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###### Securities and Exchange Commission

          - [Release No. 34-57250; File No. SR-CBOE-2008-11] 

                    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 January 29, 2008, the Chicago Board Options Exchange, Incorporated (“CBOE” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the CBOE. The Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)                           ( print page 7337)                        of the Act [3]                                          and Rule 19b-4(f)(6) thereunder,[4]                                          which rendered the proposal effective upon filing with the Commission. 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 proposes to amend its rules relating to the usage of its holdback timer. The text of the proposed rule change is available at CBOE, the Commission's Public Reference Room, and                     *http://www.cboe.org/​Legal*.                 

## II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 

In its filing with the Commission, CBOE included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposal. The text of these statements may be examined at the places specified in Item IV below. 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 Statutory Basis for, the Proposed Rule Change 

#### 1. Purpose 

                    On May 16, 2007, the Commission approved CBOE's proposed rule change, which implemented an additional quote mitigation strategy, namely, a holdback timer.[5]                                          In its filing, CBOE stated that it would utilize a holdback timer that delays quotation updates to OPRA for no longer than one (1) second, and that it would be used in option classes trading on the Hybrid Trading System and Hybrid 2.0 Platform. Subsequently, CBOE implemented a new trading platform, the Hybrid 3.0 Platform, which allows a single quoter to submit an electronic quote which represents the aggregate Market-Maker quoting interest in a series in the trading crowd.[6] 

CBOE now proposes to clarify that it may utilize the holdback timer in any option classes traded on CBOE, including option classes traded on the Hybrid 3.0 Platform. CBOE believes that the holdback timer is an appropriate and useful tool in mitigating quotations, as it reduces the number of quotations that CBOE disseminates to OPRA, without negatively impacting transparency. CBOE also notes that the holdback timer has been endorsed by the Securities Information and Financial Markets Association. CBOE is not proposing to change the manner in which the holdback timer functions, as described in its original rule filing SR-CBOE-2007-45. 

#### 2. Statutory Basis 

                    The Exchange believes that its proposal is consistent with Section 6(b) of the Act [7]                                          in general, and furthers the objectives of Section 6(b)(5) of the Act [8]                                          in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, 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.                 

### B. Self-Regulatory Organization's Statement on Burden on Competition 

The Exchange 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 either solicited or received by the Exchange. 

## III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 

                    The proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act [9]                                          and Rule 19b-4(f)(6) thereunder,[10]                                          because the foregoing proposed rule does not: (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest.                

                    A proposed rule change filed under Rule 19b-4(f)(6) normally may not become operative prior to 30-days after the date of filing.[11]                                          However, Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest.[12]                                          The Exchange has requested that the Commission waive the 30-day operative delay. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because such waiver will allow CBOE to implement the holdback timer in Hybrid 3.0 option classes immediately, and thus reduce the number of quotations it disseminates to OPRA. Furthermore, the proposed rule change does not present any novel regulatory issues as the holdback timer is already implemented with respect to options classes trading on the Hybrid Trading System and Hybrid 2.0 Platform. For these reasons, the Commission designates the proposal to be operative upon filing with the Commission.[13] 

                    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.[14] 

## 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 rule-comments@sec.gov . Please include File Number SR-CBOE-2008-11 on the subject line.                            ( print page 7338)      

### Paper Comments 

    - Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

                    All submissions should refer to File Number SR-CBOE-2008-11. 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 the 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-2008-11 and should be submitted on or before February 28,                                         2008.                 

                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15

Florence E. Harmon, 

Deputy Secretary.

# Footnotes

1.                             15 U.S.C. 78s(b)(1).                    
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2.                             17 CFR 240.19b-4.                    
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3.                             15 U.S.C. 78s(b)(3)(A).                    
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4.                             17 CFR 240.19b-4(f)(6).                    
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5.                                                     *See*                         Securities Exchange Act Release 55772 (May 16, 2007), 72 FR 28732 (May 22, 2007) (SR-CBOE-2007-45).                    
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6.                                                     *See*                         CBOE Rule 1.1(aaa).                    
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7.                             15 U.S.C. 78f(b).                    
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8.                             15 U.S.C. 78f(b)(5).                    
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9.                             15 U.S.C. 78s(b)(3)(A).                    
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10.                             17 CFR 240.19b-4(f)(6).                    
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11.                             17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6)(iii) requires the self-regulatory organization to give the Commission notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. CBOE has satisfied the five-day pre-filing requirement.                    
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12.                             17 CFR 240.19b-4(f)(6)(iii).                    
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13.                             For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).                    
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14.                                                     *See*15 U.S.C. 78s(b)(3)(C).                    
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15.                             17 CFR 200.30-3(a)(12).                    
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[FR Doc. E8-2204 Filed 2-6-08; 8:45 am] 

BILLING CODE 8011-01-P