

[Federal Register: January 9, 2008 (Volume 73, Number 6)]
[Notices]               
[Page 1653]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09ja08-77]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57095; File No. SR-CBOE-2007-65]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Granting Approval of a Proposed Rule Change as 
Modified by Amendment No. 1 Thereto Regarding Nullification and 
Modification of Transactions Executed on CBOE Stock Exchange

 January 3, 2008.
    On June 12, 2007, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission''), pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to make various revisions to CBOE 
Stock Exchange (``CBSX'') Rule 52.4, which governs the nullification 
and modification of transactions executed on CBSX. On November 8, 2007, 
the CBOE submitted Amendment No. 1 to the proposed rule change. The 
proposed rule change, as amended, was published for comment in the 
Federal Register on November 27, 2007.\3\ The Commission received no 
comment letters on the proposal. This order approves the proposed rule 
change as amended.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 56818 (November 19, 
2007), 72 FR 66205.
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    The Exchange proposes to revise CBSX Rule 52.4 to: (1) Require a 
request for review of a transaction to be made by only one of the 
following methods: telephone; facsimile; or e-mail (in order to 
simplify the process for those making requests); (2) require such a 
request to be made within thirty minutes of the trade in question, or 
within forty-five minutes of the trade if that trade occurred within 
the first thirty minutes of trading in the product involved in the 
trade (in order to give more time for requests which, based on the 
Exchange's experience so far, is necessary); (3) give the individual(s) 
who reviews transactions under the Rule the label of ``designated 
official,'' so that they need not be officers of the Exchange; and (4) 
eliminate the requirement that the notification to the parties to the 
trade of the official's determination be given in writing and by the 
official. The aforementioned changes numbered (1) and (4) are based on, 
and conform CBSX Rule 52.4 to, NYSE Arca Equities Rules 7.10(b) and 
7.10(c)(1), respectively.
    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \4\ and, in 
particular, the requirements of Section 6(b) of the Act \5\ and the 
rules and regulations thereunder. Specifically, the Commission finds 
that the proposal is consistent with Section 6(b)(5) of the Act,\6\ in 
that it is designed to promote just and equitable principles of trade, 
serve to remove impediments to and perfects the mechanism of a free and 
open market and a national market system, and, in general, protect 
investors and the public interest.
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    \4\ In approving this proposal, the Commission has considered 
the proposed rule's impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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    The Commission believes that the Exchange's proposal to revise its 
CBSX rule governing clearly erroneous transactions is appropriate.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-CBOE-2007-65), as amended, is 
hereby approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-155 Filed 1-8-08; 8:45 am]

BILLING CODE 8011-01-P
