Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Rule 8.85 and Rule 8.92 Regarding the Requirement To Own an Exchange Membership, 6779-6781 [2010-2959]
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sroberts on DSKD5P82C1PROD with NOTICES
Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices
will provide the last sale price of the
Units as traded in the U.S. market. In
addition, the Exchange will make
available over the Consolidated Tape
quotation information, trading volume,
closing prices and NAV for the Units
from the previous day.
The Commission further believes that
the proposal to list and trade the Units
is reasonably designed to promote fair
disclosure of information that may be
necessary to price the Units
appropriately and to prevent trading
when a reasonable degree of
transparency cannot be assured. Under
NYSE Arca Equities Rule 7.34(a)(5), if
the Exchange becomes aware that the
NAV is not being disseminated to all
market participants at the same time, it
must halt trading on the NYSE
Marketplace until such time as the NAV
is available to all market participants.
The Commission notes that the
Exchange has received a representation
from the Trust that, prior to listing, the
NAV would be calculated daily and
made available to all market
participants at the same time.15
Additionally, if the IIV is not being
disseminated as required, the Exchange
may halt trading during the day in
which the disruption occurs; if the
interruption persists past the day in
which it occurred, the Exchange will
halt trading no later than the beginning
of the trading day following the
interruption.16 Further, the Exchange
will consider suspension of trading
pursuant to NYSE Arca Rule 8.201(e)(2)
if, after the initial 12 month period
following commencement of trading: (1)
The value of gold is no longer calculated
or available on at least a 15-second
delayed basis from a source unaffiliated
with the Sponsor, Trust, custodian or
the Exchange stops providing a
hyperlink on its Web site to any such
unaffiliated commodity value; or (2) if
the IIV is no longer made available on
at least a 15-second delayed basis. With
respect to trading halts, the Exchange
may consider all relevant factors in
exercising its discretion to halt or
suspend trading in the Units. These may
include: (1) The extent to which
conditions in the underlying gold
market have caused disruptions and/or
lack of trading; or (2) whether other
unusual conditions or circumstances
detrimental to the maintenance of a fair
and orderly market are present. In
addition, trading in Units will be subject
to trading halts caused by extraordinary
15 See
supra note 4.
e-mail, dated February 4, 2010, from Tim
Malinowski, NYSE Arca, to Steve Varholik, Special
Counsel, Division of Trading and Markets,
Commission.
16 See
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market volatility pursuant to the
Exchange’s ‘‘circuit breaker’’ rule.17
In addition, NYSE Arca Equities Rule
8.201 sets forth certain requirements for
ETP Holders acting as Market Makers in
the Units. Pursuant to NYSE Arca
Equities Rule 8.201(h), an ETP Holder
acting as a registered Market Maker in
the Units is required to provide the
Exchange with information relating to
its trading in the underlying gold,
related futures or options on futures, or
any other related derivatives. NYSE
Arca Equities Rule 8.201(i) prohibits an
ETP Holder acting as a registered Market
Maker in the Units from using any
material nonpublic information received
from any person associated with an ETP
Holder or employee of such person
regarding trading by such person or
employee in the underlying gold,
related futures or options on futures or
any other related derivative (including
the Units).
In support of this proposal, the
Exchange has made representations
including:
(1) The Units will be subject to the
initial and continued listing criteria
under NYSE Arca Equities Rule 8.201.
(2) The Exchange’s surveillance
procedures are adequate to properly
monitor Exchange trading of the Units
in all trading sessions and to deter and
detect violations of Exchange rules and
applicable Federal securities laws.
Pursuant to NYSE Arca Equities Rule
8.201(h), the Exchange is able to obtain
information regarding trading in the
Units and the underlying gold, gold
futures contracts, options on gold
futures, or any other gold derivative,
through ETP Holders acting as
registered Market Makers, in connection
with such ETP Holders’ proprietary or
customer trades which they effect on
any relevant market. In addition, the
Exchange may obtain trading
information via the Intermarket
Surveillance Group (‘‘ISG’’) from other
exchanges who are members of the
ISG.18
(3) Prior to the commencement of
trading, the Exchange will inform its
ETP Holders in an Information Bulletin
of the special characteristics and risks
associated with trading the Units.
Specifically, the Information Bulletin
will discuss the following: (1) The
procedures for purchases and
redemptions of Units; (2) NYSE Arca
17 See
NYSE Arca Equities Rule 7.12.
Exchange notes that the New York
Mercantile Exchange, of which the COMEX is a
division, is an ISG member, however, the Tokyo
Commodity Exchange, Inc. (‘‘TOCOM’’) is not an
ISG member and the Exchange does not have in
place a comprehensive surveillance sharing
agreement with such market.
18 The
PO 00000
Frm 00158
Fmt 4703
Sfmt 4703
6779
Equities Rule 9.2(a), which imposes a
duty of due diligence on its ETP Holders
to learn the essential facts relating to
every customer prior to trading the
Units; (3) how information regarding the
IIV is disseminated; (4) the requirement
that ETP Holders deliver a prospectus to
investors purchasing newly issued Units
prior to or concurrently with the
confirmation of a transaction; (5) the
possibility that trading spreads and the
resulting premium or discount on the
Units may widen as a result of reduced
liquidity of gold trading during the Core
and Late Trading Sessions after the
close of the major world gold markets;
and (6) trading information.
This approval order is based on the
Exchange’s representations.
For the foregoing reasons, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act 19 and the rules and
regulations thereunder applicable to a
national securities exchange.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,20 that the
proposed rule change (SR–NYSEArca–
2009–113) be, and it hereby is,
approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–2960 Filed 2–9–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61494; File No. SR–CBOE–
2010–012]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Rule 8.85 and
Rule 8.92 Regarding the Requirement
To Own an Exchange Membership
February 4, 2010.
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 February
2, 2010, Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
19 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(2)
21 17 CFR 200.30–3(a)(12)
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
20 15
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6780
Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices
(‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to amend proposes to
amend proposes to amend [sic] Rule
8.85 and Rule 8.92 regarding the
requirement to own an Exchange
membership. The text of the rule
proposal is available on the Exchange’s
Web site (https://www.cboe.org/legal), at
the Exchange’s Office of the Secretary
and at the Commission.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of
and basis for the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
sroberts on DSKD5P82C1PROD with NOTICES
1. Purpose
CBOE proposes to amend Rule 8.85
and Rule 8.92 to eliminate the
requirement that a DPM organization
and an e-DPM organization are required
to own at least one Exchange
membership. Instead, each DPM
organization and each e-DPM
organization will be required to own or
lease such number of Exchange
memberships as may be necessary based
on the aggregate ‘‘appointment cost’’ for
the classes allocated to the DPM
organization or e-DPM organization.
CBOE established this ownership
requirement with respect to DPMs in
2000 and, at the time, believed that it
was appropriate and would encourage
DPMs to have a long-term commitment
to CBOE.3 CBOE later included this
requirement when its e-DPM program
was adopted.
3 See Exchange Act Release No. 43186 (August 21,
2000), 65 FR 51880 (August 25, 2000) (SR–CBOE–
99–37).
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16:21 Feb 09, 2010
Jkt 220001
CBOE no longer believes that this
requirement is necessary particularly as
its proposed restructuring approaches,
and eliminating it may attract new DPM
organizations to CBOE who otherwise
may not be willing to apply to be a DPM
due to this membership ownership
requirement. CBOE notes that in
connection with its plan to restructure
from a Delaware non-stock corporation
owned by its members to a Delaware
stock corporation that will be a whollyowned subsidiary of CBOE Holdings,
this requirement will be eliminated.
Specifically, as part of CBOE’s
restructuring, the owners of
membership interests will become
stockholders of CBOE Holdings through
the conversion of their memberships
into shares of common stock of CBOE
Holdings. Additionally, Trading Permits
will provide trading access to the
Exchange, and not Exchange
memberships as is currently the case. A
Trading Permit will not convey any
ownership interest in the Exchange, and
will only be available through the
Exchange.4 As part of this proposed rule
change, CBOE proposes conforming
changes to Rule 3.27, and proposes to
delete Interpretation .04 of Rule 8.85
and Interpretation .01 of Rule 8.92
which are no longer necessary in light
of the elimination of the membership
ownership requirement.5
In connection with this proposed rule
change, CBOE proposes to delete
Interpretation .03 of Rule 8.85, which
was adopted in 2003 for the purpose of
allowing a senior principal’s ownership
of a membership to satisfy the
requirement on behalf of the DPM
organization, but only if the senior
principal meets certain criteria. In light
of the fact that CBOE is eliminating the
membership ownership requirement,
Interpretation .03 no longer is
applicable or necessary.
2. Statutory Basis
The Exchange believes the rule
proposal is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
under the Act applicable to a national
securities exchange and, in particular,
the requirements of Section 6(b) of the
Act.6 Specifically, the Exchange
believes that the proposed rule change
4 See Exchange Act Release No. 58425 (August 26,
2008), 73 FR 51652 (September 4, 2008) (noticing
for comment SR–CBOE–2008–088). CBOE has
consented to an extension of time for Commission
action on this proposed rule change pending a
membership vote.
5 CBOE notes that Temporary Members under
Rule 3.19.02 will not be adversely impacted by this
proposed rule change.
6 15 U.S.C. 78f(b).
PO 00000
Frm 00159
Fmt 4703
Sfmt 4703
is consistent with the Section 6(b)(5)
Act 7 requirements that the rules of an
exchange be designed to promote just
and equitable principles of trade, to
prevent fraudulent and manipulative
acts and, in general, to protect investors
and the public interest. The DPM and eDPM membership ownership
requirement is no longer necessary and
eliminating it may attract new
organizations to act in the capacity of a
DPM (or e-DPM). Additionally, this
requirement will be eliminated in
connection with CBOE’s restructuring.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will impose any
burden on competition not necessary or
appropriate in furtherance of the
purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
does not (i) significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate if
consistent with the protection of
investors and the public interest,
provided that the self-regulatory
organization has given the Commission
written notice of its intent to file the
proposed rule change at least five
business days prior to the date of filing
of the proposed rule change or such
shorter time as designated by the
Commission, the proposed rule change
has become effective pursuant to
Section 19(b)(3)(A) of the Act 8 and Rule
19b–4(f)(6) thereunder.9 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.
7 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6).
8 15
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Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / 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:
[FR Doc. 2010–2959 Filed 2–9–10; 8:45 am]
BILLING CODE 8011–01–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–2010–012 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.
sroberts on DSKD5P82C1PROD with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[Release No. 34–61493; File No. SR–CHX–
2010–03]
Self-Regulatory Organizations; The
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Increase
the Provide Credit for Transactions
Involving Issues Priced Less Than One
Dollar
February 4, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
All submissions should refer to File
notice is hereby given that on January
Number SR–CBOE–2010–012. This file
29, 2010, the Chicago Stock Exchange,
number should be included on the
Inc. (‘‘CHX’’ or ‘‘Exchange’’) filed with
subject line if e-mail is used. To help the the Securities and Exchange
Commission process and review your
Commission (‘‘Commission’’) the
comments more efficiently, please use
proposed rule change as described in
only one method. The Commission will Items I, II, and III below, which Items
post all comments on the Commission’s have been prepared by the Exchange.
Internet Web site (https://www.sec.gov/
CHX has filed the proposal pursuant to
rules/sro.shtml). Copies of the
Section 19(b)(3)(A) of the Act 3 and Rule
submission, all subsequent
19b–4(f)(2) thereunder,4 which renders
amendments, all written statements
the proposal effective upon filing with
with respect to the proposed rule
the Commission. The Commission is
publishing this notice to solicit
change that are filed with the
comments on the proposed rule change
Commission, and all written
from interested persons.
communications relating to the
proposed rule change between the
I. Self-Regulatory Organization’s
Commission and any person, other than Statement of the Terms of Substance of
those that may be withheld from the
the Proposed Rule Change
public in accordance with the
The CHX proposes to amend its
provisions of 5 U.S.C. 552, will be
Schedule of Participant Fees and
available for Web site viewing and
Assessments (the ‘‘Fee Schedule’’),
printing in the Commission’s Public
effective February 1, 2010, to change its
Reference Room, on official business
transaction fees and rebates to Exchange
days between the hours of 10 a.m. and
Participants for transactions involving
3 p.m. Copies of the filing also will be
issues priced less than one dollar that
available for inspection and copying at
the principal office of the Exchange. All occur within the Exchange’s Matching
System. The text of this proposed rule
comments received will be posted
change is available on the Exchange’s
without change; the Commission does
Web site at https://www.chx.com/rules/
not edit personal identifying
proposed_rules.htm and in the
information from submissions. You
Commission’s Public Reference Room,
should submit only information that
100 F Street, NE., Washington, DC
you wish to make available publicly. All 20549.
submissions should refer to File
Number SR–CBOE–2010–012 and
10 17 CFR 200.30–3(a)(12).
should be submitted on or before March
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3, 2010.
3 15
4 17
VerDate Nov<24>2008
16:21 Feb 09, 2010
Jkt 220001
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
Frm 00160
Fmt 4703
Sfmt 4703
6781
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
CHX included statements concerning
the purpose of and basis for the
proposed rule changes and discussed
any comments it received regarding the
proposal. The text of these statements
may be examined at the places specified
in Item IV below. The CHX 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
Changes
1. Purpose
Through this filing, the Exchange
would amend its Fee Schedule to
increase the provide credit to Exchange
Participants for transactions involving
issues priced less than one dollar that
occur within the Exchange’s Matching
System.
The Exchange proposes to increase
the provide credit in the transactions
described above from 0.10% to 0.15% of
the trade value.5 The Exchange believes
that the increased rebate will help
attract additional orders to be displayed
and executed on our trading facilities.
The Exchange notes that some of our
competitors have recently raised their
provide rebates for securities priced
under $1, and that our proposed
increase will help us remain
competitive with these entities.6
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 7 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 8 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among its members. Among other
things, the change to the fee schedule
would provide incentives to
Participants to increase the amount of
liquidity provided on our trading
facilities for securities priced less than
$1, which may contribute to an increase
5 ‘‘Trade value’’ is defined in our Fee Schedule as
‘‘a dollar amount equal to the price per share
multiplied by the number of shares executed.’’
6 The Direct Edge ECN raised its provide credit to
0.15% for transactions under $1 in Tape A, B and
C securities for its EDGX trading platform beginning
in the month of January 2010.
7 15 U.S.C. 78f.
8 15 U.S.C. 78f(b)(4).
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]]>Agencies
[Federal Register Volume 75, Number 27 (Wednesday, February 10, 2010)]
[Notices]
[Pages 6779-6781]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-2959]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61494; File No. SR-CBOE-2010-012]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Rule 8.85 and Rule 8.92 Regarding the
Requirement To Own an Exchange Membership
February 4, 2010.
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 February 2, 2010, Chicago Board Options Exchange, Incorporated
(``CBOE'' or the ``Exchange'') filed with the Securities and Exchange
Commission
[[Page 6780]]
(``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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to amend proposes to amend proposes to amend [sic]
Rule 8.85 and Rule 8.92 regarding the requirement to own an Exchange
membership. The text of the rule proposal is available on the
Exchange's Web site (https://www.cboe.org/legal), at the Exchange's
Office of the Secretary and at the Commission.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
CBOE proposes to amend Rule 8.85 and Rule 8.92 to eliminate the
requirement that a DPM organization and an e-DPM organization are
required to own at least one Exchange membership. Instead, each DPM
organization and each e-DPM organization will be required to own or
lease such number of Exchange memberships as may be necessary based on
the aggregate ``appointment cost'' for the classes allocated to the DPM
organization or e-DPM organization. CBOE established this ownership
requirement with respect to DPMs in 2000 and, at the time, believed
that it was appropriate and would encourage DPMs to have a long-term
commitment to CBOE.\3\ CBOE later included this requirement when its e-
DPM program was adopted.
---------------------------------------------------------------------------
\3\ See Exchange Act Release No. 43186 (August 21, 2000), 65 FR
51880 (August 25, 2000) (SR-CBOE-99-37).
---------------------------------------------------------------------------
CBOE no longer believes that this requirement is necessary
particularly as its proposed restructuring approaches, and eliminating
it may attract new DPM organizations to CBOE who otherwise may not be
willing to apply to be a DPM due to this membership ownership
requirement. CBOE notes that in connection with its plan to restructure
from a Delaware non-stock corporation owned by its members to a
Delaware stock corporation that will be a wholly-owned subsidiary of
CBOE Holdings, this requirement will be eliminated. Specifically, as
part of CBOE's restructuring, the owners of membership interests will
become stockholders of CBOE Holdings through the conversion of their
memberships into shares of common stock of CBOE Holdings. Additionally,
Trading Permits will provide trading access to the Exchange, and not
Exchange memberships as is currently the case. A Trading Permit will
not convey any ownership interest in the Exchange, and will only be
available through the Exchange.\4\ As part of this proposed rule
change, CBOE proposes conforming changes to Rule 3.27, and proposes to
delete Interpretation .04 of Rule 8.85 and Interpretation .01 of Rule
8.92 which are no longer necessary in light of the elimination of the
membership ownership requirement.\5\
---------------------------------------------------------------------------
\4\ See Exchange Act Release No. 58425 (August 26, 2008), 73 FR
51652 (September 4, 2008) (noticing for comment SR-CBOE-2008-088).
CBOE has consented to an extension of time for Commission action on
this proposed rule change pending a membership vote.
\5\ CBOE notes that Temporary Members under Rule 3.19.02 will
not be adversely impacted by this proposed rule change.
---------------------------------------------------------------------------
In connection with this proposed rule change, CBOE proposes to
delete Interpretation .03 of Rule 8.85, which was adopted in 2003 for
the purpose of allowing a senior principal's ownership of a membership
to satisfy the requirement on behalf of the DPM organization, but only
if the senior principal meets certain criteria. In light of the fact
that CBOE is eliminating the membership ownership requirement,
Interpretation .03 no longer is applicable or necessary.
2. Statutory Basis
The Exchange believes the rule proposal is consistent with the
Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations under the Act applicable to a national securities exchange
and, in particular, the requirements of Section 6(b) of the Act.\6\
Specifically, the Exchange believes that the proposed rule change is
consistent with the Section 6(b)(5) Act \7\ requirements that the rules
of an exchange be designed to promote just and equitable principles of
trade, to prevent fraudulent and manipulative acts and, in general, to
protect investors and the public interest. The DPM and e-DPM membership
ownership requirement is no longer necessary and eliminating it may
attract new organizations to act in the capacity of a DPM (or e-DPM).
Additionally, this requirement will be eliminated in connection with
CBOE's restructuring.
---------------------------------------------------------------------------
\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 not necessary or appropriate in furtherance of
the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule does not (i) significantly
affect the protection of investors or the public interest; (ii) impose
any significant burden on competition; and (iii) become operative for
30 days from the date on which it was filed, or such shorter time as
the Commission may designate if consistent with the protection of
investors and the public interest, provided that the self-regulatory
organization has given the Commission written notice of its intent to
file the proposed rule change at least five business days prior to the
date of filing of the proposed rule change or such shorter time as
designated by the Commission, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6) thereunder.\9\ 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.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
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[[Page 6781]]
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-2010-012 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-2010-012. 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 Web site viewing and
printing in the Commission's Public Reference Room, 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 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-2010-012 and should be submitted on or before March
3, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-2959 Filed 2-9-10; 8:45 am]
BILLING CODE 8011-01-P
