Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Orders Qualifying for Certain Quantity-Based Fee Waivers, 28834-28836 [2011-12240]
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Federal Register / Vol. 76, No. 96 / Wednesday, May 18, 2011 / Notices
unconditional price improvement
guarantees are involved.15
The proposed rule change does
exactly what the response to Question
13 of the FAQs allows. The Exchange
will provide price improvement in a
sub-penny increment only when
circumstances dictate, i.e., only: (1)
When a Non-Displayed Order is resting
on the opposite side of the market from
a displayed order at the locking price,
or (2) when an order subject to price
sliding is ranked at a price opposite a
displayed order.
All orders and quotations in these
scenarios are accepted, displayed and/or
ranked in a permissible penny
increment price and are only executed
in a sub-penny increment under certain
limited circumstances—if the displayed
order opposite the resting NonDisplayed Order or price slid order is
cancelled or executed, then the NonDisplayed order or price slide order is
again available at its full limit price.16
There are also no unconditional price
improvement guarantees involved.
The Exchange notes that this proposal
does not propose any new policies or
provisions that are unique or unproven,
as the Exchange and multiple other
exchanges allow orders to execute at
half-penny prices.17 The Exchange does
not believe that there is anything novel
or controversial about executing
marketable orders in a fully transparent
manner that is consistent with its other
pre-existing rules, and under the
proposed functionality, both sides to
each transaction executed will receive at
least one half penny price improvement
on their orders. As stated above,
Commission Staff has also publicly
interpreted Rule 612 as allowing subpenny executions due to price
improvement, and arguably has
encouraged such executions by stating
that ‘‘ * * * sub-penny executions due
to price improvement are generally
beneficial to retail investors.’’ 18
15 Id.
srobinson on DSKHWCL6B1PROD with NOTICES
16 The
Exchange notes that permitting an
execution in a sub-penny increment under certain
limited circumstances, while never ranking the
applicable orders at such sub-penny increments,
has already been implemented by multiple
exchanges, including the Exchange, in the form of
mid-point orders. See BATS Rule 11.9(c)(9) (‘‘MidPoint Peg Orders’’); see also, NASDAQ Rule
4751(f)(4) (‘‘Midpoint Peg’’ orders); NYSE Arca
Equities Rule 7.31(h)(5) (‘‘Mid-Point Passive
Liquidity Orders’’); EDGX Rule 11.5(c)(7) (‘‘MidPoint Match Orders’’). The order types listed above
are not displayed but can execute at the mid-point
of the NBBO, including in penny-wide markets.
17 See id.
18 See Exchange Act Release No. 34–54714 at 4
(November 6, 2006), 71 FR 66352 (November 14,
2006).
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change imposes any
burden on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) by order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be 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 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–BATS–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–BATS–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 (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
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 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–BATS–
2011–015 and should be submitted on
or before June 8, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–12132 Filed 5–17–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64485; File No. SR–CBOE–
2011–046]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Orders
Qualifying for Certain Quantity-Based
Fee Waivers
May 13, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934, 15
U.S.C. 78s(b)(1), notice is hereby given
that on April 29, 2011, Chicago Board
Options Exchange, Incorporated
(‘‘CBOE’’ or ‘‘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.
19 17
E:\FR\FM\18MYN1.SGM
CFR 200.30–3(a)(12).
18MYN1
Federal Register / Vol. 76, No. 96 / Wednesday, May 18, 2011 / Notices
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
regarding the waiver of customer
transaction fees for orders of a certain
size in options on exchange-traded
funds (‘‘ETFs’’), exchange-traded notes
(‘‘ETNs’’) and Holding Company
Depositary Receipts (‘‘HOLDRs’’) and
customer transaction fees for orders of a
certain size that are routed in whole or
in part, to one or more exchanges in
connection with the Options Order
Protection and Locked/Crossed Market
Plan referenced in Rule CBOE 6.80
(‘‘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,
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
srobinson on DSKHWCL6B1PROD with NOTICES
1. Purpose
The Exchange proposes to institute
the following fee changes effective May
2, 2011:
The Exchange currently waives
transaction fees for customer orders of
99 contracts or less in ETF, ETN and
HOLDRs options.1 For the purpose of
determining which orders qualify for
this quantity-based fee waiver, the
Exchange proposes to aggregate multiple
orders from the same executing firm for
itself or for a CMTA or correspondent
firm in the same series on the same side
of the market that are received by the
Exchange within 500 milliseconds. This
change is intended to discourage firms
from dividing orders into multiple
orders of less than 100 contracts for
1 See
CBOE Fees Schedule, Footnote 9.
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16:31 May 17, 2011
Jkt 223001
purposes of qualifying for the fee waiver
and avoiding transaction fees.
Additionally, under Section 20 of the
CBOE Fees Schedule, for each customer
order with an original size of 100 or
more contracts that is routed, in whole
or in part, to one or more exchanges in
connection with the Options Order
Protection and Locked/Crossed Market
Plan referenced in Rule 6.80, the
Exchange passes through the actual
transaction fee assessed by the
exchange(s) to which the order was
routed, minus $0.05 per contract. For
the same reason stated above, the
Exchange proposes to aggregate multiple
orders from the same executing firm for
itself or for a CMTA or correspondent
firm in the same series on the same side
of the market that are received by the
Exchange within 500 milliseconds for
the purpose of determining the order
quantity.
The proposed aggregation of orders is
similar to a provision in the Exchange’s
Order Handling System (‘‘OHS’’) Order
Cancellation Fee that enables the
Exchange to aggregate certain orders and
count them as one executed order for
purposes of the Cancellation Fee.2
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) of the Securities Exchange Act of
1934 (‘‘Act’’), 3 in general, and furthers
the objectives of Section 6(b)(4) 4 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. In
particular, the Exchange believes the
proposed rule change is equitable and
reasonable in that it is designed to
discourage firms from dividing orders
into multiple smaller size orders for
purposes of qualifying for quantitybased fee waivers and avoiding fees. In
addition, the proposed aggregation of
orders is similar to a provision in the
Exchange’s OHS Order Cancellation Fee
that enables the Exchange to aggregate
certain orders and count them as one
executed order for purposes of the
Cancellation Fee.
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.
2 See CBOE Fees Schedule, Section 14 and
Securities Exchange Act Release No. 59690 (April
2, 2009), 74 FR 16243 (April 9, 2009).
3 15 U.S.C. 78f(b).
4 15 U.S.C. 78f(b)(4).
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Fmt 4703
Sfmt 4703
28835
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 5 and subparagraph (f)(2) of
Rule 19b–4 6 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–2011–046 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–2011–046. 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
5 15
6 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
E:\FR\FM\18MYN1.SGM
18MYN1
28836
Federal Register / Vol. 76, No. 96 / Wednesday, May 18, 2011 / Notices
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of CBOE.
All comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–CBOE–2011–046 and
should be submitted on or before June
8, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–12240 Filed 5–17–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64480; File No. SR–Phlx–
2011–65]
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change by
NASDAQ OMX PHLX LLC Regarding
Opening Index Option Months and
Series
May 12, 2011.
srobinson on DSKHWCL6B1PROD 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 May 6,
2011, NASDAQ OMX PHLX LLC (‘‘Phlx’’
or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘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
The Exchange is filing with the
Commission a proposal to clarify that
the Exchange will open at least one
expiration month and one series for
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Jkt 223001
each class of index options open for
trading on the Exchange; and that the
Exchange may open additional series of
index options under certain
circumstances. The proposed change is
based directly on the recently approved
rule of another options exchange,
namely Chapter IV, Section 6 of the
NASDAQ Options Market, as well as on
Rule 1012 (Series of Options Open for
Trading) of the Exchange.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxphlx.cchwallstreet.com/
NASDAQOMXPHLX/Filings/, at the
principal office of the Exchange, on the
Commission’s Web site at https://
www.sec.gov, 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, 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 this proposed rule
change is to amend Exchange Rule
1101A to indicate that the Exchange
will open at least one expiration month
and one series for each class of index
options open for trading on the
Exchange; and that the Exchange may
open additional series of index options
under certain circumstances. The
proposed change is based directly on
the recently approved rules of another
options exchange, namely Chapter IV,
Sections 6 and 8 of the NASDAQ
Options Market (‘‘NOM’’), as well as on
Rule 1012 of the Exchange.3
In 2008, the Commission approved
the establishment of NOM and rules
pertaining thereto 4 that, among others,
3 NOM and the Exchange are each self-regulatory
organizations (‘‘SROs’’) that operate as independent
options exchanges within the NASDAQ OMX
Group.
4 See Securities Exchange Act Release No. 57478
(March 12, 2008), 73 FR 14521 (March 18, 2008)
(SR–NASDAQ–2007–004 and NASDAQ–2007–080)
(order approving rules for trading of options on the
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Frm 00111
Fmt 4703
Sfmt 4703
included NOM Chapter IV, Section 6
regarding series of options contracts
open for trading 5 and Section 8
regarding long-term options contracts.
NOM Sections 6 and 8 generally apply
to options that overlay single-stocks or
Exchange-Traded Funds and similar
products.
In 2011, the Exchange filed an
immediately effective proposal at SR–
Phlx–2011–04 to conform its rule 1012
regarding the listing of months and
series of options on stock or Exchange
Traded Fund Shares (‘‘ETFs’’) that are
approved for listing and trading on the
Exchange to the equivalent NOM rules
at Chapter IV, Section 6 and Section 8.6
By SR–Phlx–2011–04, the Exchange
harmonized its Rule 1012 regarding
opening a minimum of one option
expiration month and series for trading
and adding new series with similar
NOM procedures.7
The Exchange now proposes to
similarly revise its Rule 1101A
NASDAQ Options Market, including Chapter IV,
Sections 6 and 8).
5 NOM Chapter IV, Sec 6 states, in relevant part:
(b) At the commencement of trading on NOM of a
particular class of options, NOM will open a
minimum of one (1) series of options in that class.
The exercise price of the series will be fixed at a
price per share, relative to the underlying stock
price in the primary market at about the time that
class of options is first opened for trading on NOM.
(c) Additional series of options of the same class
may be opened for trading on NOM when Nasdaq
deems it necessary to maintain an orderly market,
to meet Customer demand or when the market price
of the underlying stock moves more than five strike
prices from the initial exercise price or prices. The
opening of a new series of options shall not affect
the series of options of the same class previously
opened. New series of options on an individual
stock may be added until the beginning of the
month in which the options contract will expire.
Due to unusual market conditions, Nasdaq, in its
discretion, may add a new series of options on an
individual stock until five (5) business days prior
to expiration.
6 See Securities Exchange Act Release No. 63700
(January 11, 2011), 76 FR 2931 (January 18, 2011)
(SR–Phlx–2011–04) (notice of filing and immediate
effectiveness conforming Phlx Rule 1012 and NOM
Chapter IV, Sections 6 and 8).
7 Rule 1012 states, in relevant part: (A) At the
commencement of trading on the Exchange of a
particular class of stock or Exchange-Traded Fund
Share options, the Exchange shall open a minimum
of one expiration month and series for each class
of options open for trading on the Exchange.
(B) Additional series of stock or Exchange-Traded
Fund Share options of the same class may be
opened for trading on the Exchange when the
Exchange deems it necessary to maintain an orderly
market, to meet customer demand or when the
market price of the underlying stock moves more
than five strike prices from the initial exercise price
or prices. The opening of a new series of options
shall not affect the series of options of the same
class previously opened. New series of options on
an individual stock may be added until the
beginning of the month in which the options
contract will expire. Due to unusual market
conditions, the Exchange, in its discretion, may add
a new series of options on an individual stock until
five (5) business days prior to expiration.
E:\FR\FM\18MYN1.SGM
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]]>Agencies
[Federal Register Volume 76, Number 96 (Wednesday, May 18, 2011)]
[Notices]
[Pages 28834-28836]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-12240]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64485; File No. SR-CBOE-2011-046]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Orders Qualifying for Certain Quantity-Based
Fee Waivers
May 13, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934, 15 U.S.C. 78s(b)(1), notice is hereby given that on April 29,
2011, Chicago Board Options Exchange, Incorporated (``CBOE'' or
``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.
[[Page 28835]]
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 regarding the waiver
of customer transaction fees for orders of a certain size in options on
exchange-traded funds (``ETFs''), exchange-traded notes (``ETNs'') and
Holding Company Depositary Receipts (``HOLDRs'') and customer
transaction fees for orders of a certain size that are routed in whole
or in part, to one or more exchanges in connection with the Options
Order Protection and Locked/Crossed Market Plan referenced in Rule CBOE
6.80 (``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, CBOE included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. CBOE has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, Proposed Rule Change
1. Purpose
The Exchange proposes to institute the following fee changes
effective May 2, 2011:
The Exchange currently waives transaction fees for customer orders
of 99 contracts or less in ETF, ETN and HOLDRs options.\1\ For the
purpose of determining which orders qualify for this quantity-based fee
waiver, the Exchange proposes to aggregate multiple orders from the
same executing firm for itself or for a CMTA or correspondent firm in
the same series on the same side of the market that are received by the
Exchange within 500 milliseconds. This change is intended to discourage
firms from dividing orders into multiple orders of less than 100
contracts for purposes of qualifying for the fee waiver and avoiding
transaction fees.
---------------------------------------------------------------------------
\1\ See CBOE Fees Schedule, Footnote 9.
---------------------------------------------------------------------------
Additionally, under Section 20 of the CBOE Fees Schedule, for each
customer order with an original size of 100 or more contracts that is
routed, in whole or in part, to one or more exchanges in connection
with the Options Order Protection and Locked/Crossed Market Plan
referenced in Rule 6.80, the Exchange passes through the actual
transaction fee assessed by the exchange(s) to which the order was
routed, minus $0.05 per contract. For the same reason stated above, the
Exchange proposes to aggregate multiple orders from the same executing
firm for itself or for a CMTA or correspondent firm in the same series
on the same side of the market that are received by the Exchange within
500 milliseconds for the purpose of determining the order quantity.
The proposed aggregation of orders is similar to a provision in the
Exchange's Order Handling System (``OHS'') Order Cancellation Fee that
enables the Exchange to aggregate certain orders and count them as one
executed order for purposes of the Cancellation Fee.\2\
---------------------------------------------------------------------------
\2\ See CBOE Fees Schedule, Section 14 and Securities Exchange
Act Release No. 59690 (April 2, 2009), 74 FR 16243 (April 9, 2009).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Securities Exchange Act of 1934 (``Act''), \3\ in
general, and furthers the objectives of Section 6(b)(4) \4\ 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. In
particular, the Exchange believes the proposed rule change is equitable
and reasonable in that it is designed to discourage firms from dividing
orders into multiple smaller size orders for purposes of qualifying for
quantity-based fee waivers and avoiding fees. In addition, the proposed
aggregation of orders is similar to a provision in the Exchange's OHS
Order Cancellation Fee that enables the Exchange to aggregate certain
orders and count them as one executed order for purposes of the
Cancellation Fee.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f(b).
\4\ 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 \5\ and subparagraph (f)(2) of Rule 19b-4 \6\
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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 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 (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-CBOE-2011-046 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-2011-046. 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
[[Page 28836]]
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for Web site viewing and printing in the Commission's Public
Reference Room, 100 F Street, NE., Washington, DC 20549, on official
business days between the hours of 10 a.m. and 3 p.m. Copies of such
filing also will be available for inspection and copying at the
principal office of CBOE. All comments received will be posted without
change; the Commission does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly. All submissions should refer to File Number
SR-CBOE-2011-046 and should be submitted on or before June 8, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-12240 Filed 5-17-11; 8:45 am]
BILLING CODE 8011-01-P
