Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Chicago Board Options Exchange, Inc., Amending Its Marketing Fee, 3757-3758 [E5-282]

Download as PDF Federal Register / Vol. 70, No. 16 / Wednesday, January 26, 2005 / Notices and regulations thereunder that are applicable to a national securities exchange.4 In particular, the Commission believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,5 which requires among other things, that the rules of the Exchange are designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Commission notes that the proposal does not alter the obligations of BOX Market Makers. The proposed rule change codifies BOX system functionality which should provide BOX Market Makers assistance in effectively managing their quotations. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,6 that the proposed rule change (SR–BSE–2004– 52) be, and it hereby is, approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.7 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–281 Filed 1–25–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51052; File No. SR–CBOE– 2005–05] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Chicago Board Options Exchange, Inc., Amending Its Marketing Fee January 18, 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 10, 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 CBOE. The CBOE has designated this proposal as one establishing or changing a due, fee, or other charge imposed by the CBOE under section 4 In approving this proposed rule change, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 5 15 U.S.C. 78f(b)(5). 6 15 U.S.C. 78s(b)(2). 7 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. VerDate jul<14>2003 19:33 Jan 25, 2005 Jkt 205001 19(b)(3)(A)(ii) of the Act,3 and Rule 19b–4(f)(2) thereunder,4 which renders the proposal effective upon filing with the Commission. 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 CBOE proposes to amend its marketing fee to assess a fee on options on Standard & Poor’s Depositary Receipts (‘‘SPDRs’’) involving transactions of Market-Makers (including Designated Primary MarketMakers, or DPMs, and electronic Designated Primary Market-Makers, or e-DPMs) other than Market-Maker-toMarket-Maker transactions. The fee will be imposed at the rate of $.22 per contract. Below is the text of the proposed rule change. Proposed new language is italicized; proposed deletions are in [brackets]. Chicago Board Options Exchange, Inc. Fee Schedule 1.–4. No change. * * * * 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 CBOE included statements concerning the purpose of and basis for its proposal and discussed any comments it had received regarding the proposal. The text of these statements may be examined at the places specified in Item IV below. The CBOE has prepared summaries, set forth in Sections A, B and C below, of the most significant aspects of such statements. PO 00000 3 15 4 17 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). Frm 00088 Fmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose On October 29, 2004, the CBOE amended its marketing fee program.5 The current marketing fee is assessed upon DPMs, e-DPMs, and MarketMakers at a rate of $0.22 for every contract they enter into on the Exchange, other than Market-Maker-toMarket-Maker transactions, including all transaction between any combination of DPMs, e-DPMs, and Market-Makers.6 Currently, the marketing fee is assessed in all equity option classes and options on HOLDRs.7 The Exchange proposes to amend its marketing fee to also apply to options on SPDRs (ticker symbol ‘‘SPY’’), an Exchange Traded Fund (‘‘ETF’’).8 This fee shall not apply to index options and options on ETFs (other than options on SPDRs). The Exchange states that it is not making any other changes to its marketing fee. 2. Statutory Basis Notes: (1)–(5) No change. (6) The Marketing Fee will be assessed only on transactions of Market-Makers, eDPMs and DPMs at the rate of $.22 per contract on all classes of equity options, options on HOLDRs, and options on SPDRs. [other than] The fee will not apply to MarketMaker-to-Market-Maker transactions. This fee shall not apply to index options and options on ETFs (other than options on SPDRs). [The fee shall apply to options on HOLDRs.] Should any surplus of the marketing fees at the end of each month occur, those funds would be carried forward to the following month. The Exchange would then refund such surplus at the end of the quarter, if any, on a pro rata basis based upon contributions made by the Market-Makers, e-DPMs and DPMs. (7)–(14) No change. * 3757 Sfmt 4703 The Exchange believes that the proposed rule change is consistent with section 6(b) of the Act 9 in general, and furthers the objectives of section 6(b)(4) of the Act 10 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among the CBOE’s members. 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 The CBOE neither solicited nor received written comments with respect to the proposed rule change. 5 See Securities Exchange Act Release No. 50736 (November 24, 2004), 69 FR 69966 (December 1, 2004) (SR–CBOE–2004–68) (‘‘Release No. 34– 50736’’). 6 See Release No. 34–50736 for a more detailed description of the CBOE’s marketing fee program. 7 HOLDRs are trust-issued receipts that represent an investor’s beneficial ownership of a specified group of stocks. See Interpretation .07 to CBOE Rule 5.3. 8 ETFs are shares of trusts that hold portfolios of stocks designed to closely track the price performance and yield of specific indices. 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(4). E:\FR\FM\26JAN1.SGM 26JAN1 3758 Federal Register / Vol. 70, No. 16 / Wednesday, January 26, 2005 / Notices 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 11 and subparagraph (f)(2) of Rule 19b–4 thereunder.12 Accordingly, the proposal will take effect upon filing with the Commission. 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 Number SR–CBOE–2005–05 on the subject line. available for inspection and copying in the Commission’s Public Reference Room. Copies of the 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–2005–05 and should be submitted on or before February 16, 2005. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–282 Filed 1–25–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51050; File No. SR–ISE– 2004–31] Self-Regulatory Organizations; International Securities Exchange, Inc.; Order Granting Approval of Proposed Rule Change and Amendment No. 1 Thereto Relating to System-Assisted Quotation Services January 18, 2005. On September 30, 2004, the Paper Comments International Securities Exchange, Inc. (‘‘ISE’’ or ‘‘Exchange’’) submitted to the • Send paper comments in triplicate Securities and Exchange Commission to Jonathan G. Katz, Secretary, (‘‘Commission’’), pursuant to Section Securities and Exchange Commission, 19(b)(1) of the Securities Exchange Act 450 Fifth Street, NW., Washington, DC of 1934 (‘‘Act’’) 1 and Rule 19b–4 20549–0609. thereunder,2 a proposed rule change to All submissions should refer to File codify in the ISE’s rules certain services Number SR–CBOE–2005–05. This file the ISE offers market makers to help number should be included on the subject line if e-mail is used. To help the them manage their quotations. On November 16, 2004, the ISE submitted Commission process and review your Amendment No.1 to the proposed rule comments more efficiently, please use only one method. The Commission will change. The proposed rule change, as post all comments on the Commission’s modified by Amendment No. 1, was published for comment in the Federal Internet Web site (https://www.sec.gov/ Register on December 14, 2004.3 The rules/sro.shtml). Copies of the Commission received no comments on submission, all subsequent the proposed rule change. amendments, all written statements After careful consideration, the with respect to the proposed rule Commission finds that the proposed change that are filed with the rule change is consistent with the Commission, and all written requirements of the Act and the rules communications relating to the and regulations thereunder that are proposed rule change between the Commission and any person, other than applicable to a national securities those that may be withheld from the 13 17 CFR 200.30–3(a)(12). public in accordance with the 1 15 U.S.C. 78s(b)(1). provisions of 5 U.S.C. 552, will be 2 17 CFR 240.19b–4. 3 Securities Exchange Act Release No. 50813 (December 7, 2004), 69 FR 74551 (December 14, 2004). 11 15 U.S.C. 78s(b)(3)(A)(ii). 12 17 CFR 240.19b–4(f)(2). VerDate jul<14>2003 19:33 Jan 25, 2005 Jkt 205001 PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 exchange.4 In particular, the Commission believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,5 which requires among other things, that the rules of the Exchange are designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Commission notes that the proposal does not alter the obligations of ISE market makers. The proposed rule change codifies ISE system functionality which should provide ISE market makers assistance in effectively managing their quotations. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,6 that the proposed rule change (SR–ISE–2004–31) be, and it hereby is, approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.7 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–280 Filed 1–25–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51054; File No. SR–NYSE– 2005–07] Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by the New York Stock Exchange, Inc. Relating to Proposed Changes to Exchange Rules 440F (‘‘Public Short Sale Transactions Effected on the Exchange’’) and 440G (‘‘Transactions in Stocks and Warrants for the Accounts of Members, Allied Members and Member Organizations’’) January 18, 2005. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Exchange Act’’),2 and Rule 19b–4 thereunder,3 notice is hereby given that on January 11, 2005, the New York Stock Exchange, Inc. (the ‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘SEC’’ or the ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been 4 In approving this proposed rule change, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 5 15 U.S.C. 78f(b)(5). 6 15 U.S.C. 78s(b)(2). 7 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78a et seq. 3 17 CFR 240.19b–4. E:\FR\FM\26JAN1.SGM 26JAN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 70, Number 16 (Wednesday, January 26, 2005)]
[Notices]
[Pages 3757-3758]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-282]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51052; File No. SR-CBOE-2005-05]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Board Options 
Exchange, Inc., Amending Its Marketing Fee

January 18, 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 10, 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 CBOE. 
The CBOE has designated this proposal as one establishing or changing a 
due, fee, or other charge imposed by the CBOE under section 
19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2) thereunder,\4\ 
which renders the proposal effective upon filing with the Commission. 
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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The CBOE proposes to amend its marketing fee to assess a fee on 
options on Standard & Poor's Depositary Receipts (``SPDRs[reg]'') 
involving transactions of Market-Makers (including Designated Primary 
Market-Makers, or DPMs, and electronic Designated Primary Market-
Makers, or e-DPMs) other than Market-Maker-to-Market-Maker 
transactions. The fee will be imposed at the rate of $.22 per contract. 
Below is the text of the proposed rule change. Proposed new language is 
italicized; proposed deletions are in [brackets].

Chicago Board Options Exchange, Inc.

Fee Schedule

    1.-4. No change.
Notes:
    (1)-(5) No change.
    (6) The Marketing Fee will be assessed only on transactions of 
Market-Makers, e-DPMs and DPMs at the rate of $.22 per contract on 
all classes of equity options, options on HOLDRs, and options on 
SPDRs. [other than] The fee will not apply to Market-Maker-to-
Market-Maker transactions. This fee shall not apply to index options 
and options on ETFs (other than options on SPDRs). [The fee shall 
apply to options on HOLDRs.] Should any surplus of the marketing 
fees at the end of each month occur, those funds would be carried 
forward to the following month. The Exchange would then refund such 
surplus at the end of the quarter, if any, on a pro rata basis based 
upon contributions made by the Market-Makers, e-DPMs and DPMs.
    (7)-(14) No change.
* * * * *

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 CBOE included statements 
concerning the purpose of and basis for its proposal and discussed any 
comments it had received regarding the proposal. The text of these 
statements may be examined at the places specified in Item IV below. 
The CBOE 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
    On October 29, 2004, the CBOE amended its marketing fee program.\5\ 
The current marketing fee is assessed upon DPMs, e-DPMs, and Market-
Makers at a rate of $0.22 for every contract they enter into on the 
Exchange, other than Market-Maker-to-Market-Maker transactions, 
including all transaction between any combination of DPMs, e-DPMs, and 
Market-Makers.\6\ Currently, the marketing fee is assessed in all 
equity option classes and options on HOLDRs.\7\ The Exchange proposes 
to amend its marketing fee to also apply to options on SPDRs (ticker 
symbol ``SPY''), an Exchange Traded Fund (``ETF'').\8\ This fee shall 
not apply to index options and options on ETFs (other than options on 
SPDRs). The Exchange states that it is not making any other changes to 
its marketing fee.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 50736 (November 24, 
2004), 69 FR 69966 (December 1, 2004) (SR-CBOE-2004-68) (``Release 
No. 34-50736'').
    \6\ See Release No. 34-50736 for a more detailed description of 
the CBOE's marketing fee program.
    \7\ HOLDRs are trust-issued receipts that represent an 
investor's beneficial ownership of a specified group of stocks. See 
Interpretation .07 to CBOE Rule 5.3.
    \8\ ETFs are shares of trusts that hold portfolios of stocks 
designed to closely track the price performance and yield of 
specific indices.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act \9\ in general, and furthers the 
objectives of section 6(b)(4) of the Act \10\ in particular, in that it 
is designed to provide for the equitable allocation of reasonable dues, 
fees, and other charges among the CBOE's members.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 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

    The CBOE neither solicited nor received written comments with 
respect to the proposed rule change.

[[Page 3758]]

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 \11\ and subparagraph 
(f)(2) of Rule 19b-4 thereunder.\12\ Accordingly, the proposal will 
take effect upon filing with the Commission. 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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \12\ 17 CFR 240.19b-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 Number SR-CBOE-2005-05 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-2005-05. 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 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 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 the 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-2005-05 and should be submitted on or before February 16, 2005.
    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland,
Deputy Secretary.
 [FR Doc. E5-282 Filed 1-25-05; 8:45 am]
BILLING CODE 8010-01-P

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