Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Multi-Class Broad Based Index Option Spread Orders, 10853-10855 [2010-4910]
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Federal Register / Vol. 75, No. 45 / Tuesday, March 9, 2010 / Notices
holders that are competing with Broker/
Dealers in the NYSE Amex marketplace.
In addition, basing the standard on the
number of orders that are entered in
listed options for a beneficial account(s)
assures that Professional Customer
account holders cannot inappropriately
avoid the purpose of the rule by
spreading their trading activity over
multiple exchanges, and using an
average number over a calendar month
will prevent gaming of the 390 order
threshold.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,20 in general, and furthers the
objectives of Section 6(b)(5) of the Act,21
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, 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. In particular, the
proposal will assure that retail investors
continue to receive the appropriate
marketplace advantages in NYSE Amex
marketplace, while furthering fair
competition among marketplace
professionals by treating them equally
within the NYSE Amex marketplace.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
sroberts on DSKD5P82C1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
20 15
21 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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19:04 Mar 08, 2010
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(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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–NYSEAmex–2010–18 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–NYSEAmex–2010–18. 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, 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 will
also be available for inspection and
copying at NYSE‘s principal office and
on its Internet Web site at https://
www.nyse.com. 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–
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
10853
NYSEAmex–2010–18 and should be
submitted on or before March 30, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–4909 Filed 3–8–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61628; File No. SR–CBOE–
2010–019]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Related to Multi-Class
Broad Based Index Option Spread
Orders
March 2, 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
18, 2010, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (‘‘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 Act3 and Rule
19b–4(f)(6) thereunder,4 which renders
the proposal 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 is proposing to amend
its rule related to multi-class broadbased index option spreads to include
options on index-linked securities (also
known as exchange-traded notes
(‘‘ETNs’’)) within the definition of an
eligible ‘‘broad-based index option.’’ 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.
22 17
CFR 200.30–3(a)(12).
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).
1 15
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10854
Federal Register / Vol. 75, No. 45 / Tuesday, March 9, 2010 / Notices
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
The Commission has approved
CBOE’s and other option exchanges’
proposals to enable the listing and
trading of options on ETNs.5 Options
trading has not commenced to date and
is contingent upon the Commission’s
approval of The Options Clearing
Corporation’s (‘‘OCC’’) proposed
supplement to the Options Disclosure
Document (‘‘ODD’’) that will provide
disclosure regarding options on indexlinked securities.6
Prior to the commencement of trading
options on ETNs, the Exchange is
proposing to amend CBOE Rule 24.19,
Multi-Class Broad-Based Index Option
Spread Orders, to include options on
ETNs within the definition of an eligible
‘‘broad-based index option’’ that may be
subject to the multi-class spread trading
procedures outlined in Rule 24.19.7
Specifically, the definition of an eligible
broad-based index option for purposes
of Rule 24.19 will be amended to
sroberts on DSKD5P82C1PROD with NOTICES
5 See
e.g., Securities Exchange Act Release Nos.
58204 (July 22, 2008), 73 FR 43807 (July 28, 2008)
(approving SR–CBOE–2008–64); 58203 (July 22,
2008), 73 FR 43812 (July 28, 2008) (approving SR–
NYSEArca–2008–57); 58985 (November 10, 2008),
73 FR 72538 (November 28, 2008) (approving SR–
ISE–2008–86).
6 OCC previously received Commission approval
to clear options based on Index-Linked Securities.
See Securities Exchange Act Release No. 60872
(October 23, 2009), 74 FR 55878 (October 29, 2009)
(SR–OCC–2009–14).
7 Rule 24.19 sets for a procedure for trading multiclass spread orders for eligible broad-based index
option classes. For purposes of Rule 24.19 only, the
term ‘‘broad-based index option’’ means ‘‘(i) options
on the Mini-NDX Index (MNX), Nasdaq-100 Index
(NDX), S&P 100 Index (OEX and XEO), iShares S&P
100 Index Fund (OEF), Nasdaq-100 Tracking Stock
(QQQ), and S&P 500 Index (SPX); and (ii) any other
broad-based index option or option on exchangetraded fund shares derived from a broad-based
index that is determined by the Exchange to create
an appropriate hedge with any other Broad-Based
Index Option under this Rule 24.19.’’ See Rule
24.19(a)(1).
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19:04 Mar 08, 2010
Jkt 220001
include an option on an ETN derived
from a broad-based index that is
determined by the Exchange to create an
appropriate hedge with any other broadbased index option under Rule 24.19.
This change to include ETNs is the same
as an existing provision in the rule that
provides that options on Units (also
known as exchange-traded funds
(‘‘ETFs’’)) that are derived from broadbased indices that are determined by the
Exchange to create an appropriate hedge
with any other broad-based index
option may be subject to the multi-class
spread trading procedures.8
Without discounting the differences
between ETFs and ETNs, the Exchange
seeks to extend the trading conventions
applicable to options on ETFs to options
on ETNs. CBOE contends that the
inclusion of options on ETNs within the
broad-based index option definition for
purposes of the multi-class broad-based
index option spread trading procedures
is consistent with what is currently
permitted for options on ETFs.9
2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under Section 6(b)(5)10 that an exchange
have rules that are designed to promote
just and equitable principles of trade,
and to remove impediments to and
perfect the mechanism for a free and
open market and a national market
system, and, in general, to protect
investors and the public interest. In
particular, the proposed rule change
seeks to extend the application of the
multi-class broad-based index option
spread trading procedures under CBOE
Rule 24.19 to ETNs in a manner that is
consistent with what is currently
permitted for ETFs.
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.
8 The Exchange is also proposing a nonsubstantive change to the text of Rule 24.19(a)(1) to
include a cross-reference to Units (another term for
ETFs), which is defined under Interpretation and
Policy .06 to CBOE Rule 5.3.
9 Id.
10 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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 selfregulatory 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 11 and
Rule 19b–4(f)(6) thereunder.12 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:
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–2010–019 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–2010–019. 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/
11 15
12 17
E:\FR\FM\09MRN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
09MRN1
Federal Register / Vol. 75, No. 45 / Tuesday, March 9, 2010 / Notices
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, 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–
2010–019 and should be submitted on
or before March 30, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–4910 Filed 3–8–10; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61626; File No. SR–NYSE–
2010–07]
Self-Regulatory Organizations; New
York Stock Exchange, LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending
NYSE Rule 476 To Add a Provision for
Violations Relating to Failing To
Observe High Standards of
Commercial Honor and Just and
Equitable Principles of Trade
March 2, 2010.
sroberts on DSKD5P82C1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Rule 476 to add a provision for
violations relating to failing to observe
high standards of commercial honor and
just and equitable principles of trade.
The text of the proposed rule change is
available at the Exchange, the
Commission’s Public Reference Room,
and https://www.nyse.com.
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
BILLING CODE 8011–01–P
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 February
5, 2010, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
1. Purpose
In this filing, the New York Stock
Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) proposes to amend Rule
476 to add a provision for violations
relating to failing to observe high
standards of commercial honor and just
and equitable principles of trade. The
Commission previously approved an
amendment to NYSE Rule 476 to delete
subsection (a)(6), which concerned just
and equitable principles of trade.4 The
rationale for that deletion was because
NYSE adopted Rule 2010, which
provided for the same content as the
prior version of Rule 476(a)(6) and
which harmonized the Exchange rule
with the NYSE Amex LLC (‘‘NYSE
Amex’’) and Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
standards for just and equitable
principles of trade.
However, in deleting Rule 476(a)(6)
and replacing it with Rule 2010, the
13 17
1 15
VerDate Nov<24>2008
19:04 Mar 08, 2010
4 See Securities Exchange [sic] Release No. 59965
(May 21, 2009), 74 FR 25783 (May 29, 2009) (SR–
NYSE–2009–25).
Jkt 220001
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
10855
Exchange inadvertently deleted the
ability for the Exchange to bring charges
relating to failing to observe high
standards of commercial honor and just
and equitable principles of trade against
approved persons, principal executives,
and employees of member
organizations. As approved, NYSE Rule
2010 is applicable only to members and
member organizations. Accordingly, the
Exchange proposes to amend Rule 476,
which has an enabling provision to
bring charges against approved persons
and employees of member
organizations, to add subsection (a)(6) to
cover the same content that was
previously deleted. To ensure that the
standards for just and equitable
principles of trade are consistent across
Exchange rules, NYSE Amex, and
FINRA, the Exchange proposes to adopt
rule text that mirrors the standard set
forth in Rule 2010, which is virtually
identical to NYSE Amex Equities Rule
2010 and FINRA Rule 2010. As
proposed, NYSE Rule 476(a)(6) would
read as follows: ‘‘failing to observe high
standards of commercial honor and just
and equitable principles of trade.’’
In adopting this revised rule text for
Rule 476(a)(6), the Exchange would be
able to bring a charge relating to failing
to observe high standards of commercial
honor and just and equitable principles
of trade against not only members and
member organizations, but also against
principal executives, approved persons,
and employees of member
organizations. This proposal is
consistent with FINRA Rule 2010
because under FINRA Rule 0140,
persons associated with a FINRA
member have the same duties and
obligations as a member under FINRA
rules. Accordingly, FINRA has the
authority to charge an associated person
with a violation of Rule 2010. By adding
this standard to Rule 476(a)(6), the
Exchange will similarly have the
authority to charge an employee of a
member organization with a violation
relating to failing to observe high
standards of commercial honor and just
and equitable principles of trade.
To ensure full harmonization, the
Exchange also proposes amending Rule
476(a)(5) and deleting the phrase ‘‘fraud
or fraudulent acts’’ and replacing it with
the rule text from Rule 2020 to provide
that the Exchange can bring charges
against an employee of a member
organization for effecting any
transaction in, or inducing the purchase
or sale of, any security by means of any
manipulative, deceptive or other
fraudulent device or contrivance.
Finally, the Exchange proposes
deleting the reference to ‘‘allied
member,’’ which no longer is a category
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]]>Agencies
[Federal Register Volume 75, Number 45 (Tuesday, March 9, 2010)]
[Notices]
[Pages 10853-10855]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-4910]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61628; File No. SR-CBOE-2010-019]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Related to Multi-Class Broad Based Index Option Spread
Orders
March 2, 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 18, 2010, the Chicago Board Options Exchange, Incorporated
(``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (``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\ which renders the proposal
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 is proposing to amend its rule related to multi-class
broad-based index option spreads to include options on index-linked
securities (also known as exchange-traded notes (``ETNs'')) within the
definition of an eligible ``broad-based index option.'' 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.
[[Page 10854]]
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
The Commission has approved CBOE's and other option exchanges'
proposals to enable the listing and trading of options on ETNs.\5\
Options trading has not commenced to date and is contingent upon the
Commission's approval of The Options Clearing Corporation's (``OCC'')
proposed supplement to the Options Disclosure Document (``ODD'') that
will provide disclosure regarding options on index-linked
securities.\6\
---------------------------------------------------------------------------
\5\ See e.g., Securities Exchange Act Release Nos. 58204 (July
22, 2008), 73 FR 43807 (July 28, 2008) (approving SR-CBOE-2008-64);
58203 (July 22, 2008), 73 FR 43812 (July 28, 2008) (approving SR-
NYSEArca-2008-57); 58985 (November 10, 2008), 73 FR 72538 (November
28, 2008) (approving SR-ISE-2008-86).
\6\ OCC previously received Commission approval to clear options
based on Index-Linked Securities. See Securities Exchange Act
Release No. 60872 (October 23, 2009), 74 FR 55878 (October 29, 2009)
(SR-OCC-2009-14).
---------------------------------------------------------------------------
Prior to the commencement of trading options on ETNs, the Exchange
is proposing to amend CBOE Rule 24.19, Multi-Class Broad-Based Index
Option Spread Orders, to include options on ETNs within the definition
of an eligible ``broad-based index option'' that may be subject to the
multi-class spread trading procedures outlined in Rule 24.19.\7\
Specifically, the definition of an eligible broad-based index option
for purposes of Rule 24.19 will be amended to include an option on an
ETN derived from a broad-based index that is determined by the Exchange
to create an appropriate hedge with any other broad-based index option
under Rule 24.19. This change to include ETNs is the same as an
existing provision in the rule that provides that options on Units
(also known as exchange-traded funds (``ETFs'')) that are derived from
broad-based indices that are determined by the Exchange to create an
appropriate hedge with any other broad-based index option may be
subject to the multi-class spread trading procedures.\8\
---------------------------------------------------------------------------
\7\ Rule 24.19 sets for a procedure for trading multi-class
spread orders for eligible broad-based index option classes. For
purposes of Rule 24.19 only, the term ``broad-based index option''
means ``(i) options on the Mini-NDX Index (MNX), Nasdaq-100 Index
(NDX), S&P 100 Index (OEX and XEO), iShares S&P 100 Index Fund
(OEF), Nasdaq-100 Tracking Stock (QQQ), and S&P 500 Index (SPX); and
(ii) any other broad-based index option or option on exchange-traded
fund shares derived from a broad-based index that is determined by
the Exchange to create an appropriate hedge with any other Broad-
Based Index Option under this Rule 24.19.'' See Rule 24.19(a)(1).
\8\ The Exchange is also proposing a non-substantive change to
the text of Rule 24.19(a)(1) to include a cross-reference to Units
(another term for ETFs), which is defined under Interpretation and
Policy .06 to CBOE Rule 5.3.
---------------------------------------------------------------------------
Without discounting the differences between ETFs and ETNs, the
Exchange seeks to extend the trading conventions applicable to options
on ETFs to options on ETNs. CBOE contends that the inclusion of options
on ETNs within the broad-based index option definition for purposes of
the multi-class broad-based index option spread trading procedures is
consistent with what is currently permitted for options on ETFs.\9\
---------------------------------------------------------------------------
\9\ Id.
---------------------------------------------------------------------------
2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5)\10\ that an exchange have rules that
are designed to promote just and equitable principles of trade, and to
remove impediments to and perfect the mechanism for a free and open
market and a national market system, and, in general, to protect
investors and the public interest. In particular, the proposed rule
change seeks to extend the application of the multi-class broad-based
index option spread trading procedures under CBOE Rule 24.19 to ETNs in
a manner that is consistent with what is currently permitted for ETFs.
---------------------------------------------------------------------------
\10\ 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
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 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 \11\ and Rule 19b-4(f)(6)
thereunder.\12\ 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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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
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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-2010-019 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-2010-019. 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/
[[Page 10855]]
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, 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-2010-019 and should be submitted on or before March 30, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Florence E. Harmon,
Deputy Secretary.
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\13\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2010-4910 Filed 3-8-10; 8:45 am]
BILLING CODE 8011-01-P
