46650 Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 57997 

(June 20, 2008), 73 FR 36939. 

4 In determining the priority of orders and quotes 

to be traded, HOSS gives priority to market orders 

first, then to limit orders and quotes whose price 

is better than the opening price, and then to resting 

orders and quotes at the opening price. See Rule 

6.2B(c)(iv). 

copy, there needs to be an original and 

six copies of the full proposal (program 

and budget narratives, application forms 

and assurances). The original should 

have the applicant’s signature in blue 

ink. 

Telephone Conference: A telephone 

conference will be conducted for 

persons receiving this solicitation and 

having a serious intent to respond on 

Friday, August 15 at 3 p.m. EDT. In the 

conference, the NIC project manager 

will respond to questions regarding the 

solicitation and expectations of work to 

be performed. Please notify Maureen 

Buell electronically by close of business 

(4 p.m. EDT) on Wednesday, August 13 

regarding your interest in participating 

in the conference. You will be provided 

with a call-in number and instructions. 

Authority: Public Law 93–415. 

Funds Available: NIC is seeking the 

applicant’s best ideas regarding 

accomplishment of the scope of work 

and the related costs for achieving the 

goals of this solicitation. The final 

budget and award amount will be 

negotiated between NIC and the 

successful applicant. NIC will fund one 

cooperative agreement for an estimated 

12 month period for the development 

phase of this project. Funds may only be 

used for the activities that are linked to 

the desired outcomes of the project. 

Eligibility of Applicants: An eligible 

applicant is any public or private 

agency, educational institution, 

organization, individual or team with 

expertise in the described areas. 

Review Considerations: Applications 

received under this announcement will 

be subject to a 3 to 5 person NIC and 

joint funding agency Review Process. 

Number of Awards: One. 

NIC Application Number: 08P06. This 

number should appear as a reference 

line in the cover letter, in box 4a of 

Standard Form 424, and outside of the 

envelope in which the application is 

sent. 

Catalog of Federal Domestic 

Assistance Number: 16.601. 

Executive Order 12372: This project is 

not subject to the provisions of 

Executive Order 12372. 

Resources: Link to draft protocol 

located at http://www.nicic.org/ 

WomenOffenders. 

Thomas J. Beauclair, 

Deputy Director, National Institute of 

Corrections. 

[FR Doc. E8–18420 Filed 8–8–08; 8:45 am] 

BILLING CODE 4410–36–P 

OFFICE OF PERSONNEL 

MANAGEMENT 

[OMB Number: 3206–0193] 

Comment Request for Review of a 

Revised Information Collection: OPM 

Form 1417 

AGENCY: Office of Personnel 

Management. 

ACTION: Notice. 

SUMMARY: In accordance with the 

Paperwork Reduction Act of 1995 (Pub. 

L. 104–13, May 22, 1995), this notice 

announces that the Office of Personnel 

Management (OPM) submitted to the 

Office of Management and Budget 

(OMB) a request for clearance of a 

revised information collection. OPM 

Online Form 1417, the Combined 

Federal Campaign (CFC) Information 

System form, collects information from 

the 247 local CFC campaigns to verify 

campaign results and collect contact 

information. Revisions to the form 

include clarifying edits to items 

numbered 2–6, 9 and 10 of the 

Campaign Results Total Page, the 

elimination of questions numbered 13–

15 of the Campaign Results Total Page 

and the return of one question edited to 

collect pledge amounts designated 

specifically for federal emergency or 

disaster relief, if any, on the Campaign 

Results Total Page. 

We estimate 247 online OPM Forms 

1417 are completed annually. Each form 

takes approximately 20 minutes to 

complete. The annual estimated burden 

is 82.3 hours. 

For copies of this proposal, contact 

Margaret A. Miller at (202) 606–2699 or 

FAX (202) 418–3251 or e-mail 

mamiller@opm.gov. Please be sure to 

include a mailing address with your 

request. 

DATES: Comments on this proposal 

should be received within 30 calendar 

days from the date of this publication. 

ADDRESSES: Send or deliver comments 

to—

Cherlynn Stevens, 

Office of the Combined Federal 

Campaign, 

U.S. Office of Personnel Management, 

1900 E Street, NW., Room 5450, 

Washington, DC 20415. 

Brenda Aguilar, 

OPM Desk Officer, 

U.S. Office of Personnel Management, 

OIRA, 

Office of Management and Budget, 

NEOB, NW., 

Room 10235, 

Washington, DC 20503. 

Howard Weizman, 

Deputy Director. 

[FR Doc. E8–18446 Filed 8–8–08; 8:45 am] 

BILLING CODE 6325–46–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58296; File No. SR–CBOE–

2008–30] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Order Approving a 

Proposed Rule Change Relating to the 

Hybrid Opening System 

August 4, 2008. 

I. Introduction 

On June 5, 2008, 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 

revise its Hybrid Opening System 

(‘‘HOSS’’) procedures to allow the 

Hybrid Agency Liaison (‘‘HAL’’) 

functionality to be available on the 

openings in designated classes. The 

proposed rule change was published for 

comment in the Federal Register on 

June 30, 2008.3 The Commission 

received no comments regarding the 

proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

CBOE Rule 6.2B, ‘‘Hybrid Opening 

System (‘‘HOSS’’),’’ sets forth 

procedures for opening trading rotations 

for series trading on the CBOE Hybrid 

Trading System (‘‘Hybrid’’). The current 

HOSS method for opening chooses a 

single ‘‘market clearing’’ price that will 

leave unexecuted those bids and offers 

that cannot trade with each other.4

However, one or more series of a class 

may not open if one of the following 

conditions is met: (1) No opening quote 

that complies with the legal width quote 

requirements of Rule 8.7(b)(iv) has been 

entered by at least one Market Maker 

appointed to the class (or by the 

Designated Primary Market-Maker or 


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5See CBOE Rule 6.2B(f). 

6See CBOE Rule 6.14 (governing the operation of 

HAL). 

7 In determining the priority of orders and quotes 

to be traded on the opening trade or through the 

subsequent exposure process, HOSS would give 

priority to public customer market orders first (with 

multiple orders ranked based on time priority), then 

to non-public customer market orders second (with 

multiple orders being ranked based on time 

priority), then to limit orders and quotes whose 

price is better than the opening price (with multiple 

orders and quotes being ranked in accordance with 

the allocation algorithm in effect for the option 

class pursuant to CBOE Rule 6.45A, ‘‘Priority and 

Allocation of Equity Option Trades on the CBOE 

Hybrid System,’’ or 6.45B, ‘‘Priority and Allocation 

of Trades in Index Options and Options on ETFs 

on the CBOE Hybrid System),’’ and then to limit 

orders and quotes at the opening price (with 

multiple orders and quotes being ranked in 

accordance with the allocation algorithm in effect 

for the option class pursuant to Rule 6.45A or 

6.45B). See proposed Interpretation and Policy 

.03(c)(i) to Rule 6.2B. 

8On an intra-day basis, orders are normally 

exposed through HAL to Market-Makers appointed 

to the relevant option class as well as members 

acting as agent for orders at the top of CBOE’s book 

(‘‘Qualifying Members’’) in the relevant series. See 

CBOE Rule 6.14(b). For HOSS openings where HAL 

is used, the exposure to Qualifying Members would 

not be applicable because there would not be an 

established ‘‘top of CBOE’s book’’ at the time. As 

part of a separate rule filing, the Exchange recently 

modified Rule 6.14 to permit electronic exposure of 

HAL orders on a class-by-class basis to all members 

that elect to receive HAL messages (not just MarketMakers appointed to the relevant option class and 

Qualifying Members) and to permit such members 

to participate in the HAL process. See Securities 

Exchange Act Release No. 57837 (May 20, 2008), 73 

FR 30431 (May 27, 2008) (SR–CBOE–2008–46). In 

classes where all members that elect to receive HAL 

messages are eligible to participate in the HAL 

process for a particular class on an intra-day basis, 

all such members would also be eligible to 

participate in any HAL process that occurs as part 

of the HOSS opening in that class. 

9 In addition to the receipt of a response to trade 

any portion of the exposed order(s), the exposure 

period would also terminate early under the 

circumstances described in CBOE Rule 6.14(d). 

10With respect to new proposed HAL exposure 

period, ‘‘Exchange Initial BBO’’ in CBOE Rule 

6.14(i)–(ii) means the best bid (or offer) that exists 

in the system at the time the auction begins. This 

takes into account orders and quotes on the relevant 

side of the market that exist in the system at that 

time (including orders and quotes that may have 

been entered up until the beginning of the HAL 

auction). See e-mail from Jennifer Lamie, Assistant 

General Counsel, CBOE, to Sara Gillis, Special 

Counsel, Division, Commission, dated June 19, 

2008. 

11See proposed CBOE Rule 6.2B, Interpretation 

.03(c)(ii). 

Lead Market-Maker, if applicable for the 

particular class) (the ‘‘opening quote 

condition’’); (2) the opening price is not 

within an acceptable range (as 

applicable for the particular class) 

compared to the lowest quote offer and 

the highest quote bid (the ‘‘acceptable 

opening range condition’’); or (3) the 

opening trade would leave a market 

order imbalance (i.e., there are more 

market orders to buy or to sell for the 

particular series than can be satisfied by 

the limit orders, quotes and market 

orders on the opposite side) (‘‘market 

order imbalance condition’’). 

Under the current HOSS procedures, 

if the opening quote condition or 

acceptable opening range condition is 

present, the senior official in the 

Exchange’s control room may authorize 

the opening of the affected series where 

necessary to ensure a fair and orderly 

market. If the acceptable opening range 

condition is present, HOSS will not 

open the series but will send a 

notification to market participants 

indicating the reason. If the market 

order imbalance condition is present, a 

notification will be sent to market 

participants indicating the size and 

direction (buy or sell) of the market 

order imbalance. HOSS will not open 

the series until the condition causing 

the delay is satisfied. HOSS will repeat 

the process until the series is open.5

CBOE proposes to amend the current 

HOSS procedures in CBOE Rule 6.2B to 

permit HAL functionality to be available 

on the openings in designated classes. 

HAL is a system for automated handling 

of electronically received orders that are 

not automatically executed upon receipt 

by Hybrid.6 Under the proposed rule 

change, the Exchange could designate 

the classes in which HAL would be 

activated for HOSS openings. For such 

designated classes, additional steps 

would be automatically taken using 

HAL functionality to address the 

opening quote, acceptable opening 

range, and market order imbalance 

conditions, as well as to address 

instances where CBOE’s opening trade 

would be at a price that is not the 

current national best bid or offer (the 

‘‘NBBO condition’’). 

In particular, CBOE proposes that for 

classes where HAL is activated for 

HOSS openings, the following 

procedures would apply if one of the 

following conditions is met: 

(1) If the opening quote condition is 

present, HOSS would check to see if 

there is an NBBO quote on another 

market that falls within the acceptable 

opening range. If such an NBBO quote 

is present, the series would open and 

expose the marketable order(s) at the 

NBBO price. If such an NBBO quote is 

not present, HOSS would not open the 

series and would send a notification to 

market participants indicating the 

reason. 

(2) If the acceptable opening range 

condition is present, HOSS would 

match orders and quotes to the extent 

possible at a single clearing price 7

within the acceptable opening range and 

then expose the remaining marketable 

order(s) at the widest price point within 

the acceptable opening range or the 

NBBO price, whichever is better. 

(3) If the market order imbalance 

condition is present, HOSS would 

match orders and quotes to the extent 

possible at a single clearing price and 

then expose the remaining marketable 

order(s) at the widest price point within 

the acceptable opening range or the 

NBBO price, whichever is better. 

(4) If the NBBO condition is present, 

HOSS would match orders and quotes 

to the extent possible at a single clearing 

price within the acceptable opening 

range or the NBBO price, whichever is 

better, and then expose the remaining 

marketable order(s) at the NBBO price. 

The order exposure process in each of 

the above would be conducted pursuant 

to Rule 6.14, ‘‘Hybrid Agency Liaison 

(HAL).’’ Under the HAL process, 

marketable orders would be 

electronically exposed to all MarketMakers appointed to the relevant option 

class if not executed at a single clearing 

price.8 For HOSS openings where HAL 

is used, this exposure period would 

afford Market-Makers appointed to the 

class an opportunity to match the 

widest price point within the opening 

range or the NBBO price, whichever is 

better. If at least one Market-Maker 

committed to trade any portion of the 

exposed marketable order(s) during the 

exposure period, the exposure period 

would end and an allocation period 

would commence. The Exchange would 

determine on a class-by-class basis the 

applicable exposure period (which 

would not exceed 1.5 seconds) and 

allocation period (which, when 

combined with the designated exposure 

period time—as opposed to an exposure 

period that is terminated early 9—would 

not exceed a total of 3 seconds) that 

would be applicable where HAL is 

activated for HOSS openings. 

At the conclusion of the allocation 

period, the order(s) would be filled in 

accordance with the allocation 

algorithm in effect for the class pursuant 

to Rule 6.45A or 6.45B. There would be 

no participation entitlement applicable 

to exposed orders, and response sizes 

are limited to the size of the exposed 

order for allocation purposes. If no 

responses are received or if there 

remains an unexecuted marketable 

order (or portion thereof), then the 

balance of the order would be booked if 

it is a limit order that is not marketable 

or processed in accordance with CBOE 

Rule 6.14(b)(i)–(ii).10 In addition, for all 

classes, any remaining balance of 

opening contingency orders not 

executed via HAL on the opening would 

be automatically cancelled.11 For single 

list classes, any remaining balance of 


rmajette on PRODPC74 with NOTICES
46652 Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 

12See proposed CBOE Rule 6.2B, Interpretation 

.03(c)(ii). 

13 15 U.S.C. 78k(a). 

14 17 CFR 240.11a2–2(T). 

15 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). 

16 15 U.S.C. 78f(b)(5). 

17 15 U.S.C. 78k(a). 

18The member may, however, participate in 

clearing and settling the transaction. 

19See e-mail from Jennifer Lamie, Assistant 

General Counsel, CBOE, to Sara Gillis, Special 

Counsel, Division of Trading and Markets, 

Commission, dated July 31, 2008. 

20See, e.g., Securities Exchange Act Release Nos. 

57478 (March 12, 2008), 73 FR 14521 (March 18, 

2008) (order approving The NASDAQ Options 

Market as an options exchange facility of The 

NASDAQ Stock Market (‘‘Nasdaq’’)); 53128 (January 

13, 2006), 71 FR 3550 (January 23, 2006) (order 

approving Nasdaq’s application to register as a 

national securities exchange); 49068 (January 13, 

2004), 69 FR 2775 (January 20, 2004) (order 

approving the Boston Options Exchange as an 

options trading facility of the Boston Stock 

Exchange); 44983 (October 25, 2001), 66 FR 55225 

(November 1, 2001) (order approving Archipelago 

Exchange as electronic trading facility of the Pacific 

Exchange (‘‘PCX’’)); 29237 (May 24, 1991), 56 FR 

24853 (May 31, 1991) (regarding the New York 

Stock Exchange’s (‘‘NYSE’’) Off-Hours Trading 

Facility); 15533 (January 29, 1979), 44 FR 6084 

(January 31, 1979) (regarding the American Stock 

Exchange (‘‘Amex’’) Post Execution Reporting 

System, the Amex Switching System, the 

Intermarket Trading System, the Multiple Dealer 

Trading Facility of the Cincinnati Stock Exchange, 

the PCX Communications and Execution System, 

and the Philadelphia Stock Exchange’s Automated 

Communications and Execution System (‘‘1979 

Release’’)); and 14563 (March 14, 1978), 43 FR 

11542 (March 17, 1978) (regarding the NYSE’s 

Designated Order Turnaround System (‘‘1978 

Release’’)). 

21The member may cancel or modify the order, 

or modify the instruction for executing the order. 

The Commission has stated that the nonparticipation requirement is satisfied under such 

circumstances so long as such modifications or 

cancellations are also transmitted from off the floor. 

See 1978 Release, supra note 20 (stating that the 

‘‘non-participation requirement does not prevent 

initiating members from canceling or modifying 

orders (or the instructions pursuant to which the 

initiating member wishes orders to be executed) 

after the orders have been transmitted to the 

executing member, provided that any such 

instructions are also transmitted from off the 

floor.’’) Thus, the Commission notes that if such 

orders are cancelled or modified from on the floor 

of the Exchange, such orders would not meet this 

requirement of Rule 11a2–2(T). 

marketable orders (other than opening 

contingency orders) not executed via 

HAL on the opening would route as 

determined by the Exchange on a classby-class basis to PAR, BART, or at the 

order entry firm’s discretion to the order 

entry firm’s booth printer.12

The Exchange also notes that all 

transactions executed via HOSS, 

including through the new proposed 

HAL exposure period, must be in 

compliance with Section 11(a) of the 

Act 13 and the rules promulgated 

thereunder. In this regard, the Exchange 

states that it believes that orders for 

proprietary accounts submitted into 

HOSS, including any such orders 

submitted as a response through the 

proposed HAL exposure period, would 

qualify for an exception under Rule 

11a2–2(T).14

III. Discussion 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange.15 Specifically, the 

Commission finds that the proposal is 

consistent with section 6(b)(5) of the 

Act,16 which requires, among other 

things, that the rules of a national 

securities exchange be designed to 

promote just and equitable principles of 

trade, 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. 

The Commission believes that the 

proposed rule change will reduce delays 

in the opening of a series where the 

opening quote, acceptable opening 

range, and market order imbalance 

conditions (collectively, ‘‘opening 

conditions’’) currently would cause the 

Exchange to delay the opening of a 

series until the condition causing the 

delay is satisfied. Under the current 

HOSS procedures, the Exchange must 

undertake a manual process when one 

of the opening conditions exits, which 

includes notifying members of the 

existence of one of the opening 

conditions and waiting for the 

condition(s) to be remedied. The 

proposed rule change would automate 

the process for addressing the opening 

conditions by allowing the HAL 

functionality to be enabled on the 

openings in designated classes. 

Specifically, rather than preventing a 

series from opening, the Exchange’s 

system will match orders and quotes to 

the extent possible and then expose the 

remaining marketable orders to HAL. 

The Commission believes that this may 

enhance the efficiency of HOSS opening 

rotations because it will allow the 

opening conditions to be addressed 

more quickly through the automated 

HAL process, as well as address NBBO 

condition scenarios where the 

Exchange’s opening trade might occur at 

a price inferior to an away market. 

Section 11(a)(1) of the Act 17 prohibits 

a member of a national securities 

exchange from effecting transactions on 

that exchange for its own account, the 

account of an associated person, or an 

account over which it or its associated 

person exercises discretion (collectively, 

‘‘covered accounts’’) unless an 

exception applies. Rule 11a2–2(T) under 

the Act, known as the ‘‘effect versus 

execute’’ rule, provides exchange 

members with an exemption from the 

section 11(a)(1) prohibition. Rule 11a2–

2(T) permits an exchange member, 

subject to certain conditions, to effect 

transactions for covered accounts by 

arranging for an unaffiliated member to 

execute the transactions on the 

exchange. To comply with Rule 11a2–

2(T)’s conditions, a member (i) must 

transmit the order from off the exchange 

floor; (ii) may not participate in the 

execution of the transaction once it has 

been transmitted to the member 

performing the execution; 18 (iii) may 

not be affiliated with the executing 

member; and (iv) with respect to an 

account over which the member has 

investment discretion, neither the 

member nor its associated person may 

retain any compensation in connection 

with effecting the transaction except as 

provided in the Rule. 

The Rule’s first condition is that 

orders for covered accounts must be 

transmitted from off the exchange floor. 

The HOSS system receives orders 

electronically through remote terminals 

or computer-to-computer interfaces.19 In 

the context of other automated trading 

systems, the Commission has found that 

the off-floor transmission requirement is 

met if a covered account order is 

transmitted from a remote location 

directly to an exchange’s floor by 

electronic means.20 Since HOSS 

receives orders electronically through 

remote terminals or computer-tocomputer interfaces, the Commission 

believes that such orders satisfy the offfloor transmission requirement. 

However, the Commission notes that to 

the extent a member submits an order 

for a covered account into HOSS from 

on the floor of the Exchange, such an 

order would not meet this requirement. 

Second, the Rule requires that the 

member not participate in the execution 

of its order. CBOE represented that no 

Exchange member is able to acquire 

control or influence over the result or 

timing of an order’s execution through 

HOSS. According to CBOE, the 

execution of a member’s order through 

HOSS, including the subsequent HAL 

exposure, is determined solely by 

automated processing and execution by 

computerized systems.21 Accordingly, 

the Commission believes that a member 

does not participate in the execution of 

an order submitted to HOSS. 

Third, Rule 11a2–2(T) requires that 

the order be executed by an exchange 

member who is unaffiliated with the 


rmajette on PRODPC74 with NOTICES
Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 46653 

22 In considering the operation of automated 

execution systems operated by an exchange, the 

Commission noted that while there is not an 

independent executing exchange member, the 

execution of an order is automatic once it has been 

transmitted into the systems. Because the design of 

these systems ensures that members do not possess 

any special or unique trading advantages in 

handling their orders after transmitting them to the 

exchange, the Commission has stated that 

executions obtained through these systems satisfy 

the independent execution requirement of Rule 

11a2–2(T). See 1979 Release, supra note 20. 23 17 CFR 240.11a2–2(T)(a)(2)(iv). In addition, 

Rule 11a2–2(T)(d) requires a member or associated 

person authorized by written contract to retain 

compensation, in connection with effecting 

transactions for covered accounts over which such 

member or associated persons thereof exercises 

investment discretion, to furnish at least annually 

to the person authorized to transact business for the 

account a statement setting forth the total amount 

of compensation retained by the member in 

connection with effecting transactions for the 

account during the period covered by the statement. 

See 17 CFR 240.11a2–2(T)(d). See also 1978 

Release, supra note 20 (stating ‘‘[t]he contractual 

and disclosure requirements are designed to assure 

that accounts electing to permit transaction-related 

compensation do so only after deciding that such 

arrangements are suitable to their interests’’). 24See e-mail from Jennifer Lamie, Assistant 

General Counsel, CBOE, to Sara Gillis, Special 

Counsel, Division of Trading and Markets, 

Commission, dated July 31, 2008. 

25 15 U.S.C. 78s(b)(2). 

26 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. 57996 

(June 20, 2008), 73 FR 36937. 

4See Securities Exchange Act Release No. 57615 

(April 3, 2008), 73 FR 19537 (April 10, 2008) (SR–

CBOE–2007–120). 

5CBOE Rule 8.7.03B applies to both Hybrid 3.0 

and non-Hybrid option classes. Currently, there are 

three Hybrid 3.0 classes and no non-Hybrid classes. 

6 In approving this rule, 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). 

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

8 15 U.S.C. 78s(b)(2). 

9 17 CFR 200.30–3(a)(12). 

member initiating the order. The 

Commission has stated that this 

requirement is satisfied when 

automated exchange facilities are used, 

as long as the design of these systems 

ensures that members do not possess 

any special or unique trading 

advantages in handling their orders after 

transmitting them to the exchange.22

CBOE has represented that the design of 

HOSS, including the new HAL exposure 

period, ensures that no member has any 

special or unique trading advantage in 

the handling of its orders after 

transmitting its orders to the Exchange 

and is designed to prevent any 

Exchange members from gaining any 

time or place advantages. Based on 

CBOE’s representation, the Commission 

believes that HOSS, as amended herein, 

satisfies this requirement. 

Fourth, in the case of a transaction 

effected for an account with respect to 

which the initiating member or an 

associated person thereof exercises 

investment discretion, neither the 

initiating member nor any associated 

person thereof may retain any 

compensation in connection with 

effecting the transaction, unless the 

person authorized to transact business 

for the account has expressly provided 

otherwise by written contract referring 

to section 11(a) of the Act and Rule 

11a2–2(T).23 CBOE represents that 

members trading for covered accounts 

over which they exercise investment 

discretion must comply with this 

condition in order to rely on the rule’s 

exemption.24

Accordingly, for the reasons stated 

above, the Commission finds that the 

proposed rule change is consistent with 

the Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

section 19(b)(2) of the Act,25 that the 

proposed rule change (SR–CBOE–2008–

30) is approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18368 Filed 8–8–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58281; File No. SR–CBOE–

2008–59] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Order Granting Approval 

of Proposed Rule Change to Amend 

CBOE Rule 8.7 Related to the 

Obligations of Market-Makers 

August 1, 2008. 

On June 11, 2008, Chicago Board 

Options Exchange, Incorporated (the 

‘‘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 

amend CBOE Rule 8.7 (Obligations of 

Market-Makers). The proposed rule 

change was published for comment in 

the Federal Register on June 30, 2008.3

The Commission received no comments 

on the proposed rule change. This order 

approves the proposed rule change. 

The Exchange recently amended 

CBOE Rule 8.1 (Market-Maker Defined) 

to expand the definition of marketmaker by including member 

organizations.4 In view of this change, 

the proposed rule change adds an 

interpretation to CBOE Rule 8.7 to 

clarify that the in-person requirements 

set forth in CBOE Rule 8.7.03B may be 

satisfied by market-makers either 

individually or collectively with 

market-makers of the same member 

organization.5

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder that 

are applicable to a national securities 

exchange.6 In particular, the 

Commission believes that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,7 in that it is designed 

to promote just and equitable principles 

of trade, 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. The 

Commission notes that under the 

proposal the total amount of 

transactions that the rule would require 

to be executed in-person would not 

change, because a member organization 

that is registered as a market-maker 

would have to take into account the 

transactions of all its individual 

associated market-makers when 

determining the total transactions for 

which it would have to meet the inperson requirements. Further, the 

proposed rule change helps to ensure a 

more consistent application of the 

definition of market-maker within CBOE 

rules. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,8 that the 

proposed rule change (SR–CBOE–2008–

59) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18373 Filed 8–8–08; 8:45 am] 

BILLING CODE 8010–01–P 


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