Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Customer Large Trade Discount, 63680-63682 [2011-26378]
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63680
Federal Register / Vol. 76, No. 198 / Thursday, October 13, 2011 / Notices
meeting will begin at 9 a.m. (EDT) and
will be open to the public, except for a
period of approximately one hour when
the Committee will meet in an
administrative work session during
lunch. The public portions of the
meeting will be Web cast on the
Commission’s Web site at https://
www.sec.gov. Persons needing special
accommodations to take part because of
a disability should notify the contact
person listed below. The public is
invited to submit written statements to
the Committee.
The agenda for the meeting includes
opening remarks, introduction of
Committee members, discussion of the
Committee’s agenda and organization,
and discussion of capital formation
issues relevant to small and emerging
companies.
DATES: Written statements should be
received on or before October 25, 2011.
ADDRESSES: Written statements may be
submitted by any of the following
methods:
sroberts on DSK5SPTVN1PROD with NOTICES
Electronic Statements
• Use the Commission’s Internet
submission form (https://www.sec.gov/
info/smallbus/acsec.shtml); or
• Send an e-mail message to rulecomments@sec.gov. Please include File
Number 265–27 on the subject line; or
Paper Statements
• Send paper statements in triplicate
to Elizabeth M. Murphy, Federal
Advisory Committee Management
Officer, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–9303.
All submissions should refer to File No.
265–27. This file number should be
included on the subject line if e-mail is
used. To help us process and review
your statement more efficiently, please
use only one method. The Commission
will post all statements on the Advisory
Committee’s Web site (https://
www.sec.gov./info/smallbus/
acsec.shtml).
Statements also will be available for
Web site viewing and printing in the
Commission’s Public Reference Room,
100 F Street, NE., Room 1580,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. All statements received
will be posted without change; we do
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly.
FOR FURTHER INFORMATION CONTACT:
Johanna V. Losert, Special Counsel, at
(202) 551–3460, Office of Small
Business Policy, Division of Corporation
VerDate Mar<15>2010
16:50 Oct 12, 2011
Jkt 226001
Finance, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–3628.
SUPPLEMENTARY INFORMATION: In
accordance with Section 10(a) of the
Federal Advisory Committee Act, 5
U.S.C.–App. 1, § 10(a), and the
regulations thereunder, Meredith B.
Cross, Designated Federal Officer of the
Committee, has ordered publication of
this notice.
ADDRESSES:
Dated: October 7, 2011.
Elizabeth M. Murphy,
Committee Management Officer.
Paper Comments
[FR Doc. 2011–26441 Filed 10–12–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65511; File No. 4–639]
Public Roundtable on Execution,
Clearance and Settlement of Microcap
Securities
Securities and Exchange
Commission.
ACTION: Notice of roundtable discussion;
request for comment.
AGENCY:
On Monday, October 17,
2011, commencing at 1 p.m. and ending
at 5 p.m., staff of the Securities and
Exchange Commission (‘‘SEC’’ or
‘‘Agency’’) will hold a public roundtable
meeting at which invited participants
will discuss various issues related to the
Execution, Clearance and Settlement of
Microcap Securities.
The roundtable discussion will be
held in the multi-purpose room of the
Securities and Exchange Commission
headquarters at 100 F Street, NE., in
Washington, DC on Monday, October
17, 2011, commencing at 1 p.m. and
ending at 5 p.m. The public is invited
to observe the roundtable discussion.
Seating will be available on a first-come,
first-served basis. The roundtable
discussion also will be available via
webcast on the Commission’s Web site
at https://www.sec.gov.
The roundtable will consist of a series
of three panels. Panelists will consider
a range of microcap securities topics,
such as the current issues facing small
cap issuers in the clearance and
settlement process, potential regulatory
changes impacting the Over-TheCounter markets, and Anti-Money
Laundering concerns specific to
microcap issuers.
DATES: The roundtable discussion will
be held on Monday, October 17, 2011.
The Commission will accept comments
regarding issues addressed at the
roundtable until October 31, 2011.
SUMMARY:
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Comments may be
submitted by any of the following
methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/other.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number 4–639 on the subject line.
• 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 4–639. This file number should
be included on the subject line if e-mail
is used. To help us 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). Comments are also
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. All comments received
will be posted without change; we do
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly.
FOR FURTHER INFORMATION CONTACT: The
Microcap Roundtable Hotline at (202)
551–6607, Division of Enforcement,
Securities and Exchange Commission,
100 F Street, NE., in Washington, DC
20549–7010.
Dated: October 7, 2011.
By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–26440 Filed 10–12–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65491; File No. SR–CBOE–
2011–093]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Customer
Large Trade Discount
October 6, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
E:\FR\FM\13OCN1.SGM
13OCN1
Federal Register / Vol. 76, No. 198 / Thursday, October 13, 2011 / Notices
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
3, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Fees Schedule regarding the Customer
Large Trade Discount. 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.
sroberts on DSK5SPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to clarify the
process for the qualification of a
customer order for the Discount.3 The
Discount is intended to cap fees on large
customer trades (the quantity of
contracts necessary for a large customer
trade to qualify for the Discount varies
by product).
The Floor Broker Workstations and
PULSe Workstations, as well as any
other front end system used to transmit
orders to the Exchange (together, the
‘‘Workstations’’) are order repositories
into which orders can be entered prior
to being sent to CBOEdirect, which is a
trade engine through which orders are
processed. Sometimes a broker will
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Exchange Fees Schedule, Section 18.
2 17
VerDate Mar<15>2010
16:50 Oct 12, 2011
Jkt 226001
receive a customer order large enough to
qualify for the Discount (a ‘‘Large
Customer Order’’) and have to break up
the order into a number of smaller
orders to trade throughout the day due
to lack of available volume when the
order originally comes in. When this
occurs, the broker sometimes may not
first enter the entire order quantity into
one of the Workstations (thereby giving
the various smaller orders the same
order ID), instead breaking up the Large
Customer Order himself and entering
the smaller orders individually into one
of the Workstations or directly into
CBOEdirect. Because CBOEdirect
cannot link separate orders, if the broker
does not first enter the entire order
quantity into one of the Workstations
before sending the smaller individual
orders to CBOEdirect, there is no way
for the Exchange to know that all of
these smaller orders were part of a Large
Customer Order that should qualify for
the Discount. The broker can notify the
Exchange of this occurrence, and must
send documentation, but sometimes the
broker fails to do so. When this
happens, the customer may not end up
getting the Discount. Even when the
broker does notify the Exchange that all
the small trades were part of a Large
Customer Order, if the broker did not
enter the entire order in one System, the
Exchange must manually go back and
review the trade data to verify that all
of the small trades were part of one
Large Customer Order that would
qualify for the Discount.
The Exchange now proposes to
improve this process to direct brokers
on how to ensure that their Large
Customer Orders receive for the
Discount. Brokers are directed to enter
the entirety of a Large Customer Order
that would qualify for the Discount into
one of the Workstations (or CBOEdirect,
if the broker is not going to break up the
Large Customer Order into smaller
orders) so that the entire order quantity
may be tied to a single order ID. This
will allow the Exchange to clearly
identify the total size of the order. For
a Large Customer Order entered into the
CBOEdirect system, merely entering the
Large Customer Order, in its entirety,
into the CBOEdirect system will still be
(and always has been) enough for the
Large Customer Order to receive the
Discount (though this Large Customer
Order will not be able to be broken up
into smaller orders).
For any Large Customer Order entered
via one of said Workstations that gets
broken up into smaller orders prior to
being sent to CBOEdirect, the broker
must still submit a customer large trade
discount request, identifying all
necessary information, including the
PO 00000
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Fmt 4703
Sfmt 4703
63681
order ID and related trade details,
within three days of the transaction.
This is necessary because the Exchange
only automatically receives order
information from CBOEdirect (which we
have already explained cannot link the
separate smaller orders), so the
Exchange needs this information to
verify that the smaller orders were part
of a Large Customer Order. For the same
reason, the Exchange is changing
qualification for the Discount to be
based on the trade date and order ID on
each order (which can be entered into
one of the Workstations), as opposed to
trade records (which are only produced
by CBOEdirect and therefore would not
demonstrate that separate smaller orders
may be part of a Large Customer Order).
Further, for Large Customer Orders sent
to the Exchange from a Workstation
other than a Floor Broker Workstation or
PULSe Workstation (i.e., a Workstation
that is not operated through the
Exchange) to qualify for the Discount,
the Exchange must be granted access to
effectively audit such front end system.
This is necessary to ensure that such
smaller orders sent to the Exchange are
indeed part of a Large Customer Order.
The proposed rule change would clear
up any confusion regarding the entry
and verification of Large Customer
Orders and thereby make it easier for
brokers to ensure that their Large
Customer Orders Qualify for the
Discount.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act 4
in general, and furthers the objectives of
Section 6(b)(5) 5 of the Act in particular,
in that it is designed to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. By establishing a clear
process for the entry of Large Customer
Orders in order for them to qualify for
the Discount, the proposed rule change
eliminates confusion, thereby removing
an impediment to and perfecting the
mechanism of a free and open market
system. The establishment of this
process will also make it easier for
CBOE to administer the Discount and
ensure that it is appropriately assessed
when it is applicable.
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
4 15
5 15
E:\FR\FM\13OCN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
13OCN1
63682
Federal Register / Vol. 76, No. 198 / Thursday, October 13, 2011 / Notices
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 6 and
subparagraph (f)(2) of Rule 19b–4 7
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:
sroberts on DSK5SPTVN1PROD 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–CBOE–2011–093 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–2011–093. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro/shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of such filing
will also 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–
2011–093 and should be submitted on
or before November 3, 2011.
to Section 19(b)(3)(A)(iii) 3 of the
Exchange Act, and Rule 19b–4(f)(3)
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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Elizabeth M. Murphy,
Secretary.
In its filing with the Commission, the
MSRB included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. The Board has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
[FR Doc. 2011–26378 Filed 10–12–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65495; File No. SR–MSRB–
2011–18]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Notice of Filing and Immediate
Effectiveness of Amended and
Restated Articles of Incorporation of
Municipal Securities Rulemaking
Board
October 6, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that
on September 30, 2011, the Municipal
Securities Rulemaking Board (‘‘Board’’
or ‘‘MSRB’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the MSRB. The MSRB has
filed the proposed rule change pursuant
7 17
VerDate Mar<15>2010
16:50 Oct 12, 2011
Jkt 226001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On September 28, 2011 the
Commission approved a proposed rule
change consisting of amendments to
MSRB Rule A–3, on membership on the
Board.5 The amendments to A–3
established a permanent Board structure
of 21 Board members divided into three
classes, each class composed of seven
members that will serve three-year
terms. In addition, amended Rule A–
3(h) sets forth a two-year transitional
period, commencing October 1, 2012
and ending on September 30, 2014.
During this transitional period, two
Board Directors who commenced their
terms in 2009 and two Board Directors
who commenced their terms in 2010
shall serve four-year terms, in order to
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(3).
5 See Release No. 34–65424, File No. SR–MSRB–
2011–11 (September 28, 2011).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
The MSRB has filed with the SEC a
proposed rule change consisting of an
Amended and Restated Articles of
Incorporation.
The text of the proposed rule change
is available on the MSRB’s Web site at
https://www.msrb.org/Rules-andInterpretations/SEC–Filings/2011–
Filings.aspx, at the MSRB’s principal
office, and at the Commission’s Public
Reference Room.
3 15
8 17
6 15
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
PO 00000
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Fmt 4703
4 17
Sfmt 4703
E:\FR\FM\13OCN1.SGM
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]]>Agencies
[Federal Register Volume 76, Number 198 (Thursday, October 13, 2011)]
[Notices]
[Pages 63680-63682]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-26378]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65491; File No. SR-CBOE-2011-093]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend the Customer Large Trade Discount
October 6, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the
[[Page 63681]]
``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 3, 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 proposes to amend the Fees Schedule regarding the
Customer Large Trade Discount. 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 proposes to clarify the process for the qualification
of a customer order for the Discount.\3\ The Discount is intended to
cap fees on large customer trades (the quantity of contracts necessary
for a large customer trade to qualify for the Discount varies by
product).
---------------------------------------------------------------------------
\3\ See Exchange Fees Schedule, Section 18.
---------------------------------------------------------------------------
The Floor Broker Workstations and PULSe Workstations, as well as
any other front end system used to transmit orders to the Exchange
(together, the ``Workstations'') are order repositories into which
orders can be entered prior to being sent to CBOEdirect, which is a
trade engine through which orders are processed. Sometimes a broker
will receive a customer order large enough to qualify for the Discount
(a ``Large Customer Order'') and have to break up the order into a
number of smaller orders to trade throughout the day due to lack of
available volume when the order originally comes in. When this occurs,
the broker sometimes may not first enter the entire order quantity into
one of the Workstations (thereby giving the various smaller orders the
same order ID), instead breaking up the Large Customer Order himself
and entering the smaller orders individually into one of the
Workstations or directly into CBOEdirect. Because CBOEdirect cannot
link separate orders, if the broker does not first enter the entire
order quantity into one of the Workstations before sending the smaller
individual orders to CBOEdirect, there is no way for the Exchange to
know that all of these smaller orders were part of a Large Customer
Order that should qualify for the Discount. The broker can notify the
Exchange of this occurrence, and must send documentation, but sometimes
the broker fails to do so. When this happens, the customer may not end
up getting the Discount. Even when the broker does notify the Exchange
that all the small trades were part of a Large Customer Order, if the
broker did not enter the entire order in one System, the Exchange must
manually go back and review the trade data to verify that all of the
small trades were part of one Large Customer Order that would qualify
for the Discount.
The Exchange now proposes to improve this process to direct brokers
on how to ensure that their Large Customer Orders receive for the
Discount. Brokers are directed to enter the entirety of a Large
Customer Order that would qualify for the Discount into one of the
Workstations (or CBOEdirect, if the broker is not going to break up the
Large Customer Order into smaller orders) so that the entire order
quantity may be tied to a single order ID. This will allow the Exchange
to clearly identify the total size of the order. For a Large Customer
Order entered into the CBOEdirect system, merely entering the Large
Customer Order, in its entirety, into the CBOEdirect system will still
be (and always has been) enough for the Large Customer Order to receive
the Discount (though this Large Customer Order will not be able to be
broken up into smaller orders).
For any Large Customer Order entered via one of said Workstations
that gets broken up into smaller orders prior to being sent to
CBOEdirect, the broker must still submit a customer large trade
discount request, identifying all necessary information, including the
order ID and related trade details, within three days of the
transaction. This is necessary because the Exchange only automatically
receives order information from CBOEdirect (which we have already
explained cannot link the separate smaller orders), so the Exchange
needs this information to verify that the smaller orders were part of a
Large Customer Order. For the same reason, the Exchange is changing
qualification for the Discount to be based on the trade date and order
ID on each order (which can be entered into one of the Workstations),
as opposed to trade records (which are only produced by CBOEdirect and
therefore would not demonstrate that separate smaller orders may be
part of a Large Customer Order). Further, for Large Customer Orders
sent to the Exchange from a Workstation other than a Floor Broker
Workstation or PULSe Workstation (i.e., a Workstation that is not
operated through the Exchange) to qualify for the Discount, the
Exchange must be granted access to effectively audit such front end
system. This is necessary to ensure that such smaller orders sent to
the Exchange are indeed part of a Large Customer Order.
The proposed rule change would clear up any confusion regarding the
entry and verification of Large Customer Orders and thereby make it
easier for brokers to ensure that their Large Customer Orders Qualify
for the Discount.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
\4\ in general, and furthers the objectives of Section 6(b)(5) \5\ of
the Act in particular, in that it is designed to remove impediments to
and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest. By establishing a clear process for the entry of Large
Customer Orders in order for them to qualify for the Discount, the
proposed rule change eliminates confusion, thereby removing an
impediment to and perfecting the mechanism of a free and open market
system. The establishment of this process will also make it easier for
CBOE to administer the Discount and ensure that it is appropriately
assessed when it is applicable.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
[[Page 63682]]
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 \6\ and subparagraph (f)(2) of Rule 19b-4 \7\ 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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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 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-2011-093 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-2011-093. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro/shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing will also 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-2011-093 and should be
submitted on or before November 3, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-26378 Filed 10-12-11; 8:45 am]
BILLING CODE 8011-01-P
