Document ID: SEC-2006-1146-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Chicago Board Options Exchange, Inc.
Posted Date: 2006-09-05T04:00Z

[Federal Register: September 5, 2006 (Volume 71, Number 171)]
[Notices]               
[Page 52351]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05se06-56]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54379; File No. SR-CBOE-2006-66]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Approving a Proposed Rule Change Regarding Market-
Maker Appointments

August 28, 2006.
    On July 11, 2006, 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'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to amend CBOE Rule 8.3 to provide 
that in the event a Market-Maker is a nominee of a member organization 
or has registered the Market-Maker's membership for a member 
organization, the member organization with which the Market-Maker is 
associated would be permitted to request that the Exchange deem all 
class appointments be made to the member organization instead of to the 
individual Market-Maker.\3\ In such a case, if an individual Market-
Maker were no longer associated with a member organization, the class 
appointments would continue to be held by the member organization and 
not the individual Market-Maker. In the event a member organization did 
not request that the class appointments be held by the member 
organization, a Market-Maker's class appointments would continue to be 
held in the name of the individual Market-Maker and not the member 
organization with which the Market-Maker is associated. The proposed 
rule change was published for comment in the Federal Register on July 
27, 2006.\4\ The Commission received no comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ If such a request is made by a member organization, CBOE 
would consider that the submission of electronic quotations and 
orders would be made by and on behalf of the member organization 
with which the individual Market-Maker is associated. However, CBOE 
proposes that CBOE Rule 8.3 would state that the individual Market-
Maker would continue to have all of the obligations of a Market-
Maker under Exchange rules in these circumstances.
    \4\ See Securities Exchange Act Release No. 54184 (July 20, 
2006), 71 FR 42690.
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    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 \5\ and, in 
particular, the requirements of Section 6 of the Act \6\ and the rules 
and regulations thereunder. The Commission specifically finds that the 
proposed rule change is consistent with Section 6(b)(5) of the Act \7\ 
in that it is designed to promote just and equitable principles of 
trade, to remove impediments and to perfect the mechanism of a free and 
open market and a national market system, and, in general, to protect 
investors and the public interest. The Commission believes that the 
proposal should provide more flexibility to Market-Maker organizations 
in structuring class appointments.
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    \5\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-CBOE-2006-66) is approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-14597 Filed 9-1-06; 8:45 am]

BILLING CODE 8010-01-P