Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Options Regulatory Fee, 6677-6678 [E9-2657]
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Federal Register / Vol. 74, No. 26 / Tuesday, February 10, 2009 / Notices
Act of 1934, that trading in the above
listed company is suspended for the
period from 9:30 a.m. EST on February
6, 2009, through 11:59 p.m. EST, on
February 20, 2009.
By the Commission.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E9–2918 Filed 2–6–09; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59355; File No. SR–CBOE–
2009–004]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the Options
Regulatory Fee
February 3, 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 January
30, 2009, the Chicago Board Options
Exchange, Incorporated 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 CBOE. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
erowe on PROD1PC63 with NOTICES
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 Fees Schedule
relating to the Options Regulatory Fee.
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, 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. CBOE has prepared
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Nov<24>2008
14:17 Feb 09, 2009
Jkt 217001
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
(a) Purpose
In October 2008, the Exchange filed a
proposed rule change to eliminate
Registered Representative Fees and
establish a transaction-based ‘‘Options
Regulatory Fee’’ to become effective on
January 1, 2009 (‘‘ORF’’).3 In December
2008, the Exchange filed a proposed
rule change to waive the fee until
February 1, 2009, to allow additional
time for the Exchange and OCC to
implement the procedures to be used by
OCC to bill and collect the ORF.4
The Exchange proposes to again
waive the ORF until March 1, 2009. The
Exchange is waiving the ORF to provide
firms time to put in place appropriate
procedures to implement the fee.
The Exchange notes that it is also in
the process of evaluating the amount of
the ORF to ensure that it does not
experience a regulatory revenue
shortfall as the result of the waiver of
the ORF for the first two months of
2009. If the Exchange determines to
change the ORF rate, it will file a
proposed rule change and provide
members with notice of the rate change
as far in advance of March 1, 2009 as
possible.
(b) Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) of the Securities Exchange Act of
1934 (‘‘Act’’),5 in general, and furthers
the objectives of Section 6(b)(4) 6 of the
Act in particular, in that it is designed
to provide for the equitable allocation of
reasonable dues, fees, and other charges
among its members and other persons
using its facilities. The Exchange
believes it is appropriate to waive the
ORF for February 2009 to allow firms
additional time to put in place
3 See
Securities Exchange Act Release No. 58817
(October 20, 2008), 73 FR 63744 (October 27, 2008).
The ORF is $.0045 per contract and is assessed to
each member for all options transactions executed
by the member that are cleared by The Options
Clearing Corporation (‘‘OCC’’) in the customer range
(i.e., that clear in a customer account at OCC),
excluding Options Intermarket Linkage Plan
(‘‘Linkage’’) orders. The ORF is imposed upon all
such transactions executed by a member, even if
such transactions do not take place on the
Exchange. The ORF is collected indirectly from
members through their clearing firms by OCC on
behalf of the Exchange.
4 See Securities Exchange Act Release No. 59182
(December 30, 2008),
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
6677
appropriate procedures to implement
the fee.
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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 7 and subparagraph (f)(2) of
Rule 19b–4 8 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 rule-comments
@sec.gov. Please include File Number
SR–CBOE–2009–004 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CBOE–2009–004. 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
7 15
8 17
E:\FR\FM\10FEN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
10FEN1
6678
Federal Register / Vol. 74, No. 26 / Tuesday, February 10, 2009 / Notices
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 publicly available. All
submissions should refer to File
Number SR–CBOE–2009–004 and
should be submitted on or before March
3, 2009.
For the Commission, by the Division
of Trading and Markets, pursuant to
delegated authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–2657 Filed 2–9–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59347; File No. SR–ISE–
2009–05]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Eliminate $3 Underlying
Price Requirement for Continued
Listing and Listing of Additional Series
erowe on PROD1PC63 with NOTICES
February 3, 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 February
2, 2009, the International Securities
Exchange, LLC (‘‘ISE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
change as described in Items I and II
below, which Items have been prepared
by ISE. ISE has designated the proposed
rule change as constituting a noncontroversial rule change under Rule
19b–4(f)(6) under the Act,3 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE proposes to amend Rule
503(b) to eliminate the $3 market price
per share requirement from the
Exchange’s requirements for continued
approval for an underlying security. The
Exchange also proposes to amend Rule
503(c) by eliminating the prohibition
against listing additional series of
options on an underlying security at any
time when the price per share of such
underlying security is less than $3. The
text of the proposed rule change is as
follows, with deletions in [brackets] and
additions in italics:
Rule 503. Withdrawal of Approval of
Underlying Securities:
(a) No Change.
(b) Absent exceptional circumstances,
an underlying security will not be
deemed to meet the Exchange’s
requirements for continued approval
whenever any of the following occur:
(1) There are fewer than 6,300,000
shares of the underlying security held
by persons other than those who are
required to report their security
holdings under Section 16(a) of the
Exchange Act.
(2) There are fewer than 1,600 holders
of the underlying security.
(3) The trading volume (in all markets
in which the underlying security is
traded) has been less than 1,800,000
shares in the preceding twelve (12)
months.
(4) [The market price per share of the
underlying security closed below $3 on
the previous trading day as measured by
the closing price reported by the
primary market in which the underlying
security is traded.] Reserved.
(5) The underlying security ceases to
be an ‘‘NMS stock’’ as defined in Rule
600 of Regulation NMS under the
Exchange Act.
(6) If an underlying security is
approved for options listing and trading
under the provisions of Rule 502(c), the
trading volume [and price history] of the
Original Security (as therein defined)
prior to but not after the commencement
of trading in the Restructure Security (as
1 15
VerDate Nov<24>2008
14:17 Feb 09, 2009
3 17
Jkt 217001
PO 00000
CFR 240.19b–4(f)(6).
Frm 00110
Fmt 4703
Sfmt 4703
therein defined), including ‘‘whenissued’’ trading, may be taken into
account in determining whether the
trading volume [and market price]
requirement[s] of (3) [and (4)] of this
paragraph (b) [are] is satisfied.
(c) [In connection with paragraph
(b)(4) of this Rule, the Exchange shall
not open for trading any additional
series of options contracts of the class
covering an underlying security at any
time (including on a next-day,
expiration or intra-day basis) when the
market price per share of such
underlying security closed less than $3
on the last trading day preceding the
day on which such series are added, as
measured by the closing price reported
by the primary market in which the
underlying security trades. In addition
to closing at or above $3 on the last
trading day preceding the day series are
added, the Exchange shall not open for
trading any additional series of options
contracts on an intra-day basis unless
the last reported trade in the primary
market in which the underlying security
trades is at least $3 at the time the
Exchange determines to add the series.
Notwithstanding the above, the
Exchange may add a series if the
additional series is traded on at least
one other registered national securities
exchange and, at the time the additional
series was listed by such other
registered national securities exchange,
it met the $3 market price requirement.]
Reserved.
(d)–(k) No Change.
*
*
*
*
*
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
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 self-regulatory organization 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 purpose of this proposed rule
change is to eliminate the $3 market
price per share requirement from the
Exchange’s requirements for continued
E:\FR\FM\10FEN1.SGM
10FEN1
]]>Agencies
[Federal Register Volume 74, Number 26 (Tuesday, February 10, 2009)]
[Notices]
[Pages 6677-6678]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-2657]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59355; File No. SR-CBOE-2009-004]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to the Options Regulatory Fee
February 3, 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 January 30, 2009, the Chicago Board Options Exchange, Incorporated
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 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 Fees Schedule relating to the
Options Regulatory Fee. 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, 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. 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
(a) Purpose
In October 2008, the Exchange filed a proposed rule change to
eliminate Registered Representative Fees and establish a transaction-
based ``Options Regulatory Fee'' to become effective on January 1, 2009
(``ORF'').\3\ In December 2008, the Exchange filed a proposed rule
change to waive the fee until February 1, 2009, to allow additional
time for the Exchange and OCC to implement the procedures to be used by
OCC to bill and collect the ORF.\4\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 58817 (October 20,
2008), 73 FR 63744 (October 27, 2008). The ORF is $.0045 per
contract and is assessed to each member for all options transactions
executed by the member that are cleared by The Options Clearing
Corporation (``OCC'') in the customer range (i.e., that clear in a
customer account at OCC), excluding Options Intermarket Linkage Plan
(``Linkage'') orders. The ORF is imposed upon all such transactions
executed by a member, even if such transactions do not take place on
the Exchange. The ORF is collected indirectly from members through
their clearing firms by OCC on behalf of the Exchange.
\4\ See Securities Exchange Act Release No. 59182 (December 30,
2008),
---------------------------------------------------------------------------
The Exchange proposes to again waive the ORF until March 1, 2009.
The Exchange is waiving the ORF to provide firms time to put in place
appropriate procedures to implement the fee.
The Exchange notes that it is also in the process of evaluating the
amount of the ORF to ensure that it does not experience a regulatory
revenue shortfall as the result of the waiver of the ORF for the first
two months of 2009. If the Exchange determines to change the ORF rate,
it will file a proposed rule change and provide members with notice of
the rate change as far in advance of March 1, 2009 as possible.
(b) Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Securities Exchange Act of 1934 (``Act''),\5\ in
general, and furthers the objectives of Section 6(b)(4) \6\ of the Act
in particular, in that it is designed to provide for the equitable
allocation of reasonable dues, fees, and other charges among its
members and other persons using its facilities. The Exchange believes
it is appropriate to waive the ORF for February 2009 to allow firms
additional time to put in place appropriate procedures to implement the
fee.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \7\ and subparagraph (f)(2) of Rule 19b-4 \8\
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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 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-2009-004 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2009-004. 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
[[Page 6678]]
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 publicly available. All submissions should refer to
File Number SR-CBOE-2009-004 and should be submitted on or before March
3, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-2657 Filed 2-9-09; 8:45 am]
BILLING CODE 8011-01-P
