Document ID: SEC-2011-1727-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2011-11-09T05:00Z

[Federal Register Volume 76, Number 217 (Wednesday, November 9, 2011)]
[Notices]
[Pages 69786-69787]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-29034]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65677; File No. SR-CBOE-2011-104]

Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated: Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Extend the Compliance Deadline for Registration and 
Qualification Pursuant to Rule 3.6A

November 3, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934,\1\ notice is hereby given that on October 31, 2011, the Chicago 
Board Options Exchange, Incorporated (``CBOE'' or the ``Exchange'') 
filed with the Securities and Exchange Commission the proposed rule 
change as described in Items I, II and III below, which Items have been 
prepared by CBOE. The Exchange has designated the proposed rule change 
as constituting a stated policy, practice, or interpretation with 
respect to the meaning, administration, or enforcement of an existing 
rule pursuant to Section 19(b)(3)(A)(i) of the Act \2\ and Rule 19b-
4(f)(1) thereunder,\3\ which renders the proposal effective upon filing 
with the Commission. 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\ 15 U.S.C. 78s(b)(3)(A)(i).
    \3\ 17 CFR 240.19b-4(f)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Pursuant to the provisions of Section 19(b)(1) of the Securities 
Exchange Act of 1934 (the ``Act''),\4\ the Exchange proposes to extend 
the October 29, 2011 deadline to November 5, 2011 to comply with its 
rules regarding registration and qualification of individual Trading 
Permit Holders and individual associated persons. CBOE is not proposing 
any textual changes to the Rules of CBOE. 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.
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    \4\ 15 U.S.C. 78s(b)(1).
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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 
Statutory Basis for, Proposed Rule Change

(1) Purpose
    Pursuant to Rule 15b7-1,\5\ promulgated under the Exchange Act,\6\ 
``No registered broker or dealer shall effect any transaction in * * * 
any security unless any natural person associated with such broker or 
dealer who effects or is involved in effecting such transaction is 
registered or approved in accordance with the standards of training, 
experience, competence, and other qualification standards * * * 
established by the rules of any national securities exchange * * *'' 
CBOE Rule 3.6A sets forth the requirements for registration and 
qualification of individual Trading Permit Holders and individual 
associated persons. In response to a request by the Division of Trading 
and Markets at the Securities and Exchange Commission (the 
``Commission'' or ``SEC''), CBOE recently amended its rules to expand 
its registration and

[[Page 69787]]

qualification requirements set forth in CBOE Rule 3.6A to include 
individual Trading Permit Holders and individual associated persons 
that are engaged or to be engaged in the securities business of a 
Trading Permit Holder or TPH organization.\7\ CBOE Rule 3.6A provides 
that these individuals must be registered with the Exchange in the 
category of registration appropriate to the function to be performed as 
prescribed by the Exchange. Further, Rule 3.6A requires, among other 
things, that an individual Trading Permit Holder or individual 
associated person submit an application for registration and pass the 
appropriate qualification examination before the registration can 
become effective. The revised requirements apply to both CBOE and CBOE 
Stock Exchange (``CBSX'') Trading Permit Holders and their associated 
persons.
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    \5\ 17 CFR 240.15b7-1.
    \6\ 15 U.S.C. 78a et seq.
    \7\ See Securities Exchange Act Release No. 63314 (November 12, 
2010), 75 FR 70957 (November 19, 2010) (SR-CBOE-2010-084).
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    In conjunction with the registration requirements established by 
SR-CBOE-2010-084, three new qualification examinations became available 
on June 20, 2011 in the Central Registration Depository system 
(``WebCRD''), which is operated by the Financial Industry Regulatory 
Authority, Incorporated (``FINRA''). These registration categories 
include the following (the required qualification examinations and 
prerequisites, as applicable, associated with each registration 
category are in parentheses): PT--Proprietary Trader (Series 56), CT--
Proprietary Trader Compliance Officer (Series 14, Series 56 
prerequisite) and TP--Proprietary Trader Principal (Series 24, Series 
56 prerequisite). In the Approval Order for SR-CBOE-2010-084, the SEC 
established a deadline of August 12, 2011 for CBOE and CBSX individual 
Trading Permit Holders and individual associated persons of CBOE and 
CBSX Trading Permit Holders to register for and pass the applicable 
qualification examination(s). CBOE recently submitted a rule filing 
extending the deadline until October 29, 2011.\8\ CBOE respectfully 
requests to extend the October 29, 2011 deadline to November 5, 2011.
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    \8\ See Securities Exchange Act Release No. 65224 (August 30, 
2011), 76 FR 55447 (September 7, 2011) (SR-CBOE-2011-081).
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(2) Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\9\ in general, and furthers the objectives of Section 6(b)(1) \10\ 
of the Act in particular, in that it is designed to enforce compliance 
by Exchange members and persons associated with its members with the 
rules of the Exchange. The Exchange also believes the proposed rule 
change furthers the objectives of Section 6(c)(3) \11\ of the Act, 
which authorizes CBOE to prescribe standards of training, experience 
and competence for persons associated with CBOE members, in that this 
filing is proposing to extend the deadline for compliance with the 
standards of training, experience and competence established by the 
Exchange. CBOE believes that its proposal is reasonable in that it 
provides a brief, one week extension for those individual Trading 
Permit Holders or individual associated persons that [sic] comply with 
the expanded registration and qualification requirements.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(1).
    \11\ 15 U.S.C. 78f(c)(3).
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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 that is not necessary or appropriate in 
furtherance of 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

    The foregoing proposed rule change will take effect upon filing 
with the Commission pursuant to Section 19(b)(3)(A)(i) of the Act \12\ 
and Rule 19b-4(f)(1) thereunder,\13\ because it constitutes a stated 
policy, practice, or interpretation with respect to the meaning, 
administration, or enforcement of an existing rule.
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    \12\ 15 U.S.C. 78s(b)(3)(A)(i).
    \13\ 17 C.F.R. 240.19b-4(f)(1).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend 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.

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 email to rule-comments@sec.gov. Please include 
File Number SR-CBOE-2011-104 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-2011-104. This file 
number should be included on the subject line if email 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 Web site viewing and 
printing 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 CBOE. 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 publicly available. All 
submissions should refer to File Number SR-CBOE-2011-104 and should be 
submitted on or before November 30, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-29034 Filed 11-8-11; 8:45 am]
BILLING CODE 8011-01-P