C2 Options Exchange, Incorporated; Notice of Filing of Application for Registration as a National Securities Exchange Under Section 6 of the Securities Exchange Act of 1934, 9322-9323 [E9-4426]
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Federal Register / Vol. 74, No. 40 / Tuesday, March 3, 2009 / Notices
with the protection of investors and the
public interest, provided that the selfregulatory organization has given the
Commission written notice of its intent
to file the proposed rule change at least
five business days prior to the date of
filing of the proposed rule change or
such shorter time as designated by the
Commission, the proposed rule change
has become effective pursuant to
Section 19(b)(3)(A) of the Act 9 and Rule
19b–4(f)(6) thereunder.10 At any time
within 60 days of the filing of such
proposed rule change, the Commission
may summarily abrogate such rule
change if it appears to the Commission
that such action is necessary or
appropriate in the public interest, for
the protection of investors, or otherwise
in furtherance of the purposes of the
Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–2009–011 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–CBOE–2009–011. 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
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). The Commission notes
that CBOE has satisfied this 5-day requirement.
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 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–2009–011 and
should be submitted on or before March
24, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–4428 Filed 3–2–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59441; File No. 10–191]
C2 Options Exchange, Incorporated;
Notice of Filing of Application for
Registration as a National Securities
Exchange Under Section 6 of the
Securities Exchange Act of 1934
February 24, 2009.
On January 21, 2009, C2 Options
Exchange, Incorporated (‘‘C2’’)
submitted to the Securities and
Exchange Commission (‘‘Commission’’)
a Form 1 application under the
Securities Exchange Act of 1934
(‘‘Exchange Act’’), seeking registration
as a national securities exchange under
Section 6 of the Exchange Act. The
Commission is publishing this notice to
solicit comments on C2’s Form 1. The
Commission will take these comments
into consideration in making its
determination about whether to grant
C2’s request to be registered as a
national securities exchange. The
Commission shall grant such
registration if it finds that the
requirements of the Exchange Act and
the rules and regulations thereunder
with respect to C2 are satisfied.1
C2’s Form 1 provides detailed
information on its proposed structure
and how it proposes to satisfy the
requirements of the Exchange Act. In
9 15
10 17
VerDate Nov<24>2008
16:42 Mar 02, 2009
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11 17
1 15
PO 00000
CFR 200.30–3(a)(12).
U.S.C. 78s(a).
Frm 00112
Fmt 4703
Sfmt 4703
particular, C2 would be owned by its
parent company, the Chicago Board
Options Exchange, Incorporated
(‘‘CBOE’’), but would operate as a
separate self-regulatory organization
under its own exchange license. The
incorporator of C2 would appoint C2’s
initial Board of Directors, which would
be comprised of the same individuals
who are then serving as the board of
directors of CBOE. As specified in the
proposed Certificate of Incorporation,
shortly after trading commences, C2
would undertake a petition process by
which Trading Permit Holders could
elect Representative Directors to the
Board.
Access to C2 would be available
through trading permits. All CBOE
members in good standing would be
eligible to receive a C2 trading permit
upon completion of a streamlined
application process, while non-CBOE
members could apply for a C2 trading
permit in a manner similar to the
current process for firms applying for
membership on CBOE.
C2 would operate an all-electronic
marketplace for the trading of listed
options and would not maintain a
physical trading floor. Liquidity on C2
would be derived from orders to buy
and orders to sell submitted
electronically by trading permit holders
or their sponsored participants from
remote locations, as well as from market
makers, which would have certain
affirmative and negative market making
obligations.
C2’s Form 1 is available at the
Commission’s Public Reference Room
and https://www.sec.gov. Interested
persons are invited to submit written
data, views, and arguments concerning
C2’s Form 1, including whether C2’s
application is consistent with the
Exchange Act. Among other things, the
Commission requests comments on C2’s
proposed governance and Board
composition. Comments may be
submitted by any of the following
methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/other.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number 10–191 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number 10–191. This file number
E:\FR\FM\03MRN1.SGM
03MRN1
Federal Register / Vol. 74, No. 40 / Tuesday, March 3, 2009 / Notices
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/other.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to C2’s Form 1 filed with
the Commission, and all written
communications relating to the
application 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.
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 10–191 and should be
submitted on or before April 17, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.2
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–4426 Filed 3–2–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59446; File No. SR–NYSE–
2009–17]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by New York
Stock Exchange LLC Eliminating the
Ability To Enter Orders on the
Exchange With the Settlement
Instructions of ‘‘Cash’’, ‘‘Next Day’’
and ‘‘Seller’s Option’’
mstockstill on PROD1PC66 with NOTICES
February 25, 2009.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on February
18, 2009, New York Stock Exchange
LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
2 17
CFR 200.30–3(a)(71)(i).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
16:42 Mar 02, 2009
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to eliminate
the ability to enter orders on the
Exchange with the settlement
instructions of ‘‘cash’’, ‘‘next day’’ and
‘‘seller’s option’’.
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
Through this filing the Exchange
seeks to amend several Exchange rules
to remove references to certain
settlement instructions that are no
longer compatible with the Exchange’s
more electronic market. These include
instructions to settle on ‘‘cash’’, ‘‘next
day’’ or ‘‘seller’s option’’ basis.
The Exchange notes that parallel
changes are proposed to be made to the
rules of the NYSE Alternext Exchange
(formerly the American Stock
Exchange).4
Background
Currently, in addition to regular way
settlement (i.e., settlement on the third
business day following trade date), a
customer may submit an order with
settlement instructions for cash, next
day or seller’s option. An order with
cash settlement instructions requires
delivery of the securities the same day
as the transaction in contrast to a regular
way transaction, where the seller is
4 See SR–NYSE Alternext–2009–14 (to be filed
February 18, 2009). The Commission notes that the
referenced filing was rejected because of a
deficiency in the proposed rule text.
1 15
VerDate Nov<24>2008
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
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PO 00000
Frm 00113
Fmt 4703
Sfmt 4703
9323
required to deliver the securities on the
third business day. Next day settlement
instructions require delivery of the
securities on the first business day
following the transaction. Orders that
have settlement instructions of seller’s
option affords the seller the right to
deliver the security or bond at any time
within a specified period, ranging from
not less than two business days to not
more than 180 days for stocks and not
less than two business days and no
more than sixty days for U.S.
government securities.
Cash, next day and seller’s option
settlement instructions are remnants of
a time when the Exchange functioned
completely as a manual auction market.
While each of these settlement
instructions may be included on order
types that are submitted electronically
to the Exchange, orders containing any
of those settlement instructions cannot
be immediately and automatically
executed but must bypass the Exchange
matching/execution engine, Display
Book, and are literally printed on paper
at the trading post for manual
processing on the Floor.
Proposed Elimination of Cash, Next
Day, Seller’s Option Settlement
Instructions
In the Exchange’s current more
electronic market, orders received by
Exchange systems that are marketable
upon entry are eligible to be
immediately and automatically
executed. Order types and settlement
instructions that require manual
intervention pose significant
impediments to the efficient functioning
of the Exchange’s market. To this end
the Exchange filed with the Commission
to remove legacy orders that require
manual processing. Specifically, on
January 31, 2008, the Exchange filed
with the Commission to amend NYSE
Rule 13 to invalidate the use of the
manual order types ‘‘Alternative
Order—Either/Or Order’’, ‘‘Orders Good
Until a Specified Time’’, ‘‘Scale Order’’
and ‘‘Switch Order—Contingent Order’’
and Rule 124’s order types ‘‘Limited
Order, With or Without Sale’’ and
‘‘Basis Price Order’’ as being
incompatible with the more electronic
Exchange market environment.5
The Exchange’s commitment to
provide its market participants with the
ability to have their orders executed in
the most efficient manner necessitates
the elimination of cash, next day and
seller’s option as valid settlement
instructions for orders submitted to the
5 See Securities and Exchange Act Release No.
57295 (February 8, 2008), 73 FR 8731 (February 14,
2008) (SR–NYSE–2008–11).
E:\FR\FM\03MRN1.SGM
03MRN1
Agencies
[Federal Register Volume 74, Number 40 (Tuesday, March 3, 2009)]
[Notices]
[Pages 9322-9323]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-4426]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59441; File No. 10-191]
C2 Options Exchange, Incorporated; Notice of Filing of
Application for Registration as a National Securities Exchange Under
Section 6 of the Securities Exchange Act of 1934
February 24, 2009.
On January 21, 2009, C2 Options Exchange, Incorporated (``C2'')
submitted to the Securities and Exchange Commission (``Commission'') a
Form 1 application under the Securities Exchange Act of 1934
(``Exchange Act''), seeking registration as a national securities
exchange under Section 6 of the Exchange Act. The Commission is
publishing this notice to solicit comments on C2's Form 1. The
Commission will take these comments into consideration in making its
determination about whether to grant C2's request to be registered as a
national securities exchange. The Commission shall grant such
registration if it finds that the requirements of the Exchange Act and
the rules and regulations thereunder with respect to C2 are
satisfied.\1\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(a).
---------------------------------------------------------------------------
C2's Form 1 provides detailed information on its proposed structure
and how it proposes to satisfy the requirements of the Exchange Act. In
particular, C2 would be owned by its parent company, the Chicago Board
Options Exchange, Incorporated (``CBOE''), but would operate as a
separate self-regulatory organization under its own exchange license.
The incorporator of C2 would appoint C2's initial Board of Directors,
which would be comprised of the same individuals who are then serving
as the board of directors of CBOE. As specified in the proposed
Certificate of Incorporation, shortly after trading commences, C2 would
undertake a petition process by which Trading Permit Holders could
elect Representative Directors to the Board.
Access to C2 would be available through trading permits. All CBOE
members in good standing would be eligible to receive a C2 trading
permit upon completion of a streamlined application process, while non-
CBOE members could apply for a C2 trading permit in a manner similar to
the current process for firms applying for membership on CBOE.
C2 would operate an all-electronic marketplace for the trading of
listed options and would not maintain a physical trading floor.
Liquidity on C2 would be derived from orders to buy and orders to sell
submitted electronically by trading permit holders or their sponsored
participants from remote locations, as well as from market makers,
which would have certain affirmative and negative market making
obligations.
C2's Form 1 is available at the Commission's Public Reference Room
and https://www.sec.gov. Interested persons are invited to submit
written data, views, and arguments concerning C2's Form 1, including
whether C2's application is consistent with the Exchange Act. Among
other things, the Commission requests comments on C2's proposed
governance and Board composition. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/other.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number 10-191 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number 10-191. This file number
[[Page 9323]]
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/other.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to C2's Form 1 filed with the Commission, and
all written communications relating to the application 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. 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 10-191 and should be submitted
on or before April 17, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\2\
---------------------------------------------------------------------------
\2\ 17 CFR 200.30-3(a)(71)(i).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-4426 Filed 3-2-09; 8:45 am]
BILLING CODE 8011-01-P