Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Exchange's Credit Option Margin Pilot Program, 138-140 [2012-31533]
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138
Federal Register / Vol. 78, No. 1 / Wednesday, January 2, 2013 / Notices
pursuant to Rule 19b–4(f)(6)(iii),11 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because doing so will allow the Pilot
Program to continue without
interruption in a manner that is
consistent with the Commission’s prior
approval of the extension and expansion
of the Pilot Program and will allow the
Exchange and the Commission
additional time to analyze the impact of
the Pilot Program.12 Accordingly, the
Commission designates the proposed
rule change as operative upon filing
with the Commission.13
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 email to rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2012–143 on the
subject line.
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2012–143. 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
10:00 a.m. and 3:00 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–
NASDAQ–2012–143 and should be
submitted on or before January 23, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
tkelley on DSK3SPTVN1PROD with
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. Purpose
[Release No. 34–68539; File No. SR–CBOE–
2012–125]
Jkt 229001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
16:42 Dec 31, 2012
The Exchange proposes to extend its
Credit Option Margin Pilot Program
through January 17, 2014. 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.
[FR Doc. 2012–31462 Filed 12–31–12; 8:45 am]
Paper Comments
VerDate Mar<15>2010
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
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 pre-filing requirement.
11 17 CFR 240.19b–4(f)(6)(iii).
12 See Securities Exchange Act Release No. 61061
(November 24, 2009), 74 FR 62857 (December 1,
2009) (SR–NYSEArca-2009–44). See also supra note
3.
13 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).
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
17, 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 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.
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to the
Exchange’s Credit Option Margin Pilot
Program
December 27, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
14 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00056
Fmt 4703
Sfmt 4703
On February 2, 2011, the Commission
approved the Exchange’s proposal to
establish a Credit Option Margin Pilot
Program (‘‘Program’’).3 The proposal
became effective on a pilot basis to run
on a parallel track with Financial
Industry Regulatory Authority
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 63819
(February 2, 2011), 76 FR 6838 (February 8, 2011)
order approving (SR–CBOE–2010–106). To
implement the Program, the Exchange amended
Rule 12.3(l), Margin Requirements, to make CBOE’s
margin requirements for Credit Options consistent
with Financial Industry Regulatory Authority
(‘‘FINRA’’) Rule 4240, Margin Requirements for
Credit Default Swaps. CBOE’s Credit Options (i.e.,
Credit Default Options and Credit Default Basket
Options) are analogous to credit default swaps.
2 17
E:\FR\FM\02JAN1.SGM
02JAN1
Federal Register / Vol. 78, No. 1 / Wednesday, January 2, 2013 / Notices
(‘‘FINRA’’) Rule 4240 that similarly
operates on an interim pilot basis.4
On January 17, 2012, the Exchange
filed a rule change to, among other
things, decouple the Program with the
FINRA program and to extend the
expiration date of the Program to
January 17, 2013.5 The Program,
however, continues to be substantially
similar to the provisions of the FINRA
program. The Exchange believes that
extending the expiration date of the
Program will allow for further analysis
of the Program and a determination of
how the Program should be structured
in the future. Thus, the Exchange is now
currently proposing to extend the
duration of the Program.
The Exchange notes that there are
currently Credit Options listed for
trading on the Exchange that have open
interest. As a result, the Exchange
believes that is in the public interest for
the Program to continue uninterrupted.
In the future, if the Exchange
proposes an additional extension of the
Credit Option Margin Pilot Program or
proposes to make the Program
permanent, then the Exchange will
submit a filing proposing such
amendments to the Program.
tkelley on DSK3SPTVN1PROD with
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.6 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 7 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitation transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 8 requirement that
the rules of an exchange not be designed
4 See Securities Exchange Act Release No. 59955
(May 22, 2009), 74 FR 25586 (May 28, 2009) (Notice
of Filing and Order Granting Accelerated Approval
of Proposed Rule Change; SR–FINRA–2009–012).
5 See Securities and Exchange Act Release No.
66163 (January 17, 2012), 77 FR 3318 (January 23,
2012) (SR–CBOE–2012–007).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
8 Id.
VerDate Mar<15>2010
16:42 Dec 31, 2012
Jkt 229001
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the Exchange believes that
the proposed rule change will further
the purposes of the Act because,
consistent with the goals of the
Commission at the initial adoption of
the program, the margin requirements
set forth by the proposed rule change
will help to stabilize the financial
markets. In addition, the proposed rule
change is substantially similar to
existing FINRA Rule 4240.
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. Specifically,
the Exchange believes that, by extending
the expiration of the Program, the
proposed rule change will allow for
further analysis of the Program and a
determination of how the Program shall
be structured in the future. In doing so,
the proposed rule change will also serve
to promote regulatory clarity and
consistency, thereby reducing burdens
on the marketplace and facilitating
investor protection.
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:
A. Significantly affect the protection
of investors or the public interest;
B. Impose any significant burden on
competition; and
C. 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) of the
Act 9 and Rule 19b–4(f)(6) 10 thereunder.
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.
9 15
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–2012–125 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CBOE–2012–125. 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
10:00 a.m. and 3:00 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–CBOE2012–125 and should be submitted on
or before January 23, 2013.
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
10 17
PO 00000
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Fmt 4703
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139
E:\FR\FM\02JAN1.SGM
02JAN1
140
Federal Register / Vol. 78, No. 1 / Wednesday, January 2, 2013 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012–31533 Filed 12–31–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68535; File No. SR–OCC–
2012–24]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Make Its
By-Laws and Rules Consistent With
Recent System Changes to the Stock
Loan/Hedge Program and Market Loan
Program and Delete Certain Terms and
Provisions No Longer Applicable
December 26, 2012.
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 December
13, 2012, The Options Clearing
Corporation (‘‘OCC’’ or the
‘‘Corporation’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change described in Items I, II and III
below, which items have been prepared
primarily by OCC. OCC filed the
proposal pursuant to Section
19(b)(3)(A)(iii) of the Act,3 and Rule
19b–4(f)(4)(i) 4 thereunder so that the
proposal was 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 Terms of Substance of the
Proposed Rule Change
OCC is amending its By-Laws and
Rules to make them consistent with
recent system changes to the Stock
Loan/Hedge Program and Market Loan
Program and delete certain terms and
provisions that are no longer applicable.
II. Self-Regulatory Organization’s
Statement of Purpose of, and Statutory
Basis for, the Proposed Rule Change
tkelley on DSK3SPTVN1PROD with
In its filing with the Commission,
OCC included statements concerning
the purpose of and basis for the rule
change and discussed any comments it
11 17
CFR 200.30–3(a)(12).
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)(4)(i).
1 15
VerDate Mar<15>2010
16:42 Dec 31, 2012
received on the proposed rule change.
The text of these statements may be
examined at the places specified in Item
IV below. OCC has prepared summaries,
set forth in sections A, B, and C below,
of the most significant aspects of such
statements.5
A. Self-Regulatory Organization’s
Statement of Purpose of, and Statutory
Basis for, the Proposed Rule Change
The purpose of the rule change is to
make certain technical changes to the
By-Laws and Rules governing OCC’s
Stock Loan/Hedge Program and Market
Loan Program (collectively, the
‘‘Programs’’) in order to make them
consistent with recent system changes
to the Programs and to delete certain
terms and provisions that are no longer
applicable.
Background
OCC’s Stock Loan/Hedge Program is
provided for in Article XXI of the ByLaws and Chapter XXII of the Rules, and
provides a means for OCC clearing
members to submit broker-to-broker
stock loan transactions to OCC for
clearance. Broker-to-broker transactions
are independently-executed stock loan
transactions that are negotiated directly
between two OCC clearing members.
OCC’s Market Loan Program, provided
for in Article XXIA of the By-Laws and
Chapter XXIIA of the Rules,
accommodates securities loan
transactions executed through electronic
trading platforms that match lenders
and borrowers on an anonymous basis.
Anonymous stock loan transactions are
initiated when a lender or borrower,
who is either an OCC clearing member
participating in the Market Loan
Program or a non-clearing member who
has a clearing relationship with an OCC
clearing member participating in the
Market Loan Program, accepts a bid/
offer displayed on a trading platform. A
clearing member participating in the
Market Loan Program will be obligated
to OCC as principal with respect to
transactions effected by its customers
that are non-clearing members of a
trading platform.
Where a stock loan transaction is
submitted to, and accepted by, OCC for
clearance, OCC substitutes itself as the
lender to the borrower and the borrower
to the lender, thus serving a function for
the stock loan market similar to the one
it serves within the listed options
market. OCC thereby guarantees the
future daily mark-to-market payments
between the lending clearing member
and borrowing clearing member, which
5 The Commission has modified the text of the
summaries prepared by OCC.
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are effected through OCC’s cash
settlement system, and the return of the
loaned stock to the lending clearing
member and the collateral to the
borrowing clearing member upon closeout of the stock loan transaction. OCC
leverages The Depository Trust
Company’s (‘‘DTC’’ or the ‘‘Depository’’)
infrastructure to transfer loaned stock
and collateral between OCC clearing
members.
Recently, OCC performed a series of
procedural changes and system
enhancements designed to automate
processes that had previously been
performed manually and improve the
allocation process for stock loan and
borrow positions of OCC members who
participate in the Stock Loan/Hedge
Program and the Market Loan Program.
For example, OCC has simplified the
process in which stock loan positions
are allocated or transferred across a
clearing member’s account structure.
Clearing members now specify a
‘‘default’’ account into which stock loan
and borrow positions are automatically
allocated, and from which transfers and
returns are processed, unless otherwise
specified in an instruction submitted by
the clearing member. Additionally, OCC
now has the functionality to receive
messages from DTC in real-time,
including reclaim requests (i.e., requests
submitted by a lender or borrower to
DTC to reverse an initial delivery order).
Although OCC had previously
processed such messages on a manual
basis, system changes now enable OCC
to automatically process reclaim
requests received from DTC on a realtime basis throughout the day. As such,
clearing members may now view their
positions in real-time, and perform
transfers throughout the day based on
real-time position information. OCC
system changes also provide clearing
members with additional mark-tomarket rounding flexibility, allowing
clearing members to now round their
mark-to-market pay and collect amounts
to decimals. Finally, the system changes
provide clearing members the ability to
use sub-accounting functionality that
already exists for other products cleared
by OCC. In particular, the use of subaccounting functionality allows a
clearing member to segregate individual
accounts within its customer, firm, or
market-maker ranges, providing greater
flexibility in how the clearing member
manages individual account positions
and margin requirements.
While these system changes and
procedural changes increase the
efficiency and accuracy of the processes
by which stock loan and borrow
transactions are processed and positions
are maintained, OCC believes they have
E:\FR\FM\02JAN1.SGM
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]]>Agencies
[Federal Register Volume 78, Number 1 (Wednesday, January 2, 2013)]
[Notices]
[Pages 138-140]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-31533]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68539; File No. SR-CBOE-2012-125]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to the Exchange's Credit Option Margin
Pilot Program
December 27, 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 December 17, 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 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 extend its Credit Option Margin Pilot
Program through January 17, 2014. 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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On February 2, 2011, the Commission approved the Exchange's
proposal to establish a Credit Option Margin Pilot Program
(``Program'').\3\ The proposal became effective on a pilot basis to run
on a parallel track with Financial Industry Regulatory Authority
[[Page 139]]
(``FINRA'') Rule 4240 that similarly operates on an interim pilot
basis.\4\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 63819 (February 2,
2011), 76 FR 6838 (February 8, 2011) order approving (SR-CBOE-2010-
106). To implement the Program, the Exchange amended Rule 12.3(l),
Margin Requirements, to make CBOE's margin requirements for Credit
Options consistent with Financial Industry Regulatory Authority
(``FINRA'') Rule 4240, Margin Requirements for Credit Default Swaps.
CBOE's Credit Options (i.e., Credit Default Options and Credit
Default Basket Options) are analogous to credit default swaps.
\4\ See Securities Exchange Act Release No. 59955 (May 22,
2009), 74 FR 25586 (May 28, 2009) (Notice of Filing and Order
Granting Accelerated Approval of Proposed Rule Change; SR-FINRA-
2009-012).
---------------------------------------------------------------------------
On January 17, 2012, the Exchange filed a rule change to, among
other things, decouple the Program with the FINRA program and to extend
the expiration date of the Program to January 17, 2013.\5\ The Program,
however, continues to be substantially similar to the provisions of the
FINRA program. The Exchange believes that extending the expiration date
of the Program will allow for further analysis of the Program and a
determination of how the Program should be structured in the future.
Thus, the Exchange is now currently proposing to extend the duration of
the Program.
---------------------------------------------------------------------------
\5\ See Securities and Exchange Act Release No. 66163 (January
17, 2012), 77 FR 3318 (January 23, 2012) (SR-CBOE-2012-007).
---------------------------------------------------------------------------
The Exchange notes that there are currently Credit Options listed
for trading on the Exchange that have open interest. As a result, the
Exchange believes that is in the public interest for the Program to
continue uninterrupted.
In the future, if the Exchange proposes an additional extension of
the Credit Option Margin Pilot Program or proposes to make the Program
permanent, then the Exchange will submit a filing proposing such
amendments to the Program.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\6\ Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \7\ requirements that the rules of
an exchange be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitation transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \8\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. In particular, the Exchange
believes that the proposed rule change will further the purposes of the
Act because, consistent with the goals of the Commission at the initial
adoption of the program, the margin requirements set forth by the
proposed rule change will help to stabilize the financial markets. In
addition, the proposed rule change is substantially similar to existing
FINRA Rule 4240.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
\8\ Id.
---------------------------------------------------------------------------
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. Specifically, the Exchange
believes that, by extending the expiration of the Program, the proposed
rule change will allow for further analysis of the Program and a
determination of how the Program shall be structured in the future. In
doing so, the proposed rule change will also serve to promote
regulatory clarity and consistency, thereby reducing burdens on the
marketplace and facilitating investor protection.
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:
A. Significantly affect the protection of investors or the public
interest;
B. Impose any significant burden on competition; and
C. 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) of the Act \9\ and
Rule 19b-4(f)(6) \10\ thereunder. 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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-2012-125 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2012-125. 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
10:00 a.m. and 3:00 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-2012-125 and should be
submitted on or before January 23, 2013.
[[Page 140]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012-31533 Filed 12-31-12; 8:45 am]
BILLING CODE 8011-01-P
