Self-Regulatory Organizations; Chicago Board Options Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Remote Market-Maker Transaction Fees, 58498-58499 [E5-5470]

Download as PDF 58498 Federal Register / Vol. 70, No. 193 / Thursday, October 6, 2005 / Notices 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 its members and issuers and other persons using its facilities. In particular, Amex believes that the proposed cancellation fee will allow the Exchange to more equitably recover systems capacity costs from its members. B. Self-Regulatory Organization’s Statement on Burden on Competition Amex does not believe that the proposed rule change, as amended, will impose any 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 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 The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 13 and subparagraph (f)(2) of Rule 19b-4 thereunder 14 since it establishes or changes a due, fee or other charge imposed by the Exchange. 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.15 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-Amex-2005–085 on the subject line. Paper Comments • Send paper comments in triplicate to Jonathan G. Katz, Secretary, U.S.C. 78f(b)(4). U.S.C. 78s(b)(3)(A). 14 17 CFR 240.19b-4(f)(2). 15 See supra note 4. Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–9303. All submissions should refer to File Number SR-Amex-2005–085. 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 such filing also will be available for inspection and copying at the principal office of the Amex. 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–Amex–2005–085 and should be submitted on or before October 27, 2005. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.16 Jonathan G. Katz, Secretary. [FR Doc. E5–5469 Filed 10–5–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52532; File No. SR–CBOE– 2005–75] Self-Regulatory Organizations; Chicago Board Options Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Remote Market-Maker Transaction Fees September 29, 2005. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 12 15 13 15 VerDate Aug<31>2005 19:52 Oct 05, 2005 16 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 Jkt 208001 PO 00000 Frm 00129 Fmt 4703 Sfmt 4703 notice is hereby given that on September 9, 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. On September 26, 2005, the CBOE submitted Amendment No. 1 to the proposed rule change.3 The CBOE has filed the proposed rule change 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 4 and Rule 19b–4(f)(2) thereunder,5 which renders the proposal, as amended, 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 Fees Schedule to establish a Remote MarketMaker transaction fee for index options, options on exchange-traded funds (‘‘ETFs’’) and options on Holding Company Depositary Receipts (‘‘HOLDRs’’). Below is the text of the proposed rule change. Proposed new language is italicized; proposed deletions are in [brackets]. * * * * * Chicago Board Options Exchange, Inc.; Fees Schedule September [1]9, 2005 1. Options Transaction Fees (1)(3)(4)(7)(16): Per Contract Equity Options (13): I.–IX. Unchanged. QQQQ and SPDR Options: I.–VII. Unchanged. Index Options (includes Dow Jones DIAMONDS, OEF and other ETF and HOLDRs options): I.–VIII. Unchanged. IX. Remote Market-Maker—$.26 2. Marketing Fee (6)(16): Unchanged. 3. Floor Brokerage Fee (1)(5)(16): Unchanged. 4. RAES Access Fee (Retail Automatic Execution System) (1)(4)(16): Unchanged. Footnotes: (1)–(16) Unchanged. 3 In Amendment No. 1, CBOE revised the purpose section of the proposed rule change to clarify the rationale for the distinction between the transaction fee for on-floor market-makers and remote marketmakers. 4 15 U.S.C. 78s(b)(3)(A)(ii). 5 17 CFR 240.19b–4(f)(2) E:\FR\FM\06OCN1.SGM 06OCN1 Federal Register / Vol. 70, No. 193 / Thursday, October 6, 2005 / Notices Remainder of Fee Schedule– Unchanged. * * * * * 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 the proposed rule change, as amended, and discussed any comments it received on the proposed rule change, as amended. 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 In April 2005, the Exchange established a transaction fee for RemoteMarket-Makers (‘‘RMMs’’) in equity, QQQQ and SPDR options at $.26 per contract.6 An RMM is an individual member or member organization registered with the Exchange that makes transactions as a dealer-specialist from a location other than the physical trading station for the subject option class. The Exchange proposes to amend its Fees Schedule to establish a $.26 per contract RMM transaction fee for index options, options on ETFs (all other options on ETFs traded on the Exchange besides QQQQ and SPDR options) and options on HOLDRs. The proposed fee will apply to RMM transactions in any index, ETF and HOLDRs options class that the Exchange determines to add to its Hybrid 2.0 trading platform. The Exchange believes the proposed RMM transaction fee is appropriately set higher than those of on-floor marketmakers because the Exchange will incur additional systems and other logistical costs both initially and on an ongoing basis in order to establish and maintain the infrastructure needed to enable market participation as an RMM. 2. Statutory Basis The CBOE believes that the proposed rule change, as amended, is consistent with Section 6(b) of the Securities Exchange Act of 1934 (‘‘Act’’),7 in general, and furthers the objectives of Section 6(b)(4) 8 of the Act in particular, 6 See Securities Exchange Act Release No. 51746 (May 26, 2005), 70 FR 32855 (June 6, 2005). 7 15 U.S.C. 78f(b). 8 15 U.S.C. 78f(b)(4). VerDate Aug<31>2005 19:52 Oct 05, 2005 Jkt 208001 in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among its members. B. Self-Regulatory Organization’s Statement on Burden on Competition The CBOE does not believe that the proposed rule change, as amended, 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 proposed rule change, as amended, establishes or changes a due, fee, or other charged imposed by the Exchange, it has become effective pursuant to Section 19(b)(3) of the Act 9 and Rule 19b–4(f)(2) 10 thereunder. At any time within 60 days of the filing of the proposed rule change the Commission may summarily abrogate such proposed 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 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 SR– CBOE–2005–75 on the subject line. Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–9303. All submissions should refer to SR– CBOE–2005–75. 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 Room, 100 F Street, NE., Washington, DC 20549. 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 SR–CBOE– 2005–75 and should be submitted on or before October 27, 2005. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Jonathan G. Katz, Secretary. [FR Doc. E5–5470 Filed 10–5–05; 8:45 am] BILLING CODE 8010–01–P Paper Comments • Send paper comments in triplicate to Jonathan G. Katz, Secretary, U.S.C. 78s(b)(3)(A). CFR 19b–4(f)(2). 11 The effective date of the original proposed rule change is September 9, 2005, and the effective date of Amendment No. 1 is September 26, 2005. For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposal, the Commission considers the period to commence on September 26, 2005, the date on which the Exchange submitted Amendment No. 1. 9 15 10 17 PO 00000 Frm 00130 Fmt 4703 Sfmt 4703 58499 12 17 E:\FR\FM\06OCN1.SGM CFR 200.30–3(a)(12). 06OCN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 70, Number 193 (Thursday, October 6, 2005)]
[Notices]
[Pages 58498-58499]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-5470]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52532; File No. SR-CBOE-2005-75]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change and Amendment No. 1 Thereto Relating to Remote Market-Maker 
Transaction Fees

September 29, 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 September 9, 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. On September 26, 2005, the CBOE submitted Amendment No. 1 to 
the proposed rule change.\3\ The CBOE has filed the proposed rule 
change 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 \4\ and 
Rule 19b-4(f)(2) thereunder,\5\ which renders the proposal, as amended, 
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\ In Amendment No. 1, CBOE revised the purpose section of the 
proposed rule change to clarify the rationale for the distinction 
between the transaction fee for on-floor market-makers and remote 
market-makers.
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 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 Fees Schedule to establish a Remote 
Market-Maker transaction fee for index options, options on exchange-
traded funds (``ETFs'') and options on Holding Company Depositary 
Receipts (``HOLDRs''). Below is the text of the proposed rule change. 
Proposed new language is italicized; proposed deletions are in 
[brackets].
* * * * *

Chicago Board Options Exchange, Inc.; Fees Schedule

September [1]9, 2005
    1. Options Transaction Fees (1)(3)(4)(7)(16): Per Contract
    Equity Options (13): I.-IX. Unchanged.
    QQQQ and SPDR Options: I.-VII. Unchanged.
    Index Options (includes Dow Jones DIAMONDS, OEF and other ETF and 
HOLDRs options):
    I.-VIII. Unchanged.
    IX. Remote Market-Maker--$.26
    2. Marketing Fee (6)(16): Unchanged.
    3. Floor Brokerage Fee (1)(5)(16): Unchanged.
    4. RAES Access Fee (Retail Automatic Execution System) (1)(4)(16): 
Unchanged.
    Footnotes: (1)-(16) Unchanged.

[[Page 58499]]

    Remainder of Fee Schedule-Unchanged.
* * * * *

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 the proposed rule change, as 
amended, and discussed any comments it received on the proposed rule 
change, as amended. 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
    In April 2005, the Exchange established a transaction fee for 
Remote-Market-Makers (``RMMs'') in equity, QQQQ and SPDR options at 
$.26 per contract.\6\ An RMM is an individual member or member 
organization registered with the Exchange that makes transactions as a 
dealer-specialist from a location other than the physical trading 
station for the subject option class.
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 51746 (May 26, 
2005), 70 FR 32855 (June 6, 2005).
---------------------------------------------------------------------------

    The Exchange proposes to amend its Fees Schedule to establish a 
$.26 per contract RMM transaction fee for index options, options on 
ETFs (all other options on ETFs traded on the Exchange besides QQQQ and 
SPDR options) and options on HOLDRs. The proposed fee will apply to RMM 
transactions in any index, ETF and HOLDRs options class that the 
Exchange determines to add to its Hybrid 2.0 trading platform. The 
Exchange believes the proposed RMM transaction fee is appropriately set 
higher than those of on-floor market-makers because the Exchange will 
incur additional systems and other logistical costs both initially and 
on an ongoing basis in order to establish and maintain the 
infrastructure needed to enable market participation as an RMM.
2. Statutory Basis
    The CBOE believes that the proposed rule change, as amended, is 
consistent with Section 6(b) of the Securities Exchange Act of 1934 
(``Act''),\7\ in general, and furthers the objectives of Section 
6(b)(4) \8\ of the Act in particular, in that it is designed to provide 
for the equitable allocation of reasonable dues, fees, and other 
charges among its members.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The CBOE does not believe that the proposed rule change, as 
amended, 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 proposed rule change, as amended, establishes 
or changes a due, fee, or other charged imposed by the Exchange, it has 
become effective pursuant to Section 19(b)(3) of the Act \9\ and Rule 
19b-4(f)(2) \10\ thereunder. At any time within 60 days of the filing 
of the proposed rule change the Commission may summarily abrogate such 
proposed 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\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 19b-4(f)(2).
    \11\ The effective date of the original proposed rule change is 
September 9, 2005, and the effective date of Amendment No. 1 is 
September 26, 2005. For purposes of calculating the 60-day period 
within which the Commission may summarily abrogate the proposal, the 
Commission considers the period to commence on September 26, 2005, 
the date on which the Exchange submitted Amendment No. 1.
---------------------------------------------------------------------------

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 
SR-CBOE-2005-75 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.
    All submissions should refer to SR-CBOE-2005-75. 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 Room, 100 F Street, NE., Washington, DC 
20549. 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 SR-CBOE-2005-75 and should be submitted on or before 
October 27, 2005.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
Jonathan G. Katz,
Secretary.
[FR Doc. E5-5470 Filed 10-5-05; 8:45 am]
BILLING CODE 8010-01-P

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