[Federal Register Volume 70, Number 14 (Monday, January 24, 2005)]
[Notices]
[Pages 3407-3408]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-214]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51027; File No. SR-CBOE-2005-07]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Board Options 
Exchange, Inc., Relating to Fees for Transactions in Options on the 
Standard & Poor's Depository Receipts[reg]

January 12, 2005.
    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 January 11, 2005, the Chicago Board Options Exchange, Inc. 
(``Exchange'' or ``CBOE'') filed with the Securities and Exchange 
Commission (``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 is proposing to amend its Fee Schedule to establish 
fees for transactions in options on the Standard & Poor's Depository 
Receipts[reg] (``SPDRs[reg]''). The text of the proposed rule change is 
available on CBOE's Web site (http://www.cboe.org/legal/), at CBOE'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, 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 Exchange proposes to amend its Fee Schedule to establish fees 
for transactions in options on SPDRs.
    The transaction fee for customer orders in options on SPDRs will be 
$.15 per contract.\3\ All other transaction fees for options on SPDRs 
will be equal to the transaction fees currently applied to options on 
the Nasdaq-100 Index Tracking Stock (``QQQ''). Specifically, market-
maker and DPM transaction fees will be $.24 per contract, member firm 
proprietary transaction fees will be $.20 for facilitation of customer 
orders and $.24 for non-facilitation orders, broker-dealer transaction 
fees will be $.25 per contract, non-member market-maker transaction 
fees will be $.26 per contract, and linkage fees will be $.24 per 
contract.
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    \3\ Under the current CBOE Fee Schedule, the customer 
transaction fee for all options on exchange-traded funds (other than 
QQQ and DIA options) is $.15 per contract.
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    As per the current CBOE Fee Schedule, the floor brokerage fee for 
options on SPDRs will be $.04 per contract and $.02 per contract for 
crossed orders. The RAES Access Fee will not apply as options on SPDRs 
will trade on the Exchange's Hybrid Trading System. The $.22 marketing 
fee will apply to market-maker, DPM and e-DPM transactions in options 
on SPDRs.\4\
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    \4\ See File No. SR-CBOE-2005-05.
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    The proposed rule change is intended to establish fees for CBOE's 
options on SPDRs that are competitive with the fees charged by other 
exchanges for transactions in options on SPDRs.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section 
6(b)(4) of the Act,\5\ in that it provides for the equitable allocation 
of reasonable dues, fees and other charges among its members and other 
persons using its facilities.
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    \5\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange 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

    Because the foregoing rule change establishes or changes a due, fee 
or other charge imposed by the Exchange, it has become effective 
pursuant to Section 19(b)(3)(A)(ii) of the Act \6\ and Rule 19b-4(f)(2) 
\7\ 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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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 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 No. SR-CBOE-2005-07 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-CBOE-2005-07. 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 Commissions Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent

[[Page 3408]]

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. Copies of such filing also will be available for 
inspection and copying at the principal office of the 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 Number SR-CBOE-2005-07 and should be 
submitted on or before February 14, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5-214 Filed 1-21-05; 8:45 am]
BILLING CODE 8010-01-P