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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 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-2011-071 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\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-19979 Filed 8-5-11; 8:45 am]
BILLING CODE 8011-01-P
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