[Federal Register Volume 77, Number 237 (Monday, December 10, 2012)]
[Notices]
[Pages 73508-73509]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-29745]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68352; File No. SR-CBOE-2012-113]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend the CBOE Stock Exchange Fees Schedule

December 4, 2012.
    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 November 21, 2012, 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 the Fees Schedule of its CBOE Stock 
Exchange (``CBSX''). The text of the proposed rule change is available 
on the Exchange's Web site (www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), 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 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 the CBSX Fees Schedule with regards 
to connectivity fees. CBSX recently moved its trading systems over to 
the Equinix NY4 facility (``NY4''). As of December 1, 2012, CBOE will 
also be moving its trading systems over to NY4. CBOE and CBSX will be 
retaining some trading systems in Chicago (the ``Disaster Recovery 
Systems'') in case of the occurrence of some manner of disaster which 
prevents NY4 from operating. These Disaster Recovery Systems can be 
accessed via Network Access Ports in Chicago (the ``Disaster Recovery 
Network Access Ports''). CBSX market participants may maintain Disaster 
Recovery Network Access Ports in order to be able to connect to the 
Disaster Recovery Systems in case of such disaster. The fee for a 
Disaster Recovery Network Access Port will be $250 per month ($500 for 
Sponsored Users; for connectivity fees, CBSX charges twice the rate for 
Sponsored Users as for regular access, and therefore merely proposes to 
apply the same concept to the new Disaster Recovery Network Access Port 
fees). This amount will allow the Exchange to maintain the Disaster 
Recovery Network Access Ports in case they become necessary.
    CBSX and CBOE can be accessed via the same Network Access Port. In 
order to prevent market participants accessing both CBOE and CBSX from 
having to pay two separate Network Access Port fees (one to CBOE and 
one to CBSX) for using the same Network Access Port, the Exchange 
proposes to amend the CBSX Fees Schedule to state that any CBSX market 
participant that accesses both CBOE and CBSX via the same Network 
Access Port will only be assessed the CBOE Network Access Port fee for 
that port. This also applies to Disaster Recovery Network Access Ports, 
meaning that a CBSX market participant that connects to the CBOE and 
CBSX Disaster Recover Systems via a Disaster Recovery Network Access 
Port will only need to pay the CBOE Disaster Recovery Network Access 
Port fee.
    The proposed change is to take effect on December 1, 2012.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act and the rules and regulations thereunder applicable to the 
Exchange and, in particular, the requirements of Section 6(b) of the 
Act.\3\ Specifically, the Exchange believes the proposed rule change is 
consistent with Section 6(b)(4) of the Act,\4\ which provides that 
Exchange rules may provide for the equitable allocation of reasonable 
dues, fees, and other charges among its Trading Permit Holders and 
other persons using its facilities. The fee for Disaster Recovery 
Network Access Ports is reasonable because it will allow CBSX to 
maintain those ports in case of necessity. The fee for Disaster 
Recovery Network Access Ports is equitable and not unfairly 
discriminatory because it will be applied equally to all CBSX market 
participants wishing to maintain a connection to the Disaster Recovery 
Systems via a Disaster Recovery Network Access Port (except Sponsored 
Users). Assessing higher fees for Sponsored Users is equitable and not 
unfairly discriminatory because Sponsored Users are able to access the 
Exchange and use the equipment provided without possessing a trading 
permit. As such, CBSX Traders who have a trading permit will have a 
higher level of commitment to transacting business on CBSX and using 
Exchange facilities than Sponsored Users. Finally, these differences in 
the amounts for Sponsored Users and regular users maintain the same 
proportional

[[Page 73509]]

difference as that for other connectivity fees.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(4).
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    Allowing a CBSX market participant that accesses both CBOE and CBSX 
via the same Network Access Port to only be assessed the CBOE Network 
Access Port fee for that port (for Disaster Recovery Network Access 
Port fees, as well) is reasonable because it allows such CBSX market 
participants that access both CBOE and CBSX via the same Network Access 
Port to avoid having to pay two fees for one port. This is equitable 
and not unfairly discriminatory because there is only one port being 
accessed, and because it will be applied to all CBSX market 
participants that access both CBOE and CBSX via the same Network Access 
Port.

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

    The Exchange neither solicited nor received comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) \5\ of the Act and paragraph (f) 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).
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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 email to [email protected]. Please include 
File Number SR-CBOE-2012-113 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-2012-113. This file 
number should be included on the subject line if email 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 
10:00 a.m. and 3:00 p.m. Copies of the 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 Number SR-CBOE-2012-113 and should be 
submitted on or before December 31, 2012.

    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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-29745 Filed 12-7-12; 8:45 am]
BILLING CODE 8011-01-P