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]

Download as PDF 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 VerDate Aug<31>2005 15:37 Jun 07, 2006 Jkt 208001 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 (http://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 (http://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 08JNN1 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. VerDate Aug<31>2005 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 (http://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 E:\FR\FM\08JNN1.SGM 08JNN1 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 (http://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, http://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 E:\FR\FM\08JNN1.SGM 08JNN1

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]


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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.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 53767 (May 8, 2006), 
71 FR 27756 (May 12, 2006) (SR-CBOE-2006-43).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 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 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
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 (http://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