Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend a Pilot Program That Allows No Minimum Size Order Requirement and Certain Premature Terminations Under the Price Improvement Period Process on the Boston Options Exchange Facility Until November 18, 2008, 43801-43803 [E8-17119]
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jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 73, No. 145 / Monday, July 28, 2008 / Notices
market and a national market system,
and, in general, to protect investors and
the public interest.
Specifically, the Exchange is
proposing, among other things, to
amend Commentary .03 to Amex Rule
27 to eliminate the requirement that
specialists and other members notify the
Exchange in writing before any planned
contact with a potential sponsor or
issuer for the purpose of listing the ETFs
or structured products of such sponsor
or issuer on the Exchange, or within five
business days of unanticipated contact
where discussions regarding the listing
occur. As noted above, under current
Commentary .03, the Exchange will
grant such approval where it appears
that the contact will assist rather than
impede the Exchange’s effort to list the
new ETF or structured product. The
Exchange has stated that it no longer
believes this restriction is necessary
because it is unlikely that such contact
would impede the Exchange’s effort to
list an issuer. The Commission believes
this is a reasonable modification of the
Exchange’s allocation procedures. As
discussed below, representations or
commitments that relate to the
prospective listing still must be
disclosed on the listing application.
The Exchange also proposes to
shorten the disclosure timeframe in
Commentary .03 to require specialists to
only disclose in their applications to be
allocated an ETF or structured product
representations or commitments that
relate to the prospective listing of the
ETF or structured product and that are
made within the six months preceding
the date allocation applications are
solicited with respect to that ETF or
structured product. The Commission
believes that this shorter timeframe
should be sufficient to enable the
Exchange to continue to monitor the
appropriateness of such representations
and/or commitments, without impairing
the allocation process by requiring
specialists to disclose every
representation or commitment that they
have ever made to the issuer or sponsor.
The Commission also notes that ETFs
and structured products are generally
allocated to the specialist very quickly
after approval of the listing application.
However, in the event an ETF or
structured product is not allocated
within five days of the allocation
application, specialists and other
members would be required to update
their applications to report all
representations or commitments since
last reported to the Exchange, which
should help to ensure the integrity of
the allocation process.
In addition, the Exchange proposes a
change to Commentary .03 to clarify that
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18:35 Jul 25, 2008
Jkt 214001
the Exchange may arrange telephone or
in-person interviews on the Exchange’s
premises, if an issuer or sponsor wishes
to interview one or more specialists
once the Allocation Committee has
prepared the list of qualified specialists.
Because ETFs and structured products
are typically allocated to a specialist
within a few days after (and often the
same day as) approval of the issuer’s
application for listing on the Exchange,
the Commission would expect such
interviews to occur infrequently. Should
an interview occur, the Commission
notes that Commentary .03 permits the
Performance Committee to disqualify
any specialist that has made
inappropriate representations.
Finally, in addition to other minor
changes to Rule 27 and Commentaries
.02 and .03 thereto, the proposal amends
Commentary .02 to clarify that the
Exchange’s Performance Committee may
disqualify for allocation any specialist
that is deemed to have made an
inappropriate communication to an
issuer of an equity security that has
been approved for listing on the
Exchange. The Commission notes that
this proposed change would make
Commentary .02 more consistent with
Commentary .03. The Exchange also
proposes adding a provision to
Commentary .02 that would prohibit
post-interview contacts between
specialists and issuers and provide a
means for issuers to obtain further
information from the specialists through
the Exchange’s Equity Sales Group. The
Commission believes that these
proposed changes to Commentary .02
are reasonable modifications of, and
should further the public interest by
helping to promote the integrity of, the
allocation process.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,7 that the
proposed rule change (SR–Amex–2008–
44) is approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–17141 Filed 7–25–08; 8:45 am]
BILLING CODE 8010–01–P
PO 00000
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58195; File No. SR–BSE–
2008–39]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Extend a
Pilot Program That Allows No
Minimum Size Order Requirement and
Certain Premature Terminations Under
the Price Improvement Period Process
on the Boston Options Exchange
Facility Until November 18, 2008
July 18, 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 18,
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 self-regulatory organization. The
Exchange filed the proposed rule change
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
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Supplementary Material to section 18
(The Price Improvement Period ‘‘PIP’’)
of Chapter V of the Rules of the Boston
Options Exchange Group, LLC (‘‘BOX’’)
to extend a pilot program that permits
BOX to have no minimum size
requirement for orders entered into the
PIP and under certain circumstances
permits the premature termination of
the PIP process (‘‘PIP Pilot Program’’).
The text of the proposed rule change is
available on the BSE’s Web site:
https://www.bostonstock.com, 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
self-regulatory organization included
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
7 15
8 17
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
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Federal Register / Vol. 73, No. 145 / Monday, July 28, 2008 / Notices
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 self-regulatory organization 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
The purpose of the proposed rule
change is to extend the PIP Pilot
Program under the BOX Rules for four
(4) additional months. The PIP Pilot
Program allows BOX to have no
minimum size requirement for orders
entered into the PIP process and under
certain circumstances permits the
premature termination of the PIP
process.5 The proposed rule change
retains the text of Supplementary
Material .01 to section 18 of Chapter V
of the BOX Rules and seeks to extend
the operation of the PIP Pilot Program
until November 18, 2008.
The Exchange notes that the PIP Pilot
Program provides small customer orders
with benefits not available under the
rules of some other exchanges. One of
the important factors of the PIP Pilot
Program is that it guarantees
Participants the right to trade with their
customer orders that are less than 50
contracts. In particular, any order
entered into the PIP is guaranteed an
execution at the end of the auction at a
price at least one penny better than the
national best bid or offer.
In further support of this proposed
rule change, and as required by the
Original PIP Pilot Program Approval
Order, the Exchange represents that it
has been submitting to the Commission
a monthly PIP Pilot Program Report,
offering detailed data from, and analysis
of, the PIP Pilot Program.
To aid the Commission in its
evaluation of the PIP Pilot Program, BSE
5 The Pilot Program is currently set to expire on
July 18, 2008. See Securities Exchange Act Release
No. 55999 (July 2, 2007), 72 FR 37549 (July 10,
2007) (SR–BSE–2007–27); see also Securities
Exchange Act Release No. 54066 (June 29, 2006), 71
FR 38434 (July 6, 2006) (SR–BSE–2006–24); see also
Securities Exchange Act Release No. 52149 (July 28,
2005), 70 FR 44704 (August 3, 2005) (SR–BSE–
2005–22); see also Securities Exchange Act Release
No. 49068 (January 13, 2004), 69 FR 2775 (January
20, 2004) (SR–BSE–2002–15) (‘‘Original PIP Pilot
Program Approval Order’’). See also Securities
Exchange Act Release No. 51821 (June 10, 2005), 70
FR 35143 (June 16, 2005) (SR–BSE–2004–51) (Order
approving, among other things, under certain
circumstances the premature termination of a PIP
process).
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18:35 Jul 25, 2008
Jkt 214001
represents that BOX will provide the
following additional information each
month:
(1) The number of orders of 50
contracts or greater entered into the PIP
auction;
(2) The percentage of all orders of 50
contracts or greater sent to BOX that are
entered into BOX’s PIP auction;
(3) The spread in the option, at the
time an order of 50 contracts or greater
is submitted to the PIP auction;
(4) For PIP trades for orders of fewer
than 50 contracts, the percentage
executed at the National Best Bid or
Offer (‘‘NBBO’’) plus $.01, plus $.02,
plus $.03, etc.;
(5) For PIP trades for orders of 50
contracts or greater, the percentage
executed at the NBBO plus $.01, plus
$.02, plus $.03, etc.;
(6) The number of orders submitted
by Order Flow Providers (‘‘OFPs’’) when
the spread was $.05, $.10, $.15, etc. For
each spread, BOX will specify the
percentage of contracts in orders of
fewer than 50 contracts submitted to
BOX’s PIP that were traded by: (a) The
OFP that submitted the order to the PIP;
(b) BOX Market Makers assigned to the
class; (c) other BOX Participants; (d)
Public Customer Orders (including
Customer PIP Orders (‘‘CPOs’’)); and (e)
unrelated orders (orders in standard
increments entered during PIP). For
each spread BOX will also specify the
percentage of contracts in orders of 50
contracts or greater submitted to BOX’s
PIP that were traded by: (a) the OFP that
submitted the order to the PIP; (b) BOX
Market Makers assigned to the class; (c)
other BOX Participants; (d) Public
Customer Orders (including CPOs); and
(e) unrelated orders (orders in standard
increments entered during PIP);
(7) For the first Wednesday of each
month: (a) The total number of PIP
auctions on that date; (b) the number of
PIP auctions where the order submitted
to the PIP was fewer than 50 contracts;
(c) the number of PIP auctions where
the order submitted to the PIP was 50
contracts or greater; (d) the number of
PIP auctions (for orders of fewer than 50
contracts) with 0 participants (excluding
the initiating participant), 1 participant
(excluding the initiating participant), 2
participants (excluding the initiating
participant), 3 participants (excluding
the initiating participant), 4 participants
(excluding the initiating participant),
etc., and (e) the number of PIP auctions
(for orders of 50 contracts or greater)
with 0 participants (excluding the
initiating participant), 1 participant
(excluding the initiating participant), 2
participants (excluding the initiating
participant), 3 participants (excluding
the initiating participant), 4 participants
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(excluding the initiating participant),
etc.; and
(8) For the third Wednesday of each
month: (a) The total number of PIP
auctions on that date; (b) the number of
PIP auctions where the order submitted
to the PIP was fewer than 50 contracts;
(c) the number of PIP auctions where
the order submitted to the PIP was 50
contracts or greater; (d) the number of
PIP auctions (for orders of fewer than 50
contracts) with 0 participants (excluding
the initiating participant), 1 participant
(excluding the initiating participant), 2
participants (excluding the initiating
participant), 3 participants (excluding
the initiating participant), 4 participants
(excluding the initiating participant),
etc., and (e) the number of PIP auctions
(for orders of 50 contracts or greater)
with 0 participants (excluding the
initiating participant), 1 participant
(excluding the initiating participant), 2
participants (excluding the initiating
participant), 3 participants (excluding
the initiating participant), 4 participants
(excluding the initiating participant),
etc.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of section 6(b) of the Act,6
in general, and section 6(b)(5) of the
Act,7 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 the data demonstrates that there is
sufficient investor interest and demand
to extend the PIP Pilot Program for an
additional four (4) months. The
Exchange represents that the Pilot
Program is designed to provide
investors with real and significant price
improvement regardless of the size of
the order.
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 not
necessary or appropriate in furtherance
of the purposes of the Act.
6 15
7 15
E:\FR\FM\28JYN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
28JYN1
Federal Register / Vol. 73, No. 145 / Monday, July 28, 2008 / Notices
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) 8 of the Act and Rule
19b–4(f)(6) thereunder.9
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 requests that the Commission
waive the 30-day operative delay, which
would make the rule change operative
upon filing. The Commission believes
that waiving the 30-day operative delay
is consistent with the protection of
investors and the public interest
because such waiver will allow the PIP
pilot program to continue without
interruption.10 Accordingly, the
Commission designates the proposed
rule change operative upon filing with
the Commission.11
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.
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
10 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
11 As required under Rule 19b–4(f)(6)(iii), the
Exchange provided 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 the filing of the proposed rule
change.
jlentini on PROD1PC65 with NOTICES
9 17
VerDate Aug<31>2005
18:35 Jul 25, 2008
Jkt 214001
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–2008–39 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–2008–39. 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
Number SR–BSE–2008–39 and should
be submitted on or before August 18,
2008.
PO 00000
Frm 00129
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43803
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–17119 Filed 7–25–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58196; File No. SR–CBOE–
2008–76]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend Two Pilot
Programs Related to the Exchange’s
Automated Improvement Mechanism
Until July 18, 2009
July 18, 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 17,
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 prepared by the Exchange.
The Exchange filed the proposal as a
‘‘non-controversial’’ proposed rule
change pursuant to 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
CBOE proposes to extend two pilot
programs related to the Exchange’s
Automated Improvement Mechanism
(‘‘AIM’’) for one year, until July 18,
2009. The text of the proposed rule
change is available on the Exchange’s
Web site (https://www.cboe.com), at the
Exchange’s Office of the Secretary, and
at the Commission’s Public Reference
Room.
12 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
E:\FR\FM\28JYN1.SGM
28JYN1
]]>Agencies
[Federal Register Volume 73, Number 145 (Monday, July 28, 2008)]
[Notices]
[Pages 43801-43803]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-17119]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58195; File No. SR-BSE-2008-39]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Extend a Pilot Program That Allows No Minimum Size Order Requirement
and Certain Premature Terminations Under the Price Improvement Period
Process on the Boston Options Exchange Facility Until November 18, 2008
July 18, 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 18, 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 self-regulatory
organization. The Exchange filed the proposed rule change 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 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 the Supplementary Material to
section 18 (The Price Improvement Period ``PIP'') of Chapter V of the
Rules of the Boston Options Exchange Group, LLC (``BOX'') to extend a
pilot program that permits BOX to have no minimum size requirement for
orders entered into the PIP and under certain circumstances permits the
premature termination of the PIP process (``PIP Pilot Program''). The
text of the proposed rule change is available on the BSE's Web site:
https://www.bostonstock.com, 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 self-regulatory organization
included
[[Page 43802]]
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 self-regulatory organization 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 extend the PIP Pilot
Program under the BOX Rules for four (4) additional months. The PIP
Pilot Program allows BOX to have no minimum size requirement for orders
entered into the PIP process and under certain circumstances permits
the premature termination of the PIP process.\5\ The proposed rule
change retains the text of Supplementary Material .01 to section 18 of
Chapter V of the BOX Rules and seeks to extend the operation of the PIP
Pilot Program until November 18, 2008.
---------------------------------------------------------------------------
\5\ The Pilot Program is currently set to expire on July 18,
2008. See Securities Exchange Act Release No. 55999 (July 2, 2007),
72 FR 37549 (July 10, 2007) (SR-BSE-2007-27); see also Securities
Exchange Act Release No. 54066 (June 29, 2006), 71 FR 38434 (July 6,
2006) (SR-BSE-2006-24); see also Securities Exchange Act Release No.
52149 (July 28, 2005), 70 FR 44704 (August 3, 2005) (SR-BSE-2005-
22); see also Securities Exchange Act Release No. 49068 (January 13,
2004), 69 FR 2775 (January 20, 2004) (SR-BSE-2002-15) (``Original
PIP Pilot Program Approval Order''). See also Securities Exchange
Act Release No. 51821 (June 10, 2005), 70 FR 35143 (June 16, 2005)
(SR-BSE-2004-51) (Order approving, among other things, under certain
circumstances the premature termination of a PIP process).
---------------------------------------------------------------------------
The Exchange notes that the PIP Pilot Program provides small
customer orders with benefits not available under the rules of some
other exchanges. One of the important factors of the PIP Pilot Program
is that it guarantees Participants the right to trade with their
customer orders that are less than 50 contracts. In particular, any
order entered into the PIP is guaranteed an execution at the end of the
auction at a price at least one penny better than the national best bid
or offer.
In further support of this proposed rule change, and as required by
the Original PIP Pilot Program Approval Order, the Exchange represents
that it has been submitting to the Commission a monthly PIP Pilot
Program Report, offering detailed data from, and analysis of, the PIP
Pilot Program.
To aid the Commission in its evaluation of the PIP Pilot Program,
BSE represents that BOX will provide the following additional
information each month:
(1) The number of orders of 50 contracts or greater entered into
the PIP auction;
(2) The percentage of all orders of 50 contracts or greater sent to
BOX that are entered into BOX's PIP auction;
(3) The spread in the option, at the time an order of 50 contracts
or greater is submitted to the PIP auction;
(4) For PIP trades for orders of fewer than 50 contracts, the
percentage executed at the National Best Bid or Offer (``NBBO'') plus
$.01, plus $.02, plus $.03, etc.;
(5) For PIP trades for orders of 50 contracts or greater, the
percentage executed at the NBBO plus $.01, plus $.02, plus $.03, etc.;
(6) The number of orders submitted by Order Flow Providers
(``OFPs'') when the spread was $.05, $.10, $.15, etc. For each spread,
BOX will specify the percentage of contracts in orders of fewer than 50
contracts submitted to BOX's PIP that were traded by: (a) The OFP that
submitted the order to the PIP; (b) BOX Market Makers assigned to the
class; (c) other BOX Participants; (d) Public Customer Orders
(including Customer PIP Orders (``CPOs'')); and (e) unrelated orders
(orders in standard increments entered during PIP). For each spread BOX
will also specify the percentage of contracts in orders of 50 contracts
or greater submitted to BOX's PIP that were traded by: (a) the OFP that
submitted the order to the PIP; (b) BOX Market Makers assigned to the
class; (c) other BOX Participants; (d) Public Customer Orders
(including CPOs); and (e) unrelated orders (orders in standard
increments entered during PIP);
(7) For the first Wednesday of each month: (a) The total number of
PIP auctions on that date; (b) the number of PIP auctions where the
order submitted to the PIP was fewer than 50 contracts; (c) the number
of PIP auctions where the order submitted to the PIP was 50 contracts
or greater; (d) the number of PIP auctions (for orders of fewer than 50
contracts) with 0 participants (excluding the initiating participant),
1 participant (excluding the initiating participant), 2 participants
(excluding the initiating participant), 3 participants (excluding the
initiating participant), 4 participants (excluding the initiating
participant), etc., and (e) the number of PIP auctions (for orders of
50 contracts or greater) with 0 participants (excluding the initiating
participant), 1 participant (excluding the initiating participant), 2
participants (excluding the initiating participant), 3 participants
(excluding the initiating participant), 4 participants (excluding the
initiating participant), etc.; and
(8) For the third Wednesday of each month: (a) The total number of
PIP auctions on that date; (b) the number of PIP auctions where the
order submitted to the PIP was fewer than 50 contracts; (c) the number
of PIP auctions where the order submitted to the PIP was 50 contracts
or greater; (d) the number of PIP auctions (for orders of fewer than 50
contracts) with 0 participants (excluding the initiating participant),
1 participant (excluding the initiating participant), 2 participants
(excluding the initiating participant), 3 participants (excluding the
initiating participant), 4 participants (excluding the initiating
participant), etc., and (e) the number of PIP auctions (for orders of
50 contracts or greater) with 0 participants (excluding the initiating
participant), 1 participant (excluding the initiating participant), 2
participants (excluding the initiating participant), 3 participants
(excluding the initiating participant), 4 participants (excluding the
initiating participant), etc.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of section 6(b) of the Act,\6\ in general, and section
6(b)(5) of the Act,\7\ 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 the data demonstrates that there is sufficient investor interest
and demand to extend the PIP Pilot Program for an additional four (4)
months. The Exchange represents that the Pilot Program is designed to
provide investors with real and significant price improvement
regardless of the size of the order.
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\6\ 15 U.S.C. 78f(b).
\7\ 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 not necessary or appropriate in
furtherance of the purposes of the Act.
[[Page 43803]]
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) \8\ of the Act and Rule 19b-4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
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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 requests that the
Commission waive the 30-day operative delay, which would make the rule
change operative upon filing. The Commission believes that waiving the
30-day operative delay is consistent with the protection of investors
and the public interest because such waiver will allow the PIP pilot
program to continue without interruption.\10\ Accordingly, the
Commission designates the proposed rule change operative upon filing
with the Commission.\11\
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\10\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
\11\ As required under Rule 19b-4(f)(6)(iii), the Exchange
provided 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 the filing of the proposed rule change.
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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 rule-comments@sec.gov. Please include
File Number SR-BSE-2008-39 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-2008-39. 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 Number SR-BSE-2008-39 and should be
submitted on or before August 18, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-17119 Filed 7-25-08; 8:45 am]
BILLING CODE 8010-01-P
