Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated: Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Reduce the Payments That CBOE Makes to CBOE Trading Permit Holders That Participate in a Program Under Which CBOE Subsidizes the Costs of Providing and/or Using Certain Order Routing Functionalities, 39602-39603 [2010-16686]

Download as PDF 39602 Federal Register / Vol. 75, No. 131 / Friday, July 9, 2010 / Notices Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated: Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Reduce the Payments All submissions should refer to File That CBOE Makes to CBOE Trading Number SR–EDGA–2010–06. This file Permit Holders That Participate in a number should be included on the Program Under Which CBOE subject line if e-mail is used. To help the Subsidizes the Costs of Providing and/ Commission process and review your or Using Certain Order Routing comments more efficiently, please use Functionalities only one method. The Commission will post all comments on the Commission’s July 1, 2010. Internet Web site (https://www.sec.gov/ Pursuant to Section 19(b)(1) of the rules/sro.shtml). Copies of the Securities Exchange Act of 1934 submission, all subsequent (‘‘Act’’),1 and Rule 19b–4 thereunder,2 amendments, all written statements notice is hereby given that on June 30, 2010, Chicago Board Options Exchange, with respect to the proposed rule Incorporated (‘‘CBOE’’ or the change that are filed with the ‘‘Exchange’’) filed with the Securities Commission, and all written and Exchange Commission communications relating to the (‘‘Commission’’) the proposed rule proposed rule change between the Commission and any person, other than change as described in Items I, II, and III below, which Items have been those that may be withheld from the prepared by CBOE. The Commission is public in accordance with the publishing this notice to solicit provisions of 5 U.S.C. 552, will be comments on the proposed rule change available for Web site viewing and from interested persons. printing in the Commission’s Public Reference Room, 100 F Street, NE., I. Self-Regulatory Organization’s Washington, DC 20549, on official Statement of the Terms of Substance of the Proposed Rule Change business days between the hours of 10 a.m. and 3 p.m. Copies of such filing CBOE proposes to reduce the also will be available for inspection and payments that CBOE makes to CBOE copying at the principal office of the Trading Permit Holders that participate Exchange. All comments received will in a program under which CBOE be posted without change; the subsidizes the costs of providing and/or Commission does not edit personal using certain order routing identifying information from functionalities. This rule change does submissions. You should submit only not provide for any modifications to the information that you wish to make text of CBOE’s rules. The text of the available publicly. All submissions proposed rule change is available on the should refer to File Number SR–EDGA– Exchange’s Web site (https:// 2010–06 and should be submitted on or www.cboe.org/legal), at the Exchange’s before July 30, 2010. Office of the Secretary and at the Commissions Public Reference Room. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Elizabeth M. Murphy, Secretary. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change [FR Doc. 2010–16746 Filed 7–8–10; 8:45 am] 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. wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1 BILLING CODE 8010–01–P 1 15 8 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 15:17 Jul 08, 2010 2 17 Jkt 220001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00110 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, Proposed Rule Change 1. Purpose CBOE proposes to reduce the payments that CBOE makes to CBOE Trading Permit Holders that participate in a program under which CBOE subsidizes the costs of providing and/or using certain order routing functionalities.3 If a Trading Permit Holder has elected not to have CBOE perform certain marketing services on its behalf, the payment would be reduced, with respect to orders routed to CBOE through a participating Trading Permit Holder’s system, from $0.05 per contract to $0.04 per contract.4 If a member has elected to have CBOE perform marketing services on its behalf, the payment with respect to such orders would be reduced from $0.04 per contract to $0.03 per contract. The Exchange intends to make the change effective commencing August 1, 2010. CBOE is not proposing any other changes in the program. CBOE stated in SR–CBOE–2007–34, and affirmed in SR–CBOE–2008–27, that nothing about the subsidy program would relieve any CBOE Trading Permit Holder that is using an order routing functionality whose provider is participating in the program from complying with its best execution obligations.5 Those statements remain true with respect to the program as CBOE is proposing to revise it. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (‘‘Act’’) 6, in general, and furthers the objectives of Section 6(b)(4) 7 of the Act in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among CBOE Trading Permit Holders and other persons using its facilities. 3 The order router subsidy program is described in SR–CBOE–2007–34 (see Securities Exchange Act Release No. 55629 (April 13, 2007), 72 FR 19992 (April 20, 2007) (SR–CBOE–2007–34)) as supplemented by SR–CBOE–2008–27 (see Securities Exchange Act Release No. 57498 (March 14, 2008), 73 FR 55 (March 20, 2008) (SR–CBOE– 2008–27)). 4 The marketing services that CBOE provides to Trading Permit Holders electing to have CBOE provide such services are described on page 5 of SR–CBOE–2007–34. 5 SR–CBOE–2007–34, pp. 5–6; SR–CBOE–2008– 27, p 4. 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(4). E:\FR\FM\09JYN1.SGM 09JYN1 Federal Register / Vol. 75, No. 131 / Friday, July 9, 2010 / Notices 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) of the Act 8 and subparagraph (f)(2) of Rule 19b–4 9 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: wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1 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–2010–066 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–2010–066. 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/ 8 15 9 17 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– 2010–066 and should be submitted on or before August 9, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Elizabeth M. Murphy, Secretary. [FR Doc. 2010–16686 Filed 7–8–10; 8:45 am] BILLING CODE P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62434; File No. SR–FINRA– 2009–089] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Order Approving Proposed FINRA Rule 6490 (Processing of Company-Related Actions) To Clarify the Scope of FINRA’s Authority When Processing Documents Related to Announcements for Company-Related Actions for NonExchange Listed Securities and To Implement Fees for Such Services July 1, 2010. I. Introduction On December 7, 2009, Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). VerDate Mar<15>2010 15:17 Jul 08, 2010 10 17 Jkt 220001 PO 00000 CFR 200.30–3(a)(12). Frm 00111 Fmt 4703 Sfmt 4703 39603 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 proposed FINRA Rule 6490 (Processing of Company-Related Actions), to clarify the scope of FINRA’s regulatory authority and discretionary power when processing documents relating to announcements for company-related actions for non-exchange listed equity and debt securities (collectively ‘‘OTC Securities’’) and to implement fees for such services. The proposed rule change was published for comment in the Federal Register on December 28, 2009.3 The Commission received two comment letters on the proposed rule change,4 and a letter from FINRA responding to the comment letters.5 This order approves the proposed rule change. II. Background FINRA performs several critical functions in the over-the-counter (‘‘OTC’’) market. FINRA currently operates the OTC Bulletin Board (‘‘OTCBB’’), which provides a mechanism for FINRA members to quote certain registered OTC equity securities. FINRA also operates the OTC Reporting Facility, which provides a mechanism for FINRA members to report, for both regulatory and dissemination purposes, transactions in OTC equity securities. More broadly, FINRA also oversees the activities of broker-dealer member firms, and their associated persons, that quote and trade OTC Securities to ensure their compliance with the Federal securities laws and FINRA rules. In addition to these functions, FINRA reviews and processes requests to announce or publish certain actions taken by issuers of OTC Securities. FINRA performs other more limited functions relating to the processing of certain actions by non-exchange listed companies whose securities are traded in the OTC market. In this regard, FINRA reviews and processes documents relating to announcements for company-related actions pursuant to Rule 10b–17 under the Act (‘‘Rule 10b– 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 61189 (December 17, 2009), 74 FR 68648 (‘‘Notice’’). 4 See Letter to Elizabeth M. Murphy, Secretary, Commission, from Liz Heese, Managing Director, Issuer Services, Pink OTC Markets, Inc. (‘‘Pink OTC’’), dated January 20, 2010 (‘‘Pink OTC Letter’’), and Letter to Elizabeth M. Murphy, Secretary, Commission, from Stephen J. Nelson, The Nelson Law Firm, LLC (‘‘Nelson Law Firm’’), dated February 18, 2010 (‘‘Nelson Law Firm Letter’’). 5 See Letter from Kosha K. Dalal, Associate Vice President and Associate General Counsel, FINRA, to Elizabeth M. Murphy, Secretary, Commission, dated April 30, 2010 (‘‘FINRA Response Letter’’). 2 17 E:\FR\FM\09JYN1.SGM 09JYN1

Agencies

[Federal Register Volume 75, Number 131 (Friday, July 9, 2010)]
[Notices]
[Pages 39602-39603]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-16686]


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SECURITIES AND EXCHANGE COMMISSION


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated: Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Reduce the Payments That CBOE Makes to CBOE Trading 
Permit Holders That Participate in a Program Under Which CBOE 
Subsidizes the Costs of Providing and/or Using Certain Order Routing 
Functionalities

July 1, 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 June 30, 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. 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 Substance 
of the Proposed Rule Change

    CBOE proposes to reduce the payments that CBOE makes to CBOE 
Trading Permit Holders that participate in a program under which CBOE 
subsidizes the costs of providing and/or using certain order routing 
functionalities. This rule change does not provide for any 
modifications to the text of CBOE's rules. 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 Commissions 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, Proposed Rule Change

1. Purpose
    CBOE proposes to reduce the payments that CBOE makes to CBOE 
Trading Permit Holders that participate in a program under which CBOE 
subsidizes the costs of providing and/or using certain order routing 
functionalities.\3\ If a Trading Permit Holder has elected not to have 
CBOE perform certain marketing services on its behalf, the payment 
would be reduced, with respect to orders routed to CBOE through a 
participating Trading Permit Holder's system, from $0.05 per contract 
to $0.04 per contract.\4\ If a member has elected to have CBOE perform 
marketing services on its behalf, the payment with respect to such 
orders would be reduced from $0.04 per contract to $0.03 per contract. 
The Exchange intends to make the change effective commencing August 1, 
2010.
---------------------------------------------------------------------------

    \3\ The order router subsidy program is described in SR-CBOE-
2007-34 (see Securities Exchange Act Release No. 55629 (April 13, 
2007), 72 FR 19992 (April 20, 2007) (SR-CBOE-2007-34)) as 
supplemented by SR-CBOE-2008-27 (see Securities Exchange Act Release 
No. 57498 (March 14, 2008), 73 FR 55 (March 20, 2008) (SR-CBOE-2008-
27)).
    \4\ The marketing services that CBOE provides to Trading Permit 
Holders electing to have CBOE provide such services are described on 
page 5 of SR-CBOE-2007-34.
---------------------------------------------------------------------------

    CBOE is not proposing any other changes in the program. CBOE stated 
in SR-CBOE-2007-34, and affirmed in SR-CBOE-2008-27, that nothing about 
the subsidy program would relieve any CBOE Trading Permit Holder that 
is using an order routing functionality whose provider is participating 
in the program from complying with its best execution obligations.\5\ 
Those statements remain true with respect to the program as CBOE is 
proposing to revise it.
---------------------------------------------------------------------------

    \5\ SR-CBOE-2007-34, pp. 5-6; SR-CBOE-2008-27, p 4.
---------------------------------------------------------------------------

2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Securities Exchange Act of 1934 (``Act'') \6\, in general, and furthers 
the objectives of Section 6(b)(4) \7\ of the Act in particular, in that 
it is designed to provide for the equitable allocation of reasonable 
dues, fees, and other charges among CBOE Trading Permit Holders and 
other persons using its facilities.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).

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

[[Page 39603]]

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) of the Act \8\ and subparagraph (f)(2) of Rule 19b-4 \9\ 
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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 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-2010-066 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-2010-066. 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-2010-066 and should be 
submitted on or before August 9, 2010.


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-16686 Filed 7-8-10; 8:45 am]
BILLING CODE P
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