Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Approval of Proposed Rule Change To Amend Certain Rules Pertaining to Credit Options, 73155-73156 [2010-29893]
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Federal Register / Vol. 75, No. 228 / Monday, November 29, 2010 / Notices
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2010–033 and should be submitted on
or before December 20, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–29895 Filed 11–26–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Granting Approval
of Proposed Rule Change To Amend
Certain Rules Pertaining to Credit
Options
November 19, 2010.
mstockstill on DSKH9S0YB1PROD with NOTICES
I. Introduction
On September 20, 2010, the Chicago
Board Options Exchange, Incorporated
(‘‘CBOE’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
17:57 Nov 26, 2010
Jkt 223001
II. Description of the Proposal
The Exchange proposes to amend its
rules governing Credit Options 4 to make
three substantive changes. First, CBOE
proposes to permit the Exchange to fix
the exercise settlement value for Credit
Default Options, on a class-by-class
basis, at $1 or $100, or at a value
between those two points. Currently, the
exercise settlement value is fixed at
$100. Since the cash settlement amount
for Credit Default Options is the product
of the exercise settlement value
multiplied by a contract multiplier that
may be fixed by the Exchange on a
class-by-class basis within a range of
1 to 1,000, this change will enable the
Exchange to list a Credit Default Option
contact with a cash settlement amount
that could be arrived at in different
ways.5 Second, the proposal would
permit the Exchange to establish the
minimum price variation (‘‘MPV’’) for all
Credit Options, which is currently
$0.05, on a class-by-class basis, at an
increment no less than $0.01, which
would permit more pricing points, such
as when lower exercise settlement
values are designated. Third, the
proposal would give the Exchange
authority to list Credit Options that
contemplate only a single credit event.
Currently, CBOE rules for Credit
Options enumerate several potential
credit events, the occurrence of any one
of which could allow the Credit Option
1 15
[Release No. 34–63352; File No. SR–CBOE–
2010–046]
9 17
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend its rules relating to Credit
Options. The proposed rule change was
published for comment in the Federal
Register on October 7, 2010.3 The
Commission received no comments on
the proposal. This order approves the
proposed rule change.
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 63026
(October 1, 2010), 75 FR 62167 (‘‘Notice’’).
4 Credit Options include Credit Default Options
and Credit Default Basket Options. Credit Default
Options are cash-settled binary options that are
automatically exercised upon the occurrence of
specified credit events or expire worthless. See
CBOE Rule 29.1(b); Securities Exchange Act Release
No. 55871 (June 6, 2007), 72 FR 32372 (June 12,
2007) (SR–CBOE–2006–84) (order approving
CBOE’s proposed rules to list and trade Credit
Default Options). Credit Default Basket Options are
cash-settled binary options based on a basket of at
least two reference entities. See CBOE Rule 29.1(h);
Securities Exchange Act Release No. 56275 (August
17, 2007), 72 FR 47097 (August 22, 2007) (SR–
CBOE–2007–26) (order approving CBOE’s proposed
rules to list and trade Credit Default Basket
Options).
5 The Exchange has represented that it will not
list more than one Credit Default Option contract
with a cash settlement amount arrived at in
different ways. See Notice at note 8 and
accompanying text.
2 17
PO 00000
Frm 00129
Fmt 4703
Sfmt 4703
73155
to be exercised. For example, a failureto-pay default will always be a
designated credit event for each class,
and the Exchange may, on a class-byclass basis, specify other events of
default or a restructuring.6 The
Exchange proposes to amend its rules to
permit it to list Credit Options
designating a single credit event, such
as a failure-to-pay default, another event
of default, or a restructuring. The
Exchange also proposes to make a
technical, non-substantive change to
one of its rules governing Credit
Options, Rule 29.3.
III. Discussion and Commission’s
Findings
After careful consideration, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.7 In
particular, the Commission finds that
the proposed rule change is consistent
with the requirements of Section 6(b)(5)
of the Act,8 which requires, among other
things, that the Exchange’s rules be
designed to prevent fraudulent and
manipulative acts and practices; to
promote just and equitable principles of
trade; to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities; 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.
The Commission believes that the
proposal to authorize the Exchange to
list Credit Options that contemplate
only a single credit event is consistent
with the Act. In addition, the
Commission believes that the proposal
to allow the Exchange flexibility to fix
the exercise settlement value for Credit
Default Options within a range of $1 to
$100 is consistent with the Act. With
this change, the Exchange could list a
contract with a cash settlement value of
$10,000 with a multiplier of 1,000 and
an exercise settlement amount of $10, or
with a multiplier of 100 and an exercise
settlement amount of $100. There could
be concerns if the Exchange were to
seek to list Credit Default Options
having the same cash settlement value
but with different combinations of
multiplier and cash settlement amount.
6 See
CBOE Rules 29.2 and 29.2A.
approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
8 15 U.S.C. 78f(b)(5).
7 In
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29NON1
73156
Federal Register / Vol. 75, No. 228 / Monday, November 29, 2010 / Notices
This could fragment the market and
dilute the liquidity of economically
identical products. The Exchange has
represented, however, that it will not
list more than one Credit Default Option
contract with a cash settlement value
that has been arrived at in multiple
ways.9 The Commission’s approval of
this aspect of the proposal incorporates
that representation.10
Finally, the Commission believes that
the proposal to use an MPV of as little
as $0.01 for all Credit Options is
consistent with the Act. With exercise
settlement values as low as $1, the
ability to set the MPV at $0.01 would
make available 100 price points for
quoting bids and offers in the range of
$0 to $1, as opposed to only 20 price
points under the current MPV of $0.05.
The CBOE has represented that it has
analyzed its capacity and believes that
it and the Options Price Reporting
Authority have the necessary systems
capacity to handle the additional traffic
associated with the ability to designate
$0.01 as the MPV for Credit Options;
and that the Exchange believes that the
change will not lead to a proliferation of
quotes and thus do not have multiple
series with different strike prices,
because Credit Options do not have
strike prices.11
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,12 that the
proposed rule change (SR–CBOE–2010–
046), be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–29893 Filed 11–26–10; 8:45 am]
Jacqueline White,
Chief, Administrative Information Branch.
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
Data Collection Available for Public
Comments and Recommendations
mstockstill on DSKH9S0YB1PROD with NOTICES
17:57 Nov 26, 2010
Jkt 223001
[FR Doc. 2010–29807 Filed 11–26–10; 8:45 am]
BILLING CODE 4710–10–P
DEPARTMENT OF STATE
[Public Notice 7249]
Bureau of Western Hemisphere Affairs;
Executive Order 11423, as Amended;
Notice of Receipt of Application for a
Presidential Permit To Renovate and
Expand the San Ysidro Land Port of
Entry on the U.S.-Mexico Border at San
Diego, CA and Tijuana, Baja CA,
Mexico
Department of State.
Notice.
AGENCY:
BILLING CODE 8025–01–P
ACTION:
[Public Notice: 4728]
supra note 5.
Commission also notes that the CBOE
currently has the flexibility to set the exercise
settlement value for binary options listed on the
Exchange on a class-by-class basis. See CBOE Rule
22.1(e). See also Notice at note 9 and accompanying
text.
11 See Notice. The Commission also notes that the
Exchange has the discretion to establish the MPV
on a class-by-class basis for binary options at an
increment no less than $0.01. See CBOE Rule
22.13(b).
12 15 U.S.C. 78s(b)(2).
13 17 CFR 200.30–3(a)(12).
10 The
Dated: September 28, 2010.
Hillary Rodham Clinton,
Secretary of State.
The Department of State
hereby gives notice that, on November
10, 2010, it received an application for
a Presidential Permit to authorize the
renovation and expansion of the San
Ysidro border crossing facility on the
U.S.-Mexico border at San Diego,
California and Tijuana, Baja California,
Mexico. The General Services
Administration (GSA) filed this
application and is acting as the project’s
sponsor. The Department of State’s
jurisdiction over this application is
based upon Executive Order 11423 of
August 16, 1968, as amended. As
provided in E.O. 11423, the Department
is circulating this application to relevant
federal and state agencies for review and
SUMMARY:
Notice and request for
comments.
9 See
Attorney General and the Secretary of
the Treasury, the Secretary of State has
concluded that there is a sufficient
factual basis to find that Lashkar-eTayyiba, also known under the aliases
listed above, uses or has used additional
aliases, namely, Falah-I–Insaniat
Foundation, FiF, Falah-e-Insaniat
Foundation, Falah-e-Insaniyat, Falah-iInsaniyat, Falah Insania, Welfare of
Humanity, Humaniatarian Welfare
Foundation, Human Welfare
Foundation.
Therefore, effective upon the date of
publication in the Federal Register, the
Secretary of State hereby amends the
2003 redesignation of Lashkar-e-Tayyiba
as a foreign terrorist organization,
pursuant to § 219(b) of the INA (8 U.S.C.
1189(b)), to include the following new
aliases and other possible
transliterations thereof: Falah-I–Insaniat
Foundation, FiF, Falah-e-Insaniat
Foundation, Falah-e-Insaniyat, Falah-iInsaniyat, Falah Insania, Welfare of
Humanity, Humaniatarian Welfare
Foundation, Human Welfare
Foundation.
[FR Doc. 2010–29946 Filed 11–26–10; 8:45 am]
DEPARTMENT OF STATE
ACTION:
VerDate Mar<15>2010
In accordance with the
Paperwork Reduction Act of 1995, this
notice announces the Small Business
Administration’s intentions to request
approval on a new and/or currently
approved information collection.
DATES: Submit comments on or before
January 28, 2011.
ADDRESSES: Send all comments
regarding whether this information
collection is necessary for the proper
performance of the function of the
agency, whether the burden estimates
are accurate, and if there are ways to
minimize the estimated burden and
enhance the quality of the collection, to
Dean Koppel, Assistant Administrator,
Office of Policy and Research, Small
Business Administration, 409 3rd Street,
6th Floor, Washington, DC 20416.
FOR FURTHER INFORMATION CONTACT:
Dean Koppel, Assistant Administrator,
Office of Policy and Research, 202–205–
7332, dean.koppel@sba.gov Curtis B.
Rich, Management Analyst, 202–205–
7030 curtis.rich@sba.gov.
SUPPLEMENTARY INFORMATION: A small
business determined to be non
responsible for award of a specific
prime Government contract by a
Government contracting office has the
right to appeal that decision through the
Small Business Administration (SBA).
The information contained on this form,
as well as, other information developed
by SBA, is used in the evaluation
process.
Title: ‘‘SBA Application for Certificate
of Competency.’’
Description of Respondents: Prime
Government Contractors.
Form Number: 1531.
Annual Responses: 275.
Annual Burden: 2,200.
SUMMARY:
The Amended Designation of Lashkare-Tayyiba (LT, LeT), aka Lashkar-eToiba, aka Lashkar-i-Taiba, aka al
Mansoorian, aka al Mansooreen, aka
Army of the Pure, aka Army of the
Righteous, aka Army of the Pure and
Righteous as a Foreign Terrorist
Organization pursuant to Section
219(b) of the Immigration and
Nationality Act
Based upon a review of the
administrative record assembled in this
matter, and in consultation with the
PO 00000
Frm 00130
Fmt 4703
Sfmt 4703
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]]>Agencies
[Federal Register Volume 75, Number 228 (Monday, November 29, 2010)]
[Notices]
[Pages 73155-73156]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-29893]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63352; File No. SR-CBOE-2010-046]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Order Granting Approval of Proposed Rule Change To Amend
Certain Rules Pertaining to Credit Options
November 19, 2010.
I. Introduction
On September 20, 2010, the Chicago Board Options Exchange,
Incorporated (``CBOE'' or ``Exchange'') filed with the Securities and
Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to amend its rules relating to
Credit Options. The proposed rule change was published for comment in
the Federal Register on October 7, 2010.\3\ The Commission received no
comments on the proposal. This order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 63026 (October 1,
2010), 75 FR 62167 (``Notice'').
---------------------------------------------------------------------------
II. Description of the Proposal
The Exchange proposes to amend its rules governing Credit Options
\4\ to make three substantive changes. First, CBOE proposes to permit
the Exchange to fix the exercise settlement value for Credit Default
Options, on a class-by-class basis, at $1 or $100, or at a value
between those two points. Currently, the exercise settlement value is
fixed at $100. Since the cash settlement amount for Credit Default
Options is the product of the exercise settlement value multiplied by a
contract multiplier that may be fixed by the Exchange on a class-by-
class basis within a range of 1 to 1,000, this change will enable the
Exchange to list a Credit Default Option contact with a cash settlement
amount that could be arrived at in different ways.\5\ Second, the
proposal would permit the Exchange to establish the minimum price
variation (``MPV'') for all Credit Options, which is currently $0.05,
on a class-by-class basis, at an increment no less than $0.01, which
would permit more pricing points, such as when lower exercise
settlement values are designated. Third, the proposal would give the
Exchange authority to list Credit Options that contemplate only a
single credit event. Currently, CBOE rules for Credit Options enumerate
several potential credit events, the occurrence of any one of which
could allow the Credit Option to be exercised. For example, a failure-
to-pay default will always be a designated credit event for each class,
and the Exchange may, on a class-by-class basis, specify other events
of default or a restructuring.\6\ The Exchange proposes to amend its
rules to permit it to list Credit Options designating a single credit
event, such as a failure-to-pay default, another event of default, or a
restructuring. The Exchange also proposes to make a technical, non-
substantive change to one of its rules governing Credit Options, Rule
29.3.
---------------------------------------------------------------------------
\4\ Credit Options include Credit Default Options and Credit
Default Basket Options. Credit Default Options are cash-settled
binary options that are automatically exercised upon the occurrence
of specified credit events or expire worthless. See CBOE Rule
29.1(b); Securities Exchange Act Release No. 55871 (June 6, 2007),
72 FR 32372 (June 12, 2007) (SR-CBOE-2006-84) (order approving
CBOE's proposed rules to list and trade Credit Default Options).
Credit Default Basket Options are cash-settled binary options based
on a basket of at least two reference entities. See CBOE Rule
29.1(h); Securities Exchange Act Release No. 56275 (August 17,
2007), 72 FR 47097 (August 22, 2007) (SR-CBOE-2007-26) (order
approving CBOE's proposed rules to list and trade Credit Default
Basket Options).
\5\ The Exchange has represented that it will not list more than
one Credit Default Option contract with a cash settlement amount
arrived at in different ways. See Notice at note 8 and accompanying
text.
\6\ See CBOE Rules 29.2 and 29.2A.
---------------------------------------------------------------------------
III. Discussion and Commission's Findings
After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\7\ In particular, the Commission finds that the proposed rule
change is consistent with the requirements of Section 6(b)(5) of the
Act,\8\ which requires, among other things, that the Exchange's rules
be designed to prevent fraudulent and manipulative acts and practices;
to promote just and equitable principles of trade; to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities; 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.
---------------------------------------------------------------------------
\7\ In approving this proposed rule change, the Commission notes
that it has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission believes that the proposal to authorize the Exchange
to list Credit Options that contemplate only a single credit event is
consistent with the Act. In addition, the Commission believes that the
proposal to allow the Exchange flexibility to fix the exercise
settlement value for Credit Default Options within a range of $1 to
$100 is consistent with the Act. With this change, the Exchange could
list a contract with a cash settlement value of $10,000 with a
multiplier of 1,000 and an exercise settlement amount of $10, or with a
multiplier of 100 and an exercise settlement amount of $100. There
could be concerns if the Exchange were to seek to list Credit Default
Options having the same cash settlement value but with different
combinations of multiplier and cash settlement amount.
[[Page 73156]]
This could fragment the market and dilute the liquidity of economically
identical products. The Exchange has represented, however, that it will
not list more than one Credit Default Option contract with a cash
settlement value that has been arrived at in multiple ways.\9\ The
Commission's approval of this aspect of the proposal incorporates that
representation.\10\
---------------------------------------------------------------------------
\9\ See supra note 5.
\10\ The Commission also notes that the CBOE currently has the
flexibility to set the exercise settlement value for binary options
listed on the Exchange on a class-by-class basis. See CBOE Rule
22.1(e). See also Notice at note 9 and accompanying text.
---------------------------------------------------------------------------
Finally, the Commission believes that the proposal to use an MPV of
as little as $0.01 for all Credit Options is consistent with the Act.
With exercise settlement values as low as $1, the ability to set the
MPV at $0.01 would make available 100 price points for quoting bids and
offers in the range of $0 to $1, as opposed to only 20 price points
under the current MPV of $0.05. The CBOE has represented that it has
analyzed its capacity and believes that it and the Options Price
Reporting Authority have the necessary systems capacity to handle the
additional traffic associated with the ability to designate $0.01 as
the MPV for Credit Options; and that the Exchange believes that the
change will not lead to a proliferation of quotes and thus do not have
multiple series with different strike prices, because Credit Options do
not have strike prices.\11\
---------------------------------------------------------------------------
\11\ See Notice. The Commission also notes that the Exchange has
the discretion to establish the MPV on a class-by-class basis for
binary options at an increment no less than $0.01. See CBOE Rule
22.13(b).
---------------------------------------------------------------------------
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\12\ that the proposed rule change (SR-CBOE-2010-046), be, and it
hereby is, approved.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-29893 Filed 11-26-10; 8:45 am]
BILLING CODE 8011-01-P
