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Federal Register / Vol. 70, No.

53 / Monday, March 21, 2005 / Notices 13557

including whether the proposed rule SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
change is consistent with the Act. COMMISSION Statement of the Purpose of, and
Comments may be submitted by any of Statutory Basis for, the Proposed Rule
the following methods: [Release No. 34–51371; File No. SR–CBOE– Change
2005–23]
Electronic Comments 1. Purpose
Self-Regulatory Organizations; Notice On March 14, 2005, the Commission
• Use the Commission’s Internet of Filing of Proposed Rule Change by approved rules governing the
comment form (http://www.sec.gov/ the Chicago Board Options Exchange, Exchange’s RMM Program.3 The RMM
rules/sro.shtml); or Incorporated To Amend CBOE Rule 8.4 Program would allow members and
• Send an e-mail to To Remove the Physical Trading member firms to elect status as an RMM,
rulecomments@sec.gov. Please include Crowd Appointment Alternative for which would enable them to stream
File Number SR–Amex–2005–027 on Remote Market-Makers and To Create quotes from a location outside of the
the subject line. an ‘‘A+’’ Tier Consisting of the Two physical trading station for the subject
Most Actively-Traded Products on the class. The Exchange’s original plans
Paper Comments Exchange called for the 600 most actively-traded
• Send paper comments in triplicate March 15, 2005.
equity option classes to be part of the
to Jonathan G. Katz, Secretary, RMM Program, excluding options on
Pursuant to section 19(b)(1) of the exchange-traded funds. Recently,
Securities and Exchange Commission, Securities Exchange Act of 1934 however, the Exchange has determined
450 Fifth Street, NW., Washington, DC (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 to include two of its most actively-
20549–0609. notice is hereby given that on March 15, traded products in the RMM Program
All submissions should refer to File 2005, the Chicago Board Options (and, correspondingly, include them on
Number SR–Amex–2005–027. This file Exchange, Incorporated (‘‘CBOE’’ or the Hybrid 2.0 Platform), options on
number should be included on the ‘‘Exchange’’) filed with the Securities Standard & Poor’s Depositary Receipts
subject line if e-mail is used. To help the and Exchange Commission (‘‘Spiders’’) and options on the Nasdaq-
Commission process and review your (‘‘Commission’’) the proposed rule 100 Index Tracking Stock. The CBOE
comments more efficiently, please use change as described in items I, II, and represents that the purpose of this
only one method. The Commission will III below, which items have been proposal is to amend the RMM rules
post all comments on the Commission’s prepared by CBOE. The Commission is relating to appointments in order to
Internet Web site (http://www.sec.gov/ publishing this notice to solicit accommodate the inclusion of these two
rules/sro.shtml). Copies of the comments on the proposed rule change products in the RMM Program.
submission, all subsequent from interested persons. Elimination of Physical Trading
amendments, all written statements Crowd Appointment. CBOE Rule 8.4(d)
I. Self-Regulatory Organization’s
with respect to the proposed rule governs the RMM appointment process
Statement of the Terms of Substance of
change that are filed with the and provides that an RMM may choose
the Proposed Rule Change
Commission, and all written either a PTC or Virtual Trading Crowd
CBOE proposes to amend CBOE Rule (‘‘VTC’’) appointment. A PTC
communications relating to the
8.4(d) to remove the Physical Trading Appointment corresponds to the
proposed rule change between the
Crowd (‘‘PTC’’) appointment alternative location of a physical trading station on
Commission and any person, other than
for Remote Market-Makers (‘‘RMMs’’) the floor of the CBOE.4 The Exchange
those that may be withheld from the
and to create an ‘‘A+’’ tier consisting of proposes to eliminate the PTC
public in accordance with the the two most actively-traded products
provisions of 5 U.S.C. 552, will be appointment option and, as a result,
on the Exchange. The text of the RMMs would be required to have a VTC
available for inspection and copying in proposed rule change is available on the appointment. CBOE represents that, in
the Commission’s Public Reference CBOE’s Web site (http:// its discussions with its members,
Room. Copies of the filing also will be www.cboe.com), at the CBOE’s Office of member organizations, and other
available for inspection and copying at the Secretary, and at the Commission’s potential RMM candidates, it has
the principal office of the Amex. All Public Reference Room. become evident that there is little if any
comments received will be posted interest in the ability to have a PTC
without change; the Commission does II. Self-Regulatory Organization’s
Statement of the Purpose of, and appointment. The CBOE further
not edit personal identifying represents that a vast majority of
information from submissions. You Statutory Basis for, the Proposed Rule
Change potential RMMs have indicated that the
should submit only information that ability to choose their own
you wish to make available publicly. All In its filing with the Commission, the appointments is the attribute of the
submissions should refer to File Exchange included statements RMM Program they find most desirable.
Number SR–Amex–2005–027 and concerning the purpose of and basis for For this reason, CBOE has determined to
should be submitted on or before April the proposed rule change and discussed eliminate from CBOE Rule 8.4(d) the
11, 2005. any comments it received on the PTC appointment option.
For the Commission, by the Division of proposed rule change. The text of these Creation of an ‘‘A+’’ Tier. The RMM
Market Regulation, pursuant to delegated statements may be examined at the rules incorporate the concept of ‘‘tiers’’
authority.8 places specified in item IV below. The in two instances. First, the VTC
Margaret H. McFarland,
Exchange has prepared summaries, set
forth in sections A, B, and C below, of 3 See Securities Exchange Act Release No. 51366.
Deputy Secretary. the most significant aspects of such 4 An RMM that chooses a PTC appointment
[FR Doc. E5–1204 Filed 3–18–05; 8:45 am] statements. would have the right to quote electronically (and
BILLING CODE 8010–01–P
not in open outcry) in either 20 or 30 Hybrid 2.0
products traded in that specific trading station for
1 15 U.S.C. 78s(b)(1). each Exchange membership it leases or owns,
8 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. respectively.

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13558 Federal Register / Vol. 70, No. 53 / Monday, March 21, 2005 / Notices

appointment process assigns acts and, in general, to protect investors rules/sro.shtml). Copies of the
appointment costs to products based on and the public interest. submission, all subsequent
their locations in tiers that have been amendments, all written statements
B. Self-Regulatory Organization’s
established based on trading volume. with respect to the proposed rule
Statement on Burden on Competition
Second, proposed CBOE Rule 8.3A change that are filed with the
assigns Class Quoting Limits (‘‘CQLs’’) CBOE does not believe that the Commission, and all written
based on a product’s trading volume.5 proposed rule change will impose any communications relating to the
The Exchange proposes to create a new burden on competition not necessary or proposed rule change between the
tier, the ‘‘A+’’ tier consisting of two appropriate in furtherance of the Commission and any person, other than
products: options on Spiders and purposes of the Act. those that may be withheld from the
options on the Nasdaq-100 Index C. Self-Regulatory Organization’s public in accordance with the
Tracking Stock. The ‘‘appointment cost’’ Statement on Comments on the provisions of 5 U.S.C. 552, will be
for each ‘‘A+’’ tier product would be .60 Proposed Rule Change Received From available for inspection and copying in
(6/10ths of a membership) and the CQL Members, Participants or Others the Commission’s Public Reference
would be 40. Section, 450 Fifth Street, NW.,
No written comments were solicited Washington, DC 20549. Copies of such
The CBOE represents that there are
or received comments. filing also will be available for
two primary reasons supporting a higher
appointment cost for ‘‘A+’’ tier III. Date of Effectiveness of the inspection and copying at the principal
products. First, these two products have Proposed Rule Change and Timing for office of the CBOE. All comments
trading volumes that substantially Commission Action received will be posted without change;
exceed the trading volumes of most the Commission does not edit personal
Within 35 days of the date of identifying information from
other Hybrid or Hybrid 2.0 products. publication of this notice in the Federal
The whole ‘‘tiering’’ concept is submissions. You should submit only
Register or within such longer period (i) information that you wish to make
premised on the fact that the more as the Commission may designate up to
actively-traded products should cost available publicly. All submissions
90 days of such date if it finds such should refer to File Number SR–CBOE–
more in terms of appointment costs. The longer period to be appropriate and
addition of an ‘‘A+’’ tier is no different 2005–23 and should be submitted on or
publishes its reasons for so finding or before April 11, 2005.
in that it operates on the same principle. (ii) as to which the Exchange consents,
Second, currently these products trade the Commission will: For the Commission, by the Division of
either by themselves or in a trading (A) By order approve such proposed Market Regulation, pursuant to delegated
crowd with only one other product. In authority.8
rule change; or
this regard, Spiders options are the only (B) Institute proceedings to determine Margaret H. McFarland,
product traded in one trading station, whether the proposed rule change Deputy Secretary.
which essentially creates an should be disapproved. [FR Doc. E5–1208 Filed 3–18–05; 8:45 am]
appointment cost of 1.0. Accordingly, BILLING CODE 8010–01–P
the CBOE believes that assigning a IV. Solicitation of Comments
higher appointment cost to these Interested persons are invited to
products is justified because they submit written data, views, and SECURITIES AND EXCHANGE
already have higher appointment costs arguments concerning the foregoing, COMMISSION
than do other Hybrid 2.0 products. including whether the proposed rule
2. Statutory Basis change is consistent with the Act. [Release No. 34–51244A; File No. SR–
Comments may be submitted by any of CBOE–2003–30]
CBOE believes the proposed rule the following methods:
change is consistent with the Act and Self-Regulatory Organizations;
Electronic Comments Chicago Board Options Exchange,
the rules and regulations under the Act
applicable to a national securities • Use the Commission’s Internet Incorporated; Notice of Filing and
exchange and, in particular, the comment form (http://www.sec.gov/ Order Granting Accelerated Approval
requirements of section 6(b) of the Act.6 rules/sro.shtml; or to a Proposed Rule Change and
Specifically, CBOE believes the • Send an e-mail to rule- Amendment Nos. 1, 2, 3, and 4 Thereto
proposed rule change is consistent with comments@sec.gov. Please include File Relating to Position Limits and
the section 6(b)(5) of the Act7 Number SR–CBOE–2005–23 on the Exercise Limits
requirements that the rules of an subject line.
March 15, 2005.
exchange be designed to promote just Paper Comments
and equitable principles of trade, to Correction
prevent fraudulent and manipulative • Send paper comments in triplicate
to Jonathan G. Katz, Secretary, In Part V of Release No. 34–51244,
5 For example, the 20% most actively-traded
Securities and Exchange Commission, issued February 23, 2005,1 the
products have a CQL of 40 quoters. The tiers for 450 Fifth Street, NW., Washington, DC Commission is replacing the following
CQLs correspond to the appointment cost tiers 20549–0609. sentence:
contained in CBOE Rule 8.4(d). Accordingly, the All submissions should refer to File
20% most actively-traded products (i.e., the A tier ‘‘It is therefore ordered, pursuant to
products) would have a CQL of 40 quoters and an
Number SR–CBOE–2005–23. This file section 19(b)(2) of the Act,2 that the
appointment cost of .10. Tier A+ products would number should be included on the proposed rule change (SR–CBOE–2003–
be excluded when determining the 20% most subject line if e-mail is used. To help the 30), as amended, is hereby approved on
actively-traded products for Tier A and for CQL Commission process and review your
purposes. See proposed changes to CBOE Rules
8.4(d) and 8.3A, Interpretation and Policy .01(a),
comments more efficiently, please use 8 17 CFR 200.30–3(a)(12).
respectively. only one method. The Commission will 1 SeeSecurities Exchange Act Release No. 51244
6 15 U.S.C. 78f(b). post all comments on the Commission’s (February 23, 2005), 70 FR 10010 (March 1, 2005).
7 15 U.S.C. 78f(b)(5). Internet Web site (http://www.sec.gov/ 2 15 U.S.C. 78s(b)(2).

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