[Federal Register Volume 70, Number 61 (Thursday, March 31, 2005)]
[Notices]
[Pages 16536-16540]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1408]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51429; File No. SR-CBOE-2004-58]


Self-Regulatory Organizations; Order Granting Accelerated 
Approval to a Proposed Rule Change and Amendments No. 1 and 2 Thereto 
and Notice of Filing and Order Granting Accelerated Approval to 
Amendments No. 3 and 4 to the Proposed Rule Change by the Chicago Board 
Options Exchange, Incorporated Relating to Market-Maker Quoting 
Obligations and Market-Maker Appointments

March 24, 2005.

I. Introduction

    On August 19, 2004, the Chicago Board Options Exchange, 
Incorporated (``CBOE'' or ``Exchange'') filed with 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 amend existing CBOE rules and 
to adopt new rules governing quoting by CBOE Market-Makers (``Market-
Makers'' or ``MMs''). On February 2, 2005, CBOE filed Amendment No. 1 
to the proposed rule change.\3\ On February 17, 2005, CBOE filed 
Amendment No. 2 to the proposed rule change.\4\ The proposed rule 
change and Amendments No. 1 and 2 were published for comment in the 
Federal Register on March 1, 2005.\5\ The Commission received no 
comments on the proposal. On March 18, 2005, CBOE filed Amendment No. 3 
to the proposed rule change.\6\ On March 23, 2005, CBOE filed Amendment 
No. 4 to the proposed rule change.\7\ This order approves the proposed 
rule change and Amendments No. 1 and 2 on an accelerated basis, and 
publishes notice of and grants accelerated approval to Amendments No. 3 
and 4 thereto.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 replaced and superceded CBOE's original 19b-
4 filing in its entirety.
    \4\ Amendment No. 2 replaced and superceded CBOE's original 19b-
4 filing and Amendment No. 1 in their entirety.
    \5\ See Securities Exchange Act Release No. 51234 (February 22, 
2005), 70 FR 10006 (``Notice'').
    \6\ In Amendment No. 3, CBOE proposes to (1) amend the reference 
date contained in CBOE Rule 8.3A from January 6 to March 18, 2005, 
(2) adopt on a one-year pilot basis that portion of proposed CBOE 
Rule 8.3(c) governing a MM's ability to quote from a location 
outside of his/her trading station, (3) adopt procedures governing 
``temporary appointments'' during the rollout of its Initial Remote 
Market-Market (``RMM'') Appointment Process (``IRAP''), and (4) 
incorporate changes to the rule language as a result of the approval 
of a corresponding CBOE rule filing relating to RMMs. See Securities 
Exchange Act Release No. 51366 (March 14, 2005), 70 FR 13217 (March 
18, 2005) (order approving ``RMM filing''). The text of Amendment 
No. 3 is available on CBOE's Web site (http://www.cboe.com), at the 
CBOE's Office of the Secretary, and at the Commission's Public 
Reference Room.
    \7\ In Amendment No. 4, CBOE proposes to amend CBOE Rule 8.3(c) 
to codify that any MM affiliated with an RMM would be prohibited 
from submitting electronic quotations from outside of its appointed 
trading station in any class in which the affiliated RMM has an 
appointment. This prohibition was specifically published for comment 
in the Notice. See Notice, supra note 5, at footnote 13 (``* * * See 
also proposed CBOE Rule 8.4(c)(i) in the Exchange's proposed RMM 
filing. The same prohibition would apply to MMs affiliated with RMMs 
and is contingent upon SEC approval of the Exchange's RMM filing * * 
*''). The text of Amendment No. 4 is available on CBOE's Web site 
(http://www.cboe.com), at the CBOE's Office of the Secretary, and at 
the Commission's Public Reference Room.
---------------------------------------------------------------------------

II. Discussion

    CBOE's Hybrid Trading System merges the electronic and open outcry 
trading models, offering market participants the ability to stream 
electronically their own firm disseminated market quotes representing 
their trading interest. On July 12, 2004, the Commission approved a 
CBOE proposal to add a new category of market participant called ``e-
DPMs,'' who function as remote competing specialists in their allocated 
securities. By contrast, regular Designated Primary Market-Makers 
(``DPMs'') and MMs on CBOE are required to operate from

[[Page 16537]]

within their appointed trading station.\8\ Under the current proposal, 
CBOE proposes to grant its MMs the ability to stream quotes from 
locations other than their appointed trading stations.\9\ Accordingly, 
CBOE proposes to amend its rules governing the MM appointment process 
(CBOE Rule 8.3) and MM quoting obligations (CBOE Rule 8.7).
---------------------------------------------------------------------------

    \8\ The current Hybrid rules allow MMs on CBOE to stream 
electronic quotes only when they are physically present in their 
appointed trading stations.
    \9\ For example, rather than ``calling in sick'' to work and 
thereby relinquishing the ability to quote altogether, a MM would be 
able to stream quotes from his/her home office. This proposal, as 
amended, only allows current MMs to quote remotely (i.e., from 
outside of their appointed trading stations) on a one-year pilot 
basis. See proposed CBOE Rule 8.3(c). See also CBOE Rule 8.4 and RMM 
filing for rules governing Remote Market-Makers.
---------------------------------------------------------------------------

    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange 
\10\ and, in particular, the requirements of Section 6 of the Act \11\ 
and the rules and regulations thereunder. The Commission specifically 
finds that the proposed rule change, as amended, is consistent with 
Section 6(b)(5) of the Act \12\ in that it is designed to promote just 
and equitable principles of trade, 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.
---------------------------------------------------------------------------

    \10\ In approving this proposed rule change, as amended, the 
Commission has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \11\ 15 U.S.C. 78f.
    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

A. Market-Maker Appointments

    Currently, a MM's appointment consists of all classes traded at a 
particular trading station, regardless of the number of classes 
actually trading at that station and regardless of whether the MM owns 
or leases a membership. In addition, CBOE Rule 8.3(c) currently 
provides that MMs may have appointments in up to ten trading stations 
on the floor. The Exchange proposes to amend these requirements in 
several respects.
    As proposed, a MM's appointment would confer the right to quote in 
open outcry all classes traded on the Exchange, regardless of the 
trading station at which they are located.\13\ A MM's appointment would 
also confer the right to quote electronically in all Hybrid classes 
traded on the Hybrid Trading System that are located in one designated/
appointed trading station, and, with respect to Hybrid 2.0 Classes (as 
defined in CBOE Rule 1.1(aaa)), the ability to submit electronic 
quotations in up to 40 classes for each Exchange membership it owns or 
up to 30 classes for each Exchange membership it leases, all of which 
must be located in the MM's one appointed trading station.\14\ However, 
a MM affiliated with an e-DPM or an RMM would be prohibited from 
submitting electronic quotations from outside of its appointed trading 
station in any class in which the affiliated e-DPM or affiliated RMM 
has an appointment.\15\
---------------------------------------------------------------------------

    \13\ For margin purposes, these transactions would qualify as MM 
transactions.
    \14\ If a trading station consists of fewer than 40 (30) Hybrid 
2.0 Classes, each MM that owns (leases) a membership would be 
eligible to submit electronic quotations in each of the Hybrid 2.0 
Classes at that trading station, in accordance with the requirements 
of CBOE Rule 8.3A. In addition, Amendment No. 3 places MMs ability 
to quote electronically in his/her appointed Hybrid and Hybrid 2.0 
classes from a location outside of his/her appointed trading station 
on a one-year pilot. See proposed CBOE Rule 8.3(c).
    \15\ See CBOE Rules 8.93(vii) and 8.4(c)(ii). See also Amendment 
No. 4.
---------------------------------------------------------------------------

    Under the proposal, a MM that trades in open outcry away from his/
her appointed trading station would be restricted to open outcry 
trading only for classes at that trading station and would not be 
eligible to quote electronically in those classes until such time that 
the MM notifies the Exchange of his/her request to change his/her 
appointment and such request is approved in accordance with CBOE's 
rules. On any day a MM trades in open outcry outside of his/her 
appointed trading station, that MM may be required to undertake market-
making obligations in those classes in which the MM trades in open 
outcry at the request of the Order Book Official.\16\
---------------------------------------------------------------------------

    \16\ See CBOE Rule 8.7(c), discussed infra.
---------------------------------------------------------------------------

    The proposal limits a MM's appointments to the classes located at 
one trading station. In Hybrid, MMs currently may only stream quotes 
where they are physically present in the trading crowd, which in 
essence already creates a ``one trading station'' appointment.\17\ As 
is the case today, MMs would continue to be able to leave one trading 
station and trade in another trading station; however, they would be 
required to notify the Exchange prior to switching trading stations and 
request an appointment in the classes located at a new trading station, 
which would be granted on a space-available basis (as described in more 
detail in CBOE Rule 8.3A). A MM's ability to trade in non-appointed 
classes would be limited to submitting orders for automatic execution 
pursuant to CBOE Rules 6.8 or 6.13.\18\
---------------------------------------------------------------------------

    \17\ The Exchange represents that it is gradually transferring 
all equity classes to the Hybrid Trading System and anticipates 
having all such classes on Hybrid within the first quarter of 2005.
    \18\ As part of its appointment, a MM may trade in open outcry 
all classes located on the Exchange. See proposed CBOE Rule 
8.7(b)(iii) for the permissible methods by which MMs may submit 
quotes and orders in appointed and non-appointed classes. CBOE Rule 
6.8 applies to non-Hybrid classes, while CBOE Rule 6.13 applies to 
Hybrid classes.
---------------------------------------------------------------------------

    Proposed CBOE Rule 8.3(c) provides that a MM would be presumed to 
have an appointment in all non-Hybrid 2.0 classes located at his/her 
appointed trading station unless the MM specifically indicates to the 
Exchange that he/she does not want to include a particular class(es) as 
part of his/her appointment (``excluded classes'').\19\ When a MM 
excludes a class, the Exchange would be able to provide an appointment 
in that excluded class to a MM that does not currently trade that class 
but who has an interest in doing so. A MM is not eligible to submit 
electronic quotations into any class it designates as an excluded 
class. Any request by a MM to receive a subsequent appointment in a 
previously excluded class would be handled in accordance with CBOE Rule 
8.3A.
---------------------------------------------------------------------------

    \19\ Because MMs must specifically designate which Hybrid 2.0 
Classes they would trade as part of their appointment, there is no 
need to have them designate which Hybrid 2.0 Classes they would not 
trade.
---------------------------------------------------------------------------

    The Commission believes that the proposed amendments to CBOE Rule 
8.3 to allow MMs the ability to stream quotes electronically from 
remote locations outside of a MM's appointed trading station are 
consistent with the Act.

B. Market-Maker Quoting Obligations

    The Exchange proposes several changes to CBOE Rule 8.7 to 
accommodate MMs quoting from outside of their appointed trading 
stations. The Exchange proposes to revise CBOE Rule 8.7(b)(i) to 
obligate MMs to compete with other MMs to improve markets in all series 
of options classes comprising the MM's appointment, whether trading 
electronically or in person. In addition, the Exchange proposes to 
amend CBOE Rule 8.7(b)(iii) in two primary respects. The first change 
proposes to obligate a MM to update quotes in his/her appointed classes 
at the trading station where the MM quotes, whether in person or 
electronically. The second change is designed to clarify the 
permissible methods by which a MM may submit quotes and orders in both 
appointed and non-appointed classes. Specifically, proposed CBOE Rule 
8.7(b)(iii)(A) provides that, with respect

[[Page 16538]]

to trading in appointed classes: (1) MMs who are physically present in 
their appointed trading station may enter quotes and orders in their 
appointed classes by public outcry in response to a request for a quote 
or, in classes in which Hybrid or Hybrid 2.0 is implemented, through an 
Exchange-approved electronic interface via an Exchange-approved quote 
generation device; (2) MMs may also enter quotes and orders in their 
appointed Hybrid and Hybrid 2.0 classes from outside of their appointed 
trading stations (pursuant to CBOE Rule 8.3) through an Exchange-
approved electronic interface via an Exchange-approved quote generation 
device; and (3) MMs, whether physically present in their appointed 
trading stations or not, may also submit orders for automatic execution 
in accordance with the requirements of CBOE Rules 6.8 or 6.13. Proposed 
CBOE Rule 8.7(b)(iii)(B) provides that, with respect to trading in non-
appointed classes, MMs may submit orders for automatic execution in 
accordance with the requirements of CBOE Rules 6.8 or 6.13.\20\
---------------------------------------------------------------------------

    \20\ In this regard, CBOE Rule 8.3 also would prohibit a MM from 
quoting electronically into a non-appointed class.
---------------------------------------------------------------------------

    The Exchange also proposes changes to CBOE Rule 8.7(c) to ensure 
that a MM who trades in classes located outside of his appointed 
trading station would be required to fulfill all obligations imposed by 
CBOE Rule 8.7(b) and, for the rest of the trading day, the MM may be 
called back to that station to make markets in open outcry in the 
classes in which he/she traded.
    Current CBOE Rule 8.7(d) governs market-making obligations in 
Hybrid classes. Generally, the extent of a MM's obligations is dictated 
by the amount of volume a MM transacts electronically. The Exchange 
intends to retain CBOE Rule 8.7(d)(i) \21\ and to amend CBOE Rule 
8.7(d)(ii). As amended, MMs that transact more than 20% of their volume 
electronically would be obligated to comply with the bid-ask width 
requirements of CBOE Rule 8.7(b)(iv),\22\ maintain continuous quotes 
for at least ten contracts in 60% of the series of his/her appointed 
classes,\23\ and respond to all open outcry requests for quotes with a 
ten-up, legal width market.\24\ Proposed for elimination is the tiered 
continuous quoting requirement that is dependent upon the amount of 
volume transacted electronically on the Exchange. CBOE believes an 
across-the-board 60% quoting requirement is simpler and more effective.
---------------------------------------------------------------------------

    \21\ CBOE Rule 8.7(d)(i) applies to MMs that transact less than 
20% of their contract volume electronically.
    \22\ Bid-ask width requirements are currently $5 except during 
the opening rotation.
    \23\ A MM's undecremented quote must be for ten contracts unless 
the underlying market disseminates a 1-up market, in which case MMs 
who have automated the process may similarly quote 1-up. This ``1-
up'' pilot program is scheduled to expire on August 17, 2005. See 
CBOE Rules 8.7(d)(i)(B) and (d)(ii)(B).
    \24\ Only MMs physically present in a trading station would have 
the ability to provide markets in open outcry.
---------------------------------------------------------------------------

    The Exchange also proposes changes to Interpretations and Policies 
.03 to CBOE Rule 8.7. All MMs would still be required to comply with 
CBOE Rule 8.7.03(A), which requires 75% of a MM's volume to be in his/
her appointed classes. The Exchange intends to retain the in-person 
requirement contained in current paragraph (B), but limit its 
application to non-Hybrid classes. Because MMs would have the ability 
to quote from outside of their appointed trading stations, CBOE 
believes that an in-person requirement no longer makes sense.\25\ The 
Exchange further proposes changes to Interpretations and Policies .09 
to CBOE Rule 8.7 to clarify the applicability of the rule to a MM 
electronically quoting outside of his/her appointed trading station in 
accordance with proposed CBOE Rule 8.3(c).
---------------------------------------------------------------------------

    \25\ A MM's ability to quote electronically from outside of its 
appointed trading station is limited to appointed Hybrid and Hybrid 
2.0 classes, as described and proposed in CBOE Rule 8.3(c).
---------------------------------------------------------------------------

    The Commission believes that the proposed changes to MM quoting 
obligations are appropriate to accommodate MMs' ability to 
electronically stream quotes in their appointed Hybrid classes and 
appointed Hybrid 2.0 classes from outside of their appointed trading 
stations. As such, the Commission finds the changes to CBOE Rule 8.7 
relating to MM obligations to be consistent with the Act.

C. Amendments No. 3 and 4 to the Proposed Rule Change

    Amendment No. 3 to the proposed rule change (1) amends the 
reference date contained in CBOE Rule 8.3A, (2) adopts on a one-year 
pilot basis that portion of proposed CBOE Rule 8.3(c) governing a MM's 
ability to quote electronically from outside his/her appointed trading 
station, (3) adopts procedures governing ``temporary appointments,'' 
and (4) incorporates changes to rule language as a result of the 
approval of CBOE's RMM filing.\26\
---------------------------------------------------------------------------

    \26\ See RMM filing, supra note 6.
---------------------------------------------------------------------------

1. Changing the Grandfather Date From January 6 to March 18, 2005
    CBOE Rule 8.3A establishes procedures for determining the maximum 
number of market participants that may quote electronically in a given 
class. As part of those procedures, the Exchange has used a January 6, 
2005 ``grandfather'' date for the purpose of determining who will be 
entitled to quote electronically. The Exchange proposes to amend this 
rule to substitute March 18, 2005, as the new ``grandfather'' date.\27\ 
Using a later date allows the Exchange to ensure that members would be 
``grandfathered'' into the crowds in which they are quoting as of a 
date that is more close to the actual rollout of its RMM program.\28\
---------------------------------------------------------------------------

    \27\ The practical effect of this rule is to ensure that the 
DPMs, all MMs, and all e-DPMs would be guaranteed the ability to 
quote electronically in products trading at their primary trading 
stations as of March 18, 2005. CBOE represents that there were no 
products as of this date for which the number of members quoting 
electronically exceeded the Class Quoting Limit (``CQL'') for that 
product.
    \28\ The Exchange made a similar change in Amendment No. 2 to 
the RMM filing when it ``pushed back'' the previous ``grandfather'' 
date from December to January 6, 2005. See RMM filing, supra note 6, 
for a more detailed description of the RMM program.
---------------------------------------------------------------------------

2. Adoption of CBOE Rule 8.3(c) on Pilot Basis
    One of the proposed changes to CBOE Rule 8.3(c) would allow a MM to 
submit electronic quotations from a location outside of the appointed 
trading station in his/her appointed Hybrid classes and his/her 
appointed Hybrid 2.0 Classes. The Exchange proposes to further amend 
this aspect of the rule such that it is on a one-year pilot basis. As 
part of a pilot program, the Exchange would have the ability to 
evaluate this provision's effectiveness. At the end of the one-year 
period, based upon the conclusions reached, the Exchange could propose 
to extend the pilot or request permanent approval, in which case it 
would need to submit a rule filing pursuant to Section 19 of the Act 
and receive Commission approval. Alternatively, the Exchange could 
determine to allow this provision to lapse, in which case MMs no longer 
would have the ability to quote from outside of their appointed trading 
stations.
3. ``Temporary Appointments''
    The Exchange proposes to adopt procedures governing the ability of 
MMs to change their appointed trading stations from the period between 
the ``grandfather'' date (described above) and the end of the IRAP. The 
IRAP is the process by which Exchange will grant appointments to RMMs 
and it will work on a time priority basis. The Exchange expects the 
process to begin the week of April 18, 2005 and to be finalized by 
April 22, 2005.

[[Page 16539]]

    In this regard, the purpose of these procedures is to enable the 
Exchange to know with certainty the number of electronic appointments 
that will be available in each product during the IRAP. If MMs that 
receive ``grandfathered'' appointments were able to change their 
trading stations, it would be extremely difficult for the Exchange to 
know with certainty how many electronic appointments were available on 
a per product basis. For this reason, the Exchange proposes that, for 
the limited period from March 21, 2005, through the end of the IRAP, 
MMs would be able to switch trading stations, albeit on a temporary 
basis, as described below.
    Under proposed Interpretations and Policies .02 to CBOE Rule 8.3A 
(``Temporary Appointments'' for the Period from March 21, 2005 through 
the end of the Initial RMM Appointment Process), the following 
procedures would apply to MMs' requests to change their appointed 
trading stations during the period commencing March 21, 2005, and 
lasting until the end of the IRAP.
    1. Beginning March 21, 2005, until the termination of the IRAP, all 
MM requests to change their appointed trading stations would be granted 
on a temporary basis (``temporary appointment''), provided the CQL for 
the requisite product has not been met (i.e., on a space-available 
basis, as described in Rule 8.3A.01). Each temporary appointment 
terminates at 3:15 p.m. (CT) on the last day of the IRAP, at which 
point all MMs' appointed trading stations would revert to the appointed 
trading station the MM held on March 18, 2005.
    2. In order to receive a permanent appointment in a product in 
which a MM previously held a temporary appointment, a MM must 
participate in the IRAP and be allocated such product.
    3. Upon termination of the IRAP, all MM (including RMM) requests 
for appointments and/or appointed trading stations would be handled 
subject to the requirements of Rule 8.3A (Class Quoting Limits) and in 
accordance with the appointment procedures of Rules 8.3 (MM 
appointments) and 8.4 (RMM appointments), as applicable.
    Amendment No. 4 to the proposed rule change proposes to amend CBOE 
Rule 8.3(c) to codify that any MM affiliated with an RMM would be 
prohibited from submitting electronic quotations from outside of its 
appointed trading station in any class in which the affiliated RMM has 
an appointment.\29\
---------------------------------------------------------------------------

    \29\ See supra note 7.
---------------------------------------------------------------------------

    The Commission believes that the proposed changes in Amendment No. 
3 are necessary and appropriate to allow the Exchange to commence its 
IRAP knowing exactly how many electronic quoting appointments would be 
available in each of the products included in the RMM program based on 
the number of grandfathered MM appointments in particular classes. This 
certainty would enable the appointment process to operate efficiently 
and expediently. In addition, the Commission believes that placing that 
portion of proposed CBOE Rule 8.3(c) governing MMs' ability to stream 
electronic quotes from locations outside of their appointed trading 
stations on a one-year pilot should allow the Exchange ample 
opportunity to evaluate the effectiveness such pilot. Furthermore, the 
Commission notes that the proposed amendment to CBOE Rule 8.3(c) in 
Amendment No. 4 simply incorporates into the proposed rule a 
prohibition against a MM affiliated with an RMM from streaming 
electronic quotes from outside of his/her appointed trading station 
into any class in which the affiliated RMM has an appointment.\30\ As a 
result, the Commission finds that Amendments No. 3 and 4 are consistent 
with the Act.
---------------------------------------------------------------------------

    \30\ The Commission notes that this prohibition was specifically 
published for comment in the Notice. See supra note 5.
---------------------------------------------------------------------------

D. Accelerated Approval of the Proposed Rule Change and Amendments No. 
1, 2, 3 and 4

    The Commission finds good cause for approving the proposed rule 
change and Amendments No. 1, 2, 3, and 4 thereto prior to the thirtieth 
day after the amendment is published for comment in the Federal 
Register pursuant to Section 19(b)(2) of the Act.\31\ The Commission 
believes that accelerating approval of the proposal, as amended, is 
necessary to the proper operation of the CBOE's Hybrid Trading System 
and Hybrid 2.0 Platform because it would allow MMs to quote 
electronically from outside of their appointed trading stations at 
approximately the same time that CBOE begins the rollout of its RMM 
program, and would allow CBOE to commence its IRAP with a better 
understanding of how many electronic appointments would be available in 
products included in the RMM program. The Commission therefore believes 
that accelerated approval of the proposed rule change and Amendments 
No. 1, 2, 3, and 4 is appropriate, and finds that it is consistent with 
the Act.
---------------------------------------------------------------------------

    \31\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether Amendments No. 3 
and 4 to the proposed rule change are 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-2004-58 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-CBOE-2004-58. 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 Section, 450 Fifth 
Street, NW., Washington, DC 20549. Copies of such filing also will be 
available for inspection and copying at the principal office of the 
CBOE. 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-2004-58 and should be submitted on or before April 21, 2005.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\32\ that the
---------------------------------------------------------------------------

    \32\ 15 U.S.C. 78s(b)(2).

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

[[Page 16540]]

proposed rule change (SR-CBOE-2004-58), as amended, be approved on an 
---------------------------------------------------------------------------
accelerated basis.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\33\
---------------------------------------------------------------------------

    \33\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5-1408 Filed 3-30-05; 8:45 am]
BILLING CODE 8010-01-P