Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 2 Thereto Relating to Crediting of Certain DPM Principal Acting as Agent Order Transaction Fees, 62355-62356 [E5-6000]
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Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Notices
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[FR Doc. 05–21620 Filed 10–28–05; 8:45 am]
BILLING CODE 6325–39–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52660; File No. SR–CBOE–
2005–80]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change and Amendment No. 2
Thereto Relating to Crediting of
Certain DPM Principal Acting as Agent
Order Transaction Fees
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 October
17, 2005, the Exchange filed
Amendment No. 1 to the proposed rule
change.3 On October 20, 2005, the
Exchange filed Amendment No. 2 to the
proposed rule change.4 CBOE has
designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by a selfregulatory organization pursuant to
Section 19(b)(3)(A) of the Act,5 and Rule
19b–4(f)(2) thereunder,6 which renders
the proposal effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to amend its Fees
Schedule to enhance the credit to
Designated Primary Market-Makers
(‘‘DPMs’’) for transaction fees they incur
related to the execution of outbound
‘‘principal acting as agent’’ (‘‘P/A’’)
Orders. The text of the proposed rule
change is available on CBOE’s Web site,
https://www.cboe.com, at CBOE’s
principal office, 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,
CBOE included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposal.
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.
October 24, 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 30, 2005, the Chicago Board
Options Exchange, Incorporated
(‘‘CBOE’’ or ‘‘Exchange’’) filed with the
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Aug<31>2005
15:29 Oct 28, 2005
Jkt 208001
3 Amendment No. 1 was withdrawn by CBOE on
October 20, 2005.
4 In Amendment No. 2, the Exchange made nonsubstantive changes to the purpose of the proposed
rule change and to the proposed rule text, clarified
the apportionment of the $.20 credit, and added a
reimbursement obligation on the part of DPMs in
connection with the Linkage Fee Credit described
herein.
5 15 U.S.C. 78s(b)(3)(A).
6 17 CFR 240.19b–4(f)(2).
PO 00000
Frm 00063
Fmt 4703
Sfmt 4703
62355
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange, pursuant to Section 21
of the CBOE Fees Schedule, credits
DPMs for transaction fees they incur
related to the execution of outbound P/
A Orders, as defined in the Plan for the
Purpose of Creating and Operating an
Intermarket Option Linkage (‘‘Linkage’’).
This ‘‘Linkage Fee Credit’’ is
accomplished via a rebate and a credit:
(i) the Exchange rebates transaction fees
that DPMs incur when they trade
against a customer order that underlies
a P/A Order the DPM sent through the
Linkage; and (ii) the Exchange credits
the DPMs up to an additional 50% of
such transaction fees (‘‘50% Credit’’) to
help offset some of the fees the DPMs
incur for submitting P/A Orders through
the Linkage.7 Thus, at current rates in
equity options, a DPM receives a rebate
of the $.12 per contract CBOE
transaction fee, and up to an additional
$.06 per contract under the 50% Credit,
for a total payment of up to $.18 per
contract.
The Exchange proposes to enhance
the Linkage Fee Credit by replacing the
50% Credit with a credit of up to $.20
per contract. As under the current
program, the aggregate amount of the
$.20 per contract credit for all DPMs
will be limited to no more than the total
amount of fees that the Exchange earns
from fees generated by inbound Linkage
transaction fees. The foregoing credit is
apportioned to DPMs pro-rata based on
the number of contracts executed by
each DPM at other exchanges via P/A
Orders. A DPM will be expected to
reimburse the Exchange to the extent
that the funds received by the DPM via
the Linkage Fee Credit program exceed
the DPM’s actual costs incurred in
executing linkage-related transactions.
The Exchange also proposes to modify
Section 23 of the Fees Schedule, which
includes a cross-reference to Section 21,
to reflect the changes to Section 21.
The purpose of the enhanced Linkage
Fee Credit program is to further assist
DPMs in offsetting the additional costs
they incur in routing orders to other
exchanges in order to obtain the
National Best Bid or Offer. The
proposed Linkage Fee Credit program
will be effective October 1, 2005
through December 30, 2005.
7 See Securities Exchange Act Release Nos. 49341
(March 1, 2004), 69 FR 10492 (March 5, 2004) (SR–
CBOE–2004–08) and 49769 (May 25, 2004), 69 FR
31145 (June 2, 2004) (SR–CBOE–2004–13).
E:\FR\FM\31OCN1.SGM
31OCN1
62356
Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Notices
2. Statutory Basis
Electronic Comments
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 8 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 9 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees, and
other charges among its members.
• 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–2005–80 on the
subject line.
Paper Comments
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE believes that the proposed rule
change would impose no 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
CBOE did not solicit or receive any
written comments with respect to the
proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has been designated as a fee change
pursuant to Section 19(b)(3)(A)(ii) of the
Act 10 and Rule 19b–4(f)(2) 11
thereunder. Accordingly, the proposal is
effective 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.12
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:
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
10 15 U.S.C. 78s(b)(3)(A)(ii).
11 17 CFR 240.19b–4(f)(2).
12 The effective date of the original proposed rule
change is September 30, 2005, and the effective date
of Amendment No. 2 is October 20, 2005. For
purposes of calculating the 60-day period within
which the Commission may summarily abrogate the
proposed rule change, as amended, under Section
19(b)(3)(C) of the Act, the Commission considers
the period to commence on October 20, 2005, the
date on which the Exchange submitted Amendment
No. 2. See 15 U.S.C. 78s(b)(3)(C).
9 15
VerDate Aug<31>2005
15:29 Oct 28, 2005
Jkt 208001
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street NE.,
Washington, DC 20549–9303.
All submissions should refer to File
Number SR–CBOE–2005–80. 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 Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–CBOE–2005–80 and should
be submitted on or before November 21,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6000 Filed 10–28–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52653; File No. SR–DTC–
2005–15]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Eliminate
the Use of Contra CUSIP Numbers To
Segregate Partially-Called Positions of
Participants in Variable Rate Demand
Obligation Issues
October 21, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
October 3, 2005, The Depository Trust
Company (‘‘DTC’’) 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 DTC. 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 proposed rule change eliminates
the use of contra CUSIP numbers to
segregate partially-called positions of
participants in Variable Rate Demand
Obligation (‘‘VRDO’’) issues. These
positions will be handled in the same
manner as all other issue types, with the
partially-called positions being
segregated in the Call Account under
the issue’s regularly assigned CUSIP
number.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
DTC included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the rule
change. The text of these statements
may be examined at the places specified
in Item IV below. DTC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.2
1 15
U.S.C. 78s(b)(1).
Commission has modified the text of the
summaries prepared by DTC.
2 The
13 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00064
Fmt 4703
Sfmt 4703
E:\FR\FM\31OCN1.SGM
31OCN1
]]>Agencies
[Federal Register Volume 70, Number 209 (Monday, October 31, 2005)]
[Notices]
[Pages 62355-62356]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-6000]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52660; File No. SR-CBOE-2005-80]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change and Amendment No. 2 Thereto Relating to Crediting of
Certain DPM Principal Acting as Agent Order Transaction Fees
October 24, 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 30, 2005, the Chicago Board Options Exchange, Incorporated
(``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 October 17, 2005, the Exchange filed Amendment No. 1 to
the proposed rule change.\3\ On October 20, 2005, the Exchange filed
Amendment No. 2 to the proposed rule change.\4\ CBOE has designated
this proposal as one establishing or changing a due, fee, or other
charge imposed by a self-regulatory organization pursuant to Section
19(b)(3)(A) of the Act,\5\ and Rule 19b-4(f)(2) thereunder,\6\ which
renders the proposal effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the
proposed rule change, as amended, from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1 was withdrawn by CBOE on October 20, 2005.
\4\ In Amendment No. 2, the Exchange made non-substantive
changes to the purpose of the proposed rule change and to the
proposed rule text, clarified the apportionment of the $.20 credit,
and added a reimbursement obligation on the part of DPMs in
connection with the Linkage Fee Credit described herein.
\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to amend its Fees Schedule to enhance the credit to
Designated Primary Market-Makers (``DPMs'') for transaction fees they
incur related to the execution of outbound ``principal acting as
agent'' (``P/A'') Orders. The text of the proposed rule change is
available on CBOE's Web site, https://www.cboe.com, at CBOE's principal
office, 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, CBOE included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposal. 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange, pursuant to Section 21 of the CBOE Fees Schedule,
credits DPMs for transaction fees they incur related to the execution
of outbound P/A Orders, as defined in the Plan for the Purpose of
Creating and Operating an Intermarket Option Linkage (``Linkage'').
This ``Linkage Fee Credit'' is accomplished via a rebate and a credit:
(i) the Exchange rebates transaction fees that DPMs incur when they
trade against a customer order that underlies a P/A Order the DPM sent
through the Linkage; and (ii) the Exchange credits the DPMs up to an
additional 50% of such transaction fees (``50% Credit'') to help offset
some of the fees the DPMs incur for submitting P/A Orders through the
Linkage.\7\ Thus, at current rates in equity options, a DPM receives a
rebate of the $.12 per contract CBOE transaction fee, and up to an
additional $.06 per contract under the 50% Credit, for a total payment
of up to $.18 per contract.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release Nos. 49341 (March 1,
2004), 69 FR 10492 (March 5, 2004) (SR-CBOE-2004-08) and 49769 (May
25, 2004), 69 FR 31145 (June 2, 2004) (SR-CBOE-2004-13).
---------------------------------------------------------------------------
The Exchange proposes to enhance the Linkage Fee Credit by
replacing the 50% Credit with a credit of up to $.20 per contract. As
under the current program, the aggregate amount of the $.20 per
contract credit for all DPMs will be limited to no more than the total
amount of fees that the Exchange earns from fees generated by inbound
Linkage transaction fees. The foregoing credit is apportioned to DPMs
pro-rata based on the number of contracts executed by each DPM at other
exchanges via P/A Orders. A DPM will be expected to reimburse the
Exchange to the extent that the funds received by the DPM via the
Linkage Fee Credit program exceed the DPM's actual costs incurred in
executing linkage-related transactions.
The Exchange also proposes to modify Section 23 of the Fees
Schedule, which includes a cross-reference to Section 21, to reflect
the changes to Section 21.
The purpose of the enhanced Linkage Fee Credit program is to
further assist DPMs in offsetting the additional costs they incur in
routing orders to other exchanges in order to obtain the National Best
Bid or Offer. The proposed Linkage Fee Credit program will be effective
October 1, 2005 through December 30, 2005.
[[Page 62356]]
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \8\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \9\ in particular, in that it
is designed to provide for the equitable allocation of reasonable dues,
fees, and other charges among its members.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE believes that the proposed rule change would impose no 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
CBOE did not solicit or receive any written comments with respect
to the proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has been designated as a fee
change pursuant to Section 19(b)(3)(A)(ii) of the Act \10\ and Rule
19b-4(f)(2) \11\ thereunder. Accordingly, the proposal is effective
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.\12\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
\11\ 17 CFR 240.19b-4(f)(2).
\12\ The effective date of the original proposed rule change is
September 30, 2005, and the effective date of Amendment No. 2 is
October 20, 2005. For purposes of calculating the 60-day period
within which the Commission may summarily abrogate the proposed rule
change, as amended, under Section 19(b)(3)(C) of the Act, the
Commission considers the period to commence on October 20, 2005, the
date on which the Exchange submitted Amendment No. 2. See 15 U.S.C.
78s(b)(3)(C).
---------------------------------------------------------------------------
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-2005-80 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street NE., Washington, DC 20549-9303.
All submissions should refer to File Number SR-CBOE-2005-80. 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 Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-CBOE-2005-80 and should be submitted on or before
November 21, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jonathan G. Katz,
Secretary.
[FR Doc. E5-6000 Filed 10-28-05; 8:45 am]
BILLING CODE 8010-01-P
