[Federal Register Volume 75, Number 159 (Wednesday, August 18, 2010)]
[Notices]
[Pages 51132-51134]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-20407]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62704; File No. SR-CBOE-2010-073]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Amend Its Fees Schedule and Circular Regarding Trading
Permit Holder Application and Other Related Fees
August 12, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on August 3, 2010, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or the ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by CBOE. The
Commission is
[[Page 51133]]
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
Chicago Board Options Exchange, Incorporated (``CBOE'' or
``Exchange'') proposes to amend its Fees Schedule and circular
regarding Trading Permit Holder application and other related fees
(``Trading Permit Fee Circular'') as they apply to tier appointments
and bandwidth packets. 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's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, CBOE 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. CBOE 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
CBOE is proposing to amend its Fees Schedule and Trading Permit Fee
Circular to extend the deadline for notification of termination of a
tier appointment or bandwidth packet until the last business day of the
prior month. Specifically, tier appointments and bandwidth packets will
be renewed automatically for the next month unless the Trading Permit
Holder submits written notification to the CBOE Registration Services
Department by the last business day of the prior month to cancel the
tier appointment or bandwidth packet effective at or prior to the end
of the applicable month. Trading Permit Holders were previously
required to submit this notification by the 25th day of the prior month
(or the preceding business day if the 25th was not a business day).
CBOE no longer believes that it requires this additional notice in the
context of tier appointment and bandwidth packet terminations.
CBOE is also proposing to amend its Fees Schedule and Trading
Permit Fee Circular to establish a fee scale for the purchase of Order
Entry Bandwidth Packets under which the cost of an Order Entry
Bandwidth Packet would decline at certain break points as additional
Order Entry Bandwidth Packets are purchased. Specifically, the first
through fifth Order Entry Bandwidth Packets obtained by a Trading
Permit Holder would cost $2,000 per packet per month, the sixth through
eighth Order Entry Bandwidth Packets obtained by that Trading Permit
Holder would cost $1,000 per packet per month, the ninth through
thirteenth Order Entry Bandwidth Packets obtained by that Trading
Permit Holder would cost $500 per packet per month, and the fourteenth
and each additional Order Entry Bandwidth Packet obtained by that
Trading Permit Holder would cost $250 per packet per month. As with
CBOE's current bandwidth packet fees, the foregoing fees would be
discounted by 20% through the end of 2010.
CBOE also proposes to allow Trading Permit Holders to obtain and
assign to a particular Sponsored User of the Trading Permit Holder one
or more Order Entry Bandwidth Packets. In that event, the fees for the
assigned bandwidth packet(s) would be assessed to the Trading Permit
Holder and the bandwidth packet(s) could be utilized solely by the
Sponsored User (and not by the Trading Permit Holder or any other
Sponsored User).
Fees for Order Entry Bandwidth Packets assigned to a particular
Sponsored User would be subject to the same fee scale as above and to
the 20% discount through the end of 2010 that would apply to Order
Entry Bandwidth Packets obtained by Trading Permit Holders that are not
assigned to a particular Sponsored User, with one difference.
Specifically, each break point in the fee scale would be one numeral
higher than in the fee scale for Order Entry Bandwidth Packets not
assigned to a particular Sponsored User. Thus, for example, the first
tier of the fee scale for Order Entry Bandwidth Packets assigned to a
particular Sponsored User would be for the first four Order Entry
Bandwidth Packets instead of for the first three Order Entry Bandwidth
Packets. The reason for this difference is that each Trading Permit
Holder has already paid for the order entry bandwidth allocation that
is provided by the Trading Permit by paying for the Trading Permit so
the fee scale is structured so that the fee for the first Order Entry
Bandwidth Packet that is assigned to a Sponsored User is paid before
the sliding scale becomes applicable.
Thus, the full fee scale for Order Entry Bandwidth Packets assigned
by a Trading Permit Holder to a Sponsored User would be that the first
through sixth Order Entry Bandwidth Packets assigned to the Sponsored
User would cost $2,000 per packet per month, the seventh through ninth
Order Entry Bandwidth Packets assigned to that Sponsored User would
cost $1,000 per packet per month, the tenth through fourteenth Order
Entry Bandwidth Packets assigned to that Sponsored User would cost $500
per packet per month, and the fifteenth and each additional Order Entry
Bandwidth Packet assigned to that Sponsored User would cost $250 per
packet per month.
CBOE is proposing to implement the foregoing changes effective for
the month of August 2010.
2. Statutory Basis
The proposed rule change will treat all Trading Permit Holders in a
consistent manner and apply the same fees with respect to all Sponsored
Users. The difference in the fee scale applicable with respect to
Sponsored Users is reasonable in that Sponsored Users are not CBOE
Trading Permit Holders and have not already obtained an order entry
bandwidth allowance through the purchase of a Trading Permit.
Accordingly, the Exchange believes that the proposed rule change is
consistent with Section 6(b) of the Act,\3\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \4\ in particular, in that
it is designed to provide for the equitable allocation of reasonable
dues, fees, and other charges among persons using its facilities for
the reasons described above.
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\3\ 15 U.S.C. 78f(b).
\4\ 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 that is 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 foregoing rule has become effective pursuant to Section
19(b)(3)(A)
[[Page 51134]]
of the Act \5\ and subparagraph (f)(2) of Rule 19b-4\6\ thereunder. At
any time within 60 days of the filing of the 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.
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 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 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 e-mail to [email protected]. Please include
File Number SR-CBOE-2010-073 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-2010-073. 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 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
a.m. and 3 p.m. Copies of such 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 No. SR-CBOE-2010-073 and should be
submitted on or before September 8, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-20407 Filed 8-17-10; 8:45 am]
BILLING CODE 8010-01-P