7338 Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Notices 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 15 U.S.C. 78f(b)(5). 

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. 

[FR Doc. E8–2204 Filed 2–6–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57256; File No. SR–CBOE–

2008–09] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing of 

Proposed Rule Change Establishing a 

Voluntary Professional Designation 

February 1, 2008. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on January 

18, 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 adopt a 

voluntary professional designation. 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 proposed 

rule change. 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

This filing proposes to allow nonbroker-dealer customers to voluntarily 

have their orders categorized as brokerdealer orders for order handling, order 

execution, and cancel fee calculation 

purposes (‘‘Voluntary Professional(s)’’). 

Specifically, these orders would be 

treated as broker-dealer orders for 

purposes of CBOE Rules 6.13 (CBOE 

Hybrid System’s Automatic Execution 

Feature), 6.45 (Priority of Bids and 

Offers—Allocation of Trades), 6.45A 

(Priority and Allocation of Equity 

Option Trades on the CBOE Hybrid 

System), 6.45B (Priority and Allocation 

of Trades in Index Options and Options 

on ETFs on the CBOE Hybrid System), 

and 6.53C (Complex Orders on the 

Hybrid System). 

Some Exchange users have requested 

this flexibility because it is more 

suitable to their trading strategies that 

involve high volume order submission 

and cancellation. These Voluntary 

Professionals would participate on 

trades on the same terms as brokerdealer orders for purposes of the rules 

set forth above. Orders from Voluntary 

Professionals would continue to be 

treated as public customer orders for 

purposes of the linkage-related rules. 

CBOE would provide the same awaymarket protection for orders from 

Voluntary Professionals as for orders 

from public customers. Additionally, 

orders from Voluntary Professionals that 

are cancelled would not be counted as 

public customer order cancellations in 

connection with the cancellation fee 

calculation applicable to clearing 

members. The Exchange intends to 

establish, via a separate rule filing under 

Section 19(b) of the Act, a transaction 

fee applicable to Voluntary 

Professionals and the Exchange would 

not commence the Voluntary 

Professional program until such fee was 

in place. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,3 in general, and 

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

of the Act,4 in particular, in that it is 

designed to promote just and equitable 

principles of trade, serve to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and 

protect investors and the public interest. 

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. 


jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Notices 7339 

5 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. 57010 

(December 20, 2007); 72 FR 73928 (Dec. 28, 2007). 

4See letter from Neal E. Nakagiri, President, CEO 

& CCO, NPB Financial Group, LLC, dated January 

16, 2008 (‘‘NPB letter’’); letter from Dale E. Brown, 

President & CEO, Financial Services Institute, dated 

January 18, 2008 (‘‘FSI letter’’); and letter from 

Dorothy Donohue, Senior Associate Counsel, 

Investment Company Institute, dated January 18, 

2008 (‘‘ICI letter’’). 

5NASD established the Small Firms Rules Impact 

Task Force in September 2006 to examine how 

existing NASD rules impact smaller firms. In 

particular, the Task Force focuses on possible 

opportunities to amend or modernize certain 

conduct rules that may be particularly burdensome 

for small firms, where such changes are consistent 

with investor protection and market integrity. 

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 self-regulatory 

organization consents, 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 

rule-comments@sec.gov. Please include 

File Number SR–CBOE–2008–09 on the 

subject line. 

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–2008–09. 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 at (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 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–2008–09 and should 

be submitted on or before February 28, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.5

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–2266 Filed 2–6–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57257; File No. SR–FINRA–

2007–020] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Order Approving 

Proposed Rule Change To Create 

Exception to Principal Approval 

Requirements for Certain Filed Sales 

Material 

February 1, 2008. 

I. Introduction 

On November 1, 2007, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) (f/k/a National Association 

of Securities Dealers, Inc. (‘‘NASD’’)) 

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 relating to amendments to NASD 

Rule 2210. The proposed rule change 

was published for comment in the 

Federal Register on December 28, 

2007.3 The Commission received three 

comment letters in response to the 

proposed rule change.4 This order 

approves the proposed rule change. 

II. Description of the Proposed Rule 

Change 

The proposed rule change amends 

NASD Rule 2210 (Communications with 

the Public) to create an exception from 

the principal approval requirements for 

certain filed sales material. 

NASD Rule 2210 (Communications 

with the Public) requires that a 

registered principal of a FINRA member 

firm approve in writing all 

advertisements, sales literature, and 

independently prepared reprints 

(collectively, ‘‘sales material’’) prior to 

use. Certain types of sales materials, 

such as advertisements and sales 

literature concerning mutual funds or 

variable insurance products must be 

filed with the FINRA Advertising 

Regulation Department (‘‘Department’’). 

For funds and variable products that 

are sold through intermediary firms, a 

registered principal at the fund’s or 

variable product’s underwriter typically 

approves sales material internally and 

files the material with the Department. 

FINRA rules require registered 

principals at each of the intermediary 

firms that use the underwriter’s sales 

material to re-approve in writing each of 

these items used by their firms. (The 

intermediary firm is not required to refile the sales material with the 

Department so long as it is used without 

material change.) If firms have selling 

agreements with multiple fund families 

and insurance companies, the number 

of items that require re-approval can 

easily be in the hundreds, and often 

thousands, per firm annually. 

Based on recommendations made by 

its Small Firms Rules Impact Task 

Force,5 and to eliminate what FINRA 

regards as a compliance redundancy, 

FINRA proposed to create an exception 

to Rule 2210’s registered principal 

approval requirements for intermediary 

firms that use the sales material of 

another firm. The exception would 

apply only to sales material that another 

firm has filed with the Department, and 

for which the Department has issued a 


jlentini on PROD1PC65 with NOTICES