Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Close of Trading Hours for Expiring End of Week and End of Month Expirations, 20771-20773 [2011-8804]
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Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices
markets concerning review of
transactions as clearly erroneous.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 7 and Rule 19b–
4(f)(6)(iii) thereunder.8 The Exchange
has asked the Commission to waive the
30-day operative delay so that the
proposal may become operative
immediately upon filing. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest because such waiver will
allow the pilot program to continue
uninterrupted and help ensure
uniformity among the national
securities exchanges and FINRA with
respect to the treatment of clearly
erroneous transactions.9 Accordingly,
the Commission waives the 30-day
operative delay requirement and
designates the proposed rule change as
operative upon filing with the
Commission.
At any time within 60 days of the
filing of the proposed rule change, the
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires that a self-regulatory
organization submit to the Commission written
notice of its intent to file the proposed rule change,
along with a brief description and text of the
proposed rule change, at least five business days
prior to the filing of the proposed rule change, or
such shorter time as designated by the Commission.
The Commission notes that the Exchange has
satisfied this requirement.
9 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
mstockstill on DSKH9S0YB1PROD with NOTICES
8 17
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18:37 Apr 12, 2011
Jkt 223001
Commission summarily may
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:
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–EDGA–2011–12 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–EDGA–2011–12. 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
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
publicly available. All submissions
should refer to File Number SR–EDGA–
PO 00000
Frm 00149
Fmt 4703
Sfmt 4703
20771
2011–12 and should be submitted on or
before May 4, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–8805 Filed 4–12–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64243; File No. SR–CBOE–
2011–038]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Regarding Close of
Trading Hours for Expiring End of
Week and End of Month Expirations
April 7, 2011.
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 6,
2011, 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 and II below, which Items
have been prepared by the Exchange.
The Exchange filed the proposal as a
‘‘non-controversial’’ proposed rule
change pursuant to Section
19(b)(3)(A)(iii) of the Act 3 and Rule
19b–4(f)(6) thereunder.4 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 the Substance
of the Proposed Rule Change
CBOE proposes to amend Rule 24.9 to
change the close of trading hours from
3:15 p.m. (Chicago time) to 3 p.m.
(Chicago time) on the last day of trading
in expiring End-of-Week and End-of
Month Expirations. 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’s Public
Reference Room.
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
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20772
Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
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.
mstockstill on DSKH9S0YB1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Rule 24.9 to change the close of trading
hours from 3:15 p.m. (Chicago time) to
3 p.m. (Chicago time) on the last day of
trading in expiring End-of-Week
Expirations and End-of-Month
Expirations. On September 14, 2010, the
Securities and Exchange Commission
(‘‘Commission’’) approved the
implementation of a pilot program that
permits P.M.-settled options on broadbased indexes to expire on (a) any
Friday of the month, other than the
third Friday-of-the-month (‘‘End-ofWeek Expirations’’ or ‘‘EOWs’’) and (b)
the last trading day of the month (‘‘Endof-Month Expirations’’ or ‘‘EOMs’’).5
EOWs and EOMs are treated the same
as traditional options on the same
underlying index that expire on the
Saturday following the third Friday of
the month; provided, however, that
EOWs and EOMs are P.M.-settled.6
EOWs and EOMs are subject to the same
rules that currently govern the trading of
traditional index options, including
sales practice rules, margin
requirements, and floor trading
procedures. Contract terms for EOWs
and EOMs are similar to regular index
options, with one general exception:
The exercise settlement value is based
on the index value derived from the
closing prices of component stocks.7
Generally, EOWs and EOMs are
priced in the market based on
corresponding futures values. On the
last day of trading, the closing prices of
the component stocks (which are used
to derive the exercise settlement value)
are known at 3 p.m. (Chicago time) (or
5 See Securities Exchange Act Release No. 34–
62911 (September 14, 2010), 75 FR 57539
(September 21, 2010) (SR–CBOE–2009–075).
6 See CBOE Rule 24.9(e).
7 See supra note 5.
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18:37 Apr 12, 2011
Jkt 223001
soon after) when the equity markets
close. Despite the fact that the exercise
settlement value is fixed at or soon after
3 p.m. (Chicago time), trading in
expiring EOWs and EOMs continues,
however, for an additional fifteen
minutes until 3:15 p.m. (Chicago time)
and are not priced on corresponding
futures values, but rather the known
cash value. At the same time, the prices
of non-expiring EOW and EOM series
continue to move and be priced in
response to changes in corresponding
futures prices.
Because of the potential pricing
divergence that could occur between
3:00 and 3:15 pm on the final trading
day in expiring EOWs and EOMs (e.g.,
switch from pricing off of futures to
cash), the Exchange believes that, in
order to mitigate potential investor
confusion, it is appropriate to cease
trading in expiring EOWs and EOMs at
3 p.m. on the last day of trading. The
proposed change to the close of trading
hours will apply to all outstanding
expiring EOW and EOM Expirations
listed on or before the effective date of
this proposal and to all EOWs and
EOMs listed thereafter under the EOW/
EOM Pilot Program.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act 8
and the rules and regulations
thereunder and, in particular, the
requirements of Section 6(b) of the Act.9
Specifically, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 10 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. Preventing continued
trading on a product after the exercise
settlement value has been fixed
eliminates potential confusion and
thereby protects investors and the
public interest.
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
Because the foregoing proposed rule
does not (i) significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate if
consistent with the protection of
investors and the public interest,
provided that the self-regulatory
organization has given the Commission
written notice of its intent to file the
proposed rule change at least five
business days prior to the date of filing
of the proposed rule change or such
shorter time as designated by the
Commission,11 the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 12 and
Rule 19b–4(f)(6) thereunder.13
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
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:
B. Self-Regulatory Organization’s
Statement on Burden on Competition
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
No. SR–CBOE–2011–038 on the subject
line.
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.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
8 15
11 The
9 15
U.S.C. 78s(b)(1).
U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
12 15
PO 00000
Frm 00150
Fmt 4703
Exchange has satisfied this requirement.
U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(6).
Sfmt 4703
E:\FR\FM\13APN1.SGM
13APN1
Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices
20549–1090. All submissions should
refer to File No. SR–CBOE–2011–038.
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 No.
SR–CBOE–2011–038 and should be
submitted on or before May 4, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–8804 Filed 4–12–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64249; File No. SR–Phlx–
2011–47]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NASDAQ
OMX PHLX LLC To Establish a
Qualified Contingent Cross Order
mstockstill on DSKH9S0YB1PROD with NOTICES
April 7, 2011.
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 1,
2011, NASDAQ OMX PHLX LLC
(‘‘Exchange’’) filed with the Securities
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
18:37 Apr 12, 2011
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
PHLX Rule 1080 to establish a Qualified
Contingent Cross Order (‘‘QCC Order’’)
for execution in the PHLX XL II System
(‘‘System’’ or ‘‘Exchange System’’). The
QCC Order will facilitate the execution
of stock/option Qualified Contingent
Trades that satisfy the requirements of
the trade through exemption in
connection with Rule 611(d) of
Regulation NMS (‘‘QCT Trade
Exemption’’).3 The text of the proposed
rule change is below. Proposed new
language is italicized; proposed
deletions are in brackets.
*
*
*
*
*
NASDAQ OMX PHLX Rules
*
*
*
*
*
Rule 1080. PHLX XL and XL II
(a)–(n) No Change.
(o) Qualified Contingent Cross Order.
A Qualified Contingent Cross Order is
comprised of an order to buy or sell at
least 1,000 contracts that is identified as
being part of a qualified contingent
trade, as that term is defined in
subsection (3) below, coupled with a
contra-side order to buy or sell an equal
number of contracts.
(1) Qualified Contingent Cross Orders
are immediately executed upon entry
into the System by an Order Entry Firm
provided that (i) no Customer Orders
are at the same price on the Exchange’s
limit order book and (ii) the price is at
or between the NBBO.
(a) Qualified Contingent Cross Orders
will be automatically rejected if they
cannot be executed.
(b) Qualified Contingent Cross Orders
may only be entered in the regular
trading increments applicable to the
options class under Rule 1034.
(2) Qualified Contingent Cross Orders
shall only be submitted electronically
from off the Floor to the PHLX System.
Order Entry Firms must maintain books
and records demonstrating that each
Qualified Contingent Cross Order was
routed to the Exchange System from off
3 See Securities Exchange Act Release No. 54389
(August 31, 2006), 71 FR 52829 (September 7,
2006); Securities Exchange Act Release No. 57620
(April 4, 2008) 73 FR 19271 (April 9, 2008).
14 17
VerDate Mar<15>2010
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
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.
Jkt 223001
PO 00000
Frm 00151
Fmt 4703
Sfmt 4703
20773
of the Floor. Any Qualified Contingent
Cross Order that does not have a
corresponding record required by this
subsection shall be deemed to have been
entered from on the Floor in violation of
this Rule.
(3) A ‘‘qualified contingent trade’’ is a
transaction consisting of two or more
component orders, executed as agent or
principal, where:
(a) At least one component is an NMS
Stock, as defined in Rule 600 of
Regulation NMS under the Exchange
Act;
(b) All components are effected with
a product or price contingency that
either has been agreed to by all the
respective counterparties or arranged
for by a broker-dealer as principal or
agent;
(c) The execution of one component is
contingent upon the execution of all
other components at or near the same
time;
(d) The specific relationship between
the component orders (e.g., the spread
between the prices of the component
orders) is determined by the time the
contingent order is placed;
(e) The component orders bear a
derivative relationship to one another,
represent different classes of shares of
the same issuer, or involve the securities
of participants in mergers or with
intentions to merge that have been
announced or cancelled; and
(f) The transaction is fully hedged
(without regard to any prior existing
position) as a result of other
components of the contingent trade.
*
*
*
*
*
(b) Not applicable.
(c) Not applicable.
*
*
*
*
*
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.
E:\FR\FM\13APN1.SGM
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]]>Agencies
[Federal Register Volume 76, Number 71 (Wednesday, April 13, 2011)]
[Notices]
[Pages 20771-20773]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-8804]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64243; File No. SR-CBOE-2011-038]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Regarding Close of Trading Hours for Expiring End of Week
and End of Month Expirations
April 7, 2011.
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 6, 2011, 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 and II below, which Items have been prepared by the Exchange.
The Exchange filed the proposal as a ``non-controversial'' proposed
rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and
Rule 19b-4(f)(6) thereunder.\4\ The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
CBOE proposes to amend Rule 24.9 to change the close of trading
hours from 3:15 p.m. (Chicago time) to 3 p.m. (Chicago time) on the
last day of trading in expiring End-of-Week and End-of Month
Expirations. 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's Public Reference Room.
[[Page 20772]]
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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 24.9 to change the close of
trading hours from 3:15 p.m. (Chicago time) to 3 p.m. (Chicago time) on
the last day of trading in expiring End-of-Week Expirations and End-of-
Month Expirations. On September 14, 2010, the Securities and Exchange
Commission (``Commission'') approved the implementation of a pilot
program that permits P.M.-settled options on broad-based indexes to
expire on (a) any Friday of the month, other than the third Friday-of-
the-month (``End-of-Week Expirations'' or ``EOWs'') and (b) the last
trading day of the month (``End-of-Month Expirations'' or ``EOMs'').\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 34-62911 (September
14, 2010), 75 FR 57539 (September 21, 2010) (SR-CBOE-2009-075).
---------------------------------------------------------------------------
EOWs and EOMs are treated the same as traditional options on the
same underlying index that expire on the Saturday following the third
Friday of the month; provided, however, that EOWs and EOMs are P.M.-
settled.\6\ EOWs and EOMs are subject to the same rules that currently
govern the trading of traditional index options, including sales
practice rules, margin requirements, and floor trading procedures.
Contract terms for EOWs and EOMs are similar to regular index options,
with one general exception: The exercise settlement value is based on
the index value derived from the closing prices of component stocks.\7\
---------------------------------------------------------------------------
\6\ See CBOE Rule 24.9(e).
\7\ See supra note 5.
---------------------------------------------------------------------------
Generally, EOWs and EOMs are priced in the market based on
corresponding futures values. On the last day of trading, the closing
prices of the component stocks (which are used to derive the exercise
settlement value) are known at 3 p.m. (Chicago time) (or soon after)
when the equity markets close. Despite the fact that the exercise
settlement value is fixed at or soon after 3 p.m. (Chicago time),
trading in expiring EOWs and EOMs continues, however, for an additional
fifteen minutes until 3:15 p.m. (Chicago time) and are not priced on
corresponding futures values, but rather the known cash value. At the
same time, the prices of non-expiring EOW and EOM series continue to
move and be priced in response to changes in corresponding futures
prices.
Because of the potential pricing divergence that could occur
between 3:00 and 3:15 pm on the final trading day in expiring EOWs and
EOMs (e.g., switch from pricing off of futures to cash), the Exchange
believes that, in order to mitigate potential investor confusion, it is
appropriate to cease trading in expiring EOWs and EOMs at 3 p.m. on the
last day of trading. The proposed change to the close of trading hours
will apply to all outstanding expiring EOW and EOM Expirations listed
on or before the effective date of this proposal and to all EOWs and
EOMs listed thereafter under the EOW/EOM Pilot Program.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act \8\ and the rules and regulations thereunder and, in
particular, the requirements of Section 6(b) of the Act.\9\
Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \10\ 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. Preventing continued trading on a product after
the exercise settlement value has been fixed eliminates potential
confusion and thereby protects investors and the public interest.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(1).
\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
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
Because the foregoing proposed rule does not (i) significantly
affect the protection of investors or the public interest; (ii) impose
any significant burden on competition; and (iii) become operative for
30 days from the date on which it was filed, or such shorter time as
the Commission may designate if consistent with the protection of
investors and the public interest, provided that the self-regulatory
organization has given the Commission written notice of its intent to
file the proposed rule change at least five business days prior to the
date of filing of the proposed rule change or such shorter time as
designated by the Commission,\11\ the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(6) thereunder.\13\
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\11\ The Exchange has satisfied this requirement.
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may 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:
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 No. SR-CBOE-2011-038 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
[[Page 20773]]
20549-1090. All submissions should refer to File No. SR-CBOE-2011-038.
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 No. SR-CBOE-
2011-038 and should be submitted on or before May 4, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-8804 Filed 4-12-11; 8:45 am]
BILLING CODE 8011-01-P
