Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Marketing Fee Program, 40859-40861 [E9-19376]
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Federal Register / Vol. 74, No. 155 / Thursday, August 13, 2009 / Notices
objectives of Section 6(b)(5) of the Act 17
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest, by
providing for automatic allocation to an
Exchange specialist of options that are
related to each other.
Electronic Comments
B. Self-Regulatory Organization’s
Statement on Burden on Competition
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 18 and Rule 19b–
4(f)(6) thereunder.19
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
erowe on DSK5CLS3C1PROD with NOTICES
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:
17 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A).
19 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. Phlx has satisfied this requirement.
18 15
VerDate Nov<24>2008
15:29 Aug 12, 2009
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• 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–Phlx–2009–62 on the
subject line.
Paper Comments
40859
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60454; File No. SR–CBOE–
2009–054]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the Marketing
Fee Program
August 6, 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 July 31,
2009, the Chicago Board Options
All submissions should refer to File
Exchange, Incorporated (‘‘CBOE’’ or the
Number SR–Phlx–2009–62. This file
‘‘Exchange’’) filed with the Securities
number should be included on the
and Exchange Commission
subject line if e-mail is used. To help the
(‘‘Commission’’) the proposed rule
Commission process and review your
change as described in Items I, II, and
comments more efficiently, please use
III below, which Items have been
only one method. The Commission will prepared by the CBOE. CBOE has
post all comments on the Commission’s designated this proposal as one
Internet Web site (https://www.sec.gov/
establishing or changing a due, fee, or
rules/sro.shtml). Copies of the
other charge applicable only to a
submission, all subsequent
member under Section 19(b)(3)(A)(ii) of
amendments, all written statements
the Act 3 and Rule 19b–4(f)(2)
with respect to the proposed rule
thereunder,4 which renders the proposal
change that are filed with the
effective upon filing with the
Commission, and all written
Commission. The Commission is
communications relating to the
publishing this notice to solicit
proposed rule change between the
comments on the proposed rule change
Commission and any person, other than from interested parties.
those that may be withheld from the
I. Self-Regulatory Organization’s
public in accordance with the
Statement of the Terms of Substance of
provisions of 5 U.S.C. 552, will be
the Proposed Rule Change
available for inspection and copying in
CBOE proposes to amend its
the Commission’s Public Reference
Marketing Fee Program. The text of the
Room, 100 F Street, NE., Washington,
proposed rule change is available on the
DC 20549, on official business days
Exchange’s Web site (https://
between the hours of 10 a.m. and 3 p.m.
www.cboe.org/Legal/), at the Exchange’s
Copies of such filing also will be
Office of the Secretary, and at the
available for inspection and copying at
Commission.
the principal office of the Exchange. All
II. Self-Regulatory Organization’s
comments received will be posted
Statement of the Purpose of, and
without change; the Commission does
Statutory Basis for, the Proposed Rule
not edit personal identifying
Change
information from submissions. You
should submit only information that
In its filing with the Commission,
you wish to make publicly available. All CBOE included statements concerning
the purpose of and basis for the
submissions should refer to File
proposed rule change and discussed any
Number SR–Phlx–2009–62 and should
comments it received on the proposed
be submitted on or before September 3,
rule change. The text of these statements
2009.
may be examined at the places specified
For the Commission, by the Division of
in Item IV below. The CBOE has
Trading and Markets, pursuant to delegated
prepared summaries, set forth in
authority.20
sections (A), (B), and (C) below, of the
Florence E. Harmon,
most significant aspects of such
Deputy Secretary.
statements.
[FR Doc. E9–19374 Filed 8–12–09; 8:45 am]
1 15
BILLING CODE 8010–01–P
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
2 17
20 17
PO 00000
CFR 200.30–3(a)(12).
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40860
Federal Register / Vol. 74, No. 155 / Thursday, August 13, 2009 / Notices
erowe on DSK5CLS3C1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
(a) Purpose
Currently, CBOE’s marketing fee is
assessed only on transactions of MarketMakers, e-DPMs, and DPMs, resulting
from (i) orders for less than 1,000
contracts from payment accepting firms,
or (ii) customer orders for less than
1,000 contracts that have designated a
‘‘Preferred Market-Maker’’ under CBOE
Rule 8.13. CBOE proposes to amend its
marketing fee program such that the fee
will be assessed on transactions of
Market-Makers, e-DPMs, and DPMs
resulting from customer orders for less
than 1,000 contracts from payment
accepting firms. CBOE believes that
limiting the collection of the fee to
transactions resulting from customer
orders for less than 1,000 contracts from
payment accepting firms is appropriate
and will continue to allow its DPMs to
compete for order flow.5
CBOE will continue to assess the fee
on transactions resulting from customer
orders for less than 1,000 contracts that
have designated a ‘‘Preferred MarketMaker’’ under CBOE Rule 8.13. CBOE
proposes to implement this change to
the marketing fee program beginning on
August 1, 2009.
Additionally, CBOE proposes to
amend the marketing fee program to
eliminate a limitation pertaining to the
manner in which DPMs use the funds
made available to them to attract order
flow to CBOE. Currently, the funds
made available to DPMs can only be
used to attract orders in the option
classes at the trading station where the
fee is assessed. CBOE imposed this
limitation at a time when CBOE MarketMakers’ appointments consisted of
those option classes located at a
particular trading station. MarketMakers were required by rule to be
physically present in the trading station
in order to quote electronically into the
classes at that station. As a result (and
as discussed in CBOE’s rule filing SR–
CBOE–2004–58; Rel. No. 34–51429),
Market-Makers effectively had a ‘‘onestation’’ appointment.
CBOE subsequently amended its rules
to provide the same flexibility to its onfloor Market-Makers that its former
Remote Market-Makers (‘‘RMM’’) had.
(CBOE eliminated its RMM program a
couple years ago and all former RMMs
were designated as Market-Makers with
5 CBOE notes that in the past, its marketing fee
was assessed on transactions resulting from
customer orders. See Securities Exchange Act Rel.
No. 34–50736 (11/24/04), 69 FR 69966 (12/1/04)
(SR–CBOE–2004–68).
VerDate Nov<24>2008
15:29 Aug 12, 2009
Jkt 217001
the same trading privileges.) Today, as
Rule 8.3(c)(i) makes clear, MarketMakers create customized class
appointments, called ‘‘virtual trading
crowd’’ appointments, which allow
Market-Makers to quote electronically
into various option classes irrespective
of their geographic location on CBOE’s
trading floor. Additionally, as Rule
8.3(c)(ii) states, Market-Makers have an
appointment to trade in open outcry in
all Hybrid classes traded on CBOE,
meaning that they are free to go from
trading crowd to trading crowd to trade
in open outcry in any Hybrid option
class. Market-Makers are not required to
be on the trading floor to submit
electronic quotations into their
appointed classes (see Rule 8.3(c)(v))
and also are permitted to enter orders
electronically in non-appointed option
classes (see Rule 8.7(b)(iii)B). Also,
CBOE has established Off-Floor DPMs,
and the option classes formerly located
at one trading station can be relocated
among various trading stations—even
though the same DPM organization
continues to function now as the OffFloor DPM. As a result of all of these
changes, this limitation has become
unnecessary.
For an example of this proposed
change, assume the same DPM operated
at two different trading stations on
CBOE’s trading floor: Station 1 and
Station 5. If $10,000 was generated from
the marketing fee in a given month from
transactions in option classes located at
Station 1 and $15,000 from Station 5,
under CBOE’s proposed change a total
of $25,000 would be made available to
the DPM for the month, and the DPM
could use the funds to attract order flow
in the option classes located at Stations
1 and 5. (This example assumes none of
these funds were made available to
Preferred Market-Makers.) CBOE
believes that this is fair and reasonable
in light of the manner in which MarketMakers function today on CBOE as
described above.
Finally, CBOE proposes to delete
reference in footnote 6 to two option
classes it no longer trades: BXO and
RUH.
CBOE is not amending its marketing
fee program in any other respects.
(b) Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 6 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 7 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees, and
6 15
7 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
Frm 00054
Fmt 4703
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 [sic] 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 8 and
subparagraph (f)(2) of Rule 19b–4 9
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–2009–054 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–2009–054. This file
number should be included on the
subject line if e-mail is used. To help the
8 15
9 17
Sfmt 4703
E:\FR\FM\13AUN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
13AUN1
Federal Register / Vol. 74, No. 155 / Thursday, August 13, 2009 / Notices
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 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 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–
2009–054 and should be submitted on
or before September 3, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–19376 Filed 8–12–09; 8:45 am]
BILLING CODE 8010–01–P
[Release No. 34–60452; File No. SR–
NYSEAmex–2009–54]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Implementing Its
Schedule of Fees and Charges for
Exchange Services
August 5, 2009.
erowe on DSK5CLS3C1PROD with NOTICES
Pursuant to Section
of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on July 31,
2009, NYSE Amex LLC (‘‘NYSE Amex’’
or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I, II, and
10 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
VerDate Nov<24>2008
15:29 Aug 12, 2009
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Schedule of Fees and Charges for
Exchange Services (‘‘Schedule’’) by
waiving the Cancellation Fee until
November 1, 2009. The Schedule is
attached as Exhibit 5 to the 19b–4 form.
A copy of this filing is available on the
Exchange’s Web site at https://
www.nyse.com, at the Exchange’s
principal office 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, 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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
19(b)(1) 1
III below, which Items have been
prepared by the Exchange. The
Exchange filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 4 and Rule 19b–4(f)(2) thereunder,5
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.
1. Purpose
The Exchange proposes to waive the
Cancellation Fee until November 1,
2009. The Cancellation Fee was
scheduled to take effect on August 1,
2009, however, the required
development to Exchange billing
systems has not been completed. Those
system enhancements are scheduled to
be implemented for the November
billing cycle that begins on November 1,
2009.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with Section 6(b)
of the Act, in general, and Section
6(b)(4), in particular, in that it provides
for the equitable allocation of dues, fees
4 15
5 17
Jkt 217001
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
Frm 00055
Fmt 4703
and other charges among its members
and other market participants that use
the trading facilities of NYSE Amex
Options. Under this proposal, all
similarly situated members and other
Exchange participants of NYSE Amex
Options will be charged the same
reasonable dues, fees and other charges.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 6 of the Act and
subparagraph (f)(2) of Rule 19b–4 7
thereunder, because it establishes a due,
fee, or other charge imposed by the
NYSE Amex.
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–NYSEAmex–2009–54 on
the subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
6 15
7 17
Sfmt 4703
40861
E:\FR\FM\13AUN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
13AUN1
]]>Agencies
[Federal Register Volume 74, Number 155 (Thursday, August 13, 2009)]
[Notices]
[Pages 40859-40861]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-19376]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60454; File No. SR-CBOE-2009-054]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Amend the Marketing Fee Program
August 6, 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 July 31, 2009, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or the ``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.
CBOE has designated this proposal as one establishing or changing a
due, fee, or other charge applicable only to a member under Section
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\
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 parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to amend its Marketing Fee Program. 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.
[[Page 40860]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
(a) Purpose
Currently, CBOE's marketing fee is assessed only on transactions of
Market-Makers, e-DPMs, and DPMs, resulting from (i) orders for less
than 1,000 contracts from payment accepting firms, or (ii) customer
orders for less than 1,000 contracts that have designated a ``Preferred
Market-Maker'' under CBOE Rule 8.13. CBOE proposes to amend its
marketing fee program such that the fee will be assessed on
transactions of Market-Makers, e-DPMs, and DPMs resulting from customer
orders for less than 1,000 contracts from payment accepting firms. CBOE
believes that limiting the collection of the fee to transactions
resulting from customer orders for less than 1,000 contracts from
payment accepting firms is appropriate and will continue to allow its
DPMs to compete for order flow.\5\
---------------------------------------------------------------------------
\5\ CBOE notes that in the past, its marketing fee was assessed
on transactions resulting from customer orders. See Securities
Exchange Act Rel. No. 34-50736 (11/24/04), 69 FR 69966 (12/1/04)
(SR-CBOE-2004-68).
---------------------------------------------------------------------------
CBOE will continue to assess the fee on transactions resulting from
customer orders for less than 1,000 contracts that have designated a
``Preferred Market-Maker'' under CBOE Rule 8.13. CBOE proposes to
implement this change to the marketing fee program beginning on August
1, 2009.
Additionally, CBOE proposes to amend the marketing fee program to
eliminate a limitation pertaining to the manner in which DPMs use the
funds made available to them to attract order flow to CBOE. Currently,
the funds made available to DPMs can only be used to attract orders in
the option classes at the trading station where the fee is assessed.
CBOE imposed this limitation at a time when CBOE Market-Makers'
appointments consisted of those option classes located at a particular
trading station. Market-Makers were required by rule to be physically
present in the trading station in order to quote electronically into
the classes at that station. As a result (and as discussed in CBOE's
rule filing SR-CBOE-2004-58; Rel. No. 34-51429), Market-Makers
effectively had a ``one-station'' appointment.
CBOE subsequently amended its rules to provide the same flexibility
to its on-floor Market-Makers that its former Remote Market-Makers
(``RMM'') had. (CBOE eliminated its RMM program a couple years ago and
all former RMMs were designated as Market-Makers with the same trading
privileges.) Today, as Rule 8.3(c)(i) makes clear, Market-Makers create
customized class appointments, called ``virtual trading crowd''
appointments, which allow Market-Makers to quote electronically into
various option classes irrespective of their geographic location on
CBOE's trading floor. Additionally, as Rule 8.3(c)(ii) states, Market-
Makers have an appointment to trade in open outcry in all Hybrid
classes traded on CBOE, meaning that they are free to go from trading
crowd to trading crowd to trade in open outcry in any Hybrid option
class. Market-Makers are not required to be on the trading floor to
submit electronic quotations into their appointed classes (see Rule
8.3(c)(v)) and also are permitted to enter orders electronically in
non-appointed option classes (see Rule 8.7(b)(iii)B). Also, CBOE has
established Off-Floor DPMs, and the option classes formerly located at
one trading station can be relocated among various trading stations--
even though the same DPM organization continues to function now as the
Off-Floor DPM. As a result of all of these changes, this limitation has
become unnecessary.
For an example of this proposed change, assume the same DPM
operated at two different trading stations on CBOE's trading floor:
Station 1 and Station 5. If $10,000 was generated from the marketing
fee in a given month from transactions in option classes located at
Station 1 and $15,000 from Station 5, under CBOE's proposed change a
total of $25,000 would be made available to the DPM for the month, and
the DPM could use the funds to attract order flow in the option classes
located at Stations 1 and 5. (This example assumes none of these funds
were made available to Preferred Market-Makers.) CBOE believes that
this is fair and reasonable in light of the manner in which Market-
Makers function today on CBOE as described above.
Finally, CBOE proposes to delete reference in footnote 6 to two
option classes it no longer trades: BXO and RUH.
CBOE is not amending its marketing fee program in any other
respects.
(b) Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \6\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \7\ 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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\6\ 15 U.S.C. 78f(b).
\7\ 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 [sic] 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 \8\ and subparagraph (f)(2)
of Rule 19b-4 \9\ 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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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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-2009-054 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-2009-054. This file
number should be included on the subject line if e-mail is used. To
help the
[[Page 40861]]
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 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 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-2009-054
and should be submitted on or before September 3, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-19376 Filed 8-12-09; 8:45 am]
BILLING CODE 8010-01-P
