Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Chicago Board Options Exchange, Inc. To Amend its Marketing Fee Program To Provide for a Monthly Refund of Any Surplus, 6057-6059 [E5-432]
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Federal Register / Vol. 70, No. 23 / Friday, February 4, 2005 / Notices
to allow the nominee to use those
memberships to simultaneously trade as
an in-crowd Market-Maker and in an
RMM capacity (but not in the same
classes), provided that the RMM trading
activity of the nominee is from a
location other than the physical trading
station for any of the classes traded by
the nominee in an RMM capacity. CBOE
represents that the purpose of this
exception is to accommodate members
who choose to take advantage of his or
her remote market making privileges
while on the Exchange floor.
2. Statutory Basis
The Exchange believes that the
adoption of rules allowing for remote
market making would attract and
encourage member firms to provide
supplemental liquidity to that currently
provided on the floor by in-crowd
market participants. Accordingly, the
Exchange believes that the addition of
RMMs would provide investors with
deeper and more liquid markets. For
these reasons, the Exchange believes the
proposed rule change, as amended, is
consistent with the Act and the rules
and regulations under the Act
applicable to a national securities
exchange and, in particular, the
requirements of Section 6(b) of the
Act.27 Specifically, the Exchange
believes the proposed rule change, as
amended, is consistent with the Section
6(b)(5) 28 requirements that the rules of
an exchange be designed to promote just
and equitable principles of trade, to
prevent fraudulent and manipulative
acts and, in general, to protect investors
and the public interest.
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 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 Exchange
neither solicited nor received comments
on the proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
27 15
28 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate jul<14>2003
18:52 Feb 03, 2005
Jkt 205001
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the Exchange consents,
the Commission will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be 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, as amended, 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–2004–75 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–2004–75. 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
Section, 450 Fifth Street, NW.,
Washington, DC 20549. 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–
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
6057
2004–75 and should be submitted on or
before February 25, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.29
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–429 Filed 2–3–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51101; File No. SR-CBOE–
2005–09]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
Chicago Board Options Exchange, Inc.
To Amend its Marketing Fee Program
To Provide for a Monthly Refund of
Any Surplus
January 28, 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
14, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The CBOE proposes to amend its
marketing fee program to provide for a
monthly, rather than quarterly, refund
of any surplus. 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.
29 17
CFR 200.30–3(a)(12).
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).
1 15
E:\FR\FM\04FEN1.SGM
04FEN1
6058
Federal Register / Vol. 70, No. 23 / Friday, February 4, 2005 / Notices
NOTES:
(1)–(5) No change.
(6) The Marketing Fee will be
assessed only on transactions of MarketMakers, e-DPMs and DPMs at the rate of
$.22 per contract on all classes of equity
options, options on HOLDRs, and
options on SPDRs. 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). Should
any surplus of the marketing fees at the
end of each month occur, [those funds
would be carried forward to the
following month. T]the Exchange would
then refund such surplus at the end of
the month[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 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, options on
HOLDRs,7 and options on
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.
VerDate jul<14>2003
18:52 Feb 03, 2005
Jkt 205001
SPDRs reg;.8 Furthermore, should any
surplus of the marketing fees at the end
of each month occur, those funds are
carried forward to the following month.
The Exchange then refunds such
surplus at the end of the quarter.
The Exchange now proposes to amend
its marketing fee program to provide for
a monthly, rather than quarterly, refund
of any surplus.9 The CBOE states that,
based on its recent experience with the
current marketing fee program, it now
believes that a monthly, rather than
quarterly, refund is more efficient for
administrative purposes.10 The
Exchange states that, consistent with the
current marketing fee program, it will
continue to refund any surplus on a pro
rata basis based upon contributions
made by the Market-Makers, e-DPMs,
and DPMs.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 11 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 12 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.
8 See Securities Exchange Act Release No. 51052
(January 18, 2005), 70 FR 3757 (January 26, 2005)
(SR–CBOE–2005–05).
9 The Exchange states that the Marketing Fee
Oversight Committee will continue to conduct
quarterly reviews of the marketing fee program,
including aspects related surpluses and the
program’s effectiveness. Telephone conversation
between Andrew Spiwak, Director Legal Division
and Chief Enforcement Attorney, CBOE, and David
Liu, Attorney, Division of Market Regulation
(‘‘Division’’), Commission, on December 18, 2005.
10 Telephone conversation between Andrew
Spiwak, Director Legal Division and Chief
Enforcement Attorney, CBOE, and David Liu,
Attorney, Division, Commission, on December 18,
2005.
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
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 13 and
subparagraph (f)(2) of Rule 19b–4
thereunder.14 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–2005–09 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–2005–09. 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
13 15
14 17
E:\FR\FM\04FEN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
04FEN1
Federal Register / Vol. 70, No. 23 / Friday, February 4, 2005 / Notices
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–2005–09 and should
be submitted on or before February 25,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–432 Filed 2–3–05; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51095; File No. SR–FICC–
2005–04]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Clarify
Timing of Premium Assessment
Pursuant to Rule 3 of the Government
Securities Division for Violation of
Minimum Financial Standards
January 28, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
January 25, 2005, the Fixed Income
Clearing Corporation (‘‘FICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change described in Items
I, II, and III below, which items have
been prepared primarily by FICC. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of the proposed rule
change is to clarify that the premium to
be assessed pursuant to Rule 3 of the
Government Securities Division
(‘‘GSD’’) for violation of minimum
financial standards will begin to be
assessed on the date FICC becomes
aware of the violation.
15 17
1 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
VerDate jul<14>2003
18:52 Feb 03, 2005
Jkt 205001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
sound participant base should be
enhanced.
In its filing with the Commission,
FICC 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. FICC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.2
FICC does not believe that the
proposed rule change will have any
impact on or impose any burden on
competition.
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8010–01–P
6059
Recently, the Commission approved a
proposed rule change by FICC to amend
Rule 3 of the GSD to modify the penalty
assessment process for violations of
minimum financial standards.3
Pursuant to a provision under GSD Rule
3, which is scheduled to become
effective on January 31, 2005,4 a
violation of a minimum financial
standard by certain netting members
will result in the imposition of a
clearing fund premium which will
continue for ninety calendar days after
the later of (i) the member’s return to
compliance with applicable minimum
financial standards or (ii) FICC’s
discovery of the violation. The purpose
of this proposed rule change is to clarify
that the required clearing fund deposit
premium that will be assessed pursuant
to Rule 3 of the GSD for violation of
minimum financial standards will be
effective beginning on the day of the
violation but will begin to be assessed
on the date FICC becomes aware of the
violation.
The proposed rule change is
consistent with the requirements of
Section 17A of the Act 5 and the rules
and regulations thereunder applicable to
FICC because it assures the safeguarding
of securities and funds which are in the
custody or control of FICC by
encouraging participants to maintain
their minimum financial standards and
to submit their required financial
reports on a timely basis. As a result,
FICC’s ability to maintain a financially
Commission has modified the text of the
summaries prepared by FICC.
3 Securities Exchange Act Release No. 50659
(November 15, 2004), 69 FR 67767 (November 19,
2004) [File No. SR–FICC–2004–11].
4 This effective date was announced to the GSD’s
members in Important Notice GOV.156.04
(November 22, 2004) which is available on FICC’s
Web site at https://www.ficc.com.
5 15 U.S.C. 78q–1.
PO 00000
2 The
Frm 00097
Fmt 4703
Sfmt 4703
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received from
Members, Participants, or Others
No written comments relating to the
proposed rule change have been
solicited or received. FICC will notify
the Commission of any written
comments received by FICC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective upon filing pursuant to Section
19(b)(3)(A)(i) of the Act 6 and Rule 19b–
4(f)(1) 7 thereunder because the
proposed rule constitutes an
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule. At any
time within sixty days of the filing of
such 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–FICC–2005–04 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–FICC–2005–04. This file
6 15
7 17
E:\FR\FM\04FEN1.SGM
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
04FEN1
]]>Agencies
[Federal Register Volume 70, Number 23 (Friday, February 4, 2005)]
[Notices]
[Pages 6057-6059]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-432]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51101; File No. SR-CBOE-2005-09]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Board Options
Exchange, Inc. To Amend its Marketing Fee Program To Provide for a
Monthly Refund of Any Surplus
January 28, 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 14, 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 program to provide for
a monthly, rather than quarterly, refund of any surplus. 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.
[[Page 6058]]
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[reg], and options on
SPDRs[reg]. 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). Should any surplus of the marketing
fees at the end of each month occur, [those funds would be carried
forward to the following month. T]the Exchange would then refund such
surplus at the end of the month[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, options on HOLDRs,\7\ and options on SPDRs
\[reg]\.\8\ Furthermore, should any surplus of the marketing fees at
the end of each month occur, those funds are carried forward to the
following month. The Exchange then refunds such surplus at the end of
the quarter.
---------------------------------------------------------------------------
\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\ See Securities Exchange Act Release No. 51052 (January 18,
2005), 70 FR 3757 (January 26, 2005) (SR-CBOE-2005-05).
---------------------------------------------------------------------------
The Exchange now proposes to amend its marketing fee program to
provide for a monthly, rather than quarterly, refund of any surplus.\9\
The CBOE states that, based on its recent experience with the current
marketing fee program, it now believes that a monthly, rather than
quarterly, refund is more efficient for administrative purposes.\10\
The Exchange states that, consistent with the current marketing fee
program, it will continue to refund any surplus on a pro rata basis
based upon contributions made by the Market-Makers, e-DPMs, and DPMs.
---------------------------------------------------------------------------
\9\ The Exchange states that the Marketing Fee Oversight
Committee will continue to conduct quarterly reviews of the
marketing fee program, including aspects related surpluses and the
program's effectiveness. Telephone conversation between Andrew
Spiwak, Director Legal Division and Chief Enforcement Attorney,
CBOE, and David Liu, Attorney, Division of Market Regulation
(``Division''), Commission, on December 18, 2005.
\10\ Telephone conversation between Andrew Spiwak, Director
Legal Division and Chief Enforcement Attorney, CBOE, and David Liu,
Attorney, Division, Commission, on December 18, 2005.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \11\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \12\ 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b).
\12\ 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.
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 \13\ and subparagraph
(f)(2) of Rule 19b-4 thereunder.\14\ 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.
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\13\ 15 U.S.C. 78s(b)(3)(A)(ii).
\14\ 17 CFR 240.19b-4(f)(2).
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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 e-mail to rule-comments@sec.gov. Please include
File Number SR-CBOE-2005-09 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-2005-09. 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
[[Page 6059]]
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-2005-09 and should be
submitted on or before February 25, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
Margaret H. McFarland,
Deputy Secretary.
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\15\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E5-432 Filed 2-3-05; 8:45 am]
BILLING CODE 8010-01-P
