Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Fee Schedule of the Boston Options Exchange Facility, 46285-46287 [E9-21642]
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Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–21635 Filed 9–4–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60594; File No. SR–DTC–
2009–11]
Self-Regulatory Organizations; The
Depository Trust Company; Order
Approving Proposed Rule Change To
Eliminate One of the Indemnity Surety
Programs in the Profile Modification
System
August 31, 2009.
I. Introduction
On June 11, 2009, The Depository
Trust Company (‘‘DTC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) proposed rule change
SR–DTC–2009–11 pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’).1 The proposed rule
change was published for comment in
the Federal Register on July 20, 2009.2
No comment letters were received on
the proposal. This order approves the
proposal.
II. Description
The proposed rule change eliminates
one of the Indemnity Surety Programs
(‘‘PSP II’’) of DTC’s Profile Modification
System (‘‘Profile’’).3
On April 19, 2000, the Commission
approved a DTC rule filing to establish
Profile,4 an electronic communication
system between transfer agents that are
Direct Registration System (‘‘DRS’’)
Limited Participants (‘‘Limited
Participants’’) and broker-dealers that
are DRS Participants (‘‘Participants’’). In
May 2000, DTC implemented Profile.
Profile allows Participants to submit
electronically an instruction to move a
share position from an account at the
Limited Participant to the Participant’s
account at DTC (‘‘Electronic Participant
Instruction’’). Profile also allows
Limited Participants to submit an
instruction for the movement of a share
1 15
U.S.C. 78s(b)(1).
Exchange Act Release No. 60304 (Jul.
14, 2009), 74 FR 35221.
3 DTC has created a Profile Indemnity Insurance
Program (‘‘PIP II’’) to replace the PSP II. Securities
Exchange Act Release No. 60036 (Jun. 3, 2009), 74
FR 28085 (Jun. 12, 2009) [File No. SR–DTC–2009–
09].
4 Securities Exchange Act Release No. 42704
(Apr. 19, 2000), 65 FR 24242 (Apr. 25, 2000) [File
No. SR–DTC–2000–04].
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2 Securities
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position from a Participant’s account at
DTC to an account at the Limited
Participant (‘‘Electronic Limited
Participant Instruction;’’ together with
Electronic Participant Instruction,
‘‘Electronic Instruction’’). A Participant
or Limited Participant submitting an
Electronic Instruction through Profile is
required to agree to a Participant
Terminal System (‘‘PTS’’) screen
indemnity (‘‘Screen Indemnity’’).
On November 17, 2000, the
Commission approved a DTC rule filing
to establish the Profile Indemnity Surety
Program (‘‘PSP’’).5 Under PSP, all users
of Profile that agree to the Screen
Indemnity as part of their use of Profile
must procure a surety bond (‘‘Surety
Bond’’) to back the representations
under the Screen Indemnity.6
On June 26, 2008, the Commission
approved a DTC rule filing to establish
PSP II,7 which provides for a coverage
limit of $7.5 million per transaction
with an annual aggregate limit of $15
million. Users of PSP II are required to
pay an annual premium of $6,000 to a
surety provider and a DTC
administration fee of $250.
On June 3, 2009, the Commission
approved a DTC rule filing to establish
a new Profile Indemnity Insurance
Program (‘‘PIP II’’) to replace PSP II.8
PIP II will account for the additional,
larger value Profile transactions that
DRS currently handles by providing the
same coverage limits (i.e., $7.5 million
per transaction with an annual aggregate
limit of $15 million) at the same annual
premium (i.e., $6,000 to a provider and
a $250 administration fee to DTC) as
PSP II without requiring users of Profile
to procure a surety bond. Since PIP II
5 Securities
Exchange Act Release No. 43586
(Nov. 17, 2000), 65 FR 70745 (Nov. 27,
2000) [File No. SR–DTC–2000–09].
6 Participation in PSP requires the payment of an
annual premium of $3,150 to a surety provider and
an administration fee of $250 to DTC. The PSP
surety provider provides for a coverage limit of $3
million per transaction with an annual aggregate
limit of $6 million. On September 14, 2005, the
Commission approved a DTC rule filing to establish
the Profile Indemnity Insurance Program (‘‘PIP’’),
which serves as an alternative to PSP. Securities
Exchange Act Release No. 52422 (Sept. 14, 2005),
70 FR 55196 (Sept. 20, 2005) [File No. SR–DTC–
2005–11]. PIP allows users of Profile that agree to
the Screen Indemnity have the option to procure
insurance relating to a particular securities
transaction according to the value of the securities
transaction. PIP provides a coverage limit of $25
million per transaction with an annual aggregate
limit of $100 million. In addition to any passthrough fee from the insurer, DTC charges users
participating in PIP an annual administration fee of
$250 and a per transaction fee of $27.50.
7 Securities Exchange Act Release No. 58042 (Jun.
26, 2008), 73 FR 39067 (July 8, 2008) [File No. SR–
DTC–2008–04].
8 Securities Exchange Act Release No. 60036 (Jun.
3, 2009) 74 FR 28085 (Jun. 12, 2009) [File No. DTC–
2009–09].
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46285
will perform the same function of PSP
II, DTC is eliminating PSP II.
III. Discussion
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a registered clearing
agency. In particular, the Commission
believes the proposal is consistent with
the requirements of Section
17A(b)(3)(F),9 which requires, among
other things, that the rules of a clearing
agency are designed to remove
impediments to and perfect the
mechanisms of a national system for the
prompt and accurate clearance and
settlement of securities transactions.
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the
Act 10 and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,11 that the
proposed rule change (File No. SR–
DTC–2009–11) be, and hereby is,
approved.12
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–21619 Filed 9–4–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60610; File No. SR–BX–
2009–058]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Amend the
Fee Schedule of the Boston Options
Exchange Facility
September 1, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’) 1 and Rule 19b–4
9 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1.
11 15 U.S.C. 78s(b)(2).
12 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
13 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
10 15
E:\FR\FM\08SEN1.SGM
08SEN1
46286
Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Notices
thereunder,2 notice is hereby given that
on September 1, 2009, NASDAQ OMX
BX, Inc. (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 Exchange. The
Exchange filed the proposed rule change
pursuant to 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 persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Fee Schedule of the Boston Options
Exchange Group, LLC (‘‘BOX’’). The text
of the proposed rule change is available
from the principal office of the
Exchange, at the Commission’s Public
Reference Room and also on the
Exchange’s Internet Web site at https://
nasdaqomxbx.cchwallstreet.com/
NASDAQOMXBX/Filings/.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
jlentini on DSKJ8SOYB1PROD with NOTICES
1. Purpose
Public Customer Orders on BOX
which are not executable against the
BOX Book are routed as Principal
Acting as Agent (‘‘P/A’’) Orders via the
OCC Hub System 5 to away exchanges
for execution. On August 12, 2009, the
Exchange filed a fee amendment with
the Commission exempting outbound P/
A Orders from being charged transaction
2 17
CFR 240.19b–4.
U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
5 Terms not otherwise defined herein shall have
the meaning proscribed in the BOX Rules.
3 15
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17:32 Sep 04, 2009
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fees.6 The Exchange believes that
exempting all outbound P/A Orders
from fees may tempt BOX Options
Participants to increase non executable
order flow to BOX in order to avoid fees
on other exchanges. In order to
eliminate the abusive use of this
exemption, the Exchange proposes to
impose a fee of $0.50 per contract for all
transactions made in excess of 4,000
contracts per month for an individual
BOX Options Participant. The proposed
change will have no effect on the billing
of orders of non-BOX Options
Participants including any orders
received through the OCC Hub. In
addition, BOX Options Participants may
avoid paying the proposed fee by
choosing to designate their order as Fill
and Kill (‘‘FAK’’). FAK orders are not
eligible for routing to away exchanges.
FAK orders are executed on BOX, if
possible, and then cancelled.
For example, if a Public Customer
Order is entered into the BOX Trading
Host and is routed to an away market as
an outbound P/A Order and subsequent
to the routing executed, the trade
execution will be free for the first 4,000
contracts traded each month, regardless
of class. All subsequent Public
Customer Orders traded as a result of an
outbound P/A Order in excess of 4,000
contracts will be charged $0.50 per
contract. Previously, such a transaction
was exempt from transaction charges.
The Exchange requests that the
effective date of the proposed rule
change be September 1, 2009.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,7
in general, and Section 6(b)(4) of the
Act,8 in particular, in that it provides for
the equitable allocation of reasonable
dues, fees, and other charges among its
members and issuers and other persons
using its facilities. In particular, the
proposed change will allow the
Exchange to charge the appropriate fees
and provide the appropriate credits with
respect to orders routed by BOX to away
exchanges.
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 not
necessary or appropriate in furtherance
of the purposes of the Act.
6 See Securities Exchange Act Release No. 60504
(August 12, 2009), 74 FR 42724 (August 24, 2009)
(SR–BX–2009–047).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(4).
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Sfmt 4703
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received comments on 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)(ii) of the Exchange Act 9 and
Rule 19b–4(f)(2) thereunder,10 because
it establishes or changes a due, fee, or
other charge applicable only to a
member.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
the rule change if it appears to the
Commission that the action is necessary
or appropriate in the public interest, for
the protection of investors, or would
otherwise further 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–BX–2009–058 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–BX–2009–058. 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
9 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
10 17
E:\FR\FM\08SEN1.SGM
08SEN1
Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Notices
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 will also be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File No.
SR–BX–2009–058 and should be
submitted on or before September 29,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–21642 Filed 9–4–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60596; File No. SR–BX–
2009–057]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Order Granting Accelerated
Approval of Proposed Rule Change To
Amend the Fee Schedule of the Boston
Options Exchange Group, LLC
jlentini on DSKJ8SOYB1PROD with NOTICES
August 31, 2009.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b-4 thereunder,3
notice is hereby given that on August
31, 2009, NASDAQ OMX BX, Inc. (‘‘BX’’
or ‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons and
grant accelerated approval of the
proposed rule change.
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
VerDate Nov<24>2008
22:36 Sep 04, 2009
Jkt 217001
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing an
amendment to the Fee Schedule of the
Boston Options Exchange Group, LLC
(‘‘BOX’’). The text of the proposed rule
change is available from the principal
office of the Exchange, at the
Commission’s Public Reference Room
and also on the Exchange’s Internet Web
site at https://
nasdaqomxbx.cchwallstreet.com/
NASDAQOMXBX/Filings/.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item III below,
and the most significant aspects of such
statements are set forth in Sections A, B,
and C below.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange recently submitted a
proposed rule change 4 with the
Commission which eliminated the
Liquidity Make or Take Pricing
Structure on BOX, except for inbound P
and P/A Order executions.5 Instead of
the fees and credits that had previously
been applied under the Liquidity Make
or Take Pricing Structure ‘‘standard’’
transaction fees now apply to all classes
listed for trading on BOX that are
included in the Penny Pilot Program, as
referenced in Chapter V, Section 33 of
the BOX Rules (‘‘Penny Pilot Classes’’).6
Executions on BOX resulting from
inbound P and P/A Orders sent via the
OCC Hub are subject to the same billing
treatment as other executions on BOX.
4 See
SR–BOX–2009–057.
not otherwise defined herein shall have
the meaning proscribed in the Options Order
Protection and Locked/Crossed Market Plan, or the
BOX Rules, respectively.
6 A recent proposal submitted by the Exchange for
immediate effectiveness previously removed the
following three (3) exchange-traded fund share
classes from the Liquidity Make or Take pricing
structure: (1) Standard & Poor’s Depositary
Receipts® (SPY); (2) Powershares® QQQ Trust
Series 1 (QQQQ); and (3) iShares Russell 2000®
Index Fund (IWM). See Securities Exchange Act
Release No. 60221 (July 1, 2009), 74 FR 32996 (July
9, 2009) (SR–BX–2009–033). These three classes
remain subject only to ‘‘standard’’ fees.
5 Terms
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46287
In conjunction with the above
referenced rule change the Exchange is
now proposing to remove Section 7 of
the Fee Schedule in its entirety and the
application of the Liquidity Make or
Take Pricing to inbound P and P/A
Orders sent to and executed on BOX in
these Penny Pilot Classes. As a result
the Liquidity Make or Take Pricing
Structure will no longer exist on BOX.
Standard P and P/A fees, as set forth in
Section 4 of the BOX Fee Schedule,
shall instead apply to inbound P and P/
A Orders in all Penny Pilot Classes. In
addition, the current Section 8 of the
Fee Schedule will be renumbered as
new Section 7. If approved, this
proposal will conform inbound P and P/
A fees with the fees charged to BOX
Options Participants for the transactions
in the same Penny Pilot Classes.
For example, an inbound P or P/A
Order, routed to BOX from an away
market executes against an order resting
on the BOX Book. The inbound P or P/
A Order is the remover of the liquidity.
Prior to this proposal, such a transaction
may have been subject to the fees set
forth in the Liquidity Make or Take
Pricing Structure, resulting in the
applicable ‘‘take’’ fee (currently $0.45)
of Section 7 of the Fee Schedule. Under
this proposal, the standard $0.20
inbound P and P/A Order fee would
apply.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,7
in general, and Section 6(b)(4) of the
Act,8 in particular, in that it provides for
the equitable allocation of reasonable
dues, fees, and other charges among its
members and issuers and other persons
using its facilities for the purpose of
executing inbound P and P/A Orders
that are routed to BOX from other
market centers. In particular, this
proposed fee change will treat inbound
P and P/A Orders the same as other
orders in Penny Pilot Classes and
amend pricing for executions on BOX so
as to better compete with the current
pricing in place on other exchanges.
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 not
necessary or appropriate in furtherance
of the purposes of the Act.
7 15
8 15
E:\FR\FM\08SEN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
08SEN1
Agencies
[Federal Register Volume 74, Number 172 (Tuesday, September 8, 2009)]
[Notices]
[Pages 46285-46287]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-21642]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60610; File No. SR-BX-2009-058]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Fee Schedule of the Boston Options Exchange Facility
September 1, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act'') \1\ and Rule 19b-4
[[Page 46286]]
thereunder,\2\ notice is hereby given that on September 1, 2009, NASDAQ
OMX BX, Inc. (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
Exchange. The Exchange filed the proposed rule change pursuant to
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 persons.
---------------------------------------------------------------------------
\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
The Exchange proposes to amend the Fee Schedule of the Boston
Options Exchange Group, LLC (``BOX''). The text of the proposed rule
change is available from the principal office of the Exchange, at the
Commission's Public Reference Room and also on the Exchange's Internet
Web site at https://nasdaqomxbx.cchwallstreet.com/NASDAQOMXBX/Filings/.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in Sections A, B, and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Public Customer Orders on BOX which are not executable against the
BOX Book are routed as Principal Acting as Agent (``P/A'') Orders via
the OCC Hub System \5\ to away exchanges for execution. On August 12,
2009, the Exchange filed a fee amendment with the Commission exempting
outbound P/A Orders from being charged transaction fees.\6\ The
Exchange believes that exempting all outbound P/A Orders from fees may
tempt BOX Options Participants to increase non executable order flow to
BOX in order to avoid fees on other exchanges. In order to eliminate
the abusive use of this exemption, the Exchange proposes to impose a
fee of $0.50 per contract for all transactions made in excess of 4,000
contracts per month for an individual BOX Options Participant. The
proposed change will have no effect on the billing of orders of non-BOX
Options Participants including any orders received through the OCC Hub.
In addition, BOX Options Participants may avoid paying the proposed fee
by choosing to designate their order as Fill and Kill (``FAK''). FAK
orders are not eligible for routing to away exchanges. FAK orders are
executed on BOX, if possible, and then cancelled.
---------------------------------------------------------------------------
\5\ Terms not otherwise defined herein shall have the meaning
proscribed in the BOX Rules.
\6\ See Securities Exchange Act Release No. 60504 (August 12,
2009), 74 FR 42724 (August 24, 2009) (SR-BX-2009-047).
---------------------------------------------------------------------------
For example, if a Public Customer Order is entered into the BOX
Trading Host and is routed to an away market as an outbound P/A Order
and subsequent to the routing executed, the trade execution will be
free for the first 4,000 contracts traded each month, regardless of
class. All subsequent Public Customer Orders traded as a result of an
outbound P/A Order in excess of 4,000 contracts will be charged $0.50
per contract. Previously, such a transaction was exempt from
transaction charges.
The Exchange requests that the effective date of the proposed rule
change be September 1, 2009.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\7\ in general, and Section
6(b)(4) of the Act,\8\ in particular, in that it provides for the
equitable allocation of reasonable dues, fees, and other charges among
its members and issuers and other persons using its facilities. In
particular, the proposed change will allow the Exchange to charge the
appropriate fees and provide the appropriate credits with respect to
orders routed by BOX to away exchanges.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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 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
The Exchange has neither solicited nor received comments on 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)(ii) of the Exchange Act \9\ and Rule 19b-4(f)(2)
thereunder,\10\ because it establishes or changes a due, fee, or other
charge applicable only to a member.
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\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate the rule change if it
appears to the Commission that the action is necessary or appropriate
in the public interest, for the protection of investors, or would
otherwise further the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-BX-2009-058 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-BX-2009-058. 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
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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 will also be available for inspection and
copying at the principal office of the Exchange. All comments received
will be posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File No. SR-BX-2009-058 and should be submitted on or
before September 29, 2009.
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\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-21642 Filed 9-4-09; 8:45 am]
BILLING CODE 8010-01-P