Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Adopting a New Order Type, 50379-50380 [E8-19785]
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Federal Register / Vol. 73, No. 166 / Tuesday, August 26, 2008 / Notices
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CBOE–2008–83. 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, 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 without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CBOE–
2008–83 and should be submitted on or
before September 16, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–19706 Filed 8–25–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
sroberts on PROD1PC76 with NOTICES
[Release No. 34–58394; File No. SR–CBOE–
2008–85]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Adopting a New Order
Type
August 20, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
15 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
00:53 Aug 26, 2008
Jkt 214001
50379
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on August
19, 2008, the Chicago Board Options
Exchange, Incorporated (the ‘‘Exchange’’
or ‘‘CBOE’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
substantially prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
attributable order-type may initially
only be available in connection with
certain Exchange auction processes like
the Hybrid Agency Liaison system
which ‘‘flashes’’ marketable orders for
price improvement executions before
those orders are routed to another
market center pursuant to the Options
Linkage Plan. This proposal is
responsive to requests by Exchange
users who believe that enhanced
executions may be obtained if firm ID
information is allowed on orders (on a
voluntary basis).
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify
Rule 6.53 (Certain Types of Orders
Defined) to allow for the submission of
attributable orders. The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.org/legal), at the Office of the
Secretary, CBOE and at the
Commission’s Public Reference Room.
2. Statutory Basis
Since this proposal allows for greater
customization by providing users with
an additional order type, the Exchange
believes that the proposal is consistent
with the Act 4 and the rules and
regulations thereunder and, in
particular, the requirements of Section
6(b) of the Act.5 Specifically, the
Exchange believes the proposal is
consistent with the Section 6(b)(5) 6
requirements that the rules of an
exchange be designed to promote just
and equitable principles of trade and to
remove impediments to and to perfect
the mechanism for a free and open
market and a national market system.
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
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 those 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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to modify
Rule 6.53 (Certain Types of Orders
Defined) to allow for the submission of
attributable orders.3 These orders allow
users to voluntarily display their firm
IDs on the orders. The NASDAQ
Options Market, LLC (‘‘NOM’’) currently
allows its participants to submit
attributable orders (See NOM Chapter
VI, Section (1)(d)(1)). As proposed, the
Exchange may limit the systems/
processes for which attributable orders
will be available. For example, the
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will impose any
burden on competition 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 neither solicited nor
received comments on the proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change is filed for
immediate effectiveness pursuant to
Section 19(b)(3)(A) 7 of the Act and Rule
19b–4(f)(6) 8 thereunder because it
effects a change that (i) Does not
significantly affect the protection of
investors or the public interest; (ii) does
not impose any significant burden on
competition; and (iii) by its terms, does
not become operative for 30 days after
the date of the filing, or such shorter
time as the Commission may designate
if consistent with the protection of
1 15
4 15
2 17
5 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 A Firm ID is a 1–4 character identification code
(letters and /or numbers). Each CBOE member firm
may establish its own unique Firm ID.
PO 00000
Frm 00081
Fmt 4703
Sfmt 4703
U.S.C. 78s(b)(1).
U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
7 15 U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(6).
C:\FR\FM\26AUN1.SGM
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50380
Federal Register / Vol. 73, No. 166 / Tuesday, August 26, 2008 / Notices
investors and the public interest. 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.
The proposal may assist investors by
allowing participants the benefits of
attributable orders. Additionally, the
Exchange provided the Commission
with written notice of its intent to file
the proposal, along with a brief
description and text of the proposal,
prior to the date of the filing of the
proposal.
For the foregoing reasons, this rule
filing qualifies for immediate
effectiveness as a ‘‘non-controversial’’
rule change under paragraph (f)(6) of
Rule 19b–4 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:
sroberts on PROD1PC76 with NOTICES
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–CBOE–2008–85 on the
subject line.
available for inspection and copying in
the Commission’s Public Reference
Room, 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 without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CBOE–
2008–85 and should be submitted on or
before September 16, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–19785 Filed 8–25–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58386; File No. SR–
NASDAQ–2007–067]
Self-Regulatory Organizations; the
NASDAQ Stock Market LLC; Order
Granting Approval of Proposed Rule
Change as Modified by Amendment
No. 1 To Establish an Imbalance Cross
August 19, 2008.
I. Introduction
On July 18, 2007, The NASDAQ Stock
Market LLC (‘‘Nasdaq’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
Paper Comments
19(b)(1) of the Securities Exchange Act
• Send paper comments in triplicate
of 1934 (‘‘Act’’) 1 and Rule 19b–4
to Secretary, Securities and Exchange
thereunder,2 a proposed rule change to
Commission, 100 F Street, NE.,
establish the ‘‘Imbalance Cross’’ on a
Washington, DC 20549–1090.
pilot basis. The proposed rule change
All submissions should refer to File
was published for comment in the
Number SR–CBOE–2008–85. This file
Federal Register on April 8, 2008.3 No
number should be included on the
subject line if e-mail is used. To help the comments were received on the
proposed rule change. On August 13,
Commission process and review your
2008, Nasdaq filed Amendment No. 1 to
comments more efficiently, please use
only one method. The Commission will the proposed rule change to make
post all comments on the Commission’s certain technical, non-substantive
modifications to the original rule filing.
Internet Web site (https://www.sec.gov/
This order approves the proposed rule
rules/sro.shtml). Copies of the
change as amended.
submission, all subsequent
amendments, all written statements
II. Description of the Proposal
with respect to the proposed rule
Nasdaq proposes to implement for a
change that are filed with the
one-year pilot the Imbalance Cross, a
Commission, and all written
system enhancement which will
communications relating to the
proposed rule change between the
9 17 CFR 200.30–3(a)(12).
Commission and any person, other than
1 15 U.S.C. 78s(b)(1).
those that may be withheld from the
2 17 CFR 240.19b–4.
public in accordance with the
3 See Securities Exchange Act Release No. 57595
(April 1, 2008), 73 FR 19118 (‘‘Original Filing’’).
provisions of 5 U.S.C. 552, will be
VerDate Aug<31>2005
00:53 Aug 26, 2008
Jkt 214001
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
automatically suspend trading in
Nasdaq-listed securities that are the
subject of abrupt and significant intraday price movements. The Imbalance
Cross will be fully automated, be based
on objective, quantitative criteria, and
be triggered automatically when the
execution price of a Nasdaq-listed
security moves more than a fixed
amount away from a pre-established
‘‘triggering price’’ for that security. The
Triggering Price for each security will be
the price of any execution by the System
in that security within the previous 30
seconds. For each Nasdaq security, the
System will continually compare the
price of each execution against the
prices of all executions in that security
over the 30 seconds.
As the System compares current
executions against executions occurring
in the previous 30 seconds, it will
determine whether the current
execution price is outside of a
‘‘threshold range’’ for that security. The
Threshold Range for each security will
be based upon the current execution
price for that security and will vary by
price. Specifically, for per-share
execution prices of $1.75 or less, the
Threshold Range will be 15 percent; for
execution prices over $1.75 and up to
$25, the Threshold Range will be 10
percent; for execution prices over $25
and up to $50, the Threshold Range will
be five percent; and for execution prices
over $50, the Threshold Range will be
three percent.
If the execution price of a trade in a
Nasdaq security exceeds the Threshold
Range from the Triggering Price, the
System will automatically trigger the
Imbalance Cross.4 When that occurs, the
System will cease executing trades in
that security for a 60-second ‘‘Display
Only Period.’’ During that 60-second
Display Only Period, the System will
maintain all current quotes and orders
and continue to accept new quotes and
orders in that Security. The System will
disseminate an Order Imbalance
Indicator every 5 seconds.
Unlike a trading halt pursuant to
Nasdaq Rule 4120, the Imbalance Cross
will not be considered a regulatory halt
and, therefore, it will not trigger a
marketwide trading halt under Section
X of the Nasdaq UTP Plan. As a result,
other markets will be permitted to
continue trading a Nasdaq stock that is
undergoing a Market Re-Opening on
Nasdaq. During the Imbalance Cross,
Nasdaq’s quotations will be marked
‘‘non-firm,’’ signaling to other markets
that quotes and orders routed to Nasdaq
4 For example, for a security trading at $50.00, if
a trade occurs at $42.50 or below or 57.50 or above
it will trigger the Imbalance Cross.
C:\FR\FM\26AUN1.SGM
26AUN1
]]>Agencies
[Federal Register Volume 73, Number 166 (Tuesday, August 26, 2008)]
[Notices]
[Pages 50379-50380]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-19785]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58394; File No. SR-CBOE-2008-85]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Adopting a New Order Type
August 20, 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 August 19, 2008, the Chicago Board Options Exchange, Incorporated
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been substantially
prepared by the Exchange. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to modify Rule 6.53 (Certain Types of Orders
Defined) to allow for the submission of attributable orders. The text
of the proposed rule change is available on the Exchange's Web site
(https://www.cboe.org/legal), at the Office of the Secretary, CBOE 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 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 those 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 parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to modify Rule 6.53 (Certain Types of Orders
Defined) to allow for the submission of attributable orders.\3\ These
orders allow users to voluntarily display their firm IDs on the orders.
The NASDAQ Options Market, LLC (``NOM'') currently allows its
participants to submit attributable orders (See NOM Chapter VI, Section
(1)(d)(1)). As proposed, the Exchange may limit the systems/processes
for which attributable orders will be available. For example, the
attributable order-type may initially only be available in connection
with certain Exchange auction processes like the Hybrid Agency Liaison
system which ``flashes'' marketable orders for price improvement
executions before those orders are routed to another market center
pursuant to the Options Linkage Plan. This proposal is responsive to
requests by Exchange users who believe that enhanced executions may be
obtained if firm ID information is allowed on orders (on a voluntary
basis).
---------------------------------------------------------------------------
\3\ A Firm ID is a 1-4 character identification code (letters
and /or numbers). Each CBOE member firm may establish its own unique
Firm ID.
---------------------------------------------------------------------------
2. Statutory Basis
Since this proposal allows for greater customization by providing
users with an additional order type, the Exchange believes that the
proposal is consistent with the Act \4\ and the rules and regulations
thereunder and, in particular, the requirements of Section 6(b) of the
Act.\5\ Specifically, the Exchange believes the proposal is consistent
with the Section 6(b)(5) \6\ requirements that the rules of an exchange
be designed to promote just and equitable principles of trade and to
remove impediments to and to perfect the mechanism for a free and open
market and a national market system.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(1).
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE does not believe that the proposed rule change will impose any
burden on competition 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 neither solicited nor received comments on the
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change is filed for immediate effectiveness
pursuant to Section 19(b)(3)(A) \7\ of the Act and Rule 19b-4(f)(6) \8\
thereunder because it effects a change that (i) Does not significantly
affect the protection of investors or the public interest; (ii) does
not impose any significant burden on competition; and (iii) by its
terms, does not become operative for 30 days after the date of the
filing, or such shorter time as the Commission may designate if
consistent with the protection of
[[Page 50380]]
investors and the public interest. 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
The proposal may assist investors by allowing participants the
benefits of attributable orders. Additionally, the Exchange provided
the Commission with written notice of its intent to file the proposal,
along with a brief description and text of the proposal, prior to the
date of the filing of the proposal.
For the foregoing reasons, this rule filing qualifies for immediate
effectiveness as a ``non-controversial'' rule change under paragraph
(f)(6) of Rule 19b-4 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-CBOE-2008-85 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2008-85. 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, 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
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-CBOE-2008-85 and should be submitted on or before
September 16, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Florence E. Harmon,
Acting Secretary.
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
[FR Doc. E8-19785 Filed 8-25-08; 8:45 am]
BILLING CODE 8010-01-P
