Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to FLEX Options, 68239-68240 [2011-28513]
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Federal Register / Vol. 76, No. 213 / Thursday, November 3, 2011 / Notices
requirements of Section 17A, including
requirements that the rules of a clearing
agency are, in general, designed to
protect investors and the public interest
and are not designed to permit unfair
discrimination among participants in
the use of the clearing agency.7
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the Act 8
and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,9 that the
proposed rule change, as modified by
Amendment No. 1, (File No. SR–OCC–
2011–08) be, and hereby is, approved.10
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary .
[FR Doc. 2011–28461 Filed 11–2–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65659; File No. SR–CBOE–
2011–098]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Related to FLEX Options
October 31, 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 October
17, 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, II, and III below, which Items
have been prepared by the Exchange.
The Exchange has designated the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
7 Id.
srobinson on DSK4SPTVN1PROD with NOTICES
8 15
U.S.C. 78q–1.
9 15 U.S.C. 78s(b)(2).
10 In approving this proposed rule change the
Commission has considered the proposed rule’s
impact of efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
11 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
VerDate Mar<15>2010
16:50 Nov 02, 2011
Jkt 226001
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
The Exchange is proposing to amend
certain rules pertaining to Flexible
Exchange Options (‘‘FLEX Options’’).
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
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 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
FLEX Options provide investors with
the ability to customize basic option
features including size, expiration date,
exercise style, and certain exercise
prices (referred to as ‘‘variable terms’’).5
For example, FLEX Options can have an
expiration date that is any business day
(specified as to day, month and year)
with a maximum term of fifteen years.6
The rules governing the trading of FLEX
Options on the FLEX Request for Quote
(‘‘RFQ’’) System platform are generally
contained in Chapter XXIVA. The rules
governing the trading of FLEX Options
on the FLEX Hybrid Trading System
platform are generally contained in
Chapter XXIVB. Within each Chapter,
the provisions pertaining to the variable
4 17
CFR 240.19b–4(f)(6).
Options can be FLEX Index Options or
FLEX Equity Options. In addition, other products
are permitted to be traded pursuant to the FLEX
trading procedures. For example, credit options are
eligible for trading as FLEX Options pursuant to the
FLEX rules in Chapters XXIVA and XXIVB. See
CBOE Rules 24A.1(e) and (f), 24A.4(b)(1) and (c)(1),
24B.1(f) and (g), 24B.4(b)(1) and (c)(1), and 28.17.
6 See Rule 24A.4(a)(2)(iv) and (a)(4)(i), and Rule
24B.4(a)(2)(iv) and (a)(5)(i).
5 FLEX
PO 00000
Frm 00114
Fmt 4703
Sfmt 4703
68239
terms of FLEX Options are generally
contained in Rules 24A.4 and 24B.4.
The purpose of this proposed rule
change is to reorganize and amend
certain Exchange Rules pertaining to
FLEX Options to provide within
Chapters XXIVA and XXIVB that a new
series of FLEX Options may be
established on any business day prior to
the expiration date. The adding of new
FLEX Equity Options series on any
business day prior to the expiration date
is already addressed in Rule 5.5 of
Chapter V of the Exchange Rules.7 In an
effort to make reading and
understanding the FLEX Option
provisions easier, the Exchange is
proposing to move this new series add
provision from Rule 5.5 of Chapter V to
Rules 24A.4 and 24B.4 of Chapters
XXIVA and XXIVB, respectively. In
addition, the Exchange is proposing to
apply the provision to all FLEX Options
(not just FLEX Equity Options).8
Previously the rules did not clearly
address the applicability of any such
provision to other FLEX Options.
However, it has been the Exchange’s
practice to permit other FLEX Options
to be listed any business day prior to the
expiration date.
The Exchange believes that
reorganizing and amending the rules in
the manner proposed should make it
easier to read and understand the FLEX
Options provisions. The Exchange also
believes that it should provide
additional clarity and avoid any
confusion on the applicability of the
new series add provision to any and all
FLEX Options in a manner that is
consistent with the existing provision
for FLEX Equity Options.
7 Rule 5.5 generally sets forth provisions
pertaining to series of options that may be open for
trading on the Exchange and generally pertains to
option contracts that are not FLEX Options.
However, Rule 5.5.04 currently provides as follows:
‘‘New series of options on an individual stock may
be added until the beginning of the month in which
the option contract will expire. Due to unusual
market conditions, the Exchange, in its discretion,
may add new series of options on an individual
stock until five business days prior to expiration.
Notwithstanding the foregoing, a new series of
FLEX Equity Options, as defined in and subject to
the provisions of Chapter XXIVA or XXIVB of the
Rules, may be added on any business day prior to
the expiration date.’’
8 Specifically, the Exchange is proposing to delete
the following sentence from Rule 5.5.04:
‘‘Notwithstanding the foregoing, a new series of
FLEX Equity Options, as defined in and subject to
the provisions of Chapter XXIVA or XXIVB of the
Rules, may be added on any business day prior to
the expiration date.’’ And, the Exchange is
proposing to add the following sentence to both
Rule 24A.4(a)(1) and 24B.4(a)(1): ‘‘A new series of
FLEX Options may be established on any business
day prior to the expiration date as provided for in
this Rule [24A.4 or 24B.4, as applicable].’’
E:\FR\FM\03NON1.SGM
03NON1
68240
Federal Register / Vol. 76, No. 213 / Thursday, November 3, 2011 / Notices
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act 9
in general and furthers the objectives of
Section 6(b)(5) of the Act 10 in particular
in that it should promote just and
equitable principles of trade, 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.
In particular, the Exchange believes that
reorganizing and amending the rules in
the manner proposed should make it
easier to read and understand the FLEX
Options provisions. The Exchange also
believes that it should provide
additional clarity and avoid any
confusion on the applicability of the
new series add provision to any and all
FLEX Options in a manner that is
consistent with the existing provision
for FLEX Equity Options.
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 that is not
necessary or appropriate in furtherance
of the purposes of the Act.
srobinson on DSK4SPTVN1PROD with NOTICES
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
Because the foregoing 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 selfregulatory 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, the proposed rule change
has become effective pursuant to
Section 19(b)(3)(A) of the Act 11 and
Rule 19b-4(f)(6) thereunder.12 At any
time within 60 days of the filing of such
proposed rule change, the Commission
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b-4(f)(6).
10 15
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16:50 Nov 02, 2011
Jkt 226001
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.
2011–098 and should be submitted on
or before November 25, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
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:
[FR Doc. 2011–28513 Filed 11–2–11; 8:45 am]
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–CBOE–2011–098 on the
subject line.
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of
Proposed Rule Change To Repeal
Incorporated NYSE Rule 2A
(Jurisdiction)
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–2011–098. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CBOE–
PO 00000
Frm 00115
Fmt 4703
Sfmt 4703
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65656; File No. SR–FINRA–
2011–062]
October 28, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that
on October 20, 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, II, and III below, which Items
have been prepared by FINRA. 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
FINRA is proposing to repeal
Incorporated NYSE Rule 2A
(Jurisdiction) as part of the process of
developing a consolidated FINRA
rulebook.
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA 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,
FINRA 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. FINRA has prepared
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\03NON1.SGM
03NON1
]]>Agencies
[Federal Register Volume 76, Number 213 (Thursday, November 3, 2011)]
[Notices]
[Pages 68239-68240]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-28513]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65659; File No. SR-CBOE-2011-098]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Related to FLEX Options
October 31, 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 October 17, 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, II, and III below, which Items have been prepared
by the Exchange. The Exchange has designated the proposal as a ``non-
controversial'' proposed rule change pursuant to Section 19(b)(3)(A) 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).
\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 is proposing to amend certain rules pertaining to
Flexible Exchange Options (``FLEX Options''). 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 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 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
FLEX Options provide investors with the ability to customize basic
option features including size, expiration date, exercise style, and
certain exercise prices (referred to as ``variable terms'').\5\ For
example, FLEX Options can have an expiration date that is any business
day (specified as to day, month and year) with a maximum term of
fifteen years.\6\ The rules governing the trading of FLEX Options on
the FLEX Request for Quote (``RFQ'') System platform are generally
contained in Chapter XXIVA. The rules governing the trading of FLEX
Options on the FLEX Hybrid Trading System platform are generally
contained in Chapter XXIVB. Within each Chapter, the provisions
pertaining to the variable terms of FLEX Options are generally
contained in Rules 24A.4 and 24B.4.
---------------------------------------------------------------------------
\5\ FLEX Options can be FLEX Index Options or FLEX Equity
Options. In addition, other products are permitted to be traded
pursuant to the FLEX trading procedures. For example, credit options
are eligible for trading as FLEX Options pursuant to the FLEX rules
in Chapters XXIVA and XXIVB. See CBOE Rules 24A.1(e) and (f),
24A.4(b)(1) and (c)(1), 24B.1(f) and (g), 24B.4(b)(1) and (c)(1),
and 28.17.
\6\ See Rule 24A.4(a)(2)(iv) and (a)(4)(i), and Rule
24B.4(a)(2)(iv) and (a)(5)(i).
---------------------------------------------------------------------------
The purpose of this proposed rule change is to reorganize and amend
certain Exchange Rules pertaining to FLEX Options to provide within
Chapters XXIVA and XXIVB that a new series of FLEX Options may be
established on any business day prior to the expiration date. The
adding of new FLEX Equity Options series on any business day prior to
the expiration date is already addressed in Rule 5.5 of Chapter V of
the Exchange Rules.\7\ In an effort to make reading and understanding
the FLEX Option provisions easier, the Exchange is proposing to move
this new series add provision from Rule 5.5 of Chapter V to Rules 24A.4
and 24B.4 of Chapters XXIVA and XXIVB, respectively. In addition, the
Exchange is proposing to apply the provision to all FLEX Options (not
just FLEX Equity Options).\8\ Previously the rules did not clearly
address the applicability of any such provision to other FLEX Options.
However, it has been the Exchange's practice to permit other FLEX
Options to be listed any business day prior to the expiration date.
---------------------------------------------------------------------------
\7\ Rule 5.5 generally sets forth provisions pertaining to
series of options that may be open for trading on the Exchange and
generally pertains to option contracts that are not FLEX Options.
However, Rule 5.5.04 currently provides as follows: ``New series of
options on an individual stock may be added until the beginning of
the month in which the option contract will expire. Due to unusual
market conditions, the Exchange, in its discretion, may add new
series of options on an individual stock until five business days
prior to expiration. Notwithstanding the foregoing, a new series of
FLEX Equity Options, as defined in and subject to the provisions of
Chapter XXIVA or XXIVB of the Rules, may be added on any business
day prior to the expiration date.''
\8\ Specifically, the Exchange is proposing to delete the
following sentence from Rule 5.5.04: ``Notwithstanding the
foregoing, a new series of FLEX Equity Options, as defined in and
subject to the provisions of Chapter XXIVA or XXIVB of the Rules,
may be added on any business day prior to the expiration date.''
And, the Exchange is proposing to add the following sentence to both
Rule 24A.4(a)(1) and 24B.4(a)(1): ``A new series of FLEX Options may
be established on any business day prior to the expiration date as
provided for in this Rule [24A.4 or 24B.4, as applicable].''
---------------------------------------------------------------------------
The Exchange believes that reorganizing and amending the rules in
the manner proposed should make it easier to read and understand the
FLEX Options provisions. The Exchange also believes that it should
provide additional clarity and avoid any confusion on the applicability
of the new series add provision to any and all FLEX Options in a manner
that is consistent with the existing provision for FLEX Equity Options.
[[Page 68240]]
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
\9\ in general and furthers the objectives of Section 6(b)(5) of the
Act \10\ in particular in that it should promote just and equitable
principles of trade, 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. In particular, the Exchange
believes that reorganizing and amending the rules in the manner
proposed should make it easier to read and understand the FLEX Options
provisions. The Exchange also believes that it should provide
additional clarity and avoid any confusion on the applicability of the
new series add provision to any and all FLEX Options in a manner that
is consistent with the existing provision for FLEX Equity Options.
---------------------------------------------------------------------------
\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 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 neither solicited nor received comments on the
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6)
thereunder.\12\ 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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 email to rule-comments@sec.gov. Please include
File Number SR-CBOE-2011-098 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-2011-098. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-CBOE-2011-098 and should be
submitted on or before November 25, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-28513 Filed 11-2-11; 8:45 am]
BILLING CODE 8011-01-P
