70810 Federal Register / Vol. 71, No. 234 / Wednesday, December 6, 2006 / Notices 

35 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 54631 

(October 20, 2006), 71 FR 63057. 

4 In approving this proposed rule change, the 

Commission notes that it has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

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

6 15 U.S.C. 78f(b)(1) and 78f(b)(6). 

7 15 U.S.C. 78f(b)(7) and 78f(d)(1). 

8 17 CFR 240.19d–1(c)(2). 

9 15 U.S.C. 78s(b)(2). 

10 17 CFR 240.19d–1(c)(2). 

11 17 CFR 200.30–3(a)(12); 17 CFR 200.30–

3(a)(44). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3Amendment No. 1 replaces and supersedes the 

original filing in its entirety. 

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–Amex–2006–82 and should 

be submitted on or before December 27, 

2006. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act, that the 

proposed rule change (SR–Amex–2006–

82), as amended by Amendments No. 1 

and 2, be, and it hereby is, approved on 

an accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.35

Nancy M. Morris, 

Secretary. 

[FR Doc. E6–20657 Filed 12–5–06; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–54827; File No. SR–CBOE–

2006–81] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Order Approving 

Proposed Rule Change, as Modified by 

Amendment No. 1 Thereto, Relating to 

Minor Rule Violations in Connection 

With Trade Reporting 

November 29, 2006. 

On October 4, 2006, the Chicago 

Board Options Exchange, Incorporated 

(‘‘CBOE’’ or ‘‘Exchange’’) 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 

amend CBOE Rule 17.50, ‘‘Imposition of 

Fines for Minor Rule Violations,’’ (the 

‘‘MRVP’’), particularly the provisions of 

CBOE Rule 17.50(g)(4), in order to: (a) 

Increase the fines for failures to submit 

trade information in accordance with 

CBOE Rule 6.51, and (b) extend the 

‘‘look-back’’ period for assessing such 

rule violations. On October 17, 2006, the 

Exchange filed Amendment No. 1 to the 

proposed rule change. The proposed 

rule change, as amended, was published 

for comment in the Federal Register on 

October 27, 2006.3 The Commission 

received no comments regarding the 

proposal. 

The Commission finds that the 

proposal is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange.4 In 

particular, the Commission believes that 

the proposal is consistent with Section 

6(b)(5) of the Act,5 because a proposed 

rule change that is reasonably designed 

to require Exchange members to comply 

with its trade reporting rules should 

help protect investors and the public 

interest. 

The Commission also believes that 

handling violations of trade reporting 

rules pursuant to the MRVP is 

consistent with Sections 6(b)(1) and 

6(b)(6) of the Act,6 which require that 

the rules of an exchange enforce 

compliance with, and provide 

appropriate discipline for, violations of 

Commission and Exchange rules. In 

addition, because existing CBOE Rule 

17.50 provides procedural rights to a 

person fined under the MRVP to contest 

the fine and permits a hearing on the 

matter, the Commission believes that 

the MRVP, as amended by this proposal, 

provides a fair procedure for the 

disciplining of members and persons 

associated with members, consistent 

with Sections 6(b)(7) and 6(d)(1) of the 

Act.7

Finally, the Commission finds that the 

proposal is consistent with the public 

interest, the protection of investors, or 

otherwise in furtherance of the purposes 

of the Act, as required by Rule 19d–

1(c)(2) under the Act,8 which governs 

minor rule violation plans. The 

Commission believes that the proposed 

change to the MRVP should strengthen 

the Exchange’s ability to carry out its 

oversight and enforcement 

responsibilities as a self-regulatory 

organization in cases where full 

disciplinary proceedings are unsuitable 

in view of the minor nature of the 

particular violation. 

In approving this proposed rule 

change, the Commission in no way 

minimizes the importance of 

compliance with CBOE rules and all 

other rules subject to the imposition of 

fines under the MRVP. The Commission 

believes that the violation of any selfregulatory organization’s rules, as well 

as Commission rules, is a serious matter. 

However, the MRVP provides a 

reasonable means of addressing rule 

violations that do not rise to the level of 

requiring formal disciplinary 

proceedings, while providing greater 

flexibility in handling certain violations. 

The Commission expects that CBOE will 

continue to conduct surveillance with 

due diligence and make a determination 

based on its findings, on a case-by-case 

basis, whether a fine of more or less 

than the recommended amount is 

appropriate for a violation under the 

MRVP or whether a violation requires 

formal disciplinary action under CBOE 

Rules 17.1–17.10. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act 9 and Rule 

19d–1(c)(2) under the Act,10 that the 

proposed rule change (SR–CBOE–2006–

81), as amended, be, and hereby is, 

approved and declared effective. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.11

Nancy M. Morris, 

Secretary. 

[FR Doc. 06–9544 Filed 12–5–06; 8:45am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–54823; File No. SR–CBOE–

2005–111] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing of a 

Proposed Rule Change and 

Amendment No. 1 Thereto Relating to 

Multiple Representation Exception 

Procedures 

November 28, 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 December 

16, 2005, 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 

prepared by the CBOE. On October 17, 

2006, the Exchange filed Amendment 

No. 1 to the proposed rule change.3 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 


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