[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