Document ID: SEC-2008-0202-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2008-02-07T05:00Z

[Federal Register: February 7, 2008 (Volume 73, Number 26)]
[Notices]               
[Page 7338-7339]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07fe08-102]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57256; File No. SR-CBOE-2008-09]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of Proposed Rule Change Establishing a 
Voluntary Professional Designation

February 1, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on January 18, 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 adopt a voluntary professional 
designation. The text of the proposed rule change is available at CBOE, 
the Commission's Public Reference Room, and (http://www.cboe.org/Legal
).

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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
     This filing proposes to allow non-broker-dealer customers to 
voluntarily have their orders categorized as broker-dealer orders for 
order handling, order execution, and cancel fee calculation purposes 
(``Voluntary Professional(s)''). Specifically, these orders would be 
treated as broker-dealer orders for purposes of CBOE Rules 6.13 (CBOE 
Hybrid System's Automatic Execution Feature), 6.45 (Priority of Bids 
and Offers--Allocation of Trades), 6.45A (Priority and Allocation of 
Equity Option Trades on the CBOE Hybrid System), 6.45B (Priority and 
Allocation of Trades in Index Options and Options on ETFs on the CBOE 
Hybrid System), and 6.53C (Complex Orders on the Hybrid System).
    Some Exchange users have requested this flexibility because it is 
more suitable to their trading strategies that involve high volume 
order submission and cancellation. These Voluntary Professionals would 
participate on trades on the same terms as broker-dealer orders for 
purposes of the rules set forth above. Orders from Voluntary 
Professionals would continue to be treated as public customer orders 
for purposes of the linkage-related rules. CBOE would provide the same 
away-market protection for orders from Voluntary Professionals as for 
orders from public customers. Additionally, orders from Voluntary 
Professionals that are cancelled would not be counted as public 
customer order cancellations in connection with the cancellation fee 
calculation applicable to clearing members. The Exchange intends to 
establish, via a separate rule filing under Section 19(b) of the Act, a 
transaction fee applicable to Voluntary Professionals and the Exchange 
would not commence the Voluntary Professional program until such fee 
was in place.
2. Statutory Basis
     The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\3\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\4\ in particular, in that it 
is designed to promote just and equitable principles of trade, serve to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system, and protect investors and the 
public interest.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 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 that is not necessary or appropriate in 
furtherance of the purposes of the Act.

[[Page 7339]]

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.

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-2008-09 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-CBOE-2008-09. 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 at (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 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-2008-09 and should be 
submitted on or before February 28, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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 Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-2266 Filed 2-6-08; 8:45 am]

BILLING CODE 8011-01-P