[Federal Register Volume 78, Number 32 (Friday, February 15, 2013)]
[Notices]
[Pages 11260-11261]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-03576]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68900; File No. SR-CBOE-2013-014]


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

February 11, 2013.
    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 February 1, 2013, 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 its Fees Schedule. The text of the 
proposed rule change is available on the Exchange's Web site (http://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 eliminate the distinction between 
Sponsored Users and non-Sponsored Users as they relate to CBOE Command 
Connectivity Charges. Currently, Sponsored Users are charged twice the 
regular monthly fees for such charges, with the types and amounts of 
such fees described in the chart below:

------------------------------------------------------------------------
                                              Regular     Sponsored user
               Description                  monthly fee     monthly fee
------------------------------------------------------------------------
Network Access Port (1 Gbps)............            $500          $1,000
Network Access Port (10 Gbps)...........           3,000           6,000
Network Access Port.....................             250             500
(Disaster Recovery).....................
CMI Login ID............................             500           1,000
FIX Login ID............................             500           1,000
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[[Page 11261]]

    Going forward, the Exchange proposes to assess to Sponsored Users 
and all other non-Trading Permit Holders the same CBOE Command 
Connectivity Charges as are assessed to Trading Permit Holders 
(``TPHs''), and to state that all such fees apply to non-TPHs as well 
as TPHs. The purpose of the proposed change is to simplify the 
Exchange's fees structure for connectivity to the Exchange and have a 
standard set of connectivity fees that apply to both TPHs and non-TPHs.
 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. Eliminating, for the purpose of 
CBOE Command Connectivity Charges, the distinction between Sponsored 
Users and stating that these fees apply to both TPHs and non-TPHs is 
reasonable because it will allow Sponsored Users and other non-TPHs to 
pay half the amount that Sponsored Users are currently assessed for 
such fees. The proposed change is equitable and not unfairly 
discriminatory because it will allow Sponsored Users and non-TPHs to be 
assessed the same amounts as TPHs.
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    \3\ 15 U.S.C. 78f(b).
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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. Eliminating, for the purpose of 
CBOE Command Connectivity Charges, the distinction between Sponsored 
Users and stating that these fees apply to both TPHs and non-TPHs will 
relieve any possible burden on intramarket competition because it will 
ensure that TPHs and non-TPHs will be paying the same fee amounts. The 
Exchange believes that the proposed change will not impose any burden 
on intermarket competition, or have an impact on intermarket 
competition, because the proposed changes apply merely to connections 
to CBOE, and each exchange has different manners and structures for 
connectivity. Further, to the extent that the elimination of separate 
higher fees for Sponsored Users and the statement that the regular fees 
apply to both TPHs and non-TPHs could attract market participants 
connecting to other exchanges to connect to CBOE, market participants 
trading on other exchanges can always elect to do so.

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) of the Act \5\ 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 C.F.R. 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-2013-014 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-2013-014. 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-2013-014 and should be 
submitted on or before March 8, 2013.

    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. 2013-03576 Filed 2-14-13; 8:45 am]
BILLING CODE 8011-01-P