[Federal Register Volume 73, Number 166 (Tuesday, August 26, 2008)]
[Notices]
[Pages 50379-50380]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-19785]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58394; File No. SR-CBOE-2008-85]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Adopting a New Order Type

August 20, 2008.
    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 August 19, 2008, the Chicago Board Options Exchange, Incorporated 
(the ``Exchange'' or ``CBOE'') 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 the Exchange. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to modify Rule 6.53 (Certain Types of Orders 
Defined) to allow for the submission of attributable orders. The text 
of the proposed rule change is available on the Exchange's Web site 
(http://www.cboe.org/legal), at the Office of the Secretary, CBOE 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 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to modify Rule 6.53 (Certain Types of Orders 
Defined) to allow for the submission of attributable orders.\3\ These 
orders allow users to voluntarily display their firm IDs on the orders. 
The NASDAQ Options Market, LLC (``NOM'') currently allows its 
participants to submit attributable orders (See NOM Chapter VI, Section 
(1)(d)(1)). As proposed, the Exchange may limit the systems/processes 
for which attributable orders will be available. For example, the 
attributable order-type may initially only be available in connection 
with certain Exchange auction processes like the Hybrid Agency Liaison 
system which ``flashes'' marketable orders for price improvement 
executions before those orders are routed to another market center 
pursuant to the Options Linkage Plan. This proposal is responsive to 
requests by Exchange users who believe that enhanced executions may be 
obtained if firm ID information is allowed on orders (on a voluntary 
basis).
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    \3\ A Firm ID is a 1-4 character identification code (letters 
and /or numbers). Each CBOE member firm may establish its own unique 
Firm ID.
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2. Statutory Basis
    Since this proposal allows for greater customization by providing 
users with an additional order type, the Exchange believes that the 
proposal is consistent with the Act \4\ and the rules and regulations 
thereunder and, in particular, the requirements of Section 6(b) of the 
Act.\5\ Specifically, the Exchange believes the proposal is consistent 
with the Section 6(b)(5) \6\ requirements that the rules of an exchange 
be designed to promote just and equitable principles of trade and to 
remove impediments to and to perfect the mechanism for a free and open 
market and a national market system.
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    \4\ 15 U.S.C. 78s(b)(1).
    \5\ 15 U.S.C. 78f(b).
    \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

    The proposed rule change is filed for immediate effectiveness 
pursuant to Section 19(b)(3)(A) \7\ of the Act and Rule 19b-4(f)(6) \8\ 
thereunder because it effects a change that (i) Does not significantly 
affect the protection of investors or the public interest; (ii) does 
not impose any significant burden on competition; and (iii) by its 
terms, does not become operative for 30 days after the date of the 
filing, or such shorter time as the Commission may designate if 
consistent with the protection of

[[Page 50380]]

investors and the public interest. 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6).
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    The proposal may assist investors by allowing participants the 
benefits of attributable orders. Additionally, the Exchange provided 
the Commission with written notice of its intent to file the proposal, 
along with a brief description and text of the proposal, prior to the 
date of the filing of the proposal.
    For the foregoing reasons, this rule filing qualifies for immediate 
effectiveness as a ``non-controversial'' rule change under paragraph 
(f)(6) of Rule 19b-4 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

    <bullet> Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an e-mail to <a href="/cdn-cgi/l/email-protection#d8aaadb4bdf5bbb7b5b5bdb6acab98abbdbbf6bfb7ae"><span class="__cf_email__" data-cfemail="ec9e998089c18f8381818982989fac9f898fc28b839a">[email protected]</span></a>. Please include 
File Number SR-CBOE-2008-85 on the subject line.

Paper Comments

    <bullet> 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-2008-85. 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, on official 
business days between the hours of 10 a.m. and 3 p.m. Copies of the 
filing also will be available for inspection and copying at the 
principal office of the Exchange. 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-2008-85 and should be submitted on or before 
September 16, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Florence E. Harmon,
Acting Secretary.
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    \9\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E8-19785 Filed 8-25-08; 8:45 am]
BILLING CODE 8010-01-P


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