68852 Federal Register / Vol. 71, No. 228 / Tuesday, November 28, 2006 / Notices 

11 17 CFR 200.30–3(a)(12). 

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). 

5The Exchange inadvertently included a 

reference to Section 19(b)(3)(A)(i) of the Act and 

Rule 19b–4(f)(1) thereunder. Pursuant to the 

Exchange’s request, Commission staff deleted this 

language and replaced it with the language set forth 

above. Telephone call between Patrick Sexton, 

Associate General Counsel, CBOE, and Sonia 

Trocchio, Special Counsel, Division of Market 

Regulation (‘‘Division’’), on November 21, 2006. 

6The Exchange inadvertently stated that ‘‘CBOE 

proposes to increase the class quoting limit in the 

option class Research in Motion (RIMM).’’ Pursuant 

to the Exchange’s request, Commission staff deleted 

this language and replaced it with the language set 

forth above. Telephone call between Patrick Sexton, 

Associate General Counsel, CBOE, and Sonia 

Trocchio, Special Counsel, Division, on November 

21, 2006. 

7CBOE Rule 1.1(aaa) defines Hybrid Trading 

System and Hybrid 2.0 Platform. 

8RUT options currently have a non-Hybrid 

appointment cost of .45, and OEF options currently 

have a non-Hybrid appointment cost of .01. 

9 15 U.S.C. 78f(b). 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–BSE–2006–44 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–BSE–2006–44. 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. Copies of such filing also will be 

available for inspection and copying at 

the principal office of the BSE. 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–BSE–2006–44 and should 

be submitted on or before December 19, 

2006. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.11

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. E6–20132 Filed 11–27–06; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–54803; File No. SR–CBOE–

2006–97] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change to Amend CBOE Rule 8.3 

Relating to the Appointment Costs of 

Certain Classes 

November 21, 2006. 

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 November 

20, 2006, 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 and II 

below, which Items have been prepared 

by the CBOE. The Exchange filed the 

proposal as a ‘‘non-controversial’’

proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) of the Act,3 and 

Rule 19b–4(f)(6) thereunder,4 which 

renders the proposal effective upon 

filing with the Commission.5 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

CBOE proposes to amend CBOE Rule 

8.3 to allow options on the Russell 2000 

Index (RUT) to be traded on the Hybrid 

Trading System, and options on the 

iShares S&P 100 (OEF) to be traded on 

the Hybrid 2.0 Platform.6 The text of the 

proposed rule change is available on 

CBOE’s Web site (http:// 

www.cboe.com), at the CBOE’s Office of 

the Secretary, 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 

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. 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 

The purpose of this rule change is to 

amend CBOE Rule 8.3 in connection 

with CBOE’s determination to trade 

options on the Russell 2000 Index (RUT) 

on the Hybrid Trading System, and 

options on the iShares S&P 100 (OEF) 

on the Hybrid 2.0 Platform.7

Specifically, CBOE proposes to amend 

CBOE Rule 8.3(c)(iv) to delete reference 

to RUT options and OEF options in the 

table listing the non-Hybrid option 

classes and their related appointment 

costs. 

CBOE proposes to amend CBOE Rule 

8.3(c)(ii) to specifically reference RUT 

options as an option class trading on the 

Hybrid Trading System, with an 

appointment cost of .25. CBOE proposes 

to have OEF options, as an option class 

trading on the Hybrid 2.0 Platform, fall 

within the appointment cost structure 

set forth in CBOE Rule 8.3(c)(i). Based 

on its trading volume, OEF options 

initially would be included in Tier F 

with an appointment cost of .001. CBOE 

notes that these new appointment costs 

for RUT and OEF would be lower than 

their current appointment costs.8

2. Statutory Basis 

Accordingly, CBOE believes the 

proposed rule change is consistent with 

the Act and the rules and regulations 

under the Act applicable to a national 

securities exchange and, in particular, 

the requirements of Section 6(b) of the 

Act.9 Specifically, the Exchange 

believes the proposed rule change is 


ycherry on PROD1PC61 with NOTICES
Federal Register / Vol. 71, No. 228 / Tuesday, November 28, 2006 / Notices 68853 

10 15 U.S.C. 78f(b)(5). 

11 15 U.S.C. 78fs(b)(3)(A)(III). 

12 17 CFR 240.19b–4(f)(6). 

13 Id. 

14For purposes only of accelerating the operative 

date of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 

15 17 CFR 200.30–3(a)(12). 

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). 

5The Exchange has asked the Commission to 

waive the 30-day operative delay required by Rule 

19b–4(f)(6)(iii), 17 CFR 240.19b–4(f)(6)(iii). See 

discussion infra Section III. 

consistent with the Section 6(b)(5) 10

requirements that the rules of an 

exchange be designed to promote just 

and equitable principles of trade, to 

prevent fraudulent and manipulative 

acts and, in general, to protect investors 

and the public interest. 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Exchange Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither received nor 

solicited written comments on the 

proposal. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 11 and 

subparagraph (f)(6) of Rule 19b–4 12

thereunder because it does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; (iii) become operative for 

30 days from the date on which it was 

filed, or such sorter time as the 

Commission may designate; and the 

Exchange has given the Commission 

written notice of its intention to file the 

proposed rule change at least five 

business days prior to filing. 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. 

Under Rule 19b–4(f)(6) of the Act,13

the proposal does not become operative 

for 30 days after the date of its filing, or 

such shorter time as the Commission 

may designate if consistent with the 

protection of investors and the public 

interest. The Exchange has requested 

that the Commission waive the 30-day 

operative date, so that the proposal may 

take effect upon filing. The Exchange 

believes that the proposed changes to 

CBOE Rule 8.3 that facilitate CBOE’s 

determination to trade RUT options on 

the Hybrid Trading System and OEF 

options on the Hybrid 2.0 Platform raise 

no new or unique issues. CBOE has also 

noted that the proposed changes would 

lower the appointment costs for these 

options. The Commission agrees and, 

consistent with the protection of 

investors and the public interest, has 

determined to waive the 30-day 

operative date so that the proposal may 

take effect upon filing.14

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 rulecomments@sec.gov. Please include File 

Number SR–CBOE–2006–97 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–2006–97. 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. 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–2006–97 and should 

be submitted on or before December 19, 

2006. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.15

Nancy M. Morris, 

Secretary. 

[FR Doc. 06–9426 Filed 11–27–06; 8:45 am] 

BILLING CODE 8011–01–M 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–54780; File No. SR–CBOE–

2006–87] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change to Extend a Pilot Program 

Relating to CBOE’s Retail Automatic 

Execution System 

November 17, 2006. 

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 November 

3, 2006, the Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the CBOE. The Exchange filed the 

proposal as a ‘‘non-controversial’’

proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) of the Act 3 and 

Rule 19b–4(f)(6) thereunder,4 which 

renders it effective upon filing with the 

Commission.5 The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

CBOE proposes to extend a pilot 

program relating to the operation of 

CBOE’s Retail Automatic Execution 


ycherry on PROD1PC61 with NOTICES