Self-Regulatory Organizations; Chicago Board Options Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, and Amendment No. 1 Thereto, Relating to the Elimination of the Hybrid Electronic Quoting Fee, 3773-3774 [2010-1142]

Download as PDF Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Notices general, to protect investors and the public interest. The proposed amendments are identical to the current rules relating to the FINRA/NYSE Trade Reporting Facility (‘‘FINRA/NYSE TRF’’) and would make FINRA rules governing the submission of trade cancellations consistent across the ‘‘FINRA Facilities.’’ 8 The Commission believes such consistency should enhance market transparency and eliminate systematically imposed delays in the reporting of trade cancellations to the FINRA/Nasdaq TRF and ORF. It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change (SR–FINRA– 2009–082), be and hereby is approved. 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 to eliminate the Hybrid Electronic Quoting Fee. The text of the proposed rule change is available on the Exchange’s website (https://www.cboe.org/legal), at the Exchange’s Office of the Secretary and at the Commission. BILLING CODE 8011–01–P II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CBOE included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. CBOE has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. SECURITIES AND EXCHANGE COMMISSION A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–1143 Filed 1–21–10; 8:45 am] [Release No. 34–61357; File No. SR–CBOE– 2010–001] Self-Regulatory Organizations; Chicago Board Options Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, and Amendment No. 1 Thereto, Relating to the Elimination of the Hybrid Electronic Quoting Fee erowe on DSK5CLS3C1PROD with NOTICES January 14, 2010. 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 January 4, 2010, 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. On January 12, 2010, CBOE filed Amendment No. 1 to the proposed rule change. The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. 8 The ADF, FINRA/Nasdaq TRF, FINRA/NYSE TRF and ORF are collectively referred to herein as the ‘‘FINRA Facilities.’’ 9 17 CFR 200.30–3(a)(12). VerDate Nov<24>2008 14:43 Jan 21, 2010 Jkt 220001 1. Purpose The purpose of this proposed rule change is to eliminate the Hybrid Electronic Quoting Fee (‘‘Quoting Fee’’), which is applicable to all MarketMakers, DPMs, and e-DPMs (collectively ‘‘liquidity providers’’). The Quoting Fee was implemented in February 2007 with the purpose of promoting and encouraging more efficient quoting.1 Under the Quoting Fee, CBOE assesses all liquidity providers who are submitting electronic quotations to CBOE in Hybrid option classes a monthly amount of $450 per membership utilized. CBOE also assesses or credits fees on liquidity providers that vary depending on: (i) The quality of the liquidity provider’s quotation (a quotation is a bid and an offer); and (ii) the value of the underlying security and CBOE’s bid in the option series.2 If a liquidity provider is assessed (or credited) the Quoting Fee, the liquidity provider does not pay 1 See Securities Exchange Act Release No. 54804 (November 21, 2006), 71 FR 69150 (November 29, 2006). The Quoting Fee was amended three times. See Securities Exchange Act Release No. 56602 (October 3, 2007), 72 FR 57620 (October 10, 2007); Securities Exchange Act Release No. 56927 (December 7, 2007), 72 FR 70912 (December 13, 2007); and Securities Exchange Act Release No. 58513 (September 11, 2008), 73 FR 54186 (September 18, 2008). 2 See CBOE Fees Schedule, Section 17. PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 3773 a member dues fee under Section 10 of the Fees Schedule. The Exchange believes the Quoting Fee is no longer necessary to help mitigate quote message traffic. The Exchange believes liquidity providers generally are quoting more efficiently in response to the expansion of the Penny Pilot Program in order to remain competitive in the penny classes. In addition, the Exchange believes the other quote mitigation strategies it implemented at the inception of the Penny Pilot Program should continue to be effective in mitigating quotations.3 Also, since the adoption of the Quoting Fee the Exchange has invested heavily to increase its options system capacity to handle greater quote message traffic. Accordingly, the Exchange believes it would be appropriate to eliminate the Quoting Fee. Liquidity providers will continue to be charged $450 per month as member dues under Section 10 of the Fees Schedule instead of as a Hybrid Electronic Quoting Fee. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (‘‘Act’’),4 in general, and furthers the objectives of Section 6(b)(4) 5 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. The Exchange believes it is appropriate to eliminate the Quoting Fee because it is no longer necessary to help mitigate quote message traffic. 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) 3 See Securities Exchange Act Release No. 55154 (January 23, 2007), 72 FR 4743 (February 1, 2007). 4 15 U.S.C. 78f(b). 5 15 U.S.C. 78f(b)(4). E:\FR\FM\22JAN1.SGM 22JAN1 3774 Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Notices of the Act 6 and subparagraph (f)(2) of Rule 19b–4 7 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: erowe on DSK5CLS3C1PROD with 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–2010–001 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–2010–001. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted 6 15 7 17 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). VerDate Nov<24>2008 14:43 Jan 21, 2010 Jkt 220001 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–2010–001 and should be submitted on or before February 12, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–1142 Filed 1–21–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61323; File No. SR– NASDAQ–2009–116] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing of Proposed Rule Change To Amend Rule 2240 and 2250 To Reflect Changes to Corresponding FINRA Rules January 11, 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 NASDAQ Stock Market LLC (the ‘‘Exchange’’ or ‘‘NASDAQ’’) 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 has designated the proposed rule change as constituting a non-controversial rule change under Rule 19b–4(f)(6) under the Act,3 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 the Substance of the Proposed Rule Change Pursuant to the provisions of Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),4 and Rule 19b–4 thereunder,5 The NASDAQ Stock Market LLC (the ‘‘Exchange’’ or ‘‘NASDAQ’’) is filing with the Securities and Exchange Commission 8 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 4 15 U.S.C. 78s(b)(1). 5 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 (‘‘Commission’’) a proposed rule change to amend NASDAQ Rule 2240 and 2250 to reflect recent changes to corresponding rules of the Financial Industry Regulatory Authority (‘‘FINRA’’). The text of the proposed rule change is below. Additions are in italics; deletions are in brackets. NASDAQ Stock Market Rules * * * * * [2240. Disclosure of Control Relationship with Issuer Nasdaq Members shall comply with NASD Rule 2240 as if such Rule were part of Nasdaq’s Rules.] * * * * * [2250. Disclosure of Participation or Interest in Primary or Secondary Distribution Nasdaq Members shall comply with NASD Rule 2250 as if such Rule were part of Nasdaq’s Rules.] * * * * * 2262. Disclosure of Control Relationship with Issuer Nasdaq Members shall comply with FINRA Rule 2262 as if such Rule were part of Nasdaq’s Rules. * * * * * 2269. Disclosure of Participation or Interest in Primary or Secondary Distribution Nasdaq Members shall comply with FINRA Rule 2269 as if such Rule were part of Nasdaq’s Rules. * * * * * 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 Exchange 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 Exchange 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 Many of NASDAQ’s rules are based on rules of FINRA (formerly the National Association of Securities Dealers (‘‘NASD’’)). During 2008, FINRA embarked on an extended process of moving rules formerly designated as ‘‘NASD Rules’’ into a consolidated FINRA rulebook. In most cases, FINRA E:\FR\FM\22JAN1.SGM 22JAN1

Agencies

[Federal Register Volume 75, Number 14 (Friday, January 22, 2010)]
[Notices]
[Pages 3773-3774]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-1142]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61357; File No. SR-CBOE-2010-001]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change, and Amendment No. 1 Thereto, Relating to the Elimination of the 
Hybrid Electronic Quoting Fee

January 14, 2010.
    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 January 4, 
2010, 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. On January 12, 
2010, CBOE filed Amendment No. 1 to the proposed rule change. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change, as amended, 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 to eliminate the 
Hybrid Electronic Quoting Fee. The text of the proposed rule change is 
available on the Exchange's website (https://www.cboe.org/legal), at the 
Exchange's Office of the Secretary and at the Commission.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, CBOE included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. CBOE has prepared summaries, set forth in sections A, B, 
and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this proposed rule change is to eliminate the Hybrid 
Electronic Quoting Fee (``Quoting Fee''), which is applicable to all 
Market-Makers, DPMs, and e-DPMs (collectively ``liquidity providers''). 
The Quoting Fee was implemented in February 2007 with the purpose of 
promoting and encouraging more efficient quoting.\1\ Under the Quoting 
Fee, CBOE assesses all liquidity providers who are submitting 
electronic quotations to CBOE in Hybrid option classes a monthly amount 
of $450 per membership utilized. CBOE also assesses or credits fees on 
liquidity providers that vary depending on: (i) The quality of the 
liquidity provider's quotation (a quotation is a bid and an offer); and 
(ii) the value of the underlying security and CBOE's bid in the option 
series.\2\ If a liquidity provider is assessed (or credited) the 
Quoting Fee, the liquidity provider does not pay a member dues fee 
under Section 10 of the Fees Schedule.
---------------------------------------------------------------------------

    \1\ See Securities Exchange Act Release No. 54804 (November 21, 
2006), 71 FR 69150 (November 29, 2006). The Quoting Fee was amended 
three times. See Securities Exchange Act Release No. 56602 (October 
3, 2007), 72 FR 57620 (October 10, 2007); Securities Exchange Act 
Release No. 56927 (December 7, 2007), 72 FR 70912 (December 13, 
2007); and Securities Exchange Act Release No. 58513 (September 11, 
2008), 73 FR 54186 (September 18, 2008).
    \2\ See CBOE Fees Schedule, Section 17.
---------------------------------------------------------------------------

    The Exchange believes the Quoting Fee is no longer necessary to 
help mitigate quote message traffic. The Exchange believes liquidity 
providers generally are quoting more efficiently in response to the 
expansion of the Penny Pilot Program in order to remain competitive in 
the penny classes. In addition, the Exchange believes the other quote 
mitigation strategies it implemented at the inception of the Penny 
Pilot Program should continue to be effective in mitigating 
quotations.\3\ Also, since the adoption of the Quoting Fee the Exchange 
has invested heavily to increase its options system capacity to handle 
greater quote message traffic. Accordingly, the Exchange believes it 
would be appropriate to eliminate the Quoting Fee.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 55154 (January 23, 
2007), 72 FR 4743 (February 1, 2007).
---------------------------------------------------------------------------

    Liquidity providers will continue to be charged $450 per month as 
member dues under Section 10 of the Fees Schedule instead of as a 
Hybrid Electronic Quoting Fee.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Securities Exchange Act of 1934 (``Act''),\4\ in 
general, and furthers the objectives of Section 6(b)(4) \5\ 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. The Exchange believes it is appropriate to eliminate the 
Quoting Fee because it is no longer necessary to help mitigate quote 
message traffic.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE does not believe that the proposed rule change will impose any 
burden on competition that is not necessary or appropriate in 
furtherance of purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

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)

[[Page 3774]]

of the Act \6\ and subparagraph (f)(2) of Rule 19b-4 \7\ 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 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:

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-2010-001 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-2010-001. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Room, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of 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-2010-001 and should be 
submitted on or before February 12, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-1142 Filed 1-21-10; 8:45 am]
BILLING CODE 8011-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.