[Federal Register Volume 74, Number 135 (Thursday, July 16, 2009)]
[Notices]
[Pages 34608-34609]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-16858]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60264; File No. SR-CBOE-2009-045]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its CBOE Stock Exchange (``CBSX'') Fees
Schedule To Establish Regulatory and Inactivity Fees
July 8, 2009.
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 1, 2009, 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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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its CBOE Stock Exchange (``CBSX'')
Fees Schedule to establish regulatory and inactivity fees. The text of
the proposed rule change 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 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.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its CBSX Fees Schedule to impose new
CBSX regulatory fees \3\ and an inactivity fee. \4\ Currently, CBOE
charges no fee to CBSX Trading Permit Holders who either apply for CBOE
to act as their designated examining authority or for whom CBOE acts as
the designated examining authority. However, processing these
applications and acting as the regulatory authority can be costly and
time-intensive, so it is necessary that CBOE be compensated for these
expenses so that CBOE can pay the costs associated with them. The
proposed Inactivity Fee will ensure that Trading Permit Holders are
sufficiently active on CBSX (CBSX is only authorized to issue 100 CBSX
Trading Permits). The Exchange believes the regulatory fees are
reasonable in that they help offset costs incurred in connection with
CBSX regulation. The Exchange also believes the inactivity fee is
appropriate since CBSX is only permitted to issue a finite number of
Trading Permits and when
[[Page 34609]]
permits are occupied by users that don't engage in meaningful trading
on CBSX, it could be at the expense of a potential permit holder that
might be willing to add meaningful liquidity to the CBSX marketplace.
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\3\ The Commission notes that the proposed regulatory fees are
as follows:
Initial Regulatory Review Fee: This fee is charged to any CBSX
Trading Permit Holder applicant that applies for a CBSX Trading
Permit that, if approved, would result in CBOE serving as the
Trading Permit Holder's designated examining authority. The amount
of the fee is $2,500.
Monthly Regulatory Fee: This fee is charged to any CBSX Trading
Permit Holder for whom CBOE acts as the Trading Permit Holder's
designated examining authority. The amount of the fee is $2,500 per
month.
\4\ The Commission notes that the proposed inactivity fee is as
follows:
This fee is charged to any CBSX Trading Permit Holder that
trades less than an average of 50,000 shares per day over a calendar
month period. This fee will be calculated monthly. The amount of
this fee is $5,000 per month.
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (``Act''), \5\ in general, and furthers
the objectives of Section 6(b)(4) \6\ of the Act in particular, in that
it is designed to provide for the equitable allocation of reasonable
dues, fees, and other charges among CBOE members and other persons
using its facilities.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
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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 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
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change is designated by the Exchange as
establishing or changing a due, fee, or other charge, thereby
qualifying for effectiveness on filing pursuant to Section
19(b)(3)(A)(ii) \7\ of the Act and subparagraph (f)(2) of Rule 19b-4
\8\ thereunder. At any time within 60 days of the filing of the
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.
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\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 17 C.F.R. 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposal 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 [email protected]. Please include
File No. SR-CBOE-2009-045 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 No. SR-CBOE-2009-045. 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, 100 F Street, NE.,
Washington, DC 20549, 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 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 No. SR-CBOE-2009-045 and should be
submitted on or before August 6, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Elizabeth M. Murphy,
Secretary.
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\9\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-16858 Filed 7-15-09; 8:45 am]
BILLING CODE 8010-01-P