Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Immediately Add Two New VIX Option Series Within Five Days of Expiration, 63750-63752 [E8-25538]
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63750
Federal Register / Vol. 73, No. 208 / Monday, October 27, 2008 / Notices
contract, it believes it should have the
flexibility to change the minimum size
requirement on a class by class basis
depending on market conditions and the
trading and liquidity in a particular
option class and its underlying security.
CBOE notes that the minimum
quotation size requirement for marketmakers on NYSEArca and the Nasdaq
Options Market is only one contract.
(See NYSEArca Rule 6.37B and Nasdaq
Options Market Rule Section 6(a).) As a
result, CBOE believes the proposed rule
change is based on and similar to the
rules of other options exchanges.
CBOE also proposes to make a
technical change to Rule 6.2B,
Interpretation .03 to delete the reference
to RMM, which CBOE previously
deleted from its rules.
2. Statutory Basis
The proposed rule change would
permit the Exchange to set a minimum
quotation size requirement on a class by
class basis, provided the minimum size
is at least one contract. CBOE believes
that this flexibility will enable the
Exchange to take into consideration
market conditions and the trading and
liquidity in a particular option class and
its underlying security. As a result, the
Exchange believes the proposed rule
change is consistent with the Securities
Exchange Act of 1934 and the rules and
regulations under the Act applicable to
a national securities exchange and, in
particular, the requirements of Section
6(b) of the Act.7 Specifically, the
Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) Act 8 requirements that the rules
of an exchange be designed to promote
just and equitable principles of trade, to
prevent fraudulent and manipulative
acts and, in general, to protect investors
and the public interest.
mstockstill on PROD1PC66 with NOTICES
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
7 15
U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
VerDate Aug<31>2005
17:13 Oct 24, 2008
Jkt 217001
Because the foregoing rule does not (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
for 30 days from the date on which it
was filed, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, provided that the selfregulatory organization has given the
Commission written notice of its intent
to file 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 proposed rule change
has become effective pursuant to
Section 19(b)(3)(A) of the Act 9 and Rule
19b–4(f)(6) thereunder.10 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
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of the filing also will be available
for inspection and copying at the
principal office of the Exchange. All
comments received will be posted
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–2008–107 and
should be submitted on or before
November 17, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–25537 Filed 10–24–08; 8:45 am]
• 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–2008–107 on the
subject line.
BILLING CODE 8011–01–P
Paper Comments
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange neither solicited nor
received comments on the proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Immediately Add Two
New VIX Option Series Within Five
Days of Expiration
• 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–2008–107. This file
9 15
U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b4(f)(6)(iii) under the Act requires that a selfregulatory organization submit to the Commission
written notice of its intent to file the proposed rule
change, along with a brief description and text of
the proposed rule change, at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this notice
requirement.
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58829; File No. SR–CBOE–
2008–108]
October 21, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
16, 2008, the Chicago Board Options
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 73, No. 208 / Monday, October 27, 2008 / Notices
Exchange, Incorporated (the ‘‘Exchange’’
or ‘‘CBOE’’) filed with the Securities
and Exchange Commission (the
‘‘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 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 is seeking to immediately list
two new series of CBOE Volatility Index
(‘‘VIX’’) options prior to expiration next
Wednesday, October 22, 2008,
notwithstanding Interpretation and
Policy .01(c) to Rule 24.9, Terms of
Index Option Contracts. The Exchange
is not proposing any rule text changes.
Although the proposed rule change
would not amend the text of Rule
24.9.01(c), the proposed change would
have the effect of permitting the
Exchange to immediately add two new
series of VIX options within five
business days prior to VIX expiration on
Wednesday, October 22, 2008.
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 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.
mstockstill on PROD1PC66 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to allow the Exchange to
immediately list two new series of VIX
options prior to expiration next
Wednesday, October 22, 2008.
The Exchange notes the exceptional
market circumstances giving rise to this
limited request relate only to VIX
options. The Exchange states that this
3 15
4 17
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
VerDate Aug<31>2005
17:13 Oct 24, 2008
request will facilitate the functioning of
the Exchange’s market and will not
harm investors or the public interest.
VIX options are a unique product traded
only at CBOE and unprecedented
market volatility has caused the
Exchange to respond to requests from
market participants to offer the limited
request sought by this proposal.
Interpretation and Policy .01(c) to
Rule 24.9 provides, ‘‘[n]ew series of
index option contracts may be added up
to the fifth business day prior to
expiration.’’ Under this Rule 24.9.01(c),
the last day for the Exchange to add new
series of expiring October VIX option
was Wednesday, October 15, 2008.
However, given the current
extraordinary market conditions and
considerable market volatility, the
Exchange has received user requests to
add two new additional VIX option
series—110 and 120 strikes expiring
next Wednesday, October 22, 2008. The
Exchange believes that these requests
are reasonable and will allow for more
efficient risk management. Specifically,
liquidity providers are selling the 100
October 2008 VIX option contracts
without the ability to hedge those
positions with an option having a higher
strike. Currently, the highest strike
listed for expiring October 2008 VIX
options is 100. In addition, the
Exchange believes that because of the
recent volatility in the market, the
addition of the two VIX option series
will help prepare the market in the
event there are large shifts in the time
remaining until expiration. On the day
of this filing, the VIX level reached 81.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements provided under
Section 6(b)(5) 5 of the Act, that the
rules of an exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts and, in general, to
protect investors and the public interest.
The addition of the two requested VIX
option series will facilitate the
functioning of the Exchange’s market by
allowing for more efficient risk
management and will not harm
investors or the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will impose any
burden on competition not necessary or
appropriate in furtherance of the
purposes of the Act.
5 15
Jkt 217001
PO 00000
U.S.C. 78(f)(b)(5).
Frm 00079
Fmt 4703
Sfmt 4703
63751
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule does not:
(1) Significantly affect the protection of
investors or the public interest; (2)
impose any significant burden on
competition; and (3) become operative
for 30 days after the date of this filing,
or such shorter time as the Commission
may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 6 and Rule 19b–4(f)(6) thereunder.7
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.8 However, Rule 19b–
4(f)(6)(iii) 9 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay. 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
Exchange to immediately list the two
new VIX option series prior to
expiration on Wednesday, October 22,
2008.10 In particular, the addition by the
Exchange of these two VIX option series
has been necessitated, in the opinion of
CBOE, by the current extraordinary
market conditions and unusual levels of
volatility. Allowing CBOE to
immediately offer these new series will
allow market participants to efficiently
manage their volatility risk in current
market conditions and will help market
participants prepare for any potential
significant movements in the VIX that
may occur prior to expiration.
6 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 fulfilled this requirement.
8 17 CFR 240.19b–4(f)(6)(iii).
9 Id.
10 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s effect on efficiency,
competition, and capital formation. See 15 U.S.C.
78c(f).
7 17
E:\FR\FM\27OCN1.SGM
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63752
Federal Register / Vol. 73, No. 208 / Monday, October 27, 2008 / Notices
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:
mstockstill on PROD1PC66 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–2008–108 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–2008–108. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of the filing also will be available
for inspection and copying at the
principal office of the Exchange. All
comments received will be posted
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
VerDate Aug<31>2005
17:13 Oct 24, 2008
Jkt 217001
Number SR–CBOE–2008–108 and
should be submitted on or before
November 17, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–25538 Filed 10–24–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58818; File No. 4–569]
Program for Allocation of Regulatory
Responsibilities Pursuant to Rule 17d–
2; Order Approving and Declaring
Effective a Plan for the Allocation of
Regulatory Responsibilities Between
the Financial Industry Regulatory
Authority, Inc. and BATS Exchange,
Inc.
October 20, 2008.
On August 27, 2008, BATS Exchange,
Inc. (‘‘BATS’’) and the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) (together with BATS, the
‘‘Parties’’) filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to section 17(d) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 17d–2 thereunder,2 a
plan for the allocation of regulatory
responsibilities, dated August 25, 2008
(‘‘17d–2 Plan’’ or the ‘‘Plan’’). The Plan
was published for comment on
September 24, 2008.3 The Commission
received no comments on the Plan. This
order approves and declares effective
the Plan.
I. Introduction
Section 19(g)(1) of the Act,4 among
other things, requires every selfregulatory organization (‘‘SRO’’)
registered as either a national securities
exchange or national securities
association to examine for, and enforce
compliance by, its members and persons
associated with its members with the
Act, the rules and regulations
thereunder, and the SRO’s own rules,
unless the SRO is relieved of this
responsibility pursuant to section 17(d)
or section 19(g)(2) of the Act.5 Without
this relief, the statutory obligation of
each individual SRO could result in a
11 17
CFR 200.30–3(a)(12).
U.S.C. 78q(d).
2 17 CFR 240.17d–2.
3 See Securities Exchange Act Release No. 58563
(September 17, 2008), 73 FR 55180.
4 15 U.S.C. 78s(g)(1).
5 15 U.S.C. 78q(d) and 15 U.S.C. 78s(g)(2),
respectively.
1 15
PO 00000
Frm 00080
Fmt 4703
Sfmt 4703
pattern of multiple examinations of
broker-dealers that maintain
memberships in more than one SRO
(‘‘common members’’). Such regulatory
duplication would add unnecessary
expenses for common members and
their SROs.
Section 17(d)(1) of the Act 6 was
intended, in part, to eliminate
unnecessary multiple examinations and
regulatory duplication.7 With respect to
a common member, section 17(d)(1)
authorizes the Commission, by rule or
order, to relieve an SRO of the
responsibility to receive regulatory
reports, to examine for and enforce
compliance with applicable statutes,
rules, and regulations, or to perform
other specified regulatory functions.
To implement section 17(d)(1), the
Commission adopted two rules: Rule
17d–1 and Rule 17d–2 under the Act.8
Rule 17d–1 authorizes the Commission
to name a single SRO as the designated
examining authority (‘‘DEA’’) to
examine common members for
compliance with the financial
responsibility requirements imposed by
the Act, or by Commission or SRO
rules.9 When an SRO has been named as
a common member’s DEA, all other
SROs to which the common member
belongs are relieved of the responsibility
to examine the firm for compliance with
the applicable financial responsibility
rules. On its face, Rule 17d–1 deals only
with an SRO’s obligations to enforce
member compliance with financial
responsibility requirements. Rule 17d–1
does not relieve an SRO from its
obligation to examine a common
member for compliance with its own
rules and provisions of the federal
securities laws governing matters other
than financial responsibility, including
sales practices and trading activities and
practices.
To address regulatory duplication in
these and other areas, the Commission
adopted Rule 17d–2 under the Act.10
Rule 17d–2 permits SROs to propose
joint plans for the allocation of
regulatory responsibilities with respect
to their common members. Under
paragraph (c) of Rule 17d–2, the
Commission may declare such a plan
effective if, after providing for
appropriate notice and comment, it
6 15
U.S.C. 78q(d)(1).
Securities Act Amendments of 1975, Report
of the Senate Committee on Banking, Housing, and
Urban Affairs to Accompany S. 249, S. Rep. No. 94–
75, 94th Cong., 1st Session 32 (1975).
8 17 CFR 240.17d–1 and 17 CFR 240.17d–2,
respectively.
9 See Securities Exchange Act Release No. 12352
(April 20, 1976), 41 FR 18808 (May 7, 1976).
10 See Securities Exchange Act Release No. 12935
(October 28, 1976), 41 FR 49091 (November 8,
1976).
7 See
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]]>Agencies
[Federal Register Volume 73, Number 208 (Monday, October 27, 2008)]
[Notices]
[Pages 63750-63752]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-25538]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58829; File No. SR-CBOE-2008-108]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Immediately Add Two New VIX Option Series Within Five
Days of Expiration
October 21, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on October 16, 2008, the Chicago Board Options
[[Page 63751]]
Exchange, Incorporated (the ``Exchange'' or ``CBOE'') filed with the
Securities and Exchange Commission (the ``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\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE is seeking to immediately list two new series of CBOE
Volatility Index (``VIX'') options prior to expiration next Wednesday,
October 22, 2008, notwithstanding Interpretation and Policy .01(c) to
Rule 24.9, Terms of Index Option Contracts. The Exchange is not
proposing any rule text changes. Although the proposed rule change
would not amend the text of Rule 24.9.01(c), the proposed change would
have the effect of permitting the Exchange to immediately add two new
series of VIX options within five business days prior to VIX expiration
on Wednesday, October 22, 2008.
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 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 purpose of this proposed rule change is to allow the Exchange
to immediately list two new series of VIX options prior to expiration
next Wednesday, October 22, 2008.
The Exchange notes the exceptional market circumstances giving rise
to this limited request relate only to VIX options. The Exchange states
that this request will facilitate the functioning of the Exchange's
market and will not harm investors or the public interest. VIX options
are a unique product traded only at CBOE and unprecedented market
volatility has caused the Exchange to respond to requests from market
participants to offer the limited request sought by this proposal.
Interpretation and Policy .01(c) to Rule 24.9 provides, ``[n]ew
series of index option contracts may be added up to the fifth business
day prior to expiration.'' Under this Rule 24.9.01(c), the last day for
the Exchange to add new series of expiring October VIX option was
Wednesday, October 15, 2008.
However, given the current extraordinary market conditions and
considerable market volatility, the Exchange has received user requests
to add two new additional VIX option series--110 and 120 strikes
expiring next Wednesday, October 22, 2008. The Exchange believes that
these requests are reasonable and will allow for more efficient risk
management. Specifically, liquidity providers are selling the 100
October 2008 VIX option contracts without the ability to hedge those
positions with an option having a higher strike. Currently, the highest
strike listed for expiring October 2008 VIX options is 100. In
addition, the Exchange believes that because of the recent volatility
in the market, the addition of the two VIX option series will help
prepare the market in the event there are large shifts in the time
remaining until expiration. On the day of this filing, the VIX level
reached 81.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirements provided under Section 6(b)(5) \5\ of the Act,
that the rules of an exchange be designed to promote just and equitable
principles of trade, to prevent fraudulent and manipulative acts and,
in general, to protect investors and the public interest. The addition
of the two requested VIX option series will facilitate the functioning
of the Exchange's market by allowing for more efficient risk management
and will not harm investors or the public interest.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78(f)(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
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule does not: (1) Significantly affect the
protection of investors or the public interest; (2) impose any
significant burden on competition; and (3) become operative for 30 days
after the date of this filing, or such shorter time as the Commission
may designate, it has become effective pursuant to Section 19(b)(3)(A)
of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 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 fulfilled this requirement.
---------------------------------------------------------------------------
A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\8\ However,
Rule 19b-4(f)(6)(iii) \9\ permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The Exchange has requested that the Commission
waive the 30-day operative delay. 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
Exchange to immediately list the two new VIX option series prior to
expiration on Wednesday, October 22, 2008.\10\ In particular, the
addition by the Exchange of these two VIX option series has been
necessitated, in the opinion of CBOE, by the current extraordinary
market conditions and unusual levels of volatility. Allowing CBOE to
immediately offer these new series will allow market participants to
efficiently manage their volatility risk in current market conditions
and will help market participants prepare for any potential significant
movements in the VIX that may occur prior to expiration.
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\8\ 17 CFR 240.19b-4(f)(6)(iii).
\9\ Id.
\10\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's effect on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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[[Page 63752]]
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-CBOE-2008-108 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-2008-108. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted 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-2008-108 and should be
submitted on or before November 17, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-25538 Filed 10-24-08; 8:45 am]
BILLING CODE 8011-01-P
