Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by Chicago Board Options Exchange, Incorporated Regarding Fees for the CBOE Stock Exchange, 1736-1737 [E9-391]
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1736
Federal Register / Vol. 74, No. 8 / Tuesday, January 13, 2009 / Notices
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, located at 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 filings
also will be available for inspection and
copying at the principal office of the
BSE. 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–BSE–2008–56 and should
be submitted on or before February 3,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–439 Filed 1–12–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59209; File No. SR–CBOE–
2008–132]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by Chicago
Board Options Exchange, Incorporated
Regarding Fees for the CBOE Stock
Exchange
January 7, 2009.
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 December
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 CBOE. The Commission
is publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Chicago Board Options Exchange,
Incorporated (‘‘CBOE’’ or ‘‘Exchange’’)
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
proposes to amend its CBOE Stock
Exchange (‘‘CBSX’’) Fees Schedule. The
text of the proposed rule change is
available on the Exchange’s Web site
(https://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,
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
The Exchange proposes to amend the
CBSX Fees Schedule to adopt fees for
transactions involving securities priced
under $1. Specifically, for transactions
of securities priced less than $1, the
Exchange proposes a credit of 0.0020
times the principal amount of the trade
for liquidity providers (makers); a
charge of 0.0029 times the principal
amount of the trade for removing
liquidity (takers); and a charge of 0.0029
times the principal amount of the trade
for an order routed to another exchange,
except for an order routed as part of a
Cross and Sweep Order, in which case
the charge would be 0.0040 times the
principal amount of the trade. The
proposed changes will take effect on
January 1, 2009.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Securities Exchange Act of 1934
(‘‘Act’’),3 in general, and furthers the
objectives of Section 6(b)(4) 4 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 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 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 5 and
subparagraph (f)(2) of Rule 19b–4 6
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:
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
Number SR–CBOE–2008–132 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–CBOE–2008–132. 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
7 17
1 15
VerDate Nov<24>2008
19:10 Jan 12, 2009
3 15
4 15
Jkt 217001
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
Frm 00075
Fmt 4703
5 15
6 17
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E:\FR\FM\13JAN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
13JAN1
Federal Register / Vol. 74, No. 8 / Tuesday, January 13, 2009 / Notices
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 the 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–
2008–132 and should be submitted on
or before February 3, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–391 Filed 1–12–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59210; File No. SR–CBOE–
2008–118]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Granting Approval
of Proposed Rule Change Related to
Obvious Error Rules
January 7, 2009.
On November 26, 2008, the Chicago
Board Options Exchange, Incorporated
(‘‘CBOE’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend CBOE Rules 6.25 and 24.16
(collectively, the ‘‘Obvious Error Rules’’)
to adopt procedures that would allow
CBOE to review transactions on its own
motion. The proposed rule change was
published for comment in the Federal
Register on December 8, 2008.3 The
Commission received no comment
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Securities Exchange Act Release No. 59038
(December 2, 2008), 73 FR 74543.
1 15
VerDate Nov<24>2008
19:54 Jan 12, 2009
Jkt 217001
letters on the proposal. This order
approves the proposed rule change.
The proposed rule change would
provide that, in the interest of
maintaining a fair and orderly market
and for the protection of investors, the
President of CBOE or his/her designee,
who shall be an officer of CBOE but may
not be a member (collectively ‘‘CBOE
officer’’), may, on his or her own motion
or upon request, determine to review
any transaction occurring on CBOE that
is believed to be erroneous.4 CBOE
would nullify or adjust a transaction
reviewed pursuant to this new provision
only if it is determined that the
transaction is erroneous as provided in
CBOE Rule 6.25(a)(1)–(6) or Rule
24.16(a)(1)–(6), as applicable.5 Trading
Officials (or the senior official in the
control room, in the case of opening
trades in CBOE Rule 5.4 restricted series
being reviewed under CBOE Rule
6.25(a)(6) or Rule 24.16(a)(6)) may assist
the CBOE officer in reviewing a
transaction.
Under the proposed rule change, the
CBOE officer would be required to act
as soon as possible after receiving
notification of the transaction, and
ordinarily would be expected to act on
the same day as the transaction.
However, because a transaction under
review may have occurred near the
close of trading or due to unusual
circumstances, the rule provides that
the CBOE officer would be required to
act no later than 8:30 a.m. (CT) on the
next trading day following the date of
the transaction at issue. A member
affected by a determination to nullify or
adjust a transaction pursuant to this
new provision would be permitted to
appeal such determination in
accordance with Rule 6.25(d) or Rule
24.16(d); however, a determination by a
CBOE officer not to review a
transaction, or a determination not to
nullify or adjust a transaction for which
a review was requested or conducted, is
not appealable. Transactions adjusted or
nullified pursuant to this new provision
cannot be reviewed by an Obvious Error
Panel under paragraph (c) of Rule 6.25.
4 In the event a party to a transaction requests that
the President or his/her designee review a
transaction, the CBOE officer nonetheless would
need to determine, on his or her own motion,
whether to review the transaction. In addition, if a
transaction is reviewed and a determination is
rendered pursuant to paragraphs (b)(1) and (b)(2) of
CBOE Rule 6.25 or Rule 24.16, relief shall not be
granted under the new provision of the applicable
Obvious Error Rule.
5 The transaction would be adjusted or nullified
in accordance with the provision under which it is
deemed an erroneous transaction, including
consideration of whether the parties involved are
CBOE market-makers, non-CBOE market makers, or
customers pursuant to CBOE Rule 6.25(a)(1)(i)–(iv)
and CBOE Rule 24.16(c).
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
1737
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange 6 and, in particular, the
requirements of Section 6(b) of the Act 7
and the rules and regulations
thereunder. Specifically, the
Commission finds that the proposal is
consistent with Section 6(b)(5) of the
Act,8 in that the proposal is designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts, to remove
impediments to and to perfect the
mechanism for a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
The Commission notes that, in
approving proposals relating to
adjustment or nullification of trades
involving obvious errors, it has stated
that the determination of whether an
obvious error has occurred and the
process for reviewing such a
determination should be based on
specific and objective criteria and
subject to specific and objective
procedures.9 The Commission notes that
the new provisions in the Obvious Error
Rules also have specific and objective
procedures for determining whether a
trade should be adjusted or nullified.
The purpose of the new provisions is
only to enable a CBOE officer on his/her
own motion or upon request, to provide
relief in instances where parties failed
to meet the established time reporting
requirements in CBOE’s Obvious Error
Rules. The new provisions still require
that the transaction be erroneous as
provided in CBOE Rules 6.25 or 24.16,
as applicable, and the new provisions
set forth specific time frames and
procedures. Therefore, the Commission
believes that that proposed rule change
is appropriate.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change (SR–CBOE–2008–
118) is hereby approved.
6 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
9 See, e.g., Securities Exchange Act Release Nos.
58778 (October 14, 2008), 73 FR 62577 (October 21,
2008) and 54228 (July 27, 2006), 71 FR 44066
(August 3, 2006) (SR–CBOE–2006–14) (approving
revisions to CBOE’s Obvious Error Rules).
10 15 U.S.C. 78s(b)(2).
E:\FR\FM\13JAN1.SGM
13JAN1
]]>Agencies
[Federal Register Volume 74, Number 8 (Tuesday, January 13, 2009)]
[Notices]
[Pages 1736-1737]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-391]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59209; File No. SR-CBOE-2008-132]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by Chicago Board Options
Exchange, Incorporated Regarding Fees for the CBOE Stock Exchange
January 7, 2009.
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 December 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 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
Chicago Board Options Exchange, Incorporated (``CBOE'' or
``Exchange'') proposes to amend its CBOE Stock Exchange (``CBSX'') Fees
Schedule. The text of the proposed rule change is available on the
Exchange's Web site (https://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, 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
The Exchange proposes to amend the CBSX Fees Schedule to adopt fees
for transactions involving securities priced under $1. Specifically,
for transactions of securities priced less than $1, the Exchange
proposes a credit of 0.0020 times the principal amount of the trade for
liquidity providers (makers); a charge of 0.0029 times the principal
amount of the trade for removing liquidity (takers); and a charge of
0.0029 times the principal amount of the trade for an order routed to
another exchange, except for an order routed as part of a Cross and
Sweep Order, in which case the charge would be 0.0040 times the
principal amount of the trade. The proposed changes will take effect on
January 1, 2009.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (``Act''),\3\ in general, and furthers
the objectives of Section 6(b)(4) \4\ 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.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f(b).
\4\ 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 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 \5\ and subparagraph (f)(2)
of Rule 19b-4 \6\ 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 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@sec.gov. Please include
File Number SR-CBOE-2008-132 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2008-132. 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
[[Page 1737]]
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 the 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-2008-132 and should be
submitted on or before February 3, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-391 Filed 1-12-09; 8:45 am]
BILLING CODE 8011-01-P
