Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to an Extension of the Waiver of the Transaction Fee for Public Customer Orders in SPY Options Executed in Open Outcry or in the Automated Improvement Mechanism, 40948-40950 [2011-17425]
Download as PDF
40948
Federal Register / Vol. 76, No. 133 / Tuesday, July 12, 2011 / Notices
emcdonald on DSK2BSOYB1PROD with NOTICES
diversification of each entity’s portfolio,
the estimated income tax effects of the
purchase on each entity, the amount of
funds of each entity available for
investment, and the length of time such
funds have been available for
investment.
Applicants’ Legal Analysis
1. Applicants believe that the Funds
will not be ‘‘investment companies’’
under sections 3(a)(1)(A) or 3(a)(1)(C) of
the Act. If the Funds are deemed to be
investment companies, however,
applicants request an exemption under
section 6(c) and 6(e) of the Act from all
provisions of the Act, except sections 37
through 53 of the Act and the rules and
regulations under those sections, except
rule 38a-1 thereunder.
2. Section 3(a)(1)(A) of the Act
provides that an issuer is an
‘‘investment company’’ if it is or holds
itself out as being engaged primarily, or
proposes to engage primarily, in the
business of investing, reinvesting, or
trading in securities. Applicants believe
that the Funds will not be investment
companies under section 3(a)(1)(A)
because each Fund will be in the
business of investing in and being a
beneficial owner of Apartment
Complexes, not securities.
3. Section 3(a)(1)(C) of the Act
provides that an issuer is an
‘‘investment company’’ if it is engaged
or proposes to engage in the business of
investing, reinvesting, owning, holding,
or trading in securities, and owns or
proposes to acquire ‘‘investment
securities’’ having a value exceeding
40% of the value of such issuer’s total
assets (exclusive of Government
securities and cash items). Applicants
state that although the Local Limited
Partnership interests may be deemed
‘‘investment securities,’’ they are not
readily marketable, cannot be sold
without severe adverse tax
consequences, and have no value apart
from the value of the Apartment
Complexes owned by the Local Limited
Partnerships.
4. Applicants believe that the two-tier
structure is consistent with the purposes
and criteria set forth in the
Commission’s release concerning twotier real estate partnerships (the
‘‘Release’’).1 The Release states that
investment companies that are two-tier
real estate partnerships that invest in
limited partnerships engaged in the
development and operation of housing
for low and moderate income persons
may qualify for an exemption from the
Act pursuant to section 6(c). Section
1 Investment Company Act Release No. 8456
(Aug. 9, 1974).
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16:14 Jul 11, 2011
Jkt 223001
6(c) provides that the Commission may
exempt any person from any provision
of the Act and any rule thereunder, if,
and to the extent that, such exemption
is necessary or appropriate in the public
interest and consistent with the
protection of investors and the purposes
fairly intended by the policy and
provisions of the Act. Section 6(e)
permits the Commission to require
companies exempted from the
registration requirements of the Act to
comply with certain specified
provisions of the Act as though the
company were a registered investment
company.
5. The Release lists two conditions,
designed for the protection of investors,
which must be satisfied by two-tier
partnerships to qualify for the
exemption under section 6(c). First,
interests in the issuer should be sold
only to persons for whom investments
in limited profit, essentially tax shelter,
investments would not be unsuitable.
Second, requirements for fair dealing by
the general partner of the issuer with the
limited partners of the issuer should be
included in the basic organizational
documents of the company.
6. Applicants represent that Units will
be sold only to persons for whom
investment in limited profit, essentially
tax shelter, investments would be
suitable. Applicants further state that
the requirements for fair dealing by the
Manager with the Members are included
in the basic organizational documents of
each Fund. Applicants assert, among
other things, that the suitability
standards set forth in the application,
the requirements for fair dealing
provided by the Operating Agreement,
and pertinent governmental regulations
imposed on each Local Limited
Partnership by various Federal, state,
and local agencies provide protection to
Accredited Investors in Units. In
addition, applicants assert that the
requested exemption is both necessary
and appropriate in the public interest.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–17430 Filed 7–11–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
PO 00000
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Fmt 4703
Sfmt 4703
Commission will hold a Closed Meeting
on Thursday, July 14, 2011 at 2 p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (5), (7), 9(ii)
and (10), permit consideration of the
scheduled matters at the Closed
Meeting.
Commissioner Walter, as duty officer,
voted to consider the items listed for the
Closed Meeting in a closed session.
The subject matter of the Closed
Meeting scheduled for Thursday, July
14, 2011 will be:
Institution and settlement of injunctive
actions;
Institution and settlement of
administrative proceedings;
Adjudicatory matters; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact:
The Office of the Secretary at (202)
551–5400.
Dated: July 7, 2011.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–17520 Filed 7–8–11; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64817; File No. SR–CBOE–
2011–059]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to an Extension
of the Waiver of the Transaction Fee
for Public Customer Orders in SPY
Options Executed in Open Outcry or in
the Automated Improvement
Mechanism
July 6, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
1 15
2 17
E:\FR\FM\12JYN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
12JYN1
Federal Register / Vol. 76, No. 133 / Tuesday, July 12, 2011 / Notices
notice is hereby given that on June 29,
2011, the 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 Exchange has
designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by CBOE under
Section 19(b)(3)(A)(ii) of the Act 3 and
Rule 19b–4(f)(2) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Fees Schedule to extend through
September 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, 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.
emcdonald on DSK2BSOYB1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. 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
3 15
4 17
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
VerDate Mar<15>2010
16:14 Jul 11, 2011
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40949
Mechanism (‘‘AIM’’).5 This fee waiver is
due to expire on June 30, 2011. The
Exchange proposes to extend the fee
waiver through September 30, 2011.6
The proposed fee waiver is intended to
attract more customer volume on the
Exchange in this product.
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.
2. Statutory Basis
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.
The Exchange believes the proposed
rule change is consistent with the Act,7
in general, and furthers the objectives of
Section 6(b)(4) 8 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 [sic] by the
Exchange. Specifically, the Exchange
assesses manually executed brokerdealer orders a different rate ($.25 per
contract) as compared to electronically
executed broker-dealer orders ($.45 per
contract).9 Other exchange fee schedules
also distinguish between electronically
and non-electronically executed
orders.10
5 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), Securities Exchange Act
Release No. 34–64197 (April 6, 2011), 76 FR 20390
(April 12, 2011) 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.
6 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.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(4).
9 See CBOE Fees Schedule, Section 1.
10 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
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
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 11 and
subparagraph (f)(2) of Rule 19b–4 12
thereunder. At any time within 60 days
of the filing of the proposed rule change,
the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2011–059 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–2011–059. This file
number should be included on the
subject line if e-mail is used. To help the
NYSE Arca Options Fees Schedule, Trade Related
Charges.
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(2).
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40950
Federal Register / Vol. 76, No. 133 / Tuesday, July 12, 2011 / Notices
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 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–2011–059 and
should be submitted on or before
August 2, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–17425 Filed 7–11–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64816; File No. PCAOB–
2011–02]
Public Company Accounting Oversight
Board; Notice of Filing of Proposed
Board Funding Final Rules for
Allocation of the Board’s Accounting
Support Fee Among Issuers, Brokers,
and Dealers, and Other Amendments
to the Board’s Funding Rules
emcdonald on DSK2BSOYB1PROD with NOTICES
July 6, 2011.
Pursuant to Section 107(b) of the
Sarbanes-Oxley Act of 2002 (the ‘‘Act’’),
notice is hereby given that on June 21,
2011, the Public Company Accounting
Oversight Board (the ‘‘Board’’ or the
‘‘PCAOB’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rules
described in Items I and II below, which
13 17
16:14 Jul 11, 2011
I. Board’s Statement of the Terms of
Substance of the Proposed Rules
On June 14, 2011, the Board adopted
amendments to its rules relating to the
funding of the Board’s operations
(PCAOB Rules 7100 through 7106), and
amended certain definitions that would
appear in PCAOB Rule 1001, related to
Section 109 of the Sarbanes-Oxley Act,
as amended by the Dodd-Frank Wall
Street Reform and Consumer Protection
Act 1 (the ‘‘Dodd-Frank Act’’)
(collectively, ‘‘the proposed rules’’). The
text of the proposed rules is set out
below (additions are italicized;
deletions are in [brackets]).
RULES OF THE BOARD
SECTION 1. GENERAL PROVISIONS
* * *
Rule 1001. Definitions of Terms Employed
in Rules.
* * *
(a)(i) [Accounting Support Fee] [Reserved]
[The term ‘‘Accounting Support Fee’’
means the fee described in Rule 7100
Sarbanes-Oxley Act of 2002, as amended.]
(a)(iii) Act
The term ‘‘Act’’ means the Sarbanes-Oxley
Act of 2002, as amended.
* * *
(b)(iii) Broker
The term ‘‘broker’’ means a broker (as
defined in Section 3(a)(4) of the Exchange
Act), that is required to file a balance sheet,
income statement, or other financial
statement under Section 17(e)(1)(A) of that
Act, where such balance sheet, income
statement, or financial statement is required
to be certified by a registered public
accounting firm.
(b)(iv) Broker-Dealer Accounting Support Fee
The term ‘‘broker-dealer accounting
support fee’’ means the portion of the
accounting support fee established by the
Board that is to be allocated among brokers
and dealers pursuant to the rules of the
Board.
* * *
(c)(iii) Common Equity
The term ‘‘common equity’’ means any
class of common stock or an equivalent
interest, including but not limited to a unit
of beneficial interest in a trust or a limited
partnership interest.
* * *
(d)(iii) Dealer
The term ‘‘dealer’’ means a dealer (as
defined in Section 3(a)(5) of the Exchange
Act), that is required to file a balance sheet,
income statement, or other financial
1 Public Law 111–203, 124 Stat. 1376 (July 21,
2010).
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
items have been prepared by the Board.
The Commission is publishing this
notice to solicit comments on the
proposed rules from interested persons.
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Frm 00079
Fmt 4703
Sfmt 4703
statement under Section 17(e)(1)(A) of that
Act, where such balance sheet, income
statement, or financial statement is required
to be certified by a registered public
accounting firm.
* * *
(i)(i) Issuer Market Capitalization
The terms ‘‘issuer market capitalization’’
and ‘‘market capitalization of an issuer’’
mean—
(1) Except as provided in paragraph (i)(i)(2)
of this rule, the aggregate market value of all
classes of an issuer’s voting and non-voting
common [common stock]equity that trade in
the United States; or
(2) With respect to an issuer: (i) that is
registered under Section 8 of the Investment
Company Act or has elected to be regulated
as a business development company
pursuant to Section 54 of the Investment
Company Act, and (ii) whose securities are
not traded on a national securities exchange
or whose [quoted on Nasdaq]share price is
not otherwise publicly available, the issuer’s
net asset value.
(i)(v) Issuer Accounting Support Fee
The term ‘‘issuer accounting support fee’’
means the portion of the accounting support
fee established by the Board that is to be
allocated among issuers pursuant to the rules
of the Board.
* * *
(i[n])(vi) [Notice]Invoice
The term ‘‘[notice]invoice’’ means the
document sent by the Board to an issuer,
broker, or dealer, pursuant to Rule 7103[2],
setting forth such issuer’s, broker’s, or
dealer’s share of the accounting support fee
under Section 109 of the Act and Rules 7101,
[and]7102, and 7103.
* * *
(s)(v) Self-Regulatory Organization
The term ‘‘self-regulatory organization’’
means any national securities exchange,
registered securities association, or registered
clearing agency, or (solely for purposes of
Sections 19(b), 19(c), and 23(b) of the
Exchange Act) the Municipal Securities
Rulemaking Board established by Section
15B of the Exchange Act.
* * *
(t)(ii) Tentative Net Capital
The term ‘‘tentative net capital’’ has the
same meaning as such term is defined under
Rule 15c3–1(c)(15) under the Exchange Act.
(t)(iii) Total Accounting Support Fee
The term ‘‘total accounting support fee’’
means the fee described in Rule 7100.
* * *
SECTION 7. FUNDING
* * *
Rule 7100. Accounting Support Fees.
The Board shall [calculate]establish a
total[n] accounting support fee each year in
accordance with the Act. The total
accounting support fee shall be equitably
allocated between issuers (the ‘‘issuer
accounting support fee’’) and brokers and
dealers (the ‘‘broker-dealer accounting
support fee’’). [The accounting support fee
E:\FR\FM\12JYN1.SGM
12JYN1
Agencies
[Federal Register Volume 76, Number 133 (Tuesday, July 12, 2011)]
[Notices]
[Pages 40948-40950]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-17425]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64817; File No. SR-CBOE-2011-059]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to an Extension of the Waiver of the Transaction
Fee for Public Customer Orders in SPY Options Executed in Open Outcry
or in the Automated Improvement Mechanism
July 6, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\
[[Page 40949]]
notice is hereby given that on June 29, 2011, the 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 Exchange has designated this proposal as
one establishing or changing a due, fee, or other charge imposed by
CBOE under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposal effective upon filing with
the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its Fees Schedule to extend through
September 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, 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
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'').\5\ This fee
waiver is due to expire on June 30, 2011. The Exchange proposes to
extend the fee waiver through September 30, 2011.\6\ The proposed fee
waiver is intended to attract more customer volume on the Exchange in
this product.
---------------------------------------------------------------------------
\5\ 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), Securities Exchange Act Release No. 34-64197 (April 6, 2011),
76 FR 20390 (April 12, 2011) 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.
\6\ 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.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act,\7\ in general, and furthers the objectives of Section 6(b)(4)
\8\ 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 [sic] 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).\9\
Other exchange fee schedules also distinguish between electronically
and non-electronically executed orders.\10\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
\9\ See CBOE Fees Schedule, Section 1.
\10\ 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 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 \11\ and subparagraph (f)(2) of Rule 19b-4 \12\ thereunder.
At any time within 60 days of the filing of the proposed rule change,
the Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 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-2011-059 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-2011-059. This file
number should be included on the subject line if e-mail is used. To
help the
[[Page 40950]]
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 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-2011-059 and should be submitted on or before August 2, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-17425 Filed 7-11-11; 8:45 am]
BILLING CODE 8011-01-P