Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating To Temporary Membership Status and Interim Trading Permit Access Fees, 11962-11964 [2010-5302]
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11962
Federal Register / Vol. 75, No. 48 / Friday, March 12, 2010 / Notices
Act and, in particular, provides for an
equitable allocation of reasonable fees
among its issuers consistent with
Section 6(b)(4) of the Act, does not
unfairly discriminate between issuers
consistent with Section 6(b)(5) of the
Act, and is consistent with Section
6(b)(8) of the Act.
As to the concerns raised by Business
Wire that the offering of IDSs by NOCS
creates a conflict of interest with
Nasdaq’s self-regulatory functions since,
among other things, Nasdaq enforces
rules relating to the dissemination of
material information by listed
companies, Nasdaq has represented that
it has effectively separated its regulatory
functions from its business functions,
and that its business functions,
including those of NOCS, in no way
influence the regulatory oversight of
listed companies and their disclosure
requirements.58 The Commission
believes that Nasdaq’s assurances
concerning the separation of its business
and regulatory functions adequately
address the conflict of interest concerns
raised by Business Wire. The
Commission also notes that it oversees
Nasdaq as a registered national
securities exchange, including the
performance of its regulatory functions
in a manner consistent with the Act.
With respect to its application,
annual, and entry fees, Nasdaq has
represented that the proposed increase
in fees better reflects the costs
associated with, among other things,
listing application reviews, Nasdaq’s
new on-line application center, and
enhancements to its listings compliance
systems.59 Moreover, Nasdaq notes that
the number of listed companies on
Nasdaq has declined approximately
10% since 2006, so that its regulatory
costs must be allocated among fewer
listed companies.60 Nasdaq further
notes that, despite the decline in
listings, because of enhancements to its
compliance programs and changes in
regulatory requirements, the number of
issuer filings that it reviews has
substantially increased since 2002, and
that the workload to monitor
compliance in recent years has
increased due to market conditions and
other issues.
The Commission notes that Nasdaq’s
fees are comparable to and, in some
instances, less than similar fees of the
New York Stock Exchange.61 Further,
the Commission did not receive any
comment letters from currently-listed
Nasdaq companies or prospective listed
companies opposing the fee increase.
Thus, the Commission finds that
Nasdaq’s proposed fees are reasonable,
equitably allocated among issuers, and
otherwise consistent with the
requirements of the Act.
Finally, with respect to the increased
fee for written interpretations, Nasdaq
has represented that the fee increase is
reasonable given the costs incurred by
Nasdaq in connection with such
requests. Nasdaq is proposing to charge
$15,000 for all written interpretation
requests, and eliminate the distinction
between a regular request, which
currently costs $5,000, and an expedited
request which currently costs $15,000.
Nasdaq noted that since January 2008,
the large majority of requests for a
written interpretation (nearly 75%) are
expedited reviews. While the
Commission would be concerned if the
written interpretive fee was set at a level
so high that issuers were deterred from
seeking such written interpretations
when needed, this does not appear to be
the case since the majority of issuers
today elect to pay $15,000 for an
expedited review. Accordingly, the
Commission believes that the proposed
fee increase provides for the equitable
allocation of reasonable fees among
issuers consistent with Section 6(b)(4) of
the Act, does not unfairly discriminate
between issuers consistent with Section
6(b)(5) of the Act, and is otherwise
consistent with the requirements of the
Act. Moreover, the Commission notes
that with respect to interpretations,
issuers will still continue to receive oral
interpretations at no charge.62
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,63 that the
proposed rule change (SR–Nasdaq2009–081) be, and it hereby is,
approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.64
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–5413 Filed 3–11–10; 8:45 am]
BILLING CODE 8011–01–P
58 Telephone
conversation on March 5, 2010
between Arnold Golub, Vice President and
Associate General Counsel, Nasdaq and Sharon
Lawson, Senior Special Counsel, Commission.
59 See Nasdaq Letter 4.
60 See Nasdaq Letter 3.
61 See NYSE Sections 902.02 and 902.03 of the
NYSE Listed Company Manual.
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62 See
supra note 17.
U.S.C. 78s(b)(2).
64 17 CFR 200.30–3(a)(12).
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61660; File No. SR–CBOE–
2010–024]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating To Temporary
Membership Status and Interim
Trading Permit Access Fees
March 5, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
February 26, 2010, the 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 the CBOE. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to adjust (i) the
monthly access fee for persons granted
temporary CBOE membership status
(‘‘Temporary Members’’) pursuant to
Interpretation and Policy .02 under
CBOE Rule 3.19 (‘‘Rule 3.19.02’’) and (ii)
the monthly access fee for Interim
Trading Permit (‘‘ITP’’) holders under
CBOE Rule 3.27. The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.org/Legal/), at the Exchange’s
Office of the Secretary, 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. The CBOE has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
63 15
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U.S.C. 78s(b)(1).
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Federal Register / Vol. 75, No. 48 / Friday, March 12, 2010 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
srobinson on DSKHWCL6B1PROD with NOTICES
The current access fee for Temporary
Members under Rule 3.19.02 2 and the
current access fee for ITP holders under
Rule 3.27 3 are both $5,433 per month.
Both access fees are currently set at the
indicative lease rate (as defined below)
for February 2010. The Exchange
proposes to adjust both access fees
effective at the beginning of March 2010
to be equal to the indicative lease rate
for March 2010 (which is $4,875).
Specifically, the Exchange proposes to
revise both the Temporary Member
access fee and the ITP access fee to be
$4,875 per month commencing on
March 1, 2010.
The indicative lease rate is defined
under Rule 3.27(b) as the highest
clearing firm floating monthly rate 4 of
the CBOE Clearing Members that assist
in facilitating at least 10% of the CBOE
transferable membership leases.5 The
Exchange determined the indicative
lease rate for March 2010 by polling
each of these Clearing Members and
obtaining the clearing firm floating
monthly rate designated by each of
these Clearing Members for that month.
The Exchange used the same process
to set the proposed Temporary Member
and ITP access fees that it used to set
the current Temporary Member and ITP
access fees. The only difference is that
the Exchange used clearing firm floating
monthly rate information for the month
of March 2010 to set the proposed
access fees (instead of clearing firm
floating monthly rate information for the
month of February 2010 as was used to
set the current access fees) in order to
take into account changes in clearing
firm floating monthly rates for the
month of March 2010.
The Exchange believes that the
process used to set the proposed
2 See Securities Exchange Act Release No. 56458
(September 18, 2007), 72 FR 54309 (September 24,
2007) (SR–CBOE–2007–107) for a description of the
Temporary Membership status under Rule 3.19.02.
3 See Securities Exchange Act Release No. 58178
(July 17, 2008), 73 FR 42634 (July 22, 2008) (SR–
CBOE–2008–40) for a description of the Interim
Trading Permits under Rule 3.27.
4 Rule 3.27(b) defines the clearing firm floating
monthly rate as the floating monthly rate that a
Clearing Member designates, in connection with
transferable membership leases that the Clearing
Member assisted in facilitating, for leases that
utilize that monthly rate.
5 The concepts of an indicative lease rate and of
a clearing firm floating month rate were previously
utilized in the CBOE rule filings that set and
adjusted the Temporary Member access fee. Both
concepts are also codified in Rule 3.27(b) in relation
to ITPs.
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Temporary Member access fee and the
proposed Temporary Member access fee
itself are appropriate for the same
reasons set forth in CBOE rule filing SR–
CBOE–2008–12 with respect to the
original Temporary Member access fee.6
Similarly, the Exchange believes that
the process used to set the proposed ITP
access fee and the proposed ITP access
fee itself are appropriate for the same
reasons set forth in CBOE rule filing SR–
CBOE–2008–77 with respect to the
original ITP access fee.7
Each of the proposed access fees will
remain in effect until such time either
that the Exchange submits a further rule
filing pursuant to Section 19(b)(3)(A)(ii)
of the Act 8 to modify the applicable
access fee or the applicable status (i.e.,
the Temporary Membership status or
the ITP status) is terminated.
Accordingly, the Exchange may, and
likely will, further adjust the proposed
access fees in the future if the Exchange
determines that it would be appropriate
to do so taking into consideration lease
rates for transferable CBOE
memberships prevailing at that time.
The procedural provisions of the
CBOE Fee Schedule related to the
assessment of each proposed access fee
are not proposed to be changed and will
remain the same as the current
procedural provisions relating to the
assessment of that access fee.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,9 in general, and
furthers the objectives of Section 6(b)(4)
of the Act,10 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees, and
other charges among 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
6 See Securities Exchange Act Release No. 57293
(February 8, 2008), 73 FR 8729 (February 14, 2008)
(SR–CBOE–2008–12), which established the
original Temporary Member access fee, for detail
regarding the rationale in support of the original
Temporary Member access fee and the process used
to set that fee, which is also applicable to this
proposed change to the Temporary Member access
fee as well.
7 See Securities Exchange Act Release No. 58200
(July 21, 2008), 73 FR 43805 (July 28, 2008) (SR–
CBOE–2008–77), which established the original ITP
access fee, for detail regarding the rationale in
support of the original ITP access fee and the
process used to set that fee, which is also applicable
to this proposed change to the ITP access fee as
well.
8 15 U.S.C. 78s(b)(3)(A)(ii).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4).
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burden on competition that is 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
Because the foregoing rule change
establishes or changes a due, fee, or
other charge imposed by the Exchange,
it has become effective pursuant to
Section 19(b)(3)(A) of the Act 11 and
subparagraph (f)(2) of Rule 19b–4 12
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:
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–2010–024 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–2010–024. 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
11 15
12 17
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
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Federal Register / Vol. 75, No. 48 / Friday, March 12, 2010 / Notices
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 No. SR–CBOE–
2010–024 and should be submitted on
or before April 2, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–5302 Filed 3–11–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61667; File No. SR–Phlx–
2010–36]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Establish
Procedures To Prevent Informational
Advantages Resulting From the
Affiliation Between PHLX and NOS
srobinson on DSKHWCL6B1PROD with NOTICES
March 5, 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 February
26, 2010, NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’ or ‘‘Exchange’’) 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 Exchange has
designated the proposed rule change as
constituting a non-controversial rule
change under Rule 19b–4(f)(6) under the
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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 Substance of
the Proposed Rule Change
The Exchange proposes a rule change
to establish procedures designed to
manage potential informational
advantages resulting from the affiliation
between the Exchange and NASDAQ
Options Services, LLC (‘‘NOS’’), a
registered broker-dealer and a Phlx
member.
The text of the proposed rule change
is below. Proposed new language is
italicized; proposed deletions are in
[brackets].
Rule 985. Affiliation and Ownership
Restrictions
(a)–(b) No change.
(c) The NASDAQ OMX Group, Inc.,
which owns NASDAQ Options Services,
LLC and the Exchange, shall establish
and maintain procedures and internal
controls reasonably designed to ensure
that NASDAQ Options Services, LLC
does not develop or implement changes
to its system on the basis of non-public
information regarding planned changes
to the Exchange’s systems, obtained as
a result of its affiliation with the
Exchange, until such information is
available generally to similarly situated
Exchange members in connection with
the provision of inbound routing to the
Exchange.
*
*
*
*
*
Rule 1080. Phlx XL and Phlx XL II
(a)–(l) No change.
(m) (i)–(ii) No change.
(iii)(A)–(B) No change.
(C) The Exchange shall establish and
maintain procedures and internal
controls reasonably designed to
adequately restrict the flow of
confidential and proprietary
information between the Exchange and
the Routing Facility, and any other
entity, including any affiliate of the
Routing Facility[, and, if the Routing
Facility or any of its affiliates engages in
any other business activities other than
providing routing services to the
Exchange, between the segment of the
Routing Facility or affiliate that
provides the other business activities
and the routing services].
(D) No change.
(iv) No change.
*
*
*
*
*
1 15
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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
a. Background
The Exchange is a wholly-owned
subsidiary of The NASDAQ OMX
Group, Inc. (‘‘NASDAQ OMX’’), a
Delaware corporation. NASDAQ OMX
also indirectly owns NASDAQ Options
Services, LLC (‘‘NOS’’ or the ‘‘Routing
Facility’’), a registered broker-dealer and
a Phlx member. Thus, NOS is deemed
an affiliate of Phlx.
The Exchange is proposing that NOS
be permitted to route certain orders
from The NASDAQ Option Market
(‘‘NOM’’) to the Exchange without
checking the NOM book prior to
routing. NOM is an options market
operated by The NASDAQ Stock Market
(the ‘‘NASDAQ Exchange’’) and NOS is
the approved outbound routing facility
of the NASDAQ Exchange for NOM.
With the exception of Exchange Direct
Orders, all routable orders for options
that are trading on NOM check the NOM
book prior to routing. In addition, NOS
also routes orders in options that are not
trading on NOM (referred to in the NOM
Rules as ‘‘Non-System Securities’’).
When routing orders in options that are
not listed and open for trading on NOM,
NOS is not regulated as a facility of the
NASDAQ Exchange but rather as a
broker-dealer regulated by its designated
examining authority. As provided by
Chapter IV, Section 5 of the NOM Rules,
all orders routed by NOS under these
circumstances are routed to away
markets that are at the best price, and
solely on an immediate-or-cancel basis.
Under NOM Rule Chapter VI, Section
11: (1) NOM routes orders in options via
NOS, which serves as the sole ‘‘routing
facility’’ of NOM; (2) the sole function of
the routing facility is to route orders in
options to away markets pursuant to
NOM rules, solely on behalf of NOM; (3)
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]]>Agencies
[Federal Register Volume 75, Number 48 (Friday, March 12, 2010)]
[Notices]
[Pages 11962-11964]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-5302]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61660; File No. SR-CBOE-2010-024]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating To Temporary Membership Status and Interim Trading
Permit Access Fees
March 5, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on February 26, 2010, the
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 the CBOE. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to adjust (i) the monthly access fee for persons
granted temporary CBOE membership status (``Temporary Members'')
pursuant to Interpretation and Policy .02 under CBOE Rule 3.19 (``Rule
3.19.02'') and (ii) the monthly access fee for Interim Trading Permit
(``ITP'') holders under CBOE Rule 3.27. The text of the proposed rule
change is available on the Exchange's Web site (https://www.cboe.org/Legal/), at the Exchange's Office of the Secretary, 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. The CBOE has prepared summaries, set forth in Sections
A, B, and C below, of the most significant aspects of such statements.
[[Page 11963]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The current access fee for Temporary Members under Rule 3.19.02 \2\
and the current access fee for ITP holders under Rule 3.27 \3\ are both
$5,433 per month. Both access fees are currently set at the indicative
lease rate (as defined below) for February 2010. The Exchange proposes
to adjust both access fees effective at the beginning of March 2010 to
be equal to the indicative lease rate for March 2010 (which is $4,875).
Specifically, the Exchange proposes to revise both the Temporary Member
access fee and the ITP access fee to be $4,875 per month commencing on
March 1, 2010.
---------------------------------------------------------------------------
\2\ See Securities Exchange Act Release No. 56458 (September 18,
2007), 72 FR 54309 (September 24, 2007) (SR-CBOE-2007-107) for a
description of the Temporary Membership status under Rule 3.19.02.
\3\ See Securities Exchange Act Release No. 58178 (July 17,
2008), 73 FR 42634 (July 22, 2008) (SR-CBOE-2008-40) for a
description of the Interim Trading Permits under Rule 3.27.
---------------------------------------------------------------------------
The indicative lease rate is defined under Rule 3.27(b) as the
highest clearing firm floating monthly rate \4\ of the CBOE Clearing
Members that assist in facilitating at least 10% of the CBOE
transferable membership leases.\5\ The Exchange determined the
indicative lease rate for March 2010 by polling each of these Clearing
Members and obtaining the clearing firm floating monthly rate
designated by each of these Clearing Members for that month.
---------------------------------------------------------------------------
\4\ Rule 3.27(b) defines the clearing firm floating monthly rate
as the floating monthly rate that a Clearing Member designates, in
connection with transferable membership leases that the Clearing
Member assisted in facilitating, for leases that utilize that
monthly rate.
\5\ The concepts of an indicative lease rate and of a clearing
firm floating month rate were previously utilized in the CBOE rule
filings that set and adjusted the Temporary Member access fee. Both
concepts are also codified in Rule 3.27(b) in relation to ITPs.
---------------------------------------------------------------------------
The Exchange used the same process to set the proposed Temporary
Member and ITP access fees that it used to set the current Temporary
Member and ITP access fees. The only difference is that the Exchange
used clearing firm floating monthly rate information for the month of
March 2010 to set the proposed access fees (instead of clearing firm
floating monthly rate information for the month of February 2010 as was
used to set the current access fees) in order to take into account
changes in clearing firm floating monthly rates for the month of March
2010.
The Exchange believes that the process used to set the proposed
Temporary Member access fee and the proposed Temporary Member access
fee itself are appropriate for the same reasons set forth in CBOE rule
filing SR-CBOE-2008-12 with respect to the original Temporary Member
access fee.\6\ Similarly, the Exchange believes that the process used
to set the proposed ITP access fee and the proposed ITP access fee
itself are appropriate for the same reasons set forth in CBOE rule
filing SR-CBOE-2008-77 with respect to the original ITP access fee.\7\
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\6\ See Securities Exchange Act Release No. 57293 (February 8,
2008), 73 FR 8729 (February 14, 2008) (SR-CBOE-2008-12), which
established the original Temporary Member access fee, for detail
regarding the rationale in support of the original Temporary Member
access fee and the process used to set that fee, which is also
applicable to this proposed change to the Temporary Member access
fee as well.
\7\ See Securities Exchange Act Release No. 58200 (July 21,
2008), 73 FR 43805 (July 28, 2008) (SR-CBOE-2008-77), which
established the original ITP access fee, for detail regarding the
rationale in support of the original ITP access fee and the process
used to set that fee, which is also applicable to this proposed
change to the ITP access fee as well.
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Each of the proposed access fees will remain in effect until such
time either that the Exchange submits a further rule filing pursuant to
Section 19(b)(3)(A)(ii) of the Act \8\ to modify the applicable access
fee or the applicable status (i.e., the Temporary Membership status or
the ITP status) is terminated. Accordingly, the Exchange may, and
likely will, further adjust the proposed access fees in the future if
the Exchange determines that it would be appropriate to do so taking
into consideration lease rates for transferable CBOE memberships
prevailing at that time.
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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
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The procedural provisions of the CBOE Fee Schedule related to the
assessment of each proposed access fee are not proposed to be changed
and will remain the same as the current procedural provisions relating
to the assessment of that access fee.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\9\ in general, and furthers the
objectives of Section 6(b)(4) of the Act,\10\ in particular, in that it
is designed to provide for the equitable allocation of reasonable dues,
fees, and other charges among persons using its facilities.
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\9\ 15 U.S.C. 78f(b).
\10\ 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 that is 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
Because the foregoing rule change establishes or changes a due,
fee, or other charge imposed by the Exchange, it has become effective
pursuant to Section 19(b)(3)(A) of the Act \11\ and subparagraph (f)(2)
of Rule 19b-4 \12\ 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.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(2).
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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-2010-024 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-2010-024. 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
[[Page 11964]]
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 No. SR-CBOE-2010-024 and should be submitted on or before April 2,
2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-5302 Filed 3-11-10; 8:45 am]
BILLING CODE 8011-01-P
