Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend its Fees Schedule, 58999-59000 [E8-23763]

Download as PDF Federal Register / Vol. 73, No. 196 / Wednesday, October 8, 2008 / Notices internal cross reference stating that the intervals between strike prices for MiniNDX option series would be determined in accordance with proposed new Interpretation and Policy .01(h) to Rule 24.9. Capacity CBOE has analyzed its capacity and represents that it believes the Exchange and the Options Price Reporting Authority have the necessary systems capacity to handle the additional traffic associated with the listing and trading of $1 strikes or greater for Mini-NDX options. 2. Statutory Basis The Exchange believes this rule proposal is consistent with the Securities Exchange Act of 1934 (the ‘‘Act’’) and the rules and regulations under the Act applicable to a national securities exchange and, in particular, the requirements of Section 6(b) of the Act.7 Specifically, the Exchange believes that the proposed rule change is consistent with the Section 6(b)(5) Act 8 requirements that the rules of an exchange be designed to promote just and equitable principles of trade, to prevent fraudulent and manipulative acts and, in general, to protect investors and the public interest. 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 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 neither solicited nor received comments on the proposal. jlentini on PROD1PC65 with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: A. By order approve such proposed rule change, or 7 15 8 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). VerDate Aug<31>2005 18:10 Oct 07, 2008 Jkt 217001 B. Institute proceedings to determine whether the proposed rule change should be disapproved. 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: 58999 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Acting Secretary. [FR Doc. E8–23757 Filed 10–7–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58700; File No. SR–CBOE– 2008–100] 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 No. SR–CBOE–2008–96 on the subject line. Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend its Fees Schedule October 1, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 • Send paper comments in triplicate notice is hereby given that on to Secretary, Securities and Exchange September 22, 2008, Chicago Board Commission, 100 F Street, NE., Options Exchange, Incorporated Washington, DC 20549–1090. (‘‘Exchange’’ or ‘‘CBOE’’) filed with the Securities and Exchange Commission All submissions should refer to File (the ‘‘Commission’’) the proposed rule Number SR–CBOE–2008–96. 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. The Commission process and review your Exchange has designated this proposal comments more efficiently, please use as one establishing or changing a due, only one method. The Commission will fee, or other charge imposed by CBOE post all comments on the Commission’s under Section 19(b)(3)(A)(ii) of the Act 3 Internet Web site (http://www.sec.gov/ and Rule 19b–4(f)(2) thereunder.4 The rules/sro.shtml). Copies of the Commission is publishing this notice to submission, all subsequent solicit comments on the proposed rule amendments, all written statements change from interested persons. with respect to the proposed rule I. Self-Regulatory Organization’s change that are filed with the Statement of the Terms of Substance of Commission, and all written the Proposed Rule Change communications relating to the proposed rule change between the The Exchange proposes to amend its Commission and any person, other than Fees Schedule to establish fees for those that may be withheld from the transactions in CBOE S&P 500 BuyWrite public in accordance with the Index (1/10th value) (‘‘BXO’’) options provisions of 5 U.S.C. 552, will be and CBOE S&P 500 Three-Month Realized Volatility (‘‘RUH’’) options. available for inspection and copying in The text of the proposed rule change is the Commission’s Public Reference available on the Exchange’s Web site Room, 100 F Street, NE., Washington, (http://www.cboe.org/Legal), at the DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Exchange’s Office of the Secretary and at the Commission. Copies of such filing also will be available for inspection and copying at II. Self-Regulatory Organization’s the principal office of the Exchange. All Statement of the Purpose of, and comments received will be posted Statutory Basis for, the Proposed Rule without change; the Commission does Change not edit personal identifying In its filing with the Commission, the information from submissions. You self-regulatory organization included should submit only information that you wish to make available publicly. All 9 17 CFR 200.30–3(a)(12). submissions should refer to File 1 15 U.S.C. 78s(b)(1). Number SR–CBOE–2008–96 and should 2 17 CFR 240.19b–4. be submitted on or before October 29, 3 15 U.S.C. 78s(b)(3)(A)(ii). 2008. 4 17 CFR 240.19b–4(f)(2). Paper Comments PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 E:\FR\FM\08OCN1.SGM 08OCN1 59000 Federal Register / Vol. 73, No. 196 / Wednesday, October 8, 2008 / Notices 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 those 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 parts of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change jlentini on PROD1PC65 with NOTICES 1. Purpose The Exchange recently received approval to list and trade options on BXO and RUH, both of which are calculated by the Exchange.5 The purpose of this rule change is to establish transaction fees for these new products. The Exchange states that the proposed transactions fees for BXO options and RUH options are identical to those established for options on volatility indexes.6 The amount of the transactions fees for BXO and RUH options shall be as follows: • $0.20 per contract for MarketMaker, Designated Primary MarketMaker and Remote Market-Maker transactions; 7 • $0.20 per contract for member firm proprietary transactions; • $0.25 per contract for manually executed broker-dealer transactions; • $0.45 per contract for electronically executed broker-dealer transactions; • $0.40 per contract for voluntary professional transactions; • $0.40 per contract for customer transactions; and • $0.10 per contract CFLEX surcharge fee. The Exchange also proposes to adopt a $.06 per contract surcharge fee on all non-public customer transactions in BXO and RUH options to help the Exchange recoup license fees the Exchange pays to the reporting authority. The proposed surcharge fee is identical to the surcharge fee currently assessed non-public customer transactions in options on the S&P 100 Index (‘‘OEX’’ and ‘‘XEO’’), S&P 500 Index (‘‘SPX’’) and volatility indexes. The Exchange’s Liquidity Provider Sliding Scale 8 shall apply to transaction 5 See Securities Exchange Act Release Nos. 58207 (July 22, 2008), 73 FR 43963 (July 29, 2008) (SR– CBOE–2008–26) and 58171 (July 16, 2008), 73 FR 422841 (July 23, 2008) (SR–CBOE–2008–31). 6 For purposes of CBOE’s Fees Schedule, RUH options shall be treated as index options. 7 This is the standard rate that is subject to the Liquidity Provider Sliding Scale as set forth in Footnote 10 to the Fees Schedule. 8 See Footnote 10 of the Fees Schedule. VerDate Aug<31>2005 18:10 Oct 07, 2008 Jkt 217001 fees in BXO and RUH options, but the Exchange’s marketing fee 9 shall not apply. The Exchange believes the rule change will further the Exchange’s goal of introducing new products to the marketplace that are competitively priced.10 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act,11 in general, and furthers the objectives of Section 6(b)(4) 12 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. 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 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 neither solicited nor received comments on the proposal. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed 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 13 and subparagraph (f)(2) of Rule 19b–4 14 thereunder. 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, 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 Footnote 6 of the Fees Schedule. order fees are inapplicable for options on CBOE’s proprietary products. 11 15 U.S.C. 78f(b). 12 15 U.S.C. 78f(b)(4). 13 15 U.S.C. 78s(b)(3)(A). 14 17 C.F.R. 240.19b–4(f)(2). 10 Linkage PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 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 Number SR–CBOE–2008–100 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–2008–100. 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–2008–100 and should be submitted on or before October 29, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Florence E. Harmon, Acting Secretary. [FR Doc. E8–23763 Filed 10–7–08; 8:45 am] BILLING CODE 8011–01–P 15 17 E:\FR\FM\08OCN1.SGM CFR 200.30–3(a)(12). 08OCN1

Agencies

[Federal Register Volume 73, Number 196 (Wednesday, October 8, 2008)]
[Notices]
[Pages 58999-59000]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-23763]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58700; File No. SR-CBOE-2008-100]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change to Amend its Fees Schedule

October 1, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on September 22, 2008, Chicago Board Options Exchange, 
Incorporated (``Exchange'' or ``CBOE'') filed with the Securities and 
Exchange Commission (the ``Commission'') the proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
by the Exchange. The Exchange 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\ The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \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 its Fees Schedule to establish fees 
for transactions in CBOE S&P 500 BuyWrite Index (1/10th value) 
(``BXO'') options and CBOE S&P 500 Three-Month Realized Volatility 
(``RUH'') options. The text of the proposed rule change is available on 
the Exchange's Web site (http://www.cboe.org/Legal), at the Exchange's 
Office of the Secretary and at the Commission.

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 self-regulatory organization 
included

[[Page 59000]]

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 those 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 parts of 
such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange recently received approval to list and trade options 
on BXO and RUH, both of which are calculated by the Exchange.\5\ The 
purpose of this rule change is to establish transaction fees for these 
new products. The Exchange states that the proposed transactions fees 
for BXO options and RUH options are identical to those established for 
options on volatility indexes.\6\
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    \5\ See Securities Exchange Act Release Nos. 58207 (July 22, 
2008), 73 FR 43963 (July 29, 2008) (SR-CBOE-2008-26) and 58171 (July 
16, 2008), 73 FR 422841 (July 23, 2008) (SR-CBOE-2008-31).
    \6\ For purposes of CBOE's Fees Schedule, RUH options shall be 
treated as index options.
---------------------------------------------------------------------------

    The amount of the transactions fees for BXO and RUH options shall 
be as follows:
     $0.20 per contract for Market-Maker, Designated Primary 
Market-Maker and Remote Market-Maker transactions; \7\
---------------------------------------------------------------------------

    \7\ This is the standard rate that is subject to the Liquidity 
Provider Sliding Scale as set forth in Footnote 10 to the Fees 
Schedule.
---------------------------------------------------------------------------

     $0.20 per contract for member firm proprietary 
transactions;
     $0.25 per contract for manually executed broker-dealer 
transactions;
     $0.45 per contract for electronically executed broker-
dealer transactions;
     $0.40 per contract for voluntary professional 
transactions;
     $0.40 per contract for customer transactions; and
     $0.10 per contract CFLEX surcharge fee.
    The Exchange also proposes to adopt a $.06 per contract surcharge 
fee on all non-public customer transactions in BXO and RUH options to 
help the Exchange recoup license fees the Exchange pays to the 
reporting authority. The proposed surcharge fee is identical to the 
surcharge fee currently assessed non-public customer transactions in 
options on the S&P 100 Index (``OEX'' and ``XEO''), S&P 500 Index 
(``SPX'') and volatility indexes.
    The Exchange's Liquidity Provider Sliding Scale \8\ shall apply to 
transaction fees in BXO and RUH options, but the Exchange's marketing 
fee \9\ shall not apply. The Exchange believes the rule change will 
further the Exchange's goal of introducing new products to the 
marketplace that are competitively priced.\10\
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    \8\ See Footnote 10 of the Fees Schedule.
    \9\ See Footnote 6 of the Fees Schedule.
    \10\ Linkage order fees are inapplicable for options on CBOE's 
proprietary products.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\11\ in general, and furthers the objectives of Section 6(b)(4) 
\12\ 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.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE does not believe that the proposed rule change will impose any 
burden on competition 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 neither solicited nor received comments on the 
proposal.

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

    Because the foregoing proposed 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 \13\ and 
subparagraph (f)(2) of Rule 19b-4 \14\ thereunder. 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, or otherwise in furtherance of the 
purposes of the Act.
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 C.F.R. 240.19b-4(f)(2).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-CBOE-2008-100 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-2008-100. 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-2008-100 and should be 
submitted on or before October 29, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-23763 Filed 10-7-08; 8:45 am]
BILLING CODE 8011-01-P