Document ID: SEC-2008-1316-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2008-09-26T04:00Z

[Federal Register: September 26, 2008 (Volume 73, Number 188)]
[Notices]               
[Page 55882-55883]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26se08-95]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58603; File No. SR-CBOE-2008-97]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of a Proposed Rule To Establish a CBSX-
Only Order Type

September 19, 2008.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is 
hereby given that on September 16, 2008, the 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 and II 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 change CBOE Stock Exchange (``CBSX'') Rule 
51.8, to adopt a CBSX-Only order. The text of the proposed rule change 
is available on the Exchange's Web site (http://www.cboe.com), at the 
Office of the Secretary, CBOE 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 self-regulatory organization 
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 those 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 parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this proposed rule change is to revise CBOE Stock 
Exchange (``CBSX'') Rule 51.8 to adopt a CBSX-Only order type. A CBSX-
only order is an order to buy or sell that is to be executed in whole 
or in part on CBSX, and the portion not so executed is to be cancelled, 
without routing the order to another market center or market 
participant, and without being ``flashed'' at the NBBO price to CBSX 
Traders pursuant to Rule 52.6 when CBSX is not at the NBBO and the 
order is marketable against the NBBO. Thus, a CBSX-Only order would 
either immediately execute on CBSX, get booked on CBSX (provided it 
does not cause a locked or crossed market), or cancel. Many exchanges 
have similar order-types (e.g. NSX Rule 11.11(c)(6)).
2. Statutory Basis
    The Exchange 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, by offering users 
greater control over order routing, 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.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).

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[[Page 55883]]

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 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

    The proposed rule change is filed for immediate effectiveness 
pursuant to section 19(b)(3)(A) of the Act \5\ and Rule 19b-4(f)(6) 
thereunder \6\ because it effects a change that (i) does not 
significantly affect the protection of investors or the public 
interest; (ii) does not impose any significant burden on competition; 
and (iii) by its terms, does not become operative for 30 days after the 
date of the filing, or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest.\7\
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(6).
    \7\ In addition, Rule 19b-4(f)(6) under the Act requires the 
self-regulatory organization to give the Commission written notice 
of its intent to file the proposed rule change, along with a brief 
description and text of the proposed rule change, at least five 
business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission. The 
Commission has determined to waive the five-day prefiling period in 
this case.
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    CBOE has requested the Commission to waive the 30-day operative 
delay because the proposal may assist investors by allowing greater 
control over order routing. The Commission hereby grants the Exchange's 
request and believes such waiver is consistent with the protection of 
investors and the public interest. The CBSX-only order is similar to 
orders currently available on other markets and does not appear to 
raise any novel or significant issues.\8\ Accordingly, the Commission 
designates the proposed rule change operative upon filing with the 
Commission.
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    \8\ For purposes only of waiving the 30-day operative delay of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. See 15 
U.S.C. 78c(f).
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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-2008-97 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

    All submissions should refer to File Number SR-CBOE-2008-97. 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 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-2008-97 and should be submitted on or before 
October 17, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-22656 Filed 9-25-08; 8:45 am]

BILLING CODE 8010-01-P