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]

Download as PDF 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 (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 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 Frm 00104 Fmt 4703 Sfmt 4703 E:\FR\FM\16JNN1.SGM 16JNN1 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 (http://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 (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 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 E:\FR\FM\16JNN1.SGM 16JNN1

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]


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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.
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    \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).
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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.
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    \5\ See Securities Exchange Act Release No. 53922 (June 2, 
2006), 71 FR 33017 (June 7, 2006) (SR-CBOE-2006-52).
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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 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.
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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 (http://
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 (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-2006-53 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.
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    \10\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E6-9435 Filed 6-15-06; 8:45 am]
BILLING CODE 8010-01-P