[Federal Register Volume 76, Number 92 (Thursday, May 12, 2011)]
[Notices]
[Pages 27730-27732]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-11583]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64414; File No. SR-CBOE-2011-045]
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
May 5, 2011.
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 April 29, 2011, the Chicago Board Options Exchange,
Incorporated (``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 proposes to amend the CBOE Stock Exchange (``CBSX'')
Fees Schedule. 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.
[[Page 27731]]
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 self-regulatory organization
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 those 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 parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
This filing proposes to make changes to the CBSX Fees Schedule. The
first change is to eliminate the symbol ``Q'' from the stocks listed in
footnote 3 which are subject to certain transaction fees. The symbol
``Q'' is being deleted because the stock is no longer available for
trading on CBSX.
The Exchange also proposes to eliminate transaction fees and
rebates for NBBO Step-Up Trades. Such trades were only available
through CBSX's ``flash'' process. The Commission approved the deletion
of CBSX's ``flash'' rule on April 6, 2011.\3\ As such, the Exchange
proposes to delete these now-obsolete fees from the Fees Schedule.
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\3\ See Securities Exchange Act Release No. 64200 (April 6,
2011), 76 FR 20406 (April 12, 2011) (SR-CBOE-2011-036).
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CBSX further proposes to modify the transaction fees for a cross
trade that is the stock component of a qualified contingent trade.
Currently, the fee is $.0010 per share, with a maximum rate of $20 per
trade. The Exchange proposes increasing the fee to $.0012 per share and
increasing the maximum rate to $25 per trade. CBSX proposes these
increases in order to better recoup costs associated with such trades.
These changes will take effect on May 2, 2011.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (``Act''),\4\ in general, and furthers
the objectives of Section 6(b)(4) \5\ of the Act in particular, in that
it is designed to provide for the equitable allocation of reasonable
dues, fees, and other charges among persons using Exchange facilities.
CBSX proposes eliminating obsolete references to the symbol ``Q'' and
the fees that were only applicable to the now-nonexistent ``flash''
process from its Fees Schedule in order to avoid investor confusion.
The evasion of confusion is consistent with the objectives of Section
6(b)(5) \6\ of the Act of ensuring that the rules of the Exchange are
designed to perfect the mechanism of a free and open market and to
protect investors and the public interest. CBSX proposes increasing
transaction fees for a cross trade that is the stock component of a
qualified contingent trade to provide for the equitable allocation of
such fees in accordance of Section 6(b)(4) \7\ of the Act. The fee will
be same regardless of user, therefore ensuring that such fees are
allocated equitably and are not designed to permit unfair
discrimination between customers, issuers, brokers, or dealers.\8\
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
\6\ 15 U.S.C. 78f(b)(5).
\7\ See supra note 5.
\8\ This sentence was revised at the request of the Exchange.
See e-mail from Jeff Dritz, Attorney, CBOE, to Steve Kuan, Special
Counsel, Division of Trading and Markets, Commission, on May 5,
2011.
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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 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
The proposed rule change is designated by the Exchange as
establishing or changing a due, fee, or other charge, thereby
qualifying for effectiveness on filing pursuant to Section 19(b)(3)(A)
of the Act \9\ and subparagraph (f)(2) of Rule 19b-4 \10\ 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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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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-2011-045 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-2011-045. 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 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
a.m. and 3 p.m. Copies of such 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-2011-045 and should be
submitted on or before June 2, 2011.
[[Page 27732]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-11583 Filed 5-11-11; 8:45 am]
BILLING CODE 8011-01-P