Document ID: SEC-2008-1179-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2008-08-26T04:00Z

[Federal Register: August 26, 2008 (Volume 73, Number 166)]
[
Notices]               
[Page 50379-50380]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26au08-102]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58394; File No. SR-CBOE-2008-85]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 

Incorporated; Notice of Filing and Immediate Effectiveness of a 

Proposed Rule Change Adopting a New Order Type

August 20, 2008.

    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 

(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 

on August 19, 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 modify Rule 6.53 (Certain Types of Orders 

Defined) to allow for the submission of attributable orders. The text 

of the proposed rule change is available on the Exchange's Web site 

(http://www.cboe.org/legal), at the Office of the Secretary, CBOE 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, 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 Exchange proposes to modify Rule 6.53 (Certain Types of Orders 

Defined) to allow for the submission of attributable orders.\3\ These 

orders allow users to voluntarily display their firm IDs on the orders. 

The NASDAQ Options Market, LLC (``NOM'') currently allows its 

participants to submit attributable orders (See NOM Chapter VI, Section 

(1)(d)(1)). As proposed, the Exchange may limit the systems/processes 

for which attributable orders will be available. For example, the 

attributable order-type may initially only be available in connection 

with certain Exchange auction processes like the Hybrid Agency Liaison 

system which ``flashes'' marketable orders for price improvement 

executions before those orders are routed to another market center 

pursuant to the Options Linkage Plan. This proposal is responsive to 

requests by Exchange users who believe that enhanced executions may be 

obtained if firm ID information is allowed on orders (on a voluntary 

basis).

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    \3\ A Firm ID is a 1-4 character identification code (letters 

and /or numbers). Each CBOE member firm may establish its own unique 

Firm ID.

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2. Statutory Basis

    Since this proposal allows for greater customization by providing 

users with an additional order type, the Exchange believes that the 

proposal is consistent with the Act \4\ and the rules and regulations 

thereunder and, in particular, the requirements of Section 6(b) of the 

Act.\5\ Specifically, the Exchange believes the proposal is consistent 

with the Section 6(b)(5) \6\ requirements that the rules of an exchange 

be designed to promote just and equitable principles of trade and to 

remove impediments to and to perfect the mechanism for a free and open 

market and a national market system.

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    \4\ 15 U.S.C. 78s(b)(1).

    \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 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

    The Exchange neither solicited nor received comments on the 

proposal.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 

Commission Action

    The proposed rule change is filed for immediate effectiveness 

pursuant to Section 19(b)(3)(A) \7\ of the Act and Rule 19b-4(f)(6) \8\ 

thereunder because it effects a change that (i) Does not significantly 

affect the protection of investors or the public interest; (ii) does 

not impose any significant burden on competition; and (iii) by its 

terms, does not become operative for 30 days after the date of the 

filing, or such shorter time as the Commission may designate if 

consistent with the protection of

[[Page 50380]]

investors and the public interest. At any time within 60 days of the 

filing of the proposed rule change, the Commission may summarily 

abrogate such rule change if it appears to the Commission that such 

action is necessary or appropriate in the public interest, for the 

protection of investors, or otherwise in furtherance of the purposes of 

the Act.

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    \7\ 15 U.S.C. 78s(b)(3)(A).

    \8\ 17 CFR 240.19b-4(f)(6).

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    The proposal may assist investors by allowing participants the 

benefits of attributable orders. Additionally, the Exchange provided 

the Commission with written notice of its intent to file the proposal, 

along with a brief description and text of the proposal, prior to the 

date of the filing of the proposal.

    For the foregoing reasons, this rule filing qualifies for immediate 

effectiveness as a ``non-controversial'' rule change under paragraph 

(f)(6) of Rule 19b-4 of the Act.

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-2008-85 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-2008-85. 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, on official 

business days between the hours of 10 a.m. and 3 p.m. Copies of the 

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-2008-85 and should be submitted on or before 

September 16, 2008.

    For the Commission, by the Division of Trading and Markets, 

pursuant to delegated authority.\9\

Florence E. Harmon,

Acting Secretary.

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    \9\ 17 CFR 200.30-3(a)(12).

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[FR Doc. E8-19785 Filed 8-25-08; 8:45 am]

BILLING CODE 8010-01-P