Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend Two Pilot Programs Related to the Exchange's Automated Improvement Mechanism, 36803-36805 [E9-17638]
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Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices
categories of customer orders for which
the Exchange charges broker-dealer
execution fees: Voluntary Professional
orders; 3 and Professional Orders.4 Each
of these order categories is also treated
the same as broker-dealer orders for the
purposes of specified Exchange
execution priority rules. The ISE
currently is the only market center that
has these order categories for nonbroker-dealer orders, and charging
broker-dealer execution fees makes it
more costly to execute these orders on
the ISE as compared to the other options
exchanges. Therefore, in order to remain
competitive, the Exchange proposes to
amend its fee schedule 5 and rules 6 so
that all non-broker-dealer orders are
subject to the same execution fee. This
fee change will effectively result in a fee
decrease for the execution of these
orders.7
srobinson on DSKHWCL6B1PROD with NOTICES
2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under Section 6(b)(4) that an exchange
have an equitable allocation of
reasonable dues, fees and other charges
among its members and other persons
using its facilities. In particular, this
proposed rule change would lower fees
3 Voluntary Professional orders are orders for a
customer that has elected to be treated in the same
manner as a broker-dealer in securities for purposes
of specified execution priority rules and with
respect to the ISE fee schedule. ISE Rule
100(a)(37A).
4 Earlier this year the SEC approved an ISE rule
change to distinguish between priority customers
and professional customers for purposes of
specified execution priority rules and with respect
to the ISE fee schedule. Securities Exchange Act
Release No. 59287 (Jan. 23, 2009), 74 FR 5694 (Jan.
30, 2009) (‘‘Professional Order Filing’’). Professional
Orders are orders for the account of a non-brokerdealer that enters more than 390 orders per day on
average during a month during a calendar quarter.
To assure member firms are given sufficient time to
implement any necessary systems changes, this rule
change is being implemented in two stages: (1)
Members are required to start measuring the
number of orders their customers enter on average
per day during the third quarter 2009; and (2)
members are required to start identifying
professional customer orders entered on the ISE at
the beginning of the fourth quarter 2009.
5 The Exchange adopted definitional changes to
its fee schedule that resulted in Professional Orders
being charged the same fees as broker-dealer orders.
However, because the rule change is being phasedin, and to avoid confusion in the interim, the ISE
fee schedule posted on the Exchange’s Web site
does not yet reflect these definitional changes.
6 The imposition of broker-dealer fees is
imbedded in the definition of a Voluntary
Professional rather than being separately identified
on the ISE fee schedule. Therefore, the Exchange
proposes to modify the definition of Voluntary
Professional in order to accomplish the fee change.
7 The Exchange notes that Voluntary Professional
orders and Professional Orders currently are not
subject to the Exchange’s cancellation fee. The
Exchange is not proposing to change this aspect of
the fee schedule. Such orders will not be subject to
the cancellation fee.
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18:55 Jul 23, 2009
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for the execution of Voluntary
Professional orders and Professional
Orders.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
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
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3) of
the Act 8 and Rule 19b–4(f)(2) 9
thereunder. 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:
36803
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 ISE. 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–ISE–2009–47 and should be
submitted on or before August 14, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–17635 Filed 7–23–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–60338; File No. SR–CBOE–
2009–051]
• 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–ISE–2009–47 on the subject
line.
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend Two Pilot
Programs Related to the Exchange’s
Automated Improvement Mechanism
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–ISE–2009–47. This file
number should be included on the
subject line if e-mail is used. To help the
PO 00000
July 17, 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 July 16,
2009, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
8 15
U.S.C. 78s(b)(3)(A).
9 17 CFR 19b–4(f)(2).
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1 15
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36804
Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices
the proposed rule change as described
in Items I and II 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 which renders
the proposed rule change effective upon
filing with the Commission. 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 extend two
pilot programs related to the Exchange’s
Automated Improvement Mechanism.
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 the
Statutory Basis for, the Proposed Rule
Change
srobinson on DSKHWCL6B1PROD with NOTICES
1. Purpose
In February, 2006, CBOE obtained
approval of a filing adopting the AIM
auction process.5 AIM exposes certain
orders electronically to an auction
process to provide such orders with the
opportunity to receive an execution at
an improved price. The AIM auction is
available only for orders that an
Exchange member represents as agent
and for which a second order of the
same size as the ‘‘Agency Order’’ (and
on the opposite side of the market) is
also submitted (effectively stopping the
Agency Order at a given price).
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 53222
(February 3, 2006), 71 FR 7089 (February 10, 2006)
approving SR–CBOE–2005–60.
4 17
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18:55 Jul 23, 2009
Jkt 217001
Two components of AIM were
approved on a pilot basis: (1) that there
is no minimum size requirement for
orders to be eligible for the auction, and
(2) that the auction will conclude
prematurely anytime there is a quote
lock on the Exchange pursuant to Rule
6.45A(d).6 In connection with the pilot
programs, the Exchange has submitted
to the Commission reports providing
detailed AIM auction and order
execution data. In July 2006, the
Exchange extended the pilot program
until July 18, 2007.7 In July 2007, the
Exchange extended the pilot program
until July 18, 2008.8 In July 2008, the
Exchange extended the pilot program
until July 18, 2009.9 The proposed rule
change merely extends the duration of
the pilot programs until July 17, 2010.
Extending the pilots for an additional
year will allow the Commission more
time to consider the impact of the pilot
programs on AIM order executions.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) of the Act in general 10 and furthers
the objectives of Section 6(b)(5) 11 in
particular in that by allowing the
Commission additional time to evaluate
the AIM pilot programs, it should serve
to remove impediments to and perfect
the mechanism of a free and open
market and a national market system,
and 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.
6 That rule relates to situations where a MarketMaker’s quote interacts with the quote of another
CBOE Market-Maker (i.e. when internal quotes
lock).
7 See Securities Exchange Act Release No. 54147
(July 14, 2006), 71 FR 41487 (July 21, 2006)
approving SR–CBOE–2006–64.
8 See Securities Exchange Act Release No. 56094
(July 18, 2007), 72 FR 40910 (July 25, 2007)
approving SR–CBOE–2007–80.
9 See Securities Exchange Act Release No. 58196
(July 18, 2008), 73 FR 43803 (July 28, 2008)
approving SR–CBOE–2008–76. In this filing, the
Exchange agreed to provide additional information
relating to the AIM auctions each month in order
to aid the Commission in its evaluation of the pilot
program. The Exchange will continue to provide
this information.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78(f)(b)(5).
PO 00000
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Fmt 4703
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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 proposed rule
change: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30 days after the date of
this filing, 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) 12 of the Act and
Rule 19b–4(f)(6) thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing. However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange requests that the Commission
waive the 30-day operative delay, which
would make the rule change operative
upon filing. The Commission believes
that waiving the 30-day operative delay
is consistent with the protection of
investors and the public interest
because such waiver would allow the
AIM pilot programs to continue without
interruption.14 Accordingly, the
Commission designates the proposed
rule change operative upon filing with
the Commission.
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.
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to provide the
Commission with written notice of its intention to
file the proposed rule change along with a brief
description of the text of the proposed rule change,
at least five business days prior to filing the
proposal with the Commission, or such shorter time
as designated by the Commission. The Exchange
has fulfilled this requirement.
14 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
13 17
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Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices
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:
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–2009–051 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.
srobinson on DSKHWCL6B1PROD with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–17638 Filed 7–23–09; 8:45 am]
[Release No. 34–60337; File No. SR–BX–
2009–038]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Extend a
Pilot Program That Allows for No
Minimum Size Order Requirement for
the Price Improvement Period Process
on the Boston Options Exchange
Facility
July 17, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
All submissions should refer to File
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 13,
Number SR–CBOE–2009–051. This file
2009 NASDAQ OMX BX, Inc. (the
number should be included on the
subject line if e-mail is used. To help the ‘‘Exchange’’) filed with the Securities
and Exchange Commission
Commission process and review your
(‘‘Commission’’) the proposed rule
comments more efficiently, please use
only one method. The Commission will change as described in Items I and II
post all comments on the Commission’s below, which Items have been prepared
by the self-regulatory organization. The
Internet Web site (https://www.sec.gov/
Exchange filed the proposed rule change
rules/sro.shtml). Copies of the
pursuant to Section 19(b)(3)(A) of the
submission, all subsequent
Act,3 and Rule 19b–4(f)(6) thereunder,4
amendments, all written statements
which renders the proposal effective
with respect to the proposed rule
upon filing with the Commission. The
change that are filed with the
Commission is publishing this notice to
Commission, and all written
solicit comments on the proposed rule
communications relating to the
from interested persons.
proposed rule change between the
Commission and any person, other than I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
those that may be withheld from the
the Proposed Rule Change
public in accordance with the
provisions of 5 U.S.C. 552, will be
The Exchange proposes to amend the
available for inspection and copying in
Supplementary Material to Section 18
the Commission’s Public Reference
(the Price Improvement Period ‘‘PIP’’) of
Chapter V of the Rules of the Boston
Room, 100 F Street, NE., Washington,
Options Exchange Group, LLC (‘‘BOX’’)
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. to extend a pilot program that permits
BOX to have no minimum size
Copies of such filing also will be
requirement for orders entered into the
available for inspection and copying at
the principal office of the Exchange. All PIP and under certain circumstances
permits the premature termination of
comments received will be posted
the PIP process (‘‘PIP Pilot Program’’).
without change; the Commission does
The text of the proposed rule change is
not edit personal identifying
available from the principal office of the
information from submissions. You
Exchange, at the Commission’s Public
should submit only information that
Reference Room and also on the
you wish to make available publicly. All
submissions should refer to File
15 17 CFR 200.30–3(a)(12).
Number SR–CBOE–2009–051 and
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
should be submitted on or before
3 15 U.S.C. 78s(b)(3)(A).
August 14, 2009.
4 17
VerDate Nov<24>2008
18:55 Jul 23, 2009
Jkt 217001
PO 00000
CFR 240.19b–4(f)(6).
Frm 00157
Fmt 4703
Sfmt 4703
36805
Exchange’s Internet Web site at https://
nasdaqomxbx.cchwallstreet.com/
NASDAQOMXBX/Filings/.
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 these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization 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
The purpose of the proposed rule
change is to extend the PIP Pilot
Program under the BOX Rules for
twelve (12) additional months. The PIP
Pilot Program allows BOX to have no
minimum size requirement for orders
entered into the PIP process and under
certain circumstances permits the
premature termination of the PIP
process.5 The proposed rule change
reflects change to the text of
Supplementary Material .01 to Section
18 of Chapter V of the BOX Rules and
seeks to extend the operation of the PIP
Pilot Program until July 17, 2010.
The Exchange notes that the PIP Pilot
Program provides small customer orders
with benefits not available under the
rules of some other exchanges. One of
the important factors of the PIP Pilot
Program is that it guarantees
Participants the right to trade with their
customer orders that are less than 50
contracts. In particular, any order
5 The Pilot Program is currently set to expire on
July 18, 2009. See Securities Exchange Act Release
No. 58942 (November 13, 2008), 73 FR 70394
(November 20, 2008) (SR–BSE–2008–49); See also
Securities and Exchange Act Release No. 58195
(July 18, 2008), 73 FR 43801 (July 28, 2008) (SR–
BSE–2008–39); See also Securities Exchange Act
Release No. 55999 (July 2, 2007), 72 FR 37549 (July
10, 2007) (SR–BSE–2007–27); See also Securities
Exchange Act Release No. 54066 (June 29, 2006), 71
FR 38434 (July 6, 2006) (SR–BSE–2006–24); See
also Securities Exchange Act Release No. 52149
(July 28, 2005), 70 FR 44704 (August 3, 2005) (SR–
BSE–2005–22); See also Securities Exchange Act
Release No. 49068 (January 13, 2004), 69 FR 2775
(January 20, 2004) (SR–BSE–2002–15) (‘‘Original
PIP Pilot Program Approval Order’’). See also
Securities Exchange Act Release No. 51821 (June
10, 2005), 70 FR 35143 (June 16, 2005) (SR–BSE–
2004–51) (Order approving, among other things,
under certain circumstances, the premature
termination of a PIP process).
E:\FR\FM\24JYN1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 141 (Friday, July 24, 2009)]
[Notices]
[Pages 36803-36805]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-17638]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60338; File No. SR-CBOE-2009-051]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Extend Two Pilot Programs Related to the Exchange's
Automated Improvement Mechanism
July 17, 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 July 16, 2009, the Chicago Board Options Exchange, Incorporated
(``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (``Commission'')
[[Page 36804]]
the proposed rule change as described in Items I and II 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\ which renders the proposed rule change effective upon
filing with the Commission. 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 extend two pilot programs related to the
Exchange's Automated Improvement Mechanism. 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
In February, 2006, CBOE obtained approval of a filing adopting the
AIM auction process.\5\ AIM exposes certain orders electronically to an
auction process to provide such orders with the opportunity to receive
an execution at an improved price. The AIM auction is available only
for orders that an Exchange member represents as agent and for which a
second order of the same size as the ``Agency Order'' (and on the
opposite side of the market) is also submitted (effectively stopping
the Agency Order at a given price).
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 53222 (February 3,
2006), 71 FR 7089 (February 10, 2006) approving SR-CBOE-2005-60.
---------------------------------------------------------------------------
Two components of AIM were approved on a pilot basis: (1) that
there is no minimum size requirement for orders to be eligible for the
auction, and (2) that the auction will conclude prematurely anytime
there is a quote lock on the Exchange pursuant to Rule 6.45A(d).\6\ In
connection with the pilot programs, the Exchange has submitted to the
Commission reports providing detailed AIM auction and order execution
data. In July 2006, the Exchange extended the pilot program until July
18, 2007.\7\ In July 2007, the Exchange extended the pilot program
until July 18, 2008.\8\ In July 2008, the Exchange extended the pilot
program until July 18, 2009.\9\ The proposed rule change merely extends
the duration of the pilot programs until July 17, 2010. Extending the
pilots for an additional year will allow the Commission more time to
consider the impact of the pilot programs on AIM order executions.
---------------------------------------------------------------------------
\6\ That rule relates to situations where a Market-Maker's quote
interacts with the quote of another CBOE Market-Maker (i.e. when
internal quotes lock).
\7\ See Securities Exchange Act Release No. 54147 (July 14,
2006), 71 FR 41487 (July 21, 2006) approving SR-CBOE-2006-64.
\8\ See Securities Exchange Act Release No. 56094 (July 18,
2007), 72 FR 40910 (July 25, 2007) approving SR-CBOE-2007-80.
\9\ See Securities Exchange Act Release No. 58196 (July 18,
2008), 73 FR 43803 (July 28, 2008) approving SR-CBOE-2008-76. In
this filing, the Exchange agreed to provide additional information
relating to the AIM auctions each month in order to aid the
Commission in its evaluation of the pilot program. The Exchange will
continue to provide this information.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Act in general \10\ and furthers the objectives of
Section 6(b)(5) \11\ in particular in that by allowing the Commission
additional time to evaluate the AIM pilot programs, it should serve to
remove impediments to and perfect the mechanism of a free and open
market and a national market system, and protect investors and the
public interest.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78(f)(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 proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, 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) \12\ of the Act and Rule 19b-4(f)(6)
thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to provide the Commission with written notice
of its intention to file the proposed rule change along with a brief
description of the text of the proposed rule change, at least five
business days prior to filing the proposal with the Commission, or
such shorter time as designated by the Commission. The Exchange has
fulfilled this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange requests that the
Commission waive the 30-day operative delay, which would make the rule
change operative upon filing. The Commission believes that waiving the
30-day operative delay is consistent with the protection of investors
and the public interest because such waiver would allow the AIM pilot
programs to continue without interruption.\14\ Accordingly, the
Commission designates the proposed rule change operative upon filing
with the Commission.
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\14\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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.
[[Page 36805]]
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-2009-051 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-2009-051. 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 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-2009-051 and should be
submitted on or before August 14, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-17638 Filed 7-23-09; 8:45 am]
BILLING CODE 8010-01-P
