Federal Register / Vol. 73, No. 166 / Tuesday, August 26, 2008 / Notices 50379 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3A Firm ID is a 1–4 character identification code 

(letters and /or numbers). Each CBOE member firm 

may establish its own unique Firm ID. 

4 15 U.S.C. 78s(b)(1). 

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

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). 

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–2008–83. 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–

2008–83 and should be submitted on or 

before September 16, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–19706 Filed 8–25–08; 8:45 am] 

BILLING CODE 8010–01–P 

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. 

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). 

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. 

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 


sroberts on PROD1PC76 with NOTICES
50380 Federal Register / Vol. 73, No. 166 / Tuesday, August 26, 2008 / Notices 

9 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. 57595 

(April 1, 2008), 73 FR 19118 (‘‘Original Filing’’). 

4For example, for a security trading at $50.00, if 

a trade occurs at $42.50 or below or 57.50 or above 

it will trigger the Imbalance Cross. 

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. 

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 

• 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–2008–85 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–2008–85. 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. 

[FR Doc. E8–19785 Filed 8–25–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58386; File No. SR–

NASDAQ–2007–067] 

Self-Regulatory Organizations; the 

NASDAQ Stock Market LLC; Order 

Granting Approval of Proposed Rule 

Change as Modified by Amendment 

No. 1 To Establish an Imbalance Cross 

August 19, 2008. 

I. Introduction 

On July 18, 2007, The NASDAQ Stock 

Market LLC (‘‘Nasdaq’’) 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 

establish the ‘‘Imbalance Cross’’ on a 

pilot basis. The proposed rule change 

was published for comment in the 

Federal Register on April 8, 2008.3 No 

comments were received on the 

proposed rule change. On August 13, 

2008, Nasdaq filed Amendment No. 1 to 

the proposed rule change to make 

certain technical, non-substantive 

modifications to the original rule filing. 

This order approves the proposed rule 

change as amended. 

II. Description of the Proposal 

Nasdaq proposes to implement for a 

one-year pilot the Imbalance Cross, a 

system enhancement which will 

automatically suspend trading in 

Nasdaq-listed securities that are the 

subject of abrupt and significant intraday price movements. The Imbalance 

Cross will be fully automated, be based 

on objective, quantitative criteria, and 

be triggered automatically when the 

execution price of a Nasdaq-listed 

security moves more than a fixed 

amount away from a pre-established 

‘‘triggering price’’ for that security. The 

Triggering Price for each security will be 

the price of any execution by the System 

in that security within the previous 30 

seconds. For each Nasdaq security, the 

System will continually compare the 

price of each execution against the 

prices of all executions in that security 

over the 30 seconds. 

As the System compares current 

executions against executions occurring 

in the previous 30 seconds, it will 

determine whether the current 

execution price is outside of a 

‘‘threshold range’’ for that security. The 

Threshold Range for each security will 

be based upon the current execution 

price for that security and will vary by 

price. Specifically, for per-share 

execution prices of $1.75 or less, the 

Threshold Range will be 15 percent; for 

execution prices over $1.75 and up to 

$25, the Threshold Range will be 10 

percent; for execution prices over $25 

and up to $50, the Threshold Range will 

be five percent; and for execution prices 

over $50, the Threshold Range will be 

three percent. 

If the execution price of a trade in a 

Nasdaq security exceeds the Threshold 

Range from the Triggering Price, the 

System will automatically trigger the 

Imbalance Cross.4 When that occurs, the 

System will cease executing trades in 

that security for a 60-second ‘‘Display 

Only Period.’’ During that 60-second 

Display Only Period, the System will 

maintain all current quotes and orders 

and continue to accept new quotes and 

orders in that Security. The System will 

disseminate an Order Imbalance 

Indicator every 5 seconds. 

Unlike a trading halt pursuant to 

Nasdaq Rule 4120, the Imbalance Cross 

will not be considered a regulatory halt 

and, therefore, it will not trigger a 

marketwide trading halt under Section 

X of the Nasdaq UTP Plan. As a result, 

other markets will be permitted to 

continue trading a Nasdaq stock that is 

undergoing a Market Re-Opening on 

Nasdaq. During the Imbalance Cross, 

Nasdaq’s quotations will be marked 

‘‘non-firm,’’ signaling to other markets 

that quotes and orders routed to Nasdaq 


sroberts on PROD1PC76 with NOTICES