Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to the Simple Auction Liaison (SAL), 9320-9322 [E9-4428]
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Federal Register / Vol. 74, No. 40 / Tuesday, March 3, 2009 / Notices
mstockstill on PROD1PC66 with NOTICES
intermediaries have had to develop and
maintain information sharing,
monitoring, and order execution
systems (collectively ‘‘information
sharing systems’’).
In general, the staff estimates that the
typical charges involved in operating
and maintaining information sharing
systems average 25 cents for every 100
account transactions requested. The
Commission staff estimates that, on
average, each fund group requests
information for 100,000 transactions
each week, incurring costs of $250
weekly, or $13,000 a year.14 In addition,
the Commission staff estimates that
funds pay access fees to use these
information sharing systems (or
comparable internal costs) of
approximately $30,000 each year. The
Commission staff therefore estimates
that a fund group would typically incur
approximately $43,000 in costs each
year related to the operation and
maintenance of information sharing
systems required by rule 22c–2. The
Commission staff has previously
estimated that there are approximately
680 fund groups currently active, and
therefore estimates that all fund groups
incur a total of $29,240,000 in ongoing
costs each year related to maintaining
and operating information sharing
systems.15
Commission staff estimates that it
requires approximately $100,000 to
purchase or develop and implement
such an information sharing system for
the first time. Commission staff has
previously estimated that approximately
22 funds or fund groups are formed each
year managed by new advisers, and
therefore estimates that all these funds
would incur total costs of approximately
$2,200,000.16
Responses provided to the
Commission will be accorded the same
level of confidentiality accorded to
other responses provided to the
Commission in the context of its
examination and oversight program.
Responses provided in the context of
the Commission’s examination and
oversight program are generally kept
confidential. Complying with the
information collections of rule 22c–2 is
mandatory for funds that redeem their
shares within 7 days of purchase. An
agency may not conduct or sponsor, and
a person is not required to respond to
14 This estimate is based on the following
calculations: (100,000 transaction requests ×
0.0025¢ = $250); ($250 × 52 weeks = $13,000).
15 This estimate is based on the following
calculation: (680 fund groups × $43,000 =
$29,240,000).
16 This estimate is based on the following
estimate: ($100,000 × 22 new fund groups =
$2,200,000).
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16:42 Mar 02, 2009
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a collection of information unless it
displays a currently valid control
number.
Please direct general comments
regarding the above information to the
following persons: (i) Desk Officer for
the Securities and Exchange
Commission, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503
or send an e-mail to: Shagufta_Ahmed@
omb.eop.gov; and (ii) Charles Boucher,
Director/CIO, Securities and Exchange
Commission, C/O Shirley Martinson,
6432 General Green Way, Alexandria,
VA 22312; or send an e-mail to:
PRA_Mailbox@sec.gov. Comments must
be submitted to OMB within 30 days of
this notice.
Dated: February 25, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–4425 Filed 3–2–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
In the Matter of Cincinnati Microwave,
Inc., Core Technologies Pennsylvania,
Inc., First Central Financial Corp.,
Imark Technologies, Inc. (n/k/a Pharm
Control Ltd.), Molten Metal
Technology, Inc., MRS Technology,
Inc., Sun Television & Appliances, Inc.,
and Telegroup, Inc.; File No. 500–1;
Order of Suspension of Trading
February 27, 2009.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Cincinnati
Microwave, Inc. because it has not filed
any periodic reports since the period
ended September 29, 1996.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Core
Technologies Pennsylvania, Inc.
because it has not filed any periodic
reports since the period ended
September 30, 1998, except for a Form
10–Q it filed for the period ended
September 30, 2008.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of First Central
Financial Corp. because it has not filed
any periodic reports since the period
ended June 30, 1997.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Imark
Technologies, Inc. (n/k/a Pharm Control
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
Ltd.) because it has not filed any
periodic reports since the period ended
March 31, 1998.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Molten
Metal Technology, Inc. because it has
not filed any periodic reports since the
period ended September 30, 1997.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of MRS
Technology, Inc. because it has not filed
any periodic reports since the period
ended September 30, 1998.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Sun
Television & Appliances, Inc. because it
has not filed any periodic reports since
the period ended November 28, 1998.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Telegroup,
Inc. because it has not filed any periodic
reports since the period ended
September 30, 1998.
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 February 27, 2009, through
11:59 p.m. EDT on March 12, 2009.
By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–4594 Filed 2–27–09; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59448; File No. SR–CBOE–
2009–011]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Related to the Simple
Auction Liaison (SAL)
February 25, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 74, No. 40 / Tuesday, March 3, 2009 / Notices
notice is hereby given that on February
20, 2009, 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, II, and
III below, which Items have been
prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ 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 modify
Rule 6.13A, Simple Auction Liaison
(SAL), so that SAL will be available
when the size of the agency order is
larger than the disseminated MarketMaker quotation size on the opposite
side of the market in Hybrid 3.0 classes.
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
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.
mstockstill on PROD1PC66 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SAL is a feature within CBOE’s
Hybrid System that auctions marketable
orders for price improvement over the
national best bid or offer (‘‘NBBO’’).
Currently, SAL automatically initiates
an auction process for any SAL-eligible
order 5 that is eligible for automatic
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 With respect to SAL eligibility, the Exchange
designates the eligible order size, eligible order
type, eligible order origin code (i.e., public
execution by the Hybrid System (an
‘‘agency order’’) pursuant to Rule 6.13,
CBOE Hybrid System’s Automatic
Execution Feature, except when the
Exchange’s disseminated quotation on
the opposite side of the market from the
agency order does not contain sufficient
Market-Maker quotation size to satisfy
the entire Agency Order. Prior to
commencing the auction, SAL stops the
agency order at the NBBO against
Market-Maker quotations displayed at
the NBBO on the opposite side of the
market as the agency order. For
example, if an otherwise eligible agency
order for 120 contracts is entered and
the disseminated quotation size is 100,
SAL will not initiate an auction process.
On the other hand, if an eligible agency
order for 100 contracts is entered and
the disseminated quotation size is 100,
SAL will stop the entire agency order at
the NBBO against the disseminated
quotation size of 100 while SAL
initiates an auction for price
improvement over the NBBO.
In order to offer additional
opportunities for price improvement in
Hybrid 3.0 classes that are singly-listed
(which currently only includes options
on the Standard and Poor’s 500 Index,
SPX), we propose to modify the process
so that SAL will operate in instances
where the agency order size exceeds the
disseminated Market-Maker quotation
size. In such instances, the order would
be stopped to the extent of the
disseminated Market-Maker quotation
size. To the extent an order exceeds the
disseminated Market-Maker quotation
size, a stop is not necessary and will not
be applied. Thus, using our example
above, if an eligible agency order for 120
contracts is entered in a Hybrid 3.0 class
and the disseminated quotation size is
100, SAL will partially stop the agency
order at the NBBO against the
disseminated quotation size of 100 (the
remaining 20 contracts will not be
stopped) while SAL initiates an auction
for price improvement over the NBBO
for the entire 120 contract order. After
expiration of the SAL auction, the order
will execute to the extent possible in
accordance with the matching algorithm
in effect for SAL executions in the
Hybrid 3.0 class. If there is any
remainder and the order is a market
order, the remainder would trade with
the book at the next price level(s). If
there is any remainder that is not
executable and the order is a limit order,
and if the Hybrid Agency Liaison
(‘‘HAL’’) is activated for the class
pursuant to Rule 6.14, that remainder
4 17
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customer orders, non-Member Maker broker-dealer
orders, and Market Maker broker-dealer orders), and
classes in which SAL is activated.
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
9321
will HAL.6 If HAL is not active, any
remainder of the limit order will book.
The Exchange believes this change
would allow for additional
opportunities for price improvement to
orders that would otherwise not be
eligible for SAL. All other provisions of
the SAL rule would apply unchanged.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) of the Act 7 in general and furthers
the objectives of Section 6(b)(5) of the
Act 8 in particular in that it is designed
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. In particular, the
Exchange believes that the proposed
change would give additional
opportunities to provide orders
executions at improved prices.
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; 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
6 HAL is a feature within the Hybrid System that
provides automated order handing in designated
classes trading on Hybrid for qualifying electronic
orders that are not automatically executed by the
Hybrid System. In Hybrid 3.0 Classes that are
singly-listed, HAL automatically processes upon
receipt, eligible limit orders that would improve the
Exchange’s disseminated quotations except when
the disseminated quotation is represented by a
manual quote in which case the order will
automatically route to the electronic book instead
of being processed by HAL and the manual quote
will be cancelled.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
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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
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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
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]]>Agencies
[Federal Register Volume 74, Number 40 (Tuesday, March 3, 2009)]
[Notices]
[Pages 9320-9322]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-4428]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59448; File No. SR-CBOE-2009-011]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Related to the Simple Auction Liaison (SAL)
February 25, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\
[[Page 9321]]
notice is hereby given that on February 20, 2009, 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, II, and III 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 modify Rule 6.13A, Simple Auction Liaison
(SAL), so that SAL will be available when the size of the agency order
is larger than the disseminated Market-Maker quotation size on the
opposite side of the market in Hybrid 3.0 classes. 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 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
SAL is a feature within CBOE's Hybrid System that auctions
marketable orders for price improvement over the national best bid or
offer (``NBBO''). Currently, SAL automatically initiates an auction
process for any SAL-eligible order \5\ that is eligible for automatic
execution by the Hybrid System (an ``agency order'') pursuant to Rule
6.13, CBOE Hybrid System's Automatic Execution Feature, except when the
Exchange's disseminated quotation on the opposite side of the market
from the agency order does not contain sufficient Market-Maker
quotation size to satisfy the entire Agency Order. Prior to commencing
the auction, SAL stops the agency order at the NBBO against Market-
Maker quotations displayed at the NBBO on the opposite side of the
market as the agency order. For example, if an otherwise eligible
agency order for 120 contracts is entered and the disseminated
quotation size is 100, SAL will not initiate an auction process. On the
other hand, if an eligible agency order for 100 contracts is entered
and the disseminated quotation size is 100, SAL will stop the entire
agency order at the NBBO against the disseminated quotation size of 100
while SAL initiates an auction for price improvement over the NBBO.
---------------------------------------------------------------------------
\5\ With respect to SAL eligibility, the Exchange designates the
eligible order size, eligible order type, eligible order origin code
(i.e., public customer orders, non-Member Maker broker-dealer
orders, and Market Maker broker-dealer orders), and classes in which
SAL is activated.
---------------------------------------------------------------------------
In order to offer additional opportunities for price improvement in
Hybrid 3.0 classes that are singly-listed (which currently only
includes options on the Standard and Poor's 500 Index, SPX), we propose
to modify the process so that SAL will operate in instances where the
agency order size exceeds the disseminated Market-Maker quotation size.
In such instances, the order would be stopped to the extent of the
disseminated Market-Maker quotation size. To the extent an order
exceeds the disseminated Market-Maker quotation size, a stop is not
necessary and will not be applied. Thus, using our example above, if an
eligible agency order for 120 contracts is entered in a Hybrid 3.0
class and the disseminated quotation size is 100, SAL will partially
stop the agency order at the NBBO against the disseminated quotation
size of 100 (the remaining 20 contracts will not be stopped) while SAL
initiates an auction for price improvement over the NBBO for the entire
120 contract order. After expiration of the SAL auction, the order will
execute to the extent possible in accordance with the matching
algorithm in effect for SAL executions in the Hybrid 3.0 class. If
there is any remainder and the order is a market order, the remainder
would trade with the book at the next price level(s). If there is any
remainder that is not executable and the order is a limit order, and if
the Hybrid Agency Liaison (``HAL'') is activated for the class pursuant
to Rule 6.14, that remainder will HAL.\6\ If HAL is not active, any
remainder of the limit order will book. The Exchange believes this
change would allow for additional opportunities for price improvement
to orders that would otherwise not be eligible for SAL. All other
provisions of the SAL rule would apply unchanged.
---------------------------------------------------------------------------
\6\ HAL is a feature within the Hybrid System that provides
automated order handing in designated classes trading on Hybrid for
qualifying electronic orders that are not automatically executed by
the Hybrid System. In Hybrid 3.0 Classes that are singly-listed, HAL
automatically processes upon receipt, eligible limit orders that
would improve the Exchange's disseminated quotations except when the
disseminated quotation is represented by a manual quote in which
case the order will automatically route to the electronic book
instead of being processed by HAL and the manual quote will be
cancelled.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Act \7\ in general and furthers the objectives of
Section 6(b)(5) of the Act \8\ in particular in that it is designed 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.
In particular, the Exchange believes that the proposed change would
give additional opportunities to provide orders executions at improved
prices.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 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; 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
[[Page 9322]]
with the protection of investors and the public interest, provided that
the self-regulatory 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.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). The Commission notes that CBOE has
satisfied this 5-day requirement.
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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-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 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.
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\11\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-4428 Filed 3-2-09; 8:45 am]
BILLING CODE 8011-01-P
