Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Temporary Membership Status and Interim Trading Permit Access Fees, 2638-2640 [E9-777]
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Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Notices
prepared by the CBOE. The Commission
is publishing this notice to solicit
comments on the proposed rule change
from interested parties.
POSTAL SERVICE
SECURITIES AND EXCHANGE
COMMISSION
Board of Governors; Sunshine Act
Meeting
[File No. 500–1]
1 p.m., Thursday,
January 22, 2009.
The JPM Company, and Tidalwave
Holdings, Inc.; Order of Suspension of
Trading
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
January 13, 2009.
CBOE proposes to adjust (i) the
monthly access fee for persons granted
temporary CBOE membership status
(‘‘Temporary Members’’) pursuant to
Interpretation and Policy .02 under
CBOE Rule 3.19 (‘‘Rule 3.19.02’’) and
(ii) the monthly access fee for Interim
Trading Permit (‘‘ITP’’) holders under
CBOE Rule 3.27. 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’s Public Reference Room.
TIME AND DATE:
PLACE: Washington, DC at U.S. Postal
Service Headquarters, 475 L’Enfant
Plaza, SW.
STATUS:
Closed.
MATTERS TO BE CONSIDERED:
Thursday, January 22 at 1:00 p.m.
(Closed)
1. Pricing.
2. Financial Matters.
3. Strategic Issues.
CONTACT PERSON FOR MORE INFORMATION:
Julie S. Moore, Secretary of the Board,
U.S. Postal Service, 475 L’Enfant Plaza,
SW., Washington, DC 20260–1000.
Telephone (202) 268–4800.
Julie S. Moore,
Secretary.
[FR Doc. E9–831 Filed 1–13–09; 11:15 am]
BILLING CODE 7710–12–P
SECURITIES AND EXCHANGE
COMMISSION
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of The JPM
Company because it has not filed any
periodic reports since the period ended
June 30, 2001.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Tidalwave
Holdings, Inc. because it has not filed
any periodic reports since the period
ended December 31, 2000.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
companies.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
securities of the above-listed companies
is suspended for the period from 9:30
a.m. EST on January 13, 2009, through
11:59 p.m. EST on January 27, 2009.
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.
Sunshine Act Meeting
CITATION OF PREVIOUS ANNOUNCEMENT:
By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–904 Filed 1–13–09; 4:15 pm]
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
1. Purpose
[To be Published]
STATUS:
PLACE:
Closed Meeting.
100 F Street, NE., Washington,
DC.
DATE AND TIME OF PREVIOUSLY ANNOUNCED
MEETING: Thursday, January 15, 2009 at
2 p.m.
Time Change.
The Closed Meeting scheduled for
Thursday, January 15, 2009 at 2 p.m.
has been changed to Thursday, January
15, 2009 at 1 p.m.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items. For further
information and to ascertain what, if
any, matters have been added, deleted
or postponed, please contact the Office
of the Secretary at (202) 551–5400.
jlentini on PROD1PC65 with NOTICES
CHANGE IN THE MEETING:
Dated: January 12, 2009.
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–867 Filed 1–14–09; 8:45 am]
18:58 Jan 14, 2009
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Temporary
Membership Status and Interim
Trading Permit Access Fees
January 7, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
December 31, 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
1 15
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The current access fee for Temporary
Members under Rule 3.19.02 2 and the
current access fee for ITP holders under
Rule 3.27 3 are both $9,500 per month.
Both access fees are currently set at the
indicative lease rate (as defined below)
for December 2008. The Exchange
proposes to adjust both access fees
effective at the beginning of January
2009 to be equal to the indicative lease
rate for January 2009 (which is $10,175).
Specifically, the Exchange proposes to
revise both the Temporary Member
access fee and the ITP access fee to be
$10,175 per month commencing on
January 1, 2009.
2 See Securities Exchange Act Release No. 56458
(September 18, 2007), 72 FR 54309 (September 24,
2007) (SR-CBOE–2007–107) for a description of the
Temporary Membership status under Rule 3.19.02.
3 See Securities Exchange Act Release No. 58178
(July 17, 2008), 73 FR 42634 (July 22, 2008) (SR–
CBOE–2008–40) for a description of the Interim
Trading Permits under Rule 3.27.
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Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Notices
jlentini on PROD1PC65 with NOTICES
The indicative lease rate is defined
under Rule 3.27(b) as the highest
clearing firm floating monthly rate 4 of
the CBOE Clearing Members that assist
in facilitating at least 10% of the CBOE
transferable membership leases.5 The
Exchange determined the indicative
lease rate for January 2009 by polling
each of these Clearing Members and
obtaining the clearing firm floating
monthly rate designated by each of
these Clearing Members for that month.
The Exchange used the same process
to set the proposed Temporary Member
and ITP access fees that it used to set
the current Temporary Member and ITP
access fees. The only difference is that
the Exchange used clearing firm floating
monthly rate information for the month
of January 2009 to set the proposed
access fees (instead of clearing firm
floating monthly rate information for the
month of December 2008 as was used to
set the current access fees) in order to
take into account changes in clearing
firm floating monthly rates for the
month of January 2009.
The Exchange believes that the
process used to set the proposed
Temporary Member access fee and the
proposed Temporary Member access fee
itself are appropriate for the same
reasons set forth in CBOE rule filing SR–
CBOE–2008–12 with respect to the
original Temporary Member access fee.6
Similarly, the Exchange believes that
the process used to set the proposed ITP
access fee and the proposed ITP access
fee itself are appropriate for the same
reasons set forth in CBOE rule filing SR–
CBOE–2008–77 with respect to the
original ITP access fee.7
Each of the proposed access fees will
remain in effect until such time either
4 Rule 3.27(b) defines the clearing firm floating
monthly rate as the floating monthly rate that a
Clearing Member designates, in connection with
transferable membership leases that the Clearing
Member assisted in facilitating, for leases that
utilize that monthly rate.
5 The concepts of an indicative lease rate and of
a clearing firm floating month rate were previously
utilized in the CBOE rule filings that set and
adjusted the Temporary Member access fee. Both
concepts are also codified in Rule 3.27(b) in relation
to ITPs.
6 See Securities Exchange Act Release No. 57293
(February 8, 2008), 73 FR 8729 (February 14, 2008)
(SR–CBOE–2008–12), which established the
original Temporary Member access fee, for detail
regarding the rationale in support of the original
Temporary Member access fee and the process used
to set that fee, which is also applicable to this
proposed change to the Temporary Member access
fee as well.
7 See Securities Exchange Act Release No. 58200
(July 21, 2008), 73 FR 43805 (July 28, 2008) (SR–
CBOE–2008–77), which established the original ITP
access fee, for detail regarding the rationale in
support of the original ITP access fee and the
process used to set that fee, which is also applicable
to this proposed change to the ITP access fee as
well.
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18:58 Jan 14, 2009
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that the Exchange submits a further rule
filing pursuant to Section 19(b)(3)(A)(ii)
of the Act 8 to modify the applicable
access fee or the applicable status (i.e.,
the Temporary Membership status or
the ITP status) is terminated.
Accordingly, the Exchange may, and
likely will, further adjust the proposed
access fees in the future if the Exchange
determines that it would be appropriate
to do so taking into consideration lease
rates for transferable CBOE
memberships prevailing at that time.
The procedural provisions of the
CBOE Fee Schedule related to the
assessment of each proposed access fee
are not proposed to be changed and will
remain the same as the current
procedural provisions relating to the
assessment of that access fee.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,9 in general, and
furthers the objectives of Section 6(b)(4)
of the Act,10 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees, and
other charges among 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 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
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 11 and
subparagraph (f)(2) of Rule 19b–412
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,
8 15
U.S.C. 78s(b)(3)(A)(ii).
U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4).
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(2).
9 15
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2639
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–2008–134 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–2008–134. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of the 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 No.
SR–CBOE–2008–134 and should be
submitted on or before February 5, 2009.
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Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–777 Filed 1–14–09; 8:45 am]
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
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59219; File No. SR–
NASDAQ–2008–099]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Extend the
Temporary Suspension of the
Continued Listing Requirements
Related to Bid Price and Market Value
of Publicly Held Shares for Listing on
the Nasdaq Stock Market Through
April 19, 2009
January 8, 2009.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on December
18, 2008, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by Nasdaq. 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
Nasdaq proposes to extend the
temporary suspension of the application
of the continued inclusion bid price and
market value of publicly held shares
requirements for listing on the Nasdaq
Stock Market through April 19, 2009.
jlentini on PROD1PC65 with NOTICES
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Nasdaq 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. Nasdaq has prepared
summaries, set forth in Sections A, B,
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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1. Purpose
On October 16, 2008, Nasdaq filed a
proposed rule change, which was
immediately effective, to temporarily
suspend the bid price 4 and market
value of publicly held shares 5
continued listing requirements
otherwise applicable to issuers of
common stock, preferred stock,
secondary classes of common stock,
shares or certificates of beneficial
interest of trusts, limited partnership
interests, American Depositary Receipts,
and their equivalents.6 This suspension
is currently scheduled to last until
January 16, 2009, to provide temporary
relief to companies from the application
of these requirements during a period in
which the financial markets face almost
unprecedented turmoil, resulting in a
crisis in investor confidence and
concerns about the proper functioning
of the securities markets.7
4 Nasdaq’s continued listing requirements relating
to bid price are set forth in Rules 4310(c)(4),
4320(e)(2)(E)(ii), 4450(a)(5), 4450(b)(4), and
4450(h)(3) and the related compliance periods are
set forth in Rules 4310(c)(8)(D), 4320(e)(2)(E)(ii),
and 4450(e)(2). Under these rules, a security is
considered deficient if it fails to achieve at least a
$1 closing bid price for a period of 30 consecutive
business days. Once deficient, Capital Market
issuers are provided one automatic 180-day period
to regain compliance. Thereafter, these issuers can
receive an additional 180-day compliance period if
they comply with all Capital Market initial
inclusion requirements except bid price. Global
Market issuers are also provided one automatic 180day period to regain compliance, after which they
can transfer to the Capital Market, if they comply
with all Capital Market initial inclusion
requirements except bid price, to take advantage of
the second 180-day compliance period. A company
can regain compliance by achieving a $1 closing bid
price for a minimum of ten consecutive business
days.
5 Nasdaq’s continued listing requirements relating
to market value of publicly held shares are set forth
in Rules 4310(c)(7), 4320(e)(5), 4450(a)(2),
4450(b)(3) and 4450(h)(2) and the related
compliance periods are set forth in Rules
4310(c)(8)(B) and 4450(e)(1). Under these rules, a
security is considered deficient if it fails to achieve
the minimum market value of publicly held shares
requirement for a period of 30 consecutive business
days. Thereafter, companies have a compliance
period of 90 calendar days to achieve compliance
by meeting the applicable standard for a minimum
of ten consecutive business days.
6 Securities Exchange Act Release No. 58809
(October 17, 2008), 73 FR 63222 (October 23, 2008)
(SR–NASDAQ–2008–082). One comment was
submitted on this proposal by Alan F. Eisenberg,
Executive Vice President, the Biotechnology
Industry Organization. This comment supported the
suspension and ‘‘any efforts by the Commission and
NASDAQ to extend [the suspension], as necessary,
beyond the termination date of January 16, 2009.’’
7 See, e.g., Securities Exchange Act Release No.
58588 (September 18, 2008), 73 FR 55174
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Market conditions have not improved
since the suspension began and, in fact,
both the number of securities trading
below $1 and the number of securities
trading between $1 and $2 on Nasdaq
has increased. Nasdaq continues to
believe that there was no fundamental
change in the underlying business
model or prospects for many of these
companies, and that a decline in general
investor confidence has resulted in
depressed pricing for companies that
otherwise remain suitable for continued
listing. These same conditions continue
to make it difficult for companies to
successfully implement a plan to regain
compliance with the price or market
value of publicly held shares tests.
Given these extraordinary market
conditions, Nasdaq has determined that
it is appropriate to continue the
temporary suspension of the bid price
and market value of publicly held
shares requirements for an additional
three months, until April 19, 2009.
Under this proposal, companies would
not be cited for new bid price or market
value of publicly held shares
deficiencies during the suspension
period, and the time allowed to
companies already in a compliance
period or in the hearings process for bid
price or market value of publicly held
shares deficiencies would remain
suspended with respect to those
requirements.8 Following the temporary
suspension, any new deficiencies with
the bid price or market value of publicly
held shares requirements would be
determined using data starting on April
20, 2009.9 When the suspension expires,
companies that were in a compliance
period as of October 16, 2008, when the
suspension first began, would receive
the balance of any pending compliance
(September 24, 2008) (‘‘The Commission is aware
of the continued potential of sudden and excessive
fluctuations of securities prices and disruption in
the functioning of the securities markets that could
threaten fair and orderly markets. Given the
importance of confidence in our financial markets
as a whole, we have also become concerned about
sudden and unexplained declines in the prices of
securities. Such price declines can give rise to
questions about the underlying financial condition
of an issuer, which in turn can create a crisis of
confidence without a fundamental underlying basis.
This crisis of confidence can impair the liquidity
and ultimate viability of an issuer, with potentially
broad market consequences.’’).
8 Nasdaq would continue to identify on its Web
site and in its daily data feed to vendors those
companies in a compliance period or in the
hearings process as not satisfying the continued
listing standards, unless the company regains
compliance during the suspension. A company
would continue to be subject to delisting for failure
to comply with other listing requirements.
9 Nasdaq would not consider the bid price or
market value of publicly held shares for the period
before or during the suspension with respect to a
company that was not yet non-compliant with those
requirements at the start of the suspension.
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]]>Agencies
[Federal Register Volume 74, Number 10 (Thursday, January 15, 2009)]
[Notices]
[Pages 2638-2640]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-777]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59213; File No. SR-CBOE-2008-134]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Temporary Membership Status and Interim Trading
Permit Access Fees
January 7, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 31, 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
parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to adjust (i) the monthly access fee for persons
granted temporary CBOE membership status (``Temporary Members'')
pursuant to Interpretation and Policy .02 under CBOE Rule 3.19 (``Rule
3.19.02'') and (ii) the monthly access fee for Interim Trading Permit
(``ITP'') holders under CBOE Rule 3.27. 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'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 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 current access fee for Temporary Members under Rule 3.19.02 \2\
and the current access fee for ITP holders under Rule 3.27 \3\ are both
$9,500 per month. Both access fees are currently set at the indicative
lease rate (as defined below) for December 2008. The Exchange proposes
to adjust both access fees effective at the beginning of January 2009
to be equal to the indicative lease rate for January 2009 (which is
$10,175). Specifically, the Exchange proposes to revise both the
Temporary Member access fee and the ITP access fee to be $10,175 per
month commencing on January 1, 2009.
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\2\ See Securities Exchange Act Release No. 56458 (September 18,
2007), 72 FR 54309 (September 24, 2007) (SR-CBOE-2007-107) for a
description of the Temporary Membership status under Rule 3.19.02.
\3\ See Securities Exchange Act Release No. 58178 (July 17,
2008), 73 FR 42634 (July 22, 2008) (SR-CBOE-2008-40) for a
description of the Interim Trading Permits under Rule 3.27.
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[[Page 2639]]
The indicative lease rate is defined under Rule 3.27(b) as the
highest clearing firm floating monthly rate \4\ of the CBOE Clearing
Members that assist in facilitating at least 10% of the CBOE
transferable membership leases.\5\ The Exchange determined the
indicative lease rate for January 2009 by polling each of these
Clearing Members and obtaining the clearing firm floating monthly rate
designated by each of these Clearing Members for that month.
---------------------------------------------------------------------------
\4\ Rule 3.27(b) defines the clearing firm floating monthly rate
as the floating monthly rate that a Clearing Member designates, in
connection with transferable membership leases that the Clearing
Member assisted in facilitating, for leases that utilize that
monthly rate.
\5\ The concepts of an indicative lease rate and of a clearing
firm floating month rate were previously utilized in the CBOE rule
filings that set and adjusted the Temporary Member access fee. Both
concepts are also codified in Rule 3.27(b) in relation to ITPs.
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The Exchange used the same process to set the proposed Temporary
Member and ITP access fees that it used to set the current Temporary
Member and ITP access fees. The only difference is that the Exchange
used clearing firm floating monthly rate information for the month of
January 2009 to set the proposed access fees (instead of clearing firm
floating monthly rate information for the month of December 2008 as was
used to set the current access fees) in order to take into account
changes in clearing firm floating monthly rates for the month of
January 2009.
The Exchange believes that the process used to set the proposed
Temporary Member access fee and the proposed Temporary Member access
fee itself are appropriate for the same reasons set forth in CBOE rule
filing SR-CBOE-2008-12 with respect to the original Temporary Member
access fee.\6\ Similarly, the Exchange believes that the process used
to set the proposed ITP access fee and the proposed ITP access fee
itself are appropriate for the same reasons set forth in CBOE rule
filing SR-CBOE-2008-77 with respect to the original ITP access fee.\7\
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\6\ See Securities Exchange Act Release No. 57293 (February 8,
2008), 73 FR 8729 (February 14, 2008) (SR-CBOE-2008-12), which
established the original Temporary Member access fee, for detail
regarding the rationale in support of the original Temporary Member
access fee and the process used to set that fee, which is also
applicable to this proposed change to the Temporary Member access
fee as well.
\7\ See Securities Exchange Act Release No. 58200 (July 21,
2008), 73 FR 43805 (July 28, 2008) (SR-CBOE-2008-77), which
established the original ITP access fee, for detail regarding the
rationale in support of the original ITP access fee and the process
used to set that fee, which is also applicable to this proposed
change to the ITP access fee as well.
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Each of the proposed access fees will remain in effect until such
time either that the Exchange submits a further rule filing pursuant to
Section 19(b)(3)(A)(ii) of the Act \8\ to modify the applicable access
fee or the applicable status (i.e., the Temporary Membership status or
the ITP status) is terminated. Accordingly, the Exchange may, and
likely will, further adjust the proposed access fees in the future if
the Exchange determines that it would be appropriate to do so taking
into consideration lease rates for transferable CBOE memberships
prevailing at that time.
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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
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The procedural provisions of the CBOE Fee Schedule related to the
assessment of each proposed access fee are not proposed to be changed
and will remain the same as the current procedural provisions relating
to the assessment of that access fee.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\9\ in general, and furthers the
objectives of Section 6(b)(4) of the Act,\10\ in particular, in that it
is designed to provide for the equitable allocation of reasonable dues,
fees, and other charges among persons using its facilities.
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\9\ 15 U.S.C. 78f(b).
\10\ 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 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
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 \11\ and subparagraph (f)(2)
of Rule 19b-4\12\ 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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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-CBOE-2008-134 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-2008-134. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the 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 No. SR-CBOE-2008-134 and should be
submitted on or before February 5, 2009.
[[Page 2640]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Florence E. Harmon,
Deputy Secretary.
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\13\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-777 Filed 1-14-09; 8:45 am]
BILLING CODE 8011-01-P
