Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Proposed Rule Change To Permit $1 Strikes for Options on Trust Issued Receipts, 21373-21375 [2010-9457]
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WReier-Aviles on DSKGBLS3C1PROD with NOTICES
Federal Register / Vol. 75, No. 78 / Friday, April 23, 2010 / Notices
Applicants’ Legal Analysis
1. Section 12(d)(1)(A) of the Act
provides that no registered investment
company may acquire securities of
another investment company if such
securities represent more than 3% of the
acquired company’s outstanding voting
stock or more than 5% of the acquiring
company’s total assets, or if such
securities, together with the securities of
other investment companies, represent
more than 10% of the acquiring
company’s total assets. Section
12(d)(1)(B) of the Act provides that no
registered open-end investment
company may sell its securities to
another investment company if the sale
will cause the acquiring company to
own more than 3% of the acquired
company’s voting stock, or cause more
than 10% of the acquired company’s
voting stock to be owned by investment
companies and companies controlled by
them.
2. Section 12(d)(1)(G) of the Act
provides that section 12(d)(1) will not
apply to securities of an acquired
company purchased by an acquiring
company if: (i) The acquired company
and acquiring company are part of the
same group of investment companies;
(ii) the acquiring company holds only
securities of acquired companies that
are part of the same group of investment
companies, government securities, and
short-term paper; (iii) the aggregate sales
loads and distribution-related fees of the
acquiring company and the acquired
company are not excessive under rules
adopted pursuant to section 22(b) or
section 22(c) of the Act by a securities
association registered under section 15A
of the Exchange Act or by the
Commission; and (iv) the acquired
company has a policy that prohibits it
from acquiring securities of registered
open-end investment companies or
registered unit investment trusts in
reliance on section 12(d)(1)(F) or (G) of
the Act.
3. Rule 12d1–2 under the Act permits
a registered open-end investment
company or a registered unit investment
trust that relies on section 12(d)(1)(G) of
the Act to acquire, in addition to
securities issued by another registered
investment company in the same group
of investment companies, government
securities, and short-term paper: (1)
Securities issued by an investment
company that is not in the same group
of investment companies, when the
acquisition is in reliance on section
12(d)(1)(A) or 12(d)(1)(F) of the Act; (2)
securities (other than securities issued
by an investment company); and (3)
securities issued by a money market
fund, when the investment is in reliance
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15:23 Apr 22, 2010
Jkt 220001
on rule 12d1–1 under the Act. For the
purposes of rule 12d1–2, ‘‘securities’’
means any security as defined in section
2(a)(36) of the Act.
4. Section 6(c) of the Act provides that
the Commission may exempt any
person, security, or transaction from any
provision of the Act, or from any rule
under the Act, if such exemption is
necessary or appropriate in the public
interest and consistent with the
protection of investors and the purposes
fairly intended by the policies and
provisions of the Act.
5. Applicants state that the proposed
arrangement would comply with the
provisions of rule 12d1–2 under the Act,
but for the fact that the Applicant Funds
may invest a portion of their assets in
Other Investments. Applicants request
an order under section 6(c) of the Act
for an exemption from rule 12d1–2(a) to
allow the Applicant Funds to invest in
Other Investments while investing in
Underlying Funds. Applicants assert
that permitting the Applicant Funds to
invest in Other Investments as described
in the application would not raise any
of the concerns that the requirements of
section 12(d)(1) were designed to
address.
Applicants’ Condition
Applicants agree that any order
granting the requested relief will be
subject to the following condition:
Applicants will comply with all
provisions of rule 12d1–2 under the Act,
except for paragraph (a)(2) to the extent
that it restricts any Applicant Fund from
investing in Other Investments as
described in the application.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–9400 Filed 4–22–10; 8:45 am]
21373
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Unapix
Entertainment, Inc. because it has not
filed any periodic reports since it filed
a Form 10–Q for the period ended June
30, 2000.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Unicomp,
Inc. because it has not filed any periodic
reports since it filed a Form 10–Q/A for
the period ended November 30, 2000.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Unidyne
Corp. because it has not filed any
periodic reports since it filed a Form
10–QSB for the period ended September
30, 1999.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
companies.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
securities of the above-listed companies
is suspended for the period from 9:30
a.m. EDT on April 21, 2010, through
11:59 p.m. EDT on May 4, 2010.
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2010–9568 Filed 4–21–10; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61935; File No. SR–CBOE–
2010–036]
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Proposed Rule
Change To Permit $1 Strikes for
Options on Trust Issued Receipts
[File No. 500–1]
April 16, 2010.
ULH Corp. (n/k/a UniHolding Corp.),
Unapix Entertainment, Inc., Unicomp,
Inc., and Unidyne Corp.; Order of
Suspension of Trading
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 April 13,
2010, Chicago Board Options Exchange,
Incorporated (the ‘‘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.
BILLING CODE 8011–01–P
April 21, 2010.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of ULH Corp.
(n/k/a UniHolding Corp.) because it has
not filed any periodic reports since it
filed a Form 10–K for the period ended
May 31, 1999.
PO 00000
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1 15
2 17
E:\FR\FM\23APN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
23APN1
21374
Federal Register / Vol. 75, No. 78 / Friday, April 23, 2010 / Notices
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 its Rule 5.5
to allow the Exchange to list options on
Trust Issued Receipts in $1 strike price
intervals. 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.
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to amend Rule 5.5, Series of
Option Contracts Open for Trading, by
adding new Interpretation and Policy
.17 that would allow the Exchange to
list options on the Trust Issued Receipts
(‘‘TIRs’’), including HOLding Company
Depository ReceiptS (‘‘HOLDRS’’), as
defined under Interpretation and Policy
.07 to Rule 5.3, in $1 or greater strike
price intervals, where the strike price is
$200 or less and $5 or greater where the
strike price is greater than $200.3
Currently, the strike price intervals for
options TIRs are as follows: (1) $2.50 or
greater where the strike price is $25.00
or less; (2) $5.00 or greater where the
strike price is greater than $25.00; and
(3) $10.00 or greater where the strike
price is greater than $200.4
The Exchange is seeking to permit $1
strikes for options on TIRs (where the
3 HOLDRS are a type of Trust Issued Receipt and
the current proposal would permit $1 strikes for
options on HOLDRS (where the strike price is less
than $200).
4 See CBOE Rule 5.5.01(c)–(e). See also Securities
Exchange Act Release No. 43043 (July 17, 2000), 65
FR 46520 (July 28, 2000) (SR–CBOE–2010–36)
(approval order for options on TIRs).
VerDate Nov<24>2008
15:23 Apr 22, 2010
Jkt 220001
strike price is less than $200) because
TIRs have characteristics similar to
exchange-traded funds (‘‘ETFs’’).
Specifically, TIRs are exchange-listed
securities representing beneficial
ownership of the specific deposited
securities represented by the receipts.
They are negotiable receipts issued by a
trust representing securities of issuers
that have been deposited and held on
behalf of the holders of the TIRs. TIRs,
which trade in round-lots of 100, and
multiples thereof, may be issued after
their initial offering through a deposit
with the trustee of the required number
of shares of common stock of the
underlying issuers. This characteristic
of TIRs is similar to that of ETFs which
also may be created on any business day
upon receipt of the requisite securities
or other investment assets comprising a
creation unit. The trust only issues
receipts upon the deposit of the shares
of the underlying securities that are
represented by a round-lot of 100
receipts. Likewise, the trust will cancel,
and an investor may obtain, hold, trade
or surrender TIRs in a round-lot and
round-lot multiples of 100 receipts.
CBOE believes the marketplace and
investors expect options on TIRs to
trade in a similar manner to ETF
options. Strike prices for ETF options
are permitted in $1 or greater intervals
where the strike price is $200 or less
and $5 or greater where the strike price
is greater than $200.5 Accordingly, the
Exchange believes that the rationale for
permitting $1 strikes for ETF options
equally applies to permitting $1 strikes
for options on TIRs and the Exchange
believes that investors will be better
served if $1 strike price intervals are
available for options on TIRs (where the
strike price is less than $200).
CBOE has analyzed its capacity and
represents that it believes the Exchange
and the Options Price Reporting
Authority have the necessary systems
capacity to handle the additional traffic
associated with the listing and trading
of $1 strikes (where the strike price is
less than $200) for options on TIRs.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act 6
and the rules and regulations
thereunder and, in particular, the
requirements of Section 6(b) of the Act.7
Specifically, the Exchange believes the
proposed rule change is consistent with
5 See CBOE Rule 5.5.08 (permitting $1 strikes for
options on Units covered under Interpretation and
Policy .06 to Rule 5.3, which are also known as ETF
options).
6 15 U.S.C. 78s(b)(1).
7 15 U.S.C. 78f(b).
PO 00000
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Sfmt 4703
the Section 6(b)(5) 8 requirements that
the rules of an exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts, to remove
impediments to and to perfect the
mechanism for a free and open market
and a national market system, and, in
general, to protect investors and the
public interest by allowing the
Exchange to list options on TIRs at $1
strike price intervals.
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
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:
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, as amended, 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–2010–036 on the
subject line.
8 15
E:\FR\FM\23APN1.SGM
U.S.C. 78f(b)(5).
23APN1
Federal Register / Vol. 75, No. 78 / Friday, April 23, 2010 / Notices
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–2010–036. 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 such filing also will be
available for inspection and copying at
the principal offices 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–2010–036, and
should be submitted on or before May
10, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–9457 Filed 4–22–10; 8:45 am]
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61932; File No. SR–Phlx–
2010–51]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to a
New Category of Fees for
‘‘Professional’’
April 16, 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 March 31,
2010, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to adopt fees
for a new type of participant called
‘‘professional.’’ 3
While changes to the Exchange’s Fee
Schedule pursuant to this proposal are
effective upon filing, the Exchange has
designated this proposal to be operative
on April 1, 2010.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaqtrader.com/
micro.aspx?id=PHLXfilings, at the
principal office of the Exchange, at the
Commission’s Public Reference Room,
and on the Commission’s Web site at
https://www.sec.gov.
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.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 61802
(March 30, 2010) (SR–Phlx–2010–05).
2 17
9 17
CFR 200.30–3(a)(12).
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15:23 Apr 22, 2010
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21375
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to adopt a new category of
fees, ‘‘professional.’’ The Exchange
believes that the proposed fees for
professional orders will allow the
Exchange to remain competitive with
other options exchanges who apply fees
to professional orders.
The Exchange defines a ‘‘professional’’
as any person or entity that (i) is not a
broker or dealer in securities, and (ii)
places more than 390 orders in listed
options per day on average during a
calendar month for its own beneficial
account(s) 4 (hereinafter ‘‘Professional’’).
The Exchange proposes to add a
‘‘Professional’’ fee to its fees and rebates
for adding and removing liquidity,
known as a ‘‘maker/taker’’ model by
amending Category I of its Fee
Schedule, Fees and Rebates for Adding
and Removing Liquidity in Select
Symbols, to adopt a $0.20 rebate for
adding liquidity and a $0.40 fee for
removing liquidity for Professional
orders. There are currently five
categories of participants in Category I:
(i) Specialists, Registered Options
Traders (‘‘ROTs’’), Streaming Quote
Traders (‘‘SQTs’’) 5 and Remote
Streaming Quote Traders (‘‘RSQTs’’); 6
(ii) customers;7 (iii) specialists, SQTs
and RSQTs that receive Directed Orders
(‘‘Directed Participants’’ or ‘‘Directed
Specialists, RSQTs or SQTs’’); 8
4 A Professional will be treated in the same
manner as an off-floor broker-dealer for purposes of
Rules 1014(g)(except with respect to all-or-none
orders, which will be treated like customer orders),
1033(e), 1064.02 (except professional orders will be
considered customer orders subject to facilitation),
and 1080.08 as well as Options Floor Procedure
Advices B–6, B–11 and F–5. Member organizations
must indicate whether orders are for professionals.
5 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).
6 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).
7 This applies to all customer orders, directed and
non-directed.
8 See Exchange Rule 1080(l), ‘‘* * * The term
‘Directed Specialist, RSQT, or SQT’ means a
specialist, RSQT, or SQT that receives a Directed
Order.’’ A Directed Participant has a higher quoting
E:\FR\FM\23APN1.SGM
Continued
23APN1
]]>Agencies
[Federal Register Volume 75, Number 78 (Friday, April 23, 2010)]
[Notices]
[Pages 21373-21375]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-9457]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61935; File No. SR-CBOE-2010-036]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Proposed Rule Change To Permit $1 Strikes for
Options on Trust Issued Receipts
April 16, 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 April 13, 2010, Chicago Board Options Exchange, Incorporated (the
``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.
[[Page 21374]]
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 its Rule 5.5 to allow the Exchange to list
options on Trust Issued Receipts in $1 strike price intervals. 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
The purpose of the proposed rule change is to amend Rule 5.5,
Series of Option Contracts Open for Trading, by adding new
Interpretation and Policy .17 that would allow the Exchange to list
options on the Trust Issued Receipts (``TIRs''), including HOLding
Company Depository ReceiptS (``HOLDRS''), as defined under
Interpretation and Policy .07 to Rule 5.3, in $1 or greater strike
price intervals, where the strike price is $200 or less and $5 or
greater where the strike price is greater than $200.\3\
---------------------------------------------------------------------------
\3\ HOLDRS are a type of Trust Issued Receipt and the current
proposal would permit $1 strikes for options on HOLDRS (where the
strike price is less than $200).
---------------------------------------------------------------------------
Currently, the strike price intervals for options TIRs are as
follows: (1) $2.50 or greater where the strike price is $25.00 or less;
(2) $5.00 or greater where the strike price is greater than $25.00; and
(3) $10.00 or greater where the strike price is greater than $200.\4\
---------------------------------------------------------------------------
\4\ See CBOE Rule 5.5.01(c)-(e). See also Securities Exchange
Act Release No. 43043 (July 17, 2000), 65 FR 46520 (July 28, 2000)
(SR-CBOE-2010-36) (approval order for options on TIRs).
---------------------------------------------------------------------------
The Exchange is seeking to permit $1 strikes for options on TIRs
(where the strike price is less than $200) because TIRs have
characteristics similar to exchange-traded funds (``ETFs'').
Specifically, TIRs are exchange-listed securities representing
beneficial ownership of the specific deposited securities represented
by the receipts. They are negotiable receipts issued by a trust
representing securities of issuers that have been deposited and held on
behalf of the holders of the TIRs. TIRs, which trade in round-lots of
100, and multiples thereof, may be issued after their initial offering
through a deposit with the trustee of the required number of shares of
common stock of the underlying issuers. This characteristic of TIRs is
similar to that of ETFs which also may be created on any business day
upon receipt of the requisite securities or other investment assets
comprising a creation unit. The trust only issues receipts upon the
deposit of the shares of the underlying securities that are represented
by a round-lot of 100 receipts. Likewise, the trust will cancel, and an
investor may obtain, hold, trade or surrender TIRs in a round-lot and
round-lot multiples of 100 receipts.
CBOE believes the marketplace and investors expect options on TIRs
to trade in a similar manner to ETF options. Strike prices for ETF
options are permitted in $1 or greater intervals where the strike price
is $200 or less and $5 or greater where the strike price is greater
than $200.\5\ Accordingly, the Exchange believes that the rationale for
permitting $1 strikes for ETF options equally applies to permitting $1
strikes for options on TIRs and the Exchange believes that investors
will be better served if $1 strike price intervals are available for
options on TIRs (where the strike price is less than $200).
---------------------------------------------------------------------------
\5\ See CBOE Rule 5.5.08 (permitting $1 strikes for options on
Units covered under Interpretation and Policy .06 to Rule 5.3, which
are also known as ETF options).
---------------------------------------------------------------------------
CBOE has analyzed its capacity and represents that it believes the
Exchange and the Options Price Reporting Authority have the necessary
systems capacity to handle the additional traffic associated with the
listing and trading of $1 strikes (where the strike price is less than
$200) for options on TIRs.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act \6\ and the rules and regulations thereunder and, in
particular, the requirements of Section 6(b) of the Act.\7\
Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \8\ requirements that the rules of
an exchange be designed to promote just and equitable principles of
trade, to prevent fraudulent and manipulative acts, to remove
impediments to and to perfect the mechanism for a free and open market
and a national market system, and, in general, to protect investors and
the public interest by allowing the Exchange to list options on TIRs at
$1 strike price intervals.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(1).
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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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
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:
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, as amended, 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-2010-036 on the subject line.
[[Page 21375]]
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-2010-036. 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 such filing also will be available for inspection and copying at the
principal offices 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-2010-036, and
should be submitted on or before May 10, 2010.
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\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-9457 Filed 4-22-10; 8:45 am]
BILLING CODE 8011-01-P
