Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.

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Federal Register: November 9, 2009 (Volume 74, Number 215)

Notices

Page 57718-57719

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DOCID:fr09no09-92

SECURITIES AND EXCHANGE COMMISSION

Release No. 34-60910; File No. SR-CBOE-2009-083

Self-Regulatory Organizations; Chicago Board Options Exchange,

Incorporated; Notice of Filing and Immediate Effectiveness of Proposed

Rule Change To Change the Time at Which CBSX Opens for Trading From 8:15 a.m. Central Time to 8 a.m. Central Time

October 30, 2009.

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 October 30, 2009, 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 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.

\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).

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The Exchange proposes to expand, by 15 minutes, the CBOE Stock

Exchange (``CBSX'') hours of operation. The text of the proposed rule change 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 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 the

Statutory Basis for, the Proposed Rule Change 1. Purpose

CBSX proposes to amend Rule 51.2 to change the time at which CBSX opens for trading from 8:15 a.m. Central Time to 8 a.m. Central Time.

The proposed change would be effective as of November 2, 2009. This change has been requested by the CBSX Traders. Other U.S.-based exchanges open for trading earlier than 8 a.m. Central Time, including

NASDAQ OMX PHLX.\5\

\5\ See NASDAQ OMX PHLX Rule 101.

The Exchange represents that the earlier start time will have no implications for CBSX systems. Opening at 8 a.m. Central Time merely extends by 15 minutes the ``pre-NMS'' trading window currently available on CBSX between 8:15 and 8:30 Central Time. CBSX DPMs will not be adversely affected because their quoting obligations do not start until 8:30 a.m. Central Time. Lastly, the Exchange represents that CBSX traders have been notified of the time change via circular. 2. Statutory Basis

The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ``Act'') \6\ and the rules and regulations thereunder and, in particular, the requirements of Section 6(b) of the Act.\7\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \8\ requirements that the rules of an exchange be designed to promote just and equitable principles of trade, to prevent fraudulent and manipulative acts, to remove impediments to and to perfect the mechanism for a free and open market and a national market system, and, in

Page 57719

general, to protect investors and the public interest. Opening trading earlier will permit investors greater opportunity to participate in the market, thereby removing an impediment to trading.

\6\ 15 U.S.C. 78s(b)(1).

\7\ 15 U.S.C. 78f(b).

\8\ 15 U.S.C. 78f(b)(5).

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

The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) thereunder \10\ because the proposal does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) by its terms, 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.\11\

\9\ 15 U.S.C. 78s(b)(3)(A).

\10\ 17 CFR 240.19b-4(f)(6).

\11\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to give the Commission 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 waived the pre-filing requirement in this case.

The Exchange has requested that the Commission waive the 30-day operative delay period. The Commission hereby grants that request and believes that such action is consistent with the protection of investors and the public interest. The Exchange has represented that the proposed earlier start time will not impact its systems or adversely affect market participants whose quoting obligations do not start until 8:30 a.m. Central Time.\12\ Moreover, the Commission notes that the Exchange represents that it notified CBSX traders via circular the proposed time change.\13\

\12\ See CBOE Rule 53.56(a)(4).

\13\ For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f).

At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such proposed 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.\14\

\14\ 15 U.S.C. 78s(b)(3)(C).

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-2009-083 on the subject line.

Paper Comments

Send paper comments in triplicate to Elizabeth M. Murphy,

Secretary, Securities and Exchange Commission, 100 F Street, NE.,

Washington, DC 20549-1090.

All submissions should refer to File Number SR-CBOE-2009-083. 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-2009-083 and should be submitted on or before November 30, 2009.

For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\

\15\ 17 CFR 200.30-3(a)(12).

Florence E. Harmon,

Deputy Secretary.

FR Doc. E9-26876 Filed 11-6-09; 8:45 am

BILLING CODE 8011-01-P

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