Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Options Regulatory Fee, 44162-44164 [2015-18131]
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44162
Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Notices
• Other responsibilities as required
upon implementation of PredicTox
A full list of Steering Committee
responsibilities, as well as
responsibilities of the Chair, may be
found on the Reagan-Udall Foundation
Web site.
III. PredicTox Steering Committee
Positions and Selection Criteria
V. Nomination Instructions
RUF is seeking nominations for 7
voting members of the PredicTox
Steering Committee, comprised of the
following 5 categories:
• Patient Advocate: 1 member
• Pharmaceutical sector: 2 members
• Technology sector: 1 member
• Academia/Research Institute: 2
members
• At Large: 1 member
The Steering Committee will also
have 2 members from the FDA
(appointed by the FDA) and 1 member
from the National Institutes of Health
(appointed by the National Institutes of
Health). These 3 individuals will be
non-voting members.
Nominees for the voting positions will
be evaluated by the RUF Board based on
the following required criteria for each
of the 7 positions:
• Ability to complete Steering
Committee responsibilities, listed above
• Currently employed by/
volunteering for stakeholder field (e.g.,
pharmaceutical, academia, patient
advocate, etc.) with several years of
relevant experience
• Leading expert in their relevant
field (based on position, publications, or
other experience)
• Working knowledge of at least one
of the following areas: Risk assessment;
drug safety profiling; pharmacology or
systems pharmacology; toxicology or
systems toxicology; biostatistics;
cardiology; oncology; bioinformatics;
ontology; multi-scale modeling;
knowledge management platforms;
software development; or data sharing
• Prior experience serving on a
related or similar governance body
• Understanding of the landscape and
the impact on the stakeholder group
they are representing with their seat
asabaliauskas on DSK5VPTVN1PROD with NOTICES
IV. Terms of Service
• The PredicTox Steering Committee
meets in-person at least twice per year,
with teleconferences in between
meetings as deemed necessary by the
Chair
• Members will serve two or three
year, staggered terms, as determined by
the RUF Board
• Members do not receive
compensation from RUF
• Members can be reimbursed by RUF
for actual and reasonable expenses
VerDate Sep<11>2014
19:59 Jul 23, 2015
Jkt 235001
incurred in support of PredicTox in
accordance with applicable law and
their specific institutional policies
• Members are subject to the
PredicTox Conflict of Interest policies
(additional information can be accessed
on the Reagan-Udall Foundation Web
site)
• The nomination form can be
accessed on the Reagan-Udall
Foundation Web site
• Individuals may be nominated for 1
or more of the 5 stakeholder categories
• Individuals may nominate
themselves or others
• The nomination deadline is August
28, 2015.
Dated: July 20, 2015.
Jane Reese-Coulbourne,
Executive Director, Reagan-Udall Foundation
for the FDA.
[FR Doc. 2015–18123 Filed 7–23–15; 8:45 am]
BILLING CODE 4164–04–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75491; File No. SR–CBOE–
2015–064]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to the Options
Regulatory Fee
July 20, 2015.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934,1 and
Rule 19b–4 thereunder,2 notice is
hereby given that on July 10, 2015,
Chicago Board Options Exchange,
Incorporated 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Chicago Board Options Exchange,
Incorporated (the ‘‘Exchange’’ or
‘‘CBOE’’) proposes to amend the
Options Regulatory Fee. The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.com/AboutCBOE/
PO 00000
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
Fmt 4703
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 decrease
the Options Regulatory Fee (‘‘ORF’’)
from $.0086 to $.0064 per contract in
order to help ensure that revenue
collected from the ORF, in combination
with other regulatory fees and fines,
does not exceed the Exchange’s total
regulatory costs. The proposed fee
change would be operative on August 1,
2015.
The ORF is assessed by the Exchange
to each Trading Permit Holder for all
options transactions executed or cleared
by the Trading Permit Holder that are
cleared by The Options Clearing
Corporation (‘‘OCC’’) in the customer
range (i.e., transactions that clear in a
customer account at OCC) regardless of
the exchange on which the transaction
occurs.3 In other words, the Exchange
imposes the ORF on all customer-range
transactions executed by a Trading
Permit Holder, even if the transactions
do not take place on the Exchange. The
ORF also is charged for transactions that
are not executed by a Trading Permit
Holder but are ultimately cleared by a
Trading Permit Holder. In the case
where a Trading Permit Holder executes
a transaction and a different Trading
Permit Holder clears the transaction, the
ORF is assessed to the Trading Permit
Holder who executed the transaction. In
the case where a non-Trading Permit
Holder executes a transaction and a
Trading Permit Holder clears the
transaction, the ORF is assessed to the
Trading Permit Holder who clears the
3 The ORF also applies to customer-range
transactions executed during Extended Trading
Hours.
1 15
Frm 00144
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
Sfmt 4703
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Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Notices
asabaliauskas on DSK5VPTVN1PROD with NOTICES
transaction. The ORF is collected
indirectly from Trading Permit Holders
through their clearing firms by OCC on
behalf of the Exchange.
The ORF is designed to recover a
material portion of the costs to the
Exchange of the supervision and
regulation of Trading Permit Holder
customer options business, including
performing routine surveillances,
investigations, examinations, financial
monitoring, as well as policy,
rulemaking, interpretive and
enforcement activities. The Exchange
believes that revenue generated from the
ORF, when combined with all of the
Exchange’s other regulatory fees and
fines, will cover a material portion, but
not all, of the Exchange’s regulatory
costs. The Exchange notes that its
regulatory responsibilities with respect
to Trading Permit Holder compliance
with options sales practice rules have
largely been allocated to FINRA under
a 17d–2 agreement. The ORF is not
designed to cover the cost of that
options sales practice regulation.
The Exchange will continue to
monitor the amount of revenue
collected from the ORF to ensure that it,
in combination with its other regulatory
fees and fines, does not exceed the
Exchange’s total regulatory costs. The
Exchange monitors its regulatory costs
and revenues at a minimum on a semiannual basis. If the Exchange
determines regulatory revenues exceed
or are insufficient to cover a material
portion of its regulatory costs, the
Exchange will adjust the ORF by
submitting a fee change filing to the
Commission. The Exchange notifies
Trading Permit Holders of adjustments
to the ORF via regulatory circular. The
Exchange endeavors to provide Trading
Permit Holders with such notice at least
30 calendar days prior to the effective
date of the change.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.4 Specifically,
the Exchange believes the proposed rule
change is consistent with Section 6(b)(4)
of the Act,5 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. Additionally,
the Exchange believes the proposed rule
4 15
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
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19:59 Jul 23, 2015
Jkt 235001
change is consistent with the Section
6(b)(5) 6 requirement that the rules of an
exchange not be designed to permit
unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes the proposed
fee change is reasonable because it
would help ensure that revenue
collected from the ORF, in combination
with other regulatory fees and fines,
does not exceed the Exchange’s total
regulatory costs. Moreover, the
Exchange believes the ORF ensures
fairness by assessing higher fees to those
Trading Permit Holders that require
more Exchange regulatory services
based on the amount of customer
options business they conduct.
Regulating customer trading activity is
much more labor intensive and requires
greater expenditure of human and
technical resources than regulating noncustomer trading activity, which tends
to be more automated and less laborintensive. As a result, the costs
associated with administering the
customer component of the Exchange’s
overall regulatory program are
materially higher than the costs
associated with administering the noncustomer component (e.g., Trading
Permit Holder proprietary transactions)
of its regulatory program.7 The
Exchange believes the proposed fee
change is equitable and not unfairly
discriminatory in that it is charged to all
Trading Permit Holders on all their
transactions that clear in the customer
range at the OCC.
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, because it
applies to all Trading Permit Holders.
The proposed ORF is comparable to fees
charged by other options exchanges for
the same or similar service. The
Exchange believes any burden on
competition imposed by the proposed
rule change is outweighed by the need
to help the Exchange adequately fund
its regulatory activities to ensure
compliance with the Exchange Act.
6 Id.
7 If the Exchange changes its method of funding
regulation or if circumstances otherwise change in
the future, the Exchange may decide to modify the
ORF or assess a separate regulatory fee on Trading
Permit Holder proprietary transactions if the
Exchange deems it advisable.
PO 00000
Frm 00145
Fmt 4703
Sfmt 4703
44163
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 8 and paragraph (f) of Rule
19b–4 9 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.
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
CBOE–2015–064 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CBOE–2015–064. 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 (https://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
8 15
9 17
E:\FR\FM\24JYN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
24JYN1
44164
Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Notices
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–
2015–064 and should be submitted on
or before August 14, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–18131 Filed 7–23–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75488; File No. SR–Phlx–
2015–65]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend
Rules 1092 and 124, and Modify the
Phlx Pricing Schedule
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to (1) amend
Rule 1092 to assess a $500 Appeal Fee
against a member or member
organization which initiates and loses
an appeal of an Options Exchange
Official (‘‘Official’’) determination
regarding an Obvious Error or
Catastrophic Error, and to pass through
other market center charges associated
with obvious error determinations; (2)
amend Rule 124, to clarify that that the
$250 appeal fee provided for in Rule
124(d) will not apply to appeals of
Obvious Error or Catastrophic Error
determinations, and (3) to modify the
Phlx Pricing Schedule (‘‘Pricing
Schedule’’) to reflect the new $500
Appeal Fee and pass-through charges
from other market centers.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxphlx.cchwallstreet.com/, at
the principal office of the Exchange, 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.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
July 20, 2015.
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 July 15,
2015, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On May 8, 2015 the Exchange filed a
proposed rule change (the ‘‘1092
Replacement Filing’’) to delete Rule
1092, Obvious Errors and Catastrophic
Errors, and replace it with new Rule
1092 entitled ‘‘Nullification and
Adjustment of Options Transactions
including Obvious Errors’’ (‘‘New Rule
1092’’). New Rule 1092 also became
operative on May 8, 2015.3
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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19:59 Jul 23, 2015
Jkt 235001
3 See SR–Phlx–2015–43. New Rule 1092
harmonizes rules related to the adjustment and
nullification of erroneous options transactions with
those of other exchanges. The Exchange believes
that New Rule 1092, together with comparable rules
filed by the other options exchanges, will provide
PO 00000
Frm 00146
Fmt 4703
Sfmt 4703
The purpose of this proposed rule
change is to adopt a $500 Appeal Fee
that will apply in the event of
unsuccessful appeals of Official
determinations rendered pursuant to
Section (l) of New Rule 1092 and to
permit the Exchange to pass along
charges assessed by another market
center in connection with Obvious Error
and Catastrophic Error determination
requests presented to that market center
by the Exchange on a member or
member organization’s behalf. To
accommodate this proposed fee change,
the Exchange proposes to amend Rule
124, Disputes-Options, to add new
language to section (l) of New Rule
1092, and to make conforming changes
to the Exchange’s Pricing Schedule, as
described below.
(I) $500 Appeal Fee/Pass Through
Charges. The Exchange proposes to
amend section (l) of the New Rule 1092,
pursuant to which the Exchange will
assess a $500 fee against members or
member organizations who initiate a
request for an appeal of an Official’s
Obvious Error or Catastrophic Error
determination to the Exchange’s Market
Operations Review Committee
(‘MORC’’), where the appeal is
unsuccessful and the MORC votes to
uphold the Official’s determination.
Further, the new rule permits the
Exchange to pass any resulting charges
through to the relevant member or
member organization in instances where
the Exchange, on behalf of the member
or member organization, requests a
determination by another market center
that a transaction is an Obvious Error or
Catastrophic Error.
(II) Amendment to Rule 124.
Currently, Rule 124(d) provides for
assessment of a $250 fee to a member or
member organization seeking review by
the MORC of an Official ruling
regarding Obvious Errors or
Catastrophic Errors if the Official’s
ruling is sustained and not overturned
or modified by the MORC.4 The
Exchange proposes to amend Rule
124(a) to clarify that no provision of
transparency and finality with respect to the
adjustment and nullification of erroneous options
transactions, achieving consistent results for
participants across U.S. options exchanges while
maintaining a fair and orderly market, protecting
investors and protecting the public interest.
4 Exchange Rule 124(a) currently provides that
‘‘[t]his Rule 124(a) shall not apply to options
transactions that are the result of an Obvious Error
(as defined in Rule 1092).’’ However, the Exchange
currently applies Rule 124(d) to unsuccessful
appeals of Official determinations of Obvious Errors
to the MORC. The Exchange believes that fees
associated with MORC appeals of Obvious Errors or
Catastrophic Errors will be more logically set forth
in the rulebook in Rule 1092(l) which describes the
MORC appeals process for Obvious Errors and
Catastrophic Errors.
E:\FR\FM\24JYN1.SGM
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]]>Agencies
[Federal Register Volume 80, Number 142 (Friday, July 24, 2015)]
[Notices]
[Pages 44162-44164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-18131]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75491; File No. SR-CBOE-2015-064]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to the Options Regulatory Fee
July 20, 2015.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934,\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on
July 10, 2015, Chicago Board Options Exchange, Incorporated 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
Chicago Board Options Exchange, Incorporated (the ``Exchange'' or
``CBOE'') proposes to amend the Options Regulatory Fee. The text of the
proposed rule change is available on the Exchange's Web site (https://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
The Exchange proposes to decrease the Options Regulatory Fee
(``ORF'') from $.0086 to $.0064 per contract in order to help ensure
that revenue collected from the ORF, in combination with other
regulatory fees and fines, does not exceed the Exchange's total
regulatory costs. The proposed fee change would be operative on August
1, 2015.
The ORF is assessed by the Exchange to each Trading Permit Holder
for all options transactions executed or cleared by the Trading Permit
Holder that are cleared by The Options Clearing Corporation (``OCC'')
in the customer range (i.e., transactions that clear in a customer
account at OCC) regardless of the exchange on which the transaction
occurs.\3\ In other words, the Exchange imposes the ORF on all
customer-range transactions executed by a Trading Permit Holder, even
if the transactions do not take place on the Exchange. The ORF also is
charged for transactions that are not executed by a Trading Permit
Holder but are ultimately cleared by a Trading Permit Holder. In the
case where a Trading Permit Holder executes a transaction and a
different Trading Permit Holder clears the transaction, the ORF is
assessed to the Trading Permit Holder who executed the transaction. In
the case where a non-Trading Permit Holder executes a transaction and a
Trading Permit Holder clears the transaction, the ORF is assessed to
the Trading Permit Holder who clears the
[[Page 44163]]
transaction. The ORF is collected indirectly from Trading Permit
Holders through their clearing firms by OCC on behalf of the Exchange.
---------------------------------------------------------------------------
\3\ The ORF also applies to customer-range transactions executed
during Extended Trading Hours.
---------------------------------------------------------------------------
The ORF is designed to recover a material portion of the costs to
the Exchange of the supervision and regulation of Trading Permit Holder
customer options business, including performing routine surveillances,
investigations, examinations, financial monitoring, as well as policy,
rulemaking, interpretive and enforcement activities. The Exchange
believes that revenue generated from the ORF, when combined with all of
the Exchange's other regulatory fees and fines, will cover a material
portion, but not all, of the Exchange's regulatory costs. The Exchange
notes that its regulatory responsibilities with respect to Trading
Permit Holder compliance with options sales practice rules have largely
been allocated to FINRA under a 17d-2 agreement. The ORF is not
designed to cover the cost of that options sales practice regulation.
The Exchange will continue to monitor the amount of revenue
collected from the ORF to ensure that it, in combination with its other
regulatory fees and fines, does not exceed the Exchange's total
regulatory costs. The Exchange monitors its regulatory costs and
revenues at a minimum on a semi-annual basis. If the Exchange
determines regulatory revenues exceed or are insufficient to cover a
material portion of its regulatory costs, the Exchange will adjust the
ORF by submitting a fee change filing to the Commission. The Exchange
notifies Trading Permit Holders of adjustments to the ORF via
regulatory circular. The Exchange endeavors to provide Trading Permit
Holders with such notice at least 30 calendar days prior to the
effective date of the change.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\4\ Specifically, the
Exchange believes the proposed rule change is consistent with Section
6(b)(4) of the Act,\5\ 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. Additionally, the Exchange believes the proposed rule
change is consistent with the Section 6(b)(5) \6\ requirement that the
rules of an exchange not be designed to permit unfair discrimination
between customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
\6\ Id.
---------------------------------------------------------------------------
The Exchange believes the proposed fee change is reasonable because
it would help ensure that revenue collected from the ORF, in
combination with other regulatory fees and fines, does not exceed the
Exchange's total regulatory costs. Moreover, the Exchange believes the
ORF ensures fairness by assessing higher fees to those Trading Permit
Holders that require more Exchange regulatory services based on the
amount of customer options business they conduct. Regulating customer
trading activity is much more labor intensive and requires greater
expenditure of human and technical resources than regulating non-
customer trading activity, which tends to be more automated and less
labor-intensive. As a result, the costs associated with administering
the customer component of the Exchange's overall regulatory program are
materially higher than the costs associated with administering the non-
customer component (e.g., Trading Permit Holder proprietary
transactions) of its regulatory program.\7\ The Exchange believes the
proposed fee change is equitable and not unfairly discriminatory in
that it is charged to all Trading Permit Holders on all their
transactions that clear in the customer range at the OCC.
---------------------------------------------------------------------------
\7\ If the Exchange changes its method of funding regulation or
if circumstances otherwise change in the future, the Exchange may
decide to modify the ORF or assess a separate regulatory fee on
Trading Permit Holder proprietary transactions if the Exchange deems
it advisable.
---------------------------------------------------------------------------
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, because it applies to all
Trading Permit Holders. The proposed ORF is comparable to fees charged
by other options exchanges for the same or similar service. The
Exchange believes any burden on competition imposed by the proposed
rule change is outweighed by the need to help the Exchange adequately
fund its regulatory activities to ensure compliance with the Exchange
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) of the Act \8\ and paragraph (f) of Rule 19b-4 \9\
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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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-CBOE-2015-064 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2015-064. 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 (https://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
[[Page 44164]]
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-2015-064 and should be submitted on or before
August 14, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-18131 Filed 7-23-15; 8:45 am]
BILLING CODE 8011-01-P
