Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend CBOE Rules Relating to an Expansion of the SPX Trading Crowd, 72089-72091 [E8-28045]
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Federal Register / Vol. 73, No. 229 / Wednesday, November 26, 2008 / Notices
will consider whether to propose and
re-propose certain proposed rules
relating to transparency and
competition concerning nationally
recognized statistical rating
organizations.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact:
The Office of the Secretary at (202)
551–5400.
Dated: November 21, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–28127 Filed 11–25–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
mstockstill on PROD1PC66 with NOTICES
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Sunday, November 23, 2008, at 12
p.m.
Commissioners and certain staff
members who have an interest in the
matter will attend the Closed Meeting.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions as set forth in
5 U.S.C. 552b(c)(8) and (9) and 17 CFR
200.402(a)(8) and (9), permit
consideration of the scheduled matter at
the Closed Meeting.
Commissioner Paredes, as duty
officer, voted to consider the item listed
for the closed meeting in closed session
and determined that no earlier notice
thereof was possible.
The subject matter of the Closed
Meeting scheduled for Sunday,
November 23, 2008, will be:
A matter related to a financial
institution.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items. For further
information and to ascertain what, if
any, matters have been added, deleted
or postponed, please contact: The Office
of the Secretary at (202) 551–5400.
Dated: November 23, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–28239 Filed 11–25–08; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
[Release No. 34–58978; File No. SR–CBOE–
2008–116]
American Custom Components, Inc.,
Creditgroup Com, Inc. (n/k/a Tradex
Global Financial Services, Inc.),
Frederick Brewing Co., and Infinicall
Corp., Respondents; Order of
Suspension of Trading
November 24, 2008.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of American
Custom Components, Inc. because it has
not filed any periodic reports since the
period ended June 30, 1998.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Creditgroup
Com, Inc. (n/k/a Tradex Global
Financial Services, Inc.) because it has
not filed any periodic reports since
August 12, 1999.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Frederick
Brewing Co. because it has not filed any
periodic reports since the period ended
September 30, 2002.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Infinicall
Corp. because it has not filed any
periodic reports since the period ended
December 31, 2005.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
companies.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
securities of the above-listed companies
is suspended for the period from 9:30
a.m. EST on November 24, 2008,
through 11:59 p.m. EST on December 8,
2008.
By the Commission.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E8–28253 Filed 11–24–08; 4:15 pm]
17:30 Nov 25, 2008
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Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend CBOE Rules
Relating to an Expansion of the SPX
Trading Crowd
November 19, 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 November
19, 2008, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange 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 its
rules relating to the physical expansion
of a trading crowd. 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’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.
BILLING CODE 8011–01–P
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
BILLING CODE 8011–01–P
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Federal Register / Vol. 73, No. 229 / Wednesday, November 26, 2008 / Notices
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
CBOE recently completed an
expansion of the back area of the SPX
options trading crowd, which will result
in a number of new trading spaces
opening up in the trading crowd. In
anticipation of the expansion, CBOE is
filing this proposed rule change to
describe the objective processes that it
may utilize to determine which
individuals can use one of the new
trading spaces that are available,
provided the demand for trading spaces
in the trading crowd exceeds the
supply.
Historically, an order in time process
has generally been applied to determine
which individuals can use new trading
spaces in a crowd located on the CBOE
trading floor. Recently CBOE codified in
its rules pursuant to Commission
approval objective processes pertaining
to the issuance of new Interim Trading
Permits (‘‘ITPs’’) through either a
random lottery process or order in time
process, in anticipation that the demand
for the ITPs would exceed the supply.5
In the event the demand for trading
spaces in the back area of the SPX
trading crowd exceeds the supply,
CBOE is adopting similar processes to
determine which individuals can use
one of the new trading spaces.
Specifically, CBOE may choose to
utilize either a random lottery process
or an order in time process, which are
the two objective processes that CBOE
recently codified for the issuance of
ITPs. CBOE notes that when it adopted
these two processes for the issuance of
ITPs, the rule filing did not receive any
negative comments from its members
relating to these objective processes.
Instead, CBOE believes that the issuance
of ITPs using the random lottery process
was a positive experience, and now
seeks to apply one of these two
processes in the context of the physical
expansion of the SPX trading crowd.
Under either of the processes that it
chooses to utilize, CBOE would
announce a deadline by which an
approved individual CBOE member
who desires to use the trading space can
submit an indication of interest for one
of the available trading spaces in the
back area of the SPX trading crowd.
Only those individuals who are
approved members of CBOE would be
eligible to submit an indication of
5 See Securities Exchange Act Release No. 58178
(July 17, 2008), 73 FR 42634 (July 22, 2008),
approving SR–CBOE–2008–40.
VerDate Aug<31>2005
17:30 Nov 25, 2008
Jkt 217001
interest, and the individual who would
be using the trading space must be an
effective member under CBOE Rule 3.10
(i.e., must be on a membership 6), a
temporary member, or ITP Holder at the
time of the random lottery process or
the order in time process. If an existing
member of the SPX trading crowd
submits an indication of interest, is
‘‘selected’’ through the random lottery
process or the order in time process and
chooses a new trading space in the back
area of the SPX trading crowd, that
member’s prior trading space would be
deemed vacant.
After the deadline for indications of
interest has passed, the available trading
spaces in the back area of the SPX
trading crowd would be allocated
through a random lottery process or an
order in time process.7 Each individual
member who is ‘‘selected’’ through
either the random lottery process (based
on the lottery selection sequence) or the
order in time process (based on time
sequence) would choose the new
trading space where he or she would
like to stand.
CBOE believes that these processes
would provide for the issuance of new
trading spaces in an objective manner
and consequently would provide for fair
access to the Exchange.
2. Statutory Basis
The proposed rule change would
permit the Exchange to allocate new
trading spaces in the SPX trading crowd
pursuant to one of two objective
processes: a random lottery process or
an order in time process. CBOE notes
that both of these processes have been
codified in connection with the
issuance of ITPs in a prior filing that
was approved by the Commission. As a
result, the Exchange believes the
proposed rule change 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.8 Specifically, the Exchange
believes the proposed rule change is
consistent with the Section 6(b)(5) Act 9
requirements that the rules of an
exchange be designed to promote just
6 Being ‘‘on a membership’’ means that the
member has satisfied the applicable requirements to
obtain a membership and a membership has been
released to that member by the Exchange’s
Membership Department.
7 A member who selects a trading space following
the random lottery process or the order in time
process does not obtain any ownership right in that
particular trading space. In the event a space
dispute should arise, the crowd space dispute
resolution procedures in Rule 24.21 will continue
to apply.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
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and equitable principles of trade, to
prevent fraudulent and manipulative
acts and, in general, to protect investors
and the public interest. CBOE believes
that these processes would provide for
the issuance of new trading spaces in an
objective manner and consequently
would provide for fair access to the
Exchange.
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 that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange 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; 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, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 10 and Rule 19b–4(f)(6)
thereunder.11
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.12 However, Rule 19b–
4(f)(6)(iii) 13 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 because it has now completed the
expansion of its SPX trading crowd and
has recently come to believe that the
demand for additional trading spaces
may exceed the newly available supply.
To respond to this possibility, CBOE
would like the flexibility to utilize a
10 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
give 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 Exchange has satisfied this
requirement.
12 Id.
13 17 CFR 240.19b–4(f)(6)(iii).
11 17
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Federal Register / Vol. 73, No. 229 / Wednesday, November 26, 2008 / Notices
lottery process when it allocates the
additional space in the next several
days. CBOE notes that its proposed rule
change is a copy of its current lottery
process applicable to the allocation of
ITPs, which the Commission previously
approved, and would apply that
methodology in the context of
expanding its SPX trading crowd.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest.14 In
particular, the Commission believes that
waiver of the operative delay will
promote competition and efficiency by
providing CBOE with the option to
utilize its new lottery process to manage
the expansion of the SPX trading crowd,
which it anticipates allocating in the
next several days. Waiving the operative
delay will enable CBOE to use either
this new process or the historicallyutilized first in time process as it deems
appropriate, and will enable CBOE to
allocate the new space promptly
through a fair and objective
methodology. For these reasons, the
Commission designates the proposed
rule change as 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
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–2008–116 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–2008–116. This file
14 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s effect on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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17:30 Nov 25, 2008
Jkt 217001
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 am and 3 pm.
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–2008–116 and should be
submitted on or before December 17,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–28045 Filed 11–25–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58980; File No. SR–CBOE–
2008–61]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Clarify Exchange Rule
9.11 Relating to Confirmations to
Customers
November 19, 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 November
10, 2008, Chicago Board Options
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’), filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
substantially 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 Chicago Board Options Exchange,
Incorporated (‘‘CBOE’’ or ‘‘Exchange’’),
proposes to amend CBOE Rule 9.11—
Confirmation to Customers to clarify
that written confirmations relating to
options transactions do not need to
specify the exchange or exchanges on
which an option contract is executed.
The text of the proposed rule change is
available on the Exchange’s Web site
(https://www.cboe.com/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
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
and is set forth in sections (A), (B), and
(C) below.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The proposed amendment to
Exchange Rule 9.11 clarifies that a
member organization is not required to
disclose the market on which an options
transaction is executed on a written
confirmation furnished to a customer of
a member organization. The member
organization will continue to furnish a
written confirmation that contains a
description of each transaction in the
option contracts, the underlying
security type, option expiration month,
exercise price, number of option
15 17
1 15
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72091
3 15
4 17
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
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]]>Agencies
[Federal Register Volume 73, Number 229 (Wednesday, November 26, 2008)]
[Notices]
[Pages 72089-72091]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-28045]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58978; File No. SR-CBOE-2008-116]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Amend CBOE Rules Relating to an Expansion of the SPX
Trading Crowd
November 19, 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 November 19, 2008, the Chicago Board Options Exchange,
Incorporated (``CBOE'' or ``Exchange'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared by
the Exchange. The Exchange 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 its rules relating to the physical
expansion of a trading crowd. 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'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.
[[Page 72090]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
CBOE recently completed an expansion of the back area of the SPX
options trading crowd, which will result in a number of new trading
spaces opening up in the trading crowd. In anticipation of the
expansion, CBOE is filing this proposed rule change to describe the
objective processes that it may utilize to determine which individuals
can use one of the new trading spaces that are available, provided the
demand for trading spaces in the trading crowd exceeds the supply.
Historically, an order in time process has generally been applied
to determine which individuals can use new trading spaces in a crowd
located on the CBOE trading floor. Recently CBOE codified in its rules
pursuant to Commission approval objective processes pertaining to the
issuance of new Interim Trading Permits (``ITPs'') through either a
random lottery process or order in time process, in anticipation that
the demand for the ITPs would exceed the supply.\5\ In the event the
demand for trading spaces in the back area of the SPX trading crowd
exceeds the supply, CBOE is adopting similar processes to determine
which individuals can use one of the new trading spaces. Specifically,
CBOE may choose to utilize either a random lottery process or an order
in time process, which are the two objective processes that CBOE
recently codified for the issuance of ITPs. CBOE notes that when it
adopted these two processes for the issuance of ITPs, the rule filing
did not receive any negative comments from its members relating to
these objective processes. Instead, CBOE believes that the issuance of
ITPs using the random lottery process was a positive experience, and
now seeks to apply one of these two processes in the context of the
physical expansion of the SPX trading crowd.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 58178 (July 17,
2008), 73 FR 42634 (July 22, 2008), approving SR-CBOE-2008-40.
---------------------------------------------------------------------------
Under either of the processes that it chooses to utilize, CBOE
would announce a deadline by which an approved individual CBOE member
who desires to use the trading space can submit an indication of
interest for one of the available trading spaces in the back area of
the SPX trading crowd. Only those individuals who are approved members
of CBOE would be eligible to submit an indication of interest, and the
individual who would be using the trading space must be an effective
member under CBOE Rule 3.10 (i.e., must be on a membership \6\), a
temporary member, or ITP Holder at the time of the random lottery
process or the order in time process. If an existing member of the SPX
trading crowd submits an indication of interest, is ``selected''
through the random lottery process or the order in time process and
chooses a new trading space in the back area of the SPX trading crowd,
that member's prior trading space would be deemed vacant.
---------------------------------------------------------------------------
\6\ Being ``on a membership'' means that the member has
satisfied the applicable requirements to obtain a membership and a
membership has been released to that member by the Exchange's
Membership Department.
---------------------------------------------------------------------------
After the deadline for indications of interest has passed, the
available trading spaces in the back area of the SPX trading crowd
would be allocated through a random lottery process or an order in time
process.\7\ Each individual member who is ``selected'' through either
the random lottery process (based on the lottery selection sequence) or
the order in time process (based on time sequence) would choose the new
trading space where he or she would like to stand.
---------------------------------------------------------------------------
\7\ A member who selects a trading space following the random
lottery process or the order in time process does not obtain any
ownership right in that particular trading space. In the event a
space dispute should arise, the crowd space dispute resolution
procedures in Rule 24.21 will continue to apply.
---------------------------------------------------------------------------
CBOE believes that these processes would provide for the issuance
of new trading spaces in an objective manner and consequently would
provide for fair access to the Exchange.
2. Statutory Basis
The proposed rule change would permit the Exchange to allocate new
trading spaces in the SPX trading crowd pursuant to one of two
objective processes: a random lottery process or an order in time
process. CBOE notes that both of these processes have been codified in
connection with the issuance of ITPs in a prior filing that was
approved by the Commission. As a result, the Exchange believes the
proposed rule change 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.\8\
Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) Act \9\ 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. CBOE believes that these
processes would provide for the issuance of new trading spaces in an
objective manner and consequently would provide for fair access to the
Exchange.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 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 that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange 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; 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, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give 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 Exchange has satisfied this requirement.
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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.\12\
However, Rule 19b-4(f)(6)(iii) \13\ 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 because it has now
completed the expansion of its SPX trading crowd and has recently come
to believe that the demand for additional trading spaces may exceed the
newly available supply. To respond to this possibility, CBOE would like
the flexibility to utilize a
[[Page 72091]]
lottery process when it allocates the additional space in the next
several days. CBOE notes that its proposed rule change is a copy of its
current lottery process applicable to the allocation of ITPs, which the
Commission previously approved, and would apply that methodology in the
context of expanding its SPX trading crowd.
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\12\ Id.
\13\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public
interest.\14\ In particular, the Commission believes that waiver of the
operative delay will promote competition and efficiency by providing
CBOE with the option to utilize its new lottery process to manage the
expansion of the SPX trading crowd, which it anticipates allocating in
the next several days. Waiving the operative delay will enable CBOE to
use either this new process or the historically-utilized first in time
process as it deems appropriate, and will enable CBOE to allocate the
new space promptly through a fair and objective methodology. For these
reasons, the Commission designates the proposed rule change as
operative upon filing.
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\14\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's effect 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 Number SR-CBOE-2008-116 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-2008-116. 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
am and 3 pm. 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-2008-116 and should be
submitted on or before December 17, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-28045 Filed 11-25-08; 8:45 am]
BILLING CODE 8011-01-P
