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, 34973-34974 [E6-9435]
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Federal Register / Vol. 71, No. 116 / Friday, June 16, 2006 / Notices
All submissions should refer to File
Number SR–Amex–2006–56. 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–2006–56 and should
be submitted on or before July 7, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Nancy M. Morris,
Secretary.
[FR Doc. E6–9436 Filed 6–15–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53969; File No. SR–CBOE–
2006–53]
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
wwhite on PROD1PC61 with NOTICES
June 9, 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 June 2,
2006, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Aug<31>2005
18:25 Jun 15, 2006
Jkt 208001
34973
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 MarketMaker 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
I. Self-Regulatory Organization’s
the accumulated funds in a given month
Statement of the Terms of Substance of
are paid out by the DPM/LMM or
the Proposed Rule Change
Preferred Market-Maker, there will not
The CBOE proposes to amend its
be a rebate for that month and the funds
marketing fee program. Below is the text will carry over and will be included in
of the proposed rule change. Proposed
the pool of funds to be used by the
new language is in italics; deleted
DPM/LMM or Preferred Market-Maker
language is in [brackets].
the following month. At the end of each
quarter, the Exchange would then
CHICAGO BOARD OPTIONS
refund any surplus, if any, on a pro rata
EXCHANGE, INC.
basis based upon contributions made by
FEES SCHEDULE
the Market-Makers, RMMs, DPMs, eDPMs and LMMs. CBOE’s marketing fee
[MAY 18] June 2, 2006
program as described above will be in
1. No Change .....................................
2. MARKETING FEE (6)(16) ..............
$.65 effect until June 2, [2006] 2007.
Remainder of Fees Schedule—No
3.–4. No Change ................................
change.
FOOTNOTES:
(1)–(5) No Change.
II. Self-Regulatory Organization’s
(6) The Marketing Fee will be
Statement of the Purpose of, and
assessed only on transactions of Market- Statutory Basis for, the Proposed Rule
Makers, RMMs, e-DPMs, DPMs, and
Change
LMMs resulting from orders for less
In its filing with the Commission, the
than 1,000 contracts (i) from payment
Exchange included statements
accepting firms, or (ii) that have
concerning the purpose of and basis for
designated a ‘‘Preferred Market-Maker’’
the proposed rule change, and discussed
under CBOE Rule 8.13 at the rate of $.65
any comments it received on the
per contract on all classes of equity
proposed rule change. The text of these
options, options on HOLDRs, options on
statements may be examined at the
SPDRs, options on DIA, options on
places specified in Item IV below. The
NDX, and options on RUT. The fee will
CBOE has prepared summaries, set forth
not apply to: Market-Maker-to-Marketin Sections A, B, and C below, of the
Maker transactions including
most significant aspects of such
transactions resulting from orders from
statements.
non-member market-makers;
transactions resulting from inbound P/A A. Self-Regulatory Organization’s
Statement of the Purpose of, and
orders or a transaction resulting from
Statutory Basis for, the Proposed Rule
the execution of an order against the
Change
DPM’s account if an order directly
related to that order is represented and
1. Purpose
executed through the Linkage Plan
The CBOE states that currently, its
using the DPM’s account; transactions
marketing fee is assessed upon DPMs,
resulting from accommodation
LMMs, e-DPMs, RMMs, and Marketliquidations (cabinet trades); and
Makers at the rate of $.65 per contract
transactions resulting from dividend
on transactions of Market-Makers,
strategies, merger strategies, and short
RMMs, e-DPMs, DPMs, and LMMs
stock interest strategies as defined in
resulting from orders for less than 1,000
footnote 13 of this Fees Schedule. This
fee shall not apply to index options and contracts (i) from payment accepting
firms, or (ii) that have designated a
options on ETFs (other than options on
‘‘Preferred Market-Maker’’ under CBOE
SPDRs, options on DIA, options on
Rule 8.13. The Exchange notes that this
3 15 U.S.C. 78s(b)(3)(A)(ii).
fee does not apply to: Market-Maker-to4 17 CFR 240.19b–4(f)(2).
Market-Maker transactions including
(‘‘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.
PO 00000
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Fmt 4703
Sfmt 4703
E:\FR\FM\16JNN1.SGM
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34974
Federal Register / Vol. 71, No. 116 / Friday, June 16, 2006 / Notices
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 the CBOE Fees Schedule.
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 (NDX) Index and options on the
Russell 2000 (RUT) Index. CBOE states
that its marketing fee program currently
is in effect until June 2, 2006, which is
the date that CBOE’s pilot program
establishing its Preferred Market-Maker
Program was scheduled to expire.
CBOE has extended its Preferred
Market-Maker Program until June 2,
2007.5 In connection with the extension
of the Preferred Market-Maker Program,
CBOE proposes to extend the marketing
fee program until June 2, 2007.
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 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
wwhite on PROD1PC61 with NOTICES
The Exchange neither solicited nor
received comments on the proposal.
5 See Securities Exchange Act Release No. 53922
(June 2, 2006), 71 FR 33017 (June 7, 2006) (SR–
CBOE–2006–52).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(4).
VerDate Aug<31>2005
18:25 Jun 15, 2006
Jkt 208001
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.
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–2006–53 and should
be submitted on or before July 7, 2006.
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:
BILLING CODE 8010–01–P
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–2006–53 on the
subject line.
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Establish a
Mechanism by Which It Will Collect
and Pass-Through Fees Owed by
Participants to American Depository
Receipt Agents for Certain Issues and
To Collect a Charge for This Service
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–2006–53. 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
8 15
9 17
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
Frm 00105
Fmt 4703
Sfmt 4703
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Nancy M. Morris,
Secretary.
[FR Doc. E6–9435 Filed 6–15–06; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53970; File No. SR–DTC–
2006–08]
June 12, 2006.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
April 28, 2006, The Depository Trust
Company (‘‘DTC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) and on May 2, 2006,
amended 2 the proposed rule change
described in Items I, II, and III below,
which items have been prepared
primarily by DTC. DTC filed the
proposed rule change pursuant to
section 19(b)(3)(A)(ii) of the Act 3 and
Rule 19b–4(f)(2) 4 thereunder so that the
proposal was effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the rule change from
interested parties.
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 The amendment attached the comment letter
from the Securities Operations Division of the
Securities Industry Association that DTC had
inadvertently omitted. Details of that comment
letter are set forth later in this Notice.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b.4(f)(2).
1 15
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]]>Agencies
[Federal Register Volume 71, Number 116 (Friday, June 16, 2006)]
[Notices]
[Pages 34973-34974]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-9435]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53969; File No. SR-CBOE-2006-53]
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 9, 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 June 2, 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 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 18] June 2, 2006
1. No Change.................................................... ......
2. MARKETING FEE (6)(16)........................................ $.65
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] 2007.
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 Exchange notes that this fee does not
apply to: Market-Maker-to-Market-Maker transactions including
[[Page 34974]]
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 the CBOE
Fees Schedule. 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 Nasdaq-100 (NDX) Index and options on the
Russell 2000 (RUT) Index. CBOE states that its marketing fee program
currently is in effect until June 2, 2006, which is the date that
CBOE's pilot program establishing its Preferred Market-Maker Program
was scheduled to expire.
CBOE has extended its Preferred Market-Maker Program until June 2,
2007.\5\ In connection with the extension of the Preferred Market-Maker
Program, CBOE proposes to extend the marketing fee program until June
2, 2007.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 53922 (June 2,
2006), 71 FR 33017 (June 7, 2006) (SR-CBOE-2006-52).
---------------------------------------------------------------------------
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 burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on 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 \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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-CBOE-2006-53 on the subject line.
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-2006-53. 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-2006-53 and should be submitted on or before July
7, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
Nancy M. Morris,
Secretary.
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
[FR Doc. E6-9435 Filed 6-15-06; 8:45 am]
BILLING CODE 8010-01-P
