[Federal Register Volume 69, Number 234 (Tuesday, December 7, 2004)]
[Notices]
[Page 70731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3515]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50775; File No. SR-CBOE-2004-64]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Inc.; Order Approving Proposed Rule Change Relating to the Allocation 
of N-Second Group Trades Pursuant to Rule 6.45A(c)

December 1, 2004.
    On October 14, 2004, the Chicago Board Options Exchange, Inc., 
(``CBOE'' or ``Exchange'') submitted to the Securities and Exchange 
Commission (``Commission''), pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to eliminate the Designated 
Primary Market-Maker (``DPM'') participation entitlement for trades 
occurring pursuant to CBOE Rule 6.45A(c). The Commission published the 
proposed rule change for comment in the Federal Register on November 1, 
2004.\3\ The Commission received no comments on the proposed rule 
change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 50583 (October 22, 
2004), 69 FR 63418 (November 1, 2004).
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    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder that are applicable to a national 
securities exchange.\4\ In particular, the Commission believes that the 
proposed rule change is consistent with Section 6(b)(5) of the Act,\5\ 
which requires among other things, that the rules of the Exchange are 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, and, in general, to 
protect investors and the public interest. The Commission believes that 
by eliminating the DPM participation entitlement for trades occurring 
pursuant to CBOE Rule 6.45A(c), DPMs will be treated as any other 
market participant under the rule, allowing all market participants to 
be on equal footing.
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    \4\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-CBOE-2004-64) be, and it 
hereby is, approved.
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    \6\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E4-3515 Filed 12-6-04; 8:45 am]
BILLING CODE 8010-01-P