[Federal Register Volume 75, Number 109 (Tuesday, June 8, 2010)]
[Notices]
[Pages 32523-32525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-13663]



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SECURITIES AND EXCHANGE COMMISSION



[Release No. 34-62204; File No. SR-CBOE-2010-049]




Self-Regulatory Organizations; Chicago Board Options Exchange, 

Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 

Rule Change Related to Eligible Order Types



June 2, 2010.

    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 

(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 

that on May 25, 2010, the Chicago Board Options Exchange, Incorporated 

(``Exchange'' or ``CBOE'') filed with the Securities and Exchange 

Commission (the ``Commission'') the proposed rule change as described 

in Items I, II, and III below, which Items have been prepared by the 

Exchange. The Exchange filed the proposal as a ``non-controversial'' 

proposed rule change pursuant to Section 19(b)(3)(A)(iii) of



[[Page 32524]]



the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ 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)(6).

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I. Self-Regulatory Organization's Statement of the Terms of Substance 

of the Proposed Rule Change



    The Exchange is proposing to amend its rules to clarify the 

applicability of various order types on the Exchange. The text of the 

proposed rule change is available on the Exchange's Web site (http://www.cboe.org/Legal), at the Exchange's Office of the Secretary and at 

the Commission.



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 the 

Statutory Basis for, the Proposed Rule Change



1. Purpose

    The Exchange proposes to modify Rule 6.53, Certain Types of Orders 

Defined, to clarify that one or more of the various order types may be 

made available on a class-by-class basis.\5\ The proposed text would 

also clarify that certain order types may not be made available for all 

Exchange systems. The classes and/or systems for which the order types 

shall be available will be as provided in the Rules, as the context may 

indicate, or as otherwise specified via Regulatory Circular generally 

at least one day in advance.

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    \5\ Rule 6.53 sets out definitions for the following order 

types: market order; limit order; contingency order (market-if-

touched order, market-on-close order, stop (stop-loss) order, stop-

limit order); spread order; combination order; straddle order; not 

held order; one-cancels-the-other order; all-or-none order; fill-or-

kill order; immediate-or-cancel order; opening rotation order; 

facilitation order; ratio order; attributable order; intermarket 

sweep order; AIM sweep order; sweep and AIM order; CBOE-only order; 

and reserve order.

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    The proposed rule change provides additional clarity and 

consistency in our rules, which already provide in various places that 

the Exchange may designate the eligible order types on a class-by-class 

basis for various systems/processes. For example, the proposed change 

is consistent with Rules 6.13A, Simple Auction Liaison (SAL), 6.14A, 

Hybrid Agency Liaison 2 (HAL2), and 6.53C(d), Process for Complex Order 

RFR Auction (``COA''), which provide that the Exchange, among other 

things, shall designate the eligible order types and classes in which 

SAL, HAL2 or COA will be activated. As another example, Rule 6.53(o), 

Attributable Order, provides that attributable orders may not be 

available for all Exchange systems and the Exchange will issue a 

Regulatory Circular specifying the systems for which the attributable 

order type shall be available.

2. Statutory Basis

    The basis under the Act for this proposed rule change is the 

requirement under Section 6(b)(5) \6\ that an exchange have rules that 

are designed to promote just and equitable principles of trade, and to 

remove impediments to and perfect the mechanism for a free and open 

market and a national market system, and, in general, to protect 

investors and the public interest. In particular, the Exchange believes 

the proposed change would provide more clarity on the applicability of 

eligible order types in a manner that is consistent with other 

provisions in the existing CBOE rules.

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    \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



    Because the foregoing rule does not (i) Significantly affect the 

protection of investors or the public interest; (ii) impose any 

significant burden on competition; and (iii) become operative for 30 

days from the date on which it was filed, or such shorter time as the 

Commission may designate if consistent with the protection of investors 

and the public interest, provided that the self-regulatory organization 

has given the Commission written notice of its intent to file the 

proposed rule change at least five business days prior to the date of 

filing of the proposed rule change or such shorter time as designated 

by the Commission,\7\ the proposed rule change has become effective 

pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) 

thereunder.\9\ At any time within 60 days of the filing of such 

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\ The Exchange has fulfilled the five day prefiling 

requirement.

    \8\ 15 U.S.C. 78s(b)(3)(A).

    \9\ 17 CFR 240.19b-4(f)(6).

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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-2010-049 on the subject line.



Paper Comments



     Send paper comments in triplicate to Elizabeth M. Murphy, 

Secretary, Securities and Exchange Commission, 100 F Street, NE., 

Washington, DC 20549-1090.



All submissions should refer to File Number SR-CBOE-2010-049. 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



[[Page 32525]]



provisions of 5 U.S.C. 552, will be available for Web site viewing and 

printing 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 pm. Copies of such filing also will be available for 

inspection and copying at the principal office of the CBOE. 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-2010-049 and 

should be submitted on or before June 29, 2010.



    For the Commission, by the Division of Trading and Markets, 

pursuant to delegated authority.\10\

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    \10\ 17 CFR 200.30-3(a)(12).

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Florence E. Harmon,

Deputy Secretary.

[FR Doc. 2010-13663 Filed 6-7-10; 8:45 am]

BILLING CODE 8010-01-P