Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes, 21394-21395 [E8-8519]

Download as PDF 21394 Federal Register / Vol. 73, No. 77 / Monday, April 21, 2008 / Notices among other things, their compliance responsibilities and highlighting the special risks and characteristics of Multiple Fund Shares and Inverse Fund Shares, as well as applicable Exchange rules. IV. Conclusion For the foregoing reasons, the Commission finds that the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to a national securities exchange, and, in particular, with Section 6(b)(5) of the Act.19 It is therefore ordered, pursuant to Section 19(b)(2) of the Act,20 that the proposed rule change (SR–Amex–2007– 131), as modified by Amendment No. 1, is approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.21 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–8518 Filed 4–18–08; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57668; File No. SR–CBOE– 2008–36] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes April 15, 2008. rwilkins on PROD1PC63 with NOTICES 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 March 28, 2008, the Chicago Board Options Exchange, Incorporated (‘‘Exchange’’ or ‘‘CBOE’’) 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 CBOE. 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 19 15 U.S.C. 78f(b)(5). U.S.C. 78s(b)(2). 21 17 CFR 200.30–3(a)(12). 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). 16:59 Apr 18, 2008 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the Hybrid 3.0 book execution fee. The text of the proposed rule change is available on the Exchange’s Web site (http:// www.cboe.org/legal), at the principal office of the Exchange, 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 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 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 On November 1, 2007, the Exchange implemented a fee of $.18 per contract applicable to orders in Hybrid 3.0 classes resting in the electronic book that are executed.5 The classes that trade on the Hybrid 3.0 platform are options on the S&P 100 Index (‘‘OEX’’), options on the S&P 500 Index (‘‘SPX’’) and options on the Morgan Stanley Retail Index (‘‘MVR’’). The fee does not apply to orders in SPX options resting in the SPX electronic book that are executed during opening rotation on the final settlement date of CBOE Volatility Index (‘‘VIX’’) options and futures. On February 1, 2008, the Exchange extended the fee to apply to orders in Hybrid 3.0 classes that are executed by the Hybrid Agency Liaison (‘‘HAL’’) system.6 The Exchange now proposes to adopt three additional exceptions to the Hybrid electronic execution fee. Specifically, the Exchange will assess $.18 per contract to all electronic executions in Hybrid 3.0 classes except: (i) Orders in SPX options in the SPX 5 See Securities Exchange Act Release No. 56937 (December 10, 2007), 72 FR 71465 (December 17, 2007) (SR–CBOE–2007–127). 6 See Securities Exchange Act Release No. 57374 (February 22, 2008), 73 FR 10845 (February 28, 2008) (SR–CBOE–2008–13). HAL is governed by CBOE Rule 6.14. 20 15 VerDate Aug<31>2005 comments on the proposed rule change from interested persons. Jkt 214001 PO 00000 Frm 00092 Fmt 4703 Sfmt 4703 electronic book that are executed during opening rotation on the final settlement date of VIX options and futures (which orders are currently exempt from the fee); (ii) executions by market-makers against orders in the complex order auction (‘‘COA’’) and Simple Auction Liaison (‘‘SAL’’) systems 7 in their appointed classes; (iii) executions by market-makers against orders in the electronic book, HAL and the complex order book (‘‘COB’’) in their appointed classes; and (iv) orders executed by a broker. The fee will be renamed ‘‘Hybrid 3.0 execution fee.’’ In pre-Hybrid 3.0 trading, marketmakers that provided liquidity by trading against orders on the Retail Automatic Execution System (‘‘RAES’’) in their appointed classes did not pay the RAES Access Fee. Likewise, the Exchange believes it is appropriate to exempt from the Hybrid 3.0 execution fee executions by market-makers against orders in COA and SAL in their appointed classes. Market-makers in pre-Hybrid 3.0 trading did not pay an execution fee (other than standard transaction fees) to trade against orders resting in the electronic book in their appointed classes. Likewise, the Exchange believes it is appropriate to exempt from the Hybrid 3.0 execution fee executions by market-makers against orders in the electronic book, HAL and COB in their appointed classes. In addition, the Exchange does not believe it would be appropriate to charge the fee to orders that are executed electronically by a broker since such orders are already subject to brokerage fees by a broker. A similar exemption existed for the RAES Access Fee.8 In addition, the Exchange is deleting Section 4 of the CBOE Fees Schedule regarding the RAES access fee, and revising accompanying footnotes accordingly, because the RAES system is no longer in use. Hybrid 3.0 execution systems benefit market participants by improving execution time, service, efficiency, and in some cases providing price improvement. The Hybrid 3.0 execution fee is designed to help the Exchange recover its costs of developing these systems and offset the cost of maintaining and enhancing these systems in the future.9 7 COA and SAL are governed by CBOE Rules 6.53C and 6.13A, respectively. 8 Orders received by and executed on the RAES were assessed the RAES Access Fee that was set forth in Section 4 of the CBOE Fees Schedule, with one exception that was set forth in footnote 9 of the Fees Schedule. 9 In pre-Hybrid 3.0 trading, orders resting in the electronic book that were executed paid an Order Book Official execution fee. E:\FR\FM\21APN1.SGM 21APN1 Federal Register / Vol. 73, No. 77 / Monday, April 21, 2008 / Notices 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,10 in general, and furthers the objectives of Section 6(b)(4),11 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 CBOE facilities. B. Self-Regulatory Organization’s Statement on Burden on Competition The proposed rule change does not 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 not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any unsolicited written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing rule change establishes or changes a due, fee, or other charge imposed by the Exchange, it has become effective pursuant to Section 19(b)(3)(A) of the Act 12 and Rule 19b–4(f)(2) 13 thereunder. 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. Comments may be submitted by any of the following methods: rwilkins on PROD1PC63 with NOTICES No. SR–CBOE–2008–36 on the subject line. SECURITIES AND EXCHANGE COMMISSION Paper Comments [Release No. 34–57664; File No. SR–NSX– 2008–09] • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NSX Rule 16.2(b) and the NSX All submissions should refer to File BLADESM Fee and Rebate Schedule To Number SR–CBOE–2008–36. This file Reflect the Availability and Pricing of number should be included on the the Zero Display Reserve Order Type subject line if e-mail is used. To help the Previously Approved by the Commission Commission process and review your comments more efficiently, please use April 15, 2008. only one method. The Commission will Pursuant to Section 19(b)(1) of the post all comments on the Commission’s Securities Exchange Act of 1934 Internet Web site (http://www.sec.gov/ (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 rules/sro.shtml). Copies of the notice is hereby given that on April 11, submission, all subsequent 2008, National Stock Exchange, Inc. amendments, all written statements (‘‘NSX’’ or ‘‘Exchange’’) filed with the with respect to the proposed rule Securities and Exchange Commission change that are filed with the (‘‘Commission’’) the proposed rule Commission, and all written change as described in Items I, II, and communications relating to the III below, which Items have been substantially prepared by NSX. NSX proposed rule change between the Commission and any person, other than filed the proposal pursuant to Section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b– those that may be withheld from the 4(f)(2) 4 thereunder, as establishing or public in accordance with the changing a due, fee, or other charges provisions of 5 U.S.C. 552, will be applicable to a member, which renders available for inspection and copying in the proposed rule change effective upon the Commission’s Public Reference filing with the Commission. The Room, 100 F Street, NE., Washington, Commission is publishing this notice to DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. solicit comments on the proposed rule change from interested persons. Copies of such filing also will be available for inspection and copying at I. Self-Regulatory Organization’s Statement of the Terms of Substance of the principal office of the CBOE. All the Proposed Rule Change comments received will be posted without change; the Commission does NSX proposes to amend NSX Rule not edit personal identifying 16.2(b)(2) and the NSX BLADESM Fee information from submissions. You and Rebate Schedule (‘‘Fee Schedule’’) should submit only information that in order to reflect the availability and you wish to make available publicly. All pricing of the Zero Display Reserve submissions should refer to File Order 5 type previously approved by the Number SR–CBOE–2008–36 and should Commission.6 The text of the proposed rule change be submitted on or before May 12, 2008. is available on the Exchange’s Web site For the Commission, by the Division of at http://www.nsx.com, at the principal Trading and Markets, pursuant to delegated office of the Exchange, and at the 14 authority. Commission’s Public Reference Room. Florence E. Harmon, Deputy Secretary. [FR Doc. E8–8519 Filed 4–18–08; 8:45 am] 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 U.S.C. 78f(b). U.S.C. 78f(b)(4). 12 15 U.S.C. 78s(b)(3)(A). 13 17 CFR 19b–4(f)(2). 14 17 Jkt 214001 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 417 CFR 240.19b–4(f)(2). 5 As specified in NSX Rule 11.11(c)(2)(A). 6 See Securities Exchange Act Release No. 57311 (February 12, 2008), 73 FR 9148 (February 19, 2008) (SR–NSX–2008–03). 2 17 11 15 16:59 Apr 18, 2008 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 1 15 10 15 VerDate Aug<31>2005 21395 PO 00000 CFR 200.30–3(a)(12). Frm 00093 Fmt 4703 Sfmt 4703 E:\FR\FM\21APN1.SGM 21APN1

Agencies

[Federal Register Volume 73, Number 77 (Monday, April 21, 2008)]
[Notices]
[Pages 21394-21395]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-8519]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57668; File No. SR-CBOE-2008-36]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Fee Changes

April 15, 2008.
    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 March 28, 2008, the Chicago Board Options Exchange, Incorporated 
(``Exchange'' or ``CBOE'') 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 CBOE. The CBOE has designated this proposal as one 
establishing or changing a due, fee, or other charge imposed by the 
CBOE under Section 19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposal effective upon filing with 
the Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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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 the Hybrid 3.0 book execution fee. 
The text of the proposed rule change is available on the Exchange's Web 
site (http://www.cboe.org/legal), at the principal office of the 
Exchange, 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 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 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
    On November 1, 2007, the Exchange implemented a fee of $.18 per 
contract applicable to orders in Hybrid 3.0 classes resting in the 
electronic book that are executed.\5\ The classes that trade on the 
Hybrid 3.0 platform are options on the S&P 100 Index (``OEX''), options 
on the S&P 500 Index (``SPX'') and options on the Morgan Stanley Retail 
Index (``MVR''). The fee does not apply to orders in SPX options 
resting in the SPX electronic book that are executed during opening 
rotation on the final settlement date of CBOE Volatility Index 
(``VIX'') options and futures. On February 1, 2008, the Exchange 
extended the fee to apply to orders in Hybrid 3.0 classes that are 
executed by the Hybrid Agency Liaison (``HAL'') system.\6\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 56937 (December 10, 
2007), 72 FR 71465 (December 17, 2007) (SR-CBOE-2007-127).
    \6\ See Securities Exchange Act Release No. 57374 (February 22, 
2008), 73 FR 10845 (February 28, 2008) (SR-CBOE-2008-13). HAL is 
governed by CBOE Rule 6.14.
---------------------------------------------------------------------------

    The Exchange now proposes to adopt three additional exceptions to 
the Hybrid electronic execution fee. Specifically, the Exchange will 
assess $.18 per contract to all electronic executions in Hybrid 3.0 
classes except: (i) Orders in SPX options in the SPX electronic book 
that are executed during opening rotation on the final settlement date 
of VIX options and futures (which orders are currently exempt from the 
fee); (ii) executions by market-makers against orders in the complex 
order auction (``COA'') and Simple Auction Liaison (``SAL'') systems 
\7\ in their appointed classes; (iii) executions by market-makers 
against orders in the electronic book, HAL and the complex order book 
(``COB'') in their appointed classes; and (iv) orders executed by a 
broker. The fee will be renamed ``Hybrid 3.0 execution fee.''
---------------------------------------------------------------------------

    \7\ COA and SAL are governed by CBOE Rules 6.53C and 6.13A, 
respectively.
---------------------------------------------------------------------------

    In pre-Hybrid 3.0 trading, market-makers that provided liquidity by 
trading against orders on the Retail Automatic Execution System 
(``RAES'') in their appointed classes did not pay the RAES Access Fee. 
Likewise, the Exchange believes it is appropriate to exempt from the 
Hybrid 3.0 execution fee executions by market-makers against orders in 
COA and SAL in their appointed classes.
    Market-makers in pre-Hybrid 3.0 trading did not pay an execution 
fee (other than standard transaction fees) to trade against orders 
resting in the electronic book in their appointed classes. Likewise, 
the Exchange believes it is appropriate to exempt from the Hybrid 3.0 
execution fee executions by market-makers against orders in the 
electronic book, HAL and COB in their appointed classes.
    In addition, the Exchange does not believe it would be appropriate 
to charge the fee to orders that are executed electronically by a 
broker since such orders are already subject to brokerage fees by a 
broker. A similar exemption existed for the RAES Access Fee.\8\ In 
addition, the Exchange is deleting Section 4 of the CBOE Fees Schedule 
regarding the RAES access fee, and revising accompanying footnotes 
accordingly, because the RAES system is no longer in use.
---------------------------------------------------------------------------

    \8\ Orders received by and executed on the RAES were assessed 
the RAES Access Fee that was set forth in Section 4 of the CBOE Fees 
Schedule, with one exception that was set forth in footnote 9 of the 
Fees Schedule.
---------------------------------------------------------------------------

    Hybrid 3.0 execution systems benefit market participants by 
improving execution time, service, efficiency, and in some cases 
providing price improvement. The Hybrid 3.0 execution fee is designed 
to help the Exchange recover its costs of developing these systems and 
offset the cost of maintaining and enhancing these systems in the 
future.\9\
---------------------------------------------------------------------------

    \9\ In pre-Hybrid 3.0 trading, orders resting in the electronic 
book that were executed paid an Order Book Official execution fee.

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[[Page 21395]]

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\10\ in general, and 
furthers the objectives of Section 6(b)(4),\11\ 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 
CBOE facilities.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does not 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 not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any unsolicited written comments from members or other interested 
parties.

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

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by the Exchange, it has become effective 
pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(2) 
\13\ thereunder. 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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-CBOE-2008-36 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-2008-36. 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 
a.m. and 3 p.m. 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-2008-36 and should be 
submitted on or before May 12, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-8519 Filed 4-18-08; 8:45 am]
BILLING CODE 8010-01-P