Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Clarify That CBSX Will Process Only Round-Lot Orders of HOLDRS, 72469-72470 [2011-30180]
Download as PDF
Federal Register / Vol. 76, No. 226 / Wednesday, November 23, 2011 / Notices
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–Phlx–
2011–152 and should be submitted on
or before December 14, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–30178 Filed 11–22–11; 8:45 am]
BILLING CODE 8011–01–P
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
Rule 52.8 to clarify that CBOE Stock
Exchange (‘‘CBSX’’), CBOE’s stock
trading facility, will only process roundlot orders 3 of HOLDRS Trust Issued
Receipts (‘‘HOLDRS’’) that trade on
CBSX. The text of the proposed rule
change is available on the Exchange’s
Web site (https://www.cboe.com/
AboutCBOE/
CBOELegalRegulatoryHome.aspx), 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.
SECURITIES AND EXCHANGE
COMMISSION
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
[Release No. 34–65781; File No. SR–CBOE–
2011–101]
1. Purpose
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Clarify That CBSX Will
Process Only Round-Lot Orders of
HOLDRS
sroberts on DSK5SPTVN1PROD with NOTICES
November 17, 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 November
15, 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 Commission is publishing this
9 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
17:03 Nov 22, 2011
Jkt 226001
Rule 52.8 states that odd-lot orders
(including the odd-lot potion of a
mixed-lot order) are processed in the
same manner as are round-lot orders,
except (i) If an incoming odd-lot order
trades against a quote in the CBSX Book,
the new quantity remaining in the quote
will be rounded down to the nearest
lower round-lot amount (zero or
multiple of 100) for display purposes,
with the remaining odd-lot amount
being cancelled, or (ii) if an incoming
order trades against a limit order resting
on the CBSX Book and an odd-lot
amount remains from the limit order
resting on the CBSX Book, that odd-lot
amount will remain in the system
eligible for execution but will not be
displayed.
3 A ‘‘round-lot’’ order is an order for a quantity
that is a multiple of 100 (e.g. 100, 400, 1200). An
‘‘odd-lot’’ order is an order for a quantity that is less
than 100. A ‘‘mixed-lot’’ order is an order for a
quantity that is greater than 100 but not a multiple
of 100 (e.g. 135, 372, 1126).
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
72469
HOLDRS are Trust Issued Receipts
that trade on CBSX and represent an
investor’s beneficial ownership of a
specified group of stocks in various
industries, sectors or groups.4 Currently,
CBSX processes odd-lot and mixed-lot
orders of HOLDRS in accordance with
Rule 52.8, as described above. However,
the prospectuses describing the terms of
HOLDRS provide that investors may
only acquire, hold, transfer, and
surrender a round-lot of HOLDRS.5 The
purpose of the proposed rule change is
to amend Rule 52.8 to state that CBSX
will only process round-lot orders of
HOLDRS that trade on CBSX in
accordance with the trading terms of
HOLDRS. CBSX will no longer accept
odd-lot or mixed-lot orders of HOLDRS
it receives.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) of the Act 6 in general and furthers
the objectives of Section 6(b)(5) 7 in
particular in that it is designed to
prevent fraudulent and manipulative
acts and practices and to promote just
and equitable principles of trade, and in
general to protect investors and the
public interest. Specifically, the
Exchange believes that the proposed
rule change serves to foster investor
protection by ensuring that investors not
only are aware of this restriction on
transactions in HOLDRS but also
comply with this restriction going
forward, as CBSX will no longer accept
transactions that do not.
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.
4 The following is a list of current outstanding
HOLDRS: Biotech (BBH), Broadband (BDH), B2B
Internet (BHH), Europe 2001 (EKH), Internet (HHH),
Internet Architecture (IAH), Internet Infrastructure
(IIH), Market 2000+ (MKH), Oil Services (OIH),
Pharmaceutical (PPH), Regional Bank (RKH), Retail
(RTH), Semiconductor (SMH), Software (SWH),
Telecom (TTH), Utilities (UTH), and Wireless
(WMH).
5 The prospectuses also provide, however, that
bid and ask prices are quoted per single HOLDR.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
E:\FR\FM\23NON1.SGM
23NON1
72470
Federal Register / Vol. 76, No. 226 / Wednesday, November 23, 2011 / Notices
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 8 and Rule 19b–4(f)(6)
thereunder 9 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.10
The Exchange has requested that the
Commission waive the 30-day operative
delay period. The Commission believes
that such action is consistent with the
protection of investors and the public
interest, because it will enable the
Exchange immediately to align its
trading rules with respect to HOLDRS
with provisions of the HOLDRS
prospectuses. Therefore, the
Commission designates the proposed
rule change to be operative upon
filing.11
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.12
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
sroberts on DSK5SPTVN1PROD with NOTICES
8 15
U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6).
10 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.
11 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).
12 15 U.S.C. 78s(b)(3)(C).
VerDate Mar<15>2010
17:03 Nov 22, 2011
Jkt 226001
• Send an email to rulecomments@sec.gov. Please include File
Number SR–CBOE–2011–101 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–65769; File No. SR–BX–
2011–074]
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Simplify the
$1 Strike Price Interval Program
All submissions should refer to File
Number SR–CBOE–2011–101. 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 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–
2011–101 and should be submitted on
or before December 14, 2011.
November 17, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–30180 Filed 11–22–11; 8:45 am]
BILLING CODE 8011–01–P
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 November
7, 2011, NASDAQ OMX BX, Inc. (the
‘‘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 has
designated the proposed rule change as
constituting a non-controversial rule
change under Rule 19b–4(f)(6) under the
Act,3 which renders the proposal
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
Chapter IV, Section 6 (Series of Options
Contracts Open for Trading) of the Rules
of the Boston Options Exchange Group,
LLC (‘‘BOX’’) to simplify the $1 Strike
Price Interval Program (‘‘Program’’).
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
2 17
13 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00084
Fmt 4703
Sfmt 4703
E:\FR\FM\23NON1.SGM
23NON1
Agencies
[Federal Register Volume 76, Number 226 (Wednesday, November 23, 2011)]
[Notices]
[Pages 72469-72470]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-30180]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65781; File No. SR-CBOE-2011-101]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Clarify That CBSX Will Process Only Round-Lot
Orders of HOLDRS
November 17, 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 November 15, 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 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 52.8 to clarify that CBOE Stock
Exchange (``CBSX''), CBOE's stock trading facility, will only process
round-lot orders \3\ of HOLDRS Trust Issued Receipts (``HOLDRS'') that
trade on CBSX. The text of the proposed rule change is available on the
Exchange's Web site (https://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission.
---------------------------------------------------------------------------
\3\ A ``round-lot'' order is an order for a quantity that is a
multiple of 100 (e.g. 100, 400, 1200). An ``odd-lot'' order is an
order for a quantity that is less than 100. A ``mixed-lot'' order is
an order for a quantity that is greater than 100 but not a multiple
of 100 (e.g. 135, 372, 1126).
---------------------------------------------------------------------------
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
Rule 52.8 states that odd-lot orders (including the odd-lot potion
of a mixed-lot order) are processed in the same manner as are round-lot
orders, except (i) If an incoming odd-lot order trades against a quote
in the CBSX Book, the new quantity remaining in the quote will be
rounded down to the nearest lower round-lot amount (zero or multiple of
100) for display purposes, with the remaining odd-lot amount being
cancelled, or (ii) if an incoming order trades against a limit order
resting on the CBSX Book and an odd-lot amount remains from the limit
order resting on the CBSX Book, that odd-lot amount will remain in the
system eligible for execution but will not be displayed.
HOLDRS are Trust Issued Receipts that trade on CBSX and represent
an investor's beneficial ownership of a specified group of stocks in
various industries, sectors or groups.\4\ Currently, CBSX processes
odd-lot and mixed-lot orders of HOLDRS in accordance with Rule 52.8, as
described above. However, the prospectuses describing the terms of
HOLDRS provide that investors may only acquire, hold, transfer, and
surrender a round-lot of HOLDRS.\5\ The purpose of the proposed rule
change is to amend Rule 52.8 to state that CBSX will only process
round-lot orders of HOLDRS that trade on CBSX in accordance with the
trading terms of HOLDRS. CBSX will no longer accept odd-lot or mixed-
lot orders of HOLDRS it receives.
---------------------------------------------------------------------------
\4\ The following is a list of current outstanding HOLDRS:
Biotech (BBH), Broadband (BDH), B2B Internet (BHH), Europe 2001
(EKH), Internet (HHH), Internet Architecture (IAH), Internet
Infrastructure (IIH), Market 2000+ (MKH), Oil Services (OIH),
Pharmaceutical (PPH), Regional Bank (RKH), Retail (RTH),
Semiconductor (SMH), Software (SWH), Telecom (TTH), Utilities (UTH),
and Wireless (WMH).
\5\ The prospectuses also provide, however, that bid and ask
prices are quoted per single HOLDR.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Act \6\ in general and furthers the objectives of
Section 6(b)(5) \7\ in particular in that it is designed to prevent
fraudulent and manipulative acts and practices and to promote just and
equitable principles of trade, and in general to protect investors and
the public interest. Specifically, the Exchange believes that the
proposed rule change serves to foster investor protection by ensuring
that investors not only are aware of this restriction on transactions
in HOLDRS but also comply with this restriction going forward, as CBSX
will no longer accept transactions that do not.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 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.
[[Page 72470]]
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 \8\ and Rule 19b-4(f)(6) thereunder \9\ 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.\10\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 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 Commission believes that such action is
consistent with the protection of investors and the public interest,
because it will enable the Exchange immediately to align its trading
rules with respect to HOLDRS with provisions of the HOLDRS
prospectuses. Therefore, the Commission designates the proposed rule
change to be operative upon filing.\11\
---------------------------------------------------------------------------
\11\ 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.\12\
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------
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-2011-101 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-2011-101. 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 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-2011-101 and should be
submitted on or before December 14, 2011.
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-30180 Filed 11-22-11; 8:45 am]
BILLING CODE 8011-01-P