Self-Regulatory Organizations; Chicago Board Options Exchange, Inc.; Notice of Filing of Proposed Rule Change Relating to Co-Location Service Fees, 6741-6743 [2010-2946]
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Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices
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2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with and
furthers the objectives of Section 6(b)(5)
of the Act, in that it is designed to
promote just and equitable principles of
trade, remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system and, in general, to protect
investors and the public interest, by
identifying the options classes to be
added to the Pilot in a manner
consistent with prior approvals and
filings.
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:
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
• 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–NYSEArca–2010–06. 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 Web viewing and printing
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
NYSE Arca’s principal office 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 No.
sroberts on DSKD5P82C1PROD with NOTICES
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 effective
upon filing pursuant to Section
19(b)(3)(A)(i) of the Exchange Act 5 and
Rule 19b–4(f)(1) thereunder,6 in that it
constitutes a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule of the
Exchange. 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
5 15
U.S.C. 78s(b)(3)(A)(i).
6 17 CFR 240.19b–4(f)(1).
VerDate Nov<24>2008
16:21 Feb 09, 2010
Jkt 220001
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–NYSEArca–2010–06 on the
subject line.
Paper Comments
PO 00000
Frm 00120
Fmt 4703
Sfmt 4703
6741
SR–NYSEArca–2010–06 and should be
submitted on or before March 3, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–2944 Filed 2–9–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61489; File No. SR–CBOE–
2010–008]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Inc.; Notice of Filing of Proposed Rule
Change Relating to Co-Location
Service Fees
February 4, 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 January
28, 2010, Chicago Board Options
Exchange, Inc. (‘‘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. 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
Chicago Board Options Exchange, Inc.
(‘‘CBOE’’ or ‘‘Exchange’’) proposes to
amend its Fees Schedule relating to colocation service fees. 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, and at the
Commission’s Public Reference Room.
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\10FEN1.SGM
10FEN1
6742
Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / 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,
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
sroberts on DSKD5P82C1PROD with NOTICES
1. Purpose
For a monthly fee, the Exchange
provides members with cabinet space in
CBOE’s building for placement of
network and server hardware. The fee is
$10 per month per ‘‘U’’ of shelf space
(which is equal to 1.75 inches).3 A
member also receives power, cooling,
security and assistance with installation
and connection of the equipment to the
Exchange’s servers, at no additional
charge. This ‘‘co-location service’’
provides members with close physical
proximity to the Exchange’s electronic
trading system, which helps meet their
need for high performance processing
and low latency.
The co-location service is available to
any member that requests the service
and pays the monthly fee.4 The
Exchange believes that for the
foreseeable future it has sufficient space
to accommodate all members who may
request the co-location service. Other
than the co-location service, the
Exchange does not provide any colocating member with any advantage
over any other co-locating member or
any non-co-locating member with
respect to access to the Exchange’s
3 See Securities Exchange Act Release No. 57191
(January 24, 2008), 73 FR 5611 (January 30, 2008).
The fee for a Sponsored User is $20 per month per
‘‘U’’. See Securities Exchange Act Release
No. 58189 (July 18, 2008), 73 FR 43274 (July 24,
2008).
4 A member using the co-location service may
also pay certain CBOEdirect Connectivity Charges
that are set forth in Section 16 of the Fees Schedule.
These fees are charged for member connectivity to
CBOEdirect regardless of whether or not a member
is using the co-location service. These fees include
a $40 per month ‘‘CMi Application Server’’ fee for
server hardware used to connect to the CBOE CMi
API, a $40 per month ‘‘Network Access Port’’ fee for
use of the CMi API and a $40 per month ‘‘FIX Port’’
fee for use of the FIX API. See Securities Exchange
Act Release No. 57191, supra footnote 1. Each of the
foregoing fees are $80 per month for a Sponsored
User. See Securities Exchange Act Release No.
58189, supra footnote 1.
VerDate Nov<24>2008
16:21 Feb 09, 2010
Jkt 220001
trading system. The Exchange’s systems
are designed to minimize, to the extent
possible, any advantage for one member
over another. The foregoing statements
apply equally to both inbound and
outbound data.
The Exchange proposes to clarify its
Fees Schedule relating to co-location
fees in a couple of respects. First, the
Exchange proposes to move the colocation fees from Section 17 of the Fees
Schedule (Hybrid Fees) to Section 8
(Facility Fees) because these fees are
more accurately described as facility
fees. Second, the Exchange proposes to
clarify that the co-location fees are
charged in increments of 4 ‘‘U’’ (which
is equal to 7 inches) because the cabinet
space is available in 4 U increments.
2. Statutory Basis
By clarifying the Exchange’s fees for
its co-location service and providing a
fuller description of the service, the
Exchange believes the proposed rule
change is consistent with Section 6(b) of
the Securities Exchange Act of 1934,5 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. In addition, the Exchange
believes the proposed rule change
furthers the objectives of Section
6(b)(5) 7 of the Act in that it is designed
to promote just and equitable principles
of trade, remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
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
Within 35 days of the date of
publication of this notice in the Federal
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
7 15 U.S.C. 78f(b)(5).
6 15
PO 00000
Frm 00121
Fmt 4703
Sfmt 4703
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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–2010–008 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–2010–008. 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 Web site viewing and
printing 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
E:\FR\FM\10FEN1.SGM
10FEN1
Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices
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–
2010–008 and should be submitted on
or before March 3, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–2946 Filed 2–9–10; 8:45 am]
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61491; File No. SR–ISE–
2010–11]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Order
Granting Accelerated Approval to a
Proposed Rule Change Relating to the
Amounts That Direct Edge ECN, in Its
Capacity as an Introducing Broker for
Non-ISE Members, Passes Through to
Such Non-ISE Members
February 4, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
29, 2010, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) 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 selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons, and is
approving the proposal on an
accelerated basis.
sroberts on DSKD5P82C1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify the
amounts that Direct Edge ECN
(‘‘DECN’’), in its capacity as an
introducing broker for non-ISE
Members, passes through to such nonISE Members.
The text of the proposed rule change
is available on the Exchange’s Internet
Web site at https://www.ise.com.
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Nov<24>2008
16:21 Feb 09, 2010
Jkt 220001
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.
The self-regulatory organization has
prepared summaries, set forth in
sections A, B and C below, of the most
significant aspects of such statements.
1. Purpose
DECN, a facility of ISE, operates two
trading platforms, EDGX and EDGA. On
January 29, 2010, the ISE filed for
immediate effectiveness a proposed rule
change to amend Direct Edge ECN’s
(‘‘DECN’’) fee schedule for ISE
Members 3 to simplify its fee schedule
by (i) re-introducing a rebate; 4 (ii)
adding a fee for stocks priced less than
$1 that remove liquidity on EDGA; 5 (iii)
eliminating certain tables on the fee
schedule; 6 and (iv) making
3 References to ISE Members in this filing refer to
DECN Subscribers who are ISE Members.
4 In SR–ISE–2009–68, the Exchange amended the
criteria for meeting the Ultra Tier by allowing ISE
Members to receive a $0.0032 rebate per share for
securities priced at or above $1.00 when ISE
Members add liquidity on EDGX if the attributed
MPID posts 1% of the total consolidated volume
(‘‘TCV’’) in average daily volume (‘‘ADV’’). TCV is
defined as volume reported by all exchanges and
trade reporting facilities to the consolidated
transaction reporting plans for Tape A, B, and C
securities. See Securities Exchange Act Release No.
60769 (October 2, 2009), 74 FR 51903 (October 8,
2009) (SR– ISE–2009–68). In SR–ISE–2010–10, the
Exchange re-introduced an Ultra Tier rebate of
$0.0031 per share for competitive reasons.
The Ultra Tier rebate ($0.0031 per share), which
is a higher rebate than the next best rebate ($0.0029
per share) for adding liquidity on EDGX, is also
more difficult to reach, as a higher volume
threshold is required based on recent TCV figures.
For example, 1% of the average TCV for January
2010 (8.9 billion) was approximately 89 million
shares. This threshold far exceeds the criteria (no
minimum share volume requirement) to meet the
next best rebate of $0.0029 per share. In addition,
the higher rebate also results in part from lower
administrative costs associated with higher volume.
5 In SR–ISE–2010–10, the Exchange added a fee
to its schedule to provide that stocks priced less
than $1 will be charged 0.20% of the dollar value
if they do not meet the minimum average daily
share volume of 50,000 shares on EDGA to qualify
for the removal rate. A conforming footnote 1 was
added in the first table on the fee schedule (next
to the word ‘‘Free’’) for removing liquidity in stocks
less than $1.00 on EDGA.
6 In SR–ISE–2010–10, in order to further simplify
its fee schedule for Members, the Exchange deleted
PO 00000
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6743
typographical and clarifying changes to
the fee schedule.7 The changes made
the table on the fee schedule entitled ‘‘Fees per
Share for Special Order Types’’ as the Exchange
believed that the information on this schedule was
repetitive of the information in the ‘‘liquidity flags
and associated fees’’ table below it. As a result of
this deletion, the Exchange relocated footnote
numbers 4 and 5. Footnote 4 was relocated to ‘‘Flag
E’’ and also added to ‘‘Flag 5’’ to clarify it. Footnote
5 was relocated to ‘‘Flag O.’’ These are the
corresponding areas where these references belong.
7 Effective January 1, 2010, DECN adjusted its
pricing model to be more consistent with other
exchanges (even though DECN is not an exchange),
by de-linking the pricing structures of DECN to
eliminate pricing offers that are contingent on
activity across both platforms. See Securities
Exchange Act Release No. 61289 (January 5, 2010),
75 FR 1674 (January 12, 2010) (SR–ISE–2009–108).
Secondly, the Exchange simplified its fee schedule
in order to provide Members with greater
consistency and transparency during the period that
the EDGA and EDGX Exchanges are preparing to
launch, when volume will be transitioning from
DECN to the EDGA and EDGX Exchanges (assuming
their respective Form 1 applications are approved
by the Commission). On May 7, 2009, each of EDGA
Exchange, Inc. and EDGX Exchange, Inc. (the
‘‘EDGA and EDGX Exchanges’’) filed their respective
Form 1 applications to register as a national
securities exchange (‘‘Form 1’’) pursuant to Section
6 of the Securities Exchange Act of 1934. On July
30, 2009, the Exchanges filed Amendment No. 1 to
the Form 1 Application. On September 17, 2009,
the Form 1 was published in the Federal Register
for notice and comment. See Securities Exchange
Act Release No. 60651 (September 11, 2009), 74 FR
47827 (September 17, 2009). The Exchange believes
that these same goals were also advanced for the
most part in SR–ISE–2010–10, which made
technical and clarifying changes to DECN’s fee
schedule.
In SR–ISE–2009–108, to effectuate the foregoing,
the Exchange deleted certain charges in footnote 1
of the fee schedule, including one whereby ISE
Members were charged $0.0002 per share to add
liquidity on EDGA unless the attributed MPID
added a minimum average daily share volume,
measured monthly, of at least 50,000,000 shares on
EDGA. Prior to January 1, 2010, any attributed
MPID meeting the aforementioned minimum was
not charged to add liquidity on EDGA. Since this
charge was deleted from footnote 1, in SR–ISE–
2010–10, the Exchange deleted the corresponding
footnote 1 from flags B, V, Y, 3, and 4 from the
EDGA column as this footnote no longer applies.
In addition, in SR–ISE–2010–10, the Exchange reworded the first sentence in footnote 1 to clarify
that adding can include placing hidden orders.
In SR–ISE–2009–108, for securities priced less
than $1, the Exchange changed the fee for adding
liquidity on EDGX from free to a rebate of 0.15%
of the dollar value of the transaction. In SR– ISE–
2010–10, the Exchange corrected a typographical
error on its current schedule by adding parenthesis
around the ‘‘0.15% of dollar value’’ to clarify that
this was a rebate, and not a charge, for adding
liquidity on EDGX in securities priced less than $1.
In SR–ISE–2010–10, for Flag P, the Exchange
corrected a typographical error on the schedule by
inverting the columns that were displayed. For
EDGX, flag P was corrected to read ‘‘N/A’’ and for
EDGA it was corrected to read a rebate of $0.0025
per share (i.e., (0.0025)).
In SR–ISE–2010–10, the Exchange also clarified
Footnote 3. The second sentence of this footnote
states that the ‘‘rebate for adding liquidity on the
NYSE of $0.0010 per share.’’ This information was
already conveyed in Flag F and was deleted in
order to simplify and clarify the fee schedule. The
first sentence of footnote 3 was also deleted as it
E:\FR\FM\10FEN1.SGM
Continued
10FEN1
]]>Agencies
[Federal Register Volume 75, Number 27 (Wednesday, February 10, 2010)]
[Notices]
[Pages 6741-6743]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-2946]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61489; File No. SR-CBOE-2010-008]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Inc.; Notice of Filing of Proposed Rule Change Relating to Co-Location
Service Fees
February 4, 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 January 28, 2010, Chicago Board Options Exchange, Inc. (``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. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
Chicago Board Options Exchange, Inc. (``CBOE'' or ``Exchange'')
proposes to amend its Fees Schedule relating to co-location service
fees. 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, and at the Commission's Public Reference Room.
[[Page 6742]]
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
For a monthly fee, the Exchange provides members with cabinet space
in CBOE's building for placement of network and server hardware. The
fee is $10 per month per ``U'' of shelf space (which is equal to 1.75
inches).\3\ A member also receives power, cooling, security and
assistance with installation and connection of the equipment to the
Exchange's servers, at no additional charge. This ``co-location
service'' provides members with close physical proximity to the
Exchange's electronic trading system, which helps meet their need for
high performance processing and low latency.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 57191 (January 24,
2008), 73 FR 5611 (January 30, 2008). The fee for a Sponsored User
is $20 per month per ``U''. See Securities Exchange Act Release No.
58189 (July 18, 2008), 73 FR 43274 (July 24, 2008).
---------------------------------------------------------------------------
The co-location service is available to any member that requests
the service and pays the monthly fee.\4\ The Exchange believes that for
the foreseeable future it has sufficient space to accommodate all
members who may request the co-location service. Other than the co-
location service, the Exchange does not provide any co-locating member
with any advantage over any other co-locating member or any non-co-
locating member with respect to access to the Exchange's trading
system. The Exchange's systems are designed to minimize, to the extent
possible, any advantage for one member over another. The foregoing
statements apply equally to both inbound and outbound data.
---------------------------------------------------------------------------
\4\ A member using the co-location service may also pay certain
CBOEdirect Connectivity Charges that are set forth in Section 16 of
the Fees Schedule. These fees are charged for member connectivity to
CBOEdirect regardless of whether or not a member is using the co-
location service. These fees include a $40 per month ``CMi
Application Server'' fee for server hardware used to connect to the
CBOE CMi API, a $40 per month ``Network Access Port'' fee for use of
the CMi API and a $40 per month ``FIX Port'' fee for use of the FIX
API. See Securities Exchange Act Release No. 57191, supra footnote
1. Each of the foregoing fees are $80 per month for a Sponsored
User. See Securities Exchange Act Release No. 58189, supra footnote
1.
---------------------------------------------------------------------------
The Exchange proposes to clarify its Fees Schedule relating to co-
location fees in a couple of respects. First, the Exchange proposes to
move the co-location fees from Section 17 of the Fees Schedule (Hybrid
Fees) to Section 8 (Facility Fees) because these fees are more
accurately described as facility fees. Second, the Exchange proposes to
clarify that the co-location fees are charged in increments of 4 ``U''
(which is equal to 7 inches) because the cabinet space is available in
4 U increments.
2. Statutory Basis
By clarifying the Exchange's fees for its co-location service and
providing a fuller description of the service, the Exchange believes
the proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934,\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. In addition, the Exchange believes the proposed rule change
furthers the objectives of Section 6(b)(5) \7\ of the Act in that it is
designed to promote just and equitable principles of trade, remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
\7\ 15 U.S.C. 78f(b)(5).
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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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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-2010-008 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-2010-008. 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 Web site viewing and
printing 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
[[Page 6743]]
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-2010-008 and should be submitted on or before March 3, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-2946 Filed 2-9-10; 8:45 am]
BILLING CODE 8011-01-P
