Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendment of the Hybrid Agency Liaison Step-Up Rebate, 76767-76768 [2010-30945]

Download as PDF Federal Register / Vol. 75, No. 236 / Thursday, December 9, 2010 / Notices 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 Exchange.8 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–BX– 2010–082 and should be submitted on or before December 30, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–30965 Filed 12–8–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–63426; File No. SR–CBOE– 2010–107] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendment of the Hybrid Agency Liaison Step-Up Rebate erowe on DSK5CLS3C1PROD with NOTICES December 3, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934, 15 U.S.C. 78s(b)(1), notice is hereby given that on December 1, 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 8 The text of the proposed rule change is available on the Commission’s Web site at https:// www.sec.gov. 9 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 15:35 Dec 08, 2010 Jkt 223001 Items I and II 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 Substance of the Proposed Rule Change Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ or ‘‘Exchange’’) proposes to amend the Hybrid Agency Liaison (‘‘HAL’’) step-up rebate. 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. 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 In order to incent market makers to execute orders at CBOE versus routing orders to other exchanges pursuant to the Options Order Protection and Locked/Crossed Plan, the Exchange provides a rebate to market-makers that ‘‘step-up’’ and trade all or part of certain orders on the HAL system.1 Specifically, the Exchange rebates to a market-maker $.20 per contract against transaction fees generated from a transaction on the HAL system in a penny pilot class, provided that at least 60% of the market-maker’s quotes in that class (excluding quotes in LEAPS series) in the prior calendar month were on one side of the national best bid or offer (‘‘NBBO’’) price. Marketmakers not meeting this 60% qualifying threshold are not eligible to receive a rebate. The Exchange proposes to reduce the amount of the rebate from $.20 per contract to $.15 per contract 1 See CBOE Fees Schedule, Section 19. HAL is a system for automated handling of electronically received orders that are not automatically executed upon receipt by the Hybrid System. CBOE Rule 6.14A governs the operation of the HAL system under the Options Order Protection and Locked/ Crossed Plan. PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 76767 effective December 1, 2010. All other aspects of the rebate program would remain unchanged. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (‘‘Act’’),2 in general, and furthers the objectives of Section 6(b)(4) 3 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 trading permit holders. The Exchange believes the proposed rebate is reasonable because it provides an incentive for market-makers to compete better for order flow in the penny pilot classes. The Exchange believes the proposed rebate is equitable because it applies equally to all market makers that trade orders in penny pilot classes on the HAL system and that meet the qualifying quoting criteria. 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 4 and subparagraph (f)(2) of Rule 19b–4 5 thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend 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. 2 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 4 15 U.S.C. 78s(b)(3)(A). 5 17 CFR 240.19b–4(f)(2). 3 15 E:\FR\FM\09DEN1.SGM 09DEN1 76768 Federal Register / Vol. 75, No. 236 / Thursday, December 9, 2010 / Notices 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–2010–107 on the subject line. Paper Comments erowe on DSK5CLS3C1PROD with NOTICES • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549. SECURITIES AND EXCHANGE COMMISSION Sections A, B and C below, of the most significant aspects of such statements [Release No. 34–63427; File No. SR–EDGA– 2010–19] A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend EDGA Rule 11.9 To Offer Anti-Internalization Qualifier (‘‘AIQ’’) Functionality to Exchange Users Deputy Secretary. BILLING CODE 8011–01–P 6 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 15:35 Dec 08, 2010 Jkt 223001 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 4 https://www.sec.gov. PO 00000 Frm 00074 Fmt 4703 The Exchange proposes to offer AntiInternalization Qualifier (‘‘AIQ’’) functionality to Exchange Users pursuant to proposed Rule 11.9(f). Background December 3, 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 November 30, 2010, EDGA Exchange, Inc. (the All submissions should refer to File ‘‘Exchange’’ or the ‘‘EDGA’’) filed with Number SR–CBOE–2010–107. This file the Securities and Exchange number should be included on the Commission (the ‘‘Commission’’) the subject line if e-mail is used. To help the proposed rule change as described in Commission process and review your Items I and II below, which Items have comments more efficiently, please use been prepared by the Exchange. The only one method. The Commission will Exchange has designated the proposed post all comments on the Commission’s rule change as constituting a ‘‘nonInternet Web site (https://www.sec.gov/ controversial’’ rule change under rules/sro.shtml). Copies of the paragraph (f)(6) of Rule 19b–4 under the submission, all subsequent Act.3 The Commission is publishing this amendments, all written statements notice to solicit comments on the with respect to the proposed rule proposed rule change from interested change that are filed with the persons. Commission, and all written I. Self-Regulatory Organization’s communications relating to the Statement of the Terms of Substance of proposed rule change between the Commission and any person, other than the Proposed Rule Change those that may be withheld from the The Exchange proposes to offer Antipublic in accordance with the Internalization Qualifier (‘‘AIQ’’) provisions of 5 U.S.C. 552, will be functionality to Exchange Users available for Web site viewing and pursuant to proposed Rule 11.9(f). The printing in the Commission’s Public text of the proposed rule change is Reference Room, 100 F Street, NE., available on the Exchange’s Web site at Washington, DC 20549 on official https://www.directedge.com, at the business days between the hours of 10 Exchange’s principal office, at the a.m. and 3 p.m. Copies of such filing Public Reference Room of the also will be available for inspection and Commission, and the Commission’s copying at the principal office of CBOE. Web site.4 All comments received will be posted II. Self-Regulatory Organization’s without change; the Commission does Statement of the Purpose of, and not edit personal identifying Statutory Basis for, the Proposed Rule information from submissions. You Change should submit only information that you wish to make available publicly. All In its filing with the Commission, the submissions should refer to File Exchange included statements Number SR–CBOE–2010–107 and concerning the purpose of, and basis for, should be submitted on or before the proposed rule change and discussed December 30, 2010. any comments it received on the proposed rule change. The text of these For the Commission, by the Division of statements may be examined at the Trading and Markets, pursuant to delegated places specified in Item IV below. The authority.6 self-regulatory organization has Florence E. Harmon, prepared summaries, set forth in [FR Doc. 2010–30945 Filed 12–8–10; 8:45 am] 1. Purpose Sfmt 4703 The proposed AIQ modifiers are designed to prevent two orders with the same Unique Identifier (as defined below) from executing against each other. The Exchange proposes to offer five AIQ modifiers that will be implemented and can be set at the market participant identifier (‘‘MPID’’), the Exchange Member identifier or the Anti-Internalization Group identifier level 5 (any such identifier, a ‘‘Unique Identifier’’).6 With one exception, described below, the AIQ modifier on the incoming order controls the interaction between two orders marked with AIQ modifiers from the same Unique Identifier. The five AIQ modifiers are discussed more thoroughly below. AIQ Cancel Newest (‘‘CN’’) An incoming order marked with the CN modifier will not execute against opposite side resting interest marked with any AIQ modifier originating from the same Unique Identifier. The incoming order marked with the CN modifier will be cancelled back to the originating User. The resting order marked with an AIQ modifier, which otherwise would have interacted with the incoming order from the same Unique Identifier, will remain on the EDGA book (‘‘Book’’). AIQ Cancel Oldest (‘‘CO’’) An incoming order marked with the CO modifier will not execute against opposite side resting interest marked with any AIQ modifier originating from the same Unique Identifier. The resting order marked with the AIQ modifier, which otherwise would have interacted with the incoming order by the same Unique Identifier, will be cancelled back to the originating User. The incoming order marked with the CO modifier will remain on the Book. 5 The Anti-Internalization Group identifier is a unique two character ID that an Exchange Member selects. 6 Any Exchange Member that has an MPID issued by FINRA is identified in the Exchange’s internal systems by that MPID. E:\FR\FM\09DEN1.SGM 09DEN1

Agencies

[Federal Register Volume 75, Number 236 (Thursday, December 9, 2010)]
[Notices]
[Pages 76767-76768]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-30945]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63426; File No. SR-CBOE-2010-107]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated: Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Amendment of the Hybrid Agency Liaison Step-Up 
Rebate

December 3, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934, 15 U.S.C. 78s(b)(1), notice is hereby given that on December 1, 
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 and 
II 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 Substance 
of the Proposed Rule Change

    Chicago Board Options Exchange, Incorporated (``CBOE'' or 
``Exchange'') proposes to amend the Hybrid Agency Liaison (``HAL'') 
step-up rebate. 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.

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
    In order to incent market makers to execute orders at CBOE versus 
routing orders to other exchanges pursuant to the Options Order 
Protection and Locked/Crossed Plan, the Exchange provides a rebate to 
market-makers that ``step-up'' and trade all or part of certain orders 
on the HAL system.\1\ Specifically, the Exchange rebates to a market-
maker $.20 per contract against transaction fees generated from a 
transaction on the HAL system in a penny pilot class, provided that at 
least 60% of the market-maker's quotes in that class (excluding quotes 
in LEAPS series) in the prior calendar month were on one side of the 
national best bid or offer (``NBBO'') price. Market-makers not meeting 
this 60% qualifying threshold are not eligible to receive a rebate. The 
Exchange proposes to reduce the amount of the rebate from $.20 per 
contract to $.15 per contract effective December 1, 2010. All other 
aspects of the rebate program would remain unchanged.
---------------------------------------------------------------------------

    \1\ See CBOE Fees Schedule, Section 19. HAL is a system for 
automated handling of electronically received orders that are not 
automatically executed upon receipt by the Hybrid System. CBOE Rule 
6.14A governs the operation of the HAL system under the Options 
Order Protection and Locked/Crossed Plan.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Securities Exchange Act of 1934 (``Act''),\2\ in 
general, and furthers the objectives of Section 6(b)(4) \3\ 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 
trading permit holders. The Exchange believes the proposed rebate is 
reasonable because it provides an incentive for market-makers to 
compete better for order flow in the penny pilot classes. The Exchange 
believes the proposed rebate is equitable because it applies equally to 
all market makers that trade orders in penny pilot classes on the HAL 
system and that meet the qualifying quoting criteria.
---------------------------------------------------------------------------

    \2\ 15 U.S.C. 78f(b).
    \3\ 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 
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 \4\ and subparagraph (f)(2) of Rule 19b-4 \5\ 
thereunder. At any time within 60 days of the filing of the proposed 
rule change, the Commission summarily may temporarily suspend 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.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 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.

[[Page 76768]]

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-2010-107 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.

All submissions should refer to File Number SR-CBOE-2010-107. 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 CBOE. 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-2010-107 and should be 
submitted on or before December 30, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-30945 Filed 12-8-10; 8:45 am]
BILLING CODE 8011-01-P
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