[Federal Register Volume 72, Number 188 (Friday, September 28, 2007)]
[Notices]
[Pages 55264-55265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-19162]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56494; File No. SR-CBOE-2007-110]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Its Obvious Error Rules

September 21, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on September 13, 2007, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change as described in 
Items I, II, and III below, which Items have been substantially 
prepared by the Exchange. CBOE has designated this proposal as one 
concerned solely with the administration of the Exchange under Section 
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(3) thereunder,\4\ 
which renders the proposal effective upon filing with the Commission. 
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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend CBOE Rules 6.25 and 24.16, which are 
the Exchange's rules applicable to the nullification and adjustment of 
transactions. The text of the proposed rule change is available at the 
Exchange,

[[Page 55265]]

the Commission's Public Reference Room, and http://www.cboe.com.

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 Exchange 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 these statements may be examined at the places specified in 
Item IV below. CBOE has substantially prepared summaries, set forth in 
Sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Under CBOE's obvious error rules, Trading Officials render certain 
determinations regarding the nullification and adjustment of 
transactions. The term ``Trading Officials'' is currently defined to 
mean two Exchange members designated as Floor Officials and one member 
of the Exchange's trading floor liaison (``TFL'') staff. The Exchange 
states that the purpose of the proposed rule change is to replace the 
reference to the ``TFL staff'' with a reference to the ``Exchange's 
staff designated to perform Trading Official functions.'' The Exchange 
is proposing to make the change at this time because it recently 
determined to reassign the Trading Official function from the CBOE TFL 
group to a group of designated Exchange personnel within CBOE's market 
control center. In trying to accommodate the reassignment, the Exchange 
believes a better approach than making a specific reference to a 
particular Exchange staff group is to make reference to the 
``Exchange's staff designated to perform Trading Official functions.'' 
In this way, the Exchange would have the flexibility to delegate the 
Trading Official authorities under the obvious error rules to the 
appropriate Exchange staff and would not have to make a rule change 
merely, for instance, to accommodate a future change in the title of a 
staff group or to accommodate the reassignment of the authority to 
another staff group. The Exchange believes that because the authority 
exercised by Exchange staff is delegated pursuant to Exchange rules, 
the title of the particular group exercising their authority should not 
be relevant.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \5\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act \6\ in particular, in that it 
is designed to promote just and equitable principles of trade, foster 
cooperation among persons engaged in facilitating securities 
transactions, and protect investors and the public interest. The 
Exchange believes that this proposal complies with the Act because the 
Exchange is amending its rules to update and/or generalize references 
to certain Exchange staff in order to facilitate compliance.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is 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 foregoing proposed rule change has been designated as concerned 
solely with the administration of the Exchange pursuant to Section 
19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(3) \8\ thereunder. 
Accordingly, the proposal will take effect upon filing with the 
Commission. At any time within 60 days of the filing of such proposed 
rule change, the Commission may summarily abrogate such proposed rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 17 CFR 240.19b-4(f)(3).
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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-2007-110 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-CBOE-2007-110. 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, 100 F Street, NE., 
Washington, DC 20549, 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-2007-110 and should be 
submitted on or before October 19, 2007.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-19162 Filed 9-27-07; 8:45 am]
BILLING CODE 8010-01-P