[Federal Register Volume 73, Number 188 (Friday, September 26, 2008)]
[Notices]
[Pages 55882-55883]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-22656]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58603; File No. SR-CBOE-2008-97]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of a Proposed Rule To Establish a CBSX-
Only Order Type
September 19, 2008.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is
hereby given that on September 16, 2008, the 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to change CBOE Stock Exchange (``CBSX'') Rule
51.8, to adopt a CBSX-Only order. The text of the proposed rule change
is available on the Exchange's Web site (http://www.cboe.com), at the
Office of the Secretary, CBOE 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, 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
1. Purpose
The purpose of this proposed rule change is to revise CBOE Stock
Exchange (``CBSX'') Rule 51.8 to adopt a CBSX-Only order type. A CBSX-
only order is an order to buy or sell that is to be executed in whole
or in part on CBSX, and the portion not so executed is to be cancelled,
without routing the order to another market center or market
participant, and without being ``flashed'' at the NBBO price to CBSX
Traders pursuant to Rule 52.6 when CBSX is not at the NBBO and the
order is marketable against the NBBO. Thus, a CBSX-Only order would
either immediately execute on CBSX, get booked on CBSX (provided it
does not cause a locked or crossed market), or cancel. Many exchanges
have similar order-types (e.g. NSX Rule 11.11(c)(6)).
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
section 6(b) of the Act \3\ in general and furthers the objectives of
section 6(b)(5) of the Act \4\ in particular in that, by offering users
greater control over order routing, it is designed to 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.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
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[[Page 55883]]
B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE does not believe that the proposed rule change will impose any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change is filed for immediate effectiveness
pursuant to section 19(b)(3)(A) of the Act \5\ and Rule 19b-4(f)(6)
thereunder \6\ because it effects a change that (i) does not
significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
and (iii) by its terms, does not become operative for 30 days after the
date of the filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest.\7\
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)(6).
\7\ In addition, Rule 19b-4(f)(6) under the Act requires the
self-regulatory organization to give the Commission written notice
of its 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
Commission has determined to waive the five-day prefiling period in
this case.
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CBOE has requested the Commission to waive the 30-day operative
delay because the proposal may assist investors by allowing greater
control over order routing. The Commission hereby grants the Exchange's
request and believes such waiver is consistent with the protection of
investors and the public interest. The CBSX-only order is similar to
orders currently available on other markets and does not appear to
raise any novel or significant issues.\8\ Accordingly, the Commission
designates the proposed rule change operative upon filing with the
Commission.
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\8\ For purposes only of waiving the 30-day operative delay of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. See 15
U.S.C. 78c(f).
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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 (http://www.sec.gov/rules/sro.shtml); or
Send an e-mail to [email protected]. Please include
File Number SR-CBOE-2008-97 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-2008-97. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://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 inspection
and copying in the Commission's Public Reference Room 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-2008-97 and should be submitted on or before
October 17, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-22656 Filed 9-25-08; 8:45 am]
BILLING CODE 8010-01-P