Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change Regarding Rule 4.20-Anti-Money Laundering Compliance Program, 80560-80561 [2010-32067]

Download as PDF 80560 Federal Register / Vol. 75, No. 245 / Wednesday, December 22, 2010 / Notices temporarily suspend 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: srobinson on DSKHWCL6B1PROD with NOTICES 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–2010–118 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–2010–118. 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 also will be available for inspection and copying at the principal office of the Exchange.15 All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only 15 The text of the proposed rule change is available on the Commission’s Web site at https:// www.sec.gov. VerDate Mar<15>2010 20:24 Dec 21, 2010 Jkt 223001 information that you wish to make available publicly. All submissions should refer to File Number SR– NYSEAmex–2010–118 and should be submitted on or before January 12, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–32087 Filed 12–21–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–63559; File No. SR–CBOE– 2010–109] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change Regarding Rule 4.20—Anti-Money Laundering Compliance Program December 16, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on December 2, 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 substantially 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 CBOE Rule 4.20 to require all Trading Permit Holders or TPH organizations to conduct independent testing during the first calendar year of becoming a Trading Permit Holder or TPH organization. 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’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CBOE included statements concerning 16 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00106 Fmt 4703 Sfmt 4703 the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to amend Rule 4.20—AntiMoney Laundering Compliance Program to require all Trading Permit Holders or TPH organizations to conduct independent testing during the first calendar year of becoming a Trading Permit Holder or TPH organization. CBOE Rule 4.20 generally requires annual (on a calendar-year basis) independent testing for compliance. However, if the Trading Permit Holder or TPH organization does not execute transactions for customers or otherwise hold customer accounts, or act as an introducing broker with respect to customer accounts (e.g., engages solely in proprietary trading or conducts business only with other brokerdealers), such ‘‘independent testing’’ is required every two years (on a calendaryear basis). The Exchange believes that it is prudent to amend this rule to require that all Trading Permit Holders or TPH organizations conduct testing during the first calendar year of the Trading Permit Holder or TPH organization’s existence to ensure antimoney laundering compliance is in place and established at the outset of the Trading Permit Holder’s or TPH organization’s existence, even if they would thereafter conduct such testing every two years. CBOE Interpretations and Policies .01 continues to provide that all Trading Permit Holders should undertake more frequent testing than required by Rule 4.20 if circumstances warrant (e.g., should the business mix of the Trading Permit Holder or TPH organization materially change, in the event of a merger or acquisition, in light of a systemic weaknesss uncovered via testing of the anti-money laundering program, or in response to any other ‘‘red flags’’).3 3 See Securities Exchange Act Release No. 57044 (December 27, 2007), 73 FR 2 (January 3, 2008) (SR– CBOE–2007–130). E:\FR\FM\22DEN1.SGM 22DEN1 Federal Register / Vol. 75, No. 245 / Wednesday, December 22, 2010 / Notices 80561 2. Statutory Basis Electronic Comments SMALL BUSINESS ADMINISTRATION The Exchange believes that the proposed rule change is consistent with Section 6(b) 4 of the Act and the rules and regulations thereunder, in general, and furthers the objectives of Section 6(b)(5),5 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanisms of a free and open market and a national market system, and, in general, to protect investors and the public interest. • 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–2010–109 on the subject line. Community Express Pilot Program 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 written comments on the proposal. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 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 or disapprove such proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. srobinson on DSKHWCL6B1PROD with 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: 4 15 5 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). VerDate Mar<15>2010 20:24 Dec 21, 2010 Jkt 223001 U.S. Small Business Administration (SBA). ACTION: Notice of short-term extension and termination of the Community Express Pilot Program. AGENCY: This notice announces the termination of the Community Express Pilot Program following a four month Send paper comments in triplicate to extension to April 30, 2011. As of May Elizabeth M. Murphy, Secretary, 1, 2011, no new Community Express Securities and Exchange Commission, loan applications will be approved. SBA 100 F Street, NE., Washington, DC is in the process of replacing this pilot 20549–1090. with two new lending initiatives aimed All submissions should refer to File at increasing 7(a) lending in Number SR–CBOE–2010–109. This file underserved communities which number should be included on the initiatives are expected to be available subject line if e-mail is used. To help the by April 30, 2011. Commission process and review your DATES: The Community Express Pilot comments more efficiently, please use Program is extended through April 30, only one method. The Commission will 2011, at which time the pilot program post all comments on the Commission’s will terminate. Internet Web site (https://www.sec.gov/ FOR FURTHER INFORMATION CONTACT: rules/sro.shtml). Copies of the Grady B. Hedgespeth, Office of submission, all subsequent Financial Assistance, U.S. Small amendments, all written statements Business Administration, 409 Third with respect to the proposed rule Street, SW., Washington, DC 20416; change that are filed with the Telephone (202) 205–6490; Commission, and all written grady.hedgespeth@sba.gov. communications relating to the SUPPLEMENTARY INFORMATION: The proposed rule change between the Community Express Pilot Program was Commission and any person, other than established in 1999 and was based on those that may be withheld from the the Agency’s SBA Express Program. public in accordance with the Lenders approved for participation in provisions of 5 U.S.C. 552, will be Community Express are authorized to available for Web site viewing and use the expedited loan processing printing in the Commission’s Public procedures in place for SBA Express for Reference Room, 100 F Street, NE., lending to distressed or underserved Washington, DC 20549, on official markets. In addition, participating lenders must arrange and, when business days between the hours of 10 necessary, pay for appropriate a.m. and 3 p.m. Copies of such filing also will be available for inspection and management and technical assistance for their Community Express borrowers. copying at the principal office of the To encourage lenders to make these CBOE. All comments received will be posted without change; the Commission loans, SBA provides its full 75–85 percent guaranty, rather than the 50 does not edit personal identifying percent guaranty the Agency provides information from submissions. You under SBA Express. The maximum loan should submit only information that you wish to make available publicly. All amount under this pilot program is $250,000. submissions should refer to File On June 30, 2008, SBA published a Number SR–CBOE–2010–109 and notice in the Federal Register to extend should be submitted on or before the Community Express Pilot Program January 12, 2011. through September 30, 2008, and to For the Commission, by the Division of notify the public of SBA’s plan to Trading and Markets, pursuant to delegated significantly restructure the pilot authority.6 program effective October 1, 2008. The notice also indicated that the Florence E. Harmon, restructured pilot program would be Deputy Secretary. extended through December 31, 2009 [FR Doc. 2010–32067 Filed 12–21–10; 8:45 am] (73 FR 36950). On January 5, 2010, SBA BILLING CODE 8011–01–P announced that to allow time to better evaluate the results of the program 6 17 CFR 200.30–3(a)(12). changes implemented in October 2008, SUMMARY: Paper Comments PO 00000 Frm 00107 Fmt 4703 Sfmt 4703 E:\FR\FM\22DEN1.SGM 22DEN1

Agencies

[Federal Register Volume 75, Number 245 (Wednesday, December 22, 2010)]
[Notices]
[Pages 80560-80561]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32067]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63559; File No. SR-CBOE-2010-109]


 Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of a Proposed Rule Change Regarding Rule 
4.20--Anti-Money Laundering Compliance Program

December 16, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on December 2, 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 
substantially 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 CBOE Rule 4.20 to require all Trading Permit 
Holders or TPH organizations to conduct independent testing during the 
first calendar year of becoming a Trading Permit Holder or TPH 
organization. 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's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, CBOE included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of those statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant parts of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to amend Rule 4.20--
Anti-Money Laundering Compliance Program to require all Trading Permit 
Holders or TPH organizations to conduct independent testing during the 
first calendar year of becoming a Trading Permit Holder or TPH 
organization. CBOE Rule 4.20 generally requires annual (on a calendar-
year basis) independent testing for compliance. However, if the Trading 
Permit Holder or TPH organization does not execute transactions for 
customers or otherwise hold customer accounts, or act as an introducing 
broker with respect to customer accounts (e.g., engages solely in 
proprietary trading or conducts business only with other broker-
dealers), such ``independent testing'' is required every two years (on 
a calendar-year basis). The Exchange believes that it is prudent to 
amend this rule to require that all Trading Permit Holders or TPH 
organizations conduct testing during the first calendar year of the 
Trading Permit Holder or TPH organization's existence to ensure anti-
money laundering compliance is in place and established at the outset 
of the Trading Permit Holder's or TPH organization's existence, even if 
they would thereafter conduct such testing every two years.
    CBOE Interpretations and Policies .01 continues to provide that all 
Trading Permit Holders should undertake more frequent testing than 
required by Rule 4.20 if circumstances warrant (e.g., should the 
business mix of the Trading Permit Holder or TPH organization 
materially change, in the event of a merger or acquisition, in light of 
a systemic weaknesss uncovered via testing of the anti-money laundering 
program, or in response to any other ``red flags'').\3\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 57044 (December 27, 
2007), 73 FR 2 (January 3, 2008) (SR-CBOE-2007-130).

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[[Page 80561]]

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) \4\ of the Act and the rules and regulations 
thereunder, in general, and furthers the objectives of Section 
6(b)(5),\5\ in particular, in that it is designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanisms of a free and open 
market and a national market system, and, in general, to protect 
investors and the public interest.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 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 written comments on the 
proposal.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 45 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 or disapprove 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 rule-comments@sec.gov. Please include 
File Number SR-CBOE-2010-109 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-2010-109. 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 such filing also will be available for 
inspection and copying at the principal office of the CBOE. 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-2010-109 and should be 
submitted on or before January 12, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-32067 Filed 12-21-10; 8:45 am]
BILLING CODE 8011-01-P
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