Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposal To Codify Certain Provisions of the Options Listing Procedures Plan Into CBOE's Rules, 60008-60009 [E9-27749]
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60008
Federal Register / Vol. 74, No. 222 / Thursday, November 19, 2009 / Notices
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–60995; File No. SR–CBOE–
2009–084]
• 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–NASDAQ–2009–092 on the
subject line.
Paper Comments
November 13, 2009.
erowe on DSK5CLS3C1PROD with NOTICES
• 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–NASDAQ–2009–092. 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 Nasdaq. 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–
NASDAQ–2009–092 and should be
submitted on or before December 10,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–27747 Filed 11–18–09; 8:45 am]
BILLING CODE 8011–01–P
22 17
15:22 Nov 18, 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 October
30, 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
For ease of reference, CBOE proposes
to codify certain provisions of the
Options Listing Procedures Plan
(‘‘OLPP’’) into its rules. 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’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
self-regulatory organization included
statements concerning the purpose of
and basis for the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
CFR 200.30–3(a)(12).
VerDate Nov<24>2008
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposal
To Codify Certain Provisions of the
Options Listing Procedures Plan Into
CBOE’s Rules
Jkt 220001
PO 00000
Frm 00051
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Options Listing Procedures Plan
(‘‘OLPP’’) was approved by the
Securities and Exchange Commission
(the ‘‘Commission’’) on July 6, 2001 and
has been amended several times.5 The
OLPP provides procedures for: (i)
Listing and trading new option classes;
(ii) selecting new options series; (iii)
petitioning The Options Clearing
Corporation (‘‘OCC’’) to review the
eligibility, pursuant to the exchanges’
listing standards, of a selected option
class without delaying the trading of
that option class; (iv) determining
operational details for option contracts
adjusted pursuant to OCC By-Laws; (v)
admitting new sponsors; and (vi) losing
eligibility to participate in the OLPP.
This current filing is primarily
concerned with codifying certain
provisions of the OLPP pertaining to
selecting new option series and certain
strike setting parameters that have been
adopted under the OLPP. The Exchange
believes that it is helpful to codify select
provisions into CBOE’s rules so that all
applicable rules governing series
selection and applicable strike setting
parameters are located in a single place.
In addition, the Exchange understands
that other Sponsor Exchanges to the
OLPP will be submitting similar filings
to codify portions of the OLPP in their
respective rulebooks. Below the
Exchange briefly describes the
provisions of the OLPP that the
Exchange is proposing to codify into
CBOE’s rules.
OLPP Amendments Pertaining to LEAPS
Amendments 1 and 2 to the OLPP
adopted provisions governing the listing
of Long-Term Equity Option Series
(‘‘LEAPS’’). Amendment 1 provided for
a uniform time frame for the
introduction of new LEAPS on equity
option classes, options on exchange
traded funds (‘‘ETFs’’), or options on
Trust Issued Receipts (‘‘TIRs’’). The
Exchange is proposing to codify the
changes made to the OLPP by
Amendment 1 as new subparagraph (c)
to Rule 5.8, Long-Term Equity Option
Series (LEAPS®). Amendment 2
5 See e.g., Securities Exchange Act Release Nos.
44521 (July 6, 2001), 66 FR 36809 (July 13, 2001)
(order approving OLPP); 58205 (July 22, 2008), 73
FR 43798 (July 28, 2008) (order granting permanent
approval to amendment no. 1 to the OLPP); 58630
(September 24, 2008) 73 FR 57166 (October 1, 2008)
(order granting permanent approval to amendment
no. 2 to the OLPP); and 60531 (August 19, 2009),
74 FR 43173 (August 26, 2009) (order approving
amendment no. 3 to the OLPP).
E:\FR\FM\19NON1.SGM
19NON1
Federal Register / Vol. 74, No. 222 / Thursday, November 19, 2009 / Notices
provided for a uniform minimum
volume threshold per underlying class
to qualify for the introduction of a new
expiration year of LEAPs on equity, ETF
and TIR classes. The Exchange is
proposing to codify the changes made to
the OLPP by Amendment 2 as new
subparagraph (d) to Rule 5.8.
Strike Setting Parameters
Amendment 3 to the OLPP adopted
uniform objective standards to the range
of options series exercise (or strike)
prices available for trading on Sponsor
Exchanges to the OLPP as a quote
mitigation strategy. The Exchange is
proposing to codify the changes made to
the OLPP by Amendment 3 as new Rule
5.5A, Select Provisions of Options
Listing Procedures Plan. The Exchange
is proposing to create a new rule that
can be easily amended in the future if
other amendments to the OLPP are
made which similarly warrant being
codified into CBOE’s rules.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) 6 of the Act, in general, and
furthers the objectives of Section
6(b)(5),7 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanisms 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 codifying certain
provisions of the OLPP, as amended,
serves to foster investor protection.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
erowe on DSK5CLS3C1PROD with NOTICES
CBOE 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
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Nov<24>2008
15:22 Nov 18, 2009
Jkt 220001
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 8 and Rule
19b–4(f)(6) thereunder.9 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 10 and
Rule 19b–4(f)(6)(iii) thereunder.11
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.
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–CBOE–2009–084 on the
subject line.
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of the filing also will be available
for inspection and copying at the
principal office of the self-regulatory
organization. All comments received
will be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CBOE–
2009–084 and should be submitted on
or before December 10, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–27749 Filed 11–18–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–2009–084. This file
number should be included on the
[Release No. 34–60992; File No. SR–ISE–
2009–95]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to $1 Strike Price
Intervals Below $200 for Options on
the KBW Bank Index (BKX)
8 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has satisfied the pre-filing requirement.
9 17
No written comments were solicited
or received with respect to the proposed
rule change.
6 15
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
60009
PO 00000
Frm 00052
Fmt 4703
Sfmt 4703
November 12, 2009.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
November 9, 2009, the International
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\19NON1.SGM
19NON1
]]>Agencies
[Federal Register Volume 74, Number 222 (Thursday, November 19, 2009)]
[Notices]
[Pages 60008-60009]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-27749]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60995; File No. SR-CBOE-2009-084]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposal To Codify Certain Provisions of the Options Listing Procedures
Plan Into CBOE's Rules
November 13, 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 October 30, 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
For ease of reference, CBOE proposes to codify certain provisions
of the Options Listing Procedures Plan (``OLPP'') into its rules. 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'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 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 Options Listing Procedures Plan (``OLPP'') was approved by the
Securities and Exchange Commission (the ``Commission'') on July 6, 2001
and has been amended several times.\5\ The OLPP provides procedures
for: (i) Listing and trading new option classes; (ii) selecting new
options series; (iii) petitioning The Options Clearing Corporation
(``OCC'') to review the eligibility, pursuant to the exchanges' listing
standards, of a selected option class without delaying the trading of
that option class; (iv) determining operational details for option
contracts adjusted pursuant to OCC By-Laws; (v) admitting new sponsors;
and (vi) losing eligibility to participate in the OLPP.
---------------------------------------------------------------------------
\5\ See e.g., Securities Exchange Act Release Nos. 44521 (July
6, 2001), 66 FR 36809 (July 13, 2001) (order approving OLPP); 58205
(July 22, 2008), 73 FR 43798 (July 28, 2008) (order granting
permanent approval to amendment no. 1 to the OLPP); 58630 (September
24, 2008) 73 FR 57166 (October 1, 2008) (order granting permanent
approval to amendment no. 2 to the OLPP); and 60531 (August 19,
2009), 74 FR 43173 (August 26, 2009) (order approving amendment no.
3 to the OLPP).
---------------------------------------------------------------------------
This current filing is primarily concerned with codifying certain
provisions of the OLPP pertaining to selecting new option series and
certain strike setting parameters that have been adopted under the
OLPP. The Exchange believes that it is helpful to codify select
provisions into CBOE's rules so that all applicable rules governing
series selection and applicable strike setting parameters are located
in a single place. In addition, the Exchange understands that other
Sponsor Exchanges to the OLPP will be submitting similar filings to
codify portions of the OLPP in their respective rulebooks. Below the
Exchange briefly describes the provisions of the OLPP that the Exchange
is proposing to codify into CBOE's rules.
OLPP Amendments Pertaining to LEAPS
Amendments 1 and 2 to the OLPP adopted provisions governing the
listing of Long-Term Equity Option Series (``LEAPS''). Amendment 1
provided for a uniform time frame for the introduction of new LEAPS on
equity option classes, options on exchange traded funds (``ETFs''), or
options on Trust Issued Receipts (``TIRs''). The Exchange is proposing
to codify the changes made to the OLPP by Amendment 1 as new
subparagraph (c) to Rule 5.8, Long-Term Equity Option Series
(LEAPS[supreg]). Amendment 2
[[Page 60009]]
provided for a uniform minimum volume threshold per underlying class to
qualify for the introduction of a new expiration year of LEAPs on
equity, ETF and TIR classes. The Exchange is proposing to codify the
changes made to the OLPP by Amendment 2 as new subparagraph (d) to Rule
5.8.
Strike Setting Parameters
Amendment 3 to the OLPP adopted uniform objective standards to the
range of options series exercise (or strike) prices available for
trading on Sponsor Exchanges to the OLPP as a quote mitigation
strategy. The Exchange is proposing to codify the changes made to the
OLPP by Amendment 3 as new Rule 5.5A, Select Provisions of Options
Listing Procedures Plan. The Exchange is proposing to create a new rule
that can be easily amended in the future if other amendments to the
OLPP are made which similarly warrant being codified into CBOE's rules.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) \6\ of the Act, in general, and furthers the
objectives of Section 6(b)(5),\7\ in particular, in that it is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, and to remove impediments to and perfect the mechanisms 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 codifying certain provisions of the OLPP, as amended, serves to
foster investor protection.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(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 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.
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 \8\ and Rule 19b-4(f)(6) thereunder.\9\
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 \10\ and Rule 19b-
4(f)(6)(iii) thereunder.\11\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the Exchange to give the Commission written
notice of the Exchange's intent to file the proposed rule change
along with a brief description and the text of the proposed rule
change, at least five business days prior to the date of filing of
the proposed rule change, or such shorter time as designated by the
Commission. The Exchange has satisfied the pre-filing requirement.
---------------------------------------------------------------------------
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.
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-2009-084 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-2009-084. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the self-regulatory
organization. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
CBOE-2009-084 and should be submitted on or before December 10, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-27749 Filed 11-18-09; 8:45 am]
BILLING CODE 8011-01-P
