[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]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
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
------------------------------------------------------------------------
[[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.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f(b).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 C.F.R. 240.19b-4(f).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-03576 Filed 2-14-13; 8:45 am]
BILLING CODE 8011-01-P