Document ID: SEC-2012-0312-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2012-02-23T05:00Z

[Federal Register Volume 77, Number 36 (Thursday, February 23, 2012)]
[Notices]
[Pages 10790-10791]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-4193]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66408; File No. SR-CBOE-2011-126]

Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Approving Proposed Rule Change Relating to the CBOE 
Stock Exchange Request for Quote Rules

February 16, 2012.
    On December 27, 2011, Chicago Board Options Exchange, Incorporated 
(``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 modify its rules relating to requests for 
quotes (``RFQs'') on the CBOE Stock Exchange (``CBSX''). The proposal 
removes the rule provisions affording CBSX participants the ability to 
submit RFQs. The proposed rule change was published for comment in the 
Federal Register on January 13, 2012.\3\ 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\ See Securities Exchange Act Release No. 66119 (January 9, 
2012), 77 FR 2112.
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    After careful review, 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 \4\ 
and, in particular, the requirements of Section 6(b)(5) of the Act,\5\ 
which requires that the Commission determine that the rules of the 
Exchange are designed to remove impediments to and perfect the 
mechanism for a free and open market. The proposal removes references 
pertaining to RFQs in the CBSX rules because the method of trading on 
CBSX obviates the need for an RFQ process. The Exchange represents that 
participants have not used, or inquired about using, RFQs on CBSX. 
Moreover, the systems of CBSX do not fully support transmitting RFQ 
messages. Given that the CBSX system for submitting RFQs is not 
currently functional, the Commission believes the removal of references 
to RFQs in the CBSX rules may prevent confusion among participants who 
may otherwise expect to be able to submit RFQs. For the foregoing 
reasons, the Commission

[[Page 10791]]

believes that the proposed rule change is consistent with the Act.
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    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-CBOE-2011-126) be, and it 
hereby is, approved.
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    \6\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-4193 Filed 2-22-12; 8:45 am]
BILLING CODE 8011-01-P