Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule Concerning Facilitation Orders in Multiply-Listed FLEX Options, 48190-48192 [2011-19979]
Download as PDF
48190
Federal Register / Vol. 76, No. 152 / Monday, August 8, 2011 / Notices
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
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)(ii) of the Act 6 and
subparagraph (f)(2) of Rule 19b–4
thereunder.7 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
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 is consistent with the Act.
Comments may be submitted by any of
the following methods:
mstockstill on DSK4VPTVN1PROD with NOTICES
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–NASDAQ–2011–101 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–NASDAQ–2011–101. 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 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–NASDAQ–2011–101, and
should be submitted on or before
August 29, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–19983 Filed 8–5–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65007; File No. SR–CBOE–
2011–071]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Fee
Schedule Concerning Facilitation
Orders in Multiply-Listed FLEX Options
August 2, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on August 1,
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, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
6 15
U.S.C. 78s(b)(3)(a)(ii).
7 17 CFR 240.19b–4(f)(2).
VerDate Mar<15>2010
18:57 Aug 05, 2011
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 hereby proposes to
waive the Clearing Trading Permit
Holder Proprietary Transaction Fee for
Clearing Trading Permit Holders
executing facilitation orders in
multiply-listed FLEX Options classes.
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
Over-the-counter (‘‘OTC’’) trading and
Flexible Exchange Options (‘‘FLEX’’)
trading are similar in that both are
highly customized, and largely involve
customer-to-firm trades. Due to
regulatory changes and other market
forces, the Exchange believes that
market participants interested in
executing these types of customized,
customer-to-firm trades will begin to
transition from executing such trades in
the OTC markets to executing them as
FLEX trades. Currently, a number of
other exchanges which also host FLEX
trading, including the NASDAQ OMX
PHLX LLC (‘‘PHLX’’), do not charge
transaction fees on firm facilitation
orders in multiply-listed FLEX Options
classes 3 (the nature of a facilitation
order is such that it provides a market
for a trade, and only Clearing Trading
Permit Holders (or firms, on other
exchanges) can enter such orders).
Because CBOE anticipates an increase in
FLEX trading, and because CBOE would
like to be able to compete with other
exchanges for FLEX trades on an even
1 15
Jkt 223001
PO 00000
Frm 00074
Fmt 4703
3 See
Sfmt 4703
E:\FR\FM\08AUN1.SGM
PHLX Fee Schedule, page 9.
08AUN1
Federal Register / Vol. 76, No. 152 / Monday, August 8, 2011 / Notices
footing, the Exchange hereby proposes
to waive the Clearing Trading Permit
Holder Proprietary Transaction Fee for
Clearing Trading Permit Holders
executing facilitation orders in
multiply-listed FLEX Options classes
(the ‘‘Fee Waiver’’).
A number of Clearing Trading Permit
Holders will not be affected by this rule
change because such Clearing Trading
Permit Holders trade multiply-listed
options in such volume on the Exchange
(in capacities other than as a Clearing
Trading Permit Holder executing
facilitation orders in multiply-listed
FLEX Options classes) that their overall
trading activity already meets the
Exchange’s $75,000 per month
Multiply-Listed Option Fee Cap 4 (the
‘‘Fee Cap’’) and the Fee Waiver will not
bring such Clearing Trading Permit
Holders below the Fee Cap. However,
there are some firms that are very active
in OTC trading, but not very active
(relatively speaking) in the trading of
listed options, and therefore do not
reach the Fee Cap. CBOE proposes the
Fee Waiver in order to attract such firms
to send order flow to the Exchange.
The Exchange proposes limiting the
Fee Waiver to Clearing Trading Permit
Holders facilitation orders because other
exchanges also limit not charging such
fees to facilitation orders,5 and the
Exchange intends the proposed Fee
Waiver to allow CBOE to compete with
such exchanges for such orders. The
Exchange proposes limiting the Fee
Waiver to multiply-listed FLEX Options
classes, as opposed to also including
singly-listed (proprietary) FLEX Options
classes, because the Exchange devoted a
lot of resources to develop such
proprietary singly-listed FLEX Options
classes, and therefore must continue to
collect fees for trading in such classes in
order to justify and recoup such
development costs.
The proposed rule change will take
effect on August 1, 2011.
mstockstill on DSK4VPTVN1PROD with NOTICES
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act,6
in general, and furthers the objectives of
Section 6(b)(4) 7 of the Act in particular,
in that it is designed to provide for the
equitable allocation of reasonable dues,
fees, and other charges among CBOE
Trading Permit Holders and other
persons using Exchange facilities. The
Exchange believes the proposed Fee
Waiver is reasonable because it merely
4 See the Exchange Fee Schedule, Section 1 (on
page 2).
5 See PHLX Fee Schedule, page 9.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(4).
VerDate Mar<15>2010
18:57 Aug 05, 2011
Jkt 223001
waives an already-existing fee and
certainly replacing a current fee with no
fee is a ‘‘reasonable’’ change for those
parties who had previously been paying
the fee. The Exchange also believes the
proposed Fee Waiver is reasonable
because it would make the amount
comparable to the fee charged on other
exchanges for similar facilitation orders
in multiply-listed FLEX Options.8
The Exchange believes waiving the
Clearing Trading Permit Holder
Proprietary Transaction Fee for Clearing
Trading Permit Holders executing
facilitation orders in multiply-listed
FLEX Options classes is equitable and
not unfairly discriminatory because the
Exchange believes the Fee Waiver will
attract new FLEX order flow to the
Exchange and incentivize Clearing
Trading Permit Holders firms to execute
more orders on the Exchange. To the
extent that this purpose is achieved, all
of the Exchange’s market participants
should benefit from the improved
market liquidity. Further, other
exchanges also do not charge
transaction fees for such trades.9 The
Exchange believes limiting the proposed
Fee Waiver to multiply-listed FLEX
Options is equitable and not unfairly
discriminatory because the Exchange
has devoted a lot of resources to develop
proprietary singly-listed FLEX Options
classes, and therefore must continue to
collect fees for trading in such classes in
order to justify and recoup such
development costs.
The Exchange operates in a highly
competitive market in which
sophisticated and knowledgeable
market participants readily can, and do,
send order flow to competing exchanges
based on fee levels. The Exchange
believes that the fees it assesses must be
competitive with fees assessed on other
options exchanges. The Exchange
believes that this competitive
marketplace impacts the fees present on
the Exchange today and influences the
proposals set forth above.
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.
8 See
9 See
PO 00000
PHLX Fee Schedule, page 9.
PHLX Fee Schedule, page 9.
Frm 00075
Fmt 4703
Sfmt 4703
48191
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 10 and
subparagraph (f)(2) of Rule 19b–4 11
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–2011–071 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–2011–071. 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
10 15
11 17
E:\FR\FM\08AUN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
08AUN1
48192
Federal Register / Vol. 76, No. 152 / Monday, August 8, 2011 / Notices
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 the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File No. SR–CBOE–
2011–071 and should be submitted on
or before August 29, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–19979 Filed 8–5–11; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
II. Self-Regulatory Organization’s
Statement of Purpose of, and Statutory
Basis for, the Proposed Rule Change
[Release No. 34–65008; File No. SR–NSCC–
2011–06]
In its filing with the Commission,
NSCC 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. NSCC has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the Analytic
Reporting Service Fees
August 2, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
July 21, 2011, the National Securities
Clearing Corporation (‘‘NSCC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared primarily by NSCC.
NSCC filed the proposed rule change
pursuant to Section 19(b)(3)(A)(ii) of the
Act 2 and Rule 19b–4(f)(2) thereunder 3
so that the proposal was effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
BILLING CODE 8011–01–P
I. Self-Regulatory Organization’s
Statement of Terms of Substance of the
Proposed Rule Change
The proposed rule change will add
new fees for NSCC’s Analytics
Reporting Service.
Version 6
Release
Release
Release
Release
Release
1.0
2.0
3.0
4.0
5.0
Tier 1 7
......................................................................................................
......................................................................................................
......................................................................................................
......................................................................................................
......................................................................................................
mstockstill on DSK4VPTVN1PROD with NOTICES
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(ii).
3 17 CFR 240.19b–4(f)(2).
4 For a description of NSCC’s IPS Analytic
Reporting Service, refer to Securities Exchange Act
Release Nos. 63604 (Dec. 23, 2010), 75 FR 82115
(Dec. 29, 2010), and 64666 (Jun. 14, 2011), FR 35931
(Jun. 20, 2011).
1 15
VerDate Mar<15>2010
18:57 Aug 05, 2011
Jkt 223001
The purpose of the proposed rule
change is to revise NSCC’s fee schedule
as listed in Addendum A of NSCC’s
Rules and Procedures in order to
establish the fees applicable to
Insurance Product Service (‘‘IPS’’)
Members and Limited Members
(collectively, ‘‘IPS Members’’) using
NSCC’s IPS Analytic Reporting Service.
On June 20, 2011, NSCC IPS launched
its new IPS Analytic Reporting Service
(‘‘Service’’).4 NSCC has offered the
Service to its IPS Members free of
charge since its implementation.
Effective September 1, 2011, NSCC will
apply the fees applicable to the new
Service to IPS Members, including IPS
Members whom have ‘‘opted-out’’ as
that term is defined in Rule 57 of
NSCC’s Rules and Procedures.5 The fees
for the Analytic Reporting Service will
be as follows:
Tier 2 8
$1,000
3,000
8,000
10,500
12,000
$750
2,250
6,000
7,875
9,000
Tier 3 9
$500
1,500
4,000
5,250
6,000
Opt-out
members
$1,667
5,000
13,333
17,500
20,000
NSCC and provides for the equitable
allocation of fees among NSCC’s
members.
NSCC states that the proposed rule
change is consistent with the
requirements of Section 17A of the
Act 10 and the rules and regulations
thereunder because it updates NSCC’s
fee schedule to specify the fees
associated with a service provided by
12 17
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
B. Self-Regulatory Organization’s
Statement on Burden on Competition
5 NSCC’s Rules and Procedures can be found at
https://www.dtcc.com/legal/rules_proc/nscc_
rules.pdf.
6 Roll out of each subsequent Release Version will
be based on client feedback and the timing of
functionality enhancements. Roll out of each
subsequent Release Version supersedes and
replaces the immediately preceding Release
Version.
7 Tier 1 = Carriers with $25 billion or more in
assets; Dealers with 10,000 or more financial
advisors.
8 Tier 2 = Carriers with $4 billion or more but less
than $25 billion in assets; Dealers with 3,000 or
more, but less than 10,000, financial advisors.
9 Tier 3 = Carriers with less than $4 billion in
assets; Dealers with less than 3,000 financial
advisors.
10 15 U.S.C. 78q–1.
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
NSCC does not believe that the
proposed rule change will have any
impact or impose any burden on
competition.
E:\FR\FM\08AUN1.SGM
08AUN1
Agencies
[Federal Register Volume 76, Number 152 (Monday, August 8, 2011)]
[Notices]
[Pages 48190-48192]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-19979]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65007; File No. SR-CBOE-2011-071]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend the Fee Schedule Concerning Facilitation
Orders in Multiply-Listed FLEX Options
August 2, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on August 1, 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, II, and III below, which Items have been
prepared by the Exchange. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange hereby proposes to waive the Clearing Trading Permit
Holder Proprietary Transaction Fee for Clearing Trading Permit Holders
executing facilitation orders in multiply-listed FLEX Options classes.
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
Over-the-counter (``OTC'') trading and Flexible Exchange Options
(``FLEX'') trading are similar in that both are highly customized, and
largely involve customer-to-firm trades. Due to regulatory changes and
other market forces, the Exchange believes that market participants
interested in executing these types of customized, customer-to-firm
trades will begin to transition from executing such trades in the OTC
markets to executing them as FLEX trades. Currently, a number of other
exchanges which also host FLEX trading, including the NASDAQ OMX PHLX
LLC (``PHLX''), do not charge transaction fees on firm facilitation
orders in multiply-listed FLEX Options classes \3\ (the nature of a
facilitation order is such that it provides a market for a trade, and
only Clearing Trading Permit Holders (or firms, on other exchanges) can
enter such orders). Because CBOE anticipates an increase in FLEX
trading, and because CBOE would like to be able to compete with other
exchanges for FLEX trades on an even
[[Page 48191]]
footing, the Exchange hereby proposes to waive the Clearing Trading
Permit Holder Proprietary Transaction Fee for Clearing Trading Permit
Holders executing facilitation orders in multiply-listed FLEX Options
classes (the ``Fee Waiver'').
---------------------------------------------------------------------------
\3\ See PHLX Fee Schedule, page 9.
---------------------------------------------------------------------------
A number of Clearing Trading Permit Holders will not be affected by
this rule change because such Clearing Trading Permit Holders trade
multiply-listed options in such volume on the Exchange (in capacities
other than as a Clearing Trading Permit Holder executing facilitation
orders in multiply-listed FLEX Options classes) that their overall
trading activity already meets the Exchange's $75,000 per month
Multiply-Listed Option Fee Cap \4\ (the ``Fee Cap'') and the Fee Waiver
will not bring such Clearing Trading Permit Holders below the Fee Cap.
However, there are some firms that are very active in OTC trading, but
not very active (relatively speaking) in the trading of listed options,
and therefore do not reach the Fee Cap. CBOE proposes the Fee Waiver in
order to attract such firms to send order flow to the Exchange.
---------------------------------------------------------------------------
\4\ See the Exchange Fee Schedule, Section 1 (on page 2).
---------------------------------------------------------------------------
The Exchange proposes limiting the Fee Waiver to Clearing Trading
Permit Holders facilitation orders because other exchanges also limit
not charging such fees to facilitation orders,\5\ and the Exchange
intends the proposed Fee Waiver to allow CBOE to compete with such
exchanges for such orders. The Exchange proposes limiting the Fee
Waiver to multiply-listed FLEX Options classes, as opposed to also
including singly-listed (proprietary) FLEX Options classes, because the
Exchange devoted a lot of resources to develop such proprietary singly-
listed FLEX Options classes, and therefore must continue to collect
fees for trading in such classes in order to justify and recoup such
development costs.
---------------------------------------------------------------------------
\5\ See PHLX Fee Schedule, page 9.
---------------------------------------------------------------------------
The proposed rule change will take effect on August 1, 2011.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\6\ in general, and furthers the objectives of Section 6(b)(4) \7\
of the Act in particular, in that it is designed to provide for the
equitable allocation of reasonable dues, fees, and other charges among
CBOE Trading Permit Holders and other persons using Exchange
facilities. The Exchange believes the proposed Fee Waiver is reasonable
because it merely waives an already-existing fee and certainly
replacing a current fee with no fee is a ``reasonable'' change for
those parties who had previously been paying the fee. The Exchange also
believes the proposed Fee Waiver is reasonable because it would make
the amount comparable to the fee charged on other exchanges for similar
facilitation orders in multiply-listed FLEX Options.\8\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4).
\8\ See PHLX Fee Schedule, page 9.
---------------------------------------------------------------------------
The Exchange believes waiving the Clearing Trading Permit Holder
Proprietary Transaction Fee for Clearing Trading Permit Holders
executing facilitation orders in multiply-listed FLEX Options classes
is equitable and not unfairly discriminatory because the Exchange
believes the Fee Waiver will attract new FLEX order flow to the
Exchange and incentivize Clearing Trading Permit Holders firms to
execute more orders on the Exchange. To the extent that this purpose is
achieved, all of the Exchange's market participants should benefit from
the improved market liquidity. Further, other exchanges also do not
charge transaction fees for such trades.\9\ The Exchange believes
limiting the proposed Fee Waiver to multiply-listed FLEX Options is
equitable and not unfairly discriminatory because the Exchange has
devoted a lot of resources to develop proprietary singly-listed FLEX
Options classes, and therefore must continue to collect fees for
trading in such classes in order to justify and recoup such development
costs.
---------------------------------------------------------------------------
\9\ See PHLX Fee Schedule, page 9.
---------------------------------------------------------------------------
The Exchange operates in a highly competitive market in which
sophisticated and knowledgeable market participants readily can, and
do, send order flow to competing exchanges based on fee levels. The
Exchange believes that the fees it assesses must be competitive with
fees assessed on other options exchanges. The Exchange believes that
this competitive marketplace impacts the fees present on the Exchange
today and influences the proposals set forth above.
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 \10\ and subparagraph (f)(2) of Rule 19b-4 \11\ 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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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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-2011-071 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-2011-071. 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
[[Page 48192]]
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 the Exchange. All comments received
will be posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File No. SR-CBOE-2011-071 and should be submitted on or
before August 29, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-19979 Filed 8-5-11; 8:45 am]
BILLING CODE 8011-01-P