

[Federal Register: December 13, 2007 (Volume 72, Number 239)]
[Notices]               
[Page 70911-70912]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13de07-107]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56925; File No. SR-CBOE-2007-141]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Amend CBOE Rule 2.1 Relating to the Appointment of the 
Chairman and Members of CBOE's Business Conduct Committee

 December 7, 2007.
    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 November 27, 2007, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' or ``Exchange'') 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 CBOE. The Exchange filed the proposal pursuant to Section 
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(3) 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)(3).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The CBOE proposes to amend Exchange Rule 2.1 pertaining to the 
appointment of the chairman and members of CBOE's Business Conduct 
Committee (``BCC''). The text of the proposed rule change is available 
at the Exchange, on the Exchange's Web site at http://www.cboe.com, and 

at 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 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
    The purpose of the proposed rule change is to amend CBOE Rule 2.1 
by modifying the BCC appointment process. Currently, the Exchange's 
Vice Chairman of the Board (``member Vice Chairman''), a member 
position, has the authority to: (i) Appoint the chairman and members of 
the BCC, with the approval of the Board; (ii) remove members in the 
BCC, with or without cause; and (iii) fill a vacancy in the BCC for the 
remainder of the term (collectively referred to as the ``Appointment 
Process'').\5\ CBOE proposes to transfer the Appointment Process 
authority from the member Vice Chairman to the President \6\ of the 
Exchange.\7\ CBOE believes that the modification to this rule will 
enhance CBOE's disciplinary process because the BCC Appointment Process 
will now be the responsibility of a non-member

[[Page 70912]]

executive officer, who is not subject to the Exchange's disciplinary 
jurisdiction.
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    \5\ See CBOE Rule 2.1(a).
    \6\ CBOE's President is the chief operating officer of CBOE, 
and, among other duties, oversees the Member and Regulatory Services 
Division of CBOE.
    \7\ CBOE believes that this rule amendment is similar to the 
International Securities Exchange (``ISE'') Rule 200, which grants 
its CEO the authority to appoint members of committees, including 
ISE's Business Conduct Committee with Board approval. See ISE Rule 
200.
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2. Statutory Basis
    In modifying the BCC Appointment Process to place the 
responsibility with a non-member executive officer who is not subject 
to the Exchange's disciplinary jurisdiction, the Exchange believes that 
the proposed rule change is consistent with Section 6(b) of the Act \8\ 
in general, and with Section 6(b)(5) of the Act \9\ in particular, 
which requires, among other things, that the rules of the Exchange be 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
among persons engaged in facilitating securities transactions, and, in 
general, to protect investors and the public interest.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange 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 has neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has designated this proposal as concerned solely with 
the administration of the Exchange under Section 19(b)(3)(A)(iii) of 
the Act,\10\ and Rule 19b-4(f)(3) thereunder,\11\ which renders the 
proposal effective upon filing with the Commission.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 17 CFR 240.19b-4(f)(3).
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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-2007-141 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-2007-141. 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 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-2007-141 and should be 
submitted on or before January 3, 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. E7-24120 Filed 12-12-07; 8:45 am]

BILLING CODE 8011-01-P
