Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the CBOE Fees Schedule, 13690-13691 [2011-5761]
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Federal Register / Vol. 76, No. 49 / Monday, March 14, 2011 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64057; File No. SR–CBOE–
2011–019]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Modify the CBOE Fees
Schedule
March 8, 2011.
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 February
25, 2011 [sic], Chicago Board Options
Exchange, Incorporated (the ‘‘Exchange’’
or ‘‘CBOE’’) 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
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 modify the
Fees Schedule to amend its linkage fees.
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, 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.
mstockstill on DSKH9S0YB1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Currently, when the Exchange
receives a customer order that has an
original size of 500 or more contracts
that is routed for execution, in whole or
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Mar<15>2010
16:20 Mar 11, 2011
Jkt 223001
in part, to one or more exchanges in
connection with the Options Order
Protection and Locked/Crossed Market
Plan (a ‘‘Customer Linkage
Transaction’’), the Exchange charges
$0.35 per contract in addition to the
customary CBOE execution charges.3
The Exchange proposes to reduce the
qualifying customer order size from 500
or more contracts to 100 or more
contracts. This change will allow the
Exchange to pass through some of the
transaction costs incurred by the
Exchange associated with the execution
and handling of larger orders.
The Exchange further proposes to
eliminate the flat $0.35 per contract fee
for Customer Linkage Transactions, and
instead pass through the actual
transaction fee(s) assessed on the
transaction(s) by the exchange(s) to
which the order was routed, minus a
$0.05 per contract discount. These
changes allow the Exchange to more
accurately pass through some of the
transaction costs incurred by the
Exchange associated with Customer
Linkage Transactions while still offering
an added incentive to route orders to
CBOE.
The Exchange does not propose to
collect these fees for orders initially
routed for manual handling by CBOE
Floor Brokers. More specifically, the
Exchange will exempt from these passthrough fees customer orders that
originate from the trading floor via an
Exchange sponsored terminal like a
Floor Broker Workstation.4 The primary
objective of the fee change is to recoup
some of the costs associated with large
electronic orders that are initially
transmitted to CBOE by parties who, in
many instances, could be seeking to
avoid being assessed another market’s
transaction fees. Orders that are initially
routed to CBOE Floor Brokers are not
attempting to avoid fees since they incur
brokerage commission charges in
connection with manual handling.
Rather, orders that are handled by CBOE
Floor Brokers are large, complex orders
that are primarily executed on the
CBOE, which only are transmitted to
away markets if, during their execution
on CBOE, it is necessary to sweep some
away markets.
The proposed fee change will take
effect on March 1, 2011.
3 See CBOE Fees Schedule, Section 20. See, also,
Securities Exchange Act Release No. 63701 (January
11, 2011), 76 FR 2934 (January 18, 2011) (SR–
CBOE–2010–116) and Securities Exchange Act
Release No. 62793 (August 30, 2010), 75 FR 54408
(September 7, 2010) (SR–CBOE–2010–076).
4 The Floor Broker Workstation is a system for
electronically entering and managing orders on the
Exchange floor. Floor Broker Workstations are
operated by Floor Brokers.
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Securities Exchange Act of 1934
(‘‘Act’’),5 in general, and furthers the
objectives of Section 6(b)(4) 6 of the Act
in particular, in that the passing through
of the actual transaction fees assessed
on away exchanges for Customer
Linkage Transactions is designed to
provide for the equitable allocation of
reasonable dues, fees, and other charges
among CBOE Trading Permit Holders
and other persons using Exchange
facilities. Exempting customer orders
that originate from an Exchangesponsored terminal from the passthrough fees is equitable because Floor
Brokers and their customers are already
assessed a number of fees in connection
with trading on the Exchange Floor.
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 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
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) 7 of the Act and
subparagraph (f)(2) of Rule 19b–4 8
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
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
7 15 U.S.C. 78s(b)(3)(A)(ii).
8 17 C.F.R. 240.19b–4(f)(2).
6 15
E:\FR\FM\14MRN1.SGM
14MRN1
Federal Register / Vol. 76, No. 49 / Monday, March 14, 2011 / Notices
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–2011–019 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64052; File No. SR–C2–
2011–010]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated:
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Establish a Revenue
Sharing Program With Correlix, Inc.
March 8, 2011.
Paper Comments
mstockstill on DSKH9S0YB1PROD with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
• Send paper comments in triplicate
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
to Elizabeth M. Murphy, Secretary,
notice is hereby given that, on March 1,
Securities and Exchange Commission,
2011, C2 Options Exchange,
100 F Street, NE., Washington, DC
Incorporated (‘‘C2’’ or the ‘‘Exchange’’)
20549–1090.
filed with the Securities and Exchange
All submissions should refer to File
Commission (‘‘Commission’’) the
Number SR–CBOE–2011–019. This file
proposed rule change as described in
number should be included on the
Items I and II below, which Items have
subject line if e-mail is used. To help the been prepared by C2. The Commission
Commission process and review your
is publishing this notice to solicit
comments more efficiently, please use
comments on the proposed rule change
only one method. The Commission will from interested persons.
post all comments on the Commission’s
I. Self-Regulatory Organization’s
Internet website (https://www.sec.gov/
Statement of the Terms of Substance of
rules/sro/shtml). Copies of the
the Proposed Rule Change
submission, all subsequent
C2 Options Exchange, Incorporated
amendments, all written statements
(‘‘C2’’ or ‘‘Exchange’’) proposes to
with respect to the proposed rule
establish a revenue sharing program
change that are filed with the
with Correlix, Inc. The text of the
Commission, and all written
proposed rule change is available on the
communications relating to the
Exchange’s Web site (https://
proposed rule change between the
Commission and any person, other than www.cboe.org/legal), at the Exchange’s
Office of the Secretary and at the
those that may be withheld from the
Commission.
public in accordance with the
provisions of 5 U.S.C. 552, will be
II. Self-Regulatory Organization’s
available for website viewing and
Statement of the Purpose of, and
printing in the Commission’s Public
Statutory Basis for, the Proposed Rule
Reference Room, 100 F Street, NE.,
Change
Washington, DC 20549, on official
In its filing with the Commission, C2
business days between the hours of 10
included statements concerning the
a.m. and 3 p.m. Copies of such filing
purpose of and basis for the proposed
will also be available for inspection and
rule change and discussed any
copying at the principal office of the
comments it received on the proposed
Exchange. All comments received will
rule change. The text of these statements
be posted without change; the
may be examined at the places specified
Commission does not edit personal
in Item IV below. C2 has prepared
identifying information from
summaries, set forth in sections A, B,
submissions. You should submit only
and C below, of the most significant
information that you wish to make
aspects of such statements.
available publicly. All submissions
A. Self-Regulatory Organization’s
should refer to File No. SR–CBOE–
Statement of the Purpose of, and
2011–019 and should be submitted on
Statutory Basis for, the Proposed Rule
or before April 4, 2011.
Change
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–5761 Filed 3–11–11; 8:45 am]
1. Purpose
The Exchange is filing a proposed rule
change to establish a revenue sharing
program with Correlix. The Exchange
has entered into an agreement with
BILLING CODE 8011–01–P
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
16:20 Mar 11, 2011
Jkt 223001
PO 00000
Frm 00095
Fmt 4703
Correlix to provide to users of the
Exchange real-time analytical tools to
measure the latency of orders to and
from its systems. Under the agreement,
the Exchange will receive 30% of the
total monthly subscription fees received
by Correlix from parties who have
contracted directly with Correlix to use
their RaceTeam latency measurement
service for the Exchange’s systems. The
Exchange will not bill or contract with
any Correlix RaceTeam customer
directly.
Pricing for the Correlix RaceTeam
product for the Exchange varies
depending on the number of unique
acronyms and logons selected by the
customer for monitoring by Correlix. For
the Exchange, the fee will be an initial
$1,500 monthly base fee for the first
unique acronym monitored. For each
additional unique acronym sought to be
monitored, an additional monthly
charge of $1,500 will be assessed. The
monthly price for each unique acronym
includes the monitoring of up to 25
Exchange logons associated with that
particular acronym. Customers that
wish to exceed 25 logons per-acronym
for monitoring can purchase additional
25 logon blocks for an additional fee of
$750 per month per acronym.
Under the program, Correlix will see
an individualized unique Exchangegenerated identifier that will allow
Correlix RaceTeam to determine round
trip order time,3 from the time the order
reaches the Exchange extranet, through
the Exchange matching engine, and back
out of the Exchange extranet. The
RaceTeam product offering does not
measure latency outside of the Exchange
extranet. The unique identifier serves as
a technological information barrier so
that the RaceTeam data collector will
only be able to view data for Correlix
RaceTeam subscriber firms related to
latency. Correlix will not see
subscriber’s individual order detail such
as security, price or size. Individual
RaceTeam subscribers’ logins will
restrict access to only their own latency
data. Correlix will see no specific
information regarding the trading
activity of non-subscribers. The
Exchange believes that the above
arrangement will provide users of its
systems greater transparency into the
processing of their trading activity and
allow them to make more efficient
trading decisions.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
3 The product measures latency of orders whether
the orders are rejected, executed or partially
executed.
1 15
9 17
13691
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]]>Agencies
[Federal Register Volume 76, Number 49 (Monday, March 14, 2011)]
[Notices]
[Pages 13690-13691]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-5761]
[[Page 13690]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64057; File No. SR-CBOE-2011-019]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Modify the CBOE Fees Schedule
March 8, 2011.
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 February 25, 2011 [sic], Chicago Board Options Exchange,
Incorporated (the ``Exchange'' or ``CBOE'') 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
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
The Exchange proposes to modify the Fees Schedule to amend its
linkage fees. 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, 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
Currently, when the Exchange receives a customer order that has an
original size of 500 or more contracts that is routed for execution, in
whole or in part, to one or more exchanges in connection with the
Options Order Protection and Locked/Crossed Market Plan (a ``Customer
Linkage Transaction''), the Exchange charges $0.35 per contract in
addition to the customary CBOE execution charges.\3\ The Exchange
proposes to reduce the qualifying customer order size from 500 or more
contracts to 100 or more contracts. This change will allow the Exchange
to pass through some of the transaction costs incurred by the Exchange
associated with the execution and handling of larger orders.
---------------------------------------------------------------------------
\3\ See CBOE Fees Schedule, Section 20. See, also, Securities
Exchange Act Release No. 63701 (January 11, 2011), 76 FR 2934
(January 18, 2011) (SR-CBOE-2010-116) and Securities Exchange Act
Release No. 62793 (August 30, 2010), 75 FR 54408 (September 7, 2010)
(SR-CBOE-2010-076).
---------------------------------------------------------------------------
The Exchange further proposes to eliminate the flat $0.35 per
contract fee for Customer Linkage Transactions, and instead pass
through the actual transaction fee(s) assessed on the transaction(s) by
the exchange(s) to which the order was routed, minus a $0.05 per
contract discount. These changes allow the Exchange to more accurately
pass through some of the transaction costs incurred by the Exchange
associated with Customer Linkage Transactions while still offering an
added incentive to route orders to CBOE.
The Exchange does not propose to collect these fees for orders
initially routed for manual handling by CBOE Floor Brokers. More
specifically, the Exchange will exempt from these pass-through fees
customer orders that originate from the trading floor via an Exchange
sponsored terminal like a Floor Broker Workstation.\4\ The primary
objective of the fee change is to recoup some of the costs associated
with large electronic orders that are initially transmitted to CBOE by
parties who, in many instances, could be seeking to avoid being
assessed another market's transaction fees. Orders that are initially
routed to CBOE Floor Brokers are not attempting to avoid fees since
they incur brokerage commission charges in connection with manual
handling. Rather, orders that are handled by CBOE Floor Brokers are
large, complex orders that are primarily executed on the CBOE, which
only are transmitted to away markets if, during their execution on
CBOE, it is necessary to sweep some away markets.
---------------------------------------------------------------------------
\4\ The Floor Broker Workstation is a system for electronically
entering and managing orders on the Exchange floor. Floor Broker
Workstations are operated by Floor Brokers.
---------------------------------------------------------------------------
The proposed fee change will take effect on March 1, 2011.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (``Act''),\5\ in general, and furthers
the objectives of Section 6(b)(4) \6\ of the Act in particular, in that
the passing through of the actual transaction fees assessed on away
exchanges for Customer Linkage Transactions is designed to provide for
the equitable allocation of reasonable dues, fees, and other charges
among CBOE Trading Permit Holders and other persons using Exchange
facilities. Exempting customer orders that originate from an Exchange-
sponsored terminal from the pass-through fees is equitable because
Floor Brokers and their customers are already assessed a number of fees
in connection with trading on the Exchange Floor.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 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 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
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) \7\ of the Act and subparagraph (f)(2) of Rule 19b-4
\8\ thereunder.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 17 C.F.R. 240.19b-4(f)(2).
---------------------------------------------------------------------------
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
[[Page 13691]]
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-2011-019 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-2011-019. 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 website (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 website 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 will also 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 No. SR-CBOE-2011-019 and should be submitted on or
before April 4, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-5761 Filed 3-11-11; 8:45 am]
BILLING CODE 8011-01-P
