Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to an Extension of the Linkage Fee Pilot Program, 40645-40646 [E8-16060]
Download as PDF
<![CDATA[
Federal Register / Vol. 73, No. 136 / Tuesday, July 15, 2008 / Notices
reasonable and consistent with the Act
for the Exchanges to adopt new trading
halt criteria for certain derivative
products in the manner described in the
respective proposals.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,12 that the
proposed rule changes (SR–Amex–
2008–40; SR–NYSE–2008–39; SR–
NYSEArca–2008–50) and the proposed
rule change (SR–NASDAQ–2008–046),
as modified by Amendment No. 1
thereto, be, and they hereby are,
approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–16059 Filed 8–14–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58117; File No. SR–CBOE–
2008–69]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to an Extension
of the Linkage Fee Pilot Program
July 8, 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 June 30,
2008, Chicago Board Options Exchange,
Incorporated (‘‘CBOE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared substantially by
CBOE. The Commission is publishing
this notice to solicit comments on the
proposed rule change from interested
persons.
mstockstill on PROD1PC66 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to amend its Fees
Schedule to extend through July 31,
2009 the Options Intermarket Linkage
(‘‘Linkage’’) fees pilot program. The text
of the proposed rule change is available
at https://www.cboe.org/legal, the
12 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
13 17
VerDate Aug<31>2005
15:01 Jul 14, 2008
Jkt 214001
Exchange, and 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,
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
The Exchange’s fees for Principal
(‘‘P’’) and Principal Acting as Agent (‘‘P/
A’’) orders 3 are operating under a pilot
program scheduled to expire on July 31,
2008.4 The Exchange proposes to amend
its Fees Schedule to extend the pilot
program until July 31, 2009. The
Exchange is proposing no other changes
to the operation of the pilot program.
The Exchange assesses its members
the following Linkage order related fees:
(i) $.30 per contract transaction fee, and
(ii) $.10 per contract surcharge fee on
transactions in options on the Nasdaq100 Index (MNX and NDX) and options
on the Russell 2000 Index (RUT).5
Satisfaction orders are not assessed
Exchange fees.
The Exchange believes that extension
of the Linkage fee pilot program until
July 31, 2009 will give the Commission
the Plan for the Purpose of Creating and
Operating an Options Intermarket Linkage (‘‘Plan’’)
and Exchange Rule 6.80(12), which tracks the
language of the Plan, a ‘‘Linkage Order’’ means an
Immediate or Cancel Order routed through the
Linkage as permitted under the Plan. There are
three types of Linkage Orders: (i) ‘‘P/A Order’’,
which is an order for the principal account of a
specialist (or equivalent entity on another
Participant Exchange that is authorized to represent
Public Customer orders), reflecting the terms of a
related unexecuted Public Customer order for
which the specialist is acting as agent; (ii) ‘‘P
Order’’, which is an order for the principal account
of an Eligible Market Maker and is not a P/A Order;
and (iii) ‘‘Satisfaction Order,’’ which is an order
sent through the Linkage to notify a member of
another Participant Exchange of a Trade-Through
and to seek satisfaction of the liability arising from
that Trade-Through.
4 See Securities Exchange Act Release No. 56132
(July 25, 2007), 72 FR 42158 (August 1, 2007) (SR–
CBOE–2007–71).
5 See CBOE Fees Schedule, Footnote 14.
Surcharge fees are also assessed on OEX, XEO, SPX,
volatility index options, DJX and DXL options;
however, Linkage fees do not apply to these
products as they are not multiply listed.
PO 00000
3 Under
Frm 00167
Fmt 4703
Sfmt 4703
40645
further opportunity to evaluate the
appropriateness of Linkage fees.
The Exchange also proposes to amend
Section 21 of the Fees Schedule to
change the Linkage fees pilot expiration
date included in that section to July 31,
2009, thereby extending the term of the
DPM Linkage Fees Credit program for
PA orders.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) of the Act,6 in general, and furthers
the objectives of Section 6(b)(4) 7 of the
Act 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. The
Exchange believes that extension of the
Linkage fee pilot program until July 31,
2009 will give the Commission further
opportunity to evaluate the
appropriateness of Linkage fees.
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 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
Because the foregoing proposed rule
change does not:
(i) Significantly affect the protection
of investors or the public interest;
(ii) Impose any significant burden on
competition; and
(iii) Become operative for 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 8 and Rule 19b–4(f)(6) thereunder.9
At any time within 60 days of the
filing of the 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,
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6).
7 15
E:\FR\FM\15JYN1.SGM
15JYN1
40646
Federal Register / Vol. 73, No. 136 / Tuesday, July 15, 2008 / Notices
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–16060 Filed 7–14–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–58119; File No. SR-CBOE–
2008–53]
• 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–2008–69 on the
subject line.
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Approving
Proposed Rule Change Pertaining to
the Imposition of Fines for Minor Rule
Violations
mstockstill on PROD1PC66 with NOTICES
Paper Comments
July 8, 2008.
On May 19, 2008, the Chicago Board
Options Exchange, Incorporated
• Send paper comments in triplicate
(‘‘CBOE’’ or ‘‘Exchange’’) filed with the
to Secretary, Securities and Exchange
Securities and Exchange Commission
Commission, 100 F Street, NE.,
(‘‘Commission’’), pursuant to Section
Washington, DC 20549–1090.
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
All submissions should refer to File
thereunder,2 a proposed rule change to
Number SR–CBOE–2008–69. This file
amend CBOE Rule 17.50 (Imposition of
number should be included on the
subject line if e-mail is used. To help the Fines for Minor Rule Violations) and to
revise the provisions of CBOE
Commission process and review your
17.50(g)(1) (Violations of Position Limits
comments more efficiently, please use
only one method. The Commission will Rules). The proposed rule change was
post all comments on the Commission’s published for comment in the Federal
Register on June 5, 2008.3 The
Internet Web site (https://www.sec.gov/
Commission received no comments
rules/sro.shtml). Copies of the
regarding the proposal. This order
submission, all subsequent
approves the proposed rule change.
amendments, all written statements
The proposal would, in connection
with respect to the proposed rule
with any member or customer who
change that are filed with the
exceeds the Exchange’s position limit in
Commission, and all written
accordance with CBOE Rule 4.11,
communications relating to the
increase the fine levels specified in the
proposed rule change between the
Minor Rule Violation Plan (‘‘MRVP’’);
Commission and any person, other than consolidate individual members,
those that may be withheld from the
member organizations, and customers
public in accordance with the
into one category; and lengthen the
provisions of 5 U.S.C. 552, will be
surveillance period from a 12-month
available for inspection and copying in
period to a rolling 24-month period.
the Commission’s Public Reference
The Commission finds that the
Room on official business days between proposed rule change is consistent with
the requirements of the Act and the
the hours of 10 a.m. and 3 p.m. Copies
rules and regulations thereunder
of such filing also will be available for
applicable to a national securities
inspection and copying at the principal
exchange.4 In particular, the
office of the Exchange. All comments
received will be posted without change; Commission believes that the proposal
is consistent with Section 6(b)(5) of the
the Commission does not edit personal
identifying information from
10 17 CFR 200.30–3(a)(12).
submissions. You should submit only
1 15 U.S.C. 78s(b)(1).
information that you wish to make
2 17 CFR 240.19b–4.
available publicly. All submissions
3 See Securities Exchange Act Release No. 57883
should refer to File Number SR–CBOE–
(May 29, 2008), 73 FR 32065.
4 In approving this proposed rule change, the
2008–69 and should be submitted on or
Commission notes that it has considered the
before August 5, 2008.
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Aug<31>2005
15:01 Jul 14, 2008
Jkt 214001
PO 00000
Frm 00168
Fmt 4703
Sfmt 4703
Act,5 which requires that the rules of an
exchange be designed to promote just
and equitable principles of trade, to
facilitate transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. The Commission further
believes that CBOE’s proposal is
consistent with Sections 6(b)(1) and
6(b)(6) of the Act,6 which require that
the rules of an exchange enforce
compliance with, and provide
appropriate discipline for, violations of
Commission and Exchange rules. In
addition, because existing CBOE Rule
17.50 provides procedural rights to a
person fined under the MRVP to contest
the fine and permits a hearing on the
matter, the Commission believes that
the MRVP, as amended by this proposal,
provides a fair procedure for the
disciplining of members and persons
associated with members, consistent
with Sections 6(b)(7) and 6(d)(1) of the
Act.7 In addition, the Commission finds
that the proposal is consistent with the
public interest, the protection of
investors, or otherwise in furtherance of
the purposes of the Act, as required by
Rule 19d–1(c)(2) under the Act,8 which
governs minor rule violation plans. The
Commission believes that the proposed
rule change should strengthen the
Exchange’s ability to carry out its
oversight and enforcement
responsibilities as an SRO in cases
where full disciplinary proceedings are
unsuitable in view of the minor nature
of the particular violation.
In approving this proposed rule
change, the Commission in no way
minimizes the importance of
compliance with CBOE rules and all
other rules subject to the imposition of
fines under the MRVP. The Commission
believes that the violation of any SRO
rules, as well as Commission rules, is a
serious matter. However, the MRVP
provides a reasonable means of
addressing rule violations that do not
rise to the level of requiring formal
disciplinary proceedings, while
providing greater flexibility in handling
certain violations. The Commission
expects that CBOE would continue to
conduct surveillance with due diligence
and make a determination based on its
findings, on a case-by-case basis,
whether a fine of more or less than the
recommended amount is appropriate for
a violation under the CBOE MRVP or
whether a violation requires formal
5 15
U.S.C. 78f(b)(5).
U.S.C. 78f(b)(1) and 78f(b)(6).
7 15 U.S.C. 78f(b)(7) and 78f(d)(1).
8 17 CFR 240.19d–1(c)(2).
6 15
E:\FR\FM\15JYN1.SGM
15JYN1
]]>Agencies
[Federal Register Volume 73, Number 136 (Tuesday, July 15, 2008)]
[Notices]
[Pages 40645-40646]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-16060]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58117; File No. SR-CBOE-2008-69]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to an Extension of the Linkage Fee Pilot Program
July 8, 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 June 30, 2008, Chicago Board Options Exchange, Incorporated
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared
substantially by CBOE. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to amend its Fees Schedule to extend through July 31,
2009 the Options Intermarket Linkage (``Linkage'') fees pilot program.
The text of the proposed rule change is available at https://
www.cboe.org/legal, the Exchange, and 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, 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
The Exchange's fees for Principal (``P'') and Principal Acting as
Agent (``P/A'') orders \3\ are operating under a pilot program
scheduled to expire on July 31, 2008.\4\ The Exchange proposes to amend
its Fees Schedule to extend the pilot program until July 31, 2009. The
Exchange is proposing no other changes to the operation of the pilot
program.
---------------------------------------------------------------------------
\3\ Under the Plan for the Purpose of Creating and Operating an
Options Intermarket Linkage (``Plan'') and Exchange Rule 6.80(12),
which tracks the language of the Plan, a ``Linkage Order'' means an
Immediate or Cancel Order routed through the Linkage as permitted
under the Plan. There are three types of Linkage Orders: (i) ``P/A
Order'', which is an order for the principal account of a specialist
(or equivalent entity on another Participant Exchange that is
authorized to represent Public Customer orders), reflecting the
terms of a related unexecuted Public Customer order for which the
specialist is acting as agent; (ii) ``P Order'', which is an order
for the principal account of an Eligible Market Maker and is not a
P/A Order; and (iii) ``Satisfaction Order,'' which is an order sent
through the Linkage to notify a member of another Participant
Exchange of a Trade-Through and to seek satisfaction of the
liability arising from that Trade-Through.
\4\ See Securities Exchange Act Release No. 56132 (July 25,
2007), 72 FR 42158 (August 1, 2007) (SR-CBOE-2007-71).
---------------------------------------------------------------------------
The Exchange assesses its members the following Linkage order
related fees: (i) $.30 per contract transaction fee, and (ii) $.10 per
contract surcharge fee on transactions in options on the Nasdaq-100
Index (MNX and NDX) and options on the Russell 2000 Index (RUT).\5\
Satisfaction orders are not assessed Exchange fees.
---------------------------------------------------------------------------
\5\ See CBOE Fees Schedule, Footnote 14. Surcharge fees are also
assessed on OEX, XEO, SPX, volatility index options, DJX and DXL
options; however, Linkage fees do not apply to these products as
they are not multiply listed.
---------------------------------------------------------------------------
The Exchange believes that extension of the Linkage fee pilot
program until July 31, 2009 will give the Commission further
opportunity to evaluate the appropriateness of Linkage fees.
The Exchange also proposes to amend Section 21 of the Fees Schedule
to change the Linkage fees pilot expiration date included in that
section to July 31, 2009, thereby extending the term of the DPM Linkage
Fees Credit program for PA orders.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Act,\6\ in general, and furthers the objectives of
Section 6(b)(4) \7\ of the Act 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. The Exchange believes that extension of the Linkage fee
pilot program until July 31, 2009 will give the Commission further
opportunity to evaluate the appropriateness of Linkage fees.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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 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
Because the foregoing proposed rule change does not:
(i) Significantly affect the protection of investors or the public
interest;
(ii) Impose any significant burden on competition; and
(iii) Become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \8\ and
Rule 19b-4(f)(6) thereunder.\9\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the 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,
[[Page 40646]]
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:
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-2008-69 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2008-69. 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 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 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-2008-69 and should be submitted on or before August 5, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-16060 Filed 7-14-08; 8:45 am]
BILLING CODE 8010-01-P
