
[Federal Register: August 11, 2008 (Volume 73, Number 155)]
[Notices]               
[Page 46653]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11au08-111]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58281; File No. SR-CBOE-2008-59]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Granting Approval of Proposed Rule Change to Amend 
CBOE Rule 8.7 Related to the Obligations of Market-Makers

August 1, 2008.
    On June 11, 2008, Chicago Board Options Exchange, Incorporated (the 
``Exchange'' or ``CBOE'') 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 amend CBOE Rule 8.7 
(Obligations of Market-Makers). The proposed rule change was published 
for comment in the Federal Register on June 30, 2008.\3\ The Commission 
received no comments on the proposed rule change. This order approves 
the proposed rule change.
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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. 57996 (June 20, 
2008), 73 FR 36937.
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    The Exchange recently amended CBOE Rule 8.1 (Market-Maker Defined) 
to expand the definition of market-maker by including member 
organizations.\4\ In view of this change, the proposed rule change adds 
an interpretation to CBOE Rule 8.7 to clarify that the in-person 
requirements set forth in CBOE Rule 8.7.03B may be satisfied by market-
makers either individually or collectively with market-makers of the 
same member organization.\5\
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    \4\ See Securities Exchange Act Release No. 57615 (April 3, 
2008), 73 FR 19537 (April 10, 2008) (SR-CBOE-2007-120).
    \5\ CBOE Rule 8.7.03B applies to both Hybrid 3.0 and non-Hybrid 
option classes. Currently, there are three Hybrid 3.0 classes and no 
non-Hybrid classes.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder that are applicable to a national securities exchange.\6\ In 
particular, the Commission believes that the proposed rule change is 
consistent with Section 6(b)(5) of the Act,\7\ in that it is designed 
to promote just and equitable principles of trade, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and, in general, to protect investors and the 
public interest. The Commission notes that under the proposal the total 
amount of transactions that the rule would require to be executed in-
person would not change, because a member organization that is 
registered as a market-maker would have to take into account the 
transactions of all its individual associated market-makers when 
determining the total transactions for which it would have to meet the 
in-person requirements. Further, the proposed rule change helps to 
ensure a more consistent application of the definition of market-maker 
within CBOE rules.
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    \6\ In approving this rule, the Commission notes that it has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-CBOE-2008-59) be, and it 
hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-18373 Filed 8-8-08; 8:45 am]

BILLING CODE 8010-01-P
