Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Approving Proposed Rule Change To Permanently Establish the Short Term Option Series Pilot Program, 20518-20519 [E9-10120]

Download as PDF 20518 Federal Register / Vol. 74, No. 84 / Monday, May 4, 2009 / Notices 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. tjames on PRODPC75 with NOTICES 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 11 and Rule 19b–4(f)(6) thereunder.12 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 and Rule 19b–4(f)(6)(iii) thereunder.13 At any time within 60 days of the filing of the 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. ‘‘Act’’), in general, and furthers the objectives of Section 6(b)(5) of the Act, in particular in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Exchange believes that the proposed amendment is consistent with the investor protection objectives of the Act in that it harmonizes the Exchange’s immediate release policies with the SEC’s requirements in Regulation FD. 11 15 U.S.C. 78s(b)(3)(A)(iii). 12 17 CFR 240.19b–4(f)(6). 13 The Commission notes that pursuant to Rule 19b–4(f)(6)(iii) under the Act, the Exchange is required to give the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five 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 this requirement. VerDate Nov<24>2008 15:26 May 01, 2009 Jkt 217001 IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NYSE–2009–40 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. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–10119 Filed 5–1–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–59824; File No. SR–CBOE– 2009–018] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Approving Proposed Rule Change To Permanently Establish the Short Term Option Series Pilot Program April 27, 2009. On March 13, 2009, the Chicago Board Options Exchange, Incorporated (‘‘Exchange’’ or ‘‘CBOE’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act All submissions should refer to File of 1934 (‘‘Act’’),1 and Rule 19b–4 Number SR–NYSE–2009–40. This file thereunder,2 a proposed rule change to number should be included on the permanently establish its Short Term subject line if e-mail is used. To help the Option Series pilot program (the Commission process and review your ‘‘Weeklys Program’’). The proposed rule comments more efficiently, please use change was published for comment in only one method. The Commission will the Federal Register on March 26, post all comments on the Commission’s 2009.3 The Commission received no Internet Web site (https://www.sec.gov/ comment letters on the proposed rule rules/sro.shtml). Copies of the change. This order approves the submission, all subsequent proposed rule change. amendments, all written statements The Commission approved the Weeklys Program on a pilot basis on with respect to the proposed rule July 12, 2005.4 The proposed rule change that are filed with the change permanently establishes the Commission, and all written Weeklys Program. The proposal also communications relating to the consolidates the subsections of Rules proposed rule change between the Commission and any person, other than 5.5 and 24.9 and make conforming, nonthose that may be withheld from the 14 17 CFR 200.30–3(a)(12). public in accordance with the 1 15 U.S.C. 78s(b)(1). provisions of 5 U.S.C. 552, will be 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 59601 available for inspection and copying in (March 19, 2009), 74 FR 13281. the Commission’s Public Reference 4 See Securities Exchange Act Release No. 52011 Room, on official business days between (July 12, 2005), 70 FR 41451 (July 19, 2005) (SR– the hours of 10 a.m. and 3 p.m. Copies CBOE–2004–63) (‘‘Weeklys Pilot Program Approval of the filing also will be available for Order’’). The Weeklys Program has since been extended and is currently scheduled to expire on inspection and copying at the principal July 12, 2009. See Securities Exchange Act Release office of the Exchange. All comments Nos. 53984 (June 14, 2006), 71 FR 35718 (June 21, received will be posted without change; 2006) (SR–CBOE–2006–48), 56050 (July 11, 2007), 72 FR 39472 (July 18, 2007) (SR–CBOE–2007–76); the Commission does not edit personal and 58094 (July 3, 2008), 73 FR 40000 (July 11, identifying information from 2008) (SR–CBOE–2008–70). See also Securities submissions. You should submit only Exchange Act Release Nos. 54338 (August 21, 2006), 71 FR 50952 (August 28, 2006) (SR–CBOE– information that you wish to make 2006–49) (order approving an increase in the available publicly. All submissions number of series that may be listed for a class should refer to File Number SR–NYSE– selected to participate in the Weeklys Program from 2009–40 and should be submitted on or five to seven) and 58870 (October 28, 2008), 73 FR 65430 (November 3, 2008) (SR–CBOE–2008–110) before May 26, 2009. PO 00000 (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 20 series). Frm 00069 Fmt 4703 Sfmt 4703 E:\FR\FM\04MYN1.SGM 04MYN1 tjames on PRODPC75 with NOTICES Federal Register / Vol. 74, No. 84 / Monday, May 4, 2009 / Notices substantive changes to the rule text related to the Exchange’s Quarterly Option Series Pilot Program. The Weeklys Program allows CBOE to list and trade Short Term Option Series, which expire one week after the date on which a series is opened. Under the Weeklys Program, CBOE may select up to five approved option classes on which Short Term Option Series could be opened. For each class selected for the Weeklys Program, the Exchange may open up to 20 Short Term Option Series for each expiration date in that class, 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. If the Exchange opens less than 20 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 previously listed exercise prices. In any event, the total number of series for a given expiration date will not exceed 20 series. 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); MiniS&P 500 Index options (XSP); and S&P 100 Index European-style options (XEO). In support of its proposal seeking permanent approval of the Weeklys Program, and as required by the Weeklys Pilot Program Approval Order, the Exchange submitted to the Commission a report on the Weeklys Program (the ‘‘Report’’) detailing the Exchange’s experience with the Weeklys Program. In addition to the Report, the Exchange represented that it has not experienced any capacity-related problems with respect to Short Term Option Series, and also that it has the necessary system capacity to continue to support the option series listed under the Weeklys Program. After careful review, the Commission finds that the proposal is consistent with the Act and the rules and regulations thereunder applicable to a national securities exchange,5 and, in particular, the requirements of Section 6(b)(5) of the Act,6 which requires, among other things, that the rules of a 5 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 6 15 U.S.C. 78f(b)(5). VerDate Nov<24>2008 15:26 May 01, 2009 Jkt 217001 national securities exchange be designed to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. The Commission finds that the Weeklys Program, as evidenced by the Report, has furthered the public interest by offering investors an alternative means of managing their risk exposures and carrying out their investment objectives. The Commission notes CBOE’s representation that there is sufficient investor interest and demand in the Weeklys Program to warrant its permanent approval. The Commission further notes CBOE’s representations that it has not experienced any capacityrelated problems with respect to Short Term Option Series, and that the Exchange has the necessary system capacity to continue to support the option series listed under the Weeklys Program. Accordingly, the Commission finds that the proposed Weeklys Program strikes a reasonable balance between the Exchange’s desire to offer a wider array of investment opportunities and the need to avoid the unnecessary proliferation of option series that could compromise systems capacity. The Commission expects CBOE to continue to monitor the trading and quotation volume associated with the Weeklys Program, and the effect the Weeklys Program has on the capacity of the Exchange’s, OPRA’s, and vendors’ systems. It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change (SR–CBOE–2009– 018) be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–10120 Filed 5–1–09; 8:45 am] BILLING CODE 8010–01–P 20519 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–59836; File No. SR–FINRA– 2009–011] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto To Amend the Panel Composition Rules of the Code of Arbitration Procedure for Industry Disputes April 28, 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 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’’) on March 4, 2009 the proposed rule change as described in Items I, II, and III below, which Items have been substantially prepared by FINRA. On April 7, 2009, FINRA filed Amendment No. 1 to the proposed rule change.3 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change FINRA is proposing to amend the Code of Arbitration Procedure for Industry Disputes (‘‘Industry Code’’) to change the criteria for determining the panel composition when the claim involves an associated person in industry disputes. 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 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, 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Amendment No. 1 replaces and supersedes the initial filing in its entirety. 2 17 7 17 PO 00000 CFR 200.30–3(a)(12). Frm 00070 Fmt 4703 Sfmt 4703 E:\FR\FM\04MYN1.SGM 04MYN1

Agencies

[Federal Register Volume 74, Number 84 (Monday, May 4, 2009)]
[Notices]
[Pages 20518-20519]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-10120]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59824; File No. SR-CBOE-2009-018]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Approving Proposed Rule Change To Permanently 
Establish the Short Term Option Series Pilot Program

April 27, 2009.
    On March 13, 2009, the Chicago Board Options Exchange, Incorporated 
(``Exchange'' or ``CBOE'') filed with the Securities and Exchange 
Commission (``Commission''), pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to permanently establish its 
Short Term Option Series pilot program (the ``Weeklys Program''). The 
proposed rule change was published for comment in the Federal Register 
on March 26, 2009.\3\ The Commission received no comment letters on the 
proposed rule change. This order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 59601 (March 19, 
2009), 74 FR 13281.
---------------------------------------------------------------------------

    The Commission approved the Weeklys Program on a pilot basis on 
July 12, 2005.\4\ The proposed rule change permanently establishes the 
Weeklys Program. The proposal also consolidates the subsections of 
Rules 5.5 and 24.9 and make conforming, non-

[[Page 20519]]

substantive changes to the rule text related to the Exchange's 
Quarterly Option Series Pilot Program.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 52011 (July 12, 
2005), 70 FR 41451 (July 19, 2005) (SR-CBOE-2004-63) (``Weeklys 
Pilot 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 Nos. 53984 (June 14, 2006), 71 FR 
35718 (June 21, 2006) (SR-CBOE-2006-48), 56050 (July 11, 2007), 72 
FR 39472 (July 18, 2007) (SR-CBOE-2007-76); and 58094 (July 3, 
2008), 73 FR 40000 (July 11, 2008) (SR-CBOE-2008-70). See also 
Securities Exchange Act Release Nos. 54338 (August 21, 2006), 71 FR 
50952 (August 28, 2006) (SR-CBOE-2006-49) (order approving an 
increase in the number of series that may be listed for a class 
selected to participate in the Weeklys Program from five to seven) 
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 20 series).
---------------------------------------------------------------------------

    The Weeklys Program allows CBOE to list and trade Short Term Option 
Series, which expire one week after the date on which a series is 
opened. Under the Weeklys Program, CBOE may select up to five approved 
option classes on which Short Term Option Series could be opened. For 
each class selected for the Weeklys Program, the Exchange may open up 
to 20 Short Term Option Series for each expiration date in that class, 
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. If the Exchange opens 
less than 20 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 previously listed exercise 
prices. In any event, the total number of series for a given expiration 
date will not exceed 20 series.
    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).
    In support of its proposal seeking permanent approval of the 
Weeklys Program, and as required by the Weeklys Pilot Program Approval 
Order, the Exchange submitted to the Commission a report on the Weeklys 
Program (the ``Report'') detailing the Exchange's experience with the 
Weeklys Program. In addition to the Report, the Exchange represented 
that it has not experienced any capacity-related problems with respect 
to Short Term Option Series, and also that it has the necessary system 
capacity to continue to support the option series listed under the 
Weeklys Program.
    After careful review, the Commission finds that the proposal is 
consistent with the Act and the rules and regulations thereunder 
applicable to a national securities exchange,\5\ and, in particular, 
the requirements of Section 6(b)(5) of the Act,\6\ which requires, 
among other things, that the rules of a national securities exchange be 
designed 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.
---------------------------------------------------------------------------

    \5\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission finds that the Weeklys Program, as evidenced by the 
Report, has furthered the public interest by offering investors an 
alternative means of managing their risk exposures and carrying out 
their investment objectives. The Commission notes CBOE's representation 
that there is sufficient investor interest and demand in the Weeklys 
Program to warrant its permanent approval. The Commission further notes 
CBOE's representations that it has not experienced any capacity-related 
problems with respect to Short Term Option Series, and that the 
Exchange has the necessary system capacity to continue to support the 
option series listed under the Weeklys Program. Accordingly, the 
Commission finds that the proposed Weeklys Program strikes a reasonable 
balance between the Exchange's desire to offer a wider array of 
investment opportunities and the need to avoid the unnecessary 
proliferation of option series that could compromise systems capacity. 
The Commission expects CBOE to continue to monitor the trading and 
quotation volume associated with the Weeklys Program, and the effect 
the Weeklys Program has on the capacity of the Exchange's, OPRA's, and 
vendors' systems.
    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (SR-CBOE-2009-018) be, and it hereby is, 
approved.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-10120 Filed 5-1-09; 8:45 am]
BILLING CODE 8010-01-P
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