[Federal Register: July 18, 2008 (Volume 73, Number 139)]
[Notices]
[Page 41386-41388]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18jy08-123]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58153; File No. SR-CBOE-2008-67]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Delete References to Hybrid 2.0 Platform and Hybrid 2.0
Option Classes
July 14, 2008.
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 9, 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 Exchange filed the proposal as a ``non-controversial''
proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
\3\ and Rule 19b-4(f)(6) thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its rules to delete references to
Hybrid 2.0 option classes and the Hybrid 2.0 Platform. The text of the
proposed rule change is available at the Exchange, 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, 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
CBOE proposes to amend its rules to delete references to Hybrid 2.0
option classes and the Hybrid 2.0 Platform. Initially, when CBOE
implemented its Hybrid Trading System in 2003, it permitted Market-
Makers to stream electronic quotes in their appointed classes provided
they were physically present at the trading station. CBOE subsequently
implemented an enhanced version of Hybrid called the Hybrid 2.0
Platform which allowed remote quoting in option classes, i.e., Hybrid
2.0 option classes. (See Rule 1.1(aaa).) Over time, CBOE migrated
nearly all of its option classes to the Hybrid 2.0 Platform and
permitted Market-Makers and formerly Remote Market-Makers \5\ to quote
remotely.\6\
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\5\ CBOE recently deleted reference to Remote Market-Makers in
its rules. All Remote Market-Makers are now called Market-Makers.
See Securities Exchange Act Release No. 57615 (April 3, 2008), 73 FR
19537 (April 10, 2008) (SR-CBOE-2007-120).
\6\ Presently, only three option classes are not traded on the
Hybrid 2.0 Platform--MVR, OEX, and SPX. These three option classes
are traded on the Hybrid 3.0 Platform, which is an electronic
trading platform on the Hybrid Trading System that allows a single
quoter to submit an electronic quote which represents the aggregate
Market-Maker quoting interest in a series for the trading crowd.
(See Rule 1.1(aaa).) CBOE is not deleting reference to the Hybrid
3.0 Platform in this rule filing.
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[[Page 41387]]
In light of these changes, CBOE no longer believes it is necessary
to distinguish in its rules between Hybrid option classes and Hybrid
2.0 option classes. Accordingly, CBOE proposes to delete the references
in its rules to the Hybrid 2.0 Platform and Hybrid 2.0 option classes.
Going forward, all option classes, except for the three traded on the
Hybrid 3.0 Platform, would be referred to as Hybrid classes and traded
on the Hybrid Trading System. CBOE also proposes to delete reference to
``non-Hybrid'' classes, since there are not any of these classes.
Finally, CBOE proposes to make other technical changes to its rules
necessitated by the deletion of Hybrid 2.0 option classes and the
Hybrid 2.0 Platform, such as deleting duplicative material.
CBOE believes that the foregoing changes to the rules are simply
administrative in nature and are not substantive.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations under the Act applicable to a
national securities exchange and, in particular, the requirements of
Section 6(b) of the Act. Specifically, the Exchange believes the
proposed rule change is consistent with the Section 6(b)(5) Act \7\
requirements that the rules of an exchange be designed to promote just
and equitable principles of trade, to prevent fraudulent and
manipulative acts and, in general, to protect investors and the public
interest. Deleting the references to Hybrid 2.0 option classes and the
Hybrid 2.0 Platform also will eliminate any confusion regarding the
trading platforms on which certain option classes trade.
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\7\ 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 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
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change does not: (i) Significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days after the date of filing, or such shorter time as the Commission
may designate if consistent with the protection of investors and the
public interest, the proposed rule change has become effective pursuant
to Section 19(b)(3)(A) of the Act \8\ and subparagraph (f)(6) of Rule
19b-4 thereunder.\9\ As required under Rule 19b-4(f)(6)(iii),\10\ CBOE
provided the Commission with 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 5 days prior to the filing of the
proposed rule change.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 17 CFR 240.19b-4(f)(6)(iii).
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A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to the 30th day after the date of
filing.\11\ However, Rule 19b-4(f)(6)(iii) \12\ permits the Commission
to designate a shorter time if such action is consistent with the
protection of investors and the public interest. CBOE requested that
the Commission waive the 30-day operative delay and make the proposed
rule change operative upon filing because deleting the references to
Hybrid 2.0 option classes and the Hybrid 2.0 Platform is administrative
in nature and does not substantively change CBOE's rules. Additionally,
by making these changes, CBOE believes it will eliminate confusion as
to the whether an option class is traded on the Hybrid Trading System
or Hybrid 2.0 Platform. For these reasons, the Commission believes that
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest. Accordingly, the Commission
designates the proposed rule change operative upon filing with the
Commission.\13\
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\11\ See id.
\12\ Id.
\13\ For purposes only of waiving the 30-day operative delay,
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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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate the 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 e-mail to rule-comments@sec.gov. Please include
File Number SR-CBOE-2008-67 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-2008-67. 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 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-2008-67 and should be
submitted on or before August 8, 2008.
[[Page 41388]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-16460 Filed 7-17-08; 8:45 am]
BILLING CODE 8010-01-P