Document ID: SEC-2007-1783-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Chicago Board Options Exchange, Inc.
Posted Date: 2007-12-28T05:00Z

[Federal Register: December 28, 2007 (Volume 72, Number 248)]
[Notices]               
[Page 73918-73919]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28de07-183]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56997; File No. SR-CBOE-2007-129]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Approving a Proposed Rule Change Regarding the CBSX 
Floor Post

December 19, 2007.
    On November 2, 2007, the Chicago Board Options Exchange, 
Incorporated (``CBOE'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of 
the Securities Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ 
and Rule 19b-4 thereunder,\2\ a proposal to eliminate from the rules of 
the CBOE Stock Exchange (``CBSX'') the requirement that CBSX maintain a 
space on the CBOE trading floor to allow for in-person price discovery 
in CBSX securities (the ``Floor Post'') and the requirement that CBSX 
Designated Primary Market-Makers (``DPMs'') staff the Floor Post. The 
proposal was published for comment in the Federal Register on November 
14, 2007.\3\ The Commission received no comments on the proposal. This 
order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 56762 (November 7, 
2007), 72 FR 64096.
---------------------------------------------------------------------------

    CBSX is the Exchange's stock trading facility. It is an all-
electronic trading platform. In connection with the establishment of 
CBSX, the Exchange established a Floor Post on the CBOE trading floor 
(apart from the equity option trading posts) to allow for in-person 
price discovery. All CBSX DPMs currently are required to maintain 
personnel at the Floor Post to respond to price discovery inquiries 
from brokers. Any resulting orders/trades are entered and processed 
electronically. There is no open-outcry trading on CBSX.
    The Exchange proposes to modify Rule 51.12 to state that CBSX 
``may'' maintain a Floor Post. Currently, Rule 51.12 states that CBSX 
``will'' maintain a Floor Post. The Exchange stated that

[[Page 73919]]

it intends to continue to maintain the Floor Post; however, this change 
will permit the Exchange to remove the Floor Post if at a later time 
the Exchange deems such action prudent.
    The Exchange also proposes to eliminate the requirement that CBSX 
DPMs maintain personnel at the Floor Post. As proposed, it would be 
optional for CBSX DPM firms to staff the Floor Post. The Exchange 
stated that some CBSX DPMs have requested this change to allow them to 
more efficiently allocate resources.
    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange.\4\ 
Specifically, the Commission finds that the proposal is consistent with 
Section 6(b)(5) of the Act,\5\ which requires that the Exchange's rules 
be designed to promote just and equitable principles of trade, to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system, and to protect investors and the 
public interest.
---------------------------------------------------------------------------

    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (File No. SR-CBOE-2007-129) be, 
and it hereby is, approved.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-25182 Filed 12-27-07; 8:45 am]

BILLING CODE 8011-01-P