51668 Federal Register / Vol. 73, No. 172 / Thursday, September 4, 2008 / Notices 

183 15 U.S.C. 78f(b)(5). 

184 15 U.S.C. 78f(b)(3). 

185The Commission notes that the Exchange has 

consented to an extension of time for Commission 

consideration of the proposed rule change. See Item 

6 of CBOE’s Form 19b–4 submission. 

186 17 CFR 200.30–3(a)(12). 

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

2 2 17 CFR 240.19b–4. 

provisions of the Exchange Act, the 

rules and regulations thereunder, and 

the rules of the Exchange. The Exchange 

also believes that this filing furthers the 

objectives of Section 6(b)(5) of the 

Exchange Act because the rules 

summarized herein would create a 

governance and regulatory structure that 

is designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to remove impediments to, and 

perfect the mechanism of a free and 

open market and, in general, to protect 

investors and the public interest.183

Among other things, the Certificate of 

Incorporation and Bylaws of CBOE 

Holdings and CBOE are designed to 

protect and maintain the integrity of the 

SRO functions of CBOE, and to allow it 

to carry out its regulatory 

responsibilities under the Exchange Act. 

In addition, the Exchange believes 

that this filing is consistent with the 

requirements of Section 6(b)(3) of the 

Exchange Act that the rules of the 

exchange assure a fair representation of 

its members in the selection of its 

directors and administration of its 

affairs and provide that one or more 

directors shall be representative of 

issuers and investors and not be 

associated with a member of the 

exchange, broker, or dealer.184 As 

described above, the CBOE Bylaws 

provide a process for Trading Permit 

Holders to select members of the CBOE 

Board (i.e., Representative Directors). 

The CBOE Bylaws also require that a 

majority of directors on the CBOE Board 

be Non-Industry Directors. 

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 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange 

consents,185 the Commission will: 

(A) By order approve such proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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–2008–88 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–2008–88. 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 the 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–2008–88 and should 

be submitted on or before September 25, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.186

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–20464 Filed 9–3–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58428; File No. SR–CBOE–

2008–86] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Voluntary 

Professional Transaction Fees 

August 27, 2008. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on August 

19, 2008, the 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 prepared 

by the CBOE. 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 is proposing to amend its fees 

schedule for certain non-broker-dealer 

orders. 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 

CBOE included statements concerning 

the purpose of, and basis for, the 


sroberts on PROD1PC77 with NOTICES
Federal Register / Vol. 73, No. 172 / Thursday, September 4, 2008 / Notices 51669 

3See CBOE Rule 1.1(fff). 

4See Securities Exchange Act Release No. 58327 

(August 7, 2008), 73 FR 47988 (August 15, 2008). 

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

6 15 U.S.C. 78f(b)(4). 

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

8 17 CFR 19b–4(f)(2). 

9 17 CFR 200.30–3(a)(12). 

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

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. The 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On August 7, 2008, the Securities and 

Exchange Commission approved a 

proposed rule change by the CBOE to 

establish a Voluntary Professional 3

designation.4 This designation permits 

non-broker-dealer customers to 

voluntarily have their orders categorized 

as broker-dealer orders for order 

handling, order execution, and cancel 

fee calculation purposes. In the 

aforementioned filing, the Exchange 

represented that it intends to establish, 

via a separate rule filing, a transaction 

fee applicable to Voluntary 

Professionals. 

In accordance with that 

representation, the Exchange now 

proposes to amend its fees schedule to 

establish the transaction fees that would 

be applicable to Voluntary Professional 

orders. Specifically, the Exchange 

proposes to charge Voluntary 

Professional orders a $0.20 per contract 

transaction fee in all equity options and 

options on indexes, exchange-traded 

funds and holding company depository 

receipts (except those listed below). The 

Exchange proposes a $0.30 per contract 

transaction fee in XEO options, a $0.40 

per contract transaction fee in DXL 

options and all volatility index options, 

and a $0.85 per contract transaction fee 

in credit default and credit default 

basket options. 

As reflected in Exhibit 5, the 

Exchange proposes to amend footnote 

14 (index option surcharge fee) to clarify 

that the Surcharge fee would apply to 

Voluntary Professionals. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Act,5 in general, and furthers 

the objectives of Section 6(b)(4) 6 of the 

Act in particular, in that it is designed 

to provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among CBOE members. The proposed 

fee change would enable the Exchange 

to implement the Voluntary Professional 

designation. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The CBOE does not believe that the 

proposed rule change will impose any 

burden on competition that is not 

necessary or appropriate in furtherance 

of 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 

Because the foregoing proposed rule 

change establishes or changes a due, fee, 

or other charged imposed by the 

Exchange, it has become effective 

pursuant to Section 19(b)(3)(A) of the 

Act 7 and Rule 19b–4(f)(2) 8 thereunder. 

At any time within 60 days of the filing 

of the proposed rule change the 

Commission may summarily abrogate 

such proposed 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 rulecomments@sec.gov. Please include File 

Number SR–CBOE–2008–86 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–2008–86. 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–2008–86 and should 

be submitted on or before September 25, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–20524 Filed 9–3–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58432; File No. SR–

NASDAQ–2008–062] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Order 

Approving Proposed Rule Change To 

Clarify the Application of Nasdaq 

Rules When a Listed Company 

Combines With a Non-Nasdaq Entity 

August 27, 2008. 

I. Introduction 

On July 10, 2008, The NASDAQ Stock 

Market LLC (‘‘Nasdaq’’ 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 


sroberts on PROD1PC77 with NOTICES