Document ID: SEC-2007-1658-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Board of Trade of the City of Chicago, Inc.
Posted Date: 2007-12-07T05:00Z

[Federal Register: December 7, 2007 (Volume 72, Number 235)]
[Notices]               
[Page 69262-69263]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07de07-90]                         

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SECURITIES AND EXCHANGE COMMISISON

[Release No. 34-56873; File No. SR-CBOT-2007-01]

 
Self-Regulatory Organization; Board of Trade of the City of 
Chicago, Inc.; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Changes Relating to the Renumbering and Reorganization of Rules 
Relating to Listing Standards for Security Futures Products

November 30, 2007.
    Pursuant to section 19(b)(7) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-7 under the Act,\2\ notice is hereby given 
that on November 1, 2007, the Board of Trade of the City of Chicago, 
Inc. (``CBOT[supreg]'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rules described in 
Items I, II, and III below, which Items have been substantially 
prepared by the CBOT. The Commission is publishing this notice to 
solicit comments on the proposed rules from interested persons. The 
CBOT also has filed the proposed rules with the Commodity Futures 
Trading Commission (``CFTC''), together with a written certification 
under section 5c(c) of the Commodity Exchange Act (``CEA'') \3\ on 
October 25, 2007.
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    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 17 CFR 240.19b-7.
    \3\ 7 U.S.C. 7a-2(c).
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I. Self-Regulatory Organization's Description of the Proposed Rules

    The proposed rule changes delete CBOT Rulebook Chapter 57 (Single 
Stock Futures) and Chapter 58 (Narrow-Based Stock Index Futures) in 
their entirety and substitute new CBOT Rulebook Chapter 34 (Single 
Stock Futures) and Chapter 35 (Narrow-Based Stock Index Futures). In 
addition, the proposed rule changes renumber current CBOT Regulations 
431.07 (Customer Margins for Security Futures Positions Held in Futures 
Accounts) and 431.08 (Acceptable Margin for Security Futures and 
Treatment of Undermargined Accounts) as Rules 931 and 932.
    The text of the proposed rule change is available on the Exchange's 
Web site (http://www.cmegroup.com), at the Exchange's principal office, 

and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rules

    The CBOT has prepared statements concerning the purpose of, and 
basis for, the proposed rules, burdens on competition, and comments 
received from members, participants, and others. The text of these 
statements may be examined at the places specified in Item IV below. 
These statements are set forth in sections A, B, and C below.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rules

1. Purpose
    The CBOT has proposed to substitute new rulebook Chapters 34 and 35 
for current Chapters 57 and 58, and to renumber current Regulations 
431.07 and 431.08 as Rules 931 and 932 in connection with the adoption 
of a new rulebook for the CBOT as a result of the merger between the 
CBOT's former holding company, CBOT Holdings, Inc., and the former 
holding company of Chicago Mercantile Exchange Inc., CME Holdings Inc., 
to form the CME Group.\4\ The CBOT is adopting a new rulebook, in order 
to harmonize its rules with those of Chicago Mercantile Exchange Inc. 
(``CME''), which utilizes the formatting and numbering system of the 
CME rulebook. New CBOT rulebook Chapters 34 and 35 mirror current CBOT 
Chapters 57 and 58 in content, although the organization and numbering 
of the rules has changed. Several minor non-substantive changes have 
also been made, as follows: (1) All references to the ``Clearing 
Services Provider'' have been changed to the ``Clearing House'' to 
reflect the new relationship of the CME Clearing House to the CBOT 
post-merger; (2) all references to CBOT ``regulations'' have been 
changed to ``rules'' because the CBOT will no longer make any 
distinctions between Exchange ``rules'' and ``regulations''; and (3) 
current Regulation 5702.01 and its parallel Regulation 5802.01 
(Emergencies, Acts of God, Acts of Government) have been deleted as 
unnecessary since the CBOT is adopting a similar Rule in its new 
Chapter 7 (Delivery Facilities and

[[Page 69263]]

Delivery Procedures) that applies generally to all CBOT products.\5\ 
New Rules 931 and 932 are identical to current Regulations 431.07 and 
431.08.
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    \4\ The CBOT certified its new rulebook to the CFTC on October 
25, 2007, notifying the CFTC that most of its new rules would be 
implemented on November 29, 2007, including the proposed rule 
changes that are addressed in this filing.
    \5\ See CBOT Rule 701, as certified to the CFTC on October 25, 
2007.
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2. Statutory Basis
    The Exchange has filed these proposed regulations pursuant to 
section 19(b)(7) of the Act.\6\ The CBOT believes that these rules, as 
renumbered and reorganized, continue to be authorized by, and 
consistent with, section 6(b)(5) of the Act,\7\ because they are 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, and to protect 
investors and the public interest.
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    \6\ 15 U.S.C. 78s(b)(7).
    \7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The CBOT does not believe that the proposed rule changes will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. Since the proposed rule 
changes will permit the CBOT to provide a trading venue for security 
futures, these rules will serve to enhance and promote competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rules Received From Members, Participants, or Others

    The CBOT neither solicited nor received any written comments on the 
proposed regulations.

III. Date of Effectiveness of the Proposed Rules and Timing for 
Commission Action

    Pursuant to section 19(b)(7)(B) of the Act,\8\ the proposed 
regulations became effective on October 26, 2007.\9\ Within 60 days of 
the date of effectiveness of the proposed regulations, the Commission, 
after consultation with the CFTC, may summarily abrogate the proposed 
regulations and require that the proposed regulations be re-filed in 
accordance with the provisions of section 19(b)(1) of the Act.\10\
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    \8\ 15 U.S.C. 78s(b)(7)(B).
    \9\ The CBOT filed the proposed regulations with the CFTC, 
together with a written certification under Section 5c(c) of the 
CEA, 7 U.S.C. 7a-2(c), on October 25, 2007.
    \10\ 15 U.S.C. 78s(b)(1).
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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-CBOT-2007-01 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-CBOT-2007-01. 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 such filing will also be available for 
inspection and copying at the principal office of the CBOT. All 
comments received will be posted without change; the Commission does 
not edit identifying personal information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File No. SR-CBOT-2007-01 and should be 
submitted on or before December 28, 2007.
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    \11\ 17 CFR 200.30-3(a)(73).

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-23721 Filed 12-6-07; 8:45 am]

BILLING CODE 8011-01-P