Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change To Assess, on a Retroactive Basis, Certain CBOE and CBSX Market Data Fees, 37554-37555 [E7-13310]

Download as PDF 37554 Federal Register / Vol. 72, No. 131 / Tuesday, July 10, 2007 / Notices comment.13 In addition, the Exchange believes that the OCC would seek to revise the ODD to incorporate CDSOs.14 Further, CBOE clarified that the Exchange is working with OCC to develop procedures to address actions including full and partial redemptions, conversions to equities, bankruptcies, conversion to new series, and other actions. According to CBOE, the OCC intends to use a major data vendor to determine the market value of the underlying corporate debt securities of CDSOs. The data vendor will view TRACE and several other price reporting services to derive a composite price for each underlying security on a daily basis. IV. Discussion and Commission’s Findings After careful review, the Commission finds that the proposed rule change, as amended, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.15 In particular, the Commission believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,16 which requires that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism for a free and open market and a national market system, and, in general, to protect investors and the public interest. The Commission believes that the listing rules proposed by CBOE for CDSOs are reasonable and consistent with the Act. The Commission notes that, for a CDSO to be listed, the underlying corporate debt security must, among other things, have substantial trading volume, initial principal amount, and outstanding float; the issuer of the corporate debt security must have at least one class of equity security registered under Section 12(b) of the Act; and such equity securities must satisfy the requirements for options trading on CBOE. These requirements are reasonably designed to facilitate investors’ access to jlentini on PROD1PC65 with NOTICES 13 Telephone conversation between Jennifer L. Klebes, Senior Attorney, CBOE and Marc McKayle, Special Counsel, Division of Market Regulation, Commission, on June 28, 2007. 14 See also Exchange Act Rule 9b–1(b)(2)(i) which requires the relevant option market to file material changes to the ODD with the Commission, if the ODD without such changes would become inaccurate, incomplete, or misleading. 15 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 15 U.S.C. 78c(f). 16 15 U.S.C. 78s(b)(5). VerDate Aug<31>2005 16:17 Jul 09, 2007 Jkt 211001 information that may be necessary to price a CDSO appropriately. The Commission believes that the proposed position limits and margin rules for CDSOs are reasonable and consistent with the Act. The proposed position limits reasonably balance the promotion of a free and open market for these securities with minimization of incentives for market manipulation and insider trading. The proposed margin rules are reasonably designed to deter a member or its customer from assuming an imprudent position in CDSOs. In support of the proposed rule change, the Exchange has made the following representations: 1. The Exchange has sufficient operational capacity to accommodate the listing and trading of CDSOs. 2. The Exchange’s surveillance procedures are adequate to properly monitor the trading of the CDSOs. 3. The Exchange will inform its members in an Information Circular of the special characteristics and risks associated with trading the CDSOs. 4. The Exchange will delist CDSO series for which there is no open interest. This approval order is conditioned on the Exchange’s adherence to these representations. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,17 that the proposed rule change (SR–CBOE–2003– 41), as modified by Amendment No. 4, be, and hereby is, approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.18 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–13275 Filed 7–9–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56000; File No. SR–CBOE– 2007–73] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change To Assess, on a Retroactive Basis, Certain CBOE and CBSX Market Data Fees July 2, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 PO 00000 17 15 18 17 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). Frm 00051 Fmt 4703 Sfmt 4703 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on June 28, 2007, 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 substantially 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 assess, retroactive to April 1, 2007, fees relating to CBOE and CBOE Stock Exchange (‘‘CBSX’’) market data that were implemented on June 1, 2007. The text of the proposed rule change is available at CBOE, the Commission’s Public Reference Room, and www.cboe.org/legal. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CBOE 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 On June 1, 2007, the Exchange implemented new fees relating to TickerXpress (‘‘TX’’), which is an Exchange service that supplies market data to Exchange market-makers trading on the Hybrid Trading System.3 Specifically, the Exchange increased the monthly fee for enhanced TX market data from $200 per month to $300 per month and adopted a fee of $100 per TX user per month for use of TX software for the use and display of market data. The Exchange proposes to assess these fees for the period April 1, 2007 through 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 55882 (June 8, 2007), 72 FR 32931 (June 14, 2007) (File No. SR–CBOE–2007–54). 2 17 E:\FR\FM\10JYN1.SGM 10JYN1 Federal Register / Vol. 72, No. 131 / Tuesday, July 10, 2007 / Notices May 31, 2007, to help compensate the Exchange for its increased costs in providing the TX data and to help offset the license fees paid by the Exchange to its third-party provider for making the TX software available to users during this time period. On June 1, 2007, the Exchange adopted a monthly fee to recoup the fees CBSX pays a third-party market data vendor and other parties to help establish facilities at CBSX through which the third-party market data vendor can provide CBSX participants with certain market data.4 The fee is equal to $19,400 divided by the number of CBSX participants receiving the market data. The Exchange proposes to assess this fee for the period April 1, 2007 through May 31, 2007, to recoup the fees CBSX paid during this time period for providing the infrastructure to make the market data available to CBSX participants. 2. Statutory Basis CBOE believes the proposed rule change is consistent with Section 6(b) of the Act 5 in general, and furthers the objectives of Section 6(b)(4) of the Act 6 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 would 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 No written comments were solicited or received with respect to the proposed rule change. jlentini on PROD1PC65 with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding, or (ii) as to which the Exchange consents, the Commission will: (A) By order approve the proposed rule change, or 4 See id. U.S.C. 78f(b). 6 15 U.S.C. 78f(b)(4). 5 15 VerDate Aug<31>2005 16:17 Jul 09, 2007 Jkt 211001 (B) Institute proceedings to determine whether the proposed rule change should be disapproved. 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: 37555 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.7 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–13310 Filed 7–9–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56005; File No. SR–ISE– 2007–49] 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–2007–73 on the subject line. Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing of Proposed Rule Change Relating to Fee Changes on a Retroactive Basis July 3, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Paper Comments notice is hereby given that on June 15, • Send paper comments in triplicate 2007, the International Securities to Nancy M. Morris, Secretary, Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’) Securities and Exchange Commission, filed with the Securities and Exchange 100 F Street, NE., Washington, DC Commission (‘‘Commission’’) the proposed rule change as described in 20549–1090. Items I, II and III below, which Items All submissions should refer to File have been substantially prepared by ISE. Number SR–CBOE–2007–73. This file The Commission is publishing this number should be included on the subject line if e-mail is used. To help the notice to solicit comments on the proposed rule change from interested Commission process and review your persons. comments more efficiently, please use only one method. The Commission will I. Self-Regulatory Organization’s post all comments on the Commission’s Statement of the Terms of Substance of the Proposed Rule Change Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the ISE is proposing to amend its submission, all subsequent Schedule of Fees to: (1) Increase the per amendments, all written statements contract surcharge from $0.10 per with respect to the proposed rule contract to $0.15 per contract for change that are filed with the options on the Russell 1000 Index Commission, and all written (‘‘RUI’’), the Russell 2000 Index communications relating to the (‘‘RUT’’), and the Mini Russell 2000 proposed rule change between the Index (‘‘RMN’’); and (2) refund Commission and any person, other than surcharge fees collected for transactions those that may be withheld from the in options on the iShares Russell 2000 public in accordance with the Index Fund (‘‘IWM’’), the iShares provisions of 5 U.S.C. 552, will be Russell 2000 Value Index Fund available for inspection and copying in (‘‘IWN’’), the iShares Russell 2000 the Commission’s Public Reference Growth Index Fund (‘‘IWO’’), the Room, 100 F Street, NE., Washington, iShares Russell 1000 Value Index Fund DC 20549, on official business days (‘‘IWD’’) and the iShares Russell 1000 between the hours of 10:00 a.m. and Index Fund (‘‘IWB’’), in both cases for 3:00 p.m. Copies of the filing also will the period commencing January 1, 2007 be available for inspection and copying and ending June 15, 2007 (the at the principal office of the Exchange. ‘‘Retroactive Period’’). The Exchange All comments received will be posted proposes the surcharge increase to without change; the Commission does become effective retroactively, as of not edit personal identifying January 1, 2007.3 The text of the information from submissions. You 7 17 CFR 200.30–3(a)(12). should submit only information that 1 15 U.S.C. 78s(b)(1). you wish to make available publicly. All 2 17 CFR 240.19b–4. submissions should refer to File 3 2007, the Exchange filed a Number SR–CBOE–2007–73 and should ruleOn June 15,immediately effective underproposed change as Section be submitted on or before July 31, 2007. Continued PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 E:\FR\FM\10JYN1.SGM 10JYN1

Agencies

[Federal Register Volume 72, Number 131 (Tuesday, July 10, 2007)]
[Notices]
[Pages 37554-37555]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-13310]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56000; File No. SR-CBOE-2007-73]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of Proposed Rule Change To Assess, on a 
Retroactive Basis, Certain CBOE and CBSX Market Data Fees

July 2, 2007.
    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 28, 2007, 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 substantially 
prepared by the Exchange. 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.
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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 assess, 
retroactive to April 1, 2007, fees relating to CBOE and CBOE Stock 
Exchange (``CBSX'') market data that were implemented on June 1, 2007. 
The text of the proposed rule change is available at CBOE, the 
Commission's Public Reference Room, and www.cboe.org/legal.

II. Self-Regulatory Organization's Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, CBOE 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
    On June 1, 2007, the Exchange implemented new fees relating to 
TickerXpress (``TX''), which is an Exchange service that supplies 
market data to Exchange market-makers trading on the Hybrid Trading 
System.\3\ Specifically, the Exchange increased the monthly fee for 
enhanced TX market data from $200 per month to $300 per month and 
adopted a fee of $100 per TX user per month for use of TX software for 
the use and display of market data. The Exchange proposes to assess 
these fees for the period April 1, 2007 through

[[Page 37555]]

May 31, 2007, to help compensate the Exchange for its increased costs 
in providing the TX data and to help offset the license fees paid by 
the Exchange to its third-party provider for making the TX software 
available to users during this time period.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 55882 (June 8, 
2007), 72 FR 32931 (June 14, 2007) (File No. SR-CBOE-2007-54).
---------------------------------------------------------------------------

    On June 1, 2007, the Exchange adopted a monthly fee to recoup the 
fees CBSX pays a third-party market data vendor and other parties to 
help establish facilities at CBSX through which the third-party market 
data vendor can provide CBSX participants with certain market data.\4\ 
The fee is equal to $19,400 divided by the number of CBSX participants 
receiving the market data. The Exchange proposes to assess this fee for 
the period April 1, 2007 through May 31, 2007, to recoup the fees CBSX 
paid during this time period for providing the infrastructure to make 
the market data available to CBSX participants.
---------------------------------------------------------------------------

    \4\ See id.
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2. Statutory Basis
    CBOE believes the proposed rule change is consistent with Section 
6(b) of the Act \5\ in general, and furthers the objectives of Section 
6(b)(4) of the Act \6\ in particular, in that it is designed to provide 
for the equitable allocation of reasonable dues, fees, and other 
charges among CBOE members.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 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 would 
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

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding, or (ii) as to 
which the Exchange consents, the Commission will:
    (A) By order approve the proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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-2007-73 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-2007-73. 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, 100 F Street, 
NE., Washington, DC 20549, on official business days between the hours 
of 10:00 a.m. and 3:00 p.m. 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 Number SR-CBOE-2007-73 and should be 
submitted on or before July 31, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-13310 Filed 7-9-07; 8:45 am]
BILLING CODE 8010-01-P