[Federal Register Volume 72, Number 114 (Thursday, June 14, 2007)]
[Notices]
[Pages 32931-32933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-11488]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55882; File No. SR-CBOE-2007-54]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to CBOE and CBSX Market Data Fees

June 8, 2007.
    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 May 29, 2007, the Chicago Board Options Exchange, Incorporated 
(``Exchange'' or ``CBOE'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change as described

[[Page 32932]]

in Items I, II, and III below, which Items have been substantially 
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 Fees Schedule to amend fees 
relating to CBOE's TickerXpress market data delivery service. The 
Exchange also proposes to amend the CBOE Stock Exchange (``CBSX'') Fees 
Schedule to establish a market data infrastructure fee. The text of the 
proposed rule change is available on the Exchange's Web site (http://www.cboe.org/legal), at the Exchange's principal office, 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
a. TickerXpress Fees
    TickerXpress (``TX'') is an Exchange service that supplies market 
data to Exchange market-makers trading on the Hybrid Trading System. 
The Exchange proposes to amend its Fees Schedule as it relates to TX 
fees.
    Currently, the Exchange charges members receiving TX market data a 
fee of $100 per month and charges members receiving ``enhanced'' TX 
market data a fee of $200 per month. Enhanced TX data are data that 
have been processed so that they can be used by market-makers utilizing 
quoting software. Recently, the Exchange's costs to process TX data 
have increased. The Exchange proposes to eliminate the $100 per month 
and $200 per month TX fees and replace them with a fee of $300 per 
month for enhanced TX market data only. The proposed fee would help 
compensate the Exchange for its increased costs in providing this data 
to Exchange members.
    From time to time one or more third-party service providers may 
make available for license to TX users software for the use and display 
of market data (``TX Software''). The Exchange may also in the future 
make such software available to TX users. The Exchange proposes to 
adopt a fee of $100 per TX user per month for use of TX Software. The 
proposed fee will help the Exchange offset the license fees the 
Exchange pays its third-party service provider for providing the TX 
Software to Exchange members or offset the Exchange's own costs in 
making such software available.
b. CBSX Market Data Infrastructure Fee
    CBSX has contracted with a third-party market data vendor and other 
parties to help establish facilities at CBSX through which the third-
party market data vendor can provide CBSX participants with certain 
market data. The monthly cost to CBSX for maintaining the 
infrastructure to help make this market data available is $19,400. CBSX 
proposes to assess CBSX participants that receive this market data a 
monthly fee to recoup the fees CBSX pays for providing the 
infrastructure to make this market data available. The amount of the 
monthly fee shall be equal to $19,400 divided by the number of CBSX 
participants receiving the data.
    The Exchange implemented the proposed fee changes on June 1, 2007.
2. Statutory Basis
    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) \4\ in particular, in that it is designed 
to provide for the equitable allocation of reasonable dues, fees, and 
other charges among CBOE members.
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    \3\ 15 U.S.C. 78f.
    \4\ 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 proposed rule change establishes or changes a 
due, fee, or other charge imposed by the Exchange, it has become 
effective upon filing pursuant to Section 19(b)(3)(A) of the Act \5\ 
and Rule 19b-4(f)(2) \6\ 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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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 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-2007-54 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE, 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-CBOE-2007-54. 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

[[Page 32933]]

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-2007-54 and should be 
submitted on or before July 5, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E7-11488 Filed 6-13-07; 8:45 am]
BILLING CODE 8010-01-P