[Federal Register: January 18, 2008 (Volume 73, Number 13)]
[Notices]
[Page 3496-3497]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18ja08-91]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57141; File No. SR-CBOE-2007-147]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1 Thereto Relating to Extension of the
iShares Russell 2000 Index Fund (IWM) Option Pilot Program
January 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 December 11, 2007, the Chicago Board Options Exchange,
Incorporated (``Exchange'' or ``CBOE'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared
substantially by the Exchange. On January 8, 2008, CBOE filed Amendment
No. 1 to the proposed rule change. The Exchange filed the proposal as a
``non-controversial'' proposed rule change pursuant to Section
19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which
renders the proposal effective upon filing with the Commission.\5\ The
Commission is publishing this notice to solicit comments on the
proposed rule change, as amended, 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).
\4\ 17 CFR 240.19b-4(f)(6).
\5\ CBOE gave the Commission written notice of its intent to
file the proposed rule change on November 28, 2007.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to extend an existing pilot program that
increases the position and exercise limits for options on the iShares
Russell 2000 Index Fund (``IWM options'') traded on the Exchange (``IWM
Option Pilot Program''). The text of the proposed rule change is
available at http://www.cboe.org/Legal, the Exchange's principal
office, and 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 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 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 IWM Option Pilot Program provides for increased position and
exercise limits for IWM options traded on the Exchange.\6\
Specifically, the IWM
[[Page 3497]]
Option Pilot Program increases the position and exercise limits for IWM
option from 250,000 contracts to 500,000 contracts.\7\
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\6\ The proposal that established the IWM Option Pilot Program
was effective and operative upon filing. See Securities Exchange Act
Release No. 55176 (January 25, 2007), 72 FR 4741 (February 1, 2007)
(SR-CBOE-2007-08). The IWM Option Pilot Program was extended, and is
due to expire on January 18, 2008. See Securities Exchange Act
Release No. 55926 (June 20, 2007), 72 FR 35275 (June 27, 2007) (SR-
CBOE-2007-61).
\7\ Exercise limits for IWM options are equivalent to the
position limits prescribed for IWM options in Rule 4.11.07 and the
increased exercise limits are only in effect during the IWM Option
Pilot Period. See Rule 4.12.02.
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The purpose of the instant proposed rule change is to extend the
IWM Option Pilot Program through March 1, 2008. The Exchange is not
proposing any other change to the IWM Option Pilot Program. The
Exchange believes that extending the IWM Pilot Program is warranted due
to the positive feedback received from market participants and for the
reasons cited in the original proposed rule changes that proposed the
adoption of the IWM Pilot Program. Also, the Exchange has not
encountered any problems or difficulties relating to the IWM Option
Pilot Program since its inception. For these reasons, the Exchange
proposes to extend the IWM Option Pilot Program for the aforementioned
additional period.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the requirements provided under Section 6(b)(5) of the Act,\8\ which
requires 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.
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\8\ 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
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
Because the foregoing 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 from the date on which it was filed, or
such shorter time as the Commission may designate if consistent with
the protection of investors and the public interest, provided that the
self-regulatory organization has given the Commission written notice of
its intent to file 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 proposed rule change has
become effective pursuant to Section 19(b)(3)(A) of the Act \9\ and
Rule 19b-4(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
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CBOE has requested the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing.
The Commission hereby grants CBOE's request \11\ and believes that
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest. The Commission notes that the IWM
Option Pilot Program was previously extended. In addition, waiver of
the 30-day operative period would allow the IWM Option Pilot Program to
continue uninterrupted.
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\11\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposal's impact on efficiency,
competition, and capital formation. 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 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.\12\
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\12\ For purposes of calculating the 60-day period within which
the Commission may summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission considers the period
to commence on January 8, 2008, the date on which the Exchange filed
Amendment No. 1.
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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-2007-147 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-2007-147. 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 CBOE. 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-2007-147 and should be submitted on
or before February 8, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-861 Filed 1-17-08; 8:45 am]
BILLING CODE 8011-01-P