[Federal Register: March 25, 2008 (Volume 73, Number 58)]
[Notices]
[Page 15814-15815]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25mr08-106]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57487; File No. SR-CBOE-2008-28]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposal
To Make Clean-Up Changes by Amending Certain Rules
March 13, 2008.
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 March 10, 2008, 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 substantially 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\
which renders the proposal effective upon filing with the Commission.
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
CBOE proposes to make clean-up changes by deleting certain portions
of rules containing an obsolete term, replacing a reference to
``Nasdaq-100 Index Tracking Stock'' with ``PowerShares QQQ Trust,''
correcting mis-lettering, and making a spelling correction. The text of
the rule proposal is available on the Exchange's Web site (http://
www.cboe.org/legal), at the Exchange's Office of the Secretary and at
the Commission.
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
Statutory Basis for, the Proposed Rule Change
1. Purpose
CBOE proposes to make clean-up changes by deleting certain portions
of rules containing an obsolete term, replacing a reference to
``Nasdaq-100 Index Tracking Stock'' with ``PowerShares QQQ Trust,''
correcting mis-lettering, and making a spelling correction. Deletion of
Obsolete Term--``Board Broker''.
In 2005, the Exchange submitted a rule filing in which the Exchange
proposed, among other things, to delete rules or portions thereof
pertaining to Board Brokers.\5\ As explained in that filing, the
Exchange had not used Board Brokers for approximately 22 years, and did
not intend to use them in the future. Accordingly, the Exchange
proposed to delete several rules or portions thereof pertaining to
Board Brokers.
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\5\ See Securities Exchange Act Release No. 52824 (November 22,
2005), 70 FR 72318 (December 2, 2005) (SR-CBOE-2005-69). In this
filing, the Exchange explained that a Board Broker is an individual
member, a nominee of a member organization or a member organization
who or which is registered with the Exchange for the purposes of (i)
acting as a ``broker's broker'' for specified classes of options, at
the post at which such classes of options are traded, by accepting
and attempting to execute orders placed with him by other members,
and (ii) monitoring the market for such classes of options at the
post.
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In the 2005 filing, the Exchange inadvertently omitted Rules 3.1,
6.6, 6.73, 7.6 and 8.7, which still contain references to Board
Brokers. In this filing, the Exchange proposes to delete portions of
the aforementioned rules that contain references to Board Brokers for
the reasons stated in the 2005 filing. Also, the Exchange proposes to
make a spelling correction to Interpretation and Policy .01 to Rule
6.6.
Amend Rule 6.1.03 To Reflect Updated Exchange Traded Fund Name
In connection with the March 21, 2007 transfer of sponsorship of
the Nasdaq-100 Trust, the name of the trust was changed from the
``Nasdaq-100 Index Tracking Stock'' to the ``PowerShares QQQ Trust''
(``QQQQ''). The Exchange proposes to amend Interpretation and Policy
.03 to Rule 6.1 to reflect the updated name of the QQQQ.
Correct Mis-Lettering of Rule 4.11.02
The Exchange proposes to correct the mis-lettering of
Interpretation and Policy .02 to Rule 4.11, which currently goes from c
to e.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirements provided under Section 6(b)(5) of the Act,\6\
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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\6\ 15 U.S.C. 78(f)(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
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(6) thereunder,\8\ because
the foregoing rule 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.
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative prior to 30 days after
[[Page 15815]]
the date of filing.\9\ However, Rule 19b-4(f)(6)(iii) permits the
Commission to designate a shorter time if such action is consistent
with the protections of investors and the public interest.\10\ The
Exchange has requested that the Commission waive the 30-day operative
date, so that the Exchange's rules may be updated as soon as possible
to reflect the clean-up changes proposed in this filing. The Commission
believes that the proposed rule change does not raise any new
regulatory issues. For this reason, the Commission designates the
proposal to be operative upon filing with the Commission.\11\
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\9\ Id.
\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ For purposes of waiving the operative date of this
proposal, the Commission has considered the proposed rule'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 such 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.
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-2008-28 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-2008-28. 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 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-2008-28 and should be submitted on or before April 15, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-5918 Filed 3-24-08; 8:45 am]
BILLING CODE 8011-01-P