[Federal Register Volume 77, Number 137 (Tuesday, July 17, 2012)]
[Notices]
[Pages 42040-42045]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-17348]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67410; File No. SR-CBOE-2012-064]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to Continuous Electronic Quotes
July 11, 2012.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on July 5, 2012, the Chicago Board Options Exchange, Incorporated
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I, II, and III below, which Items have been prepared by the
Exchange. 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.
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[[Page 42041]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its Rules relating to continuous
electronic quotes. The text of the proposed rule change is available on
the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), 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
The purpose of the proposed rule change is to amend Rule 1.1(ccc),
``Continuous Electronic Quotes,'' to reduce to 90% the percentage of
time for which a Market-Maker is required to provide electronic quotes
in an appointed option class on a given trading day. Additionally, the
proposed rule change amends Rules 8.13, 8.15A, 8.85 and 8.93 to
increase to the lesser of 99% or 100% minus one call-put pair the
percentage of series in each class in which Preferred Market-Makers
(``PMMs''), LMMs, Designated Primary Market-Makers (``DPMs''), and
electronic DPMs (``e-DPMs''), respectively (Market-Makers, PMMs, LMMs,
DPMs and e-DPMs are collectively referred to in this filing as
``Market-Makers'' unless the context provides otherwise), must provide
continuous electronic quotes. The proposed rule change is comparable to
the rules of other options exchanges applicable to equivalent market
participants.\3\
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\3\ The continuous quoting obligations for NASDAQ Options Market
(``NOM'') market-makers and NASDAQ OMX PHLX LLC (``PHLX'') streaming
quote trades (``SQTs'') and remote SQTs (``RSQTs'') (similar to
Market-Makers) are generally as follows: (1) NOM Chapter VII,
Section 6(d)--market-makers must enter continuous bids and offers in
at least 60% of the series in options in which the market-maker is
registered for 90% of the trading day (as a percentage of the total
number of minutes in such trading day) or such higher percentage as
NASDAQ may announce in advance; and (2) PHLX Rule 1014(b)(ii)(D)(1)-
SQTs and RSQTs must quote two-sided markets in 60% of series of the
options in which they are assigned for at least 90% of the trading
day (as a percentage of the total number of minutes in such trading
day).
The continuous quoting obligations for NYSE Amex LLC (``NYSE
Amex'') and NYSE Arca, Inc. (``NYSE Arca'') directed order market-
makers and PHLX directed SQTs and RSQTs (similar to PMMs) are as
follows: (1) NYSE Amex Options Rules 964.1NY--directed order market-
makers must provide continuous two-sided quotations throughout the
trading day in issues for which it receives directed orders for 90%
of the time NYSE Amex is open for trading in each issue (applies to
all of the directed order market-maker's appointed issues
collectively); (2) NYSE Arca Options Rules 6.88--directed order
market-makers must provide continuous two-sided quotations
throughout the trading day in issues for which it receives directed
orders for 90% of the time NYSE Arca is open for trading in each
issue (applies to all of the directed order market-maker's appointed
issues collectively); and (3) PHLX Rule 1014(b)(ii)(D)(1)--directed
SQTs and RSQTs must quote two-sided markets in the lesser of 99% of
series listed on the exchange or 100% of the series listed on the
exchange minus one call-put pair, in each case in at least 60% of
the options classes in which they are assigned for at least 90% of
the trading day (as a percentage of the total number of minutes in
such trading day); once they enter a quote in an assigned class,
they must maintain until the close of that trading day quotations
for the lesser of 99% of the series of the option listed on the
Exchange or 100% of the series of the option listed on the Exchange
minus one call-put pair.
The continuous quoting obligations for NYSE Amex and PHLX
specialists and NYSE Arca lead market-makers (similar to LMMs, DPMs
and e-DPMs) are as follows: (1) NYSE Amex Options Rules 925.1NY--
specialists must provide continuous two-sided quotations throughout
the trading day in its appointed issues for 90% of the time NYSE
Amex is open for trading in each issue (applies to all of the
specialist's appointed issues collectively); (2) NYSE Arca Options
Rules 6.37B--lead market-makers must provide continuous two-sided
quotations throughout the trading day in its appointed issues for
90% of the time NYSE Arca is open for trading in each issue (applies
to all of the lead market-maker's appointed issues collectively);
and (3) PHLX Rule 1014(b)(ii)(D)(1)--specialists are responsible to
quote two-sided markets in the lesser of 99% of the series or 100%
of the series minus one call-put pair in each option in which such
specialist is assigned for 90% of the trading day (as a percentage
of the total number of minutes in such trading day).
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Rules 8.7, 8.13, 8.15A, 8.85, and 8.93 impose certain obligations
on Market-Makers, PMMs, LMMs, DPMs, and e-DPMs, respectively. These
Rules require that Market-Makers generally maintain continuous
electronic quotes as follows:
Rule 8.7(d)(ii)(B) requires that Market-Makers provide
continuous electronic quotes when quoting in a particular class on a
given trading day in 60% of the non-adjusted option series of the
Market-Maker's appointed class that have a time to expiration of less
than nine months;
Rule 8.13(d) requires that PMMs provide continuous
electronic quotes when the Exchange is open for trading in at least 90%
of the non-adjusted option series of each class for which it receives
Preferred Market-Maker orders;
Rule 8.15A(b)(i) requires that LMMs provide continuous
electronic quotes when the Exchange is open for trading in at least 90%
of the non-adjusted option series within their assigned classes;
Rule 8.85(a)(i) requires DPMs to provide continuous
electronic quotes when the Exchange is open for trading in at least 90%
of the non-adjusted option series of each multiply listed option class
allocated to it and in 100% of the non-adjusted option series of each
singly listed option class allocated to it; and
Rule 8.93 requires e-DPMs to provide continuous electronic
quotes when the Exchange is open for trading in at least 90% of the
non-adjusted option series of each allocated class.
Rule 1.1(ccc) currently provides that a Market-Maker who is
obligated by CBOE Rules to provide continuous electronic quotes will be
deemed to have provided ``continuous electronic quotes'' if the Market-
Maker provides electronic two-sided quotes for 99% of the time that the
Market-Maker is required to provide electronic quotes in an appointed
option class on a given trading day. The rule also provides that if a
technical failure or limitation of a system of the Exchange prevents
the Market-Maker from maintaining, or from communicating to the
Exchange, timely and accurate electronic quotes in a class, the
duration of such failure will not be considered in determining whether
the Market-Maker has satisfied the 99% quoting standard with respect to
that option class. The Exchange may consider other exceptions to this
continuous electronic quote obligation based on demonstrated legal or
regulatory requirements or other mitigating circumstances.
The Exchange proposes to amend the definition of continuous
electronic quotes to mean 90% of the time a Market-Maker is required to
quote in an appointed option class on a given trading day. The rule
will still provide for automatic exceptions for technical failures or
system limitations and discretionary exceptions based on demonstrated
legal or regulatory requirements or other mitigating circumstances.
The Exchange also proposes to increase the percentage of series in
each option class in which PMMs, LMMs, DPMs and e-DPMs are required to
provide continuous electronic quotes. The proposed rule change amends:
(i) Rule 8.13(d) to require PMMs to provide
[[Page 42042]]
continuous electronic quotes when the Exchange is open for trading in
at least the lesser of 99% of the non-adjusted option series or 100% of
the non-adjusted option series minus one call-put pair \4\ of each
class for which it receives Preferred Market-Maker orders; (ii) Rule
8.15A(b)(i) to require LMMs to provide continuous electronic quotes
when the Exchange is open for trading in at least the lesser of 99% of
the non-adjusted option series or 100% of the non-adjusted option
series minus one call-put pair within their assigned classes; (iii)
Rule 8.85(a)(i) to require DPMs to provide continuous electronic quotes
when the Exchange is open for trading in at least the lesser of 99% of
the non-adjusted option series or 100% of the non-adjusted option
series minus one call-put pair of each option class allocated to them;
and (iv) Rule 8.93 to require e-DPMs to provide continuous electronic
quotes when the Exchange is open for trading in at least the lesser of
99% of the non-adjusted option series or 100% of the non-adjusted
option series minus one call-put pair of each allocated class.
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\4\ A ``call-put pair'' consists of two individual options, one
call and one put, which cover the same underlying instrument and
have the same expiration date and exercise price. Failure to
maintain a qualifying (90% of the time, as proposed in this filing)
quote in just one call, one put, or in one call and one ``paired''
put, would not by itself (assuming all other series of a class are
being quoted as required) constitute a violation of 99%-of-the-
series requirement.
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The proposed rule change also makes additional changes to create
consistency among the continuous quoting obligations for all CBOE
Market-Makers. The proposed rule change eliminates the separate quoting
requirements for DPMs in singly listed and multiply listed classes.
This will cause the quoting obligation for multiply listed classes to
increase from 90% to 99% of the series and for singly listed classes to
decrease slightly from 100% to 99%. The Exchange believes that is no
longer necessary to have a separate, slightly higher requirement for
singly listed classes given the increase in the obligation for multiply
listed series. The proposed rule change also deletes the requirement
that e-DPMs will alternatively be required to respond to 98% of the
requests for quotes (``RFQs'') if the Exchange has enabled RFQ
functionality in a class. The Exchange never enabled the RFQ
functionality in any class for e-DPMs, and it is no longer available.
Therefore, the Exchange believes it is appropriate to delete this
provision from the e-DPM rules.
The Exchange does not believe that the proposed rule change would
adversely affect the quality of the Exchange's markets or lead to a
material decrease in liquidity. Rather, the Exchange believes that its
current market structure with its high rate of participation by Market-
Makers permits the lowering of the quoting time obligation without fear
of losing liquidity. Market-Makers will continue to be required to
provide continuous electronic quotes in 60% of each allocated class.
Additionally, for PMMs, LMMs, DPMs and e-DPMS, the proposed reduction
in required quoting time will be offset by the increase in percentage
of series in each appointed class in which PMMs, LMMs, DPMs and e-DPMs
are required to provide continuous electronic quotes. The proposed rule
change to require PMMs, LMMs, DPMs and e-DPMs to quote in the lesser of
99% of the series or 100% of the series minus one call-put pair in each
class provides flexibility in assignments that contain relatively fewer
series and avoids situations when failure to quote 90% of the trading
day in merely one individual option or one pair breaches the quoting
requirement.
The Exchange Rules also impose a number of other obligations on
Market-Makers that will continue to ensure that they create and
maintain a fair and orderly market in the option classes to which they
are assigned. The proposed rule change would not excuse a Market-Maker
that is present on the trading floor from its obligation to provide a
two-sided market complying with the bid/ask differential requirements
in response to any request for quote by a floor broker, Trading Permit
Holder or PAR Official.\5\ The proposed rule change would also not
excuse a Market-Maker that is present on the trading floor from its
obligation to provide an open outcry two-sided market complying with
the bid/ask differential requirements in response to a request for a
quote by a Trading Permit Holder or PAR Official directed at that
Market-Maker or when, in response to a general request for a quote by a
Trading Permit Holder or PAR Official, a market is not then being
vocalized by a reasonable number of Market-Makers.\6\ Further, the
proposed rule change would not excuse a Market-Maker from its
obligation to submit a single quote or maintain continuous quotes in
one or more series of a class to which the Market-Maker is appointed
when called upon by an Exchange official if, in the judgment of such
official, it is necessary to do so in the interest of maintaining a
fair and orderly market.\7\
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\5\ See Rule 8.7(d)(i)(C) (relating to a request for quote by a
floor broker) and (ii)(C) (relating to a request for a quote by a
Trading Permit Holder or PAR Official).
\6\ See Rule 8.7(d)(iv).
\7\ Id.
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In support of this proposal, the Exchange notes that other
competing options exchanges impose continuous quoting obligations on
their market participants that have equivalent rights and obligations
as Market-Makers, PMMs, LMMs, DPMs and e-DPMs that are comparable to
the obligations proposed in this filing:
Market-Makers
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% Time % Series Classes
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CBOE (current rule)...................... 99% of the time required to 60 Class-by-class.
provide quotes on a
trading day when quoting.
NOM...................................... 90% of a trading day....... 60 All classes collectively.
PHLX (SQTs and RSQTs).................... 90% of the trading day..... 60 All classes collectively.
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PMMs
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% Time % Series Classes
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CBOE (current rule)...................... 99% of the time required to 90 Class-by-class.
provide quotes on a
trading day.
NYSE Amex (directed order market-makers). 90% of the time open for N/A All classes collectively.
trading.
[[Page 42043]]
NYSE Arca (directed order market-makers). 90% of the time open for N/A All classes collectively.
trading.
PHLX (directed SQTs and RSQTs)........... 90% of the trading day..... 99% (or 60% of classes (and any
100% minus classes in which they
one call- enter quotes during a
put pair) trading day).
60 Remaining classes.
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LMMs/DPMs/e-DPMs
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% Time % Series Classes
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CBOE (current rule)...................... 99% of the time required to 90% * Class-by-class.
provide quotes on a
trading day.
NYSE Amex (specialists).................. 90% of the time open for N/A All classes collectively.
trading.
NYSE Arca (lead market-makers)........... 90% of the time open for N/A All classes collectively.
trading.
PHLX (specialists)....................... 90% of the trading day..... 99% (or Class-by-class.
100% minus
one call-
put pair)
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* DPMs are required to quote in 100% of the series in a class for singly listed options. E-DPMs are
alternatively required to respond to 98% of the RFQ if the Exchange has enabled RFQ functionality in a class.
The proposed rule change eliminates both of those alternative requirements.
As the above tables show, there are slight differences among the
quoting obligations of these exchanges, including differences in the
application of these obligations to appointed option classes
collectively or on a class-by-class basis and slight differences in the
percentages of series of appointed classes in which market-makers must
provide continuous electronic quotes. However, the Exchange believes
that despite these slight variations, upon effectiveness of the
proposed rule change, Market-Makers will be required to provide
continuous electronic quotes for the same amount of time in the same or
a substantially similar percentage of series as market-makers at these
other exchanges.
To demonstrate this point, consider a Market-Maker with 10
appointed classes, each of which has 50 series, for a total of 500
series, quoting in each class during a regular 390-minute trading
day.\8\ The following table shows the ``minimum total quoting
minutes,'' which equals the number of required minutes in a trading day
times the number of series required to be quoted,\9\ of CBOE Market-
Makers, NOM market-makers and PHLX SQTs or RSQTs (assuming
effectiveness of the proposed rule change): \10\
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\8\ The Exchange notes that Rule 8.7(d)(iii) provides that the
continuous quoting obligation applies to a Market-Maker on a per
class basis only when the Market-Maker is quoting in a particular
class on a given trading day. For purposes of this example, the
Exchange assumes that a Market-Maker is quoting in all of its
appointed classes for an entire trading day.
\9\ The ``maximum total quoting minutes'' in a trading day would
equal 390 minutes times 500 series, or 195,000.
\10\ Given CBOE's current 99% requirement, the minimum total
quoting minutes for CBOE Market-Makers quoting in all classes for an
entire trading day is 115,830 (386.1 minutes x 300 series), assuming
they are quoting in all appointed classes for an entire trading day,
which is higher than that of NOM market-makers and PHLX SQTs and
RSQTs.
------------------------------------------------------------------------
% series
Exchange % time required required to Minimum total
to quote quote quoting minutes
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CBOE................. 90%............ 60%............ 105,300
(351 minutes).. (300 series)... (351 minutes x
300 series)
NOM.................. 90%............ 60%............ 105,300
(351 minutes).. (300 series)... (351 minutes x
300 series)
PHLX................. 90%............ 60%............ 105,300
(351 minutes).. (300 series)... (351 minutes x
300 series)
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The following table shows the ``minimum total quoting minutes'' of
CBOE PMMs, NYSE Amex and NYSE Arca directed order market-makers, and
PHLX directed SQTs and RSQTs (assuming effectiveness of the proposed
rule change):
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\11\ See supra note 3.
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% series
Exchange % time required required to Minimum total
to quote quote quoting minutes
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CBOE................. 90%............ 99%............ 173,745
(351 minutes).. (495 series)... (351 minutes x
495 series)
NYSE Amex *.......... 90%............ 100%........... 175,500
(351 minutes).. (500 series)... (351 minutes x
500 series)
NYSE Arca *.......... 90%............ 100%........... 175,500
(351 minutes).. (500 series)... (351 minutes x
500 series)
[[Page 42044]]
PHLX * *............. 90%............ 99%............ 173,745
(351 minutes).. (495 series)... (351 minutes x
495 series)
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*NYSE Amex and NYSE Arca rules do not specify a minimum percentage of
series in which their directed order market-makers must maintain
continuous electronic quotes in their appointed classes.\11\ The
Exchange assumes for purposes of this example that the continuous
quoting obligation applies to 100% of series in all appointed classes.
**Phlx rules provide that directed SQTs and RSQTs must quote two-sided
markets in the lesser of 99% of series listed on the exchange or 100%
of the series listed on the exchange minus one call-put pair, in each
case in at least 60% of the options classes in which they are assigned
for at least 90% of the trading day (as a percentage of the total
number of minutes in such trading day). Additionally, once they enter
a quote in an assigned class, they must maintain until the close of
that trading day quotations for the lesser of 99% of the series of the
option listed on the Exchange or 100% of the series of the option
listed on the Exchange minus one call-put pair. The Exchange assumes
for purposes of this example that the directed SQT/RSQT enters quotes
in all of its assigned classes during the trading day.
The following table shows the ``minimum total quoting minutes'' of
CBOE LMMs/DPMs/e-DPMs, NYSE Amex specialists, NYSE Arca lead market-
makers, and PHLX specialists (assuming effectiveness of the proposed
rule change):
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\12\ Id.
------------------------------------------------------------------------
% series
Exchange % time required required to Minimum total
to quote quote quoting minutes
------------------------------------------------------------------------
CBOE................. 90%............ 99%............ 173,745
(351 minutes).. (495 series)... (351 minutes x
495 series)
NYSE Amex *.......... 90%............ 100%........... 175,500
(351 minutes).. (500 series)... (351 minutes x
500 series)
NYSE Arca *.......... 90%............ 100%........... 175,500
(351 minutes).. (500 series)... (351 minutes x
500 series)
PHLX................. 90%............ 99%............ 173,745
(351 minutes).. (495 series)... (351 minutes x
495 series)
------------------------------------------------------------------------
* NYSE Amex and NYSE Arca rules do not specify a minimum percentage of
series in which their specialists and lead market-makers,
respectively, must maintain continuous electronic quotes in their
appointed classes.\12\ The Exchange assumes for purposes of this
example that the continuous quoting obligation applies to 100% of
series in all appointed classes.
As the above example demonstrates, upon effectiveness of the
proposed rule change, the minimum quoting minutes for Market-Makers
will be the same as those of NOM market-makers and PHLX SQTs and
RSQTs.\13\ The minimum quoting minutes of PMMs will be slightly less
than NYSE Amex and NYSE Arca directed order market-makers and the same
as PHLX directed SQTs and RSQTs. The minimum quoting minutes of LMMs,
DPMs and e-DPMs will be the same as PHLX specialists and slightly less
than NYSE Amex specialists and NYSE Arca lead market-market makers.\14\
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\13\ In addition, because CBOE applies its continuous quoting
obligation to Market-Makers on a class-by-class basis as opposed to
all classes collectively as the other exchanges do, CBOE's rules
ensure that Market-Makers, when they are quoting in all appointed
classes for an entire trading day, provide liquidity in a
significant number of series in each class in which they are
quoting, whereas the other exchanges' rules could result in reduced
or no liquidity in certain classes.
\14\ The Exchange notes that for PMMs, LMMs, DPMs and e-DPMs,
upon effectiveness of the proposed rule change, the ``minimum
quoting minutes'' will be the same as it is currently for those
Market-Makers (using the above example, the current minimum quoting
minutes is 386.1 minutes x 450 series = 173,745 quoting minutes).
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The Exchange believes this proposal will make the quoting time
requirements of Market-Makers more comparable to those at other options
exchanges and is therefore essential for competitive purposes. CBOE
believes it is disadvantageous to CBOE Market-Makers if they are
subject to stricter timing requirements with respect to their
continuous quoting obligations than market-makers at other options
exchanges.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\15\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \16\ 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 general, to protect investors and
the public interest.
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\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(5).
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In particular, the Exchange believes this proposed rule change
promotes just and equitable principles of trade because it reduces
burdens and unnecessary restrictiveness on Market-Makers. The Exchange
still imposes many obligations on Market-Makers to maintain a fair and
orderly market in their appointed classes, which the Exchange believes
eliminates the risk of a material decrease in liquidity. While the time
during which Market-Makers must provide continuous electronic quotes
will be slightly reduced, Market-Makers will still be obligated to
provide continuous electronic quotes for a significant part of the
trading day in 60% of series of each appointed class. PMMs, LMMs, DPMs
and e-DPMs will be obligated to provide continuous electronic quotes
for a significant part of the trading date in an increased percentage
(99% or 100% minus one call-put pair) of series of each appointed
class. Additionally, all Market-Makers will continue to be obligated to
quote the series when requested by a floor broker, Trading Permit
Holder or PAR Official, or if the need otherwise arises.
Accordingly, the proposal supports the quality of CBOE's markets by
helping to ensure that Market-Makers will continue to be obligated to
quote in series when necessary. With respect to PMMs, LMMs, DPMs and e-
DPMs, the benefit provided to these Market-Makers from the proposed
reduction in required quoting time is offset by the proposed increased
in required percentage of series in which these Market-Makers must
provide continuous electronic quotes. Ultimately, the benefits the
[[Page 42045]]
proposed rule change confers upon Market-Makers are offset by the
continued, and for PMMs, LMMs, DPMs and e-DPMs increased,
responsibilities to provide significant liquidity to the market to the
benefit of market participants. In addition, the proposal allows
flexibility with respect to PMMs', LMMs', DPMs' and e-DPMs' assignments
that contain relatively fewer series and reduces unnecessary rigidity
in DPMs' quoting obligations with respect to singly listed series.
The proposed rule change also protects investors and the public
interest by creating more uniformity and consistency among the
Exchange's rules related to Market-Maker quoting obligations and
deleting a provision regarding functionality that is no longer used by
the Exchange.
Finally, the proposed rule change allows the Exchange to require
its Market-Makers to provide continuous quotes in a percentage of
series in their appointed classes for a portion of the trading day that
is the same as that of market-makers at other exchanges, which the
Exchange believes will ultimately make the Exchange more competitive
and help remove impediments to and promote a free and open market.
For the foregoing reasons, the Exchange believes that the balance
between the benefits provided to Market-Makers and the obligations
imposed upon Market-Makers by the proposed rule change is appropriate.
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. In this regard and as indicated above, the
Exchange notes that the proposed rule change is comparable to current
rules at competing options exchanges related to market-maker continuous
quoting obligations \17\ and will ensure fair competition among the
options exchanges with respect to these obligations.
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\17\ See supra note 3.
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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
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not:
A. Significantly affect the protection of investors or the public
interest;
B. Impose any significant burden on competition; and
C. Become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) \18\ of the Act and
Rule 19b-4(f)(6) \19\ thereunder.
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\18\ 15 U.S.C. 78s(b)(3)(A).
\19\ 17 CFR 240.19b-4(f)(6).
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At any time within 60 days of the filing of this proposed rule
change, the Commission summarily may temporarily suspend 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 email to [email protected]. Please include
File Number SR-CBOE-2012-064 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-2012-064. This file
number should be included on the subject line if email 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 Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the 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-2012-064 and should be
submitted on or before August 7, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-17348 Filed 7-16-12; 8:45 am]
BILLING CODE 8011-01-P