[Federal Register Volume 70, Number 77 (Friday, April 22, 2005)]
[Notices]
[Page 20952]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1883]



[[Page 20952]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51543; File No. SR-CBOE-2005-23]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Granting Accelerated Approval to a Proposed Rule 
Change To Amend CBOE Rule 8.4 To Remove the Physical Trading Crowd 
Appointment Alternative for Remote Market-Makers and To Create an 
``A+'' Tier Consisting of the Two Most Actively-Traded Products on the 
Exchange

April 14, 2005.
    On March 15, 2005, 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 CBOE Rule 8.4(d) to 
remove the Physical Trading Crowd (``PTC'') appointment alternative for 
Remote Market-Makers (``RMMs'') and to create an ``A+'' Tier consisting 
of the two most actively-traded products on the Exchange.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change was published for comment in the Federal 
Register on March 21, 2005.\3\ The Commission received no comments on 
the proposal.
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    \3\ See Securities Exchange Act Release No. 51371 (March 15, 
2005), 70 FR 13557.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \4\ and, in 
particular, the requirements of section 6 of the Act \5\ and the rules 
and regulations thereunder. The Commission specifically finds that the 
proposed rule change is consistent with section 6(b)(5) of the Act \6\ 
in that it is designed to promote just and equitable principles of 
trade, to remove impediments and to perfect the mechanism of a free and 
open market and a national market system, and, in general, to protect 
investors and the public interest.
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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. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(5).
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    The Commission finds good cause for approving the proposed rule 
change prior to the thirtieth day after the proposal is published for 
comment in the Federal Register pursuant to section 19(b)(2) of the 
Act.\7\ The Commission believes that accelerating approval of the 
proposal is necessary to accommodate the rollout of CBOE's RMM program. 
In particular, the Commission notes that the proposal would enable CBOE 
to commence its RMM program with two of the most actively-traded 
products included, options on Standard & Poor's Depositary Receipts 
(Spiders) and options on the Nasdaq-100 Index Tracking Stock (QQQQs), 
under a new ``A+'' Tier designation. Furthermore, the Commission notes 
that the proposal would eliminate the PTC appointment option for RMMs 
and would require them to have a Virtual Trading Crowd appointment, 
which should allow them greater flexibility to choose their own 
appointments. The Commission therefore believes that accelerated 
approval of the proposed rule change is appropriate and finds that it 
is consistent with the Act.
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    \7\ 15 U.S.C. 78s(b)(2).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-CBOE-2005-23) be approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1883 Filed 4-21-05; 8:45 am]
BILLING CODE 8010-01-P