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, 72091-72093 [E8-28140]
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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).
E:\FR\FM\26NON1.SGM
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72092
Federal Register / Vol. 73, No. 229 / Wednesday, November 26, 2008 / Notices
mstockstill on PROD1PC66 with NOTICES
contracts, premium, commissions, date
of transaction and settlement date, and
shall indicate whether the transaction is
a purchase or sale and whether a
principal or agency transaction. The
confirmation shall also by appropriate
symbols distinguish between Exchange
transactions and other transactions in
options contracts.
Prior to August 1999, an options class
was typically listed on only one options
exchange. In August 1999, the options
exchanges began to multiply-list options
classes that were previously listed on
only one exchange. In October 1999, the
Commission stated that it believed a
linkage among options markets would
benefit investors by increasing
competition among markets (and market
participants) to provide the best
execution of customer orders.5
Subsequently, the Commission directed
the options exchanges to act jointly in
discussing, developing, and submitting
for Commission approval an intermarket
linkage plan for multiply-traded
options. On July 28, 2000, the
Commission approved the Plan for the
Purpose of Creating and Operating an
Intermarket Options Market Linkage
(the ‘‘Options Linkage Plan’’ or
‘‘Linkage Plan’’) submitted by the CBOE,
the American Stock Exchange LLC
(‘‘Amex’’) and the International
Securities Exchange, Inc.6 The
Philadelphia Stock Exchange, Inc., and
the Pacific Stock Exchange agreed to
participate in the Options Linkage Plan
in November 2000.7 As a result of the
introduction of multiply listed options
and the implementation of the Linkage
Plan, the contracts in a customer
options order could be executed on
more than one options exchange and the
significance of the options exchange or
exchanges that execute a particular
options transaction has diminished
significantly.
Under the duty of best execution,
CBOE members are required to exercise
diligence to obtain the best price when
routing customer options orders for
execution. The Exchange, as well as the
other members of the Options Self
Regulatory Council (the ‘‘OSRC’’),8
believes that in light of the existing best
execution and disclosure requirements,
the usefulness of including on an
5 See Exchange Act Release No. 42029 (Oct. 19,
1999), 64 FR 57674 (Oct. 26, 1999).
6 See Exchange Act Release No. 43086 (July 28,
2000), 65 FR 48023 (Aug. 4, 2000).
7 See Exchange Act Release Nos. 43573 (Nov. 16,
2000), 65 FR 70850 (November 28, 2000) and 43574
(Nov. 16, 2000), 65 FR 70851 (Nov. 28, 2000)
(approval order).
8 The ORSC consists of the options exchanges and
the Financial Industry Regulatory Authority, Inc.
(‘‘FINRA’’).
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17:30 Nov 25, 2008
Jkt 217001
options confirmation the name of the
options exchange or exchanges on
which an options transaction was
effected does not outweigh the
operational difficulties of capturing the
information given the multiple trading
of options and the application of the
Options Linkage Plan industry-wide.
Consequently, the proposal would
amend Exchange Rule 9.11 to make
clear that written confirmations relating
to options transactions are not required
to specify the options exchange or
exchanges on which such options
contracts were executed.
The Exchange has worked with the
other members of the OSRC in
developing these proposed rule changes.
Also, the Commission has approved an
Amex proposal to clarify that written
confirmations relating to options
transactions are not required to specify
the options exchange or exchanges on
which such options contracts are
executed.9 Each additional member of
the OSRC is expected to similarly file
rule proposals to either delete the
requirement that the written options
confirmation disclose the name of the
options exchange or exchanges on
which the options transaction was
executed, or clarify that no such
requirement exists.
The Exchange believes that with the
expansion of multi-listing of options
and the introduction of new options
exchanges, it has become operationally
inefficient to require the disclosure of
the market center on which an order
was executed on the confirmation. As
an example, a customer may have a
single option order containing
numerous option contracts executed on
multiple exchanges. Under these
conditions, it would be inefficient for
the member organization to be required
to identify the exchange symbol for each
contract executed on that customer’s
order.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6 of the Exchange Act 10 in
general, and furthers the objectives of
Section 6(b)(5) 11 of the Act in particular
in that it is designed to promote just and
equitable principles of trade, facilitate
transactions in securities, remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system, and, in
general, to protect investors and the
9 See Exchange Act Release No. 58814 (Oct. 20,
2008), 73 FR 63527 (Oct. 24, 2008) (SR–Amex–
2008–53).
10 15 U.S.C. 78f.
11 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00070
Fmt 4703
Sfmt 4703
public interest by clarifying the
Exchange’s options confirmation
procedure rules to better reflect the
realities of the modern options market.
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 forgoing rule change 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 12 and Rule 19b–
4(f)(6) thereunder.13
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.14 However, Rule 19b–
4(f)(6)(iii) 15 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 proposed rule change is
substantially similar to an Amex rule
that provides that written confirmations
relating to options transactions are not
required to specify the options exchange
or exchanges on which such options
were executed.16 The Exchange believes
that this proposed rule change does not
raise any new, unique or substantive
issues from those raised in the approved
Amex filing. The Exchange also believes
that acceleration of the operative date is
consistent with the protection of
investors and the public interest.17
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
15 Id.
16 See supra note 9, and related text.
17 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
impact of the proposed rule on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
13 17
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Federal Register / Vol. 73, No. 229 / Wednesday, November 26, 2008 / Notices
Lastly, the Exchange provided the
Commission with written notice of its
intent to file the proposed rule change,
along with a brief description and text
of the proposed rule change, at least five
days prior to the date of the filing of the
proposed rule change as required by
Rule 19b–4(f)(6).
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 rulecomments@sec.gov. Please include File
Number SR–CBOE–2008–61 on the
subject line.
the principal office of the CBOE. 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–2008–61 and should
be submitted on or before December 17,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–28140 Filed 11–25–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58974; File No. SR–
NASDAQ–2008–087]
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change by
The NASDAQ Stock Market LLC
Regarding a Clerical Change to
Nasdaq Rules
November 18, 2008.
mstockstill on PROD1PC66 with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
Paper Comments
notice is hereby given that on November
12, 2008, The NASDAQ Stock Market
• Send paper comments in triplicate
LLC (‘‘Nasdaq’’) filed with the Securities
to Secretary, Securities and Exchange
and Exchange Commission
Commission, 100 F Street, NE.,
(‘‘Commission’’) the proposed rule
Washington, DC 20549–1090.
change as described in Items I, II, and
All submissions should refer to File
III below, which Items have been
Number SR–CBOE–2008–61. This file
prepared by Nasdaq. Nasdaq proposes to
number should be included on the
subject line if e-mail is used. To help the make a clerical correction to the Nasdaq
rulebook under Rule 19b–4(f)(3) under
Commission process and review your
the Act,3 which renders the proposal
comments more efficiently, please use
effective upon filing with the
only one method. The Commission will
post all comments on the Commission’s Commission. The Commission is
publishing this notice to solicit
Internet Web site (https://www.sec.gov/
comments on the proposed rule change
rules/sro.shtml). Copies of the
from interested persons.
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
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17:30 Nov 25, 2008
Jkt 217001
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
Nasdaq proposes to make clerical
corrections to the Nasdaq rulebook.
Nasdaq proposes to implement the
proposed rule change immediately.
The text of the proposed rule change
is available on Nasdaq’s Web site
(https://www.complinet.com/nasdaq), at
Nasdaq’s principal office, and at the
Commission’s Public Reference Room.
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 C.F.R. 240.19b–4(f)(3).
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Nasdaq 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 these statements
may be examined at the places specified
in Item IV below. Nasdaq has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Nasdaq proposes to make a clerical
correction to the Nasdaq rulebook.
Specifically, Nasdaq proposes to
renumber Nasdaq Rule 7039 to Nasdaq
Rule 7046, and also to renumber Nasdaq
Rule 7050 to Nasdaq Rule 7045. Nasdaq
is renumbering these rules because
Nasdaq has filed other proposed rule
changes that necessitate a renumbering.
Nasdaq is making no changes to Rules
7039 and 7050, other than to change
their numbers to 7046 and 7045.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,4 in
general, and with Section 6(b)(5) of the
Act,5 in particular, in that the proposal
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. The proposed rule
change makes a minor clerical change to
renumber an existing Nasdaq rule.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
1 15
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4 15
5 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
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]]>Agencies
[Federal Register Volume 73, Number 229 (Wednesday, November 26, 2008)]
[Notices]
[Pages 72091-72093]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-28140]
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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 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.
---------------------------------------------------------------------------
\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).
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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
[[Page 72092]]
contracts, premium, commissions, date of transaction and settlement
date, and shall indicate whether the transaction is a purchase or sale
and whether a principal or agency transaction. The confirmation shall
also by appropriate symbols distinguish between Exchange transactions
and other transactions in options contracts.
Prior to August 1999, an options class was typically listed on only
one options exchange. In August 1999, the options exchanges began to
multiply-list options classes that were previously listed on only one
exchange. In October 1999, the Commission stated that it believed a
linkage among options markets would benefit investors by increasing
competition among markets (and market participants) to provide the best
execution of customer orders.\5\ Subsequently, the Commission directed
the options exchanges to act jointly in discussing, developing, and
submitting for Commission approval an intermarket linkage plan for
multiply-traded options. On July 28, 2000, the Commission approved the
Plan for the Purpose of Creating and Operating an Intermarket Options
Market Linkage (the ``Options Linkage Plan'' or ``Linkage Plan'')
submitted by the CBOE, the American Stock Exchange LLC (``Amex'') and
the International Securities Exchange, Inc.\6\ The Philadelphia Stock
Exchange, Inc., and the Pacific Stock Exchange agreed to participate in
the Options Linkage Plan in November 2000.\7\ As a result of the
introduction of multiply listed options and the implementation of the
Linkage Plan, the contracts in a customer options order could be
executed on more than one options exchange and the significance of the
options exchange or exchanges that execute a particular options
transaction has diminished significantly.
---------------------------------------------------------------------------
\5\ See Exchange Act Release No. 42029 (Oct. 19, 1999), 64 FR
57674 (Oct. 26, 1999).
\6\ See Exchange Act Release No. 43086 (July 28, 2000), 65 FR
48023 (Aug. 4, 2000).
\7\ See Exchange Act Release Nos. 43573 (Nov. 16, 2000), 65 FR
70850 (November 28, 2000) and 43574 (Nov. 16, 2000), 65 FR 70851
(Nov. 28, 2000) (approval order).
---------------------------------------------------------------------------
Under the duty of best execution, CBOE members are required to
exercise diligence to obtain the best price when routing customer
options orders for execution. The Exchange, as well as the other
members of the Options Self Regulatory Council (the ``OSRC''),\8\
believes that in light of the existing best execution and disclosure
requirements, the usefulness of including on an options confirmation
the name of the options exchange or exchanges on which an options
transaction was effected does not outweigh the operational difficulties
of capturing the information given the multiple trading of options and
the application of the Options Linkage Plan industry-wide.
Consequently, the proposal would amend Exchange Rule 9.11 to make clear
that written confirmations relating to options transactions are not
required to specify the options exchange or exchanges on which such
options contracts were executed.
---------------------------------------------------------------------------
\8\ The ORSC consists of the options exchanges and the Financial
Industry Regulatory Authority, Inc. (``FINRA'').
---------------------------------------------------------------------------
The Exchange has worked with the other members of the OSRC in
developing these proposed rule changes. Also, the Commission has
approved an Amex proposal to clarify that written confirmations
relating to options transactions are not required to specify the
options exchange or exchanges on which such options contracts are
executed.\9\ Each additional member of the OSRC is expected to
similarly file rule proposals to either delete the requirement that the
written options confirmation disclose the name of the options exchange
or exchanges on which the options transaction was executed, or clarify
that no such requirement exists.
---------------------------------------------------------------------------
\9\ See Exchange Act Release No. 58814 (Oct. 20, 2008), 73 FR
63527 (Oct. 24, 2008) (SR-Amex-2008-53).
---------------------------------------------------------------------------
The Exchange believes that with the expansion of multi-listing of
options and the introduction of new options exchanges, it has become
operationally inefficient to require the disclosure of the market
center on which an order was executed on the confirmation. As an
example, a customer may have a single option order containing numerous
option contracts executed on multiple exchanges. Under these
conditions, it would be inefficient for the member organization to be
required to identify the exchange symbol for each contract executed on
that customer's order.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6 of the Exchange Act \10\ in general, and furthers the
objectives of Section 6(b)(5) \11\ of the Act in particular in that it
is designed to promote just and equitable principles of trade,
facilitate transactions in securities, remove impediments to and
perfect the mechanisms of a free and open market and a national market
system, and, in general, to protect investors and the public interest
by clarifying the Exchange's options confirmation procedure rules to
better reflect the realities of the modern options market.
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\10\ 15 U.S.C. 78f.
\11\ 15 U.S.C. 78f(b)(5).
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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 forgoing rule change 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 \12\ and Rule 19b-4(f)(6) thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\14\
However, Rule 19b-4(f)(6)(iii) \15\ 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.
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\14\ 17 CFR 240.19b-4(f)(6)(iii).
\15\ Id.
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The proposed rule change is substantially similar to an Amex rule
that provides that written confirmations relating to options
transactions are not required to specify the options exchange or
exchanges on which such options were executed.\16\ The Exchange
believes that this proposed rule change does not raise any new, unique
or substantive issues from those raised in the approved Amex filing.
The Exchange also believes that acceleration of the operative date is
consistent with the protection of investors and the public
interest.\17\
[[Page 72093]]
Lastly, the Exchange provided the Commission with written notice of its
intent to file the proposed rule change, along with a brief description
and text of the proposed rule change, at least five days prior to the
date of the filing of the proposed rule change as required by Rule 19b-
4(f)(6).
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\16\ See supra note 9, and related text.
\17\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the impact of the proposed rule on
efficiency, competition, and capital formation. 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-2008-61 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-2008-61. 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 CBOE. 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-2008-61 and should be
submitted on or before December 17, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Florence E. Harmon,
Acting Secretary.
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\18\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E8-28140 Filed 11-25-08; 8:45 am]
BILLING CODE 8011-01-P
