008. Under the Pilot Program,
BOX may open Quarterly Options Series
on up to five (5) currently listed options
classes that are either index options or
options on exchange traded funds (or
‘‘Exchange-Traded Fund Shares’’).6 BOX
also may list Quarterly Options Series
on any options classes that are selected
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 56086
(July 17, 2007), 72 FR 40182 (July 23, 2007) (SR–
BSE–2007–36).
6 See Section 3 of Chapter IV of the BOX Rules
pertaining to Exchange-Traded Fund Shares.
4 17
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Federal Register / Vol. 73, No. 138 / Thursday, July 17, 2008 / Notices
by other securities exchanges that
employ a similar pilot program under
their respective rules.
The Exchange has selected the
following five options classes to
participate in the Pilot Program: the
Standard & Poor’s Depositary Receipts
(SPY); Powershares QQQ Trust Series
1 (QQQQ); Diamonds Trust Series 1
(DIA); iShares Russell 2000 Index
Fund (IWM); and Select Sector SPDR—
Energy (XLE). The Exchange believes
the Pilot Program has been successful
and well received by its Participants
and the investing public. Thus, the
Exchange proposes to extend the Pilot
Program through July 10, 2009.
In support of this proposed rule
change, and as stipulated in the original
Pilot Program proposal, the Exchange
submitted to the Commission a report
(‘‘BOX Pilot Report’’) under separate
cover, along with a request for
confidential treatment under the
Freedom of Information Act, detailing
the Exchange’s experience with the Pilot
Program.7 The Exchange also submitted,
in an addendum to its Report
(‘‘Addendum’’), data required by the
recent amendment to the Pilot Program
permitting the listing of additional ETF
Quarterly Option Series.8 Specifically,
mstockstill on PROD1PC66 with NOTICES
7 As
set forth in SR–BSE–2007–36, if the
Exchange were to propose an extension, an
expansion, or permanent approval of the Pilot
Program, it would submit, along with any filing
proposing such amendments to the Pilot Program,
a report providing an analysis of the Pilot Program
covering the entire period during which the Pilot
Program was in effect, and would include, at a
minimum: (1) Data and written analysis on the open
interest and trading volume in the classes for which
Quarterly Option Series were opened; (2) an
assessment of the appropriateness of the option
classes selected for the Pilot Program; (3) an
assessment of the impact of the Pilot Program on
the capacity of BOX, OPRA, and 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 Program and how BOX addressed such
problems; (5) any complaints that the Exchange
received during the operation of the Pilot Program
and how BOX addressed them; and (6) any
additional information that would assist in
assessing the operation of the Pilot Program. The
report must be submitted to the Commission at least
sixty (60) days prior to the expiration date of the
Pilot Program.
8 See Securities Exchange Act Release No. 57598
(April 1, 2008), 73 FR 18828 (April 7, 2008) (SR–
BSE–2008–17) (notice of filing and immediate
effectiveness of proposed rule change to amend
Quarterly Options Series pilot program to permit
the listing of additional series). In connection with
any renewal or permanent approval of the Pilot
Program, the Commission required the Exchange to
include in its report an 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
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the BOX Pilot Report contains data and
written analysis regarding the five
options classes included in the Pilot
Program.
The Exchange represents that the
Report and Addendum clearly
demonstrate the extension of the Pilot
Program for one year, through July 10,
2009, is warranted. The Exchange
believes that there is sufficient investor
interest and demand as reflected by
strong trading volume. The Report and
Addendum establish that the Pilot
Program has provided investors with a
flexible and valuable tool to manage risk
exposure, minimize capital outlays, and
the ability to more closely tailor their
investment strategies and decisions to
the movement of the underlying
security. Furthermore, the Exchange has
not detected any material proliferation
of illiquid options series resulting from
the introduction of the Pilot Program.
Finally, the Report and Addendum
establish that the Pilot Program has not
created capacity problems, nor should
the proposed extension have an adverse
impact on capacity.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,9
in general, and Section 6(b)(5) of the
Act,10 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. The Exchange believes
that an extension of the Pilot Program
will result in a continuing benefit to
investors, by allowing them to more
closely tailor their investment decisions,
and will allow the Exchange to further
study investor interest in quarterly
options.
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.
Options Series strikes that were otherwise eligible
for delisting.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
PO 00000
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41139
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
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
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 the
Exchange to continue the existing Pilot
Program 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,
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).
12 17
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Federal Register / Vol. 73, No. 138 / Thursday, July 17, 2008 / Notices
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
mstockstill on PROD1PC66 with NOTICES
• 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–BSE–2008–37 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58127; File No. SR–CBOE–
2008–68]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the CBOE
Fees Schedule
July 9, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
Paper Comments
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on June 30,
to Secretary, Securities and Exchange
2008, the Chicago Board Options
Commission, 100 F Street, NE.,
Exchange, Incorporated (‘‘CBOE’’ or
Washington, DC 20549–1090.
‘‘Exchange’’) filed with the Securities
and Exchange Commission
All submissions should refer to File
(‘‘Commission’’) the proposed rule
Number SR–BSE–2008–37. This file
change as described in Items I, II, and
number should be included on the
III below, which Items have been
subject line if e-mail is used. To help the
prepared by the Exchange. CBOE has
Commission process and review your
designated this proposal as one
comments more efficiently, please use
establishing or changing a due, fee, or
only one method. The Commission will
other charge imposed by CBOE under
post all comments on the Commission’s
Section 19(b)(3)(A)(ii) of the Act 3 and
Internet Web site (https://www.sec.gov/
Rule 19b–4(f)(2) thereunder,4 which
rules/sro.shtml ). Copies of the
renders the proposal effective upon
submission, all subsequent
filing with the Commission. The
amendments, all written statements
Commission is publishing this notice to
with respect to the proposed rule
solicit comments on the proposed rule
change that are filed with the
change from interested persons.
Commission, and all written
communications relating to the
I. Self-Regulatory Organization’s
proposed rule change between the
Statement of the Terms of Substance of
Commission and any person, other than the Proposed Rule Change
those that may be withheld from the
CBOE proposes to amend its Fees
public in accordance with the
Schedule to establish fees for
provisions of 5 U.S.C. 552, will be
transactions in binary options on broadavailable for inspection and copying in
based indexes and to amend its
the Commission’s Public Reference
marketing fee program. The Exchange
Room, 100 F Street, NE., Washington,
also proposes to make a technical
DC 20549, on official business days
amendment by deleting all references to
between the hours of 10 a.m. and 3 p.m. the obsolete term ‘‘RMM’’ from its Fees
Copies of such filing also will be
Schedule. The text of the proposed rule
available for inspection and copying at
change is available at the Exchange, the
the principal office of the Exchange. All Commission’s Public Reference Room,
comments received will be posted
and https://www.cboe.com.
without change; the Commission does
II. Self-Regulatory Organization’s
not edit personal identifying
Statement of the Purpose of, and
information from submissions. You
Statutory Basis for, the Proposed Rule
should submit only information that
you wish to make available publicly. All Change
submissions should refer to File No.
In its filing with the Commission, the
SR–BSE–2008–37 and should be
Exchange included statements
submitted on or before August 7, 2008.
concerning the purpose of, and basis for,
the proposed rule change, and discussed
For the Commission, by the Division of
any comments it received on the
Trading and Markets, pursuant to delegated
proposed rule change. The text of these
authority.14
statements may be examined at the
Florence E. Harmon,
places specified in Item IV below. CBOE
Acting Secretary.
[FR Doc. E8–16348 Filed 7–16–08; 8:45 am]
BILLING CODE 8010–01–P
14 17
21:03 Jul 16, 2008
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
2 17
CFR 200.30–3(a)(12).
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has substantially 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
Establish Transaction Fees for Binary
Options
The Exchange recently received
approval to list and trade binary options
on broad-based indexes, and the
purpose of this rule change is to
establish transaction fees for binary
options on broad-based indexes.5 The
Exchange proposes to extend the
existing fees for transactions in
traditional index options to binary
options on broad-based indexes. To
affect the current proposal, the
Exchange proposes to add a reference to
‘‘binary options’’ in Footnotes 1 and 6
in the CBOE Fees Schedule.
The amount of the transactions fees
for binary options on broad-based
indexes would be as follows:
• $0.20 per contract for MarketMaker, Designated Primary MarketMaker and Remote Market-Maker
transactions;
• $0.20 per contract for member firm
proprietary transactions;
The fees for broker-dealer transactions
are as follows:
• $0.25 per contract for manually
executed transactions other than OEX,
XEO and SPX;
• $0.30 per contract for OEX or XEO;
• $0.40 per contract for SPX;
• $0.45 per contract for electronically
executed transactions other than OEX,
XEO and SPX (i.e., broker-dealer orders
that are automatically executed on the
CBOE Hybrid Trading System); 6
The fees for customer transactions
shall be as follows:
• $0.18 per contract for transactions
other than OEX, XEO, SPX, DXL and
Volatility Indexes;
• $0.30 per contract for OEX or XEO;
• $0.35 per contract for SPX,
premium < $1;
• $0.40 per contract for DXL and
Volatility Indexes;
• $0.45 per contract for SPX,
premium > or = $1;
5 See Securities Exchange Act Release No. 57850
(May 22, 2008), 73 FR 31169 (May 30, 2008) (SR–
CBOE–2006–105).
6 Broker-dealer manual and electronic transaction
fees would apply to broker-dealer orders (orders
with ‘‘B’’ origin code), non-member market-maker
orders (orders with ‘‘N’’ origin code) and orders
from specialists in the underlying security (orders
with ‘‘Y’’ origin code).
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]]>Agencies
[Federal Register Volume 73, Number 138 (Thursday, July 17, 2008)]
[Notices]
[Pages 41138-41140]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-16348]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58131; File No. SR-BSE-2008-37]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Extend the Current Pilot Program for Quarterly Options Series on the
Boston Options Exchange Facility
July 9, 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 8, 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. 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
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
The Exchange is proposing to extend until July 10, 2009, the
current pilot program applicable to the Quarterly Options Series
(``Pilot Program'') on the Boston Options Exchange (``BOX'') facility.
The text of the proposed rule change is available on the Exchange's Web
site (https://www.bostonstock.com), at the Exchange'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 is proposing to extend through July 10, 2009, the
Pilot Program on BOX to list options series that expire at the close of
business on the last business day of a calendar quarter (``Quarterly
Options Series'').\5\ The Pilot Program is currently set to expire on
July 10, 2008. Under the Pilot Program, BOX may open Quarterly Options
Series on up to five (5) currently listed options classes that are
either index options or options on exchange traded funds (or
``Exchange-Traded Fund Shares'').\6\ BOX also may list Quarterly
Options Series on any options classes that are selected
[[Page 41139]]
by other securities exchanges that employ a similar pilot program under
their respective rules.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 56086 (July 17,
2007), 72 FR 40182 (July 23, 2007) (SR-BSE-2007-36).
\6\ See Section 3 of Chapter IV of the BOX Rules pertaining to
Exchange-Traded Fund Shares.
---------------------------------------------------------------------------
The Exchange has selected the following five options classes to
participate in the Pilot Program: the Standard & Poor's Depositary
Receipts[supreg] (SPY); Powershares[supreg] QQQ Trust Series 1 (QQQQ);
Diamonds[supreg] Trust Series 1 (DIA); iShares Russell 2000[supreg]
Index Fund (IWM); and Select Sector SPDR[supreg]--Energy (XLE). The
Exchange believes the Pilot Program has been successful and well
received by its Participants and the investing public. Thus, the
Exchange proposes to extend the Pilot Program through July 10, 2009.
In support of this proposed rule change, and as stipulated in the
original Pilot Program proposal, the Exchange submitted to the
Commission a report (``BOX Pilot Report'') under separate cover, along
with a request for confidential treatment under the Freedom of
Information Act, detailing the Exchange's experience with the Pilot
Program.\7\ The Exchange also submitted, in an addendum to its Report
(``Addendum''), data required by the recent amendment to the Pilot
Program permitting the listing of additional ETF Quarterly Option
Series.\8\ Specifically, the BOX Pilot Report contains data and written
analysis regarding the five options classes included in the Pilot
Program.
---------------------------------------------------------------------------
\7\ As set forth in SR-BSE-2007-36, if the Exchange were to
propose an extension, an expansion, or permanent approval of the
Pilot Program, it would submit, along with any filing proposing such
amendments to the Pilot Program, a report providing an analysis of
the Pilot Program covering the entire period during which the Pilot
Program was in effect, and would include, at a minimum: (1) Data and
written analysis on the open interest and trading volume in the
classes for which Quarterly Option Series were opened; (2) an
assessment of the appropriateness of the option classes selected for
the Pilot Program; (3) an assessment of the impact of the Pilot
Program on the capacity of BOX, OPRA, and 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 Program and how BOX addressed such problems; (5) any
complaints that the Exchange received during the operation of the
Pilot Program and how BOX addressed them; and (6) any additional
information that would assist in assessing the operation of the
Pilot Program. The report must be submitted to the Commission at
least sixty (60) days prior to the expiration date of the Pilot
Program.
\8\ See Securities Exchange Act Release No. 57598 (April 1,
2008), 73 FR 18828 (April 7, 2008) (SR-BSE-2008-17) (notice of
filing and immediate effectiveness of proposed rule change to amend
Quarterly Options Series pilot program to permit the listing of
additional series). In connection with any renewal or permanent
approval of the Pilot Program, the Commission required the Exchange
to include in its report an 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 represents that the Report and Addendum clearly
demonstrate the extension of the Pilot Program for one year, through
July 10, 2009, is warranted. The Exchange believes that there is
sufficient investor interest and demand as reflected by strong trading
volume. The Report and Addendum establish that the Pilot Program has
provided investors with a flexible and valuable tool to manage risk
exposure, minimize capital outlays, and the ability to more closely
tailor their investment strategies and decisions to the movement of the
underlying security. Furthermore, the Exchange has not detected any
material proliferation of illiquid options series resulting from the
introduction of the Pilot Program. Finally, the Report and Addendum
establish that the Pilot Program has not created capacity problems, nor
should the proposed extension have an adverse impact on capacity.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\9\ in general, and Section
6(b)(5) of the Act,\10\ 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. The Exchange
believes that an extension of the Pilot Program will result in a
continuing benefit to investors, by allowing them to more closely
tailor their investment decisions, and will allow the Exchange to
further study investor interest in quarterly options.
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\9\ 15 U.S.C. 78f(b).
\10\ 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
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
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 the Exchange to continue the
existing Pilot Program 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,
[[Page 41140]]
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-BSE-2008-37 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-2008-37. 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-BSE-2008-37 and should be submitted on or
before August 7, 2008.
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\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-16348 Filed 7-16-08; 8:45 am]
BILLING CODE 8010-01-P
