Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Professional and Voluntary Professional Fees, 78792-78794 [2010-31634]
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78792
Federal Register / Vol. 75, No. 241 / Thursday, December 16, 2010 / Notices
of the benefits to members of direct
market access. In addition, the Exchange
believes that its fees are equitably
allocated among its constituents based
upon the number of access ports that
they require to submit orders to the
Exchange. Furthermore, the fees
associated with logical and physical
ports will be equitably allocated to all
constituents as the fees will be uniform
in application to all Members and nonmembers. Finally, the Exchange believes
that the fees obtained will enable it to
cover its infrastructure costs associated
with allowing Members and nonmembers to establish logical and
physical ports to connect to the
Exchange’s systems and continue to
maintain and improve its infrastructure,
market technology, and services.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
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
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
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) of
the Act 9 and Rule 19b–4(f)(2) 10
thereunder. At any time within 60 days
of the filing of such 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.
srobinson on DSKHWCL6B1PROD with NOTICES
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–EDGA–2010–22 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.
U.S.C. 78s(b)(3).
CFR 240.19b–4(f)(2).
10 17
VerDate Mar<15>2010
18:00 Dec 15, 2010
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–EDGA–
2010–22 and should be submitted on or
before January 6, 2011.
For the Commission, by the Division
of Trading and Markets, pursuant to
delegated authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–31626 Filed 12–15–10; 8:45 am]
11 17
Jkt 223001
[Release No. 34–63525; File No. SR–CBOE–
2010–104]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Professional
and Voluntary Professional Fees
December 10, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
All submissions should refer to File
notice is hereby given that on December
Number SR–EDGA–2010–22. This file
2, 2010, the Chicago Board Options
number should be included on the
Exchange, Incorporated (‘‘CBOE’’ or the
subject line if e-mail is used. To help the ‘‘Exchange’’) filed with the Securities
Commission process and review your
and Exchange Commission
comments more efficiently, please use
(‘‘Commission’’) the proposed rule
only one method. The Commission will change as described in Items I, II and III
post all comments on the Commission’s below, which Items have been prepared
by CBOE. The Exchange has designated
Internet Web site (https://www.sec.gov/
this proposal as one establishing or
rules/sro/shtml). Copies of the
changing a due, fee, or other charge
submission, all subsequent
imposed by CBOE under Section
amendments, all written statements
19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
with respect to the proposed rule
4(f)(2) thereunder.4 The Commission is
change that are filed with the
publishing this notice to solicit
Commission, and all written
comments on the proposed rule change
communications relating to the
from interested persons.
proposed rule change between the
Commission and any person, other than I. Self-Regulatory Organization’s
those that may be withheld from the
Statement of the Terms of Substance of
public in accordance with the
the Proposed Rule Change
provisions of 5 U.S.C. 552, will be
The Exchange is proposing to amend
available for Web site viewing and
its Fees Schedule as it relates to fees for
printing in the Commission’s Public
certain orders. The text of the proposed
Reference Room, 100 F Street, NE.,
rule change is available on the
Washington, DC 20549, on official
Exchange’s Web site https://
business days between the hours of 10
www.cboe.org/legal, at the Exchange’s
a.m. and 3 p.m. Copies of such filing
will also be available for inspection and Office of the Secretary and at the
Commission.
copying at the principal office of the
BILLING CODE 8011–01–P
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SECURITIES AND EXCHANGE
COMMISSION
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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.
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
CFR 200.30–3(a)(12).
Frm 00126
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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Federal Register / Vol. 75, No. 241 / Thursday, December 16, 2010 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
srobinson on DSKHWCL6B1PROD with NOTICES
1. Purpose
The purpose of this rule change is to
adopt fees for Professional and
Voluntary Professional transactions in
S&P 500 Index option series (‘‘SPX’’) that
trade on the Hybrid Trading System.
The fees, which are described in more
detail below, will be effective December
2, 2010.
By way of background, the Exchange
currently operates the Hybrid Trading
System and the Hybrid 3.0 Platform.5
For the Hybrid Trading System, the
Exchange has Professional and
Voluntary Professional designations for
non-broker-dealer customer orders.6
However, these two designations are not
available for non-broker-dealer customer
orders in option classes trading on the
Hybrid 3.0 Platform (which currently is
only SPX).7 Also by way of background,
the particular trading platform on which
index options trade is designated by the
Exchange on a class-by-class basis
pursuant to Rule 8.14, Index Hybrid
Trading System Classes: Market-Maker
Participants. However, CBOE recently
amended Rule 8.14 to provide that, for
each Hybrid 3.0 class, the Exchange may
determine to authorize a group of series
of the class for trading on the Hybrid
Trading System.8
Currently, all series of the SPX option
class trade on the Hybrid 3.0 Platform.
Therefore, at this time there are no
Professional or Voluntary Professional
designations for SPX. Pursuant to Rule
8.14, as amended, however, the
Exchange may determine to designate a
group of series in the SPX index option
5 The ‘‘Hybrid Trading System’’ refers to the
Exchange’s trading platform that allows MarketMakers to submit electronic quotes in their
appointed classes. The ‘‘Hybrid 3.0 Platform’’ is an
electronic trading platform on the Hybrid Trading
System that allows one or more quoters to submit
electronic quotes, which represent the aggregate
Market-Maker quoting interest in the series for the
trading crowd. See Rule 1.1(aaa).
6 The term ‘‘Professional’’ means any person or
entity that (i) is not a broker or dealer in securities,
and (ii) places more than 390 orders in listed
options per day on average during a calendar month
for its own beneficial account. A Professional will
be treated in the same manner as a broker or dealer
in securities for purposes of various CBOE Rules.
The term ‘‘Voluntary Professional’’ means any
person or entity that is not a broker or dealer in
securities that elects, in writing, to be treated in the
same manner as a broker or dealer in securities for
purposes of various CBOE Rules. The Professional
and Voluntary Professional designations are not
available in Hybrid 3.0 classes. See CBOE Rules
1.1(fff) and (ggg).
7 Id.
8 See Securities Exchange Act Release No. 63186
(October 27, 2010), 75 FR 67417 (November 2, 2010)
(SR–CBOE–2010–095).
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18:00 Dec 15, 2010
Jkt 223001
class for trading on the Hybrid Trading
System. As a result, the Professional and
Voluntary Professional designations
would be applicable to any such SPX
series trading on the Hybrid Trading
System.
In anticipation of the Exchange
designating a group of SPX series for
trading on the Hybrid Trading System,
the Exchange is proposing to adopt fees
for Professional and Voluntary
Professional transactions in SPX that
trade on the Hybrid Trading System.
The Exchange proposes to charge such
Professional and Voluntary Professional
orders in the same manner that it
charges broker-dealer orders.
Specifically, the Exchange is proposing
to amend the text of its Fees Schedule
to assess a fee of $0.40 per contract for
Professional and Voluntary Professional
transactions in SPX option series that
trade on the Hybrid Trading System.
The Exchange notes that, in accordance
with footnote 14 of its Fees Schedule,
the index option surcharge fee would
also apply to Professional and Voluntary
Professional transactions in such SPX
series. The Exchange also notes that the
Options Regulatory Fee (‘‘ORF’’)
contained in section 12 of the Fees
Schedule will apply to Professional and
Voluntary Professional transactions in
such SPX series. In addition, the
Exchange notes that Professional and
Voluntary Professional orders in such
SPX series will not be subject to the
order handling system order
cancellation fee contained in section 14
of the Fees Schedule. No changes to the
text are needed to reflect the
applicability of these surcharge, ORF
and cancellation fee provisions.
2. Statutory Basis
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 CBOE Trading Permit Holders.
The proposed fee changes would
provide clarity on how the Exchange
intends to implement the Professional
and Voluntary Professional designation
for SPX series trading the Hybrid
Trading System.
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
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
PO 00000
Frm 00127
Fmt 4703
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 proposed rule change is
designated by the Exchange as
establishing or changing a due, fee, or
other charge, thereby qualifying for
effectiveness on filing pursuant to
Section 19(b)(3)(A)(ii) 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 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.
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–2010–104 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–2010–104. 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
11 15
10 15
12 17
Sfmt 4703
78793
E:\FR\FM\16DEN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
16DEN1
78794
Federal Register / Vol. 75, No. 241 / Thursday, December 16, 2010 / Notices
submission,13 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 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–2010–104 and
should be submitted on or before
January 6, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–31634 Filed 12–15–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63520; File No. SR–EDGX–
2010–21]
Self-Regulatory Organizations; EDGX
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Amendments
to the EDGX Exchange, Inc. Fee
Schedule
srobinson on DSKHWCL6B1PROD with NOTICES
December 10, 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 December
3, 2010, the EDGX Exchange, Inc. (the
‘‘Exchange’’ or the ‘‘EDGX’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
13 The text of the proposed rule change is
available on CBOE’s Web site at https://
www.cboe.org/Legal, on the Commission’s Web site
at https://www.sec.gov, at CBOE, and at the
Commission’s Public Reference Room.
14 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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18:00 Dec 15, 2010
Jkt 223001
have been prepared by the Exchange.
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 to amend its
fee schedule applicable to Members 3
and non-members of the Exchange
pursuant to EDGX Rule 15.1(a) and (c).
Pursuant to the proposed rule change,
the Exchange will commence charging
fees for Members and non-members for
certain logical ports used to enter orders
into the Exchange’s systems. The
Exchange also proposes to amend its
fees for physical ports. The text of the
proposed rule change is available on the
Exchange’s Internet Web site at https://
www.directedge.com.
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
The purpose of the proposed rule
change is to begin charging a monthly
fee for logical ports used to enter orders
in the Exchange’s trading system. The
Exchange recently began charging for
‘‘physical’’ ports, which are ports that
are used by a Member or non-member
to literally plug into the Exchange at the
data centers where the Exchange’s
servers are located (i.e., either a crossconnection or an external
telecommunication circuit). By contrast,
a ‘‘logical’’ port (also commonly referred
to as a TCP/IP port) represents a port
established by the Exchange within the
Exchange’s system for trading and
billing purposes. Each logical port
established is specific to a Member or
3 A Member is any registered broker or dealer, or
any person associated with a registered broker or
dealer, that has been admitted to membership in the
Exchange.
PO 00000
Frm 00128
Fmt 4703
Sfmt 4703
non-member and grants that Member or
non-member the ability to operate a
specific application, such as FIX or High
Performance API for order entry, or to
receive market data. Multiple logical
ports can be created and exist over a
single physical port. The Exchange
proposes to charge $500 per month for
any logical ports other than ports used
to receive or request retransmission of
market data. Thus, this proposed charge
will apply to all Exchange FIX, High
Performance API, and DROP ports for
both accessing the Exchange directly
(Direct) 4 or through the ECN
Translator.5 Members and non-members
will receive the first ten (10) sessions
free of charge for Direct Sessions only
and thereafter be charged the $500 fee
per month. Free sessions will not apply
to ECN Translator sessions to incent
members and non-members to use
Direct Sessions.
Based on the proposal, the change
applies to Members that obtain ports for
direct access to the Exchange and nonmember service bureaus that act as
conduit for orders entered by Exchange
Members that are their customers. The
Exchange believes that the imposition of
logical port fees will help the Exchange
to continue to maintain and improve its
infrastructure, while also encouraging
Exchange customers to request and
enable only the ports that are necessary
for their operations related to the
Exchange.
The Exchange notes that other market
centers provide similar services to their
Members and non-members.6
Physical Ports
The Exchange currently charges
Members and non-members the
following annual fees for physical ports
based on the connectivity service type:
4 Direct Sessions will consist on one port at the
Exchange’s primary data center and one port at the
Exchange’s secondary data center.
5 The ECN translator allows a Member or nonmember who previously connected to Direct Edge’s
ECN to be re-directed automatically to EDGX
Exchange, Inc. It can only be accessed through a
FIX port.
6 See, e.g., Rule 7015 of The NASDAQ Stock
Market LLC (‘‘NASDAQ’’) (setting forth, among
other fees for access services, port fees charged to
members and non-members used to enter orders
into NASDAQ trading systems). See also Securities
Exchange Act Release Nos. 60546 (August 20,
2009), 74 FR 43184 (August 26, 2009) (SR–
NASDAQ–2009–058) (increasing the monthly fee
for each port used to enter orders in NASDAQ
trading systems from $400 per month to $500 per
month); 59337 (February 2, 2009), 74 FR 6441
(February 9, 2009) (SR–BX–2009–004) (establishing
fees for ports used by members to enter orders). See
Securities Exchange Act Release No. 60586 (August
28, 2009), 74 FR 46256 (September 8, 2009) (SR–
BATS–2009–026) (establishing fees for ports used
by members and non-members to enter orders).
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]]>Agencies
[Federal Register Volume 75, Number 241 (Thursday, December 16, 2010)]
[Notices]
[Pages 78792-78794]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-31634]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63525; File No. SR-CBOE-2010-104]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Professional and Voluntary Professional Fees
December 10, 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 December 2, 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 CBOE. 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.
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\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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to amend its Fees Schedule as it relates
to fees for certain orders. 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.
[[Page 78793]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this rule change is to adopt fees for Professional
and Voluntary Professional transactions in S&P 500 Index option series
(``SPX'') that trade on the Hybrid Trading System. The fees, which are
described in more detail below, will be effective December 2, 2010.
By way of background, the Exchange currently operates the Hybrid
Trading System and the Hybrid 3.0 Platform.\5\ For the Hybrid Trading
System, the Exchange has Professional and Voluntary Professional
designations for non-broker-dealer customer orders.\6\ However, these
two designations are not available for non-broker-dealer customer
orders in option classes trading on the Hybrid 3.0 Platform (which
currently is only SPX).\7\ Also by way of background, the particular
trading platform on which index options trade is designated by the
Exchange on a class-by-class basis pursuant to Rule 8.14, Index Hybrid
Trading System Classes: Market-Maker Participants. However, CBOE
recently amended Rule 8.14 to provide that, for each Hybrid 3.0 class,
the Exchange may determine to authorize a group of series of the class
for trading on the Hybrid Trading System.\8\
---------------------------------------------------------------------------
\5\ The ``Hybrid Trading System'' refers to the Exchange's
trading platform that allows Market-Makers to submit electronic
quotes in their appointed classes. The ``Hybrid 3.0 Platform'' is an
electronic trading platform on the Hybrid Trading System that allows
one or more quoters to submit electronic quotes, which represent the
aggregate Market-Maker quoting interest in the series for the
trading crowd. See Rule 1.1(aaa).
\6\ The term ``Professional'' means any person or entity that
(i) is not a broker or dealer in securities, and (ii) places more
than 390 orders in listed options per day on average during a
calendar month for its own beneficial account. A Professional will
be treated in the same manner as a broker or dealer in securities
for purposes of various CBOE Rules. The term ``Voluntary
Professional'' means any person or entity that is not a broker or
dealer in securities that elects, in writing, to be treated in the
same manner as a broker or dealer in securities for purposes of
various CBOE Rules. The Professional and Voluntary Professional
designations are not available in Hybrid 3.0 classes. See CBOE Rules
1.1(fff) and (ggg).
\7\ Id.
\8\ See Securities Exchange Act Release No. 63186 (October 27,
2010), 75 FR 67417 (November 2, 2010) (SR-CBOE-2010-095).
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Currently, all series of the SPX option class trade on the Hybrid
3.0 Platform. Therefore, at this time there are no Professional or
Voluntary Professional designations for SPX. Pursuant to Rule 8.14, as
amended, however, the Exchange may determine to designate a group of
series in the SPX index option class for trading on the Hybrid Trading
System. As a result, the Professional and Voluntary Professional
designations would be applicable to any such SPX series trading on the
Hybrid Trading System.
In anticipation of the Exchange designating a group of SPX series
for trading on the Hybrid Trading System, the Exchange is proposing to
adopt fees for Professional and Voluntary Professional transactions in
SPX that trade on the Hybrid Trading System. The Exchange proposes to
charge such Professional and Voluntary Professional orders in the same
manner that it charges broker-dealer orders. Specifically, the Exchange
is proposing to amend the text of its Fees Schedule to assess a fee of
$0.40 per contract for Professional and Voluntary Professional
transactions in SPX option series that trade on the Hybrid Trading
System. The Exchange notes that, in accordance with footnote 14 of its
Fees Schedule, the index option surcharge fee would also apply to
Professional and Voluntary Professional transactions in such SPX
series. The Exchange also notes that the Options Regulatory Fee
(``ORF'') contained in section 12 of the Fees Schedule will apply to
Professional and Voluntary Professional transactions in such SPX
series. In addition, the Exchange notes that Professional and Voluntary
Professional orders in such SPX series will not be subject to the order
handling system order cancellation fee contained in section 14 of the
Fees Schedule. No changes to the text are needed to reflect the
applicability of these surcharge, ORF and cancellation fee provisions.
2. Statutory Basis
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
CBOE Trading Permit Holders. The proposed fee changes would provide
clarity on how the Exchange intends to implement the Professional and
Voluntary Professional designation for SPX series trading the Hybrid
Trading System.
---------------------------------------------------------------------------
\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 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 proposed rule change is designated by the Exchange as
establishing or changing a due, fee, or other charge, thereby
qualifying for effectiveness on filing pursuant to Section
19(b)(3)(A)(ii) of the Act \11\ and subparagraph (f)(2) of Rule 19b-4
\12\ thereunder.
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\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 17 CFR 240.19b-4(f)(2).
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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. 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-2010-104 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-2010-104. 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
[[Page 78794]]
submission,\13\ 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 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-2010-104 and should be submitted on
or before January 6, 2011.
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\13\ The text of the proposed rule change is available on CBOE's
Web site at https://www.cboe.org/Legal, on the Commission's Web site
at https://www.sec.gov, at CBOE, and at the Commission's Public
Reference Room.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-31634 Filed 12-15-10; 8:45 am]
BILLING CODE 8011-01-P
