Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend Credit Option Margin Pilot Program to January 17, 2012, 43359-43360 [2011-18222]
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Federal Register / Vol. 76, No. 139 / Wednesday, July 20, 2011 / Notices
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–NYSEAMEX–2011–51 and
should be submitted on or before
August 10, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–18194 Filed 7–19–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64893; File No. SR–CBOE–
2011–068]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend Credit Option
Margin Pilot Program to January 17,
2012
July 14, 2011.
sroberts on DSK5SPTVN1PROD with NOTICES
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 July 13,
2011, Chicago Board Options Exchange,
Incorporated (‘‘CBOE’’ or ‘‘Exchange’’)
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 ‘‘noncontroversial’’ 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 Substance of
the Proposed Rule Change
CBOE proposes to extend its Credit
Option Pilot Program through January
17, 2012. 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
16 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
VerDate Mar<15>2010
18:29 Jul 19, 2011
Jkt 223001
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, the
self-regulatory organization included
statements concerning the purpose of
and basis for the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On February 2, 2011, the Commission
approved the Exchange’s proposal to
establish a Credit Option Margin Pilot
Program (‘‘Program’’).5 The proposal
became effective on a pilot basis to run
on a parallel track with FINRA Rule
4240 that similarly operates on an
interim pilot basis and is currently
scheduled to expire on July 16, 2011.6
On July 11, 2011, FINRA submitted a
rule proposal to, among other things,
extend the pilot program for FINRA
Rule 4240 to January 17, 2012.7 Since
CBOE’s Program was approved on a
pilot basis to run on a parallel track
with FINRA Rule 4240, CBOE is now
currently proposing to similarly extend
the duration of the Program.
CBOE notes for the Commission that
there are currently Credit Options listed
for trading on the Exchange that have
open interest. As a result, CBOE
believes that is in the public interest for
the Program to continue uninterrupted.
In the future, if the Exchange
proposes an additional extension of the
Credit Option Margin Pilot Program or
5 See Securities Exchange Act Release No. 63819
(February 2, 2011), 76 FR 6838 (February 8, 2011)
(order approving [SR–CBOE–2010–106]). To
implement the Program, the Exchange amended
Rule 12.3(l), Margin Requirements, to make CBOE’s
margin requirements for Credit Options consistent
with FINRA Rule 4240, Margin Requirements for
Credit Default Swaps. CBOE’s Credit Options (i.e.,
Credit Default Options and Credit Default Basket
Options) are analogous to credit default swaps.
6 See Securities Exchange Act Release No. 63391
(November 30, 2010), 75 FR 75718 (December 10,
2010) (notice of filing for immediate effectiveness
extending FINRA Rule 4240 margin interim pilot
program to July 16, 2011).
7 See [SR–FINRA–2011–034]. In the filing, FINRA
proposes to make additional modifications to
FINRA Rule 4240, which are not the subject matter
of this filing.
PO 00000
Frm 00107
Fmt 4703
Sfmt 4703
43359
proposes to make the Program
permanent, then the Exchange will
submit a filing proposing such
amendments to the Program.
2. Statutory Basis
The Exchange believes this rule
proposal is consistent with the Act and
the rules and regulations under the Act
applicable to a national securities
exchange and, in particular, the
requirements of Section 6(b) of the Act.8
Specifically, the Exchange believes that
the proposed rule change is consistent
with the Section 6(b)(5) Act 9
requirements that the rules of an
exchange be designed to promote just
and equitable principles of trade, to
prevent fraudulent and manipulative
acts and, in general, to protect investors
and the public interest, and because it
enhances fair competition among
exchange markets.
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
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 10 and Rule 19b–
4(f)(6) thereunder.11
CBOE has requested that the
Commission waive the five-day prefiling notice requirement specified in
Rule 19b–4(f)(6)(iii) under the Act,12
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires a self-regulatory
organization to 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 date of filing of the proposed rule
9 15
E:\FR\FM\20JYN1.SGM
Continued
20JYN1
43360
Federal Register / Vol. 76, No. 139 / Wednesday, July 20, 2011 / Notices
and the 30-day operative delay, so that
the proposal may become effective
immediately upon filing. The
Commission waives the five-day prefiling notice requirement. In addition,
the Commission believes that waiving
the 30-day operative delay is consistent
with the protection of investors and the
public interest.13 This will allow the
Program to continue without
interruption and extend the benefits of
a pilot program that the Commission
approved and previously extended.
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
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:
sroberts on DSK5SPTVN1PROD 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–CBOE–2011–068 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–2011–068. 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
change, or such shorter time as designated by the
Commission.
13 For the purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
VerDate Mar<15>2010
18:29 Jul 19, 2011
Jkt 223001
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–2011–068 and
should be submitted on or before
August 10, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–18222 Filed 7–19–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64892; File No. SR–FINRA–
2011–034]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Order Granting Accelerated Approval
of Proposed Rule Change To Amend
FINRA Rule 4240 (Margin
Requirements for Credit Default
Swaps)
July 14, 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 July 11,
2011, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
II, below, which Items have been
prepared by FINRA. The Commission is
publishing this notice to solicit
comments on the proposed rule change
PO 00000
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
Frm 00108
Fmt 4703
Sfmt 4703
from interested persons and is
approving the proposed rule change on
an accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to extend to
January 17, 2012 the implementation of
FINRA Rule 4240 (Margin Requirements
for Credit Default Swaps) on an interim
pilot program basis and to make other
revisions to update the rule. FINRA
Rule 4240, as approved by the SEC on
May 22, 2009, and as extended by
FINRA on November 22, 2010, will
expire on July 16, 2011. The rule
implements an interim pilot program
with respect to margin requirements for
certain transactions in credit default
swaps.
The text of the proposed rule change
is set forth below. Proposed new
language is italicized; proposed
deletions are in brackets.
*
*
*
*
*
4000. Financial and Operational
Rules.
*
*
*
*
*
4200. Margin.
*
*
*
*
*
4240. Margin Requirements for Credit
Default Swaps.
(a) Effective Period of Interim Pilot
Program.
This Rule establishes an interim pilot
program (‘‘Interim Pilot Program’’) with
respect to margin requirements for any
transactions in credit default swaps
executed by a member (regardless of the
type of account in which the transaction
is booked), including those in which the
offsetting matching hedging transactions
(‘‘matching transactions’’) are effected
by the member in contracts that are
cleared through [the central
counterparty clearing services of the
Chicago Mercantile Exchange (‘‘CME’’)]
a clearing agency or derivatives clearing
organization that provides central
counterparty clearing services using a
margin methodology approved by
FINRA as announced in a Regulatory
Notice (‘‘approved margin
methodology’’). The Interim Pilot
Program shall automatically expire on
[July 16, 2011] January 17, 2012. For
purposes of this Rule, the term ‘‘credit
default swap’’ (‘‘CDS’’) shall [mean any
‘‘eligible credit default swap’’ as defined
in Securities Act Rule 239T(d), as well
as any other CDS that would otherwise
meet such definition but for being
subject to individual negotiation,]
include any product that is commonly
known to the trade as a credit default
swap and is a swap or security-based
swap as defined pursuant to Section
E:\FR\FM\20JYN1.SGM
20JYN1
]]>Agencies
[Federal Register Volume 76, Number 139 (Wednesday, July 20, 2011)]
[Notices]
[Pages 43359-43360]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-18222]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64893; File No. SR-CBOE-2011-068]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Extend Credit Option Margin Pilot Program to January 17,
2012
July 14, 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 July 13, 2011, Chicago Board Options Exchange, Incorporated
(``CBOE'' or ``Exchange'') 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 Substance
of the Proposed Rule Change
CBOE proposes to extend its Credit Option Pilot Program through
January 17, 2012. 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.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
On February 2, 2011, the Commission approved the Exchange's
proposal to establish a Credit Option Margin Pilot Program
(``Program'').\5\ The proposal became effective on a pilot basis to run
on a parallel track with FINRA Rule 4240 that similarly operates on an
interim pilot basis and is currently scheduled to expire on July 16,
2011.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 63819 (February 2,
2011), 76 FR 6838 (February 8, 2011) (order approving [SR-CBOE-2010-
106]). To implement the Program, the Exchange amended Rule 12.3(l),
Margin Requirements, to make CBOE's margin requirements for Credit
Options consistent with FINRA Rule 4240, Margin Requirements for
Credit Default Swaps. CBOE's Credit Options (i.e., Credit Default
Options and Credit Default Basket Options) are analogous to credit
default swaps.
\6\ See Securities Exchange Act Release No. 63391 (November 30,
2010), 75 FR 75718 (December 10, 2010) (notice of filing for
immediate effectiveness extending FINRA Rule 4240 margin interim
pilot program to July 16, 2011).
---------------------------------------------------------------------------
On July 11, 2011, FINRA submitted a rule proposal to, among other
things, extend the pilot program for FINRA Rule 4240 to January 17,
2012.\7\ Since CBOE's Program was approved on a pilot basis to run on a
parallel track with FINRA Rule 4240, CBOE is now currently proposing to
similarly extend the duration of the Program.
---------------------------------------------------------------------------
\7\ See [SR-FINRA-2011-034]. In the filing, FINRA proposes to
make additional modifications to FINRA Rule 4240, which are not the
subject matter of this filing.
---------------------------------------------------------------------------
CBOE notes for the Commission that there are currently Credit
Options listed for trading on the Exchange that have open interest. As
a result, CBOE believes that is in the public interest for the Program
to continue uninterrupted.
In the future, if the Exchange proposes an additional extension of
the Credit Option Margin Pilot Program or proposes to make the Program
permanent, then the Exchange will submit a filing proposing such
amendments to the Program.
2. Statutory Basis
The Exchange believes this rule proposal is consistent with the Act
and the rules and regulations under the Act applicable to a national
securities exchange and, in particular, the requirements of Section
6(b) of the Act.\8\ Specifically, the Exchange believes that the
proposed rule change is consistent with the Section 6(b)(5) Act \9\
requirements that the rules of an exchange be designed to promote just
and equitable principles of trade, to prevent fraudulent and
manipulative acts and, in general, to protect investors and the public
interest, and because it enhances fair competition among exchange
markets.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 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 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 \10\ and Rule 19b-
4(f)(6) thereunder.\11\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
CBOE has requested that the Commission waive the five-day pre-
filing notice requirement specified in Rule 19b-4(f)(6)(iii) under the
Act,\12\
[[Page 43360]]
and the 30-day operative delay, so that the proposal may become
effective immediately upon filing. The Commission waives the five-day
pre-filing notice requirement. In addition, the Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest.\13\ This will allow
the Program to continue without interruption and extend the benefits of
a pilot program that the Commission approved and previously extended.
Accordingly, the Commission waives the 30-day operative delay
requirement and designates the proposed rule change as operative upon
filing with the Commission.
---------------------------------------------------------------------------
\12\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires a self-regulatory organization to 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 date of filing
of the proposed rule change, or such shorter time as designated by
the Commission.
\13\ For the purposes only of waiving the 30-day operative
delay, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the 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 Number SR-CBOE-2011-068 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-2011-068. 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-2011-068 and should be
submitted on or before August 10, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-18222 Filed 7-19-11; 8:45 am]
BILLING CODE 8011-01-P
