Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Fees Schedule, 47329-47330 [2010-19365]
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Federal Register / Vol. 75, No. 150 / Thursday, August 5, 2010 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62579; File No. SR–CBOE–
2010–068]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Fees Schedule
July 28, 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 July 16,
2010, Chicago Board Options Exchange,
Incorporated (‘‘Exchange’’ or ‘‘CBOE’’)
filed with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
The Exchange has designated this
proposal as one establishing or changing
a due, fee, or other charge imposed by
CBOE under Section 19(b)(3)(A)(ii) of
the Act 3 and Rule 19b–4(f)(2)
thereunder.4 The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
mstockstill on DSKH9S0YB1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to amend its
Fees Schedule to make changes related
to options on Exchange-Traded Notes
and Exchange-Traded Funds. The text of
the proposed rule change is available on
the Exchange’s Web site at https://
www.cboe.org/Legal, at the Exchange’s
Office of the Secretary, on the
Commission’s Web site at https://
www.sec.gov, 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, 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 those 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 parts of such
statements.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
2 17
VerDate Mar<15>2010
17:52 Aug 04, 2010
Jkt 220001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Exchange-Traded Note (‘‘ETN’’)
Options 5
The first change being proposed by
this filing is to codify the Exchange’s
existing practice of assessing fees for
transactions in ETN options at the same
rates charged for Exchange-Traded Fund
(‘‘ETF’’) options.6 To affect this change,
the Exchange is proposing to amend
Section 1, Index Options, to the Fees
Schedule by including references to
ETNs throughout that section. The
transaction fees for ETN options are as
follows:
• $0.20 per contract for Market-Maker
and Designated Primary Market-Maker
transactions;7
• $0.20 per contract for Clearing
Trading Permit Holder proprietary
transactions;
• $0.25 per contract for manually
executed broker-dealer transactions;
• $0.45 per contract for electronically
executed broker-dealer transactions;
• $0.20 per contract for voluntary
professional transactions;
• $0.20 per contract for professional
transactions;
• $0.18 per contract for customer
transactions; and
• $0.10 per contract CFLEX surcharge
fee.
The Exchange is also proposing to
amend Section 2, Marketing Fee, to the
Fees Schedule to codify the marketing
fee ($0.25) that will be assessed to any
ETN options classes that participate in
the Penny Pilot. Currently, there are no
ETN options classes in the Penny Pilot.
In addition, the Exchange is
proposing to add a reference to ETN
options to Footnote 6 regarding the
assessment of the marketing fee, which
is $0.65 per contract for those classes
not in the Penny Pilot.8
The Exchange is also proposing to add
a reference to ETN options to Footnote
5 ETN options are also referred to as ‘‘Index
Linked Securities’’ in Interpretation and Policy .13
to Rule 5.3. See also Securities Exchange Act
Release No. 58204 (July 22, 2008), 73 FR 43807
(July 28, 2008) (order approving proposal to list and
trade ETN options) (SR–CBOE–2008–64).
6 See e.g., Securities Exchange Act Release No.
61696 (March 12, 2010), 75 FR 13174 (March 18,
2010) (noting the Exchange’s belief that the
marketplace and investors expect ETN options to
trade in a similar manner to ETF options) (SR–
CBOE–2010–005).
7 This is the standard rate that is subject to the
Liquidity Provider Sliding Scale as set forth in
Footnote 10 to the Fees Schedule.
8 See Section 2, Marketing Fee, of the Fees
Schedule.
PO 00000
Frm 00072
Fmt 4703
Sfmt 4703
47329
9 regarding the waiver of transaction
fees for customer orders of 99 contracts
or less and the charging of any leg of a
complex order in ETN options that
exceed 99 contracts, even if the leg is
only partially executed below the 99
contract threshold.
Lastly, the Exchange is proposing to
add a reference to ETN options to
Section 18, Customer Large Trade
Discount, which provides that regular
customer transaction fees will only be
charged up to the first 3,000 contracts.
Exchange-Traded Note and HOLDRs
Options
The second change being proposed by
this filing is to amend Section 2,
Marketing Fee, to the Fees Schedule to
codify the marketing fee ($0.25) that
will be assessed to any ETF and Holding
Company Depository Receipts
(‘‘HOLDRs’’) option classes that
participate in the Penny Pilot (other
than those ETF options that are either
assessed a modified marketing fee or no
marketing fee).
In addition, the Exchange notes that
options on the iShares MSCI Emerging
Markets Index Fund (‘‘EEM’’) and the
iShares MSCI Taiwan Index Fung [sic]
(‘‘EWT’’) are not assessed a marketing
fee.9 EEM and EWT are classes that
participate in the Penny Pilot. Similar to
QQQQ and IWM (which are not
assessed a marketing fee and participate
in the Penny Pilot), the Exchange is
proposing to add EEM and EWT to
QQQQ and IWM to Section 2, Marketing
Fee, to clarify that no marketing fee
applies to these Penny Pilot classes.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Act,10 in general, and furthers the
objectives of Section 6(b)(4) 11 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.
The Exchange believes the fee changes
proposed by this filing are equitable and
reasonable in that [sic] will codify the
Exchange’s existing practice of assessing
fees for ETN options in a manner similar
to ETF options. In addition, the changes
proposed by this filing clarify CBOE’s
Fees Schedule.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will impose any
9 See
Footnote 6 of the Fees Schedule.
U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(4).
10 15
E:\FR\FM\05AUN1.SGM
05AUN1
47330
Federal Register / Vol. 75, No. 150 / Thursday, August 5, 2010 / Notices
burden on competition 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
The Exchange neither solicited nor
received comments on the proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed 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 12 and subparagraph (f)(2) of Rule
19b–4 13 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:
mstockstill on DSKH9S0YB1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2010–068 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–2010–068. 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
publicly available. All submissions
should refer to File Number SR–CBOE–
2010–068 and should be submitted on
or before August 26, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
VerDate Mar<15>2010
17:52 Aug 04, 2010
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 those 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 parts of such
statements.
SECURITIES AND EXCHANGE
COMMISSION
1. Purpose
[Release No. 34–62610; File No. SR–
NYSEArca–2010–73]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Arca, Inc. That Constitutes a Stated
Interpretation With Respect to the
Meaning, Administration, and
Enforcement of NYSE Arca Equities
Rule 7.10(g)
July 30, 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 July 28,
2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
1 15
Jkt 220001
The Exchange proposes that
constitutes [sic] a stated interpretation
with respect to the meaning,
administration, and enforcement of
NYSE Arca Equities Rule 7.10(g). The
text of the proposed rule change is
available at the Exchange, the
Commission’s Public Reference Room,
and https://www.nyse.com.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(2).
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
BILLING CODE 8010–01–P
[FR Doc. 2010–19365 Filed 8–4–10; 8:45 am]
14 17
12 15
comments on the proposed rule change
from interested persons.
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
The Exchange proposes to adopt a
stated interpretation with respect to the
meaning, administration, and
enforcement of NYSE Arca Equities
Rule 7.10(g), concerning the ability of an
Exchange Officer to act on his or her
own motion to review potentially
erroneous executions.
Rule 7.10(g) provides that an Officer,
acting on his or her own motion, may
review potentially erroneous executions
that occur on the Exchange and may,
among other things, declare such
transaction(s) null and void. When
extraordinary circumstances exist, any
such action must be taken by no later
than the start of the Regular Trading
Hours of the Exchange on the trading
day following the date of execution(s)
under review.
For purposes of Rule 7.10(g), the
Exchange believes that a series of
transactions in a particular security on
one or more trading days may be viewed
as one event if all such transactions
were effected based on incorrect or
grossly misinterpreted structural or
issuance information, resulting in a
severe pricing dislocation for all such
transactions (the ‘‘Event’’). In such
E:\FR\FM\05AUN1.SGM
05AUN1
]]>Agencies
[Federal Register Volume 75, Number 150 (Thursday, August 5, 2010)]
[Notices]
[Pages 47329-47330]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-19365]
[[Page 47329]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62579; File No. SR-CBOE-2010-068]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Amend Fees Schedule
July 28, 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 July 16, 2010, Chicago Board Options Exchange, Incorporated
(``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I, II, and III below, which Items have been prepared by the
Exchange. The Exchange has designated this proposal as one establishing
or changing a due, fee, or other charge imposed by CBOE under Section
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange proposes to amend its Fees Schedule to make changes
related to options on Exchange-Traded Notes and Exchange-Traded Funds.
The text of the proposed rule change is available on the Exchange's Web
site at https://www.cboe.org/Legal, at the Exchange's Office of the
Secretary, on the Commission's Web site at https://www.sec.gov, 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, 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 those 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 parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Exchange-Traded Note (``ETN'') Options 5
The first change being proposed by this filing is to codify the
Exchange's existing practice of assessing fees for transactions in ETN
options at the same rates charged for Exchange-Traded Fund (``ETF'')
options.\6\ To affect this change, the Exchange is proposing to amend
Section 1, Index Options, to the Fees Schedule by including references
to ETNs throughout that section. The transaction fees for ETN options
are as follows:
---------------------------------------------------------------------------
\5\ ETN options are also referred to as ``Index Linked
Securities'' in Interpretation and Policy .13 to Rule 5.3. See also
Securities Exchange Act Release No. 58204 (July 22, 2008), 73 FR
43807 (July 28, 2008) (order approving proposal to list and trade
ETN options) (SR-CBOE-2008-64).
\6\ See e.g., Securities Exchange Act Release No. 61696 (March
12, 2010), 75 FR 13174 (March 18, 2010) (noting the Exchange's
belief that the marketplace and investors expect ETN options to
trade in a similar manner to ETF options) (SR-CBOE-2010-005).
---------------------------------------------------------------------------
$0.20 per contract for Market-Maker and Designated Primary
Market-Maker transactions;\7\
---------------------------------------------------------------------------
\7\ This is the standard rate that is subject to the Liquidity
Provider Sliding Scale as set forth in Footnote 10 to the Fees
Schedule.
---------------------------------------------------------------------------
$0.20 per contract for Clearing Trading Permit Holder
proprietary transactions;
$0.25 per contract for manually executed broker-dealer
transactions;
$0.45 per contract for electronically executed broker-
dealer transactions;
$0.20 per contract for voluntary professional
transactions;
$0.20 per contract for professional transactions;
$0.18 per contract for customer transactions; and
$0.10 per contract CFLEX surcharge fee.
The Exchange is also proposing to amend Section 2, Marketing Fee,
to the Fees Schedule to codify the marketing fee ($0.25) that will be
assessed to any ETN options classes that participate in the Penny
Pilot. Currently, there are no ETN options classes in the Penny Pilot.
In addition, the Exchange is proposing to add a reference to ETN
options to Footnote 6 regarding the assessment of the marketing fee,
which is $0.65 per contract for those classes not in the Penny
Pilot.\8\
---------------------------------------------------------------------------
\8\ See Section 2, Marketing Fee, of the Fees Schedule.
---------------------------------------------------------------------------
The Exchange is also proposing to add a reference to ETN options to
Footnote 9 regarding the waiver of transaction fees for customer orders
of 99 contracts or less and the charging of any leg of a complex order
in ETN options that exceed 99 contracts, even if the leg is only
partially executed below the 99 contract threshold.
Lastly, the Exchange is proposing to add a reference to ETN options
to Section 18, Customer Large Trade Discount, which provides that
regular customer transaction fees will only be charged up to the first
3,000 contracts.
Exchange-Traded Note and HOLDRs Options
The second change being proposed by this filing is to amend Section
2, Marketing Fee, to the Fees Schedule to codify the marketing fee
($0.25) that will be assessed to any ETF and Holding Company Depository
Receipts (``HOLDRs'') option classes that participate in the Penny
Pilot (other than those ETF options that are either assessed a modified
marketing fee or no marketing fee).
In addition, the Exchange notes that options on the iShares MSCI
Emerging Markets Index Fund (``EEM'') and the iShares MSCI Taiwan Index
Fung [sic] (``EWT'') are not assessed a marketing fee.\9\ EEM and EWT
are classes that participate in the Penny Pilot. Similar to QQQQ and
IWM (which are not assessed a marketing fee and participate in the
Penny Pilot), the Exchange is proposing to add EEM and EWT to QQQQ and
IWM to Section 2, Marketing Fee, to clarify that no marketing fee
applies to these Penny Pilot classes.
---------------------------------------------------------------------------
\9\ See Footnote 6 of the Fees Schedule.
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\10\ in general, and furthers the objectives of Section 6(b)(4)
\11\ 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. The Exchange believes the fee changes proposed by this
filing are equitable and reasonable in that [sic] will codify the
Exchange's existing practice of assessing fees for ETN options in a
manner similar to ETF options. In addition, the changes proposed by
this filing clarify CBOE's Fees Schedule.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE does not believe that the proposed rule change will impose any
[[Page 47330]]
burden on competition 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
The Exchange neither solicited nor received comments on the
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed 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 \12\ and
subparagraph (f)(2) of Rule 19b-4 \13\ 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.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 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-2010-068 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-2010-068. 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 publicly available. All
submissions should refer to File Number SR-CBOE-2010-068 and should be
submitted on or before August 26, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19365 Filed 8-4-10; 8:45 am]
BILLING CODE 8010-01-P
