Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the CFLEX Surcharge Fee Cap, 9383-9384 [2011-3554]

Download as PDF Federal Register / Vol. 76, No. 33 / Thursday, February 17, 2011 / Notices 9383 2. Statutory Basis inventory has been developed in accordance with guidance issued on November 5, 2010 by the Office of Management and Budget’s Office of Federal Procurement Policy (OFPP). OFPP’s guidance is available at http:// www.whitehouse.gov/sites/default/files/ omb/procurement/memo/servicecontract-inventories-guidance11052010.pdf. The Securities and Exchange Commission has posted its inventory and a summary of the inventory on the Securities and Exchange Commission’s Open Government homepage at the following link http://sec.gov/about/offices/oacq/ secfy2010servicecontract inventories.pdf. FOR FURTHER INFORMATION CONTACT: Questions regarding the service contract inventory should be directed to Judith Blake, Chief, Policy, Oversight, and Acquisition Programs Branch at 202– 551–8071 or blakej@sec.gov. proposes to amend its Fees Schedule to extend the CFLEX Surcharge Fee cap to all orders. The text of the proposed rule change is available on the Exchange’s Web site (http://www.cboe.org/legal), at the Exchange’s principal office, and at the Commission’s Public Reference Room. February 14, 2011. Elizabeth M. Murphy, Secretary. [FR Doc. 2011–3644 Filed 2–16–11; 8:45 am] A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others BILLING CODE 8011–01–P 1. Purpose No written comments were solicited or received with respect to the proposed rule change. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–63887; File No. SR–CBOE– 2011–015] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the CFLEX Surcharge Fee Cap February 10, 2011. jlentini on DSKJ8SOYB1PROD with NOTICES Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that, on February 1, 2011, Chicago Board Options Exchange, Incorporated (the ‘‘Exchange’’ or ‘‘CBOE’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the 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 Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ or ‘‘Exchange’’) 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Mar<15>2010 16:38 Feb 16, 2011 Jkt 223001 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. On November 15, 2007, the Commission approved Exchange rules that provide for the trading of Flexible Exchange (‘‘FLEX’’) options on the Exchange’s new FLEX Hybrid Trading System (‘‘CFLEX’’).3 CFLEX is a trading platform that incorporates both open outcry and electronic trading functionality. On November 20, 2007, the Exchange filed an amendment to the Exchange Fees Schedule to establish a $.10 per contract surcharge fee on all orders (i.e., applicable to all origin codes) executed electronically on the CFLEX system (‘‘CFLEX Surcharge Fee’’).4 Pursuant to that filing, the CFLEX Surcharge Fee is currently charged up to the first 2,500 contracts per trade for public customers.5 The proposed amendment to the Fees Schedule would extend the cap on the CFLEX Surcharge Fee to all orders. The CFLEX Surcharge Fee would be charged up to the first 2,500 contracts per trade, regardless of the order type. The purpose of the proposed fee change is to encourage more use of the CFLEX system. The proposed change is scheduled to take effect on February 1, 2011. 3 See Securities Exchange Act Release No. 56792 (November 15, 2007), 72 FR 65776 (SR–CBOE– 2006–99). 4 See Securities Exchange Act Release No. 56852 (November 28, 2007), 72 FR 68226 (December 4, 2007) (SR–CBOE–2007–139). 5 See CBOE Fees Schedule, Footnote 5 [sic]. PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 The Exchange believes 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. The proposed rule change, by extending the cap on the CFLEX Surcharge Fee to all order types, would provide for lower fees for all market participants trading on the CFLEX 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 necessary or appropriate in furtherance of purposes of the Act. 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 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 (http://www.sec.gov/ rules/sro.shtml); or 6 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 8 15 U.S.C. 78s(b)(3)(A). 9 17 CFR 240.19b–4(f)(2). 7 15 E:\FR\FM\17FEN1.SGM 17FEN1 9384 Federal Register / Vol. 76, No. 33 / Thursday, February 17, 2011 / Notices • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–CBOE–2011–015 on the subject line. SECURITIES AND EXCHANGE COMMISSION Paper Comments [Release No. 34–63891; File No. SR– NASDAQ–2011–022] • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Enhance the Investor Support Program All submissions should refer to File Number SR–CBOE–2011–015. 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 (http://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. 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– 2011–015 and should be submitted on or before March 10, 2011. February 11, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–3554 Filed 2–16–11; 8:45 am] jlentini on DSKJ8SOYB1PROD with NOTICES BILLING CODE 8011–01–P Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that, on February 2, 2011, The NASDAQ Stock Market LLC (‘‘NASDAQ’’) 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 NASDAQ. 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 NASDAQ proposes changes to the fee provisions of Rule 7014 (Investor Support Program) to increase the rebate for adding targeted liquidity within the Investor Support Program. NASDAQ has designated this fee change proposal effective and operative upon filing. The text of the proposed rule change is available at http:// nasdaq.cchwallstreet.com, at NASDAQ’s principal office, 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, NASDAQ 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. NASDAQ has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. 1 15 10 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 16:38 Feb 16, 2011 2 17 Jkt 223001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00066 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange is proposing changes to the fee provisions of Rule 7014 to increase the rebate for adding targeted liquidity within the Investor Support Program. The Exchange established an Investor Support Program (‘‘ISP’’) that enables NASDAQ members to earn a monthly fee credit for providing additional liquidity to NASDAQ and increasing the NASDAQ-traded volume of what are generally considered to be retail and institutional investor orders in exchange-traded securities (‘‘targeted liquidity’’).3 The goal of the ISP is to incentivize members to provide such targeted liquidity to the NASDAQ Market Center.4 The Exchange noted in the ISP Filing that maintaining and increasing the proportion of orders in exchange-listed securities executed on a registered exchange (rather than relying on any of the available off-exchange execution methods) would help raise investors’ confidence in the fairness of their transactions and would benefit all investors by deepening NASDAQ’s liquidity pool, supporting the quality of price discovery, promoting market 3 For a detailed description of the Investor Support Program, see Securities Exchange Act Release No. 63270 (November 8, 2010), 75 FR 69489 (November 12, 2010)(NASDAQ–2010–141) (notice of filing and immediate effectiveness)(the ‘‘ISP Filing’’). See also Securities Exchange Act Release Nos. 63414 (December 2, 2010), 75 FR 76505 (December 8, 2010)(NASDAQ–2010–153) (notice of filing and immediate effectiveness); and 63628 (January 3, 2011), 76 FR 1201 (January 7, 2011)(NASDAQ–2010–154) (notice of filing and immediate effectiveness). 4 The Commission has recently expressed its concern that a significant percentage of the orders of individual investors are executed at over the counter (‘‘OTC’’) markets, that is, at off-exchange markets; and that a significant percentage of the orders of institutional investors are executed in dark pools. Securities Exchange Act Release No. 61358 (January 14, 2010), 75 FR 3594 (January 21, 2010) (Concept Release on Equity Market Structure, ‘‘Concept Release’’). In the Concept Release, the Commission has recognized the strong policy preference under the Act in favor of price transparency and displayed markets. The Commission published the Concept Release to invite public comment on a wide range of market structure issues, including high frequency trading and un-displayed, or ‘‘dark,’’ liquidity. See also Mary L. Schapiro, Strengthening Our Equity Market Structure (Speech at the Economic Club of New York, Sept. 7, 2010) (‘‘Schapiro Speech,’’ available on the Commission Web site) (comments of Commission Chairman on what she viewed as a troubling trend of reduced participation in the equity markets by individual investors, and that nearly 30 percent of volume in U.S.-listed equities is executed in venues that do not display their liquidity or make it generally available to the public). E:\FR\FM\17FEN1.SGM 17FEN1

Agencies

[Federal Register Volume 76, Number 33 (Thursday, February 17, 2011)]
[Notices]
[Pages 9383-9384]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-3554]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63887; File No. SR-CBOE-2011-015]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to the CFLEX Surcharge Fee Cap

February 10, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that, on February 1, 2011, Chicago Board Options Exchange, Incorporated 
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the 
Exchange. 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

    Chicago Board Options Exchange, Incorporated (``CBOE'' or 
``Exchange'') proposes to amend its Fees Schedule to extend the CFLEX 
Surcharge Fee cap to all orders. The text of the proposed rule change 
is available on the Exchange's Web site (http://www.cboe.org/legal), at 
the Exchange's principal office, and at the Commission's Public 
Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, CBOE included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. 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, the Proposed Rule Change

1. Purpose
    On November 15, 2007, the Commission approved Exchange rules that 
provide for the trading of Flexible Exchange (``FLEX'') options on the 
Exchange's new FLEX Hybrid Trading System (``CFLEX'').\3\ CFLEX is a 
trading platform that incorporates both open outcry and electronic 
trading functionality. On November 20, 2007, the Exchange filed an 
amendment to the Exchange Fees Schedule to establish a $.10 per 
contract surcharge fee on all orders (i.e., applicable to all origin 
codes) executed electronically on the CFLEX system (``CFLEX Surcharge 
Fee'').\4\ Pursuant to that filing, the CFLEX Surcharge Fee is 
currently charged up to the first 2,500 contracts per trade for public 
customers.\5\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 56792 (November 15, 
2007), 72 FR 65776 (SR-CBOE-2006-99).
    \4\ See Securities Exchange Act Release No. 56852 (November 28, 
2007), 72 FR 68226 (December 4, 2007) (SR-CBOE-2007-139).
    \5\ See CBOE Fees Schedule, Footnote 5 [sic].
---------------------------------------------------------------------------

    The proposed amendment to the Fees Schedule would extend the cap on 
the CFLEX Surcharge Fee to all orders. The CFLEX Surcharge Fee would be 
charged up to the first 2,500 contracts per trade, regardless of the 
order type. The purpose of the proposed fee change is to encourage more 
use of the CFLEX system.
    The proposed change is scheduled to take effect on February 1, 
2011.
2. Statutory Basis
    The Exchange believes 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. The 
proposed rule change, by extending the cap on the CFLEX Surcharge Fee 
to all order types, would provide for lower fees for all market 
participants trading on the CFLEX system.
---------------------------------------------------------------------------

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

    \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 (http://www.sec.gov/rules/sro.shtml); or

[[Page 9384]]

     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-CBOE-2011-015 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-2011-015. 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 (http://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. 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-2011-015 and should be 
submitted on or before March 10, 2011.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-3554 Filed 2-16-11; 8:45 am]
BILLING CODE 8011-01-P