Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Extension of Waiver of Transaction Fee for Public Customer Orders in SPY Options Executed in Open Outcry or in the Automated Improvement Mechanism, 20390-20392 [2011-8621]
Download as PDF
20390
Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices
across markets concerning decisions to
pause trading in a stock when there are
significant price movements.
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 the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate if
consistent with the protection of
investors and the public interest, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 9 and Rule 19b–
4(f)(6) thereunder.10
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing.11 However, Rule 19b–
4(f)(6) 12 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay.
The Commission has considered the
Exchange’s request to waive the 30-day
operative delay. The Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest, as it will allow the pilot
program to continue uninterrupted,
thereby avoiding the investor confusion
that could result from a temporary
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). When filing a proposed
rule change pursuant to Rule 19b–4(f)(6) under the
Act, an exchange is required to give the
Commission written notice of its intent to file the
proposed rule change, along with a brief description
and text of the proposed rule change, at least five
business days prior to the date of filing of the
proposed rule change, or such shorter time as
designated by the Commission. The Commission
notes that the Exchange has satisfied this
requirement.
11 17 CFR 240.19b–4(f)(6)(iii).
12 Id.
srobinson on DSKHWCL6B1PROD with NOTICES
10 17
VerDate Mar<15>2010
18:00 Apr 11, 2011
Jkt 223001
interruption in the pilot program.13 For
this reason, the Commission designates
the proposed rule change to be operative
upon filing.
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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, 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–2011–031 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–2011–031. 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
13 For the purposes only of waiving the operative
delay of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
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 offices 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–2011–031, and
should be submitted on or before May
3, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–8620 Filed 4–11–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64197; File No. SR–CBOE–
2011–034]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated: Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Extension of
Waiver of Transaction Fee for Public
Customer Orders in SPY Options
Executed in Open Outcry or in the
Automated Improvement Mechanism
April 6, 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 March 31,
2011, 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 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’’)
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\12APN1.SGM
12APN1
Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices
proposes to amend its Fees Schedule to
extend through June 30, 2011, a waiver
of the transaction fee for public
customer orders in options on Standard
& Poor’s Depositary Receipts that are
executed in open outcry or in the
Automated Improvement Mechanism.
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
(a) Purpose
The Exchange currently waives the
$.18 per contract transaction fee for
public customer (‘‘C’’ origin code) orders
in options on Standard & Poor’s
Depositary Receipts (‘‘SPY options’’) that
are executed in open outcry or in the
Automated Improvement Mechanism
(‘‘AIM’’).3 This fee waiver is due to
expire on March 31, 2011. The
Exchange proposes to extend the fee
waiver through June 30, 2011.4 The
proposed fee waiver is intended to
attract more customer volume on the
Exchange in this product.
srobinson on DSKHWCL6B1PROD with NOTICES
(b) Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) of the Securities Exchange Act of
1934 (‘‘Act’’),5 in general, and furthers
3 See Securities Exchange Act Release No. 34–
62902 (September 14, 2010), 75 FR 57313
(September 20, 2010), Securities Exchange Act
Release No. 34–63422 (December 3, 2010), 75 FR
76770 (December 9, 2010) and CBOE Fees
Schedule, footnote 8. AIM is an electronic auction
system that exposes certain orders electronically in
an auction to provide such orders with the
opportunity to receive an execution at an improved
price. AIM is governed by CBOE Rule 6.74A.
4 The Exchange notes that transaction fees are
also currently waived for customer orders of 99
contracts or less in ETF (including SPY options),
ETN and HOLDRs options. See CBOE Fees
Schedule, footnote 9.
5 15 U.S.C. 78f(b).
VerDate Mar<15>2010
18:00 Apr 11, 2011
Jkt 223001
the objectives of Section 6(b)(4) 6 of the
Act in particular, in that it is designed
to provide for the equitable allocation of
reasonable dues, fees, and other charges
among CBOE Trading Permit Holders
and other persons using its facilities.
The Exchange believes the proposed
extension of the fee waiver is equitable
because the fee waiver would apply
uniformly to all public customers
trading SPY options. The Exchange
believes the proposed extension of the
fee waiver is reasonable because it
would continue to provide cost savings
during the extended waiver period for
public customers trading SPY options.
Further, the Exchange believes the
proposed fee waiver is consistent with
other fees assessed by the Exchange.
Specifically, the Exchange assesses
manually executed broker-dealer orders
a different rate ($.25 per contract) as
compared to electronically executed
broker-dealer orders ($.45 per contract).7
Other exchange fee schedules also
distinguish between electronically and
non-electronically executed orders.8
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 9 and subparagraph (f)(2) of
Rule 19b–4 10 thereunder. At any time
within 60 days of the filing of the
6 15
U.S.C. 78f(b)(4).
CBOE Fees Schedule, Section 1.
8 NASDAQ OMX PHLX, Inc. categorizes its equity
options transaction fees for Specialists, ROTs,
SQTs, RSQTs and Broker-Dealers as either
electronic or non-electronic. See NASDAQ OMX
PHLX Fees Schedule, Equity Options Fees. NYSE
Amex, Inc. categorizes its options transaction fees
for Non-NYSE Amex Options Market Makers,
Broker-Dealers, Professional Customers, Non BD
Customers and Firms as either electronic or manual.
See NYSE Amex Options Fees Schedule, Trade
Related Charges. NYSE Arca, Inc. categorizes its
options transaction fees for Customers, Firms and
Broker-Dealers as either electronic or manual. See
NYSE Arca Options Fees Schedule, Trade Related
Charges.
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(2).
7 See
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
20391
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–2011–034 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–2011–034. 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
E:\FR\FM\12APN1.SGM
12APN1
20392
Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices
Number SR–CBOE–2011–034 and
should be submitted on or before
May 3, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–8621 Filed 4–11–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64199; File No. SR–CBOE–
2011–035]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend CBSX Maker
and Taker Transaction Fees and
Rebates for Transactions in Securities
Priced $1 or Greater
April 6, 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 March 31,
2011, the Chicago Board Options
Exchange, Incorporated (‘‘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.
srobinson on DSKHWCL6B1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
CBOE Stock Exchange (‘‘CBSX’’)
transaction 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
This filing proposes to make changes
to the CBSX Fees Schedule. On March
1, 2011, CBOE modified the CBSX
Maker and Taker transaction fees and
rebates for transactions in securities
priced $1 or greater.3 Following that
change, transactions in securities priced
$1 or greater in a select group of stocks
(BAC, BIL, BGZ, C, CIM, DXD, FAZ,
IAU, LVLT, NBG, PVI, QID, SDS, SIRI,
SKF, SNV, UDN, UNG, UUP, XLF)
became subject to Maker fees of $0.0018
per share and Taker rebates of $0.0014
per share. Transactions in securities
priced $1 or greater in another select
group of stocks (AA, AMAT, AMD,
ATML, BRCD, BSX, CMCSA, COCO,
CSCO, CX, DELL, DIA, DOW, DRYS,
DUK, EBAY, EMC, EWJ, EWT, FAS,
FAX, F, FITB, FLEX, GBG, GDX, GE,
GLD, GLW, HBAN, HPQ, IDIX, INTC,
IWM, IYR, JPM, KEY, LVS, MDT, MFE,
MGM, MO, MRVL, MSFT, MU, NLY,
NOK, NVDA, NWSA, ONNN, ORCL,
PBR, PFE, PSQ, QCOM, Q, QLD, QQQQ,
RF, RFMD, SBUX, S, SH, SLV, SMH,
SNDK, SPLS, SPXU, SPY, SSO, SYMC,
TBT, T, TLT, TNA,TSM, TWM, TXN,
TZA, UCO, USO, UWM, UYG, VALE,
VWO, VXX, VZ, WFC, XHB, XLB, XLE,
XLI, XLK, XLP, XLU, XLV, XLY, XRT,
XRX, YHOO) became subject to Maker
fees of $0.0009 per share and Taker
rebates of $0.0006 per share.
Transactions in securities priced $1 or
greater for all other securities became
subject to a $0.0001 fee.
The Exchange now proposes to
change the specific securities in the
groups. Under the proposed rule
change, transactions in the following
securities priced $1 or greater would be
subject to Maker fees of $0.0018 per
share and Taker rebates of $0.0014 per
share: ALU, BAC, BIL, C, CIM, IAU,
LVLT, PVI, SIRI, SNV, UDN, UNG, UUP.
Transactions in the following securities
priced $1 or greater would be subject to
Maker fees of $0.0009 per share and
Taker rebates of $0.0006 per share: AA,
AMD, BGZ, BRCD, BSX, CSCO, CX,
DGZ, DIA, DRYS, DUK, DXD, DZZ, EWJ,
FAX, F, GBG, GLD, INTC, IWM, KEY,
MSFT, NBG, NOK, PFE, Q, QQQ, RF,
RFMD, SDS, S, SH, SLV, SPF, SPXU,
SPY, SSO, TBT, TLT, TWM, TZA, UCO,
USO, UWM, VXX, XLI, XLP.
Transactions in securities priced $1 or
greater for all other securities will
remain subject to a $0.0001 fee. The
Exchange is modifying the securities in
the groups and customizing transaction
fees by security due to the different
liquidity attributes of the different
securities and CBSX’s experience in
trades involving those securities.
The Exchange also proposes to re-add
a reference to footnote 4, which defines
a ‘‘Qualified Contingent Trade’’. This
reference was inadvertently removed in
re-organizing the CBSX Fees Schedule
in the previous filing.4
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 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 Exchange
facilities. The Exchange is modifying
the securities in the groups and
customizing transaction fees by security
due to the different liquidity attributes
of the different securities and CBSX’s
experience in trades involving those
securities.
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) of the Act 7 and
4 See
11 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
VerDate Mar<15>2010
18:00 Apr 11, 2011
3 See
Securities Exchange Act Release No. 64027
(March 3, 2011), 76 FR 13011 (March 9, 2011) (SR–
CBOE–2011–020).
Jkt 223001
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
footnote 1.
U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(4).
7 15 U.S.C. 78s(b)(3)(A).
5 15
E:\FR\FM\12APN1.SGM
12APN1
Agencies
[Federal Register Volume 76, Number 70 (Tuesday, April 12, 2011)]
[Notices]
[Pages 20390-20392]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-8621]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64197; File No. SR-CBOE-2011-034]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated: Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Extension of Waiver of Transaction Fee for
Public Customer Orders in SPY Options Executed in Open Outcry or in the
Automated Improvement Mechanism
April 6, 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 March 31, 2011, 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
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'')
[[Page 20391]]
proposes to amend its Fees Schedule to extend through June 30, 2011, a
waiver of the transaction fee for public customer orders in options on
Standard & Poor's Depositary Receipts that are executed in open outcry
or in the Automated Improvement Mechanism. 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
(a) Purpose
The Exchange currently waives the $.18 per contract transaction fee
for public customer (``C'' origin code) orders in options on Standard &
Poor's Depositary Receipts (``SPY options'') that are executed in open
outcry or in the Automated Improvement Mechanism (``AIM'').\3\ This fee
waiver is due to expire on March 31, 2011. The Exchange proposes to
extend the fee waiver through June 30, 2011.\4\ The proposed fee waiver
is intended to attract more customer volume on the Exchange in this
product.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 34-62902 (September
14, 2010), 75 FR 57313 (September 20, 2010), Securities Exchange Act
Release No. 34-63422 (December 3, 2010), 75 FR 76770 (December 9,
2010) and CBOE Fees Schedule, footnote 8. AIM is an electronic
auction system that exposes certain orders electronically in an
auction to provide such orders with the opportunity to receive an
execution at an improved price. AIM is governed by CBOE Rule 6.74A.
\4\ The Exchange notes that transaction fees are also currently
waived for customer orders of 99 contracts or less in ETF (including
SPY options), ETN and HOLDRs options. See CBOE Fees Schedule,
footnote 9.
---------------------------------------------------------------------------
(b) Statutory Basis
The Exchange believes 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 it is designed to provide for the equitable
allocation of reasonable dues, fees, and other charges among CBOE
Trading Permit Holders and other persons using its facilities. The
Exchange believes the proposed extension of the fee waiver is equitable
because the fee waiver would apply uniformly to all public customers
trading SPY options. The Exchange believes the proposed extension of
the fee waiver is reasonable because it would continue to provide cost
savings during the extended waiver period for public customers trading
SPY options. Further, the Exchange believes the proposed fee waiver is
consistent with other fees assessed by the Exchange. Specifically, the
Exchange assesses manually executed broker-dealer orders a different
rate ($.25 per contract) as compared to electronically executed broker-
dealer orders ($.45 per contract).\7\ Other exchange fee schedules also
distinguish between electronically and non-electronically executed
orders.\8\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
\7\ See CBOE Fees Schedule, Section 1.
\8\ NASDAQ OMX PHLX, Inc. categorizes its equity options
transaction fees for Specialists, ROTs, SQTs, RSQTs and Broker-
Dealers as either electronic or non-electronic. See NASDAQ OMX PHLX
Fees Schedule, Equity Options Fees. NYSE Amex, Inc. categorizes its
options transaction fees for Non-NYSE Amex Options Market Makers,
Broker-Dealers, Professional Customers, Non BD Customers and Firms
as either electronic or manual. See NYSE Amex Options Fees Schedule,
Trade Related Charges. NYSE Arca, Inc. categorizes its options
transaction fees for Customers, Firms and Broker-Dealers as either
electronic or manual. See NYSE Arca Options Fees Schedule, Trade
Related Charges.
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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 foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \9\ and subparagraph (f)(2) of Rule 19b-4 \10\
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.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(2).
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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-2011-034 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-2011-034. 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
[[Page 20392]]
Number SR-CBOE-2011-034 and should be submitted on or before May 3,
2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-8621 Filed 4-11-11; 8:45 am]
BILLING CODE 8011-01-P