Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the CBOE Fees Schedule, 41140-41141 [E8-16345]
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41140
Federal Register / Vol. 73, No. 138 / Thursday, July 17, 2008 / Notices
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
mstockstill on PROD1PC66 with NOTICES
• 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
No. SR–BSE–2008–37 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58127; File No. SR–CBOE–
2008–68]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the CBOE
Fees Schedule
July 9, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
Paper Comments
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on June 30,
to Secretary, Securities and Exchange
2008, the Chicago Board Options
Commission, 100 F Street, NE.,
Exchange, Incorporated (‘‘CBOE’’ or
Washington, DC 20549–1090.
‘‘Exchange’’) filed with the Securities
and Exchange Commission
All submissions should refer to File
(‘‘Commission’’) the proposed rule
Number SR–BSE–2008–37. This file
change as described in Items I, II, and
number should be included on the
III below, which Items have been
subject line if e-mail is used. To help the
prepared by the Exchange. CBOE has
Commission process and review your
designated this proposal as one
comments more efficiently, please use
establishing or changing a due, fee, or
only one method. The Commission will
other charge imposed by CBOE under
post all comments on the Commission’s
Section 19(b)(3)(A)(ii) of the Act 3 and
Internet Web site (https://www.sec.gov/
Rule 19b–4(f)(2) thereunder,4 which
rules/sro.shtml ). Copies of the
renders the proposal effective upon
submission, all subsequent
filing with the Commission. The
amendments, all written statements
Commission is publishing this notice to
with respect to the proposed rule
solicit comments on the proposed rule
change that are filed with the
change from interested persons.
Commission, and all written
communications relating to the
I. Self-Regulatory Organization’s
proposed rule change between the
Statement of the Terms of Substance of
Commission and any person, other than the Proposed Rule Change
those that may be withheld from the
CBOE proposes to amend its Fees
public in accordance with the
Schedule to establish fees for
provisions of 5 U.S.C. 552, will be
transactions in binary options on broadavailable for inspection and copying in
based indexes and to amend its
the Commission’s Public Reference
marketing fee program. The Exchange
Room, 100 F Street, NE., Washington,
also proposes to make a technical
DC 20549, on official business days
amendment by deleting all references to
between the hours of 10 a.m. and 3 p.m. the obsolete term ‘‘RMM’’ from its Fees
Copies of such filing also will be
Schedule. The text of the proposed rule
available for inspection and copying at
change is available at the Exchange, the
the principal office of the Exchange. All Commission’s Public Reference Room,
comments received will be posted
and https://www.cboe.com.
without change; the Commission does
II. Self-Regulatory Organization’s
not edit personal identifying
Statement of the Purpose of, and
information from submissions. You
Statutory Basis for, the Proposed Rule
should submit only information that
you wish to make available publicly. All Change
submissions should refer to File No.
In its filing with the Commission, the
SR–BSE–2008–37 and should be
Exchange included statements
submitted on or before August 7, 2008.
concerning the purpose of, and basis for,
the proposed rule change, and discussed
For the Commission, by the Division of
any comments it received on the
Trading and Markets, pursuant to delegated
proposed rule change. The text of these
authority.14
statements may be examined at the
Florence E. Harmon,
places specified in Item IV below. CBOE
Acting Secretary.
[FR Doc. E8–16348 Filed 7–16–08; 8:45 am]
BILLING CODE 8010–01–P
14 17
21:03 Jul 16, 2008
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).
2 17
CFR 200.30–3(a)(12).
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has substantially 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
Establish Transaction Fees for Binary
Options
The Exchange recently received
approval to list and trade binary options
on broad-based indexes, and the
purpose of this rule change is to
establish transaction fees for binary
options on broad-based indexes.5 The
Exchange proposes to extend the
existing fees for transactions in
traditional index options to binary
options on broad-based indexes. To
affect the current proposal, the
Exchange proposes to add a reference to
‘‘binary options’’ in Footnotes 1 and 6
in the CBOE Fees Schedule.
The amount of the transactions fees
for binary options on broad-based
indexes would be as follows:
• $0.20 per contract for MarketMaker, Designated Primary MarketMaker and Remote Market-Maker
transactions;
• $0.20 per contract for member firm
proprietary transactions;
The fees for broker-dealer transactions
are as follows:
• $0.25 per contract for manually
executed transactions other than OEX,
XEO and SPX;
• $0.30 per contract for OEX or XEO;
• $0.40 per contract for SPX;
• $0.45 per contract for electronically
executed transactions other than OEX,
XEO and SPX (i.e., broker-dealer orders
that are automatically executed on the
CBOE Hybrid Trading System); 6
The fees for customer transactions
shall be as follows:
• $0.18 per contract for transactions
other than OEX, XEO, SPX, DXL and
Volatility Indexes;
• $0.30 per contract for OEX or XEO;
• $0.35 per contract for SPX,
premium < $1;
• $0.40 per contract for DXL and
Volatility Indexes;
• $0.45 per contract for SPX,
premium > or = $1;
5 See Securities Exchange Act Release No. 57850
(May 22, 2008), 73 FR 31169 (May 30, 2008) (SR–
CBOE–2006–105).
6 Broker-dealer manual and electronic transaction
fees would apply to broker-dealer orders (orders
with ‘‘B’’ origin code), non-member market-maker
orders (orders with ‘‘N’’ origin code) and orders
from specialists in the underlying security (orders
with ‘‘Y’’ origin code).
E:\FR\FM\17JYN1.SGM
17JYN1
Federal Register / Vol. 73, No. 138 / Thursday, July 17, 2008 / Notices
• $0.30 per contract for Linkage
Orders; and
• $0.10 per contract CFLEX surcharge
fee.
In addition, a surcharge fee of $0.06
would apply to non-public customer
transactions in binary options on OEX,
XEO, SPX, and Volatility Indexes, and
a surcharge fee of $0.10 would apply to
non-public customer transactions in
binary options on DJX, DXL, MNX,
NDX, and RUT. These surcharge fees
help the Exchange recoup license fees
the Exchange pays to the different
reporting authorities in order to list
options on the respective broad-based
indexes.
The Exchange’s Liquidity Provider
Sliding Scale 7 would apply to
transaction fees in binary options, but
the Exchange’s marketing fee 8 would
not apply. The Exchange believes the
rule change would further the
Exchange’s goal of introducing new
products to the marketplace that are
competitively priced. In order to
promote the launch of binary options on
broad-based indexes, the Exchange
proposes to waive the applicable
transactions fees beginning with the
launch of trading on July 1, 2008
through October 1, 2008.
mstockstill on PROD1PC66 with NOTICES
Amend Exchange’s Marketing Fee
Program
CBOE also proposes to amend its
marketing fee program to assess the fee
in XSP options at the rate of $0.10 per
contract. XSP options are options based
on the S&P 500 Index and have 1/10th
the value of the S&P 500 index options.
CBOE currently assesses its marketing
fee at the rate of $0.10 per contract in
SPY options, which are options on the
SPDR exchange-traded fund (ETF)
which is designed to track the
performance of the S&P 500 Index.
CBOE believes that assessing the
marketing fee in XSP will allow CBOE
Market-Makers, e-DPMs, or DPMs to
compete better for order flow in XSP
options class if it assessed the marketing
fee in it, just as it assesses the fee in SPY
options. CBOE proposes to implement
this change to the marketing fee
program beginning on July 1, 2008.
CBOE is not amending its marketing fee
program in any other respects.
Technical Change—Delete All
References to ‘‘RMM’’
CBOE also proposes to make a
technical amendment throughout its
Fees Schedule. Specifically, CBOE
proposes to delete all references to
‘‘RMM,’’ in light of the recent approval
7 See
8 See
Footnote 10 of the CBOE Fees Schedule.
Footnote 6 of the CBOE Fees Schedule.
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21:03 Jul 16, 2008
Jkt 214001
of SR–CBOE–2007–120, which filing
deleted reference to RMM in CBOE’s
rules among other changes.9
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 10 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 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 its facilities.
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
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 proposed rule change
has been designated as a fee change
pursuant to Section 19(b)(3)(A)(ii) of the
Act 12 and Rule 19b–4(f)(2) 13
thereunder, because it establishes or
changes a due, fee, or other charge
imposed by the Exchange. Accordingly,
the proposal will take effect 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.
Comments may be submitted by any of
the following methods:
9 See Securities Exchange Act Release No. 57615
(April 3, 2008), 73 FR 19537 (April 10, 2008) (SR–
CBOE–2007–120).
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(4).
12 15 U.S.C. 78s(b)(3)(A)(ii).
13 17 CFR 240.19b–4(f)(2).
PO 00000
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Fmt 4703
Sfmt 4703
41141
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@gov. Please include File
Number SR–CBOE–2008–68 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–2008–68. 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 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–
2008–68 and should be submitted on or
before August 7, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–16345 Filed 7–16–08; 8:45 am]
BILLING CODE 8010–01–P
14 17
E:\FR\FM\17JYN1.SGM
CFR 200.30–3(a)(12).
17JYN1
]]>Agencies
[Federal Register Volume 73, Number 138 (Thursday, July 17, 2008)]
[Notices]
[Pages 41140-41141]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-16345]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58127; File No. SR-CBOE-2008-68]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend the CBOE Fees Schedule
July 9, 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, 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 prepared by the
Exchange. CBOE has designated this proposal as one establishing or
changing a due, fee, or other charge imposed by 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
CBOE proposes to amend its Fees Schedule to establish fees for
transactions in binary options on broad-based indexes and to amend its
marketing fee program. The Exchange also proposes to make a technical
amendment by deleting all references to the obsolete term ``RMM'' from
its Fees Schedule. The text of the proposed rule change is available at
the Exchange, the Commission's Public Reference Room, and https://
www.cboe.com.
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
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. CBOE has substantially 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
Establish Transaction Fees for Binary Options
The Exchange recently received approval to list and trade binary
options on broad-based indexes, and the purpose of this rule change is
to establish transaction fees for binary options on broad-based
indexes.\5\ The Exchange proposes to extend the existing fees for
transactions in traditional index options to binary options on broad-
based indexes. To affect the current proposal, the Exchange proposes to
add a reference to ``binary options'' in Footnotes 1 and 6 in the CBOE
Fees Schedule.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 57850 (May 22,
2008), 73 FR 31169 (May 30, 2008) (SR-CBOE-2006-105).
---------------------------------------------------------------------------
The amount of the transactions fees for binary options on broad-
based indexes would be as follows:
$0.20 per contract for Market-Maker, Designated Primary
Market-Maker and Remote Market-Maker transactions;
$0.20 per contract for member firm proprietary
transactions;
The fees for broker-dealer transactions are as follows:
$0.25 per contract for manually executed transactions
other than OEX, XEO and SPX;
$0.30 per contract for OEX or XEO;
$0.40 per contract for SPX;
$0.45 per contract for electronically executed
transactions other than OEX, XEO and SPX (i.e., broker-dealer orders
that are automatically executed on the CBOE Hybrid Trading System); \6\
---------------------------------------------------------------------------
\6\ Broker-dealer manual and electronic transaction fees would
apply to broker-dealer orders (orders with ``B'' origin code), non-
member market-maker orders (orders with ``N'' origin code) and
orders from specialists in the underlying security (orders with
``Y'' origin code).
---------------------------------------------------------------------------
The fees for customer transactions shall be as follows:
$0.18 per contract for transactions other than OEX, XEO,
SPX, DXL and Volatility Indexes;
$0.30 per contract for OEX or XEO;
$0.35 per contract for SPX, premium < $1;
$0.40 per contract for DXL and Volatility Indexes;
$0.45 per contract for SPX, premium > or = $1;
[[Page 41141]]
$0.30 per contract for Linkage Orders; and
$0.10 per contract CFLEX surcharge fee.
In addition, a surcharge fee of $0.06 would apply to non-public
customer transactions in binary options on OEX, XEO, SPX, and
Volatility Indexes, and a surcharge fee of $0.10 would apply to non-
public customer transactions in binary options on DJX, DXL, MNX, NDX,
and RUT. These surcharge fees help the Exchange recoup license fees the
Exchange pays to the different reporting authorities in order to list
options on the respective broad-based indexes.
The Exchange's Liquidity Provider Sliding Scale \7\ would apply to
transaction fees in binary options, but the Exchange's marketing fee
\8\ would not apply. The Exchange believes the rule change would
further the Exchange's goal of introducing new products to the
marketplace that are competitively priced. In order to promote the
launch of binary options on broad-based indexes, the Exchange proposes
to waive the applicable transactions fees beginning with the launch of
trading on July 1, 2008 through October 1, 2008.
---------------------------------------------------------------------------
\7\ See Footnote 10 of the CBOE Fees Schedule.
\8\ See Footnote 6 of the CBOE Fees Schedule.
---------------------------------------------------------------------------
Amend Exchange's Marketing Fee Program
CBOE also proposes to amend its marketing fee program to assess the
fee in XSP options at the rate of $0.10 per contract. XSP options are
options based on the S&P 500[supreg] Index and have 1/10th the value of
the S&P 500 index options. CBOE currently assesses its marketing fee at
the rate of $0.10 per contract in SPY options, which are options on the
SPDR exchange-traded fund (ETF) which is designed to track the
performance of the S&P 500[supreg] Index. CBOE believes that assessing
the marketing fee in XSP will allow CBOE Market-Makers, e-DPMs, or DPMs
to compete better for order flow in XSP options class if it assessed
the marketing fee in it, just as it assesses the fee in SPY options.
CBOE proposes to implement this change to the marketing fee program
beginning on July 1, 2008. CBOE is not amending its marketing fee
program in any other respects.
Technical Change--Delete All References to ``RMM''
CBOE also proposes to make a technical amendment throughout its
Fees Schedule. Specifically, CBOE proposes to delete all references to
``RMM,'' in light of the recent approval of SR-CBOE-2007-120, which
filing deleted reference to RMM in CBOE's rules among other changes.\9\
---------------------------------------------------------------------------
\9\ See Securities Exchange Act Release No. 57615 (April 3,
2008), 73 FR 19537 (April 10, 2008) (SR-CBOE-2007-120).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \10\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \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 its
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 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
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 proposed rule change has been designated as a fee
change pursuant to Section 19(b)(3)(A)(ii) of the Act \12\ and Rule
19b-4(f)(2) \13\ thereunder, because it establishes or changes a due,
fee, or other charge imposed by the Exchange. Accordingly, the proposal
will take effect 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.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A)(ii).
\13\ 17 CFR 240.19b-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@gov. Please include File
Number SR-CBOE-2008-68 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-2008-68. 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
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-2008-68 and should be submitted on or before August 7, 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,
Acting Secretary.
[FR Doc. E8-16345 Filed 7-16-08; 8:45 am]
BILLING CODE 8010-01-P
