Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Approving a Proposed Rule Change To Permit All CBSX Market-Makers To Operate From the CBSX Floor Post, 46290 [E9-21583]

Download as PDF 46290 Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60589; File No. SR–CBOE– 2009–047] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Approving a Proposed Rule Change To Permit All CBSX Market-Makers To Operate From the CBSX Floor Post August 31, 2009. jlentini on DSKJ8SOYB1PROD with NOTICES On July 2, 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 allow all CBSX Market-Maker types to operate from the Floor Post. The exchange filed Amendment No. 1 to the proposed rule change on July 23, 2009. The proposed rule change, as amended, was published for comment in the Federal Register on July 30, 2009.3 The Commission received no comment letters on the proposed rule change. This order approves the proposed rule change. CBSX is an all-electronic stock marketplace operated by the Exchange. The CBSX Floor Post is a location on the CBOE trading floor where marketmakers can be stationed to respond to stock price discovery requests from CBOE’s trading floor community. The Floor Post is a location for price discovery only; since CBSX is an electronic exchange, there is no openoutcry trading permitted, and any trades agreed to at the Floor Post must be entered into the CBSX system in accordance with the applicable rules.4 Currently, only members who serve as Designated Primary Market-Makers (‘‘DPMs’’) on CBSX may operate from the CBSX Floor Post.5 The Exchange now proposes to permit all CBSX Market-Makers types to operate from the Floor Post. The Floor Post will continue to restrict any sightlines to the equity options trading posts. After careful review, the Commission finds that the proposal is consistent with the Act and the rules and regulations thereunder applicable to a 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 60375 (July 23, 2009), 74 FR 38071. 4 See, e.g., CBOE Rule 52.11, Facilitation of Orders and Crossing Trades. 5 No CBSX DPMs are stationing personnel at the Floor Post at this time. 2 17 VerDate Nov<24>2008 17:32 Sep 04, 2009 Jkt 217001 national securities exchange.6 In particular, the Commission believes that the proposal is consistent with the requirements of Section 6(b)(5) of the Act 7—which requires, among other things, that the rules of a national securities exchange be designed to promote just and equitable principles of trade, to prevent fraudulent and manipulative acts, 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—because it will promote additional price discovery at the CBSX Floor Post. It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change (SR–CBOE–2009– 047) be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–21583 Filed 9–4–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60587; File No. SR–Phlx– 2009–73] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating to Standard and Poor’s Depository Receipts/ SPDRs (‘‘SPY’’) Equity Options August 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 on August 20, 2009, NASDAQ OMX PHLX, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) 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 the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 6 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 7 15 U.S.C. 78f(b)(5). 8 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. PO 00000 Frm 00211 Fmt 4703 Sfmt 4703 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to assess a $.05 per contract fee for Standard and Poor’s Depositary Receipts/SPDRs (‘‘SPY’’)3 equity options that are directed to specialists, Streaming Quote Traders (‘‘SQTs’’)4 and Remote Streaming Quote Traders (‘‘RSQTs’’)5 by a member or member organization and are executed electronically in lieu of the existing specialist and Registered Options Trader (on-floor) equity options transaction fees. While changes to the Exchange’s fee schedule pursuant to this proposal are effective upon filing, the Exchange has designated this proposal to be effective for trades settling on or after August 25, 2009. The text of the proposed rule change is available on the Exchange’s Web site at https:// nasdaqomxphlx.cchwallstreet.com/ NASDAQOMXPHLX/Filings/, at the principal office of the Exchange, 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, the Exchange 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 Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. 3 SPY options are based on the SPDR exchangetraded fund (‘‘ETF’’), which is designed to track the performance of the S&P 500 Index. 4 An SQT is an Exchange Registered Options Trader (‘‘ROT’’) who has received permission from the Exchange to generate and submit option quotations electronically through an electronic interface with AUTOM via an Exchange approved proprietary electronic quoting device in eligible options to which such SQT is assigned. See Exchange Rule 1014(b)(ii)(A). 5 An RSQT is an ROT that is a member or member organization with no physical trading floor presence who has received permission from the Exchange to generate and submit option quotations electronically through AUTOM in eligible options to which such RSQT has been assigned. An RSQT may only submit such quotations electronically from off the floor of the Exchange. See Exchange Rule 1014(b)(ii)(B). E:\FR\FM\08SEN1.SGM 08SEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 74, Number 172 (Tuesday, September 8, 2009)]
[Notices]
[Page 46290]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-21583]



[[Page 46290]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60589; File No. SR-CBOE-2009-047]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Approving a Proposed Rule Change To Permit All CBSX 
Market-Makers To Operate From the CBSX Floor Post

August 31, 2009.
    On July 2, 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 allow all CBSX Market-Maker 
types to operate from the Floor Post. The exchange filed Amendment No. 
1 to the proposed rule change on July 23, 2009. The proposed rule 
change, as amended, was published for comment in the Federal Register 
on July 30, 2009.\3\ The Commission received no comment letters on the 
proposed rule change. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 60375 (July 23, 
2009), 74 FR 38071.
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    CBSX is an all-electronic stock marketplace operated by the 
Exchange. The CBSX Floor Post is a location on the CBOE trading floor 
where market-makers can be stationed to respond to stock price 
discovery requests from CBOE's trading floor community. The Floor Post 
is a location for price discovery only; since CBSX is an electronic 
exchange, there is no open-outcry trading permitted, and any trades 
agreed to at the Floor Post must be entered into the CBSX system in 
accordance with the applicable rules.\4\
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    \4\ See, e.g., CBOE Rule 52.11, Facilitation of Orders and 
Crossing Trades.
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    Currently, only members who serve as Designated Primary Market-
Makers (``DPMs'') on CBSX may operate from the CBSX Floor Post.\5\ The 
Exchange now proposes to permit all CBSX Market-Makers types to operate 
from the Floor Post. The Floor Post will continue to restrict any 
sightlines to the equity options trading posts.
---------------------------------------------------------------------------

    \5\ No CBSX DPMs are stationing personnel at the Floor Post at 
this time.
---------------------------------------------------------------------------

    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.\6\ In particular, the 
Commission believes that the proposal is consistent with the 
requirements of Section 6(b)(5) of the Act \7\--which requires, among 
other things, that the rules of a national securities exchange be 
designed to promote just and equitable principles of trade, to prevent 
fraudulent and manipulative acts, 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--because 
it will promote additional price discovery at the CBSX Floor Post.
---------------------------------------------------------------------------

    \6\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (SR-CBOE-2009-047) be, and it hereby is, 
approved.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-21583 Filed 9-4-09; 8:45 am]
BILLING CODE 8010-01-P

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