Document ID: SEC-2012-1291-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2012-08-07T04:00Z

[Federal Register Volume 77, Number 152 (Tuesday, August 7, 2012)]
[Notices]
[Pages 47147-47148]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-19287]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67560; File No. SR-CBOE-2012-072]

Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Update References in Rules

August 1, 2012.
    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 26, 2012, 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, II and III 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 Exchange proposes to update references in the CBOE Rules. The 
text of the proposed rule change is available on the Exchange's Web 
site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at 
the Exchange's Office of the Secretary, 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 Exchange 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. The Exchange 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
    The Exchange proposes to amend its Rule 8.7.--Obligations of 
Market-Makers, Rule 8.51.--Firm Disseminated Market Quotes and Rule 
43.14.--Firm Quotations to update references. Each of these rules 
refers to Rule 11Ac1-1 under the Securities Exchange Act of 1934 
(``Exchange Act''). However, as of August 29, 2005, the Securities and 
Exchange Commission (the ``Commission'') adopted new rules under 
Regulation National Market System (``Regulation NMS''), which 
redesignated the national market system rules that previously existed 
under Rule 11Ac1-1. Therefore, the Exchange proposes to update each of 
the references to Rule 11Ac1-1. All general references to Rule 11Ac1-1 
in CBOE Rules 8.7, 8.51, and 43.14 will now refer to Rule 602 of 
Regulation NMS.
    Additionally, the term ``Responsible Broker or Dealer'' as 
referenced in CBOE Rule 8.51 as having the meaning prescribed in Rule 
11Ac1-1 will now have the meaning prescribed in Rule 600(b)(65) of 
Regulation NMS (the definition of the term did not substantively 
change, only the reference). In CBOE Rule 43.14--Firm Quotations, 
reference to Rule 11Ac1-1(b)(3), which contains provisions regarding 
relieving responsible brokers or dealers of obligations in unusual 
market conditions, will now refer to Rule 602(a)(3) of Regulation NMS 
(where such provisions are now contained). Additionally, in CBOE Rule 
43.14, reference to Rule 11Ac1-1(c)(3), which contains exceptions from 
execution obligations for responsible brokers and dealers, will now 
refer to Rule 602(b)(3) of Regulation NMS (where such exceptions are 
now contained).
    The Exchange also proposes to add an end-parentheses that was 
mistakenly left out of the end of paragraph (a)(1) of Rule 8.51.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act and the rules and regulations thereunder applicable to the 
Exchange and, in particular, the requirements of Section 6(b) of the 
Act.\3\ Specifically, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \4\ 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.

[[Page 47148]]

Updating Rules 8.7, 8.51, and 43.14 provides clarity to the Exchange's 
rule references. The proposed rule updates (and added end-parentheses) 
eliminate confusion, thereby removing impediments to, and perfecting 
the mechanism for a free and open market and a national market system, 
and, in general, protecting 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.

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 
proposed rule change.

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

    Because the foregoing proposed rule change does not:
    A. Significantly affect the protection of investors or the public 
interest;
    B. Impose any significant burden on competition; and
    C. Become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to Section 19(b)(3)(A) \5\ of the Act and 
Rule 19b-4(f)(6) \6\ thereunder.
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of the filing of this 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-2012-072 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-2012-072. 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 
10:00 a.m. and 3:00 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-2012-072 and should be 
submitted on or before August 28, 2012.

    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. 2012-19287 Filed 8-6-12; 8:45 am]
BILLING CODE 8011-01-P