[Federal Register Volume 78, Number 220 (Thursday, November 14, 2013)]
[Notices]
[Pages 68494-68496]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-27202]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70827; File No. SR-CBOE-2013-105]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend the CBSX Fees Schedule
November 7, 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 October 29, 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 the Fees Schedule of its CBOE Stock
Exchange (``CBSX''). 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's Public Reference Room.
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
CBSX proposes to amend its Fees Schedule to remove AAPL, BAC, GOOG,
NOK, and SIRI (the ``Removed Symbols'') from its list of Select Symbols
for whom transactions priced $1 or greater (all fees addressed in this
filing relate to transactions priced $1 or greater) are assessed a fee
of $0.0050 per share (for Maker executions) and provided a rebate of
$0.0045 per share (for Taker executions). This means that the Removed
Symbols will now fall into the ``all other securities'' category and
fees and rebates applicable to ``all other securities'' will apply to
the Removed Symbols, which are as follows (and are not being changed in
this proposed rule change):
[[Page 68495]]
------------------------------------------------------------------------
Execution type Rate
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Maker (adds less than 0.08% of $0.0018 per share.
TCV of liquidity in one day)
(1)(5).
Maker (adds at least 0.08% but $0.0017 per share.
less than 0.16% of TCV of
liquidity in one day) (1)(5).
Maker (adds at least 0.16% but $0.0016 per share.
less than 0.24% of TCV of
liquidity in one day) (1)(5).
Maker (adds at least 0.24% but $0.0015 per share.
less than 0.42% of TCV of
liquidity in one day) (1)(5).
Maker (adds 0.42% or more of TCV $0.0014 per share.
of liquidity in one day) (1)(5).
Taker (removes 9,999,999 shares $0.0015 rebate per share.
or less of liquidity in one day
(1) or less than 85% Execution
Rate).
Taker (removes 10,000,000 shares $0.0017 rebate per share.
or more of liquidity in one day
(1) and equal to or greater than
85% Execution Rate).
Maker (adds liquidity using a $0.0018 per share.
silent order).
Taker (removes silent order $0.0015 rebate per share.
liquidity).
Maker (adds liquidity using a $0.0018 per share.
silent-mid or silent-post-mid
order).
Taker (removes silent-mid or $0.0015 rebate per share.
silent-post-mid liquidity).
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The Removed Symbols had been included in the Select Symbols in an
aspirational attempt to increase liquidity provision in these products,
but such increased liquidity has not been achieved. CBSX hopes that
moving the Removed Symbols into the ``all other securities'' category
will increase liquidity provision in these products.
As no symbols would be listed in the Select Symbols, footnote (6)
of the CBSX Fees Schedule would be amended to read ``There are no
Select Symbols at this time.'' The Exchange does not wish to remove the
concept of the Select Symbols (and corresponding fees structure) from
the CBSX Fees Schedule because CBSX may desire in the future to move
other symbols into the ``Select Symbols'' and apply the corresponding
Select Symbols fees structure to such symbols (of course, the Exchange
would submit a proposed rule change in order to effect such a move).
The proposed change is to take effect on November 1, 2013.
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 requires that
Exchange rules provide for the equitable allocation of reasonable dues,
fees, and other charges among its Trading Permit Holders and other
persons using its facilities. The Exchange believes that it is
reasonable, equitable and not unfairly discriminatory to remove the
Removed Symbols from the Select Symbols and to assess the Removed
Symbols the fees of ``all other securities'' because transactions in
these products will merely be assessed the fee and rebate amounts of
all other CBSX securities. Further, this move is designed to attract
more trading in these products, as placing the Removed Symbols in the
Select Symbols (and applying the Select Symbols fees structure to the
Removed Symbols) failed to cause the desired increase in trading volume
in the Removed Symbols. Finally, these fees for the Removed Symbols
will be the same as for all other CBSX securities, and will be assessed
equally to all market participants.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(4).
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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. CBSX does not believe that the
proposed rule changes will impose any burden on intramarket competition
that is not necessary or appropriate in furtherance of the purposes of
the Act because the proposed changes will be applied to all market
participants. CBSX does not believe that the proposed rule changes will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because the
proposed changes only affect trading on CBSX. Further, the proposed
changes are designed to incentivize more trading on CBSX, which could
encourage other exchanges to enact their own competitive changes. To
the extent that the proposed changes make CBSX a more attractive
trading venue for market participants on other exchanges, such market
participants may elect to become CBSX market participants.
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. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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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-2013-105 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-2013-105. 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
[[Page 68496]]
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 such filing also will be available for inspection
and copying at the principal offices 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-2013-105, and should be
submitted on or before December 5, 2013.
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\7\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-27202 Filed 11-13-13; 8:45 am]
BILLING CODE 8011-01-P