Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Change the Close of Trading Hours on the Last Day of Trading in Expiring Quarterly Index Expirations, 16018-16020 [E9-7974]
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16018
Federal Register / Vol. 74, No. 66 / Wednesday, April 8, 2009 / Notices
vendors under Section 603(a)(2) of
Regulation NMS.
NYSE OpenBook is subject to
significant competitive forces and the
establishment of the Monthly Maximum
represents a response to that
competition. As the Exchange stated in
the Unit of Count Filing, the Exchange
competes intensely for order flow,
competing with the other 10 national
securities exchanges, with ECNs, with
quotes posted in FINRA’s ADF and
TRFs, with alternative trading systems,
and with securities firms that primarily
trade as principal with their customer
order flow. The competition is free
produce [sic] depth-of-book products,
and Nasdaq, NYSE Arca, and BATS are
among those who currently do.
In addition, the Exchange believes
that no substantial countervailing bases
exists to support a finding that the
Monthly Maximum for NYSE OpenBook
fails to meet the requirement of the Act.
In sum, the Exchange believes that the
proposed Monthly Maximum is fair and
reasonable.
2. Statutory Basis
The bases under the Act for this
proposed rule change are the
requirement under Section 6(b)(4) 4 that
an exchange have rules that provide for
the equitable allocation of reasonable
dues, fees and other charges among its
members and other persons using its
facilities and the requirements under
Section 6(b)(5) 5 that the rules of an
exchange be designed to promote just
and equitable principles of trade and to
remove impediments to, and perfect the
mechanism of, a free and open market
and a national market system.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
rwilkins on PROD1PC63 with NOTICES
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)
4 15
5 15
U.S.C. 78f(b)(4).
U.S.C. 78f(b)(5).
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17:05 Apr 07, 2009
Jkt 217001
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 Exchange consents,
the Commission will:
(A) By order approve the 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
No. SR–NYSE–2009–37 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 SR–NYSE–2009–37. 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 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 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
PO 00000
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available publicly. All submissions
should refer to File Number SR–NYSE–
2009–37 and should be submitted on or
before April 29, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–7868 Filed 4–7–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59676; File No. SR–CBOE–
2009–020]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Change the Close of
Trading Hours on the Last Day of
Trading in Expiring Quarterly Index
Expirations
April 1, 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 18,
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
CBOE proposes to amend Rule 24.6 to
change the close of trading hours from
3:15 p.m. (Chicago time) to 3 p.m.
(Chicago time) on the last day of trading
in expiring Quarterly Index Expirations
(‘‘QIXs’’). The filing also proposes to
amend Rule 24.9(c) by adding the MiniSPX Index to the list of broad-based
indices on which the Exchange may list
QIXs. In addition, the filing proposes to
amend Rule 24.9 by making technical
6 17
CFR 200.30–3(a)(12).
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).
1 15
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Federal Register / Vol. 74, No. 66 / Wednesday, April 8, 2009 / Notices
changes that add the Mini-SPX Index to
the lists of European-style exercise and
A.M. settled options approved for
trading on the Exchange. The text of the
rule proposal 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.
rwilkins on PROD1PC63 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to amend Rule 24.6 to change
the close of trading hours from 3:15 p.m.
(Chicago time) to 3 p.m. (Chicago time)
on the last day of trading in expiring
Quarterly Index Expirations (‘‘QIXs’’).
The Exchange proposes that the change
to the close of trading hours on the last
trading day applies to all outstanding
expiring QIXs that expire at the end of
the second calendar quarter in 2009 and
thereafter.
QIXs were introduced in 1993 and are
separate from the Quarterly Option
Series Pilot Program provided for in
Rule 5.5 and 24.9.5 QIXs are cash-settled
options on certain specified broad-based
indices that expire on the first business
day of the month following the end of
a calendar quarter.6 QIXs trade
simultaneously with, not independent
of, traditional options on the same
underlying index. QIXs are subject to
the same rules that currently govern the
trading of traditional index options,
including sales practice rules, margin
requirements, and floor trading
proceedings. Contract terms for QIXs are
similar to traditional index options,
with one general exception: the exercise
settlement value is based on the index
value derived from the closing prices of
5 See
Securities and Exchange Act Release No.
31800 (February 1, 1993), 58 FR 7274 (February 5,
1993) (SR–CBOE–92–13) (QIX approval order).
6 See id. and Rule 24.9(c).
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17:05 Apr 07, 2009
Jkt 217001
component stocks. In addition, the
contract multiplier for QIXs may be set
at 500 rather than the customary 100.
Positions in QIXs are aggregated with
option contracts on the same broadbased index and are subject to the
applicable overall position limit.7
Generally, QIXs are priced in the
market based on corresponding futures
values. On the last day of trading, the
closing prices of the component stocks
(which are used to derive the exercise
settlement value) are known at 3 p.m.
(Chicago time) (or soon after) when the
equity markets close. Despite the fact
that the exercise settlement value is
fixed after 3 p.m. (Chicago time), trading
in expiring QIXs continues, however,
for an additional fifteen minutes until
3:15 p.m. (Chicago time) and are not
priced on corresponding futures values,
but rather the known cash value. At the
same time, the prices of non-expiring
QIX series continue to move and be
priced in response to changes in
corresponding futures prices.
Because of the pricing divergence that
occurs between 3 and 3:15 p.m. on the
final trading day in expiring QIXs (e.g.,
switch from pricing off of futures to
cash), the Exchange believes that there
is a risk to allow investors to continue
trading expiring QIX contracts after 3
p.m. (Chicago time) on the last day of
trading. As a result, the Exchange seeks
to remedy any confusion by changing
the close of trading hours from 3:15 p.m.
(Chicago time) to 3 p.m. (Chicago time)
for expiring QIXs on the last day of
trading.
It is expected that other options
exchanges that have adopted QIX rules
will submit similar proposals.
The Exchange is also proposing to
amend Rule 24.9(c) by adding the MiniSPX Index to the list of broad-based
indices on which the Exchange may list
QIXs, which offers an additional
method of tailoring portfolio hedges that
expires on the last day of the calendar
quarter. Finally, the Exchange is
proposing to amend Rule 24.9 by
making technical changes that add the
Mini-SPX Index to the lists of Europeanstyle exercise and A.M. settled options
approved for trading on the Exchange.8
7 See
Rule 24.4(b).
the original filing to list and trade Mini-SPX
Index options, the Exchange inadvertently omitted
to add the Mini SPX-Index to the lists of Europeanstyle exercise and A.M settled options approved for
trading on the Exchange. See Securities Exchange
Act Release No. 32893 (September 14, 1993) 58 FR
49070 (September 21, 1993) (SR–CBOE–93–12)
(Mini-SPX Index option approval order). Options
on the reduced-value version of the Standard &
Poor’s S&P 500 Stock Index are known as ‘‘MiniSPX Index options.’’
8 In
PO 00000
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16019
2. Statutory Basis
Because the Exchange believes that
the current rule proposal will lessen
investor confusion, the Exchange
believes the rule proposal is consistent
with the Act and the rules and
regulations under the Act applicable to
a national securities exchange and, in
particular, the requirements of Section
6(b) of the Act.9 Specifically, the
Exchange believes that the proposed
rule change is consistent with the
Section 6(b)(5) Act 10 requirements that
the rules of an exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts and, in general, to
protect investors and the public interest.
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 foregoing proposed rule
does not (i) significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate if
consistent with the protection of
investors and the public interest,
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,11 the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 12 and
Rule 19b–4(f)(6) thereunder.13 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
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 The Exchange has fulfilled this requirement.
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(6).
10 15
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16020
Federal Register / Vol. 74, No. 66 / Wednesday, April 8, 2009 / Notices
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–7974 Filed 4–7–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59696; File No. SR–FINRA–
2009–020]
rwilkins on PROD1PC63 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–2009–020 on the
subject line.
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of
Proposed Rule Change Relating to the
FINRA Regulation Board Composition
and Conforming Changes to the FINRA
Regulation By-Laws
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–2009–020. 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–2009–020 and
should be submitted on or before
April 29, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 27,
2009, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) (f/k/a
National Association of Securities
Dealers, Inc. (‘‘NASD’’)) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III below, which Items have been
prepared by FINRA. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
VerDate Nov<24>2008
17:05 Apr 07, 2009
Jkt 217001
April 2, 2009.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to amend the ByLaws of FINRA’s regulatory subsidiary
(‘‘FINRA Regulation’’) to modify the
FINRA Regulation Board (‘‘FINRA
Regulation Board’’) composition, to
adopt changes to conform the FINRA
Regulation By-Laws to the FINRA ByLaws, and to reflect the corporate name
change and similar matters.
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA included statements concerning
the purpose of and basis for the
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00108
Fmt 4703
Sfmt 4703
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. FINRA 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
Background on FINRA and Its
Regulatory Subsidiary
On July 30, 2007, NASD and the New
York Stock Exchange consolidated their
member firm regulation operations into
a combined organization, FINRA. As
part of the consolidation, the SEC
approved amendments to the NASD ByLaws to implement governance and
related changes.3 The approved changes
included a FINRA Board governance
structure that balanced public and
industry representation and designated
seven governor seats to represent
member firms of various sizes based on
the criteria of firm size.
FINRA Regulation (formerly known as
NASD Regulation) is a subsidiary of
FINRA that operates according to the
Plan of Allocation and Delegation of
Functions by NASD to Subsidiaries, as
amended, which NASD adopted first in
1996 when it formed NASD Regulation.
FINRA Regulation’s By-Laws were not
amended at the time of the
consolidation, other than in a few
sections where those By-Laws conflicted
with the new FINRA By-Laws. On
November 6, 2008, the Commission
approved a proposed rule change to
amend Articles I, II, III, V, VI, VII, IX,
X and XIII, Section 4.16 of Article IV,
and all of Article VIII except Section 8.7
and all of Article XII except Section
12.3, to realign the representation of
industry members on the National
Adjudicatory Council to follow more
closely the categories of industry
representation on the FINRA Board. See
SR–FINRA 2008–046, Securities
Exchange Act Release No. 58909
(November 6, 2008), 73 FR 68467
(November 18, 2008).
Changes to the FINRA Regulation Board
Composition To Parallel the FINRA
Board
The proposed rule change would
make limited modifications to Article IV
3 See Securities Exchange Act Release No. 56145
(July 26, 2007), 72 FR 42169 (August 1, 2007), as
amended by Securities Exchange Act Release No.
56145A (May 30, 2008), 73 FR 32377 (June 6, 2008)
(File No. SR–NASD–2007–023).
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]]>Agencies
[Federal Register Volume 74, Number 66 (Wednesday, April 8, 2009)]
[Notices]
[Pages 16018-16020]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-7974]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59676; File No. SR-CBOE-2009-020]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Change the Close of Trading Hours on the Last Day of
Trading in Expiring Quarterly Index Expirations
April 1, 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 18, 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
CBOE proposes to amend Rule 24.6 to change the close of trading
hours from 3:15 p.m. (Chicago time) to 3 p.m. (Chicago time) on the
last day of trading in expiring Quarterly Index Expirations (``QIXs'').
The filing also proposes to amend Rule 24.9(c) by adding the Mini-SPX
Index to the list of broad-based indices on which the Exchange may list
QIXs. In addition, the filing proposes to amend Rule 24.9 by making
technical
[[Page 16019]]
changes that add the Mini-SPX Index to the lists of European-style
exercise and A.M. settled options approved for trading on the Exchange.
The text of the rule proposal 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this proposed rule change is to amend Rule 24.6 to
change the close of trading hours from 3:15 p.m. (Chicago time) to 3
p.m. (Chicago time) on the last day of trading in expiring Quarterly
Index Expirations (``QIXs''). The Exchange proposes that the change to
the close of trading hours on the last trading day applies to all
outstanding expiring QIXs that expire at the end of the second calendar
quarter in 2009 and thereafter.
QIXs were introduced in 1993 and are separate from the Quarterly
Option Series Pilot Program provided for in Rule 5.5 and 24.9.\5\ QIXs
are cash-settled options on certain specified broad-based indices that
expire on the first business day of the month following the end of a
calendar quarter.\6\ QIXs trade simultaneously with, not independent
of, traditional options on the same underlying index. QIXs are subject
to the same rules that currently govern the trading of traditional
index options, including sales practice rules, margin requirements, and
floor trading proceedings. Contract terms for QIXs are similar to
traditional index options, with one general exception: the exercise
settlement value is based on the index value derived from the closing
prices of component stocks. In addition, the contract multiplier for
QIXs may be set at 500 rather than the customary 100. Positions in QIXs
are aggregated with option contracts on the same broad-based index and
are subject to the applicable overall position limit.\7\
---------------------------------------------------------------------------
\5\ See Securities and Exchange Act Release No. 31800 (February
1, 1993), 58 FR 7274 (February 5, 1993) (SR-CBOE-92-13) (QIX
approval order).
\6\ See id. and Rule 24.9(c).
\7\ See Rule 24.4(b).
---------------------------------------------------------------------------
Generally, QIXs are priced in the market based on corresponding
futures values. On the last day of trading, the closing prices of the
component stocks (which are used to derive the exercise settlement
value) are known at 3 p.m. (Chicago time) (or soon after) when the
equity markets close. Despite the fact that the exercise settlement
value is fixed after 3 p.m. (Chicago time), trading in expiring QIXs
continues, however, for an additional fifteen minutes until 3:15 p.m.
(Chicago time) and are not priced on corresponding futures values, but
rather the known cash value. At the same time, the prices of non-
expiring QIX series continue to move and be priced in response to
changes in corresponding futures prices.
Because of the pricing divergence that occurs between 3 and 3:15
p.m. on the final trading day in expiring QIXs (e.g., switch from
pricing off of futures to cash), the Exchange believes that there is a
risk to allow investors to continue trading expiring QIX contracts
after 3 p.m. (Chicago time) on the last day of trading. As a result,
the Exchange seeks to remedy any confusion by changing the close of
trading hours from 3:15 p.m. (Chicago time) to 3 p.m. (Chicago time)
for expiring QIXs on the last day of trading.
It is expected that other options exchanges that have adopted QIX
rules will submit similar proposals.
The Exchange is also proposing to amend Rule 24.9(c) by adding the
Mini-SPX Index to the list of broad-based indices on which the Exchange
may list QIXs, which offers an additional method of tailoring portfolio
hedges that expires on the last day of the calendar quarter. Finally,
the Exchange is proposing to amend Rule 24.9 by making technical
changes that add the Mini-SPX Index to the lists of European-style
exercise and A.M. settled options approved for trading on the
Exchange.\8\
---------------------------------------------------------------------------
\8\ In the original filing to list and trade Mini-SPX Index
options, the Exchange inadvertently omitted to add the Mini SPX-
Index to the lists of European-style exercise and A.M settled
options approved for trading on the Exchange. See Securities
Exchange Act Release No. 32893 (September 14, 1993) 58 FR 49070
(September 21, 1993) (SR-CBOE-93-12) (Mini-SPX Index option approval
order). Options on the reduced-value version of the Standard &
Poor's S&P 500 Stock Index are known as ``Mini-SPX Index options.''
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2. Statutory Basis
Because the Exchange believes that the current rule proposal will
lessen investor confusion, the Exchange believes the rule proposal is
consistent with the Act and the rules and regulations under the Act
applicable to a national securities exchange and, in particular, the
requirements of Section 6(b) of the Act.\9\ Specifically, the Exchange
believes that the proposed rule change is consistent with the Section
6(b)(5) Act \10\ requirements that the rules of an exchange be designed
to promote just and equitable principles of trade, to prevent
fraudulent and manipulative acts and, in general, to protect investors
and the public interest.
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\9\ 15 U.S.C. 78f(b).
\10\ 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 foregoing proposed rule does not (i) significantly
affect the protection of investors or the public interest; (ii) impose
any significant burden on competition; and (iii) become operative for
30 days from the date on which it was filed, or such shorter time as
the Commission may designate if consistent with the protection of
investors and the public interest, 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,\11\ the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(6) thereunder.\13\ 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
[[Page 16020]]
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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\11\ The Exchange has fulfilled this requirement.
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
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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-2009-020 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-2009-020. 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-2009-020 and should be
submitted on or before April 29, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-7974 Filed 4-7-09; 8:45 am]
BILLING CODE 8010-01-P
