Document ID: SEC-2007-1542-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Chicago Board Options Exchange, Inc.
Posted Date: 2007-11-14T05:00Z

[Federal Register: November 14, 2007 (Volume 72, Number 219)]
[Notices]               
[Page 64096-64097]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14no07-85]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56762; File No. SR-CBOE-2007-129]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of Proposed Rule Change Regarding the 
CBSX Floor Post

November 7, 2007.
    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 November 2, 2007, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' or ``Exchange'') 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

[[Page 64097]]

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 change CBOE Stock Exchange (``CBSX'') 
rules relating to the CBSX Floor Post. The text of the proposed rule 
change is available at CBOE's principal office, 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. 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    CBSX is the Exchange's stock trading facility. It is an all-
electronic trading platform. In connection with the establishment of 
CBSX, the Exchange created a space on the CBOE trading floor (apart 
from the equity option trading posts) to allow for in-person price 
discovery. All CBSX Designated Primary Market-Makers (``DPMs'') 
currently are required to maintain personnel at this post (the ``Floor 
Post'') to respond to price discovery inquiries from brokers. Any 
resulting orders/trades are entered and processed electronically. There 
is no open-outcry trading on CBSX.
    The proposed rule change has two purposes. First, the filing 
proposes to modify Rule 51.12 to state that CBSX ``may'' maintain a 
Floor Post. Currently, Rule 51.12 contemplates that CBSX ``will'' 
maintain a Floor Post. Although the Exchange intends to continue to 
maintain the Floor Post, this change will provide the flexibility to 
remove the Floor Post if at a later time the Exchange deems such action 
prudent.
    The second change is to eliminate the requirement that CBSX DPMs 
maintain personnel at the Floor Post. As proposed, it would be optional 
for CBSX DPM firms to staff the Floor Post. Certain CBSX DPMs have 
requested this change, noting that it would allow them to more 
efficiently allocate resources. The Exchange believes that a change to 
this requirement would have absolutely no adverse impact to trading on 
CBSX.
2. Statutory Basis
    CBOE believes 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, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and to 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

    The Exchange does not believe that the proposed rule change would 
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

    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 Exchange consents, the Commission will:
    (A) By order approve the 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-2007-129 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-2007-129. 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, 100 F Street, NE., 
Washington, DC 20549, 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-2007-129 and should be 
submitted on or before December 5, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
Florence E. Harmon,
Deputy Secretary.
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    \5\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E7-22166 Filed 11-13-07; 8:45 am]

BILLING CODE 8011-01-P