Daily Rules, Proposed Rules, and Notices of the Federal Government
The Exchange proposes to change CBOE Stock Exchange ("CBSX") Rule 51.8, to adopt a CBSX-Only order. The text of the proposed rule change is available on the Exchange's Web site (
In its filing with the Commission, the self-regulatory organization 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 those 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 parts of such statements.
The purpose of this proposed rule change is to revise CBOE Stock Exchange ("CBSX") Rule 51.8 to adopt a CBSX-Only order type. A CBSX-only order is an order to buy or sell that is to be executed in whole or in part on CBSX, and the portion not so executed is to be cancelled, without routing the order to another market center or market participant, and without being "flashed" at the NBBO price to CBSX Traders pursuant to Rule 52.6 when CBSX is not at the NBBO and the order is marketable against the NBBO. Thus, a CBSX-Only order would either immediately execute on CBSX, get booked on CBSX (provided it does not cause a locked or crossed market), or cancel. Many exchanges have similar order-types (
The Exchange believes the proposed rule change is consistent with section 6(b) of the Act
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.
No written comments were solicited or received with respect to the proposed rule change.
The proposed rule change is filed for immediate effectiveness pursuant to section 19(b)(3)(A) of the Act
CBOE has requested the Commission to waive the 30-day operative delay because the proposal may assist investors by allowing greater control over order routing. The Commission hereby grants the Exchange's request and believes such waiver is consistent with the protection of investors and the public interest. The CBSX-only order is similar to orders currently available on other markets and does not appear to raise any novel or significant issues.
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:
* Use the Commission's Internet comment form (
* Send an e-mail to
* Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2008-97. 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 (