Document ID: SEC-2008-0864-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2008-06-30T04:00Z

[Federal Register: June 30, 2008 (Volume 73, Number 126)]
[Notices]               
[Page 36937-36939]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30jn08-129]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57996; File No. SR-CBOE-2008-59]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of Proposed Rule Change To Amend CBOE 
Rule 8.7 Related to the Obligations of Market-Makers

June 20, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934

[[Page 36938]]

(``Act'') \1\ and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on June 11, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend CBOE Rule 8.7 (Obligations of 
Market-Makers). 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, 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
    The Exchange proposes to add an interpretation to CBOE Rule 8.7 
(Obligations of Market-Makers) to clarify that the in-person 
requirements set forth in CBOE 8.7.03B may be satisfied by market-
makers either individually or collectively with market-makers of the 
same member organization. The Exchange recently amended CBOE Rule 8.1 
(Market-Maker Defined) expanding the definition of market-maker to 
include member organizations.\3\ In view of the recent amendment of 
CBOE Rule 8.1, the Exchange believes that the in-person requirements 
set forth in CBOE Rule 8.7.03B may be satisfied by market-makers either 
individually or collectively with market-makers of the same member 
organization. The Exchange notes that CBOE Rule 8.7.03B only applies to 
Hybrid 3.0 option classes.\4\ Currently, there are three Hybrid 3.0 
option classes: Standard & Poor's 500 Index (SPX), Standard & Poor's 
100 Index (OEX) and Morgan Stanley Retail Index (MVR).
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    \3\ See Securities Exchange Act Release No. 57615 (April 3, 
2008), 73 FR 19537 (April 10, 2008) (SR-CBOE-2007-120).
    \4\ CBOE Rule 8.7.03B applies to both non-Hybrid and Hybrid 3.0 
option classes. However, there currently are not any non-Hybrid 
options classes. Telephone conference between Andrew Spiwak, 
Assistant Corporate Secretary, CBOE and Ronesha A. Butler, Special 
Counsel, Division of Trading and Markets, Commission dated June 19, 
2008.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\5\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\6\ in particular, in that it 
would promote just and equitable principles of trade, facilitate 
transactions in securities, remove impediments to and perfect the 
mechanisms of a free and open market and a national market system, and 
protect investors and the public interest. Specifically, the Exchange 
believes that the proposed rule change will strengthen its ability to 
carry out its oversight responsibilities as a self-regulatory 
organization and reinforce its surveillance and enforcement functions.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE does not believe that the proposed rule change will result in 
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 CBOE 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-2008-59 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-2008-59. 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-2008-59 and 
should be submitted on or before July 21, 2008.

[[Page 36939]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-14762 Filed 6-27-08; 8:45 am]

BILLING CODE 8010-01-P