[Federal Register Volume 74, Number 172 (Tuesday, September 8, 2009)]
[Notices]
[Page 46290]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-21583]



[[Page 46290]]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60589; File No. SR-CBOE-2009-047]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Approving a Proposed Rule Change To Permit All CBSX 
Market-Makers To Operate From the CBSX Floor Post

August 31, 2009.
    On July 2, 2009, the Chicago Board Options Exchange, Incorporated 
(``Exchange'' or ``CBOE'') 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 allow all CBSX Market-Maker 
types to operate from the Floor Post. The exchange filed Amendment No. 
1 to the proposed rule change on July 23, 2009. The proposed rule 
change, as amended, was published for comment in the Federal Register 
on July 30, 2009.\3\ The Commission received no comment letters on the 
proposed rule change. This order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 60375 (July 23, 
2009), 74 FR 38071.
---------------------------------------------------------------------------

    CBSX is an all-electronic stock marketplace operated by the 
Exchange. The CBSX Floor Post is a location on the CBOE trading floor 
where market-makers can be stationed to respond to stock price 
discovery requests from CBOE's trading floor community. The Floor Post 
is a location for price discovery only; since CBSX is an electronic 
exchange, there is no open-outcry trading permitted, and any trades 
agreed to at the Floor Post must be entered into the CBSX system in 
accordance with the applicable rules.\4\
---------------------------------------------------------------------------

    \4\ See, e.g., CBOE Rule 52.11, Facilitation of Orders and 
Crossing Trades.
---------------------------------------------------------------------------

    Currently, only members who serve as Designated Primary Market-
Makers (``DPMs'') on CBSX may operate from the CBSX Floor Post.\5\ The 
Exchange now proposes to permit all CBSX Market-Makers types to operate 
from the Floor Post. The Floor Post will continue to restrict any 
sightlines to the equity options trading posts.
---------------------------------------------------------------------------

    \5\ No CBSX DPMs are stationing personnel at the Floor Post at 
this time.
---------------------------------------------------------------------------

    After careful review, the Commission finds that the proposal is 
consistent with the Act and the rules and regulations thereunder 
applicable to a national securities exchange.\6\ In particular, the 
Commission believes that the proposal is consistent with the 
requirements of Section 6(b)(5) of the Act \7\--which requires, among 
other things, that the rules of a national securities exchange be 
designed to promote just and equitable principles of trade, to prevent 
fraudulent and manipulative acts, 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--because 
it will promote additional price discovery at the CBSX Floor Post.
---------------------------------------------------------------------------

    \6\ 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).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (SR-CBOE-2009-047) be, and it hereby is, 
approved.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-21583 Filed 9-4-09; 8:45 am]
BILLING CODE 8010-01-P