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]
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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 (https://
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 (https://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 https://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 https://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]
-----------------------------------------------------------------------
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).
---------------------------------------------------------------------------
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 (https://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.
---------------------------------------------------------------------------
[[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 https://
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 (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 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\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-8519 Filed 4-18-08; 8:45 am]
BILLING CODE 8010-01-P
