Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Temporarily Increase the Number of Additional Quarterly Option Series in Exchange-Traded Fund Options That May Be Listed, 66083-66085 [E8-26443]
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66083
Federal Register / Vol. 73, No. 216 / Thursday, November 6, 2008 / Notices
necessary or appropriate in the public
interest and consistent with the
protection of investors and the purposes
fairly intended by the policies and
provisions of the Act.
5. Applicants state that the proposed
arrangement would comply with the
provisions of rule 12d1–2 under the Act,
but for the fact that the Applicant Funds
may invest a portion of their assets in
Other Investments. Applicants request
an order under section 6(c) of the Act
for an exemption from rule 12d1–2(a) to
allow the Applicant Funds to invest in
Other Investments. Applicants assert
that permitting the Applicant Funds to
invest in Other Investments as described
in the application would not raise any
of the concerns that the requirements of
section 12(d)(1) were designed to
address.
Applicants’ Condition:
Applicants agree that the order
granting the requested relief will be
subject to the following condition:
Applicants will comply with all
provisions of rule 12d1–2 under the Act,
except for paragraph (a)(2) to the extent
that it restricts any Fund from investing
in Other Investments as described in the
application.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–26488 Filed 11–5–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58887; File No. SR–CBOE–
2008–111]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Temporarily Increase
the Number of Additional Quarterly
Option Series in Exchange-Traded
Fund Options That May Be Listed
October 30, 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
29, 2008, the Chicago Board Options
Exchange, Incorporated (‘‘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
The Exchange proposes to amend
Rule 5.5(e), Quarterly Option Series
Pilot Program, to temporarily increase
the number of additional Quarterly
Option Series (‘‘QOS’’) in exchangetraded fund (‘‘ETF’’) options from sixty
(60) to one hundred (100) that may be
added by the Exchange. The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.org/Legal), at the Exchange’s
Office of the Secretary and at the
Commission.
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 temporarily increase the
number of additional QOS in ETF
options from sixty (60) to one hundred
sroberts on PROD1PC70 with NOTICES
ETF
10/27/08
10/13/08
28.69
44.86
80.26
83.95
35.13
56.98
95.03
101.35
QQQQ ......................................................................................................
IWM ..........................................................................................................
DIA ...........................................................................................................
SPY ..........................................................................................................
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Aug<31>2005
19:11 Nov 05, 2008
3 15
4 17
Jkt 217001
PO 00000
(100) that may be added by the
Exchange. To effect this change, the
Exchange is proposing to add new
subparagraph (7) to Rule 5.5(e).
Because of the current, unprecedented
market conditions, the Exchange has
received requests from market
participants to add lower priced strikes
for QOS in the Energy Select Sector
SPDR (‘‘XLE’’), the DIAMONDS Trust,
Series 1 (‘‘DIA’’) and the Standard and
Poor’s Depositary Receipts/SPDRs
(‘‘SPY’’). For example, for December
2008 expiration, there is demand for
strikes (a) ranging from $20 up through
and including $40 for XLE, (b) ranging
from $60 up through and including $75
for DIA, and (c) ranging from $74 up
through and including $85 for SPY.
These strikes are much lower than those
currently listed for which there is open
interest.
However, under current Rule
5.5(e)(4), the Exchange cannot honor
these requests because the maximum
number of additional series, sixty (60),
has already been listed. The Exchange is
therefore seeking to temporarily
increase the number of additional QOS
that may be added to one hundred (100).
The increase of additional series would
be permitted immediately for expiration
months currently listed and for
expiration months added throughout the
last quarter of 2008, including the new
expiration month added after December
2008 expiration. The Exchange believes
that this proposal is reasonable and will
allow for more efficient risk
management. The Exchange believes
this proposal will facilitate the
functioning of the Exchange’s market
and will not harm investors or the
public interest.
The Exchange believes that user
demand and the recent downward price
movements in the underlying ETFs
warrants a temporary increase in the
number of strikes for all QOS in ETF
options. Currently, the Exchange list
QOS in five ETF options: (1) Nasdaq100 Index Tracking Stock (‘‘QQQQ’’); (2)
iShares Russell 2000 Index Fund
(‘‘IWM’’); (3) DIA; (4) SPY; and (5) XLE.
The below chart provides the historical
closing prices of these ETFs over the
past couple of months:
10/6/08
9/30/08
34.86
59.72
99.90
104.72
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
Frm 00074
Fmt 4703
Sfmt 4703
E:\FR\FM\06NON1.SGM
06NON1
38.91
68.00
108.36
115.99
8/29/08
46.12
73.87
115.45
128.79
7/31/08
45.46
71.32
113.70
126.83
66084
Federal Register / Vol. 73, No. 216 / Thursday, November 6, 2008 / Notices
ETF
10/27/08
XLE ..........................................................................................................
The additional series will enable the
Exchange to list in-demand, lower
priced strikes.
It is expected that other options
exchanges that have adopted the QOS
Pilot Program will submit similar
proposals.
The Exchange represents that it has
the necessary systems capacity to
support the new options series that will
result from this proposal. Further, as
proposed, the Exchange notes that these
series would temporarily become part of
the pilot program and will be
considered by the Commission when
the Exchange seeks to renew or make
permanent the pilot program in the
future. In addition, the Exchange states
that in the event that current market
volatility continues, it may seek to
continue (through a rule filing) the time
period during which the additional
series proposed by this filing may be
added.
2. Statutory Basis
Because the current rule proposal is
responsive to the current,
unprecedented market conditions, is
limited in scope as to QOS in ETF
options and as to time, and because the
additional new series can be added
without presenting capacity problems,
the Exchange believes the rule proposal
is consistent with the Act 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.5
Specifically, the Exchange believes that
the proposed rule change is consistent
with the Section 6(b)(5) Act 6
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.
sroberts on PROD1PC70 with NOTICES
B. Self-Regulatory Organization’s
Statement on Burden on Competition
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Aug<31>2005
19:11 Nov 05, 2008
Jkt 217001
40.86
50.55
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
Because the foregoing rule does not:
(i) Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; or (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, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 7 and Rule
19b–4(f)(6) thereunder.8
The Exchange has asked the
Commission to waive the operative
delay to permit the proposed rule
change to become operative prior to the
30th day after filing. The Commission
has determined that waiving the 30-day
operative delay of the Exchange’s
proposal is consistent with the
protection of investors and the public
interest because such waiver will enable
CBOE to better meet customer demand
in light of recent increased volatility in
the marketplace.9 Therefore, the
Commission designates the proposal
operative upon filing.
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
7 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
Commission deems this requirement to be met.
9 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
8 17
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
10/13/08
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
10/6/08
9/30/08
54.89
63.30
8/29/08
74.65
7/31/08
74.40
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
No. SR–CBOE–2008–111 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–2008–111. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File No.
SR–CBOE–2008–111 and should be
submitted on or before November 28,
2008.
E:\FR\FM\06NON1.SGM
06NON1
Federal Register / Vol. 73, No. 216 / Thursday, November 6, 2008 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–26443 Filed 11–5–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58890; File No. SR–CBOE–
2008–98]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Increase the Maximum
Term for FLEX Options
October 30, 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
24, 2008, the Chicago Board Options
Exchange, Incorporated (‘‘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
The Exchange proposes to amend
Rules 24A.4 and 24B.4 to increase the
maximum term for Flexible Exchange
Options (‘‘FLEX Options’’) 5 to fifteen
years. 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.
sroberts on PROD1PC70 with NOTICES
10 17
CFR 200.30–3(a)(12).
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).
5 FLEX Options provide investors with the ability
to customize basic option features including size,
expiration date, exercise style, and certain exercise
prices.
VerDate Aug<31>2005
19:11 Nov 05, 2008
Jkt 217001
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 purpose of the proposed rule
change is to increase the maximum term
for FLEX Options. Currently, the term
for a FLEX Options varies based upon
the type of underlying. For example, for
FLEX Equity Options, the maximum
term is currently 3 years, provided a
member may request a longer term to a
maximum of 5 years (and upon
assessment by the FLEX Official that
sufficient liquidity exists, such request
will be granted). For FLEX Index
Options, the maximum term is currently
5 years, provided a member may request
a longer term to a maximum of 10 years
(and upon assessment by the FLEX
Official that sufficient liquidity exists,
such request will be granted).6 For FLEX
Credit Options, the maximum term is
currently 10.25 years.7
We are proposing to increase the
maximum term for all FLEX Options to
fifteen years and to eliminate the
requirement that a FLEX Official make
a liquidity assessment. The changes are
being proposed to simplify the process
and in response to numerous member
requests that we expand the maximum
term in order to accommodate their
desire to bring trades that are otherwise
conducted in the over-the-counter
(‘‘OTC’’) market to an exchange
environment. Though we want to
accommodate these requests, we are not
able to do so under the existing term
limitations imposed in our rules.
CBOE believes that expanding the
eligible term for FLEX Options as
proposed is important and necessary to
the Exchange’s efforts to create a
product and market that provides
members and investors interested in
FLEX-type options with an improved
but comparable alternative to the OTC
market in customized options, which
can take on contract characteristics
similar FLEX Options but are not
subject to the same maximum term
restriction. By expanding the eligible
term for FLEX Options, market
participants will now have greater
flexibility in determining whether to
execute their customized options in an
exchange environment or in the OTC
market. CBOE believes market
participants benefit from being able to
trade these customized options in an
exchange environment in several ways,
including, but not limited to the
following: (1) Enhanced efficiency in
initiating and closing out positions; (2)
increased market transparency; and (3)
heightened contra-party
creditworthiness due to the role of The
Options Clearing Corporation (‘‘OCC’’)
as issuer and guarantor of FLEX
Options. Finally, the Exchange has
confirmed with the OCC that OCC can
configure its systems to support FLEX
Options that have a maximum
expiration of fifteen years.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act 8
and the rules and regulations under the
Act applicable to national securities
exchanges and, in particular, the
requirements of Section 6(b) of the Act.9
Specifically, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 10 requirements that
the rules of an exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts, to remove
impediments to and to perfect the
mechanism for a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. The proposed rule
change will provide members and
investors with additional opportunities
to trade customized options in an
exchange environment, and investors
will benefit as a result.
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.
8 15
6 See
Rules 24A.4(a)(4)(i) and 24B.4(a)(5)(i).
7 See Rule 29.18.
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
66085
U.S.C. 78s(b)(1).
U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
9 15
E:\FR\FM\06NON1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 216 (Thursday, November 6, 2008)]
[Notices]
[Pages 66083-66085]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-26443]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58887; File No. SR-CBOE-2008-111]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Temporarily Increase the Number of Additional
Quarterly Option Series in Exchange-Traded Fund Options That May Be
Listed
October 30, 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 29, 2008, the Chicago Board Options Exchange,
Incorporated (``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
The Exchange proposes to amend Rule 5.5(e), Quarterly Option Series
Pilot Program, to temporarily increase the number of additional
Quarterly Option Series (``QOS'') in exchange-traded fund (``ETF'')
options from sixty (60) to one hundred (100) that may be added by the
Exchange. The text of the proposed rule change is available on the
Exchange's Web site (https://www.cboe.org/Legal), at the Exchange's
Office of the Secretary and at the Commission.
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 temporarily increase
the number of additional QOS in ETF options from sixty (60) to one
hundred (100) that may be added by the Exchange. To effect this change,
the Exchange is proposing to add new subparagraph (7) to Rule 5.5(e).
Because of the current, unprecedented market conditions, the
Exchange has received requests from market participants to add lower
priced strikes for QOS in the Energy Select Sector SPDR (``XLE''), the
DIAMONDS Trust, Series 1 (``DIA'') and the Standard and Poor's
Depositary Receipts/SPDRs (``SPY''). For example, for December 2008
expiration, there is demand for strikes (a) ranging from $20 up through
and including $40 for XLE, (b) ranging from $60 up through and
including $75 for DIA, and (c) ranging from $74 up through and
including $85 for SPY. These strikes are much lower than those
currently listed for which there is open interest.
However, under current Rule 5.5(e)(4), the Exchange cannot honor
these requests because the maximum number of additional series, sixty
(60), has already been listed. The Exchange is therefore seeking to
temporarily increase the number of additional QOS that may be added to
one hundred (100). The increase of additional series would be permitted
immediately for expiration months currently listed and for expiration
months added throughout the last quarter of 2008, including the new
expiration month added after December 2008 expiration. The Exchange
believes that this proposal is reasonable and will allow for more
efficient risk management. The Exchange believes this proposal will
facilitate the functioning of the Exchange's market and will not harm
investors or the public interest.
The Exchange believes that user demand and the recent downward
price movements in the underlying ETFs warrants a temporary increase in
the number of strikes for all QOS in ETF options. Currently, the
Exchange list QOS in five ETF options: (1) Nasdaq-100 Index Tracking
Stock (``QQQQ''); (2) iShares Russell 2000 Index Fund (``IWM''); (3)
DIA; (4) SPY; and (5) XLE. The below chart provides the historical
closing prices of these ETFs over the past couple of months:
----------------------------------------------------------------------------------------------------------------
ETF 10/27/08 10/13/08 10/6/08 9/30/08 8/29/08 7/31/08
-------------------------------------------------------------------------------------------------------
QQQQ................................. 28.69 35.13 34.86 38.91 46.12 45.46
IWM.................................. 44.86 56.98 59.72 68.00 73.87 71.32
DIA.................................. 80.26 95.03 99.90 108.36 115.45 113.70
SPY.................................. 83.95 101.35 104.72 115.99 128.79 126.83
[[Page 66084]]
XLE.................................. 40.86 50.55 54.89 63.30 74.65 74.40
----------------------------------------------------------------------------------------------------------------
The additional series will enable the Exchange to list in-demand,
lower priced strikes.
It is expected that other options exchanges that have adopted the
QOS Pilot Program will submit similar proposals.
The Exchange represents that it has the necessary systems capacity
to support the new options series that will result from this proposal.
Further, as proposed, the Exchange notes that these series would
temporarily become part of the pilot program and will be considered by
the Commission when the Exchange seeks to renew or make permanent the
pilot program in the future. In addition, the Exchange states that in
the event that current market volatility continues, it may seek to
continue (through a rule filing) the time period during which the
additional series proposed by this filing may be added.
2. Statutory Basis
Because the current rule proposal is responsive to the current,
unprecedented market conditions, is limited in scope as to QOS in ETF
options and as to time, and because the additional new series can be
added without presenting capacity problems, the Exchange believes the
rule proposal is consistent with the Act 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.\5\
Specifically, the Exchange believes that the proposed rule change is
consistent with the Section 6(b)(5) Act \6\ 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.
---------------------------------------------------------------------------
\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
Because the foregoing rule does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; or (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, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(6)
thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 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 Commission deems this requirement to be met.
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The Exchange has asked the Commission to waive the operative delay
to permit the proposed rule change to become operative prior to the
30th day after filing. The Commission has determined that waiving the
30-day operative delay of the Exchange's proposal is consistent with
the protection of investors and the public interest because such waiver
will enable CBOE to better meet customer demand in light of recent
increased volatility in the marketplace.\9\ Therefore, the Commission
designates the proposal operative upon filing.
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\9\ For purposes only of waiving the 30-day operative delay, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
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At any time within 60 days of the filing of 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 No. SR-CBOE-2008-111 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-2008-111. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-CBOE-2008-111 and should be
submitted on or before November 28, 2008.
[[Page 66085]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-26443 Filed 11-5-08; 8:45 am]
BILLING CODE 8011-01-P
