Self-Regulatory Organizations; Chicago Board Options Exchange, Inc.; Notice of Filing of Proposed Rule Change Relating to Co-location Service Fees, 6764-6765 [2010-2955]
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6764
Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices
time as the Commission may designate
if consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 10 and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of filing.11 However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange requested that the
Commission waive the 30-day operative
delay, as specified in Rule 19b–
4(f)(6)(iii),12 which would make the rule
change effective and operative upon
filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because the proposal is based on a
recent Commission-approved proposal
submitted by another options
exchange 13 and therefore does not raise
any novel regulatory issues. Further,
waiving the operative delay will allow
the Exchange to commence quoting all
series of IWM and SPY in increments of
$0.01 effective February 1, 2010,
contemporaneously with other options
exchanges. Accordingly, the
Commission designates the proposed
rule change as operative upon filing
with the Commission.14
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
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the self-regulatory
organization to give the Commission notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
CBOE has satisfied this requirement.
12 17 CFR 240.19b–4(f)(6)(iii).
13 See supra note 5.
14 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
sroberts on DSKD5P82C1PROD with NOTICES
11 17
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16:21 Feb 09, 2010
Jkt 220001
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
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–2010–009 on the
subject line.
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Inc.; Notice of Filing of Proposed Rule
Change Relating to Co-location
Service Fees
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–2010–009. 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 the filing also
will be available for inspection and
copying at the principal office of the
self-regulatory organization. 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–2010–009 and
should be submitted on or before March
3, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–2865 Filed 2–9–10; 8:45 am]
[Release No. 34–61489; File No. SR–CBOE–
2010–008]
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 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 availableon the
Exchange’s Web site (https://
www.cboe.org/legal), at the Exchange’s
principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
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
BILLING CODE 8011–01–P
1 15
15 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices
$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
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
sroberts on DSKD5P82C1PROD with NOTICES
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
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.
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16:21 Feb 09, 2010
Jkt 220001
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
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
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
7 15 U.S.C. 78f(b)(5).
• 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
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. 2010–2955 Filed 2–9–10; 8:45 am]
BILLING CODE 8011–01–P
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6 15
PO 00000
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CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 75, Number 27 (Wednesday, February 10, 2010)]
[Notices]
[Pages 6764-6765]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-2955]
-----------------------------------------------------------------------
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
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 availableon the
Exchange's Web site (https://www.cboe.org/legal), at the Exchange's
principal office, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, 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
[[Page 6765]]
$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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 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\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-2955 Filed 2-9-10; 8:45 am]
BILLING CODE 8011-01-P
