Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to its Marketing Fee Program, 33323-33325 [E6-8881]
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Federal Register / Vol. 71, No. 110 / Thursday, June 8, 2006 / Notices
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
CBOE does not believe that the
proposed rule change will impose any
burden on competition that is not
necessary or appropriate in furtherance
of 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 either
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 proposed rule change
has become effective pursuant to
Section 19(b)(3)(A) of the Act 10 and
Rule 19b–4(f)(6) thereunder 11 because
the proposed rule change: (1) Does not
significantly affect the protection of
investors or the public interest; (2) does
not impose any significant burden on
competition; and (3) does not become
operative for 30 days from the date of
filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest pursuant to Section
19(b)(3)(A) of the Act 12 and Rule 19b–
4(f)(6) 13 thereunder.
The Exchange has requested that the
Commission waive the five-day prefiling notice requirement and the 30-day
operative delay.14 The Commission is
exercising its authority to waive the
five-day pre-filing notice requirement
and believes that the waiver of the 30day operative delay is consistent with
the protection of investors and the
public interest. Waiver of the five-day
pre-filing and 30-day operative periods
will extend the Pilot, which would
otherwise expire on June 9, 2006, and
allow the Exchange to continue in its
efforts to obtain a surveillance
agreement with the Bolsa. Accordingly,
the Commission designates the proposal
to be effective and operative upon filing
with the Commission.15
cprice-sewell on PROD1PC66 with NOTICES
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
15 For the purposes only of waiving the operative
date of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
11 17
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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 the furtherance of the
purposes of the Act.
33323
Number SR–CBOE–2006–56 and should
be submitted on or before June 29, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6–8880 Filed 6–7–06; 8:45 am]
BILLING CODE 8010–01–P
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–2006–56 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53923; File No. SR–CBOE–
2006–47]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to its Marketing
Fee Program
June 1, 2006.
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 May 11,
Paper comments:
2006, the Chicago Board Options
• Send paper comments in triplicate
Exchange, Incorporated (‘‘CBOE’’ or
to Nancy M. Morris, Secretary,
‘‘Exchange’’) filed with the Securities
Securities and Exchange Commission,
and Exchange Commission
100 F Street, NE, Washington, DC
(‘‘Commission’’) the proposed rule
20549–1090.
change as described in Items I, II, and
All submissions should refer to File
III below, which Items have been
Number SR–CBOE–2006–56. This file
prepared by the Exchange. The CBOE
number should be included on the
has designated this proposal as one
subject line if e-mail is used. To help the establishing or changing a due, fee, or
Commission process and review your
other charge imposed by the CBOE
comments more efficiently, please use
under Section 19(b)(3)(A)(ii) of the Act 3
only one method. The Commission will and Rule 19b–4(f)(2) thereunder,4 which
post all comments on the Commission’s renders the proposal effective upon
Internet Web site (https://www.sec.gov/
filing with the Commission. The
rules/sro.shtml). Copies of the
Commission is publishing this notice to
submission, all subsequent
solicit comments on the proposed rule
amendments, all written statements
change from interested persons.
with respect to the proposed rule
I. Self-Regulatory Organization’s
change that are filed with the
Statement of the Terms of Substance of
Commission, and all written
the Proposed Rule Change
communications relating to the
proposed rule change between the
The CBOE proposes to amend its Fees
Commission and any person, other than Schedule and its marketing fee
those that may be withheld from the
program.Below is the text of the
public in accordance with the
proposed rule change. Proposed new
provisions of 5 U.S.C. 552, will be
language is in italics; deleted language
available for inspection and copying in
is in [brackets].
the Commission’s Public Reference
Chicago Board Options Exchange, Inc.
Section, 100 F Street, NE., Washington,
Fees Schedule
DC 20549–1090. Copies of such filing
also will be available for inspection and [MAY 1]May 11, 2006
copying at the principal office of the
1.
No Change.
CBOE. All comments received will be
2.
Marketing Fee (6)(16) ........
$.65
posted without change; the Commission
does not edit personal identifying
16 17 CFR 200.30–3(a)(12).
information from submissions. You
1 15 U.S.C. 78s(b)(1).
should submit only information that
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
you wish to make available publicly. All
4 17 CFR 240.19b–4(f)(2).
submissions should refer to File
PO 00000
Frm 00046
Fmt 4703
Sfmt 4703
E:\FR\FM\08JNN1.SGM
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33324
3.–4.
Federal Register / Vol. 71, No. 110 / Thursday, June 8, 2006 / Notices
No Change.
FOOTNOTES:
(1)–(5) No Change.
(6) The Marketing Fee will be assessed
only on transactions of Market-Makers,
RMMs, e-DPMs, DPMs, and LMMs resulting
from orders for less than 1,000 contracts (i)
from payment accepting firms, or (ii) that
have designated a ‘‘Preferred Market-Maker’’
under CBOE Rule 8.13 at the rate of $.65 per
contract on all classes of equity options, options on HOLDRs, options on SPDRs, options on DIA, options on NDX, and options
on RUT. The fee will not apply to: MarketMaker-to-Market-Maker transactions including transactions resulting from orders from
non-member market-makers; transactions resulting from inbound P/A orders or a transaction resulting from the execution of an
order against the DPM’s account if an order
directly related to that order is represented
and executed through the Linkage Plan
using the DPM’s account; transactions resulting from accommodation liquidations (cabinet trades); and transactions resulting from
dividend strategies, merger strategies, and
short stock interest strategies as defined in
footnote 13 of this Fees Schedule. This fee
shall not apply to index options and options
on ETFs (other than options on SPDRs, options on DIA, options on NDX, and options
on RUT). A Preferred Market-Maker will
only be given access to the marketing fee
funds generated from a Preferred order if the
Preferred Market-Maker has an appointment
in the class in which the Preferred order is
received and executed. If less than 80% of
the marketing fee funds are paid out by the
DPM/LMM or Preferred Market-Maker in a
given month, then the Exchange would refund such surplus at the end of the month
on a pro rata basis based upon contributions
made by the Market-Makers, RMMs, e-DPMs,
DPMs and LMMs. However, if 80% or more
of the accumulated funds in a given month
are paid out by the DPM/LMM or Preferred
Market-Maker, there will not be a rebate for
that month and the funds will carry over
and will be included in the pool of funds to
be used by the DPM/LMM or Preferred Market-Maker the following month. At the end
of each quarter, the Exchange would then refund any surplus, if any, on a pro rata basis
based upon contributions made by the Market-Makers, RMMs, DPMs, e-DPMs and
LMMs. CBOE’s marketing fee program as described above will be in effect until June 2,
2006.
Remainder of Fees Schedule—No
change.
cprice-sewell on PROD1PC66 with NOTICES
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change, and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
CBOE has prepared summaries, set forth
in Sections A, B, and C below, of the
most significant aspects of such
statements.
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15:37 Jun 07, 2006
Jkt 208001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The CBOE states that, currently, its
marketing fee is assessed upon DPMs,
LMMs, e-DPMs, RMMs, and MarketMakers at the rate of $.65 per contract
on transactions of Market-Makers,
RMMs, e-DPMs, DPMs, and LMMs
resulting from orders for less than 1,000
contracts (i) from payment accepting
firms, or (ii) that have designated a
‘‘Preferred Market-Maker’’ under CBOE
Rule 8.13. The Exchanges notes that this
fee does not apply to: Market-Maker-toMarket-Maker transactions (which
includes all transactions between any
combination of DPMs, e-DPMs, RMMs,
LMMs, and Market-Makers, and
transactions resulting from orders from
non-member market-makers);
transactions resulting from inbound P/A
orders; transactions resulting from
accommodation liquidation (cabinet
trades); or transactions resulting from
dividend strategies, merger strategies,
and short stock interest strategies. CBOE
states that the marketing fee is assessed
on all equity option classes and options
on HOLDRs, options on SPDRs,
options on DIA, options on the Nasdaq100 (NDXTM) Index and options on the
Russell 2000 (RUT) Index.
CBOE proposes to amend its
marketing fee program to provide that
the marketing fee would not apply to a
transaction resulting from the execution
of an order against the DPM’s account
if an order directly related to that order
is represented and executed through the
Linkage Plan using the DPM’s account.
CBOE notes that previously, the
marketing fee program stated that the
fee does not apply to transactions
resulting from P/A orders, which meant
inbound P/A orders.5 As revised, the fee
would not apply to inbound P/A orders,
as well as to a transaction resulting from
the execution of an order against the
DPM’s account if an order directly
related to that order is represented and
executed through the Linkage Plan
using the DPM’s account. This is similar
to a provision in the ISE Fee Schedule
relating to its payment for order flow
program.
CBOE states that it is not amending its
marketing fee program in any other
respect.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,6 in general, and
furthers the objectives of Section 6(b)(4)
of the Act,7 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees, and
other charges among CBOE members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any inappropriate 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
No written comments were either
solicited or received.
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 8 and Rule 19b–4(f)(2) 9 thereunder,
because it establishes or changes a due,
fee, or other charge imposed by the
Exchange. Accordingly, the proposal
will take effect upon filing with the
Commission. At any time within 60
days of the filing of such 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–2006–47 on the
subject line.
6 15
5 See
Securities Exchange Act Release No. 53767
(May 8, 2006), 71 FR 27756 (May 12, 2006) (SR–
CBOE–2006–43).
PO 00000
Frm 00047
Fmt 4703
Sfmt 4703
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
8 15 U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
7 15
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Federal Register / Vol. 71, No. 110 / Thursday, June 8, 2006 / Notices
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–CBOE–2006–47. 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 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–2006–47 and should
be submitted on or before June 29, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6–8881 Filed 6–7–06; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
cprice-sewell on PROD1PC66 with NOTICES
[Release No. 34–53931; File No. SR–NASD–
2006–061]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1
Thereto To Establish Pricing for the
Nasdaq IPO/Halt Cross
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
10 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
15:37 Jun 07, 2006
Jkt 208001
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to establish the
execution fees for quotes and orders
executed in the Nasdaq IPO/Halt Cross
set forth in NASD Rule 4703. At the
time Nasdaq filed the proposed rule
change, it stated that the proposed rule
change would be implemented on May
16, 2006. Nasdaq subsequently
indicated that it intends to implement
the change on July 1, 2006.6 The text of
the proposed rule change is available on
NASD’s Web site, https://www.nasd.com,
at NASD’s Office of the Secretary, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8010–01–P
June 1, 2006.
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 12,
2006, the National Association of
Securities Dealers, Inc. (‘‘NASD’’),
through its subsidiary, The Nasdaq
Stock Market, Inc. (‘‘Nasdaq’’), 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 Nasdaq. On May
15, 2006, Nasdaq filed Amendment No.
1 to the proposed rule change.3 Nasdaq
has designated this proposal as
establishing or changing a due, fee, or
other charge imposed by a selfregulatory organization pursuant to
Section 19(b)(3)(A) of the Act,4 and Rule
19b–4(f)(2) thereunder,5 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.
In its filing with the Commission,
Nasdaq 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. Nasdaq has prepared
summaries, set forth in Sections A, B,
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 In Amendment No. 1, Nasdaq made nonsubstantive changes to the text of the proposed rule
change and made clarifying changes to the statutory
basis section.
4 15 U.S.C. 78s(b)(3)(A).
5 CFR 240.19b–4(f)(2).
6 See e-mail message from Jeffrey S. Davis,
Associate General Counsel, Nasdaq, to Katherine A.
England, Assistant Director, Division of Market
Regulation, Commission, dated May 31, 2006.
2 17
PO 00000
Frm 00048
Fmt 4703
Sfmt 4703
33325
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
Nasdaq has determined to set the
pricing for the Nasdaq IPO/Halt Cross
described in NASD Rule 4703 at
$0.0005 per share executed during the
Nasdaq IPO/Halt Cross. This fee is
consistent with the fees assessed for
executions in the Nasdaq Opening and
Closing Crosses. Nasdaq intends to
implement the fee on July 1, 2006.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with Section
15A of the Act,7 in general, and Section
15A(b)(5) 8 of the Act, in particular, in
that it provides for the equitable
allocation of reasonable dues, fees, and
other charges among members and
issuers and other persons using any
facility or system which the NASD
operates or controls. The proposed fees
for the execution of quotes and orders
in the IPO/Halt Cross is consistent with
the statute in that it is designed to result
in an execution charge approximating
the execution charge for quotes and
orders entered and executed in the
Nasdaq Market Center Opening and
Closing Crosses.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq 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
Nasdaq has neither solicited nor
received comments on 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 9 and subparagraph (f)(2) of
Rule 19b–4 thereunder 10 in that it
establishes or changes a due, fee, or
other charge imposed by Nasdaq for the
Nasdaq IPO/Halt Cross. Nasdaq intends
7 15
U.S.C. 78o–3.
U.S.C. 78o–3(b)(5).
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(2).
8 15
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]]>Agencies
[Federal Register Volume 71, Number 110 (Thursday, June 8, 2006)]
[Notices]
[Pages 33323-33325]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-8881]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53923; File No. SR-CBOE-2006-47]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to its Marketing Fee Program
June 1, 2006.
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 May 11, 2006, 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. 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 Fees Schedule and its marketing fee
program.Below is the text of the proposed rule change. Proposed new
language is in italics; deleted language is in [brackets].
Chicago Board Options Exchange, Inc.
Fees Schedule
[MAY 1]May 11, 2006
1. No Change............................
2. Marketing Fee (6)(16)................ $.65
[[Page 33324]]
3.-4. No Change............................
Footnotes:
(1)-(5) No Change.
(6) The Marketing Fee will be assessed only on transactions of Market-
Makers, RMMs, e-DPMs, DPMs, and LMMs resulting from orders for less
than 1,000 contracts (i) from payment accepting firms, or (ii) that
have designated a ``Preferred Market-Maker'' under CBOE Rule 8.13 at
the rate of $.65 per contract on all classes of equity options,
options on HOLDRs, options on SPDRs, options on DIA, options on NDX,
and options on RUT. The fee will not apply to: Market-Maker-to-Market-
Maker transactions including transactions resulting from orders from
non-member market-makers; transactions resulting from inbound P/A
orders or a transaction resulting from the execution of an order
against the DPM's account if an order directly related to that order
is represented and executed through the Linkage Plan using the DPM's
account; transactions resulting from accommodation liquidations
(cabinet trades); and transactions resulting from dividend strategies,
merger strategies, and short stock interest strategies as defined in
footnote 13 of this Fees Schedule. This fee shall not apply to index
options and options on ETFs (other than options on SPDRs, options on
DIA, options on NDX, and options on RUT). A Preferred Market-Maker
will only be given access to the marketing fee funds generated from a
Preferred order if the Preferred Market-Maker has an appointment in
the class in which the Preferred order is received and executed. If
less than 80% of the marketing fee funds are paid out by the DPM/LMM
or Preferred Market-Maker in a given month, then the Exchange would
refund such surplus at the end of the month on a pro rata basis based
upon contributions made by the Market-Makers, RMMs, e-DPMs, DPMs and
LMMs. However, if 80% or more of the accumulated funds in a given
month are paid out by the DPM/LMM or Preferred Market-Maker, there
will not be a rebate for that month and the funds will carry over and
will be included in the pool of funds to be used by the DPM/LMM or
Preferred Market-Maker the following month. At the end of each
quarter, the Exchange would then refund any surplus, if any, on a pro
rata basis based upon contributions made by the Market-Makers, RMMs,
DPMs, e-DPMs and LMMs. CBOE's marketing fee program as described above
will be in effect until June 2, 2006.
Remainder of Fees Schedule--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 Exchange included statements
concerning the purpose of and basis for the proposed rule change, and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The 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
The CBOE states that, currently, its marketing fee is assessed upon
DPMs, LMMs, e-DPMs, RMMs, and Market-Makers at the rate of $.65 per
contract on transactions of Market-Makers, RMMs, e-DPMs, DPMs, and LMMs
resulting from orders for less than 1,000 contracts (i) from payment
accepting firms, or (ii) that have designated a ``Preferred Market-
Maker'' under CBOE Rule 8.13. The Exchanges notes that this fee does
not apply to: Market-Maker-to-Market-Maker transactions (which includes
all transactions between any combination of DPMs, e-DPMs, RMMs, LMMs,
and Market-Makers, and transactions resulting from orders from non-
member market-makers); transactions resulting from inbound P/A orders;
transactions resulting from accommodation liquidation (cabinet trades);
or transactions resulting from dividend strategies, merger strategies,
and short stock interest strategies. CBOE states that the marketing fee
is assessed on all equity option classes and options on HOLDRs[supreg],
options on SPDRs[supreg], options on DIA, options on the Nasdaq-
100[supreg] (NDXTM) Index and options on the Russell
2000[supreg] (RUT) Index.
CBOE proposes to amend its marketing fee program to provide that
the marketing fee would not apply to a transaction resulting from the
execution of an order against the DPM's account if an order directly
related to that order is represented and executed through the Linkage
Plan using the DPM's account. CBOE notes that previously, the marketing
fee program stated that the fee does not apply to transactions
resulting from P/A orders, which meant inbound P/A orders.\5\ As
revised, the fee would not apply to inbound P/A orders, as well as to a
transaction resulting from the execution of an order against the DPM's
account if an order directly related to that order is represented and
executed through the Linkage Plan using the DPM's account. This is
similar to a provision in the ISE Fee Schedule relating to its payment
for order flow program.
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\5\ See Securities Exchange Act Release No. 53767 (May 8, 2006),
71 FR 27756 (May 12, 2006) (SR-CBOE-2006-43).
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CBOE states that it is not amending its marketing fee program in
any other respect.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\6\ in general, and furthers the
objectives of Section 6(b)(4) of the Act,\7\ in particular, in that it
is designed to provide for the equitable allocation of reasonable dues,
fees, and other charges among CBOE members.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any inappropriate 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
No written comments were either solicited or received.
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 \8\ and Rule 19b-
4(f)(2) \9\ thereunder, because it establishes or changes a due, fee,
or other charge imposed by the Exchange. Accordingly, the proposal will
take effect upon filing with the Commission. At any time within 60 days
of the filing of such 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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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 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-2006-47 on the subject line.
[[Page 33325]]
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2006-47. 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 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-2006-47 and should be submitted on or before June
29, 2006.
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\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6-8881 Filed 6-7-06; 8:45 am]
BILLING CODE 8010-01-P
