Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Two-Day Settlement on CBOE Stock Exchange, 61772-61773 [2011-25572]
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Federal Register / Vol. 76, No. 193 / Wednesday, October 5, 2011 / Notices
Underlying Fund and the investment
adviser(s) to the Unaffiliated Underlying
Fund, understand the terms and
conditions of the order and agree to
fulfill their responsibilities under the
order. At the time of its investment in
shares of an Unaffiliated Underlying
Fund in excess of the limit in section
12(d)(1)(A)(i), a Series will notify the
Unaffiliated Underlying Fund of the
investment. At such time, the Series
also will transmit to the Unaffiliated
Underlying Fund a list of the names of
each Series Affiliate and Underwriting
Affiliate. The Series will notify the
Unaffiliated Underlying Fund of any
changes to the list of names as soon as
reasonably practicable after a change
occurs. The Unaffiliated Underlying
Fund and the Series will maintain and
preserve a copy of the order, the
Participation Agreement, and the list
with any updated information for the
duration of the investment, and for a
period of not less than six years
thereafter, the first two years in an
easily accessible place.
9. Any sales charges and/or service
fees charged with respect to Units of a
Series will not exceed the limits
applicable to a fund of funds as set forth
in Rule 2830 of the NASD Conduct
Rules.
10. No Fund will acquire securities of
any other investment company or
company relying on section 3(c)(1) or
3(c)(7) of the Act in excess of the limits
contained in section 12(d)(1)(A) of the
Act, except to the extent permitted by
exemptive relief from the Commission
permitting the Fund to purchase shares
of other investment companies for shortterm cash management purposes.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–25678 Filed 10–4–11; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
mstockstill on DSK4VPTVN1PROD with NOTICES
[Release No. 34–65417; File No. SR–CBOE–
2011–089]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Adopt Two-Day
Settlement on CBOE Stock Exchange
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.
1. Purpose
According to CBOE Rule 51.7, bids
and offers on CBSX may specify
delivery on the day of a contract, on the
business day following the day of the
contract, and on the third business day
following the day of the contract.5 This
rule does not permit delivery on the
second business day following the day
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
5 See CBOE Rule 51.7.
2 17
September 28, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
19:11 Oct 04, 2011
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
rules of the CBOE Stock Exchange
(‘‘CBSX’’) to permit the specification of
bids and offers for delivery on the
second business day following the day
of the contract. 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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
VerDate Mar<15>2010
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 28, 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.
Jkt 226001
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
of the contract. Broker-dealers who
execute a ‘‘cross’’, resulting from the
stock component of EFP (effective-forphysical) futures transactions, have
requested that CBSX support a two-day
settlement period in a similar manner as
competing stock exchanges.
Therefore, the Exchange wishes to
amend Rule 51.7 to permit delivery on
the second business day following the
day of the contract in order to provide
CBSX Traders with the ability to agree
upon delivery on any day from the day
of the contract to the third business day
following the day of the contract. This
additional option provides further
flexibility for investors regarding
delivery of contracts. Moreover, the
addition of two-day settlement puts the
Exchange on a more even footing with
other exchanges that permit delivery of
a contract on second business day
following the day of the contract.6
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act 7
and the rules and regulations
thereunder and, in particular, the
requirements of Section 6(b) of the Act.8
Specifically, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 9 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. The proposed rule
change perfects the mechanism for a
free and open market by providing
another option for the delivery of
contracts and permitting CBSX Traders
to agree upon delivery on any day from
the day of the contract to the third
business day following the day of the
contract. Other exchanges already
provide this option.10
6 See New York Stock Exchange LLC (‘‘NYSE’’)
chart titled ‘‘Delivery Dates on Exchange Contracts’’
at the beginning of the Section titled ‘‘Dealings and
Settlements (Rules 45–299C) (the ‘‘NYSE Chart’’)
and NYSE Amex LLC (‘‘Amex’’) Equities Rule 14.
The ‘‘Seller’s Option’’ form of delivery described on
the NYSE chart stipulates that delivery may occur
‘‘not less than two business days nor more than 180
days’’ following the day of the contract. Amex
Equities Rule 14 stipulates that delivery may occur
‘‘not less than two business days after trade date
and not more than 60 days after trade date.’’ While
these rules differ from the proposed rule change in
that they permit settlement at a later date than the
proposed rule, they also permit settlement on the
second business day following the trade date (like
the proposed rule change).
7 15 U.S.C. 78s(b)(1).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
10 See Note 6.
E:\FR\FM\05OCN1.SGM
05OCN1
Federal Register / Vol. 76, No. 193 / Wednesday, October 5, 2011 / Notices
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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 11 and Rule 19b–4(f)(6)
thereunder 12 because the proposal 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 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.13
The Exchange has requested that the
Commission waive the 30-day operative
delay period. The Exchange proposes to
add an additional option for settlement
delivery consistent with the practices of
other exchanges. Therefore, the
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest, and designates the
proposed rule change to be operative
upon filing with the Commission.14
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.
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
13 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 Exchange has satisfied this
requirement.
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).
mstockstill on DSK4VPTVN1PROD with NOTICES
12 17
VerDate Mar<15>2010
19:11 Oct 04, 2011
Jkt 226001
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:
61773
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–25572 Filed 10–4–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–2011–089 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.
[Release No. 34–65442; File No. SR–FINRA–
2011–055]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the Extension
of the Implementation Date for
Expansion of the Order Audit Trail
System to All NMS Stocks
September 29, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
All submissions should refer to File
notice is hereby given that on
Number SR–CBOE–2011–089. This file
September 27, 2011, Financial Industry
number should be included on the
Regulatory Authority, Inc. (‘‘FINRA’’)
subject line if e-mail is used. To help the filed with the Securities and Exchange
Commission process and review your
Commission (‘‘SEC’’ or ‘‘Commission’’)
comments more efficiently, please use
the proposed rule change as described
only one method. The Commission will in Items I, II, and III below, which Items
post all comments on the Commission’s have been prepared by FINRA. FINRA
Internet Web site (https://www.sec.gov/
has designated the proposed rule change
as ‘‘constituting a stated policy,
rules/sro.shtml). Copies of the
practice, or interpretation with respect
submission, all subsequent
to the meaning, administration, or
amendments, all written statements
enforcement of an existing rule’’ under
with respect to the proposed rule
Section 19(b)(3)(A)(i) of the Act 3 and
change that are filed with the
Rule 19b–4(f)(1) thereunder,4 which
Commission, and all written
renders the proposal effective upon
communications relating to the
receipt of this filing by the Commission.
proposed rule change between the
Commission and any person, other than The Commission is publishing this
notice to solicit comments on the
those that may be withheld from the
proposed rule change from interested
public in accordance with the
persons.
provisions of 5 U.S.C. 552, will be
I. Self-Regulatory Organization’s
available for website viewing and
Statement of the Terms of Substance of
printing in the Commission’s Public
the Proposed Rule Change
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
FINRA is proposing to establish
business days between the hours of 10
October 17, 2011, as the implementation
a.m. and 3 p.m. Copies of such filing
date of the amendments to FINRA Rules
also will be available for inspection and 7410 and 7470 that the Commission
copying at the principal office of the
approved on November 12, 2010.5
Exchange. All comments received will
The text of the proposed rule change
be posted without change; the
is available on FINRA’s Web site at
https://www.finra.org, at the principal
Commission does not edit personal
identifying information from
15 17 CFR 200.30–3(a)(12).
submissions. You should submit only
1 15 U.S.C. 78s(b)(1).
information that you wish to make
2 17 CFR 240.19b–4.
available publicly. All submissions
3 15 U.S.C. 78s(b)(3)(A)(i).
should refer to File Number SR–CBOE–
4 17 CFR 240.19b–4(f)(1).
2011–089 and should be submitted on
5 See Securities Exchange Act Release No. 63311
or before October 26, 2011.
(November 12, 2010), 75 FR 70757 (November 18,
PO 00000
2010) (SR–FINRA–2010–044).
Frm 00110
Fmt 4703
Sfmt 4703
E:\FR\FM\05OCN1.SGM
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]]>Agencies
[Federal Register Volume 76, Number 193 (Wednesday, October 5, 2011)]
[Notices]
[Pages 61772-61773]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-25572]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65417; File No. SR-CBOE-2011-089]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Adopt Two-Day Settlement on CBOE Stock Exchange
September 28, 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 September 28, 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 Substance
of the Proposed Rule Change
The Exchange proposes to amend the rules of the CBOE Stock Exchange
(``CBSX'') to permit the specification of bids and offers for delivery
on the second business day following the day of the contract. 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
According to CBOE Rule 51.7, bids and offers on CBSX may specify
delivery on the day of a contract, on the business day following the
day of the contract, and on the third business day following the day of
the contract.\5\ This rule does not permit delivery on the second
business day following the day of the contract. Broker-dealers who
execute a ``cross'', resulting from the stock component of EFP
(effective-for-physical) futures transactions, have requested that CBSX
support a two-day settlement period in a similar manner as competing
stock exchanges.
---------------------------------------------------------------------------
\5\ See CBOE Rule 51.7.
---------------------------------------------------------------------------
Therefore, the Exchange wishes to amend Rule 51.7 to permit
delivery on the second business day following the day of the contract
in order to provide CBSX Traders with the ability to agree upon
delivery on any day from the day of the contract to the third business
day following the day of the contract. This additional option provides
further flexibility for investors regarding delivery of contracts.
Moreover, the addition of two-day settlement puts the Exchange on a
more even footing with other exchanges that permit delivery of a
contract on second business day following the day of the contract.\6\
---------------------------------------------------------------------------
\6\ See New York Stock Exchange LLC (``NYSE'') chart titled
``Delivery Dates on Exchange Contracts'' at the beginning of the
Section titled ``Dealings and Settlements (Rules 45-299C) (the
``NYSE Chart'') and NYSE Amex LLC (``Amex'') Equities Rule 14. The
``Seller's Option'' form of delivery described on the NYSE chart
stipulates that delivery may occur ``not less than two business days
nor more than 180 days'' following the day of the contract. Amex
Equities Rule 14 stipulates that delivery may occur ``not less than
two business days after trade date and not more than 60 days after
trade date.'' While these rules differ from the proposed rule change
in that they permit settlement at a later date than the proposed
rule, they also permit settlement on the second business day
following the trade date (like the proposed rule change).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act \7\ and the rules and regulations thereunder and, in
particular, the requirements of Section 6(b) of the Act.\8\
Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \9\ 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. The proposed rule change perfects the mechanism
for a free and open market by providing another option for the delivery
of contracts and permitting CBSX Traders to agree upon delivery on any
day from the day of the contract to the third business day following
the day of the contract. Other exchanges already provide this
option.\10\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(1).
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ See Note 6.
---------------------------------------------------------------------------
[[Page 61773]]
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6) thereunder \12\
because the proposal 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 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.\13\
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
\13\ 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 Exchange has satisfied this
requirement.
---------------------------------------------------------------------------
The Exchange has requested that the Commission waive the 30-day
operative delay period. The Exchange proposes to add an additional
option for settlement delivery consistent with the practices of other
exchanges. Therefore, the Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest, and designates the proposed rule change to be
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 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-2011-089 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-2011-089. 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 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 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-2011-089 and should be
submitted on or before October 26, 2011.
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. 2011-25572 Filed 10-4-11; 8:45 am]
BILLING CODE 8011-01-P
