Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Options Regulatory Fee, 42719-42721 [E9-20195]
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Federal Register / Vol. 74, No. 162 / Monday, August 24, 2009 / Notices
consistent with the protection of
investors and the public interest, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 16 and Rule 19b–
4(f)(6) thereunder.17
The Exchange has requested that the
Commission waive the 30-day operative
delay so that the proposal may become
operative immediately upon filing. The
Commission has determined that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because such waiver will allow the
Exchange to promptly conform its rule
with the approved FINRA Rule, and will
ensure the elimination of any potential
regulatory gap and that the NYSE Rules
maintain their status as Common Rules
under the Agreement. Therefore, the
Commission designates the proposal
operative upon filing.18
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–NYSE–2009–75 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.
16 15
U.S.C. 78s(b)(3)(A).
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. The Exchange has satisfied this
requirement.
18 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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All submissions should refer to File
Number SR–NYSE–2009–75. 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 will also be available
for inspection and copying at the
principal office of the Exchange and on
its Web site at https://www.nyse.com. 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–NYSE–2009–75 and should
be submitted on or before September 14,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–20196 Filed 8–21–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60513; File No. SR–CBOE–
2009–059]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the Options
Regulatory Fee
August 17, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934, 15
U.S.C. 78s(b)(1), notice is hereby given
that on August 12, 2009, 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 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,1 and Rule 19b–4(f)(2)
thereunder,2 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
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
below. Additions are in italics.
Deletions are in [brackets].
*
*
*
*
*
Chicago Board Options Exchange,
Incorporated Fees Schedule
[August] September 1, 2009
1.–4. Unchanged.
Footnotes:
(1)–(17) Unchanged.
5.–11. Unchanged.
12. Regulatory Fees:
A) Options Regulatory Fee: $.004 per
contract*
*The Options Regulatory Fee is
assessed by CBOE to each member for
all options transactions executed or
cleared by the member that are cleared
by The Options Clearing Corporation
(OCC) in the customer range, excluding
Linkage orders, regardless of the
exchange on which the transaction
occurs. The fee is collected indirectly
from members through their clearing
firms by OCC on behalf of CBOE. There
is a minimum one-cent charge per trade.
Remainder of Fees Schedule—
Unchanged.
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
1 15
19 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00076
Fmt 4703
Sfmt 4703
42719
2 17
E:\FR\FM\24AUN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
24AUN1
42720
Federal Register / Vol. 74, No. 162 / Monday, August 24, 2009 / Notices
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, Proposed Rule
Change
erowe on DSK5CLS3C1PROD with NOTICES
(a) Purpose
The Exchange charges an Options
Regulatory Fee (‘‘ORF’’) of $.004 per
contract to each member for all options
transactions executed by the member
that are cleared by The Options Clearing
Corporation (‘‘OCC’’) in the customer
range, 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. There is a
minimum one-cent charge per trade.3
The Exchange proposes to amend the
ORF to also include options transactions
that are not executed by a CBOE
member but are ultimately cleared by a
CBOE member. Thus the Exchange
would charge a member $.004 per
contract for all options transactions
executed or cleared by the member that
are cleared by OCC in the customer
range, excluding Linkage orders,
regardless of the marketplace of
execution. In the case where one
member both executes a transaction and
clears the transaction, the ORF would be
assessed to the member only once on
the execution. In the case where one
member executes a transaction and a
different member clears the transaction,
the ORF would be assessed only to the
member who executes the transaction
3 The ORF was established in October 2008 as a
replacement of Registered Representative (‘‘RR’’)
fees. See Securities Exchange Act Release No. 58817
(October 20, 2008), 73 FR 63744 (October 27, 2008)
(‘‘Original Filing’’). The ORF was to be effective
January 1, 2009. In December 2008 and January
2009, the Exchange filed proposed rule changes
waiving the ORF for January and February, to allow
additional time for the Exchange, OCC and firms to
put in place appropriate procedures to implement
the fee. See Securities Exchange Act Release No.
59182 (December 30, 2008), 74 FR 730 (January 7,
2009), and Securities Exchange Act Release No.
59355 (February 3, 2009), 74 FR 6677 (February 10,
2009). To avoid a regulatory revenue shortfall for
2009 due to the waivers of the fee, the Exchange
increased the ORF for 2009 from $.0045 per
contract to $.006 per contract. See Securities
Exchange Act Release No. 59427 (February 20,
2009), 74 FR 9013 (February 27, 2009). The
Exchange reduced the ORF from $.006 per contract
to $.004 per contract, effective August 1, 2009. See
Securities Exchange Act Release No. 60093 (June
10, 2009), 74 FR 28749 (June 17, 2009).
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15:04 Aug 21, 2009
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and would not be assessed to the
member who clears the transaction. In
the case where a non-member executes
a transaction and a member clears the
transaction, the ORF would be assessed
to the member who clears the
transaction.4
The Exchange believes that its broad
regulatory responsibilities with respect
to its members’’ activities, as described
in the Original Filing, supports applying
the ORF to transactions cleared but not
executed by a member. The Exchange’s
regulatory responsibilities are the same
regardless of whether a member
executes a transaction or clears a
transaction executed on its behalf. The
Exchange regularly reviews all such
activity, including performing
surveillance for position limit
violations, manipulation, insider
trading, frontrunning and contrary
exercise advice violations.
The Exchange expects that the
proposed rule change would increase
ORF revenue by less than two percent.
As stated in the Original Filing, the ORF
is designed to generate revenue that,
when combined with all of the
Exchange’s other regulatory fees, will be
less than or equal to the Exchange’s
regulatory costs. If the Exchange
determines regulatory revenues would
exceed regulatory costs, the Exchange
would adjust the ORF by submitting a
fee change filing to the Commission.
The Exchange notifies members of
adjustments to the ORF via regulatory
circular.
The proposed fee change would
become operative on September 1, 2009,
in order to give members time to
implement the revised fee.
(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 the proposed rule change is
reasonable because it relates to the
recovery of the costs of supervising and
regulating CBOE members. The
Exchange believes the proposed rule
change is equitable because the ORF
would be charged to all members on all
4 See e-mail to Richard Holley III, Senior Special
Counsel, from Jaime Galvan, Senior Attorney,
CBOE, dated August 17, 2009 (clarifying the
operation of the proposed change to extend the ORF
to clearing activity).
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00077
Fmt 4703
Sfmt 4703
of their business that clears as customer
at the OCC.
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 rulecomments@sec.gov. Please include File
Number SR–CBOE–2009–059 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–2009–059. 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
7 15
8 17
E:\FR\FM\24AUN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
24AUN1
Federal Register / Vol. 74, No. 162 / Monday, August 24, 2009 / Notices
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 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–2009–059 and
should be submitted on or before
September 14, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–20195 Filed 8–21–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60494; File No. SR–SCCP–
2009–03]
Self-Regulatory Organizations; Stock
Clearing Corporation of Philadelphia;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Related to an Amendment to
the By-Laws of The NASDAQ OMX
Group, Inc.
erowe on DSK5CLS3C1PROD with NOTICES
August 12, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
July 22, 2009, Stock Clearing
Corporation of Philadelphia (‘‘SCCP’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’)
the proposed rule change described in
Items I and II below, which items have
been prepared primarily by SCCP. SCCP
9 CFR
1 15
200.30–3(a)(12).
U.S.C. 78s(b)(1).
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15:04 Aug 21, 2009
Jkt 217001
filed the proposed rule change under
Rule 19b–4(f)(6) under the Act 2 so that
the proposal was effective upon filing
with the Commission. The Commission
is publishing this notice to solicit
comments on the rule change from
interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
SCCP is filing this proposed rule
change with regard to proposed changes
to the by-laws of its parent corporation,
The NASDAQ OMX Group, Inc.
(‘‘NASDAQ OMX’’). The proposed rule
change will be implemented as soon as
practicable following submission of this
filing. The text of the proposed rule
change is available at https://
nasdaqomxbx.cchwallstreet.com, at
SCCP’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,
SCCP 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. SCCP has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.3
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NASDAQ OMX made certain
amendments to its by-laws to update its
by-laws and to make improvements in
its governance. In SR–NASDAQ–2009–
039, The NASDAQ Stock Market LLC
(‘‘NASDAQ Exchange’’) sought and
received Commission approval to adopt
these by-law changes as part of the rules
of the NASDAQ Exchange.4 SCCP is
submitting this filing to adopt the same
by-law changes as rules of SCCP.
The proposed changes to the by-laws
are as follows:
• Article I is being amended to reflect
the recent name changes of the
Philadelphia Stock Exchange and the
2 17
CFR 240.19b–4(f)(6).
Commission has modified the text of the
summaries prepared by DTC.
4 Securities Exchange Act Release No. 59858 (May
4, 2009), 74 FR 22191 (May 12, 2009) (SR–
NASDAQ–2009–039); Securities Exchange Act
Release No. 60183 (June 26, 2009), 74 FR 32207
(July 7, 2009) (SR–NASDAQ–2009–039).
3 The
PO 00000
Frm 00078
Fmt 4703
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42721
Boston Stock Exchange to NASDAQ
OMX PHLX, Inc. and NASDAQ OMX
BX, Inc., respectively.
• Article III is being amended to
modify the procedures governing
proposals by stockholders, including
proposals by stockholders to nominate
directors. Specifically, the amendment
will require a stockholder making a
proposal to supply more complete
information about the stockholder’s
background, including a description of
any agreement, arrangement, or
understanding between the stockholder,
the beneficial owner of the stock, and
any other persons acting in concert with
them; a description of any agreement,
arrangement or understanding
(including any derivative or short
positions, profit interests, options,
warrants, convertible securities, stock
appreciation or similar rights, hedging
transactions, and borrowed or loaned
shares), the effect or intent of which is
to mitigate loss to, manage risk or
benefit of share price changes for, or
increase or decrease the voting power
of, such stockholder or such beneficial
owner, with respect to shares of stock of
NASDAQ OMX; and any other
information regarding the stockholder
and beneficial owner that would be
required to be disclosed in a proxy
statement under Section 14(a) of the
Act. These changes are designed to
provide the NASDAQ OMX Board of
Directors and its stockholders with
greater insight into the identity and
intentions of persons presenting
stockholder proposals to allow more
thorough consideration of the merits of
such proposals. These requirements are
deemed satisfied, however, in the case
of a proposal that is validly submitted
under the rules and regulations
promulgated under the Act (i.e. , SEC
Rule 14a–8) and included in NASDAQ
OMX’s proxy. However, compliance
with the By-Laws or with SEC Rule 14a–
8 provides the exclusive means for
stockholders to make proposals. The
amendments also provide that a
representative of a stockholder qualified
to appear at an annual meeting must be
an officer, manager, or partner of the
stockholder or must have written
authorization from the stockholder. The
amendments also make several minor
clarifying changes to the text of Article
III.
• Article IV is being amended to state
explicitly that the Management
Compensation Committee and the Audit
Committee must be composed
exclusively of independent directors
within the meaning of the rules of the
NASDAQ Stock Market that govern
NASDAQ OMX’s listing (and in the case
of the Audit Committee, Section 10A of
E:\FR\FM\24AUN1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 162 (Monday, August 24, 2009)]
[Notices]
[Pages 42719-42721]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-20195]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60513; File No. SR-CBOE-2009-059]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to the Options Regulatory Fee
August 17, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934, 15 U.S.C. 78s(b)(1), notice is hereby given that on August 12,
2009, 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 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,\1\ and Rule 19b-4(f)(2) thereunder,\2\ 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\ 15 U.S.C. 78s(b)(3)(A)(ii).
\2\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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 below.
Additions are in italics. Deletions are in [brackets].
* * * * *
Chicago Board Options Exchange, Incorporated Fees Schedule
[August] September 1, 2009
1.-4. Unchanged.
Footnotes:
(1)-(17) Unchanged.
5.-11. Unchanged.
12. Regulatory Fees:
A) Options Regulatory Fee: $.004 per contract*
*The Options Regulatory Fee is assessed by CBOE to each member for
all options transactions executed or cleared by the member that are
cleared by The Options Clearing Corporation (OCC) in the customer
range, excluding Linkage orders, regardless of the exchange on which
the transaction occurs. The fee is collected indirectly from members
through their clearing firms by OCC on behalf of CBOE. There is a
minimum one-cent charge per trade.
Remainder of Fees Schedule--Unchanged.
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
[[Page 42720]]
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, Proposed Rule Change
(a) Purpose
The Exchange charges an Options Regulatory Fee (``ORF'') of $.004
per contract to each member for all options transactions executed by
the member that are cleared by The Options Clearing Corporation
(``OCC'') in the customer range, 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.
There is a minimum one-cent charge per trade.\3\
---------------------------------------------------------------------------
\3\ The ORF was established in October 2008 as a replacement of
Registered Representative (``RR'') fees. See Securities Exchange Act
Release No. 58817 (October 20, 2008), 73 FR 63744 (October 27, 2008)
(``Original Filing''). The ORF was to be effective January 1, 2009.
In December 2008 and January 2009, the Exchange filed proposed rule
changes waiving the ORF for January and February, to allow
additional time for the Exchange, OCC and firms to put in place
appropriate procedures to implement the fee. See Securities Exchange
Act Release No. 59182 (December 30, 2008), 74 FR 730 (January 7,
2009), and Securities Exchange Act Release No. 59355 (February 3,
2009), 74 FR 6677 (February 10, 2009). To avoid a regulatory revenue
shortfall for 2009 due to the waivers of the fee, the Exchange
increased the ORF for 2009 from $.0045 per contract to $.006 per
contract. See Securities Exchange Act Release No. 59427 (February
20, 2009), 74 FR 9013 (February 27, 2009). The Exchange reduced the
ORF from $.006 per contract to $.004 per contract, effective August
1, 2009. See Securities Exchange Act Release No. 60093 (June 10,
2009), 74 FR 28749 (June 17, 2009).
---------------------------------------------------------------------------
The Exchange proposes to amend the ORF to also include options
transactions that are not executed by a CBOE member but are ultimately
cleared by a CBOE member. Thus the Exchange would charge a member $.004
per contract for all options transactions executed or cleared by the
member that are cleared by OCC in the customer range, excluding Linkage
orders, regardless of the marketplace of execution. In the case where
one member both executes a transaction and clears the transaction, the
ORF would be assessed to the member only once on the execution. In the
case where one member executes a transaction and a different member
clears the transaction, the ORF would be assessed only to the member
who executes the transaction and would not be assessed to the member
who clears the transaction. In the case where a non-member executes a
transaction and a member clears the transaction, the ORF would be
assessed to the member who clears the transaction.\4\
---------------------------------------------------------------------------
\4\ See e-mail to Richard Holley III, Senior Special Counsel,
from Jaime Galvan, Senior Attorney, CBOE, dated August 17, 2009
(clarifying the operation of the proposed change to extend the ORF
to clearing activity).
---------------------------------------------------------------------------
The Exchange believes that its broad regulatory responsibilities
with respect to its members'' activities, as described in the Original
Filing, supports applying the ORF to transactions cleared but not
executed by a member. The Exchange's regulatory responsibilities are
the same regardless of whether a member executes a transaction or
clears a transaction executed on its behalf. The Exchange regularly
reviews all such activity, including performing surveillance for
position limit violations, manipulation, insider trading, frontrunning
and contrary exercise advice violations.
The Exchange expects that the proposed rule change would increase
ORF revenue by less than two percent. As stated in the Original Filing,
the ORF is designed to generate revenue that, when combined with all of
the Exchange's other regulatory fees, will be less than or equal to the
Exchange's regulatory costs. If the Exchange determines regulatory
revenues would exceed regulatory costs, the Exchange would adjust the
ORF by submitting a fee change filing to the Commission. The Exchange
notifies members of adjustments to the ORF via regulatory circular.
The proposed fee change would become operative on September 1,
2009, in order to give members time to implement the revised fee.
(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
the proposed rule change is reasonable because it relates to the
recovery of the costs of supervising and regulating CBOE members. The
Exchange believes the proposed rule change is equitable because the ORF
would be charged to all members on all of their business that clears as
customer at the OCC.
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\5\ 15 U.S.C. 78f(b).
\6\ 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 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.
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 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-2009-059 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-2009-059. 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
[[Page 42721]]
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 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-2009-059 and should be submitted on or before
September 14, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-20195 Filed 8-21-09; 8:45 am]
BILLING CODE 8010-01-P
