Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rule Related to Multi-Class Broad-Based Index Option Spread Orders, 73498-73500 [2012-29701]

Download as PDF 73498 Federal Register / Vol. 77, No. 237 / Monday, December 10, 2012 / Notices mstockstill on DSK4VPTVN1PROD with portion that may be closed to protect information that is propriety pursuant to 5 U.S.C. 552(c)(4). The agenda for the subject meeting shall be as follows: Tuesday, January 15, 2013—8:30 a.m. Until 5:00 p.m. The Subcommittee will discuss the staff’s review of Topical Report MUAP– 07009, ‘‘Mitsubishi Thermal Design Methodology.’’ The Subcommittee will also receive an informational briefing on Topical Report, MUAP–07034, ‘‘FINDS: Mitsubishi Fuel Assemblies Seismic Analysis Code.’’ Both Topical Reports are associated with the design certification of the US–APWR. The Subcommittee will hear presentations by and hold discussions with representatives of the NRC staff, Luminant Generation Company LLC, and Mitsubishi Heavy Industries (MHI) regarding this matter. The Subcommittee will gather information, analyze relevant issues and facts, and formulate proposed positions and actions, as appropriate, for deliberation by the Full Committee. Members of the public desiring to provide oral statements and/or written comments should notify the Designated Federal Official (DFO), Girija Shukla (Telephone 301–415–6855 or Email: Girija.Shukla@nrc.gov) five days prior to the meeting, if possible, so that appropriate arrangements can be made. Thirty-five hard copies of each presentation or handout should be provided to the DFO thirty minutes before the meeting. In addition, one electronic copy of each presentation should be emailed to the DFO one day before the meeting. If an electronic copy cannot be provided within this timeframe, presenters should provide the DFO with a CD containing each presentation at least thirty minutes before the meeting. Electronic recordings will be permitted only during those portions of the meeting that are open to the public. Detailed procedures for the conduct of and participation in ACRS meetings were published in the Federal Register on October 18, 2012, (77 FR 64146–64147). Detailed meeting agendas and meeting transcripts are available on the NRC Web site at https://www.nrc.gov/readingrm/doc-collections/acrs. Information regarding topics to be discussed, changes to the agenda, whether the meeting has been canceled or rescheduled, and the time allotted to present oral statements can be obtained from the Web site cited above or by contacting the identified DFO. Moreover, in view of the possibility that the schedule for ACRS meetings may be adjusted by the Chairman as necessary VerDate Mar<15>2010 18:30 Dec 07, 2012 Jkt 229001 to facilitate the conduct of the meeting, persons planning to attend should check with these references if such rescheduling would result in a major inconvenience. If attending this meeting, please enter through the One White Flint North building, 11555 Rockville Pike, Rockville, MD. After registering with security, please contact Mr. Theron Brown (Telephone 240–888–9835) to be escorted to the meeting room. Dated: December 6, 2012. Kevin M. O’Neill, Deputy Secretary. Dated: November 30, 2012. Antonio Dias, Technical Advisor, Advisory Committee on Reactor Safeguards. Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rule Related to Multi-Class Broad-Based Index Option Spread Orders [FR Doc. 2012–29725 Filed 12–7–12; 8:45 am] BILLING CODE 7590–01–P [FR Doc. 2012–29859 Filed 12–6–12; 4:15 pm] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–68350; File No. SR–CBOE– 2012–117] December 4, 2012. SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meeting Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Public Law 94–409, that the Securities and Exchange Commission will hold a Closed Meeting on Thursday, December 13, 2012 at 2:00 p.m. Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the Closed Meeting. Certain staff members who have an interest in the matters also may be present. The General Counsel of the Commission, or his designee, has certified that, in his opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) and 17 CFR 200.402(a)(3), (5), (7), 9(ii) and (10), permit consideration of the scheduled matters at the Closed Meeting. Commissioner Aguilar, as duty officer, voted to consider the items listed for the Closed Meeting in a closed session. The subject matter of the Closed Meeting will be: Adjudicatory matters; Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings; and other matters relating to enforcement proceedings. At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551–5400. PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 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 November 29, 2012, Chicago Board Options Exchange, Incorporated (the ‘‘Exchange’’ or ‘‘CBOE’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II, and III 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 the Substance of the Proposed Rule Change The Exchange proposes to amend its rule related to multi-class broad-based index option spread orders. 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 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 2 17 E:\FR\FM\10DEN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 10DEN1 Federal Register / Vol. 77, No. 237 / Monday, December 10, 2012 / Notices mstockstill on DSK4VPTVN1PROD with A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this rule filing is to (i) clarify that the term ‘‘Multi-Class BroadBased Index Option Spread Order (Multi-Class Spread Order)’’ may refer to either an order or a quote; (ii) clarify who Trading Permit Holders (‘‘TPHs’’) initiating a Multi-Class Spread Order in the primary trading station must notify in the secondary trading station; (iii) provide that the recipient Order Book Official (‘‘OBO’’), Designated Primary Market-Maker (‘‘DPM’’) or Exchange staff in the secondary trading station must verbalize the terms of a MultiClass Spread Order to the secondary trading crowd; and (iv) require that the recipient OBO, DPM or Exchange staff in the secondary trading station document the terms of the order. Exchange Rule 24.19 describes a Multi-Class Spread Order as ‘‘an order’’ to buy a stated number of contracts of a Broad-Based Index Option and sell an equal number, or an equivalent number, of contracts of a different Broad-Based Index Option. Market-Makers however, may also enter a ‘‘Multi-Class Spread Order’’ quote. Accordingly, the Exchange is seeking to clarify in its rules that the term ‘‘Multi-Class Spread Order’’ may refer to either an order or a quote, thereby maintaining clarity in the rules and reducing potential confusion. The Exchange is also seeking to clarify the procedure for which notice regarding a Multi-Class Spread Order is given to the trading crowd at a secondary trading station. Rule 24.19 provides that a Multi-Class Spread Order may be represented at the trading station of either Broad-Based Index, subject to certain conditions. First, Rule 24.19(b)(i) currently requires that upon an announcement of a Multi-Class Spread Order at the primary trading station, the TPH initiating the order must contact either an OBO or the DPM at the secondary trading station, who then must disseminate notice of the order to the secondary trading crowd. In some classes however, it is possible that neither an OBO nor DPM is assigned. Therefore, the Exchange is proposing to clarify that, in addition to an OBO or DPM, a TPH may contact otherwise appropriate Exchange staff (e.g. PAR official or trading official). Trading stations which do not have an OBO or DPM assigned must ensure that an appropriate Exchange staff is present for purposes of disseminating a notice of a Multi-Class Spread Order. The proposed VerDate Mar<15>2010 18:30 Dec 07, 2012 Jkt 229001 rule change would reduce confusion, as well as provide guidance in situations where neither an OBO nor DPM exists. Next, the Exchange proposes to specify the manner in which the recipient OBO, DPM, or Exchange staff in the secondary trading station must disseminate a notice of a Multi-ClassSpread Order. The proposed rule change requires the recipient OBO, DPM, or Exchange staff in the secondary trading station to verbalize the terms of the order to the secondary trading crowd. This proposed change ensures adequate dissemination of a notice of an order and its terms and promotes transparency. Finally, the Exchange seeks to require that the recipient OBO, DPM, or Exchange staff document the terms of the order for purposes of record retention and aiding surveillance. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act, in general. Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 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. Clarifying that a ‘‘Multi-Class Spread Order’’ may refer to an order or a quote should clear up any potential confusion and therefore inform investors. Clarifying and specifying the procedures in which a notice of a Multi-Class Spread Order is disseminated and documented also reduces potential confusion and maintains clarity in the rules. Further, it promotes transparency and aids in surveillance, thereby protecting investors. 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 proposed rule change. PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 73499 III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) 3 of the Act and Rule 19b–4(f)(6) 4 thereunder. At any time within 60 days of the filing of this 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 email to rulecomments@sec.gov. Please include File Number SR–CBOE–2012–117 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–2012–117. 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 3 15 4 17 E:\FR\FM\10DEN1.SGM U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 10DEN1 73500 Federal Register / Vol. 77, No. 237 / Monday, December 10, 2012 / Notices 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 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal offices 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– 2012–117, and should be submitted on or before December 31, 2012. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.5 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–29701 Filed 12–7–12; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change Relating to Listing and Trading of Shares of the Horizons S&P 500 Covered Call ETF, Horizons S&P Financial Select Sector Covered Call ETF, and Horizons S&P Energy Select Sector Covered Call ETF Under NYSE Arca Equities Rule 5.2(j)(3) mstockstill on DSK4VPTVN1PROD with December 4, 2012. 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 November 21, 2012, NYSE Arca, Inc. (‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Mar<15>2010 18:30 Dec 07, 2012 Jkt 229001 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 Statutory Basis for, the Proposed Rule Change [Release No. 34–68351; File No. SR– NYSEArca–2012–131] 5 17 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to list and trade shares (‘‘Shares’’) of the Horizons S&P 500 Covered Call ETF, Horizons S&P Financial Select Sector Covered Call ETF, and Horizons S&P Energy Select Sector Covered Call ETF under NYSE Arca Equities Rule 5.2(j)(3). The text of the proposed rule change is available on the Exchange’s Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. 1. Purpose The Exchange proposes to list and trade the Shares of the Horizons S&P 500® Covered Call ETF, Horizons S&P Financial Select Sector Covered Call ETF, and Horizons S&P Energy Select Sector Covered Call ETF (each, a ‘‘Fund’’ and collectively, ‘‘Funds’’) under NYSE Arca Equities Rule 5.2(j)(3), the Exchange’s listing standards for Investment Company Units (‘‘Units’’).3 The Shares will be offered by Exchange Traded Concepts Trust II (‘‘Trust’’), which is organized as a Delaware statutory trust and is registered with the Commission as an open-end management investment company.4 The investment adviser to 3 An Investment Company Unit is a security that represents an interest in a registered investment company that holds securities comprising, or otherwise based on or representing an interest in, an index or portfolio of securities (or holds securities in another registered investment company that holds securities comprising, or otherwise based on or representing an interest in, an index or portfolio of securities). See NYSE Arca Equities Rule 5.2(j)(3)(A). 4 The Trust is registered under the Investment Company Act of 1940 (15 U.S.C. 80a–1) (‘‘1940 Act’’). On September 10, 2012, the Trust filed with the Commission an amendment to its Form N–1A under the Securities Act of 1933 (15 U.S.C. 77a) and PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 the Funds is Exchange Traded Concepts, LLC (‘‘Adviser’’).5 The sub-adviser to the Funds is Horizons ETFs Management (USA) LLC (‘‘SubAdviser’’). 6 Foreside Fund Services, LLC (‘‘Distributor’’) is the principal underwriter and distributor of the Funds’ Shares. Citi Fund Services Ohio, Inc. (‘‘Administrator’’) will serve as administrator for the Funds; Citibank, NA (‘‘Custodian’’) will serve as custodian for the Funds; and Citi Fund Services Ohio, Inc. (‘‘Transfer Agent’’) will serve as transfer agent for the Funds. As described below, each Fund will seek investment results that, before fees and expenses, generally correspond to the performance of a specified index (each, an ‘‘Underlying Index’’) provided by S&P Dow Jones Indices LLC (‘‘Index under the 1940 Act relating to the Funds (File Nos. 333–180871 and 811–22700) (‘‘Registration Statement’’). The description of the operation of the Trust and the Funds herein is based, in part, on the Registration Statement. In addition, the Commission has issued an order granting certain exemptive relief to the Trust under the 1940 Act. See Investment Company Act Release No. 29065 (Dec. 1, 2009) (File No. 812–13638) (‘‘Exemptive Order’’). 5 The Adviser is affiliated with a broker-dealer and has implemented a fire wall with respect to its broker-dealer affiliate regarding access to information concerning the portfolio holdings of the Funds. The Sub-Adviser (as defined herein) is affiliated with a broker-dealer and has implemented a fire wall with respect to its broker dealer affiliate regarding access to information concerning the portfolio holdings of the Funds. In the event (a) the Adviser or Sub-Adviser becomes newly affiliated with a broker-dealer, or (b) any new adviser or subadviser becomes affiliated with a broker-dealer, it will implement a fire wall with respect to such broker-dealer regarding access to information concerning the portfolio holdings of the Funds, and will be subject to procedures designed to prevent the use and dissemination of material, non-public information regarding such portfolios. 6 An investment adviser to an open-end fund is required to be registered under the Investment Advisers Act of 1940 (‘‘Advisers Act’’). As a result, the Adviser, Sub-Adviser, and their related personnel are subject to the provisions of Rule 204A–1 under the Advisers Act relating to codes of ethics. This Rule requires investment advisers to adopt a code of ethics that reflects the fiduciary nature of the relationship to clients as well as compliance with other applicable securities laws. Accordingly, procedures designed to prevent the communication and misuse of non-public information by an investment adviser must be consistent with Rule 204A–1 under the Advisers Act. In addition, Rule 206(4)–7 under the Advisers Act makes it unlawful for an investment adviser to provide investment advice to clients unless such investment adviser has (i) adopted and implemented written policies and procedures reasonably designed to prevent violation, by the investment adviser and its supervised persons, of the Advisers Act and the Commission rules adopted thereunder; (ii) implemented, at a minimum, an annual review regarding the adequacy of the policies and procedures established pursuant to subparagraph (i) above and the effectiveness of their implementation; and (iii) designated an individual (who is a supervised person) responsible for administering the policies and procedures adopted under subparagraph (i) above. E:\FR\FM\10DEN1.SGM 10DEN1

Agencies

[Federal Register Volume 77, Number 237 (Monday, December 10, 2012)]
[Notices]
[Pages 73498-73500]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-29701]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68350; File No. SR-CBOE-2012-117]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Its Rule Related to Multi-Class Broad-
Based Index Option Spread Orders

December 4, 2012.
    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 November 29, 2012, Chicago Board Options Exchange, Incorporated 
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange 
Commission (the ``Commission'') the proposed rule change as described 
in Items I, II, and III 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 the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend its rule related to multi-class 
broad-based index option spread orders. 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 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.

[[Page 73499]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this rule filing is to (i) clarify that the term 
``Multi-Class Broad-Based Index Option Spread Order (Multi-Class Spread 
Order)'' may refer to either an order or a quote; (ii) clarify who 
Trading Permit Holders (``TPHs'') initiating a Multi-Class Spread Order 
in the primary trading station must notify in the secondary trading 
station; (iii) provide that the recipient Order Book Official 
(``OBO''), Designated Primary Market-Maker (``DPM'') or Exchange staff 
in the secondary trading station must verbalize the terms of a Multi-
Class Spread Order to the secondary trading crowd; and (iv) require 
that the recipient OBO, DPM or Exchange staff in the secondary trading 
station document the terms of the order.
    Exchange Rule 24.19 describes a Multi-Class Spread Order as ``an 
order'' to buy a stated number of contracts of a Broad-Based Index 
Option and sell an equal number, or an equivalent number, of contracts 
of a different Broad-Based Index Option. Market-Makers however, may 
also enter a ``Multi-Class Spread Order'' quote. Accordingly, the 
Exchange is seeking to clarify in its rules that the term ``Multi-Class 
Spread Order'' may refer to either an order or a quote, thereby 
maintaining clarity in the rules and reducing potential confusion.
    The Exchange is also seeking to clarify the procedure for which 
notice regarding a Multi-Class Spread Order is given to the trading 
crowd at a secondary trading station. Rule 24.19 provides that a Multi-
Class Spread Order may be represented at the trading station of either 
Broad-Based Index, subject to certain conditions. First, Rule 
24.19(b)(i) currently requires that upon an announcement of a Multi-
Class Spread Order at the primary trading station, the TPH initiating 
the order must contact either an OBO or the DPM at the secondary 
trading station, who then must disseminate notice of the order to the 
secondary trading crowd. In some classes however, it is possible that 
neither an OBO nor DPM is assigned. Therefore, the Exchange is 
proposing to clarify that, in addition to an OBO or DPM, a TPH may 
contact otherwise appropriate Exchange staff (e.g. PAR official or 
trading official). Trading stations which do not have an OBO or DPM 
assigned must ensure that an appropriate Exchange staff is present for 
purposes of disseminating a notice of a Multi-Class Spread Order. The 
proposed rule change would reduce confusion, as well as provide 
guidance in situations where neither an OBO nor DPM exists.
    Next, the Exchange proposes to specify the manner in which the 
recipient OBO, DPM, or Exchange staff in the secondary trading station 
must disseminate a notice of a Multi-Class-Spread Order. The proposed 
rule change requires the recipient OBO, DPM, or Exchange staff in the 
secondary trading station to verbalize the terms of the order to the 
secondary trading crowd. This proposed change ensures adequate 
dissemination of a notice of an order and its terms and promotes 
transparency. Finally, the Exchange seeks to require that the recipient 
OBO, DPM, or Exchange staff document the terms of the order for 
purposes of record retention and aiding surveillance.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act, in general. Specifically, the Exchange believes the proposed rule 
change is consistent with the Section 6(b)(5) 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. Clarifying that a ``Multi-Class 
Spread Order'' may refer to an order or a quote should clear up any 
potential confusion and therefore inform investors. Clarifying and 
specifying the procedures in which a notice of a Multi-Class Spread 
Order is disseminated and documented also reduces potential confusion 
and maintains clarity in the rules. Further, it promotes transparency 
and aids in surveillance, thereby protecting investors.

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 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not:
    (i) Significantly affect the protection of investors or the public 
interest;
    (ii) impose any significant burden on competition; and
    (iii) become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to Section 19(b)(3)(A) \3\ of the Act and 
Rule 19b-4(f)(6) \4\ thereunder.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of this 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 email to rule-comments@sec.gov. Please include 
File Number SR-CBOE-2012-117 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-2012-117. 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

[[Page 73500]]

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 on official business days between the hours of 10:00 
a.m. and 3:00 p.m. Copies of such filing also will be available for 
inspection and copying at the principal offices 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-2012-117, and should be 
submitted on or before December 31, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-29701 Filed 12-7-12; 8:45 am]
BILLING CODE 8011-01-P
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