
[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
