Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Chicago Board Options Exchange, Inc., Relating to Fees for Transactions in Options on the Standard & Poor's Depository Receipts®, 3407-3408 [E5-214]
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Federal Register / Vol. 70, No. 14 / Monday, January 24, 2005 / Notices
3407
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.
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
BILLING CODE 8010–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
No written comments were solicited
or received with respect to the proposed
rule change.
SECURITIES AND EXCHANGE
COMMISSION
1. Purpose
be submitted on or before February 14,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5–213 Filed 1–21–05; 8:45 am]
[Release No. 34–51027; File No. SR–CBOE–
2005–07]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
Chicago Board Options Exchange,
Inc., Relating to Fees for Transactions
in Options on the Standard & Poor’s
Depository Receipts
January 12, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
11, 2005, the Chicago Board Options
Exchange, Inc. (‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to amend
its Fee Schedule to establish fees for
transactions in options on the Standard
& Poor’s Depository Receipts
(‘‘SPDRs’’). The text of the proposed
rule change is available on CBOE’s Web
site (https://www.cboe.org/legal/), at
CBOE’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
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate jul<14>2003
18:04 Jan 21, 2005
Jkt 205001
The Exchange proposes to amend its
Fee Schedule to establish fees for
transactions in options on SPDRs.
The transaction fee for customer
orders in options on SPDRs will be $.15
per contract.3 All other transaction fees
for options on SPDRs will be equal to
the transaction fees currently applied to
options on the Nasdaq-100 Index
Tracking Stock (‘‘QQQ’’). Specifically,
market-maker and DPM transaction fees
will be $.24 per contract, member firm
proprietary transaction fees will be $.20
for facilitation of customer orders and
$.24 for non-facilitation orders, brokerdealer transaction fees will be $.25 per
contract, non-member market-maker
transaction fees will be $.26 per
contract, and linkage fees will be $.24
per contract.
As per the current CBOE Fee
Schedule, the floor brokerage fee for
options on SPDRs will be $.04 per
contract and $.02 per contract for
crossed orders. The RAES Access Fee
will not apply as options on SPDRs will
trade on the Exchange’s Hybrid Trading
System. The $.22 marketing fee will
apply to market-maker, DPM and e–
DPM transactions in options on SPDRs.4
The proposed rule change is intended
to establish fees for CBOE’s options on
SPDRs that are competitive with the fees
charged by other exchanges for
transactions in options on SPDRs.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with Section
6(b)(4) of the Act,5 in that it provides for
the equitable allocation of reasonable
dues, fees and other charges among its
members and other persons using its
facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
3 Under the current CBOE Fee Schedule, the
customer transaction fee for all options on
exchange-traded funds (other than QQQ and DIA
options) is $.15 per contract.
4 See File No. SR–CBOE–2005–05.
5 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00053
Fmt 4703
Sfmt 4703
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
establishes or changes a due, fee or
other charge imposed by the Exchange,
it has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act 6 and
Rule 19b–4(f)(2) 7 thereunder. At any
time within 60 days of the filing of the
proposed rule change, the Commission
may summarily abrogate 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.
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 E-mail to rulecomments@sec.gov. Please include File
No. SR–CBOE–2005–07 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
450 Fifth Street, NW., Washington, DC
20549–0609.
All submissions should refer to File
Number SR–CBOE–2005–07. 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 Commissions
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
6 15
7 17
E:\FR\FM\24JAN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 19b–4(f)(2).
24JAN1
3408
Federal Register / Vol. 70, No. 14 / Monday, January 24, 2005 / Notices
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 inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of the CBOE. 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–2005–07 and should
be submitted on or before February 14,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5–214 Filed 1–21–05; 8:45 am]
BILLING CODE 8010–01–P
granting accelerated approval of the
proposed rule change.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The CBOE proposes to amend CBOE
Rule 4.11 to increase position limits and
exercise limits for options on Standard
& Poor’s Depositary Receipts
(‘‘SPDRs’’). The text of the proposed
rule change is available on the CBOE’s
Web site (https://www.cboe.com), at the
CBOE’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 had received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item III below. The
CBOE has prepared summaries, set forth
in Sections A, B, and C below, of the
most significant aspects of such
statements.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51041; File No. SR–CBOE–
2005–06]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Inc.; Notice of Filing and Order
Granting Accelerated Approval to a
Proposed Rule Change Relating to
Position Limits and Exercise Limits for
Options on Standard and Poor’s
Depositary Receipts
January 14, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
11, 2005, the Chicago Board Options
Exchange, Inc. (‘‘CBOE’’ or ‘‘Exchange’’)
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. In addition, the Commission is
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate jul<14>2003
18:04 Jan 21, 2005
Jkt 205001
The Exchange began trading options
on SPDRs on January 10, 2005 on the
CBOE Hybrid Trading System. The
Exchange proposes to amend
Interpretation and Policy .07 to CBOE
Rule 4.11 to increase position limits and
exercise limits for options on SPDRs
from 75,000 to 300,000 contracts on the
same side of the market.
Given the expected institutional
demand for options on SPDRs, the
CBOE believes the current equity
position limit of 75,000 contracts to be
too low and a deterrent to the successful
trading of the product. Options on
SPDRs are 1/10th the size of options on
the Standard and Poor’s 500 Index
(SPX). Thus, a position limit of 75,000
contracts in SPDR options is equivalent
to a 7,500 contract position limit in SPX
options. Traders who trade SPDR
options to hedge positions in SPX
options are likely to find a position limit
of 75,000 contracts in SPDR options too
restrictive, which may adversely affect
the Exchange’s ability to provide
liquidity in this product.
Comparable products such as options
on the Nasdaq-100 Index Tracking Stock
PO 00000
Frm 00054
Fmt 4703
Sfmt 4703
(‘‘QQQ’’) and the DIAMONDS Trust
(‘‘DIA’’) are subject to a 300,000 contract
limit.3 The Exchange proposes that
options on SPDRs similarly be subject to
position limits and exercise limits of
300,000 contracts.4 The Exchange
believes that increasing position limits
and exercise limits for SPDR options
would lead to a more liquid and
competitive market environment for
SPDR options that would benefit
customers interested in this product.
Consistent with the reporting
requirement for QQQ and DIA options,
the Exchange would require that each
member or member organization that
maintains a position on the same side of
the market in excess of 10,000 contracts
in the SPDR option class, for its own
account or for the account of a customer
report certain information.5 This
information would include, but would
not be limited to, the option position,
whether such position is hedged and if
so, a description of the hedge and if
applicable, the collateral used to carry
the position. Exchange market-makers
(including Designated Primary MarketMakers) would continue to be exempt
from this reporting requirement as
market-maker information can be
accessed through the Exchange’s market
surveillance systems. In addition, the
general reporting requirement for
customer accounts that maintain a
position in excess of 200 contracts
would remain at this level for SPDR
options.6
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with and
furthers the objectives of Section 6(b)(5)
of the Act,7 in that it is designed to
promote just and equitable principles of
trade, remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system and, in general, to protect
investors and the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The CBOE does not believe that the
proposed rule change will impose any
3 See Securities Exchange Act Release No. 45309
(January 18, 2002), 67 FR 3757 (January 25, 2002)
(increase of position limits and exercise limits to
300,000 for QQQ options); and Securities Exchange
Act Release No. 47346 (February 11, 2003), 68 FR
8316 (February 20, 2003) (increase of position limits
and exercise limits to 300,000 for DIA options).
4 Pursuant to Interpretation and Policy .02 to
CBOE Rule 4.12, the exercise limit established
under Rule 4.12 for SPDR options shall be
equivalent to the position limit prescribed for SPDR
options in Interpretation and Policy .07 under Rule
4.11.
5 See CBOE Rule 4.13(b).
6 See CBOE Rule 4.13(a).
7 15 U.S.C. 78f(b)(5).
E:\FR\FM\24JAN1.SGM
24JAN1
]]>Agencies
[Federal Register Volume 70, Number 14 (Monday, January 24, 2005)]
[Notices]
[Pages 3407-3408]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-214]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51027; File No. SR-CBOE-2005-07]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Board Options
Exchange, Inc., Relating to Fees for Transactions in Options on the
Standard & Poor's Depository Receipts[reg]
January 12, 2005.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 11, 2005, the Chicago Board Options Exchange, Inc.
(``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.
---------------------------------------------------------------------------
\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 is proposing to amend its Fee Schedule to establish
fees for transactions in options on the Standard & Poor's Depository
Receipts[reg] (``SPDRs[reg]''). The text of the proposed rule change is
available on CBOE's Web site (https://www.cboe.org/legal/), at CBOE'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 amend its Fee Schedule to establish fees
for transactions in options on SPDRs.
The transaction fee for customer orders in options on SPDRs will be
$.15 per contract.\3\ All other transaction fees for options on SPDRs
will be equal to the transaction fees currently applied to options on
the Nasdaq-100 Index Tracking Stock (``QQQ''). Specifically, market-
maker and DPM transaction fees will be $.24 per contract, member firm
proprietary transaction fees will be $.20 for facilitation of customer
orders and $.24 for non-facilitation orders, broker-dealer transaction
fees will be $.25 per contract, non-member market-maker transaction
fees will be $.26 per contract, and linkage fees will be $.24 per
contract.
---------------------------------------------------------------------------
\3\ Under the current CBOE Fee Schedule, the customer
transaction fee for all options on exchange-traded funds (other than
QQQ and DIA options) is $.15 per contract.
---------------------------------------------------------------------------
As per the current CBOE Fee Schedule, the floor brokerage fee for
options on SPDRs will be $.04 per contract and $.02 per contract for
crossed orders. The RAES Access Fee will not apply as options on SPDRs
will trade on the Exchange's Hybrid Trading System. The $.22 marketing
fee will apply to market-maker, DPM and e-DPM transactions in options
on SPDRs.\4\
---------------------------------------------------------------------------
\4\ See File No. SR-CBOE-2005-05.
---------------------------------------------------------------------------
The proposed rule change is intended to establish fees for CBOE's
options on SPDRs that are competitive with the fees charged by other
exchanges for transactions in options on SPDRs.
2. Statutory Basis
The Exchange believes that the proposal is consistent with Section
6(b)(4) of the Act,\5\ in that it provides for the equitable allocation
of reasonable dues, fees and other charges among its members and other
persons using its facilities.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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
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
Because the foregoing rule change establishes or changes a due, fee
or other charge imposed by the Exchange, it has become effective
pursuant to Section 19(b)(3)(A)(ii) of the Act \6\ and Rule 19b-4(f)(2)
\7\ thereunder. At any time within 60 days of the filing of the
proposed rule change, the Commission may summarily abrogate 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.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
\7\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------
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 E-mail to rule-comments@sec.gov. Please include
File No. SR-CBOE-2005-07 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW.,
Washington, DC 20549-0609.
All submissions should refer to File Number SR-CBOE-2005-07. 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 Commissions Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent
[[Page 3408]]
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 inspection and copying in the Commission's Public
Reference Room. Copies of such filing also will be available for
inspection and copying at the principal office of the CBOE. 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-2005-07 and should be
submitted on or before February 14, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5-214 Filed 1-21-05; 8:45 am]
BILLING CODE 8010-01-P
