Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend Two Pilot Programs Related to the Exchange's Automated Improvement Mechanism, 44636-44638 [2011-18799]
Download as PDF
<![CDATA[
44636
Federal Register / Vol. 76, No. 143 / Tuesday, July 26, 2011 / Notices
interest, the proposed rule change has
become effective upon filing with the
Commission pursuant to Section
19(b)(3)(A) of the Act 12 and Rule 19b–
4(f)(6)(iii) thereunder.13
The Exchange has requested that the
Commission waive the 30-day operative
delay period. The Commission believes
that waiver of the 30-day operative
delay period is consistent with the
protection of investors and the public
interest because such waiver will allow
the AIM pilot program to continue
without interruption. Accordingly, the
Commission designates the proposed
rule change operative upon filing with
the Commission.14
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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or 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 rulecomments@sec.gov. Please include File
Number SR–C2–2011–015 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.
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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. The Commission
deems this requirement to have been met.
14 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
sroberts on DSK5SPTVN1PROD with NOTICES
13 17
VerDate Mar<15>2010
16:12 Jul 25, 2011
Jkt 223001
All submissions should refer to File
Number SR–C2–2011–015. 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
available publicly. All submissions
should refer to File Number SR–C2–
2011–015 and should be submitted by
August 16, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–18798 Filed 7–25–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64930; File No. SR–CBOE–
2011–066]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend Two Pilot
Programs Related to the Exchange’s
Automated Improvement Mechanism
July 20, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
PO 00000
notice is hereby given that on July 12,
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 which renders
the proposed rule change effective upon
filing with the Commission. 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
The Exchange proposes to amend its
rules to extend two pilot programs
related to the Exchange’s Automated
Improvement Mechanism (‘‘AIM’’) for
one year, until July 18, 2012. 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.
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
In February 2006, CBOE obtained
approval of a filing adopting the AIM
auction process.5 AIM exposes certain
orders electronically to an auction
process to provide such orders with the
opportunity to receive an execution at
an improved price. The AIM auction is
available only for orders that an
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 53222
(February 3, 2006), 71 FR 7089 (February 10, 2006)
approving SR–CBOE–2005–60.
4 17
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
Frm 00067
Fmt 4703
Sfmt 4703
E:\FR\FM\26JYN1.SGM
26JYN1
Federal Register / Vol. 76, No. 143 / Tuesday, July 26, 2011 / Notices
Exchange Trading Permit Holder
represents as agent (‘‘Agency Order’’)
and for which a second order of the
same size as the Agency Order (and on
the opposite side of the market) is also
submitted (effectively stopping the
Agency Order at a given price).
Two components of AIM were
approved on a pilot basis: (1) That there
is no minimum size requirement for
orders to be eligible for the auction, and
(2) that the auction will conclude
prematurely anytime there is a quote
lock on the Exchange pursuant to Rule
6.45A(d).6 In connection with the pilot
programs, the Exchange has submitted
to the Commission reports providing
detailed AIM auction and order
execution data. The Commission has
approved five one-year extensions to the
pilot programs.7 The proposed rule
change merely extends the duration of
the pilot programs until July 18, 2012.
Extending the pilots for an additional
year will allow the Commission more
time to consider the impact of the pilot
programs on AIM order executions.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) of the Act 8 in general and furthers
the objectives of Section 6(b)(5) 9 in
particular in that by allowing the
Commission additional time to evaluate
the AIM pilot programs, it should serve
to remove impediments to and perfect
the mechanism of a free and open
market and a national market system,
and protect investors and the public
interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
sroberts on DSK5SPTVN1PROD with NOTICES
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.
6 That rule relates to situations where a CBOE
Market-Maker’s quote interacts with the quote of
another CBOE Market-Maker (i.e. when internal
quotes lock).
7 See Securities Exchange Act Release Nos. 54147
(July 14, 2006), 71 FR 41487 (July 21, 2006)
approving SR–CBOE–2006–64; 56094 (July 18,
2007), 72 FR 40910 (July 25, 2007) approving SR–
CBOE–2007–80; 58196 (July 18, 2008), 73 FR 43803
(July 28, 2008) approving SR–CBOE–2008–76 (in
this filing, the Exchange agreed to provide
additional information relating to the AIM auctions
each month in order to aid the Commission in its
evaluation of the pilot program, which the
Exchange will continue to provide); 60338 (July 17,
2009), 74 FR 36803 (July 24, 2009) approving SR–
CBOE–2009–051; and No. 62522 (July 16, 2010), 75
FR 43596 (July 26, 2010) approving SR–CBOE–
2010–067.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
VerDate Mar<15>2010
16:12 Jul 25, 2011
Jkt 223001
44637
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
to determine whether the proposed rule
should be approved or disapproved.
The Exchange neither solicited nor
received comments on the proposal.
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:
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 10 and Rule
19b–4(f)(6) thereunder.11 Because the
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) by its terms,
become operative prior to 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, the proposed rule change has
become effective upon filing with the
Commission pursuant to Section
19(b)(3)(A) of the Act 12 and Rule 19b–
4(f)(6)(iii) thereunder.13
The Exchange has requested that the
Commission waive the 30-day operative
delay period. The Commission believes
that waiver of the 30-day operative
delay period is consistent with the
protection of investors and the public
interest because such waiver will allow
the AIM pilot programs to continue
without interruption. Accordingly, the
Commission designates the proposed
rule change operative upon filing with
the Commission.14
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. If the
Commission takes such action, the
Commission shall institute proceedings
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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. The Commission
deems this requirement to have been met.
14 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
PO 00000
10 15
11 17
Frm 00068
Fmt 4703
Sfmt 4703
IV. Solicitation of Comments
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–2011–066 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–2011–066. 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
available publicly. All submissions
should refer to File Number SR–CBOE–
2011–066 and should be submitted by
August 16, 2011.
E:\FR\FM\26JYN1.SGM
26JYN1
44638
Federal Register / Vol. 76, No. 143 / Tuesday, July 26, 2011 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–18799 Filed 7–25–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64937; File No. SR–CHX–
2011–17]
Self-Regulatory Organizations;
Chicago Stock Exchange,
Incorporated; Notice of Filing of
Proposed Rule Change Regarding the
Submission by the Exchange of
Clearing-Related Information for
Trades Executed on the Exchange as
Well as for Trades Executed Otherwise
Than on the Exchange
July 20, 2011.
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 July 7,
2011, the Chicago Stock Exchange,
Incorporated (‘‘Exchange’’ or ‘‘CHX’’)
filed with the Securities and Exchange
Commission (the ‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
sroberts on DSK5SPTVN1PROD with NOTICES
The Exchange proposes to add new
Rule 6 to Article 21 (Clearance and
Settlement) to set forth the terms upon
which the Exchange shall submit
information for clearing and settlement,
and to amend Article 1, Rule 1
(Definitions), and Article 21, Rule 1
(Trade Recording with a Qualified
Clearing Agency) to define certain
relevant terms. The text of this proposed
rule change is available on the
Exchange’s Web site at (https://
www.chx.com), at the Exchange’s Office
of the Secretary and in 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
CHX included statements concerning
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
16:12 Jul 25, 2011
Jkt 223001
the purpose of and basis for the
proposed rule change and discussed any
comments it received regarding the
proposal. The text of these statements
may be examined at the places specified
in Item IV below. The CHX 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 is proposing to add
new Rule 6 to Article 21 (Clearance and
Settlement) to set forth the terms upon
which the Exchange shall submit
information for clearing and settlement,
and to amend Article 1, Rule 1
(Definitions), and Article 21, Rule 1
(Trade Recording with a Qualified
Clearing Agency) to define certain
relevant terms. New Article 21, Rule 6
provides for the submission of clearing
related information to a Qualified
Clearing Agency (currently, the National
Securities Clearing Corp. or NSCC).3
Proposed Rule 6(a) addresses the
submission to NSCC of clearing
information for trades executed on the
Exchange and is based upon the
provisions of CBOE Rule 6.50
(Submission for Clearance).4 Proposed
Rule 6(a) specifies that all transactions
executed on the Exchange shall be
submitted for clearance to a Qualified
Clearing Agency, and all such
transactions shall be subject to the rules
of the Qualified Clearing Agency.5 The
Clearing Participant shall be responsible
3 In proposed Article 1, Rule 1 (ff), a Qualified
Clearing Agency is defined a clearing agency as
defined in Section 3(a)(23) of the Exchange Act
which is registered with the Commission pursuant
to the provisions of the Section 17A(b)(2) of the
Exchange Act or has obtained from the Commission
an exemption from registration granted specifically
to allow the clearing agency to provide
confirmation and affirmation services. CHX is
proposing to delete the existing, but somewhat
outdated, definitions of the terms Qualified
Clearing Agency, Registered Clearing Agency and
Fully Interfaced Clearing Agency from the
Interpretations and Polices [sic] section of Article
21, Rule 1 and replace them with the definition of
Qualified Clearing Agency in Article 1, Rule 1 in
order to update its rules and ensure that the
definition applies concurrently to proposed new
Rule 6.
4 The Exchange notes that existing Article 21,
Rule 1(d) provides that the Exchange shall submit
trade data regarding every transaction that is
executed on, and reported to, the Exchange to a
Qualified Clearing Agency for recording. We
propose to add Rule 6(a) in order to provide
absolute clarity regarding the nature and scope of
the Exchange’s activity regarding clearing
submissions.
5 The CHX submits clearing information to NSCC
through the Regional Interface Operation (‘‘RIO’’)
system.
PO 00000
Frm 00069
Fmt 4703
Sfmt 4703
for the clearance of the Exchange
transactions of such Clearing Participant
and of each Participant who gives up
such Clearing Participant’s name
pursuant to either a Letter of Guarantee
filed under Article 7, Rule 10 with the
Exchange or other authorization given
by such Clearing Participant to such
Participant.6 These provisions are
typical in the clearance and settlement
of exchange transactions and fairly
place the responsibility for paying for,
or delivery of, securities on the
Participant in which name the trades are
submitted for clearance and settlement.
Proposed new Rule 6(b) addresses
clearing submissions made via CHX
systems for transactions executed on
another trading center or in the overthe-counter marketplace and is based
upon Nasdaq Rule 7038 (Step-Outs and
Sales Fee Transfers). Such submissions
may be made by the Exchange only on
behalf of a CHX-registered Institutional
Broker acting as an authorized agent of
a Clearing Participant.7 The Institutional
Broker may submit a clearing-only entry
into the Exchange’s systems for the
purpose of transferring securities from
one Clearing Participant to another
provided that the trade has been
properly reported for transaction
reporting purposes. Once all of the final
clearing allocations have been entered
into the Exchange systems for
submission to NSCC, the submissions
are deemed to be ‘‘locked in’’ for
purposes of comparison and settlement.
These submissions of non-Exchange
executions may occur in several
circumstances. First, an Institutional
Broker may buy or sell securities on
another trading center as a
correspondent of a clearing member of
that trading center. Any resulting
execution report would be ‘‘flipped’’
from the executing clearing member via
entries in the Exchange’s systems to the
trading account of the Institutional
Broker or the CHX Clearing Participant
on whose behalf it is acting. Second, an
Institutional Broker may instruct a third
party broker-dealer (which is not an
Institutional Broker) to execute a cross
transaction in the over-the-counter
market and report the transaction to a
Trade Reporting Facility (‘‘TRF’’) using
its trading symbol or the symbol of its
6 We proposed to define the term Clearing
Participant in Article 1, Rule 1(ee) as a Participant
which has been admitted to membership in a
Qualified Clearing Agency pursuant to the
provisions of the Rules of the Qualified Clearing
Agency.
7 CHX-registered Institutional Brokers are an
elective sub-category of Exchange Participants
requiring registration with the Exchange and are
subject to the obligations of Article 17 of the CHX
rules, in addition to the other provisions of
Exchange rules.
E:\FR\FM\26JYN1.SGM
26JYN1
]]>Agencies
[Federal Register Volume 76, Number 143 (Tuesday, July 26, 2011)]
[Notices]
[Pages 44636-44638]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-18799]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64930; File No. SR-CBOE-2011-066]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Extend Two Pilot Programs Related to the Exchange's
Automated Improvement Mechanism
July 20, 2011.
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 July 12, 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\ which renders the proposed rule change
effective upon filing with the Commission. 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
The Exchange proposes to amend its rules to extend two pilot
programs related to the Exchange's Automated Improvement Mechanism
(``AIM'') for one year, until July 18, 2012. 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.
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
In February 2006, CBOE obtained approval of a filing adopting the
AIM auction process.\5\ AIM exposes certain orders electronically to an
auction process to provide such orders with the opportunity to receive
an execution at an improved price. The AIM auction is available only
for orders that an
[[Page 44637]]
Exchange Trading Permit Holder represents as agent (``Agency Order'')
and for which a second order of the same size as the Agency Order (and
on the opposite side of the market) is also submitted (effectively
stopping the Agency Order at a given price).
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 53222 (February 3,
2006), 71 FR 7089 (February 10, 2006) approving SR-CBOE-2005-60.
---------------------------------------------------------------------------
Two components of AIM were approved on a pilot basis: (1) That
there is no minimum size requirement for orders to be eligible for the
auction, and (2) that the auction will conclude prematurely anytime
there is a quote lock on the Exchange pursuant to Rule 6.45A(d).\6\ In
connection with the pilot programs, the Exchange has submitted to the
Commission reports providing detailed AIM auction and order execution
data. The Commission has approved five one-year extensions to the pilot
programs.\7\ The proposed rule change merely extends the duration of
the pilot programs until July 18, 2012. Extending the pilots for an
additional year will allow the Commission more time to consider the
impact of the pilot programs on AIM order executions.
---------------------------------------------------------------------------
\6\ That rule relates to situations where a CBOE Market-Maker's
quote interacts with the quote of another CBOE Market-Maker (i.e.
when internal quotes lock).
\7\ See Securities Exchange Act Release Nos. 54147 (July 14,
2006), 71 FR 41487 (July 21, 2006) approving SR-CBOE-2006-64; 56094
(July 18, 2007), 72 FR 40910 (July 25, 2007) approving SR-CBOE-2007-
80; 58196 (July 18, 2008), 73 FR 43803 (July 28, 2008) approving SR-
CBOE-2008-76 (in this filing, the Exchange agreed to provide
additional information relating to the AIM auctions each month in
order to aid the Commission in its evaluation of the pilot program,
which the Exchange will continue to provide); 60338 (July 17, 2009),
74 FR 36803 (July 24, 2009) approving SR-CBOE-2009-051; and No.
62522 (July 16, 2010), 75 FR 43596 (July 26, 2010) approving SR-
CBOE-2010-067.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Act \8\ in general and furthers the objectives of
Section 6(b)(5) \9\ in particular in that by allowing the Commission
additional time to evaluate the AIM pilot programs, it should serve to
remove impediments to and perfect the mechanism of a free and open
market and a national market system, and protect investors and the
public interest.
---------------------------------------------------------------------------
\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
The Exchange neither solicited nor received comments on the
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
Because the 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) by its terms, become
operative prior to 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, the proposed rule
change has become effective upon filing with the Commission pursuant to
Section 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6)(iii)
thereunder.\13\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the Exchange to give the Commission written
notice of the Exchange's 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. The Commission deems this requirement to have been met.
---------------------------------------------------------------------------
The Exchange has requested that the Commission waive the 30-day
operative delay period. The Commission believes that waiver of the 30-
day operative delay period is consistent with the protection of
investors and the public interest because such waiver will allow the
AIM pilot programs to continue without interruption. Accordingly, the
Commission designates the proposed rule change operative upon filing
with the Commission.\14\
---------------------------------------------------------------------------
\14\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or 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-2011-066 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-2011-066. 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 available publicly. All
submissions should refer to File Number SR-CBOE-2011-066 and should be
submitted by August 16, 2011.
[[Page 44638]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-18799 Filed 7-25-11; 8:45 am]
BILLING CODE 8011-01-P
