Document ID: SEC-2009-1008-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change Regarding Authority Over C2 Options Exchange, Incorporated
Posted Date: 2009-07-22T04:00Z

[Federal Register: July 22, 2009 (Volume 74, Number 139)]
[Notices]               
[Page 36289-36290]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jy09-123]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60307; File No. SR-CBOE-2009-048]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of a Proposed Rule Change Regarding 
Authority Over C2 Options Exchange, Incorporated

July 15, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on July 2, 2009, the Chicago Board Options Exchange, Incorporated 
(the ``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 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 filing concerns CBOE's authority over C2 Options Exchange, 
Incorporated. 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.

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 self-regulatory organization 
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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The proposed rule change relates to CBOE's authority over C2 
Options Exchange, Incorporated (``C2''), a wholly-owned subsidiary of 
CBOE that has filed with the Commission to register as a self-
regulatory organization under Section 6 of the Exchange Act.\3\ The 
filing is intended to clarify CBOE's intent that, upon any approval of 
the Form 1 application seeking to establish C2 as a registered options 
exchange, CBOE will be responsible for ensuring that C2 will fulfill 
its self-regulatory obligations and will have the resources necessary 
for it to do so.\4\ The proposed

[[Page 36290]]

policy sets forth certain principles that will guide CBOE in its 
fulfillment of its responsibilities as parent company of C2 with 
ultimate responsibility for C2's compliance with its statutory 
responsibilities as a self-regulatory organization should the 
Commission grant C2's application for registration.\5\
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    \3\ See Securities and Exchange Act Release No. 59441 (February 
24, 2009), 74 FR 9322 (March 3, 2009) (File No. 10-191).
    \4\ The Commission notes that the first paragraph of proposed 
Rule 2.50 reads, in relevant part:
    C2 Options Exchange, Incorporated (``C2'') will be and remain a 
self-regulatory organization registered under Section 6 of the 
Exchange Act and as such will have statutory authority and 
responsibility concerning, among other things, the operation of its 
market and regulation of its members. As the parent company with 
100% controlling interest in C2, the Exchange will be responsible 
for ensuring that C2 meets its obligations as a self-regulatory 
organization.
    \5\ The Commission notes that the proposed principles set forth 
in proposed Rule 2.50 are as follows:
    1. The Exchange will exercise its powers and its managerial 
influence to ensure that C2 fulfills its self-regulatory obligations 
by:
    Directing C2 to take action necessary to effectuate its purposes 
and functions as a national securities exchange operating pursuant 
to the Exchange Act; and ensuring that C2 has and appropriately 
allocates such financial, technological, technical, and personnel 
resources as may be necessary or appropriate to meet its obligations 
under the Exchange Act.
    2. The Exchange will refrain from taking any action with respect 
to C2 that, to the best of its knowledge, would impede, delay, 
obstruct, or conflict with efforts by C2 to carry out its self-
regulatory obligations under the Exchange Act and the rules and 
regulations thereunder.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') \6\ and the rules and 
regulations thereunder and, in particular, the requirements of Section 
6(b) of the Act.\7\ Specifically, the Exchange believes the proposed 
rule change is consistent with the Section 6(b)(5) \8\ requirements 
that the rules of an exchange be 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.
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    \6\ 15 U.S.C. 78s(b)(1).
    \7\ 15 U.S.C. 78f(b).
    \8\ 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 impose any 
burden on competition 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 the self-regulatory organization 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.
    The Exchange has requested accelerated approval of this proposed 
rule change prior to the 30th day after the date of publication of 
notice in the Federal Register. The Commission is considering granting 
accelerated approval of the proposed rule change at the end of a 15-day 
comment period.

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-2009-048 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-2009-048. 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 the filing will also 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-2009-048 and should be submitted on or before August 6, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-17350 Filed 7-21-09; 8:45 am]

BILLING CODE 8010-01-P