Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Chicago Board Options Exchange Stock Exchange Fees Schedule, 2172-2173 [2010-540]

Download as PDF 2172 Federal Register / Vol. 75, No. 9 / Thursday, January 14, 2010 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61303; File No. SR–CBOE– 2009–102] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Chicago Board Options Exchange Stock Exchange Fees Schedule January 6, 2010. 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 December 30, 2009, the Chicago Board Options Exchange, Incorporated (‘‘Exchange’’ or ‘‘CBOE’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. 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 its CBOE Stock Exchange (‘‘CBSX’’) Fees Schedule. The text of the proposed rule change is available on the Exchange’s Web site (https://www.cboe.org/legal), at the Exchange’s principal office, on the Commission’s Web site (https:// www.sec.gov), and at the Commission’s Public Reference Room. pwalker on DSK8KYBLC1PROD with NOTICES 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. 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Nov<24>2008 17:36 Jan 13, 2010 Jkt 220001 A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose CBSX proposes to make fee modifications in order to better attract business to the exchange. Specifically, CBSX proposes to change to $0.0030 per share its Taker Fee and Routing Fee applicable to transactions of securities priced at $1 or greater. CBSX proposes to change to 0.30% (of the dollar value of the transaction) its Taker Fee and Routing Fee for transactions in securities priced less than $1. CBSX proposes to change to $0.0025 per share the rebate for Makers, applicable to transactions in securities priced at $1 or greater. CBSX also proposes to change the fee rates applicable to stock executions effected pursuant to Rules 6.53C, 6.74A.07 and 6.74B.01. Rule 6.53C is CBOE’s complex order auction (COA) and book (COB) rule. The COA system facilitates the handling and execution of complex orders by allowing for complex orders to rest in the system and allowing for inbound complex orders to trigger an auction where auction participants may submit complex order responses to trade with the order that is being auctioned. Some complex orders contain a stock component (e.g. a buy-write order), and the stock component of a stock-option complex order handled by the system is executed on CBSX. This filing changes the rate applicable to the stock executions that result from stock-option orders trading pursuant to Rule 6.53C as follows: the order that triggered a COA auction or that triggered a trade with a resting COB order shall be charged $0.0020 per share subject to a $2.00 minimum charge (the $25.00 maximum charge will remain unchanged). Rule 6.74A.07 is CBOE’s Automated Improvement Mechanism (AIM) rule for complex orders. It allows complex orders (including stock-option orders) to be crossed after an electronic auction. Rule 6.74B.01 is the Solicitation Auction Mechanism. It allows for the execution of large size complex orders against solicited orders. Any stock executions resulting from orders processed through these mechanisms are handled on CBSX. This filing changes the rate applicable to the stock executions that result from stock-option orders trading pursuant to Rule 6.74A.07 and 6.74B.01 as follows: $0.0020 per share subject to a $2.00 minimum charge and $25.00 maximum charge (the $25.00 maximum charge will remain unchanged). PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 Lastly, this filing eliminates the CBSX market data rebate program. CBSX will cease issuing tape credits. The fee changes will take effect on January 4, 2010. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (‘‘Act’’),3 in general, and furthers the objectives of Section 6(b)(4) 4 of the Act in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among CBOE members and other persons using its facilities. 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 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 proposed rule change is designated by the Exchange as establishing or changing a due, fee, or other charge, thereby qualifying for effectiveness on filing pursuant to Section 19(b)(3)(A)(ii) of the Act 5 and subparagraph (f)(2) of Rule 19b–4 thereunder.6 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: 3 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 5 15 U.S.C. 78s(b)(3)(A)(ii). 6 17 CFR 240.19b–4(f)(2). 4 15 E:\FR\FM\14JAN1.SGM 14JAN1 Federal Register / Vol. 75, No. 9 / Thursday, January 14, 2010 / Notices 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–2009–102 on the subject line. Paper Comments pwalker on DSK8KYBLC1PROD with NOTICES • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61297; File No. SR–FINRA– 2009–094] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating To Extending the Pilot Period Regarding the Use of Multiple MPIDs on FINRA Facilities January 6, 2010. 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 December All submissions should refer to File 29, 2009, Financial Industry Regulatory Number SR–CBOE–2009–102. This file Authority, Inc. (‘‘FINRA’’) filed with the number should be included on the Securities and Exchange Commission subject line if e-mail is used. To help the (‘‘SEC’’ or ‘‘Commission’’) the proposed Commission process and review your rule change as described in Items I, II comments more efficiently, please use and III below, which Items have been only one method. The Commission will prepared by FINRA. FINRA has post all comments on the Commission’s designated the proposed rule change as Internet Web site (https://www.sec.gov/ constituting a ‘‘non-controversial’’ rule rules/sro.shtml). Copies of the change under paragraph (f)(6) of Rule submission, all subsequent 19b–4 under the Act,3 which renders amendments, all written statements the proposal effective upon receipt of with respect to the proposed rule this filing by the Commission. The change that are filed with the Commission is publishing this notice to Commission, and all written solicit comments on the proposed rule communications relating to the change from interested persons. proposed rule change between the I. Self-Regulatory Organization’s Commission and any person, other than Statement of the Terms of Substance of those that may be withheld from the the Proposed Rule Change public in accordance with the FINRA is proposing to extend through provisions of 5 U.S.C. 552, will be January 28, 2011, the current rules available for inspection and copying in regarding the use of multiple Market the Commission’s Public Reference Participant Symbols (‘‘MPIDs’’) in Room, 100 F Street, NE., Washington, FINRA Rules 6160 (with respect to DC 20549, on official business days Trade Reporting Facilities (‘‘TRFs’’)), between the hours of 10 a.m. and 3 p.m. 6170 (with respect to the Alternative Copies of such filing also will be Display Facility (‘‘ADF’’)), and 6480 available for inspection and copying at (with respect to the OTC Reporting the principal office of the Exchange. All Facility (‘‘ORF’’)). comments received will be posted The text of the proposed rule change without change; the Commission does is available on FINRA’s Web site at not edit personal identifying https://www.finra.org, at the principal information from submissions. You office of FINRA and at the should submit only information that Commission’s Public Reference Room. you wish to make available publicly. All II. Self-Regulatory Organization’s submissions should refer to File Statement of the Purpose of, and Number SR–CBOE–2009–102 and Statutory Basis for, the Proposed Rule should be submitted on or before Change February 4, 2010. In its filing with the Commission, For the Commission, by the Division of FINRA included statements concerning Trading and Markets, pursuant to delegated the purpose of and basis for the authority.7 proposed rule change and discussed any Florence E. Harmon, comments it received on the proposed Deputy Secretary. rule change. The text of these statements may be examined at the places specified [FR Doc. 2010–540 Filed 1–13–10; 8:45 am] 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). CFR 200.30–3(a)(12). VerDate Nov<24>2008 17:36 Jan 13, 2010 Jkt 220001 PO 00000 Frm 00069 Fmt 4703 in Item IV below. FINRA 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 FINRA has three rules governing the use of multiple MPIDs on FINRA facilities: Rule 6160 (Multiple MPIDs for Trade Reporting Facility Participants), Rule 6170 (Primary and Additional MPIDs for Alternative Display Facility Participants), and Rule 6480 (Multiple MPIDs for Quoting and Trading in OTC Equity Securities). The pilot period for all three rules is scheduled to expire on January 29, 2010. FINRA believes that there continue to be legitimate business reasons for members to maintain multiple MPIDs for use on FINRA facilities. Consequently, FINRA is proposing to extend the pilot period for each of the three rules until January 28, 2011. FINRA is not proposing any other changes to the rules at this time. (a) Rule 6160 Rule 6160 provides that any Trade Reporting Facility Participant that wishes to use more than one MPID for purposes of reporting trades to a TRF must submit a written request to, and obtain approval from, FINRA Operations for such additional MPIDs. In addition, Supplementary Material to the rule states that FINRA considers the issuance of, and trade reporting with, multiple MPIDs to be a privilege and not a right. A Trade Reporting Facility Participant must identify the purpose(s) and system(s) for which the multiple MPIDs will be used. If FINRA determines that the use of multiple MPIDs is detrimental to the marketplace, or that a Trade Reporting Facility Participant is using one or more additional MPIDs improperly or for other than the purpose(s) identified by the Participant, FINRA staff retains full discretion to limit or withdraw its grant of the additional MPID(s) to such Trade Reporting Facility Participant for purposes of reporting trades to a TRF. FINRA believes that Rule 6160 is necessary to consolidate the process of issuing, and tracking the use of, multiple MPIDs used to report trades to TRFs. Rule 6160 was approved by the Commission in 2006 on a pilot basis.4 4 See Securities Exchange Act Release No. 54715 (November 6, 2006), 71 FR 66354 (November 14, 2006); see also Securities Exchange Act Release No. BILLING CODE 8011–01–P 7 17 2173 Continued Sfmt 4703 E:\FR\FM\14JAN1.SGM 14JAN1

Agencies

[Federal Register Volume 75, Number 9 (Thursday, January 14, 2010)]
[Notices]
[Pages 2172-2173]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-540]



[[Page 2172]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61303; File No. SR-CBOE-2009-102]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Its Chicago Board Options Exchange Stock 
Exchange Fees Schedule

January 6, 2010.
    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 December 30, 2009, the Chicago Board Options Exchange, Incorporated 
(``Exchange'' or ``CBOE'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change as described in 
Items I and II below, which Items have been prepared by the Exchange. 
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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its CBOE Stock Exchange (``CBSX'') 
Fees Schedule. The text of the proposed rule change is available on the 
Exchange's Web site (https://www.cboe.org/legal), at the Exchange's 
principal office, on the Commission's Web site (https://www.sec.gov), 
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

1. Purpose
    CBSX proposes to make fee modifications in order to better attract 
business to the exchange. Specifically, CBSX proposes to change to 
$0.0030 per share its Taker Fee and Routing Fee applicable to 
transactions of securities priced at $1 or greater. CBSX proposes to 
change to 0.30% (of the dollar value of the transaction) its Taker Fee 
and Routing Fee for transactions in securities priced less than $1. 
CBSX proposes to change to $0.0025 per share the rebate for Makers, 
applicable to transactions in securities priced at $1 or greater.
    CBSX also proposes to change the fee rates applicable to stock 
executions effected pursuant to Rules 6.53C, 6.74A.07 and 6.74B.01. 
Rule 6.53C is CBOE's complex order auction (COA) and book (COB) rule. 
The COA system facilitates the handling and execution of complex orders 
by allowing for complex orders to rest in the system and allowing for 
inbound complex orders to trigger an auction where auction participants 
may submit complex order responses to trade with the order that is 
being auctioned. Some complex orders contain a stock component (e.g. a 
buy-write order), and the stock component of a stock-option complex 
order handled by the system is executed on CBSX. This filing changes 
the rate applicable to the stock executions that result from stock-
option orders trading pursuant to Rule 6.53C as follows: the order that 
triggered a COA auction or that triggered a trade with a resting COB 
order shall be charged $0.0020 per share subject to a $2.00 minimum 
charge (the $25.00 maximum charge will remain unchanged).
    Rule 6.74A.07 is CBOE's Automated Improvement Mechanism (AIM) rule 
for complex orders. It allows complex orders (including stock-option 
orders) to be crossed after an electronic auction. Rule 6.74B.01 is the 
Solicitation Auction Mechanism. It allows for the execution of large 
size complex orders against solicited orders. Any stock executions 
resulting from orders processed through these mechanisms are handled on 
CBSX. This filing changes the rate applicable to the stock executions 
that result from stock-option orders trading pursuant to Rule 6.74A.07 
and 6.74B.01 as follows: $0.0020 per share subject to a $2.00 minimum 
charge and $25.00 maximum charge (the $25.00 maximum charge will remain 
unchanged).
    Lastly, this filing eliminates the CBSX market data rebate program. 
CBSX will cease issuing tape credits.
    The fee changes will take effect on January 4, 2010.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Securities Exchange Act of 1934 (``Act''),\3\ in general, and furthers 
the objectives of Section 6(b)(4) \4\ of the Act in particular, in that 
it is designed to provide for the equitable allocation of reasonable 
dues, fees, and other charges among CBOE members and other persons 
using its facilities.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f(b).
    \4\ 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 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 proposed rule change is designated by the Exchange as 
establishing or changing a due, fee, or other charge, thereby 
qualifying for effectiveness on filing pursuant to Section 
19(b)(3)(A)(ii) of the Act \5\ and subparagraph (f)(2) of Rule 19b-4 
thereunder.\6\ 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

[[Page 2173]]

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-2009-102 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-2009-102. 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 such filing also will be available for 
inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-CBOE-2009-102 and should be 
submitted on or before February 4, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-540 Filed 1-13-10; 8:45 am]
BILLING CODE 8011-01-P
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