Federal Register / Vol. 75, No. 211 / Tuesday, November 2, 2010 / Notices 67411 

5 17 CFR 200.30–3(a)(27). 

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). 

D. Standards and Methods Ensuring 

Promptness, Accuracy and 

Completeness of Transaction Reports 

Not applicable. 

E. Rules and Procedures Addressed to 

Fraudulent or Manipulative 

Dissemination 

Not applicable. 

F. Terms of Access to Transaction 

Reports 

Not applicable. 

G. Identification of Marketplace of 

Execution 

Not Applicable. 

III. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed 

Amendments are 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–CTA/CQ–2010–04 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–CTA/CQ–2010–04. 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 Amendments that 

are filed with the Commission, and all 

written communications relating to the 

Amendments 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 Web 

site viewing and printing 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 Amendments also will be 

available for inspection and copying at 

the principal office of the CTA. 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–CTA/CQ–2010–04 and 

should be submitted on or before 

November 23, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.5

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27666 Filed 11–1–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63191; File No. SR–CBOE– 

2010–094] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Related to the Hybrid 

Automatic Execution Feature 

October 27, 2010. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 1 and Rule 19b–4 

thereunder,2notice is hereby given that 

on October 19, 2010, the Chicago Board 

Options Exchange, Incorporated 

(‘‘Exchange’’ or ‘‘CBOE’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange has 

designated the proposal as a ‘‘noncontroversial’’ 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 is proposing to amend 

CBOE Rule 6.13, CBOE Hybrid System’s 

Automatic Execution Feature, to 

provide additional clarity on the 

operation of the automatic execution 

feature. 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 

Exchange 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this filing is to amend 

Rule 6.13 to provide additional clarity 

on the operation of CBOE’s Hybrid 

System automatic execution feature. In 

particular, the Exchange is proposing to 

amend the rule as follows: 

First, the Exchange is proposing to 

include additional cross references in 

Rule 6.13 to Rules 6.13A, Simple 

Auction Liaison (SAL), 6.14, Hybrid 

Agency Liaison (HAL), 6.14A, Hybrid 

Agency Liaison 2 (HAL2) and 6.45B, 

Priority and Allocation of Trades in 

Index Options and Options on ETFs on 

the CBOE Hybrid System. While Rule 

6.13 already contains cross references to 

these four rules, the Exchange believes 

the inclusion of the added cross 

references will provide additional 

clarity on the existing operation and 

interaction of the various processes 

within in [sic] the Hybrid System. 

Second, Rule 6.13 provides that the 

Exchange will designate the order size 

and order origin codes that are eligible 

for automatic execution. The Exchange 

is proposing to amend the rule to clarify 

that the Exchange will also designate 

the order types (e.g., market, limit, 

contingency, etc.) that are eligible for 

automatic execution. The inclusion of 

this order type provision is consistent 

with various other CBOE Rules under 

which the Exchange designates order 

size, origin code and order type, e.g., 

Rules 6.14, 6.14A and 6.53, Certain 

Types of Orders Defined. 

Third, the Exchange is proposing to 

replace specific references in Rule 6.13 

to routing order to BART (the booth 


hsrobinson on DSK69SOYB1PROD with NOTICES
67412 Federal Register / Vol. 75, No. 211 / Tuesday, November 2, 2010 / Notices 

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)(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 this requirement. 9 17 CFR 200.30–3(a)(12). 

automated routing terminal) and an 

order entry firm’s booth printer with a 

general reference to an order entry 

firm’s booth. The Exchange no longer 

utilizes the particular system that it had 

referred [sic] as BART and believes that 

the general reference to routing an order 

to an order entry firm’s booth is more 

appropriate for its rules. 

Fourth, Rule 6.13 provides for certain 

price check parameters for HAL and 

HAL2 classes under which the Hybrid 

System will not automatically execute 

orders if the width between the 

Exchange’s best bid and best offer are 

not within an acceptable price range. 

The acceptable price range is no less 

than 1.5 times the corresponding bid/ 

ask differential requirements 

determined by the Exchange on a classby-class basis. The Exchange is 

proposing to clarify that the Exchange 

may determine to apply these price 

check parameters to market orders and/ 

or marketable limit orders. In addition, 

rather than cross reference 

corresponding bid/ask differential 

requirements, the Exchange is proposing 

to specify the minimum acceptable 

price range within Rule 6.13. 

Specifically, the acceptable price range 

will be no less than: $0.375 between the 

bid and offer for each option contract for 

which the bid is less than $2, $0.60 

where the bid is at least $2 but does not 

exceed $5, $0.75 where the bid is more 

than $5 but does not exceed $10, $1.20 

where the bid is more than $10 but does 

not exceed $20, and $1.50 where the bid 

is more than $20. These amounts are 

equal to 1.5 times the bid/ask 

differential requirements that the 

Exchange had in its rules at the time the 

price check parameters were adopted. 

Finally, the Exchange is making some 

non-substantive changes to simplify the 

language in the text and to make 

miscellaneous typographical changes, 

such as uncapitalizing the word ‘‘class,’’ 

deleting an extra word (‘‘Eligibility:’’) 

which appeared in the text twice, and 

renumbering certain paragraphs and 

revising certain headers so that the 

format is consistent with the remainder 

of the Rule. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder and, in particular, the 

requirements of Section 6(b) of the Act.5

Specifically, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 6 in that it is designed 

to promote just and equitable principles 

of trade, to prevent fraudulent and 

manipulative acts, to remove 

impediments to and to perfect the 

mechanism for a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest, by providing additional 

clarity on the operation of CBOE Hybrid 

System automatic execution feature. 

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 

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 does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative prior to 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, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act7 and Rule 19b–4(f)(6)(iii) 

thereunder.8

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend 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. 

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–2010–094 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–CBOE–2010–094. 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 Web site viewing and 

printing 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 

self-regulatory organization. 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–2010–094 and 

should be submitted on or before 

November 23, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27589 Filed 11–1–10; 8:45 am] 

BILLING CODE 8011–01–P 


hsrobinson on DSK69SOYB1PROD with NOTICES