[Federal Register Volume 70, Number 162 (Tuesday, August 23, 2005)]
[Notices]
[Page 49342]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-4583]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52252; File No. SR-CBOE-2005-17]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Approving Proposed Rule Change To Adopt a Revenue 
Sharing Program for Trades in Tape B Securities

August 15, 2005.
    On February 7, 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 adopt a Revenue Sharing 
Program for trades in Tape B securities.\3\ The proposed rule change 
was published for comment in the Federal Register on July 15, 2005.\4\ 
The Commission received no comments on the proposal. This order 
approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Tape B securities are securities listed on the American 
Stock Exchange or the regional national securities exchanges.
    \4\ See Securities Exchange Act Release No. 52005 (July 11, 
2005), 70 FR 41063.
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    The Commission finds CBOE's proposal to amend its Fee Schedule to 
adopt a Revenue Sharing Program for revenue CBOE receives under the 
Consolidated Tape Association Plan for trades in Tape B securities 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange.\5\ 
In particular, the Commission believes that the proposal is consistent 
with Section 6(b)(5) of the Act,\6\ which requires that the rules of 
the exchange be designed to promote just and equitable principles of 
trade, to foster cooperation and coordination with persons engaged in 
regulating transactions in securities, and to remove impediments to and 
perfect the mechanisms of a free and open market and a national market 
system. The Commission notes that CBOE will begin its Revenue Sharing 
Program upon the launch of its new stock trading platform.\7\
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    \5\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ The CBOE has filed a proposed rule change (SR-CBOE-2004-21) 
to adopt a new set of rules to allow for the trading of non-option 
securities on CBOEdirect, the exchange's screen based trading 
system.
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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-2005-17) be, and it 
hereby is, 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. E5-4583 Filed 8-22-05; 8:45 am]
BILLING CODE 8010-01-P