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###### Securities and Exchange Commission

          - [Release No. 34-58262; File No. SR-CBOE-2008-74]

                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act” or Exchange Act) [1]                                          and Rule 19b-4 thereunder,[2]                                          notice is hereby given that on July 24, 2008, Chicago Board Options Exchange, Incorporated (“CBOE” or the “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 substantially prepared by CBOE. CBOE has designated the proposed rule change as “constituting a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule” under Section 19(b)(3)(A)(i) of the Act [3]                                          and Rule 19b-4(f)(1) thereunder,[4]                                          which renders the proposal effective upon receipt of this filing by the Commission. 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 Rules 12.4—                    *Portfolio Margin*, and 15.8A—                    *Risk Analysis of Portfolio Margin Accounts*. 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'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, CBOE 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. CBOE has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects 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's customer portfolio margining program, as previously approved by the Commission, allows broker-dealers, for eligible securities, to compute customer margin requirements based on a portfolio margining methodology. The program is codified in CBOE Rules 9.15(c)—                    *Delivery of Current Options Disclosure Documents*, 12.4—                    *Portfolio Margin*, 13.5—                    *Customer Portfolio Margin Accounts*, and 15.8A—                    *Risk Analysis of Portfolio Margin Accounts*.                

                    The Exchange proposes to amend Rules 12.4 and 15.8A to add certain                           ( print page 46106)                        provisions to those rules that are currently included in the “Frequently Asked Questions” regarding portfolio margin requirements published by the New York Stock Exchange.[5]                                          Specifically, the Exchange proposes to amend Rule 12.4(i)(5) to specify that a portfolio margin account has three days to meet a requisite margin call incurred as a result of a day trade. The Exchange proposes to amend Rule 15.8A(c) to specify that a member organization shall monitor the credit exposure resulting from concentrated positions within both individual portfolio margin accounts and across all portfolio margin accounts.[6]                                          The effective date of the proposed rule change shall be August 1, 2008.                

#### 2. Statutory Basis

                    Because the proposed rule change codifies previously issued SRO guidance regarding portfolio margining, the Exchange believes the proposed rule change is consistent with Section 6(b) of the Exchange,[7]                                          in general, and furthers the objectives of Section 6(b)(5) of the Act [8]                                          in particular, in that it is designed to perfect the mechanism of a free and open market and 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 Act.

### C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others

No written comments were solicited or received with respect to the proposed rule change.

## III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action

                    Because the foregoing proposed rule change constitutes a stated policy, practice or interpretation with respect to the meaning, administration, or enforcement of an existing rule, it has become effective pursuant to Section 19(b)(3)(A) of the Act [9]                                          and paragraph (f)(1) of Rule 19b-4 thereunder.[10] 

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.

## 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 rule-comments@sec.gov . Please include File Number SR-CBOE-2008-74 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-2008-74. 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, 100 F Street, NE., Washington, DC 20549 on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of 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-2008-74 and should be submitted on or before August 28, 2008.                

                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.[11] 

Florence E. Harmon,

Acting Secretary.

# Footnotes

1.                             15 U.S.C. 78s(b)(1).                    
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2.                             17 CFR 240.19b-4.                    
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3.                             15 U.S.C. 78s(b)(3)(A)(i).                    
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4.                             17 CFR 240.19b-4(f)(1).                    
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5.                             This document is located at                         *http://www.nyse.com/​pdfs/​PortfolioMargin_​101707.pdf*.                    
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6.                             The Exchange understands that FINRA proposed similar rule changes that, if approved, would continue to provide a uniform approach with respect to portfolio margining.                         *See*                         (SR-FINRA-2008-042).                    
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7.                             15 U.S.C. 78f(b).                    
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8.                             15 U.S.C. 78f(b)(5).                    
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9.                             15 U.S.C. 78s(b)(3)(A).                    
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10.                             17 CFR 240.19b-4(f)(1).                    
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11.                                 17 CFR 200.30-3(a)(12).                        
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 [FR Doc. E8-18074 Filed 8-6-08; 8:45 am]

BILLING CODE 8010-01-P