Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Exchange's Hybrid Electronic Quoting Fee, 70912-70914 [E7-24122]
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70912
Federal Register / Vol. 72, No. 239 / Thursday, December 13, 2007 / Notices
executive officer, who is not subject to
the Exchange’s disciplinary jurisdiction.
Comments may be submitted by any of
the following methods:
2. Statutory Basis
In modifying the BCC Appointment
Process to place the responsibility with
a non-member executive officer who is
not subject to the Exchange’s
disciplinary jurisdiction, the Exchange
believes that the proposed rule change
is consistent with Section 6(b) of the
Act 8 in general, and with Section
6(b)(5) of the Act 9 in particular, which
requires, among other things, that the
rules of the Exchange be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation among persons engaged in
facilitating securities transactions, and,
in general, to protect investors and the
public interest.
Electronic Comments
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 has neither solicited
nor received written comments on the
proposed rule change.
mstockstill on PROD1PC66 with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has designated this
proposal as concerned solely with the
administration of the Exchange under
Section 19(b)(3)(A)(iii) of the Act,10 and
Rule 19b–4(f)(3) thereunder,11 which
renders the proposal effective upon
filing with the Commission.
At any time within 60 days of the
filing of such proposed rule change the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(3)(A)(iii).
11 17 CFR 240.19b–4(f)(3).
17:10 Dec 12, 2007
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
Deputy Secretary.
[FR Doc. E7–24120 Filed 12–12–07; 8:45 am]
12 17
Jkt 214001
[Release No. 34–56927; File No. SR–CBOE–
2007–145]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the
Exchange’s Hybrid Electronic Quoting
Fee
December 7, 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 November
30, 2007, the Chicago Board Options
All submissions should refer to File
Exchange, Incorporated (‘‘CBOE’’ or
Number SR–CBOE–2007–141. This file
‘‘Exchange’’) filed with the Securities
number should be included on the
subject line if e-mail is used. To help the and Exchange Commission
(‘‘Commission’’) the proposed rule
Commission process and review your
change as described in Items I, II, and
comments more efficiently, please use
only one method. The Commission will III below, which Items have been
post all comments on the Commission’s substantially prepared by the Exchange.
CBOE has designated this proposal as
Internet Web site (https://www.sec.gov/
one establishing or changing a due, fee,
rules/sro.shtml). Copies of the
or other charge imposed by the
submission, all subsequent
Exchange under Section 19(b)(3)(A),3
amendments, all written statements
and Rule 19b–4(f)(2) thereunder,4 which
with respect to the proposed rule
renders the proposal effective upon
change that are filed with the
filing with the Commission. The
Commission, and all written
Commission is publishing this notice to
communications relating to the
solicit comments on the proposed rule
proposed rule change between the
Commission and any person, other than change from interested persons.
those that may be withheld from the
I. Self-Regulatory Organization’s
public in accordance with the
Statement of the Terms of Substance of
provisions of 5 U.S.C. 552, will be
the Proposed Rule Change
available for inspection and copying in
CBOE proposes to amend its Hybrid
the Commission’s Public Reference
Electronic Quoting Fee. The text of the
Room, 100 F Street, NE., Washington,
proposed rule change is available at the
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. Exchange, the Commission’s Public
Reference Room, and https://
Copies of such filing also will be
www.cboe.org/legal.
available for inspection and copying at
the principal office of CBOE. All
II. Self-Regulatory Organization’s
comments received will be posted
Statement of the Purpose of, and
without change; the Commission does
Statutory Basis for, the Proposed Rule
not edit personal identifying
Change
information from submissions. You
should submit only information that
In its filing with the Commission,
you wish to make available publicly. All CBOE included statements concerning
submissions should refer to File
the purpose of, and basis for, the
Number SR–CBOE–2007–141 and
proposed rule change and discussed any
should be submitted on or before
comments it received on the proposal.
January 3, 2008.
The text of these statements may be
examined at the places specified in Item
For the Commission, by the Division of
IV below. CBOE has prepared
Trading and Markets, pursuant to delegated
summaries, set forth in Sections A, B,
authority.12
and C below, of the most significant
Florence E. Harmon,
aspects of such statements.
BILLING CODE 8011–01–P
9 15
VerDate Aug<31>2005
• 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–2007–141 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
PO 00000
Fmt 4703
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(2).
2 17
CFR 200.30–3(a)(12).
Frm 00097
1 15
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Federal Register / Vol. 72, No. 239 / Thursday, December 13, 2007 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to amend CBOE’s Hybrid
Electronic Quoting Fee, which is
applicable to all Market-Makers, RMMs,
DPMs and e-DPMs (collectively
‘‘liquidity providers’’) in order to
promote and encourage more efficient
quoting.
Under the current fee, CBOE assesses
all liquidity providers who are
submitting electronic quotations to the
Exchange in Hybrid and Hybrid 2.0
option classes a monthly fee of $450 per
membership utilized.5 CBOE also
assesses or credits fees on liquidity
providers that vary depending on: (i) the
quality of the liquidity providers’
quotation (a quotation is a bid and an
offer); and (ii) the value of the
underlying security and CBOE’s bid in
the option series.6 The fee varies
slightly in ‘‘high premium series’’ 7 with
respect to Market-Makers and RMMs on
the one hand, and DPMs and e-DPMs on
the other hand due to the difference in
their quoting obligations.
CBOE believes that the quote
mitigation strategies it has
implemented, including the Hybrid
Electronic Quoting Fee, have been
effective in mitigating quotations. Some
liquidity providers have modified their
quoting processes in response to the
Hybrid Electronic Quoting Fee.
Accordingly, CBOE believes that it
would be appropriate to reduce slightly
certain of the fees and, thus, reduce the
total amount of revenue that CBOE
collects from the Hybrid Electronic
Quoting Fee. At the same time, CBOE
believes that it would be beneficial to
increase the amounts that are credited
for competitive quotations that improve
or match the NBBO, as an incentive to
liquidity providers to submit
competitive quotations. Specifically,
CBOE proposes to amend certain of the
fees that are imposed as part of the
Hybrid Electronic Quoting Fee as
follows:
mstockstill on PROD1PC66 with NOTICES
5 See
Securities Exchange Act Release No. 56602
(October 3, 2007), 72 FR 57620 (October 10, 2007)
(SR–CBOE–2007–116).
6 The value of the underlying security is the
closing price of the underlying security on the
preceding trading day. The bid is the closing bid in
the option series at CBOE on the preceding trading
day.
7 For purposes of this fee, ‘‘high premium series’’
are those series in which the underlying security is
less than or equal to $100 and CBOE’s bid is greater
than $10, or those series in which the underlying
security is greater than $100 and CBOE’s bid is
greater than 15% of the underlying security.
VerDate Aug<31>2005
17:10 Dec 12, 2007
Jkt 214001
• Increase the amount that a liquidity
provider will be credited if its quotation
improves the NBBO on at least one side
of the market from $.02 to $.10 per 1,000
quotes.
• Increase the amount that a liquidity
provider will be credited if its quotation
matches the NBBO on both sides of the
market from $.01 to $.03 per 1,000
quotes.
• Decrease the amount that a liquidity
provider will be assessed if its quotation
matches the NBBO on only one side of
the market from $.02 to $0.00.
• In high premium series, decrease
the amount that a Market-Maker or
RMM will be assessed if its quotation
matches the CBOE BBO (which is not
the NBBO) on at least one side of the
market from $.05 to $.04 per 1,000
quotes.
• Decrease the amount that a liquidity
provider will be assessed if its quotation
is a duplicate quote, or if it does not
satisfy any of the above conditions, from
$.05 to $.04 per 1,000 quotes.
The Exchange believes that the
Hybrid Electronic Quoting Fee, as
amended, is fair and reasonable and will
continue to promote and encourage
more competitive and efficient quoting
and help to reduce quote traffic. The fee
encourages and rewards liquidity
providers that quote competitively, and
imposes costs on liquidity providers
that do not. CBOE intends to monitor
the fee and may amend the fee in the
future.
As before, the Hybrid Electronic
Quoting Fee will be assessed by
liquidity provider acronym. In the event
a liquidity provider is utilizing more
than one membership and submits
electronic quotations for all of the
memberships under the same acronym,
the Hybrid Electronic Quoting Fee will
be assessed per membership utilized by
the liquidity provider. Because a
liquidity provider’s total credits cannot
exceed the total debits assessed
according to the schedule of credits and
debits set forth in the two tables in Item
17 of the CBOE Fees Schedule, if the
total credits were to exceed the total
debits, the Hybrid Electronic Quoting
Fee assessed to that liquidity provider
would be $450.
If a liquidity provider is assessed the
Hybrid Electronic Quoting Fee, the
liquidity provider does not pay a
member dues fee. The Exchange intends
to implement this revised Hybrid
Electronic Quoting Fee effective
Monday, December 3, 2007.
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
70913
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act,8
in general, and furthers the objectives of
Section 6(b)(4) of the Act,9 in particular,
in that it is designed to provide for the
equitable allocation of reasonable dues,
fees, and other charges among CBOE
members and other persons using its
facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will impose any
burden on competition that is not
necessary or appropriate in furtherance
of 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
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 10 and
subparagraph (f)(2) of Rule 19b–4
thereunder,11 since it establishes or
changes a due, fee or other charge
imposed by the Exchange. 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 the furtherance of the purposes of the
Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2007–145 on the
subject line.
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
10 15 U.S.C. 78s(b)(3)(A)(ii).
11 17 CFR 240.19b–4(f)(2).
9 15
E:\FR\FM\13DEN1.SGM
13DEN1
70914
Federal Register / Vol. 72, No. 239 / Thursday, December 13, 2007 / Notices
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington DC
20549–1090.
All submissions should refer to File
Number SR–CBOE–2007–145. 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, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of 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 No.
SR–CBOE–2007–145 and should be
submitted on or before January 3, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–24122 Filed 12–12–07; 8:45 am]
mstockstill on PROD1PC66 with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56919; File No. SR–ISE–
2007–114]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fee Changes
December 6, 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 December
3, 2007, the International Securities
Exchange, LLC (‘‘Exchange’’ or ‘‘ISE’’)
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
ISE. The ISE 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE is proposing to amend its
Schedule of Fees to establish fees for
transactions in options on 1 Premium
Product.5 The text of the proposed rule
change is available on the ISE’s Web site
(https://www.ise.com), at the principal
office of the ISE, 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
ISE 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 ISE has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
5 ‘‘Premium Products’’ is defined in the Schedule
of Fees as the products enumerated therein.
2 17
12 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
17:10 Dec 12, 2007
Jkt 214001
PO 00000
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Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing to amend
its Schedule of Fees to establish fees for
transactions in options on the
PowerShares Golden Dragon Halter USX
China Portfolio (‘‘PGJ’’).6 The Exchange
represents that PGJ 7 is eligible for
options trading because it constitutes
‘‘Fund Shares,’’ as defined by ISE Rule
502(h).
All of the applicable fees covered by
this filing are identical to fees charged
by the Exchange for all other Premium
Products. Specifically, the Exchange is
proposing to adopt an execution fee and
a comparison fee for all transactions in
options on PGJ.8 The amount of the
execution fee and comparison fee for
products covered by this filing shall be
$0.15 and $0.03 per contract,
respectively, for all Public Customer
Orders 9 and Firm Proprietary orders.
The amount of the execution fee and
comparison fee for all ISE Market Maker
transactions shall be equal to the
execution fee and comparison fee
6 PowerSharesTM and PGJTM are trademarks of
PowerShares Capital Management LLC
(‘‘PowerShares’’ or the ‘‘Adviser’’). Halter Financial
Group, Inc. (‘‘Halter Financial’’) is the index
provider for the Golden Dragon Halter USX China
Portfolio (‘‘PGJ’’). The ‘‘USX China Index’’ is a
trademark of Halter Financial and has been licensed
for use for certain purposes by the Adviser. All
other trademarks and service marks are the property
of their respective owners. PGJ is not sponsored,
endorsed, sold or promoted by Halter Financial,
and Halter Financial makes no representation
regarding the advisability of investing in PGJ. Halter
Financial and PowerShares have not licensed or
authorized ISE to (i) engage in the creation, listing,
provision of a market for trading, marketing, and
promotion of options on PGJ or (ii) to use and refer
to any of their trademarks or service marks in
connection with the listing, provision of a market
for trading, marketing, and promotion of options on
PGJ or with making disclosures concerning options
on PGJ under any applicable federal or state laws,
rules or regulations. Halter Financial and
PowerShares do not sponsor, endorse, or promote
such activity by ISE, and are not affiliated in any
manner with ISE.
7 The Exchange inadvertently included a
reference to ILF options and requested that the
Commission correct this error. Telephone
conversation between Samir Patel, Assistant
General Counsel, CBOE, and Sonia Trocchio,
Special Counsel, Division of Trading and Markets,
Commission (December 6, 2007).
8 These fees will be charged only to Exchange
members. Under a pilot program that is set to expire
on July 31, 2008, these fees will also be charged to
Linkage Orders (as defined in ISE Rule 1900). See
Securities Exchange Act Release No. 56128 (July 24,
2007), 72 FR 42161 (August 1, 2007) (SR–ISE–2007–
55).
9 ‘‘Public Customer Order’’ is defined in Exchange
Rule 100(a)(39) as an order for the account of a
Public Customer. ‘‘Public Customer’’ is defined in
Exchange Rule 100(a)(38) as a person that is not a
broker or dealer in securities.
E:\FR\FM\13DEN1.SGM
13DEN1
]]>Agencies
[Federal Register Volume 72, Number 239 (Thursday, December 13, 2007)]
[Notices]
[Pages 70912-70914]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-24122]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56927; File No. SR-CBOE-2007-145]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to the Exchange's Hybrid Electronic Quoting Fee
December 7, 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 November 30, 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. CBOE has designated this proposal as one
establishing or changing a due, fee, or other charge imposed by the
Exchange under Section 19(b)(3)(A),\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).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to amend its Hybrid Electronic Quoting Fee. The text
of the proposed rule change is available at the Exchange, the
Commission's Public Reference Room, and https://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 proposal. The text of these
statements may be examined at the places specified in Item IV below.
CBOE has prepared summaries, set forth in Sections A, B, and C below,
of the most significant aspects of such statements.
[[Page 70913]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this proposed rule change is to amend CBOE's Hybrid
Electronic Quoting Fee, which is applicable to all Market-Makers, RMMs,
DPMs and e-DPMs (collectively ``liquidity providers'') in order to
promote and encourage more efficient quoting.
Under the current fee, CBOE assesses all liquidity providers who
are submitting electronic quotations to the Exchange in Hybrid and
Hybrid 2.0 option classes a monthly fee of $450 per membership
utilized.\5\ CBOE also assesses or credits fees on liquidity providers
that vary depending on: (i) the quality of the liquidity providers'
quotation (a quotation is a bid and an offer); and (ii) the value of
the underlying security and CBOE's bid in the option series.\6\ The fee
varies slightly in ``high premium series'' \7\ with respect to Market-
Makers and RMMs on the one hand, and DPMs and e-DPMs on the other hand
due to the difference in their quoting obligations.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 56602 (October 3,
2007), 72 FR 57620 (October 10, 2007) (SR-CBOE-2007-116).
\6\ The value of the underlying security is the closing price of
the underlying security on the preceding trading day. The bid is the
closing bid in the option series at CBOE on the preceding trading
day.
\7\ For purposes of this fee, ``high premium series'' are those
series in which the underlying security is less than or equal to
$100 and CBOE's bid is greater than $10, or those series in which
the underlying security is greater than $100 and CBOE's bid is
greater than 15% of the underlying security.
---------------------------------------------------------------------------
CBOE believes that the quote mitigation strategies it has
implemented, including the Hybrid Electronic Quoting Fee, have been
effective in mitigating quotations. Some liquidity providers have
modified their quoting processes in response to the Hybrid Electronic
Quoting Fee. Accordingly, CBOE believes that it would be appropriate to
reduce slightly certain of the fees and, thus, reduce the total amount
of revenue that CBOE collects from the Hybrid Electronic Quoting Fee.
At the same time, CBOE believes that it would be beneficial to increase
the amounts that are credited for competitive quotations that improve
or match the NBBO, as an incentive to liquidity providers to submit
competitive quotations. Specifically, CBOE proposes to amend certain of
the fees that are imposed as part of the Hybrid Electronic Quoting Fee
as follows:
Increase the amount that a liquidity provider will be
credited if its quotation improves the NBBO on at least one side of the
market from $.02 to $.10 per 1,000 quotes.
Increase the amount that a liquidity provider will be
credited if its quotation matches the NBBO on both sides of the market
from $.01 to $.03 per 1,000 quotes.
Decrease the amount that a liquidity provider will be
assessed if its quotation matches the NBBO on only one side of the
market from $.02 to $0.00.
In high premium series, decrease the amount that a Market-
Maker or RMM will be assessed if its quotation matches the CBOE BBO
(which is not the NBBO) on at least one side of the market from $.05 to
$.04 per 1,000 quotes.
Decrease the amount that a liquidity provider will be
assessed if its quotation is a duplicate quote, or if it does not
satisfy any of the above conditions, from $.05 to $.04 per 1,000
quotes.
The Exchange believes that the Hybrid Electronic Quoting Fee, as
amended, is fair and reasonable and will continue to promote and
encourage more competitive and efficient quoting and help to reduce
quote traffic. The fee encourages and rewards liquidity providers that
quote competitively, and imposes costs on liquidity providers that do
not. CBOE intends to monitor the fee and may amend the fee in the
future.
As before, the Hybrid Electronic Quoting Fee will be assessed by
liquidity provider acronym. In the event a liquidity provider is
utilizing more than one membership and submits electronic quotations
for all of the memberships under the same acronym, the Hybrid
Electronic Quoting Fee will be assessed per membership utilized by the
liquidity provider. Because a liquidity provider's total credits cannot
exceed the total debits assessed according to the schedule of credits
and debits set forth in the two tables in Item 17 of the CBOE Fees
Schedule, if the total credits were to exceed the total debits, the
Hybrid Electronic Quoting Fee assessed to that liquidity provider would
be $450.
If a liquidity provider is assessed the Hybrid Electronic Quoting
Fee, the liquidity provider does not pay a member dues fee. The
Exchange intends to implement this revised Hybrid Electronic Quoting
Fee effective Monday, December 3, 2007.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\8\ in general, and furthers the objectives of Section 6(b)(4) of
the Act,\9\ in particular, in that it is designed to provide for the
equitable allocation of reasonable dues, fees, and other charges among
CBOE members and other persons using its facilities.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of 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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \10\ and subparagraph (f)(2) of Rule 19b-4
thereunder,\11\ since it establishes or changes a due, fee or other
charge imposed by the Exchange. 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 the furtherance of the
purposes of the Act.
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\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
\11\ 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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-CBOE-2007-145 on the subject line.
[[Page 70914]]
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-2007-145. 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, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of 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 No. SR-CBOE-2007-145 and should be
submitted on or before January 3, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-24122 Filed 12-12-07; 8:45 am]
BILLING CODE 8011-01-P
