Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change Related to Short Term Option Series, 13281-13283 [E9-6703]
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Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Notices
13281
necessary or appropriate in furtherance
of the purposes of the Act.
Number SR–NYSEArca-2009–21 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Paper Comments
[Release No. 34–59601; File No. SR–CBOE–
2009–018]
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
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 7 and Rule
19b–4(f)(6) thereunder.8 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 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 9 and Rule 19b–4(f)(6)(iii)
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:
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
7 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied the pre-filing requirement.
• 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–NYSEArca-2009–21. 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 the filing also will be available
for inspection and copying at the
principal office of the self-regulatory
organization. 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–
NYSEArca-2009–21 and should be
submitted on or before April 16, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–6702 Filed 3–25–09; 8:45 am]
BILLING CODE
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Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of a
Proposed Rule Change Related to
Short Term Option Series
March 19, 2009.
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 March 13,
2009, the Chicago Board Options
Exchange, Incorporated (the ‘‘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
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 is proposing to make
permanent its Short Term Option Series
pilot program (the ‘‘Weeklys Program’’).
In addition, the Exchange is proposing
certain non-substantive changes to
reorganize its rule text related to the
Weeklys Program so that applicable
terms are located within a single section
of the relevant rules. Conforming, nonsubstantive changes are being proposed
to the text of the Exchange’s Quarterly
Option Series Pilot Program (the
‘‘Quarterlys Program’’). The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.org/Legal), at the Office of the
Secretary, CBOE and at the Commission.
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.
1 15
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2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On July 12, 2005, the Commission
approved the Weeklys Program.3 The
Weeklys Program allows CBOE to list
and trade Short Term Option Series,
which would expire one week after the
date on which a series is opened. Under
the Weeklys Program, CBOE can select
up to five approved option classes on
which Short Term Option Series could
be opened. If selected for the Weeklys
Program, the Exchange may open up to
twenty Short Term Option Series for
each expiration date in that class. The
strike price of each Short Term Option
Series are fixed at a price per share,
with approximately the same number of
strike prices above and below the value
of the underlying security or calculated
index value at about the time that the
Short Term Option Series is opened.4 If
the Exchange opens less than twenty
Short Term Option Series for a given
expiration date, additional series may be
opened for trading on the Exchange
when the Exchange deems it necessary
to maintain an orderly market, to meet
customer demand or when the current
value of the underlying security or
index moves substantially from the
exercise price or prices of the series
already opened. In any event, the total
number of series for a given expiration
date will not exceed twenty series.
The Exchange has selected the
following four options classes to
3 See Securities Exchange Act Release No. 52011
(July 12, 2005), 70 FR 41451 (July 19, 2005) (SR–
CBOE–2004–63) (‘‘Weeklys Program Approval
Order’’). The Weeklys Program has since been
extended and is currently scheduled to expire on
July 12, 2009. See Securities Exchange Act Release
No. 53984 (June 14, 2006), 71 FR 35718 (June 21,
2006) (SR–CBOE–2006–48) (immediately effective
rule change extending the Weeklys Program, which
would have otherwise expired on July 12, 2006,
through July 12, 2007), 56050 (July 11, 2007), 72 FR
39472 (July 18, 2007) (SR–CBOE–2007–76)
(immediately effective rule change extending the
Weeklys Program through July 12, 2008); and 58094
(July 3, 2008), 73 FR 40000 (July 11, 2008) (SR–
CBOE–2008–70) (immediately effective rule change
extending the Weeklys Program through July 12,
2009); see also Securities Exchange Act Release
Nos. 54338 (August 21, 2006), 71 FR 50952 (August
28, 2006) (SR–CBOE–2006–49) (order approving an
amendment to the Weeklys Program that increased
the number of series that may be listed for a class
selected to participate in the Weeklys Program from
five series to seven series), and 58870 (October 28,
2008), 73 FR 65430 (November 3, 2008) (SR–CBOE–
2008–110) (immediately effective rule change
increasing the number of series that may be listed
for a classes selected to participate in the Weeklys
Program from seven series to twenty series).
4 For example, if seven series are initially opened,
there will be at least three strike prices above and
three strike prices below the value of the underlying
security or calculated index value.
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20:28 Mar 25, 2009
Jkt 217001
participate in the Weeklys Program: S&P
500 Index options (SPX), S&P 100 Index
American-style options (OEX), MiniS&P 500 Index options (XSP), and S&P
100 Index European-style options
(XEO). CBOE believes the Weeklys
Program has been successful and well
received by its members and the
investing public for the nearly four
years that it has been in operation as a
pilot.
CBOE is now proposing to make the
Weeklys Program permanent. In support
of approving the Weeklys Program on a
permanent basis, and as required by the
Weeklys Program Approval Order, the
Exchange has submitted to the
Commission a Weeklys Program report
(the ‘‘Report’’) detailing the Exchange’s
experience with the Weeklys Program.
Specifically, the Report contains data
and written analysis regarding the four
options classes included in the Weeklys
Program. The Report was submitted
under separate cover and seeks
confidential treatment under the
Freedom of Information Act.
The Exchange believes there is
sufficient investor interest and demand
in the Weeklys Program to warrant its
permanent approval. The Exchange
believes that, for the nearly four years
that it has been in operation, the
Weeklys Program has provided
investors with additional means of
managing their risk exposures and
carrying out their investment objectives.
Furthermore, the Exchange has not
experienced any capacity-related
problems with respect to Short Term
Option Series. The Exchange also
represents that is has the necessary
system capacity to continue to support
the option series listed under the
Weeklys Program.
In seeking permanent approval, the
Exchange is taking this opportunity to
propose certain non-substantive changes
to reorganize the rule text related to the
Weeklys Program so that applicable
terms are located within a single section
of Rules 5.5, and 24.9. Conforming, nonsubstantive changes are being proposed
to the text of the Exchange’s Quarterlys
Program. The revisions do not change
the substance of either the Weeklys
Program or the Quarterlys Program.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act 5
and the rules and regulations
thereunder and, in particular, the
requirements of Section 6(b) of the Act.6
Specifically, the Exchange believes the
proposed rule change is consistent with
5 15
6 15
PO 00000
U.S.C. 78s(b)(1).
U.S.C. 78f(b).
Frm 00110
Fmt 4703
the Section 6(b)(5) 7 requirements that
the rules of an exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts, to remove
impediments to and to perfect the
mechanism for a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. The Exchange believes
that permanent approval of the Weeklys
Program will result in an ongoing
benefit to investors, and will continue to
allow them additional means to manage
their risk exposures and carry out their
investment objectives.
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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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
7 15
Sfmt 4703
U.S.C. 78f(b)(5).
E:\FR\FM\26MRN1.SGM
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Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Notices
Number SR–CBOE–018 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–59605; File No. SR–FINRA–
2008–055]
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of
Amendment No. 1 and Order Granting
Accelerated Approval to a Proposed
All submissions should refer to File
Rule Change, as Modified by
Number SR–CBOE–2009–018. This file
Amendment No. 1, To Adopt FINRA
number should be included on the
Rule 2114 (Recommendations to
subject line if e-mail is used. To help the Customers in OTC Equity Securities) in
Commission process and review your
the Consolidated FINRA Rulebook
comments more efficiently, please use
only one method. The Commission will March 19, 2009.
post all comments on the Commission’s I. Introduction
Internet Web site (https://www.sec.gov/
On November 4, 2008, the Financial
rules/sro.shtml). Copies of the
Industry Regulatory Authority, Inc.
submission, all subsequent
(‘‘FINRA’’) (f/k/a National Association
amendments, all written statements
of Securities Dealers, Inc. (‘‘NASD’’))
with respect to the proposed rule
filed with the Securities and Exchange
change that are filed with the
Commission (‘‘SEC’’ or ‘‘Commission’’),
Commission, and all written
pursuant to Section 19(b)(1) of the
communications relating to the
Securities Exchange Act of 1934
proposed rule change between the
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
Commission and any person, other than proposed rule change to adopt FINRA
those that may be withheld from the
Rule 2114 (Recommendations to
Customers in OTC Equity Securities) in
public in accordance with the
the consolidated FINRA Rulebook. The
provisions of 5 U.S.C. 552, will be
proposed rule change was published for
available for inspection and copying in
comment in the Federal Register on
the Commission’s Public Reference
December 10, 2008.3 The Commission
Room, on business days between the
received three comments in response to
hours of 10 a.m. and 3 p.m., located at
the proposed rule change.4 On February
100 F Street, NE., Washington, DC
13, 2009, FINRA filed Amendment No.
20549. Copies of such filing also will be
1 to amend the proposed rule change
available for inspection and copying at
5
the principal office of the Exchange. All and respond to the comment letters.
This order provides notice of the
comments received will be posted
proposed rule change, as modified by
without change; the Commission does
Amendment No. 1, and approves the
not edit personal identifying
proposed rule change as amended on an
information from submissions. You
accelerated basis.
should submit only information that
you wish to make available publicly. All II. Description of the Proposed Rule
Change
submissions should refer to File
Number SR–CBOE–2009–018 and
FINRA proposed to adopt NASD Rule
should be submitted on or before April
2315 (Recommendations to Customers
16, 2009.
in OTC Equity Securities) as FINRA
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–6703 Filed 3–25–09; 8:45 am]
BILLING CODE 8010–01–P
8 17
CFR 200.30–3(a)(12).
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1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 59075
(December 10, 2008), 73 FR 76429 (December 16,
2008) (SR–FINRA–2008–055) (‘‘Rulemaking
Notice’’).
4 See Ronald C. Long, Director of Regulatory
Affairs, Wachovia Securities LLC, dated December
9, 2008 (‘‘Wachovia Letter’’); Dale E. Brown, CAE,
President and CEO, Financial Services Institute,
dated January 6, 2009 (‘‘FSI Letter’’); and Amal Aly,
Esq., Managing Director and Associate General
Counsel, Securities Industry and Financial Markets
Association, dated January 6, 2009 (‘‘SIFMA
Letter’’).
5 Amendment No. 1 permits a General Securities
Sales Supervisor (i.e., a Series 8 or Series 9/10
qualified supervisor) to perform certain reviews the
proposed rule would otherwise have required a
Series 24 principal to perform or supervise.
2 17
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13283
Rule 2114 in the Consolidated FINRA
Rulebook, subject to certain
amendments including those contained
in Amendment No. 1 discussed further
below.
1. The Current Rule
NASD Rule 2315 is intended to
address potential fraud and abuse in
transactions involving securities not
listed on an exchange and certain other
higher risk securities. The rule
mandates that a member conduct a due
diligence review of an issuer’s current
financial and business information
before recommending a covered
security. The rule supplements existing
FINRA rules and the Federal securities
law, including suitability obligations
and the requirement that any
recommendation to a customer have a
reasonable basis. The rule requirements
go beyond the basic suitability
obligations to ensure that a registered
representative has, at a minimum,
confirmed the existence of and reviewed
essential information that reveals the
financial condition and business
prospects of these riskier issuers.
Specifically, the rule requires a
member to review ‘‘current financial
statements’’ and ‘‘current material
business information’’ before it
recommends the purchase or short sale
of those securities that are published or
quoted in a ‘‘quotation medium’’ and
are either (1) not listed on Nasdaq or a
national securities exchange or (2) are
listed on a regional securities exchange
and do not qualify for dissemination of
transaction reports via the Consolidated
Tape. Such securities may be more
susceptible to fraud and abuse because
they often are thinly capitalized or lack
the profitability, liquidity or available
business and financial information that
listing standards require. The rule does
not apply to recommendations to sell
long positions and also exempts certain
other transactions, including those with
an ‘‘institutional account’’ under NASD
Rule 3110(c)(4), a ‘‘qualified
institutional buyer’’ under Rule 144A of
the Securities Act of 1933 (‘‘Securities
Act’’), or a ‘‘qualified purchaser’’ under
Section 2(a)(51) of the Investment
Company Act of 1940.6
The rule defines ‘‘current financial
statements’’ to include balance sheets,
statements of profit and loss and
6 Among the other exemptions, the Rule’s
requirements also do not apply to transactions that
meet the requirements of Rule 504 of Regulation D
of the Securities Act; those involving a security of
an issuer with at least $50 million in total assets
and $10 million in shareholder’s equity; and those
involving a security with worldwide average daily
trading volume value of at least $100,000 during
each of the six months preceding the
recommendation.
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]]>Agencies
[Federal Register Volume 74, Number 57 (Thursday, March 26, 2009)]
[Notices]
[Pages 13281-13283]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-6703]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59601; File No. SR-CBOE-2009-018]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of a Proposed Rule Change Related to
Short Term Option Series
March 19, 2009.
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 March 13, 2009, the Chicago Board Options Exchange,
Incorporated (the ``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 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to make permanent its Short Term Option
Series pilot program (the ``Weeklys Program''). In addition, the
Exchange is proposing certain non-substantive changes to reorganize its
rule text related to the Weeklys Program so that applicable terms are
located within a single section of the relevant rules. Conforming, non-
substantive changes are being proposed to the text of the Exchange's
Quarterly Option Series Pilot Program (the ``Quarterlys Program''). The
text of the proposed rule change is available on the Exchange's Web
site (https://www.cboe.org/Legal), at the Office of the Secretary, CBOE
and at the Commission.
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 13282]]
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
On July 12, 2005, the Commission approved the Weeklys Program.\3\
The Weeklys Program allows CBOE to list and trade Short Term Option
Series, which would expire one week after the date on which a series is
opened. Under the Weeklys Program, CBOE can select up to five approved
option classes on which Short Term Option Series could be opened. If
selected for the Weeklys Program, the Exchange may open up to twenty
Short Term Option Series for each expiration date in that class. The
strike price of each Short Term Option Series are fixed at a price per
share, with approximately the same number of strike prices above and
below the value of the underlying security or calculated index value at
about the time that the Short Term Option Series is opened.\4\ If the
Exchange opens less than twenty Short Term Option Series for a given
expiration date, additional series may be opened for trading on the
Exchange when the Exchange deems it necessary to maintain an orderly
market, to meet customer demand or when the current value of the
underlying security or index moves substantially from the exercise
price or prices of the series already opened. In any event, the total
number of series for a given expiration date will not exceed twenty
series.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 52011 (July 12,
2005), 70 FR 41451 (July 19, 2005) (SR-CBOE-2004-63) (``Weeklys
Program Approval Order''). The Weeklys Program has since been
extended and is currently scheduled to expire on July 12, 2009. See
Securities Exchange Act Release No. 53984 (June 14, 2006), 71 FR
35718 (June 21, 2006) (SR-CBOE-2006-48) (immediately effective rule
change extending the Weeklys Program, which would have otherwise
expired on July 12, 2006, through July 12, 2007), 56050 (July 11,
2007), 72 FR 39472 (July 18, 2007) (SR-CBOE-2007-76) (immediately
effective rule change extending the Weeklys Program through July 12,
2008); and 58094 (July 3, 2008), 73 FR 40000 (July 11, 2008) (SR-
CBOE-2008-70) (immediately effective rule change extending the
Weeklys Program through July 12, 2009); see also Securities Exchange
Act Release Nos. 54338 (August 21, 2006), 71 FR 50952 (August 28,
2006) (SR-CBOE-2006-49) (order approving an amendment to the Weeklys
Program that increased the number of series that may be listed for a
class selected to participate in the Weeklys Program from five
series to seven series), and 58870 (October 28, 2008), 73 FR 65430
(November 3, 2008) (SR-CBOE-2008-110) (immediately effective rule
change increasing the number of series that may be listed for a
classes selected to participate in the Weeklys Program from seven
series to twenty series).
\4\ For example, if seven series are initially opened, there
will be at least three strike prices above and three strike prices
below the value of the underlying security or calculated index
value.
---------------------------------------------------------------------------
The Exchange has selected the following four options classes to
participate in the Weeklys Program: S&P 500 Index options (SPX), S&P
100 Index American-style options (OEX), Mini-S&P 500 Index options
(XSP), and S&P 100 Index European-style options (XEO). CBOE believes
the Weeklys Program has been successful and well received by its
members and the investing public for the nearly four years that it has
been in operation as a pilot.
CBOE is now proposing to make the Weeklys Program permanent. In
support of approving the Weeklys Program on a permanent basis, and as
required by the Weeklys Program Approval Order, the Exchange has
submitted to the Commission a Weeklys Program report (the ``Report'')
detailing the Exchange's experience with the Weeklys Program.
Specifically, the Report contains data and written analysis regarding
the four options classes included in the Weeklys Program. The Report
was submitted under separate cover and seeks confidential treatment
under the Freedom of Information Act.
The Exchange believes there is sufficient investor interest and
demand in the Weeklys Program to warrant its permanent approval. The
Exchange believes that, for the nearly four years that it has been in
operation, the Weeklys Program has provided investors with additional
means of managing their risk exposures and carrying out their
investment objectives. Furthermore, the Exchange has not experienced
any capacity-related problems with respect to Short Term Option Series.
The Exchange also represents that is has the necessary system capacity
to continue to support the option series listed under the Weeklys
Program.
In seeking permanent approval, the Exchange is taking this
opportunity to propose certain non-substantive changes to reorganize
the rule text related to the Weeklys Program so that applicable terms
are located within a single section of Rules 5.5, and 24.9. Conforming,
non-substantive changes are being proposed to the text of the
Exchange's Quarterlys Program. The revisions do not change the
substance of either the Weeklys Program or the Quarterlys Program.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act \5\ and the rules and regulations thereunder and, in
particular, the requirements of Section 6(b) of the Act.\6\
Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \7\ requirements that the rules of
an exchange be designed to promote just and equitable principles of
trade, to prevent fraudulent and manipulative acts, to remove
impediments to and to perfect the mechanism for a free and open market
and a national market system, and, in general, to protect investors and
the public interest. The Exchange believes that permanent approval of
the Weeklys Program will result in an ongoing benefit to investors, and
will continue to allow them additional means to manage their risk
exposures and carry out their investment objectives.
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\5\ 15 U.S.C. 78s(b)(1).
\6\ 15 U.S.C. 78f(b).
\7\ 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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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
[[Page 13283]]
Number SR-CBOE-018 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-2009-018. 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, on business days
between the hours of 10 a.m. and 3 p.m., located at 100 F Street, NE.,
Washington, DC 20549. 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 Number SR-CBOE-2009-018 and should be
submitted on or before April 16, 2009.
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\8\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-6703 Filed 3-25-09; 8:45 am]
BILLING CODE 8010-01-P
