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It is therefore ordered, pursuant to proposed rule change and discussed any 2. Statutory Basis
Section 19(b)(2) of the Act,9 that the comments it received on the proposed By enhancing HOSS opening
proposed rule change (SR–Amex–2005– rule change. The text of these statements procedures and making an e-DPM’s
007), as amended, be, and it hereby is, may be examined at the places specified HOSS obligations consistent with those
approved. in Item IV below. The CBOE has of a DPM’s, the Exchange believes that
For the Commission, by the Division of prepared summaries, set forth in this proposed rule change is consistent
Market Regulation, pursuant to delegated sections A, B, and C below, of the most with Section 6(b) of the Act,8 in general,
authority.10 significant aspects of such statements. and further the objectives of Section
Margaret H. McFarland, 6(b)(5) 9 in particular, in that it should
Deputy Secretary.
A. Self-Regulatory Organization’s
promote just and equitable principles of
Statement of the Purpose of, and
[FR Doc. E5–1580 Filed 4–6–05; 8:45 am] trade, serve to remove impediments to
Statutory Basis for, the Proposed Rule
BILLING CODE 8010–01–P and perfect the mechanism of a free and
Change
open market and a national market
1. Purpose system, and protect investors and the
SECURITIES AND EXCHANGE public interest.
COMMISSION The Exchange is proposing to amend
its rules relating to HOSS procedures B. Self-Regulatory Organization’s
[Release No. 34–51459; File No. SR–CBOE– Statement on Burden on Competition
2005–27] and the rules relating to e-DPMs to
require all e-DPMs to submit opening This proposed rule change does not
Self-Regulatory Organizations; Notice quotes during the HOSS opening impose any burden on competition that
of Filing of a Proposed Rule Change by rotation for every series in each Hybrid is not necessary or appropriate in
the Chicago Board Options Exchange, class to which any e-DPM is allocated. furtherance of the purposes of the Act.
Incorporated Relating to the Hybrid Currently, CBOE rules only require C. Self-Regulatory Organization’s
Opening System DPMs to submit opening quotes in Statement on Comments on the
option classes listed and traded on the Proposed Rule Change Received From
March 31, 2005.
Exchange. The Exchange believes that Members, Participants or Others
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 requiring e-DPMs to submit opening
No written comments were solicited
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 quotes along with DPMs would enhance
or received with respect to the proposed
notice is hereby given that on March 24, the opening process for Hybrid option
rule change.
2005, the Chicago Board Options classes by providing greater liquidity
Exchange, Incorporated (‘‘CBOE’’ or during opening rotations, which would III. Date of Effectiveness of the
‘‘Exchange’’) filed with the Securities in turn lessen the possibility that a Proposed Rule Change and Timing for
and Exchange Commission Hybrid option class might be unable to Commission Action
(‘‘Commission’’) the proposed rule open. Within 35 days of the date of
change as described in Items I, II, and To illustrate, under current CBOE publication of this notice in the Federal
III below, which Items have been rules, only a DPM is required to submit Register or within such longer period (i)
prepared by the CBOE. The Commission opening quotes in a series 3 and, if the as the Commission may designate up to
is publishing this notice to solicit DPM’s quoted size at the open is below 90 days of such date if it finds such
comments on the proposed rule change the total size of the market orders on the longer period to be appropriate and
from interested persons. other side of the market and no other publishes its reasons for so finding or
quotes are on the open, there is a market (ii) as to which the CBOE consents, the
I. Self-Regulatory Organization’s Commission will:
Statement of the Terms of Substance of order imbalance and, under CBOE rules,
HOSS will not open that series.4 If all (A) By order approve such proposed
the Proposed Rule Change rule change, or
e-DPMs are now required to add size to
The proposed rule change would (B) Institute proceedings to determine
the opening quote for each series in the
amend the Hybrid Opening System whether the proposed rule change
option classes allocated to e-DPMs, the
(‘‘HOSS’’) procedures and the rule should be disapproved.
incidence of market order imbalances is
relating to the obligations of electronic
likely to decrease. IV. Solicitation of Comments
designated primary market makers (‘‘e-
DPMs’’). The text of the proposed rule As such, HOSS rules 5 and the rules Interested persons are invited to
change is available on the CBOE’s Web relating to e-DPM and DPM obligations, submit written data, views, and
site (http://www.cboe.com), at the respectively,6 will be amended to arguments concerning the foregoing,
CBOE’s Office of the Secretary, and at require both e-DPMs and DPMs to enter including whether the proposed rule
the Commission’s Public Reference opening quotes in accordance with change is consistent with the Act.
Room. HOSS rules in 100% of the series of Comments may be submitted by any of
each class allocated to that DPM or e- the following methods:
II. Self-Regulatory Organization’s
DPM.7 Electronic Comments
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule 3 SeeRule 6.2B(a).
• Use the Commission’s Internet
Change 4 See comment form (http://www.sec.gov/
Rule 6.2B(e)(iii).
In its filing with the Commission, 5 Rule 6.2B. rules/sro.shtml); or
CBOE included statements concerning 6 DPM obligations are provided under Rule • Send an e-mail to rule-
the purpose of and basis for the 8.85(a) and e-DPM obligations are provided under comments@sec.gov. Please include File
Rule 8.93. Number SR–CBOE–2005–27 on the
7 Under current CBOE rules, DPMs already are
9 15 U.S.C. 78s(b)(2). required to submit opening quotes in all of its
subject line.
10 17 CFR 200.30–3(a)(12). allocated classes, but this rule filing proposes to
1 15 U.S.C. 78s(b)(1). 8 15 U.S.C. 78f(b).
adopt rule language that will apply uniformly to
2 17 CFR 240.19b–4. both DPMs and e-DPMs. 9 15 U.S.C. 78f(b)(5).
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17732 Federal Register / Vol. 70, No. 66 / Thursday, April 7, 2005 / Notices
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