Federal Register / Vol. 73, No. 166 / Tuesday, August 26, 2008 / Notices 50375 

1 15 U.S.C. 78k–1. 

2 17 CFR 242.608. 

3On July 6, 2001, the Commission approved the 

OLPP, which was originally proposed by the Amex, 

CBOE, ISE, OCC, Phlx, and Pacific Exchange, Inc. 

(k/n/a NYSE Arca). See Securities Exchange Act 

Release No. 44521, 66 FR 36809 (July 13, 2001). On 

February 5, 2004, BSE was added as a sponsor to 

the OLPP. See Securities Exchange Act Release No. 

49199, 69 FR 7030 (February 12, 2004). On March 

21, 2008, Nasdaq was added as a sponsor to the 

OLPP. See Securities Exchange Act Release No. 

57546 (March 21, 2008), 73 FR 16393 (March 27, 

2008). 

4A proposed amendment may be put into effect 

summarily upon publication of notice of such 

amendment, on a temporary basis not to exceed 120 

days, if the Commission finds that such action is 

necessary or appropriate in the public interest, for 

the protection of investors or the maintenance of 

fair and orderly markets, to remove impediments to, 

and perfect the mechanism of, a national market 

system or otherwise in furtherance of the purposes 

of the Act. See 17 CFR 242.608(b)(4). 

5 In approving this amendment, the Commission 

has considered its impact on efficiency, 

competition, and capital formation. See U.S.C. 

78c(f). 

6 15 U.S.C. 78k–1. 

7 17 CFR 242.608(b)(4). 

issues being addressed pertain. The 

public portions of these filings can be 

accessed via the Commission’s Web 

site(http://www.prc.gov). 

Interested persons may express views 

and offer comments on whether the 

planned changes are consistent with the 

policies of 39 U.S.C. 3632, 3633, or 

3642. Comments are due no later than 

September 2, 2008. 

The Commission appoints Michael 

Ravnitzky to serve as Public 

Representative in the captioned filings. 

III. Ordering Paragraphs 

It is Ordered: 

1. The Commission establishes Docket 

Nos. CP2008–18, CP2008–19, CP2008–

20, CP2008–21, CP2008–22, CP2008–23, 

and CP2008–24 for consideration of the 

matters raised in each docket. 

2. Comments on issues in these 

proceedings are due no later than 

September 2, 2008. 

3. The Commission appoints Michael 

Ravnitzky as Public Representative to 

represent the interests of the general 

public in this proceeding. 

4. The Secretary shall arrange for 

publication of this Order in the Federal 

Register. 

Authority: 39 U.S.C. 3633; 39 CFR 3020.33. 

By the Commission. 

Dated: August 20, 2008. 

Judith M. Grady, 

Acting Secretary. 

[FR Doc. E8–19679 Filed 8–25–08; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58385; File No. 4–443] 

Joint Industry Plan; Notice of Filing 

and Order Approving on a Temporary 

Basis Amendment No. 2 to the Plan for 

the Purpose of Developing and 

Implementing Procedures Designed to 

Facilitate the Listing and Trading of 

Standardized Options 

August 19, 2008. 

I. Introduction 

On August 12, 2008, August 18, 2008, 

August 15, 2008, August 13, 2008, 

August 8, 2008, August 14, 2008, 

August 14, 2008, and August 18, 2008, 

the American Stock Exchange LLC 

(‘‘Amex’’), the Boston Stock Exchange, 

Inc. (‘‘BSE’’), Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’), the 

International Securities Exchange, LLC 

(‘‘ISE’’), The NASDAQ Stock Market 

LLC (‘‘Nasdaq’’), NYSE Arca Inc. 

(‘‘NYSE Arca’’), the Philadelphia Stock 

Exchange, Inc. (‘‘Phlx’’), and the 

Options Clearing Corporation (‘‘OCC’’), 

respectively, filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to section 

11A of the Securities Exchange Act 1 of 

1934 (‘‘Act’’) and Rule 608 thereunder,2

Amendment No. 2 to the Plan for the 

Purpose of Developing and 

Implementing Procedures Designed to 

Facilitate the Listing and Trading of 

Standardized Options (‘‘the Options 

Listing Procedures Plan’’ or ‘‘OLPP’’).3

The amendment would provide a 

uniform minimum volume threshold 

per underlying class to qualify for the 

introduction of a new expiration year of 

Long-term Equity AnticiPation 

Securities (‘‘LEAPS’’ or ‘‘LEAP’’) 

options. This order summarily puts into 

effect Amendment No. 2 on a temporary 

basis not to exceed 120 days and solicits 

comment on Amendment No. 2 from 

interested persons.4

II. Description of the Proposed 

Amendment 

Amendment No. 2 proposes to apply 

a uniform minimum volume threshold 

per underlying class to qualify for the 

introduction of a new expiration year of 

LEAP options. Currently, Participant 

Exchanges may list a new LEAP 

expiration year at the appropriate time 

without any consideration as to the 

activity level of the class of options. 

By agreeing to a minimum volume 

threshold per underlying class to qualify 

for an additional year of LEAP series, 

the Participant Exchanges intend to 

mitigate the number of option series 

available for trading. It is intended that 

this will in turn mitigate quote traffic, 

because Participants will not be 

submitting quotes in the not-listed 

series. The Plan Sponsors have agreed 

on a minimum volume threshold of 

1,000 contracts national average daily 

volume in the preceding three calendar 

months (excluding volume in LEAP and 

FLEX series) to qualify for the 

introduction of a new LEAP expiration 

year. 

In 2007, if this proposal had been in 

effect, the industry would have not 

added a new expiration year in 550 

underlying securities, which would 

have reduced the overall number of 

listed series (LEAP and non-LEAP 

series) by 8%. These LEAP series 

generated only .43% of industry trading 

volume in a typical (non-expiration) 

sample week. The Exchanges agree that 

the benefit from reduced quoting levels 

greatly exceeds the small cost in missed 

business. 

The Amendment does not restrict the 

introduction of a new LEAP expiration 

year in Index options, or in classes that 

have had options products trading at 

any exchange for less than six months. 

It also does not restrict, for a particular 

options class, the introduction of new 

LEAP series with an expiration year that 

has already been introduced by at least 

one Exchange. 

The Commission directed the thencurrent options exchanges to act jointly 

to develop strategies to address overall 

capacity concerns in an Order dated 

September 8, 1999, as confirmed in a 

letter from the Director of the Division 

of Market Regulation dated September 

13, 2000. This Amendment is an 

additional strategy to meet this goal. 

III. Discussion 

After careful consideration, the 

Commission finds that the proposed 

amendment to the OLPP is consistent 

with the requirements of the Act and the 

rules and regulations thereunder.5 In 

particular, the Commission finds that 

the proposed amendment is consistent 

with the provisions of Section 11A of 

the Act 6 and Rule 608 of Regulation 

NMS thereunder,7 in that it is 

appropriate in the public interest, for 

the protection of investors and the 

maintenance of fair and orderly markets. 

Specifically, the Commission believes 

that adopting a uniform minimum 

volume threshold per underlying class 

to qualify for the introduction of a new 

expiration year of LEAP options will 

reduce the number of option series 

available for trading, and thus may 

reduce increases in the options quote 

rate because market participants will 

not be submitting quotes in those series. 

In addition, the Commission finds that 

it is appropriate to put Amendment No. 


sroberts on PROD1PC76 with NOTICES
50376 Federal Register / Vol. 73, No. 166 / Tuesday, August 26, 2008 / Notices 

8 15 U.S.C. 78k–1. 

9 17 CFR 242.608(b)(4). 

10 17 CFR 200.30–3(a)(29). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

2 into effect summarily upon 

publication of this notice on a 

temporary basis. The Commission 

believes that such action is appropriate 

in the public interest, for the protection 

of investors, and the maintenance of fair 

and orderly markets because it will 

allow the options exchanges to 

implement the initiative to reduce quote 

message traffic beginning immediately. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether proposed 

Amendment No. 2 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 4–443 in 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 4–443. 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 

Section, 100 F Street, NE., Washington, 

DC 20549–1090 on 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 the Exchanges. 

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 4–443 and should be submitted 

on or before September 16, 2008. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 11A of the Act,8 and Rule 608 

thereunder 9 that proposed Amendment 

No. 2 be, and it hereby is, approved on 

a temporary basis until December 17, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–19782 Filed 8–25–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold a Closed Meeting 

on Thursday, August 28, 2008 at 2 p.m. 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) 

and 17 CFR 200.402(a)(3), (5), (7), 9(ii) 

and (10), permit consideration of the 

scheduled matters at the Closed 

Meeting. 

Commissioner Aguilar, as duty 

officer, voted to consider the items 

listed for the Closed Meeting in closed 

session. 

The subject matter of the Closed 

Meeting scheduled for Thursday, 

August 28, 2008 will be: 

Formal orders of investigation; 

Institution and settlement of 

injunctive actions; 

Institution and settlement of 

administrative proceedings of an 

enforcement nature; 

Resolution of litigation matters; and 

Other matters relating to enforcement 

proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact: The Office of the Secretary at 

(202) 551–5400. 

Dated: August 21, 2008. 

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–19791 Filed 8–25–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 58387; File No. SR–CBOE–

2008–83] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Related to Complex 

Order Price Check Parameters 

August 19, 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 ‘‘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 prepared by the Exchange. 

The Exchange filed the proposal as a 

(‘‘non-controversial’’) proposed rule 

change pursuant to section 

19(b)(3)(A)(iii) of the Act 3 and Rule 

19b–4(f)(6) thereunder.4 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 amend 

Rule 6.53C, Complex Orders on the 

Hybrid System, to codify an automated 

system feature that prevents complex 

order executions from occurring at 

potentially erroneous prices. 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, the 

self-regulatory organization included 


sroberts on PROD1PC76 with NOTICES