[Federal Register Volume 73, Number 73 (Tuesday, April 15, 2008)]
[Notices]
[Pages 20342-20344]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-7933]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57633; File No. SR-CBOE-2008-39]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Temporary Membership Status Access Fee

April 8, 2008.
    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 March 31, 2008, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission'') a proposed rule change as described in 
Items I, II and III below, which Items have been prepared by CBOE. The 
Exchange filed the proposal as one establishing or changing a due,

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fee, or other charge imposed by the Exchange under Section 19(b)(3)(A) 
of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the 
proposal effective upon receipt of this filing by the Commission. 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.
    \3\ 15 U.S.C 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    CBOE proposes to adjust the monthly access fee for persons granted 
temporary CBOE membership status (``Temporary Members'') pursuant to 
Interpretation and Policy .02 under CBOE Rule 3.19 (``Rule 3.19.02''). 
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
    The current access fee for Temporary Members under Rule 3.19.02 \5\ 
is $8,468 per month and took effect on March 1, 2008. The Exchange 
proposes to revise the access fee to be $8,260 per month commencing on 
April 1, 2008.
    The Exchange used the following process to set the proposed access 
fee: The Exchange polled each of the clearing firms that assists in 
facilitating at least 10% of the transferable CBOE membership leases 
and obtained the Clearing Firm Floating Monthly Rate \6\ designated by 
each of these clearing firms for the month of April 2008. The Exchange 
then set the proposed access fee at an amount equal to the highest of 
these Clearing Firm Floating Monthly Rates.
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    \5\ See Securities Exchange Act Release No. 56458 (September 18, 
2007), 72 FR 54309 (September 24, 2007) (SR-CBOE-2007-107) for a 
description of the Temporary Membership status under Rule 3.19.02.
    \6\ The term ``Clearing Firm Floating Monthly Rate'' refers to 
the floating monthly rate that a clearing firm designates, in 
connection with transferable membership leases that the clearing 
firm assisted in facilitating, for leases that utilize that floating 
monthly rate.
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    The Exchange used the same process to set the proposed access fee 
that it used to set the current access fee. The only difference is that 
the Exchange used Clearing Firm Floating Monthly Rate information for 
the month of April 2008 to set the proposed access fee (instead of 
Clearing Firm Floating Monthly Rate information for the month of March 
2008 as was used to set the current access fee) in order to take into 
account changes in Clearing Firm Floating Monthly Rates for the month 
of April 2008.
    The Exchange believes that the process used to set the proposed 
access fee and the proposed access fee itself are appropriate for the 
same reasons set forth in CBOE rule filing SR-CBOE-2008-12 in support 
of that process and the original access fee for Temporary Members under 
Rule 3.19.02.\7\
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    \7\ See Securities Exchange Act Release No. 57293 (February 8, 
2008), 73 FR 8729 (February 14, 2008) (SR-CBOE-2008-12), which 
established the original access fee for Temporary Members under Rule 
3.19.02, for detail regarding the rationale in support of the 
original access fee and the process used to set that fee, which is 
also applicable to this proposed rule change as well.
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    The proposed access fee will remain in effect until such time 
either that the Exchange submits a further rule filing pursuant to 
Section 19(b)(3)(A)(ii) of the Act \8\ to modify the proposed access 
fee or the Temporary Membership status under Rule 3.19.02 is 
terminated. Accordingly, the Exchange may further adjust the proposed 
access fee in the future if the Exchange determines that it would be 
appropriate to do so taking into consideration lease rates for 
transferable CBOE memberships prevailing at that time.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
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    The procedural provisions of the CBOE Fee Schedule related to the 
assessment of the proposed access fee are not proposed to be changed 
and will remain the same as the current procedural provisions regarding 
the assessment of the current access fee.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Act,\9\ in general, and furthers the objectives of 
Section 6(b)(4) of the Act,\10\ 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.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 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 either 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 pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-
4(f)(2) thereunder.\12\ At any time within 60 days of the filing of 
such 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 the furtherance of the purposes of the Act.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 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-2008-39 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-2008-39. This file 
number should be included on the subject line if e-mail is used. To 
help the

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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 the 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 SR-CBOE-2008-39 and should be submitted on or before 
May 6, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-7933 Filed 4-14-08; 8:45 am]
BILLING CODE 8011-01-P