[Federal Register Volume 73, Number 166 (Tuesday, August 26, 2008)]
[Notices]
[Pages 50379-50380]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-19785]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58394; File No. SR-CBOE-2008-85]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Adopting a New Order Type
August 20, 2008.
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 August 19, 2008, the Chicago Board Options Exchange, Incorporated
(the ``Exchange'' or ``CBOE'') 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. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to modify Rule 6.53 (Certain Types of Orders
Defined) to allow for the submission of attributable orders. The text
of the proposed rule change is available on the Exchange's Web site
(http://www.cboe.org/legal), at the Office of the Secretary, CBOE and
at the Commission's Public Reference Room.
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 self-regulatory organization
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 those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to modify Rule 6.53 (Certain Types of Orders
Defined) to allow for the submission of attributable orders.\3\ These
orders allow users to voluntarily display their firm IDs on the orders.
The NASDAQ Options Market, LLC (``NOM'') currently allows its
participants to submit attributable orders (See NOM Chapter VI, Section
(1)(d)(1)). As proposed, the Exchange may limit the systems/processes
for which attributable orders will be available. For example, the
attributable order-type may initially only be available in connection
with certain Exchange auction processes like the Hybrid Agency Liaison
system which ``flashes'' marketable orders for price improvement
executions before those orders are routed to another market center
pursuant to the Options Linkage Plan. This proposal is responsive to
requests by Exchange users who believe that enhanced executions may be
obtained if firm ID information is allowed on orders (on a voluntary
basis).
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\3\ A Firm ID is a 1-4 character identification code (letters
and /or numbers). Each CBOE member firm may establish its own unique
Firm ID.
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2. Statutory Basis
Since this proposal allows for greater customization by providing
users with an additional order type, the Exchange believes that the
proposal is consistent with the Act \4\ and the rules and regulations
thereunder and, in particular, the requirements of Section 6(b) of the
Act.\5\ Specifically, the Exchange believes the proposal is consistent
with the Section 6(b)(5) \6\ requirements that the rules of an exchange
be designed to promote just and equitable principles of trade and to
remove impediments to and to perfect the mechanism for a free and open
market and a national market system.
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\4\ 15 U.S.C. 78s(b)(1).
\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
CBOE does not believe that the proposed rule change will impose any
burden on competition 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
The Exchange neither solicited nor received comments on the
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change is filed for immediate effectiveness
pursuant to Section 19(b)(3)(A) \7\ of the Act and Rule 19b-4(f)(6) \8\
thereunder because it effects a change that (i) Does not significantly
affect the protection of investors or the public interest; (ii) does
not impose any significant burden on competition; and (iii) by its
terms, does not become operative for 30 days after the date of the
filing, or such shorter time as the Commission may designate if
consistent with the protection of
[[Page 50380]]
investors and the public interest. At any time within 60 days of the
filing of the proposed rule change, the Commission may summarily
abrogate such 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).
\8\ 17 CFR 240.19b-4(f)(6).
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The proposal may assist investors by allowing participants the
benefits of attributable orders. Additionally, the Exchange provided
the Commission with written notice of its intent to file the proposal,
along with a brief description and text of the proposal, prior to the
date of the filing of the proposal.
For the foregoing reasons, this rule filing qualifies for immediate
effectiveness as a ``non-controversial'' rule change under paragraph
(f)(6) of Rule 19b-4 of the Act.
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-2008-85 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2008-85. 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, on official
business days between the hours of 10 a.m. and 3 p.m. Copies of the
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-2008-85 and should be submitted on or before
September 16, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Florence E. Harmon,
Acting Secretary.
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\9\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E8-19785 Filed 8-25-08; 8:45 am]
BILLING CODE 8010-01-P