Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change to Retroactively Credit Certain DPM Linkage-Related Transaction Fees, 38437-38438 [E6-10534]

Download as PDF Federal Register / Vol. 71, No. 129 / Thursday, July 6, 2006 / Notices 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–2006–57 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 No. SR–CBOE–2006–57. 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 the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR–CBOE–2006–57 and should be submitted on or before July 27, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 J. Lynn Taylor, Assistant Secretary. [FR Doc. E6–10530 Filed 7–5–06; 8:45 am] jlentini on PROD1PC65 with NOTICES BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54065; File No. SR–CBOE– 2006–54] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change to Retroactively Credit Certain DPM Linkage-Related Transaction Fees June 29, 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 31, 2006, the Chicago Board Options Exchange, Incorporated (‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons, and is granting accelerated approval to the proposed rule change. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Fees Schedule to retroactively credit Designated Primary Market-Makers (‘‘DPMs’’) for certain fees they incur in executing orders under the Intermarket Options Linkage Plan (‘‘Linkage’’). The text of the proposed rule change is available on the Exchange’s website (http://www.cboe.com), at the Exchange’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 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 Exchange has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements. 1 15 12 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 17:01 Jul 05, 2006 2 17 Jkt 208001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00082 Fmt 4703 Sfmt 4703 38437 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to amend the CBOE Fees Schedule to retroactively establish certain fee relief that was provided prospectively in a previous CBOE rule change filing, SR–CBOE–2006–44 (‘‘Previous Filing’’).3 In the Previous Filing, the Exchange amended Section 21 of the CBOE Fees Schedule to enhance the credits provided to DPMs under the DPM Linkage Fees Credit Program (‘‘Program’’). Under the enhanced Program established by the Previous Filing, the Exchange credits DPMs for certain fees they incur related to the execution of: (i) Outbound principal acting as agent (‘‘P/A’’) orders; and (ii) outbound Principal orders on behalf of orders that are for the account of a broker-dealer (‘‘P orders’’). The purpose of the Program is to offset the additional costs DPMs incur in routing orders to other exchanges in order to obtain the National Best Bid or Offer (‘‘NBBO’’). The Previous Filing established the enhanced Program as of May 18, 2006. In this filing, the Exchange proposes to extend this fee relief retroactively back to all applicable transactions occurring since May 1, 2006, a total of 13 business days. 2. Statutory Basis The Exchange states that the proposed rule change is consistent with Section 6(b) of the Act 4 in general, and furthers the objectives of Section 6(b)(4) of the Act 5 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 The Exchange states that no written comments were solicited or received 3 See Securities Exchange Act Release No. 53866 (May 25, 2006), 71 FR 31237 (June 1, 2006) (Notice of Filing and Immediate Effectiveness of File No. SR–CBOE–2006–44). 4 15 U.S.C. 78f(b). 5 15 U.S.C. 78f(b)(4). E:\FR\FM\06JYN1.SGM 06JYN1 38438 Federal Register / Vol. 71, No. 129 / Thursday, July 6, 2006 / Notices requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.6 In III. Solicitation of Comments particular, the Commission finds that Interested persons are invited to the proposed rule change is consistent submit written data, views, and with the requirements of Section 6(b)(4) arguments concerning the foregoing, of the Act,7 in that, by retroactively including whether the proposed rule crediting DPMs for certain fees they change is consistent with the Act. incur in executing Linkage orders, the Comments may be submitted by any of proposed rule change should help to the following methods: ensure the equitable allocation of Electronic Comments reasonable dues, fees, and other charges among the Exchange’s members. As • Use the Commission’s Internet noted above, the Exchange recently comment form (http://www.sec.gov/ rules/sro.shtml); or established the proposed fees on a • Send an e-mail to rulegoing-forward basis.8 comments@sec.gov. Please include File The Commission finds good cause, No. SR–CBOE–2006–54 on the subject pursuant to section 19(b)(2) of the Act,9 line. for approving the proposed rule change Paper Comments prior to the thirtieth day after publication of the notice of filing thereof • Send paper comments in triplicate in the Federal Register. The proposal to Nancy M. Morris, Secretary, would allow the Exchange to apply the Securities and Exchange Commission, Program retroactively, for 13 additional 100 F Street, NE., Washington, DC business days. The Commission did not 20549–1090. receive any comments regarding the All submissions should refer to File Previous Filing, and therefore believes Number SR-CBOE–2006–54. This file that retroactively crediting DPMs for number should be included on the subject line if e-mail is used. To help the certain fees they incur in executing Commission process and review your Linkage orders would not raise any new comments more efficiently, please use or novel regulatory issues. only one method. The Commission will V. Conclusion post all comments on the Commissions Internet Web site (http://www.sec.gov/ It is therefore ordered, pursuant to rules/sro.shtml). Copies of the Section 19(b)(2) of the Act 10 that the submission, all subsequent proposed rule change (SR–CBOE–2006– amendments, all written statements 54) is approved on an accelerated basis. with respect to the proposed rule For the Commission, by the Division of change that are filed with the Market Regulation, pursuant to delegated Commission, and all written authority.11 communications relating to the proposed rule change between the J. Lynn Taylor, Commission and any person, other than Assistant Secretary. those that may be withheld from the [FR Doc. E6–10534 Filed 7–5–06; 8:45 am] public in accordance with the BILLING CODE 8010–01–P provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File 6 In approving this proposed rule change, the Number SR–CBOE–2006–54 and should Commission notes that it has considered the be submitted by July 27, 2006. proposed rule’s impact on efficiency, competition, jlentini on PROD1PC65 with NOTICES with respect to the proposed rule change. IV. Commission Findings and Order Granting Accelerated Approval of a Proposed Rule Change After careful consideration, the Commission finds that the proposed rule change is consistent with the VerDate Aug<31>2005 17:01 Jul 05, 2006 Jkt 208001 and capital formation. See U.S.C. 78c(f). 7 15 U.S.C. 78f(b)(4). 8 See Securities Exchange Act Release No. 53866, supra at note 3. 9 15 U.S.C. 78s(b)(2). 10 Id. 11 17 CFR 200.30–3(a)(12). PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54064; File No. SR–CBOE– 2006–59] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change to Extend the Options Intermarket Linkage Fees Pilot Program June 28, 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 15, 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 Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Fees Schedule to extend until July 31, 2007 the Options Intermarket Linkage (‘‘Linkage’’) fee pilot program. The text of the proposed rule change is available at the Commission’s Public Reference Room, at the Exchange’s Office of the Secretary, and at the Exchange’s Web site (http://www.cboe.com). 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 as amended 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 Exchange has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange’s fees for Principal (‘‘P’’) and Principal Acting as Agent (‘‘P/ 1 15 2 17 E:\FR\FM\06JYN1.SGM U.S.C. 78s(b)(1). CFR 240.19b-4. 06JYN1

Agencies

[Federal Register Volume 71, Number 129 (Thursday, July 6, 2006)]
[Notices]
[Pages 38437-38438]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-10534]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54065; File No. SR-CBOE-2006-54]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Order Granting Accelerated Approval 
of Proposed Rule Change to Retroactively Credit Certain DPM Linkage-
Related Transaction Fees

June 29, 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 31, 2006, the Chicago Board Options Exchange, Incorporated 
(``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which items have been prepared by the Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons, and is granting 
accelerated approval to the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its Fees Schedule to retroactively 
credit Designated Primary Market-Makers (``DPMs'') for certain fees 
they incur in executing orders under the Intermarket Options Linkage 
Plan (``Linkage''). The text of the proposed rule change is available 
on the Exchange's website (http://www.cboe.com), at the Exchange'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

    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 Exchange has prepared summaries, set forth in 
sections A, B and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to amend the CBOE Fees 
Schedule to retroactively establish certain fee relief that was 
provided prospectively in a previous CBOE rule change filing, SR-CBOE-
2006-44 (``Previous Filing'').\3\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 53866 (May 25, 
2006), 71 FR 31237 (June 1, 2006) (Notice of Filing and Immediate 
Effectiveness of File No. SR-CBOE-2006-44).
---------------------------------------------------------------------------

    In the Previous Filing, the Exchange amended Section 21 of the CBOE 
Fees Schedule to enhance the credits provided to DPMs under the DPM 
Linkage Fees Credit Program (``Program''). Under the enhanced Program 
established by the Previous Filing, the Exchange credits DPMs for 
certain fees they incur related to the execution of: (i) Outbound 
principal acting as agent (``P/A'') orders; and (ii) outbound Principal 
orders on behalf of orders that are for the account of a broker-dealer 
(``P orders''). The purpose of the Program is to offset the additional 
costs DPMs incur in routing orders to other exchanges in order to 
obtain the National Best Bid or Offer (``NBBO'').
    The Previous Filing established the enhanced Program as of May 18, 
2006. In this filing, the Exchange proposes to extend this fee relief 
retroactively back to all applicable transactions occurring since May 
1, 2006, a total of 13 business days.
2. Statutory Basis
    The Exchange states that the proposed rule change is consistent 
with Section 6(b) of the Act \4\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act \5\ in particular, in that it 
is designed to provide for the equitable allocation of reasonable dues, 
fees, and other charges among CBOE members.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 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 states that no written comments were solicited or 
received

[[Page 38438]]

with respect to the proposed rule change.

III. 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 No. SR-CBOE-2006-54 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-2006-54. 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 Commissions 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 
Exchange. All comments received will be posted without change; the 
Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-
CBOE-2006-54 and should be submitted by July 27, 2006.

IV. Commission Findings and Order Granting Accelerated Approval of a 
Proposed Rule Change

    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange.\6 \In particular, the Commission finds that the proposed rule 
change is consistent with the requirements of Section 6(b)(4) of the 
Act,\7\ in that, by retroactively crediting DPMs for certain fees they 
incur in executing Linkage orders, the proposed rule change should help 
to ensure the equitable allocation of reasonable dues, fees, and other 
charges among the Exchange's members. As noted above, the Exchange 
recently established the proposed fees on a going-forward basis.\8 \
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    \6\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(4).
    \8\ See Securities Exchange Act Release No. 53866, supra at note 
3.
---------------------------------------------------------------------------

    The Commission finds good cause, pursuant to section 19(b)(2) of 
the Act,\9\ for approving the proposed rule change prior to the 
thirtieth day after publication of the notice of filing thereof in the 
Federal Register. The proposal would allow the Exchange to apply the 
Program retroactively, for 13 additional business days. The Commission 
did not receive any comments regarding the Previous Filing, and 
therefore believes that retroactively crediting DPMs for certain fees 
they incur in executing Linkage orders would not raise any new or novel 
regulatory issues.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act 
\10\ that the proposed rule change (SR-CBOE-2006-54) is approved on an 
accelerated basis.
---------------------------------------------------------------------------

    \10\ Id.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
 [FR Doc. E6-10534 Filed 7-5-06; 8:45 am]
BILLING CODE 8010-01-P