Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Certain Rules Relating to Listing and Trading Security Futures, 18816-18817 [2011-7980]

Download as PDF 18816 Federal Register / Vol. 76, No. 65 / Tuesday, April 5, 2011 / Notices 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 website 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. 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–Phlx– 2011–40 and should be submitted on or before April 26, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–7979 Filed 4–4–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–64152; File No. SR–CFE– 2011–001] Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Certain Rules Relating to Listing and Trading Security Futures srobinson on DSKHWCL6B1PROD with NOTICES March 30, 2011. Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on March 18, 2011, CBOE Futures Exchange, LLC. (‘‘CFE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change described in Items I, II, and III below, which Items have been prepared by CFE. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. CFE also filed this proposed rule change concurrently with the Commodity Futures Trading Commission (‘‘CFTC’’). CFE filed a written certification with the CFTC under Section 5c(c) of the Commodity Exchange Act (‘‘CEA’’) 2 on March 18, 2011. 7 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(7). 2 7 U.S.C. 7a–2(c). 1 15 VerDate Mar<15>2010 15:18 Apr 04, 2011 Jkt 223001 I. Self-Regulatory Organization’s Description of the Proposed Rule Change The Exchange proposes to amend certain rules relating to the listing and trading of security futures on the Exchange. The changes are being proposed to conform certain CFE rules to current parallel rules of OneChicago, LLC (‘‘OCX’’). The text of the proposed rule change is available on the Exchange’s Web site at https:// www.cfe.cboe.com, on the Commission’s Web site at https://www.sec.gov, at the principal office of the Exchange, 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, CFE 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. CFE has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this proposed rule is to amend certain rules governing the listing and trading of security futures on the Exchange. The changes are being made to conform certain CFE rules to current parallel rules of OCX. Regulatory Halt Amendments CFE is proposing to amend Rule 417 by adding provisions for regulatory halts. OCX made a similar rule change to make clear that a ‘‘regulatory halt’’ applies not only to the suspending of all trading in equity securities on the underlying national securities exchange but also to a trading pause on an individual underlying equity security that has been imposed by the rules of the national securities exchange.3 CFE is also proposing to amend CFE Policy and Procedure III by adding a crossreference to Rule 417 and setting forth the ability of the help desk to bust any trade in a Single Stock Future or in a 3 See Securities Exchange Act Release No. 62582 (July 28, 2010), 75 FR 47039 (August 4, 2010) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by OneChicago, Amending Rule 419(a), Regulatory Halts) (SR–OC–2010–03). PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 Narrow-Based Index Future that occurs after the time a regulatory halt is instituted and before trading has been resumed in the affected Single Stock Future or Narrow-Based Index Future. Change Quoting Requirements for Market Makers CFE is proposing to amend Rule 517 and CFE Policy and Procedure VII to change the quoting requirements for Market Makers. Presently, a market maker, when providing quotations, quotes with a maximum bid/ask spread of no more than the greater of $0.20 (the ‘‘20 Cent Spread’’) of 150 percent of the bid/ask spread in the primary market for the security underlying the Security Future. The proposed rule change will raise the 20 Cent Spread to $5. This change will be affected by amending subparagraph (n) to Rule 517 and subparagraph C to CFE Policy and Procedure VII. OCX made a similar rule change raising its 20 Cent Spread to $5, which was nearly identical to one approved by the SEC for security options.4 Maintenance Standard Amendments First, CFE is proposing to amend CFE Policy and Procedure VIII by eliminating the $3 market price maintenance standard. This change will be affected by deleting subparagraph B.1.(v) to CFE Policy and Procedure VIII. OCX made a similar rule change eliminating the $3 market price per share requirement, which was nearly identical to one approved by the SEC for security options.5 Second, CFE is proposing to eliminate the prohibition against opening trading in a Single Stock Future with a new delivery month unless the issuer of the underlying satisfies applicable Exchange Act reporting requirements, or corrects any failure within 30 days after the date the report was due to be filed. This change will be affected by deleting subparagraph B.2.(i) to CFE Policy and Procedure VIII. OCX made a similar rule change eliminating this maintenance requirement, which was nearly identical to one approved by the SEC for security options.6 4 See Securities Exchange Act Release No. 60143 (June 19, 2009), 74 FR 30345 (June 25, 2009) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Widening the Bid/Ask Spread for Quoting Market-Makers) (SR–OC–2009–02). 5 See Securities Exchange Act Release No. 59744 (April 9, 2009), 74 FR 17706 (April 16, 2009) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Eliminating the $3 Market Price Maintenance Standard) (SR–OC–2009–01). 6 See Securities Exchange Act Release No. 54454 (September 15, 2006), 71 FR 5539 (September 22, 2006) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Listing E:\FR\FM\05APN1.SGM 05APN1 Federal Register / Vol. 76, No. 65 / Tuesday, April 5, 2011 / Notices New Listing Standard Conforming With Joint Order CFE is proposing to conform its listing standards to those approved by the SEC and the Commodity Futures Trading Commission in their Joint Order dated November 19, 2009.7 To affect this change, CFE is proposing to add new paragraph E to CFE Policy and Procedure VIII that references the Joint Order and provides that, ‘‘the Exchange may list security futures on any security that is eligible to underlie options on a national securities exchange.’’ CFE notes that OCX made a similar change conforming its listing standards to those set forth in the Joint Order.8 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) 9 of the Securities Exchange Act (the ‘‘Act’’), in general, and furthers the objectives of Section 6(b)(5) 10 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 mechanism of a free and open market and a national market system. The proposed rule change updates certain CFE listing and trading rules for security futures and conforms them to ones previously changed by OCX for security futures. B. Self-Regulatory Organization’s Statement on Burden on Competition srobinson on DSKHWCL6B1PROD with NOTICES CFE 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. Standards of Security Futures Products) (SR–OC– 2006–02). 7 74 FR 61380 (November 24, 2009). 8 See Securities Exchange Act Release No. 61346 (January 13, 2010), 75 FR 3515 (January 21, 2010) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change, as Modified by Amendment No. 1, Changing Its Listing Standards in Conformance with the November 9, 2009 Joint Order Modifying the Listing Standards Requirements under Section 6(h) of the Securities Exchange Act of 1934 and the Criteria under Section 2(a)(1) of the Commodity Exchange Act) (SR–OC–2009–04). 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(5). VerDate Mar<15>2010 15:18 Apr 04, 2011 Jkt 223001 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 The proposed rule change has become effective on March 22, 2011. At any time within 60 days of the date of effectiveness of the proposed rule change, the Commission, after consultation with the CFTC, may summarily abrogate the proposed rule change and require that the proposed rule change be refiled in accordance with the provisions of Section 19(b)(1) 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–CFE–2011–001 on the subject line. 18817 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. 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–CFE– 2011–001 and should be submitted on or before April 26, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–7980 Filed 4–4–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–64157; File No. SR–Phlx– 2011–15] Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order Granting Approval of Proposed Rule Change To Expand the $2.50 Strike Price Program March 31, 2011. I. Introduction On February 2, 2011, NASDAQ OMX PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed • Send paper comments in triplicate with the Securities and Exchange to Elizabeth M. Murphy, Secretary, Commission (‘‘Commission’’), pursuant Securities and Exchange Commission, to Section 19(b)(1) of the Securities 100 F Street, NE., Washington, DC Exchange Act of 1934 (‘‘Act’’) 1 and Rule 20549–1090. 19b–4 thereunder,2 a proposed rule All submissions should refer to File change to expand the $2.50 Strike Price Number SR–CFE–2011–001. This file Program. The proposed rule change was number should be included on the subject line if e-mail is used. To help the published for comment in the Federal Register on February 22, 2011.3 The Commission process and review your Commission received no comment comments more efficiently, please use only one method. The Commission will letters on the proposal. This order post all comments on the Commission’s approves the proposed rule change. Internet Web site (https://www.sec.gov/ II. Description of the Proposal rules/sro.shtml). Copies of the Phlx has proposed to modify submission, all subsequent Exchange Rule 1012, Series of Options amendments, all written statements Open for Trading, to expand the range with respect to the proposed rule of option strike prices for which $2.50 change that are filed with the strike price intervals may be listed Commission, and all written under the $2.50 Strike Price Program communications relating to the proposed rule change between the 11 17 CFR 200.30–3(a)(12). Commission and any person, other than 1 15 U.S.C. 78s(b)(1). those that may be withheld from the 2 17 CFR 240.19b–4. public in accordance with the 3 Securities Exchange Act Release No. 63914 (February 15, 2011), 76 FR 9846 (‘‘Notice’’). provisions of 5 U.S.C. 552, will be Paper Comments PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 E:\FR\FM\05APN1.SGM 05APN1

Agencies

[Federal Register Volume 76, Number 65 (Tuesday, April 5, 2011)]
[Notices]
[Pages 18816-18817]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-7980]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64152; File No. SR-CFE-2011-001]


Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend Certain Rules Relating to Listing and Trading Security Futures

March 30, 2011.
    Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 18, 2011, CBOE 
Futures Exchange, LLC. (``CFE'' or ``Exchange'') filed with the 
Securities and Exchange Commission (``SEC'' or ``Commission'') the 
proposed rule change described in Items I, II, and III below, which 
Items have been prepared by CFE. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons. CFE also filed this proposed rule change concurrently with the 
Commodity Futures Trading Commission (``CFTC''). CFE filed a written 
certification with the CFTC under Section 5c(c) of the Commodity 
Exchange Act (``CEA'') \2\ on March 18, 2011.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 7 U.S.C. 7a-2(c).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Description of the Proposed Rule 
Change

    The Exchange proposes to amend certain rules relating to the 
listing and trading of security futures on the Exchange. The changes 
are being proposed to conform certain CFE rules to current parallel 
rules of OneChicago, LLC (``OCX''). The text of the proposed rule 
change is available on the Exchange's Web site at https://www.cfe.cboe.com, on the Commission's Web site at https://www.sec.gov, 
at the principal office of the Exchange, 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, CFE 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. CFE has prepared summaries, set forth in Sections A, B, 
and C below, of the most significant aspects of such statements.

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

1. Purpose
    The purpose of this proposed rule is to amend certain rules 
governing the listing and trading of security futures on the Exchange. 
The changes are being made to conform certain CFE rules to current 
parallel rules of OCX.
Regulatory Halt Amendments
    CFE is proposing to amend Rule 417 by adding provisions for 
regulatory halts. OCX made a similar rule change to make clear that a 
``regulatory halt'' applies not only to the suspending of all trading 
in equity securities on the underlying national securities exchange but 
also to a trading pause on an individual underlying equity security 
that has been imposed by the rules of the national securities 
exchange.\3\ CFE is also proposing to amend CFE Policy and Procedure 
III by adding a cross-reference to Rule 417 and setting forth the 
ability of the help desk to bust any trade in a Single Stock Future or 
in a Narrow-Based Index Future that occurs after the time a regulatory 
halt is instituted and before trading has been resumed in the affected 
Single Stock Future or Narrow-Based Index Future.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 62582 (July 28, 
2010), 75 FR 47039 (August 4, 2010) (Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by OneChicago, Amending Rule 
419(a), Regulatory Halts) (SR-OC-2010-03).
---------------------------------------------------------------------------

Change Quoting Requirements for Market Makers
    CFE is proposing to amend Rule 517 and CFE Policy and Procedure VII 
to change the quoting requirements for Market Makers. Presently, a 
market maker, when providing quotations, quotes with a maximum bid/ask 
spread of no more than the greater of $0.20 (the ``20 Cent Spread'') of 
150 percent of the bid/ask spread in the primary market for the 
security underlying the Security Future. The proposed rule change will 
raise the 20 Cent Spread to $5. This change will be affected by 
amending subparagraph (n) to Rule 517 and subparagraph C to CFE Policy 
and Procedure VII. OCX made a similar rule change raising its 20 Cent 
Spread to $5, which was nearly identical to one approved by the SEC for 
security options.\4\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 60143 (June 19, 
2009), 74 FR 30345 (June 25, 2009) (Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change Widening the Bid/Ask Spread 
for Quoting Market-Makers) (SR-OC-2009-02).
---------------------------------------------------------------------------

Maintenance Standard Amendments
    First, CFE is proposing to amend CFE Policy and Procedure VIII by 
eliminating the $3 market price maintenance standard. This change will 
be affected by deleting subparagraph B.1.(v) to CFE Policy and 
Procedure VIII. OCX made a similar rule change eliminating the $3 
market price per share requirement, which was nearly identical to one 
approved by the SEC for security options.\5\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 59744 (April 9, 
2009), 74 FR 17706 (April 16, 2009) (Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change Eliminating the $3 Market 
Price Maintenance Standard) (SR-OC-2009-01).
---------------------------------------------------------------------------

    Second, CFE is proposing to eliminate the prohibition against 
opening trading in a Single Stock Future with a new delivery month 
unless the issuer of the underlying satisfies applicable Exchange Act 
reporting requirements, or corrects any failure within 30 days after 
the date the report was due to be filed. This change will be affected 
by deleting subparagraph B.2.(i) to CFE Policy and Procedure VIII. OCX 
made a similar rule change eliminating this maintenance requirement, 
which was nearly identical to one approved by the SEC for security 
options.\6\
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 54454 (September 15, 
2006), 71 FR 5539 (September 22, 2006) (Notice of Filing and 
Immediate Effectiveness of a Proposed Rule Change Relating to 
Listing Standards of Security Futures Products) (SR-OC-2006-02).

---------------------------------------------------------------------------

[[Page 18817]]

New Listing Standard Conforming With Joint Order
    CFE is proposing to conform its listing standards to those approved 
by the SEC and the Commodity Futures Trading Commission in their Joint 
Order dated November 19, 2009.\7\ To affect this change, CFE is 
proposing to add new paragraph E to CFE Policy and Procedure VIII that 
references the Joint Order and provides that, ``the Exchange may list 
security futures on any security that is eligible to underlie options 
on a national securities exchange.'' CFE notes that OCX made a similar 
change conforming its listing standards to those set forth in the Joint 
Order.\8\
---------------------------------------------------------------------------

    \7\ 74 FR 61380 (November 24, 2009).
    \8\ See Securities Exchange Act Release No. 61346 (January 13, 
2010), 75 FR 3515 (January 21, 2010) (Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change, as Modified by Amendment 
No. 1, Changing Its Listing Standards in Conformance with the 
November 9, 2009 Joint Order Modifying the Listing Standards 
Requirements under Section 6(h) of the Securities Exchange Act of 
1934 and the Criteria under Section 2(a)(1) of the Commodity 
Exchange Act) (SR-OC-2009-04).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) \9\ of the Securities Exchange Act (the ``Act''), in 
general, and furthers the objectives of Section 6(b)(5) \10\ 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 mechanism of a free and open 
market and a national market system. The proposed rule change updates 
certain CFE listing and trading rules for security futures and conforms 
them to ones previously changed by OCX for security futures.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    CFE 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

    The proposed rule change has become effective on March 22, 2011.
    At any time within 60 days of the date of effectiveness of the 
proposed rule change, the Commission, after consultation with the CFTC, 
may summarily abrogate the proposed rule change and require that the 
proposed rule change be refiled in accordance with the provisions of 
Section 19(b)(1) 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 rule-comments@sec.gov. Please include 
File Number SR-CFE-2011-001 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-CFE-2011-001. 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. 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-CFE-2011-001 and should be 
submitted on or before April 26, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-7980 Filed 4-4-11; 8:45 am]
BILLING CODE 8011-01-P
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