Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Cancellation Fees, 16243-16245 [E9-7998]
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dwashington3 on PROD1PC60 with NOTICES
Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Notices
were influenced by the investment by
the Fund of Funds in the Unaffiliated
Management Company. The Board of
the Unaffiliated Management Company
will consider, among other things: (a)
Whether or not the purchases were
consistent with the investment
objectives and policies of the
Unaffiliated Management Company; (b)
how the performance of securities
purchased in an Affiliated Underwriting
compares to the performance of
comparable securities purchased during
a comparable period of time in
underwritings other than Affiliated
Underwritings or to a benchmark such
as a comparable market index; and (c)
whether or not the amount of securities
purchased by the Unaffiliated
Management Company in Affiliated
Underwritings and the amount
purchased directly from an
Underwriting Affiliate have changed
significantly from prior years. The
Board of the Unaffiliated Management
Company will take any appropriate
actions based on its review, including,
if appropriate, the institution of
procedures designed to assure that
purchases of securities in Affiliated
Underwritings are in the best interest of
shareholders.
7. Each Unaffiliated Management
Company will maintain and preserve
permanently in an easily accessible
place a written copy of the procedures
described in the preceding condition,
and any modifications to such
procedures, and will maintain and
preserve for a period of not less than six
years from the end of the fiscal year in
which any purchase from an Affiliated
Underwriting occurred, the first two
years in an easily accessible place, a
written record of each purchase of
securities in an Affiliated Underwriting
once an investment by a Fund of Funds
in the securities of an Unaffiliated
Management Company exceeds the limit
of section 12(d)(1)(A)(i) of the Act,
setting forth the: (a) Party from whom
the securities were acquired; (b) identity
of the underwriting syndicate’s
members; (c) terms of the purchase; and
(d) information or materials upon which
the determinations of the Board of the
Unaffiliated Management Company
were made.
8. Prior to its investment in shares of
an Unaffiliated Management Company
in excess of the limit set forth in section
12(d)(1)(A)(i) of the Act, the Fund of
Funds and the Unaffiliated Fund will
execute a Participation Agreement
stating, without limitation, that their
boards of directors or trustees and their
investment advisers understand the
terms and conditions of the order and
agree to fulfill their responsibilities
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Jkt 217001
under the order. At the time of its
investment in shares of an Unaffiliated
Management Company in excess of the
limit set forth in section 12(d)(1)(A)(i),
a Fund of Funds will notify the
Unaffiliated Management Company of
the investment. At such time, the Fund
of Funds will also transmit to the
Unaffiliated Management Company a
list of the names of each Fund of Funds
Affiliate and Underwriting Affiliate. The
Fund of Funds will notify the
Unaffiliated Management Company of
any changes to the list as soon as
reasonably practicable after a change
occurs. The Unaffiliated Management
Company and the Fund of Funds will
maintain and preserve a copy of the
order, the Participation Agreement, and
the list with any updated information
for the duration of the investment and
for a period of not less than six years
thereafter, the first two years in an
easily accessible place.
9. Before approving any advisory
contract under section 15 of the Act, the
Board of each Fund of Funds, including
a majority of the Independent Trustees,
shall find that the advisory fees charged
under the advisory contract are based on
services provided that are in addition to,
rather than duplicative of, services
provided under the advisory contract(s)
of any Underlying Fund in which the
Fund of Funds may invest. Such
finding, and the basis upon which the
finding was made, will be recorded fully
in the minute books of the appropriate
Fund of Funds.
10. Each Manager will waive fees
otherwise payable to it by a Fund of
Funds in an amount at least equal to any
compensation (including fees received
pursuant to any plan adopted by an
Unaffiliated Fund pursuant to rule 12b–
1 under the Act) received from an
Unaffiliated Fund by the Manager, or an
affiliated person of the Manager, other
than any advisory fees paid to the
Manager or its affiliated person by the
Unaffiliated Fund, in connection with
the investment by the Fund of Funds in
the Unaffiliated Fund. Any Sub-Adviser
will waive fees otherwise payable to the
Sub-Adviser, directly or indirectly, by
the Fund of Funds in an amount at least
equal to any compensation received by
the Sub-Adviser, or an affiliated person
of the Sub-Adviser, from an Unaffiliated
Fund, other than any advisory fees paid
to the Sub-Adviser or its affiliated
person by the Unaffiliated Fund, in
connection with the investment by the
Fund of Funds in the Unaffiliated
Underlying Fund made at the direction
of the Sub-Adviser. In the event that the
Sub-Adviser waives fees, the benefit of
the waiver will be passed through to the
Fund of Funds.
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Fmt 4703
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16243
11. With respect to Registered
Separate Accounts that invest in a Fund
of Funds, no sales load will be charged
at the Fund of Funds level or at the
Underlying Fund level. Other sales
charges and service fees, as defined in
NASD Conduct Rule 2830, if any, will
only be charged at the Fund of Funds
level or at the Underlying Fund level,
not both. With respect to other
investments in a Fund of Funds, any
sales charges and/or service fees
charged with respect to shares of a Fund
of Funds will not exceed the limits
applicable to funds of funds set forth in
NASD Conduct Rule 2830.
12. No Underlying Fund will acquire
securities of any other investment
company or company relying on section
3(c)(1) or 3(c)(7) of the Act in excess of
the limits contained in section
12(d)(1)(A) of the Act, except to the
extent that such Underlying Fund: (a)
Receives securities of another
investment company as a dividend or as
a result of a plan of reorganization of a
company (other than a plan devised for
the purpose of evading section 12(d)(1)
of the Act); or (b) acquires (or is deemed
to have acquired) securities of another
investment company pursuant to
exemptive relief from the Commission
permitting such Underlying Fund to: (i)
Acquire securities of one or more
investment companies for short-term
cash management purposes, or (ii)
engage in interfund borrowing and
lending transactions.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–8068 Filed 4–8–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59690; File No. SR–CBOE–
2009–019]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Cancellation
Fees
April 2, 2009.
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 March 18,
2009, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or the
1 15
2 17
E:\FR\FM\09APN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
09APN1
16244
Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Notices
‘‘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 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
CBOE proposes to amend its Fees
Schedule regarding its cancellation 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.
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. CBOE has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspets of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
dwashington3 on PROD1PC60 with NOTICES
1. Purpose
The Exchange currently charges an
executing clearing member $1.50 for
each cancelled public customer Order
Routing System (‘‘ORS’’) order in excess
of the number of public customer orders
that the executing clearing member
executes in a month for itself or for a
correspondent firm. The purpose of the
fee is to ease order backlogs on ORS and
related systems and help the Exchange
recoup its increased costs in processing
increased order flow traffic. The fee is
not charged if less than 500 public
customer orders are cancelled in a
month by the executing clearing
member for itself or for a correspondent
firm. The Exchange aggregates and
counts as one executed order for
purposes of the fee all public customer
options orders from the same executing
clearing member for itself or for a
correspondent firm that are executed in
the same series on the same side of the
market at the same price within a 30
second period. The following ORS order
activity is exempt from the fee: (i)
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15:28 Apr 08, 2009
Jkt 217001
Cancelled ORS orders that improve the
Exchange’s prevailing bid-offer (BBO)
market when received; (ii) fill and
cancellation activity occurring within
the first one minute of trading following
the opening of each options class; (iii)
complex order fills and cancels; (iv)
unfilled Fill-or-Kill (‘‘FOK’’) orders; (v)
unfilled Immediate-or-Cancel (‘‘IOC’’)
orders, and (vi) fill and cancellation
activity in Mini-SPX Index Options
(XSP).
The level of canceled orders
continues to remain quite high. Some
customers are seeking to avoid the fee
by executing large quantities of small
orders in out-of-the-money options to
offset their cancellation activity in more
actively traded options.
The Exchange proposes the following
changes to the fee to help ease system
congestion resulting from such activity.
First, the Exchange proposes to amend
the manner by which it calculates the
fee by aggregating together and counting
as one cancelled order orders that are
executed at the same price in the same
underlying symbol, instead of
aggregating orders that are executed at
the same price in the same series on the
same side of the market. The Exchange
believes this change should prevent
customers from breaking up their orders
into a range of options series in the
same underlying symbol that trade at
the same premium in order to avoid the
fee.
Second, the Exchange proposes to
extend the current 30 second
aggregation interval to 300 seconds. The
Exchange believes that extending the
aggregation interval to 300 seconds
should result in a reduction in the
number of orders that are sent to create
offsetting trades.
Third, the Exchange proposes to
increase the fee from $1.50 to $2.00 per
cancelled order. The proposed
cancellation fee is similar to the
cancellation fee of the International
Securities Exchange.3
In addition, the Exchange proposes to
eliminate the exemption for fill and
cancellation activity in XSP options.
The Exchange had exempted activity in
XSP options from the fee for an
indefinite time period in conjunction
with a marketing ‘‘re-launch’’ of the XSP
product.4 The Exchange has reevaluated
the exemption and determined to
3 See Securities Exchange Act Release Nos. 58692
(September 30, 2008), 73 FR 59006 (October 8,
2008); 58898 (November 4, 2008), 73 FR 67238
(November 13, 2008); and 59072 (December 10,
2008), 73 FR 76689 (December 17, 2008).
4 See Securities Exchange Act Release No. 56937
(December 10, 2007), 72 FR 71465 (December 17,
2007).
PO 00000
Frm 00069
Fmt 4703
Sfmt 4703
reapply the fee to activity in XSP
options.
Finally, the Exchange proposes to
change the name of the fee from ‘‘ORS
(Order Routing System) Cancellation
Fee’’ to ‘‘OHS (Order Handling System)
Cancellation Fee’’, to reflect the fact that
the ORS functionality has been replaced
by new OHS functionality built on the
CBOEdirect platform.
The proposed fee changes will be
operative on April 1, 2009.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) of the 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 CBOE members and other
persons using its facilities. In particular,
the Exchange believes the proposed fee
change is justified to address the current
level of cancellation activity and its
effect on system congestion and
Exchange systems costs.
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.
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 charged imposed by the
Exchange, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 7 and Rule 19b–4(f)(2) 8 thereunder.
At any time within 60 days of the filing
of the proposed rule change the
Commission may summarily abrogate
such proposed 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. 78f(b).
U.S.C. 78f(b)(4).
7 15 U.S.C. 78s(b)(3)(A).
8 17 CFR 19b–4(f)(2).
6 15
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09APN1
Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Notices
III. 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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–7998 Filed 4–8–09; 8:45 am]
BILLING CODE
SECURITIES AND EXCHANGE
COMMISSION
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–2009–019 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.
[Release No. 34–59694; File No. SR–CBOE–
2009–023]
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
April 2, 2009.
dwashington3 on PROD1PC60 with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
March 31, 2009, the Chicago Board
Options Exchange, Incorporated
All submissions should refer to File
(‘‘CBOE’’ or the ‘‘Exchange’’) filed with
Number SR–CBOE–2009–019. This file
the Securities and Exchange
number should be included on the
subject line if e-mail is used. To help the Commission (‘‘Commission’’) the
proposed rule change as described in
Commission process and review your
Items I, II, and III below, which Items
comments more efficiently, please use
only one method. The Commission will have been prepared by the CBOE. The
post all comments on the Commission’s Commission is publishing this notice to
solicit comments on the proposed rule
Internet Web site (https://www.sec.gov/
change from interested parties.
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 the filing also will be available
for inspection and copying at the
principal office of CBOE. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly.
All submissions should refer to File
Number SR–CBOE–2009–019 and
should be submitted on or before April
30, 2009.
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15:28 Apr 08, 2009
Jkt 217001
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
9 17
1 15
PO 00000
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
Frm 00070
Fmt 4703
Sfmt 4703
16245
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 $9,809 per month.
Both access fees are currently set at the
indicative lease rate (as defined below)
for March 2009. The Exchange proposes
to adjust both access fees effective at the
beginning of April 2009 to be equal to
the indicative lease rate for April 2009
(which is $8,817). Specifically, the
Exchange proposes to revise both the
Temporary Member access fee and the
ITP access fee to be $8,817 per month
commencing on April 1, 2009.
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 April 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 April 2009 to set the proposed access
fees (instead of clearing firm floating
monthly rate information for the month
of March 2009 as was used to set the
current access fees) in order to take into
account changes in clearing firm
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.
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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]]>Agencies
[Federal Register Volume 74, Number 67 (Thursday, April 9, 2009)]
[Notices]
[Pages 16243-16245]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-7998]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59690; File No. SR-CBOE-2009-019]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Cancellation Fees
April 2, 2009.
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 March 18, 2009, the Chicago Board Options Exchange,
Incorporated (``CBOE'' or the
[[Page 16244]]
``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 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
CBOE proposes to amend its Fees Schedule regarding its cancellation
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.
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. CBOE has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspets 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 currently charges an executing clearing member $1.50
for each cancelled public customer Order Routing System (``ORS'') order
in excess of the number of public customer orders that the executing
clearing member executes in a month for itself or for a correspondent
firm. The purpose of the fee is to ease order backlogs on ORS and
related systems and help the Exchange recoup its increased costs in
processing increased order flow traffic. The fee is not charged if less
than 500 public customer orders are cancelled in a month by the
executing clearing member for itself or for a correspondent firm. The
Exchange aggregates and counts as one executed order for purposes of
the fee all public customer options orders from the same executing
clearing member for itself or for a correspondent firm that are
executed in the same series on the same side of the market at the same
price within a 30 second period. The following ORS order activity is
exempt from the fee: (i) Cancelled ORS orders that improve the
Exchange's prevailing bid-offer (BBO) market when received; (ii) fill
and cancellation activity occurring within the first one minute of
trading following the opening of each options class; (iii) complex
order fills and cancels; (iv) unfilled Fill-or-Kill (``FOK'') orders;
(v) unfilled Immediate-or-Cancel (``IOC'') orders, and (vi) fill and
cancellation activity in Mini-SPX Index Options (XSP).
The level of canceled orders continues to remain quite high. Some
customers are seeking to avoid the fee by executing large quantities of
small orders in out-of-the-money options to offset their cancellation
activity in more actively traded options.
The Exchange proposes the following changes to the fee to help ease
system congestion resulting from such activity. First, the Exchange
proposes to amend the manner by which it calculates the fee by
aggregating together and counting as one cancelled order orders that
are executed at the same price in the same underlying symbol, instead
of aggregating orders that are executed at the same price in the same
series on the same side of the market. The Exchange believes this
change should prevent customers from breaking up their orders into a
range of options series in the same underlying symbol that trade at the
same premium in order to avoid the fee.
Second, the Exchange proposes to extend the current 30 second
aggregation interval to 300 seconds. The Exchange believes that
extending the aggregation interval to 300 seconds should result in a
reduction in the number of orders that are sent to create offsetting
trades.
Third, the Exchange proposes to increase the fee from $1.50 to
$2.00 per cancelled order. The proposed cancellation fee is similar to
the cancellation fee of the International Securities Exchange.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release Nos. 58692 (September
30, 2008), 73 FR 59006 (October 8, 2008); 58898 (November 4, 2008),
73 FR 67238 (November 13, 2008); and 59072 (December 10, 2008), 73
FR 76689 (December 17, 2008).
---------------------------------------------------------------------------
In addition, the Exchange proposes to eliminate the exemption for
fill and cancellation activity in XSP options. The Exchange had
exempted activity in XSP options from the fee for an indefinite time
period in conjunction with a marketing ``re-launch'' of the XSP
product.\4\ The Exchange has reevaluated the exemption and determined
to reapply the fee to activity in XSP options.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 56937 (December 10,
2007), 72 FR 71465 (December 17, 2007).
---------------------------------------------------------------------------
Finally, the Exchange proposes to change the name of the fee from
``ORS (Order Routing System) Cancellation Fee'' to ``OHS (Order
Handling System) Cancellation Fee'', to reflect the fact that the ORS
functionality has been replaced by new OHS functionality built on the
CBOEdirect platform.
The proposed fee changes will be operative on April 1, 2009.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) of the 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 CBOE members and other persons using its
facilities. In particular, the Exchange believes the proposed fee
change is justified to address the current level of cancellation
activity and its effect on system congestion and Exchange systems
costs.
---------------------------------------------------------------------------
\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.
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 charged imposed by the Exchange, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-
4(f)(2) \8\ thereunder. At any time within 60 days of the filing of the
proposed rule change the Commission may summarily abrogate such
proposed 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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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 19b-4(f)(2).
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[[Page 16245]]
III. 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-2009-019 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-2009-019. 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 the filing also will be available for
inspection and copying at the principal office of CBOE. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly.
All submissions should refer to File Number SR-CBOE-2009-019 and
should be submitted on or before April 30, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-7998 Filed 4-8-09; 8:45 am]
BILLING CODE
