Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Fees Schedule, 63971-63973 [2011-26530]

Download as PDF Federal Register / Vol. 76, No. 199 / Friday, October 14, 2011 / Notices 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: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–BX–2011–066 on the subject line. 2011–066 and should be submitted on or before November 4, 2011. of the most significant parts of such statements. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Elizabeth M. Murphy, Secretary. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change [FR Doc. 2011–26528 Filed 10–13–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65518; File No. SR–CBOE– 2011–096] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Fees Schedule October 7, 2011. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the • Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2 to Elizabeth M. Murphy, Secretary, notice is hereby given that on October Securities and Exchange Commission, 3, 2011, the Chicago Board Options 100 F Street, NE., Washington, DC Exchange, Incorporated (the ‘‘Exchange’’ 20549–1090. or ‘‘CBOE’’) filed with the Securities and Exchange Commission (the All submissions should refer to File ‘‘Commission’’) the proposed rule Number SR–BX–2011–066. This file change as described in Items I, II, and number should be included on the subject line if e-mail is used. To help the III below, which Items have been prepared by the Exchange. The Commission process and review your Commission is publishing this notice to comments more efficiently, please use only one method. The Commission will solicit comments on the proposed rule post all comments on the Commission’s change from interested persons. Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s rules/sro.shtml). Copies of the Statement of the Terms of the Substance submission, all subsequent of the Proposed Rule Change amendments, all written statements The Exchange proposes to amend its with respect to the proposed rule Fees Schedule. The text of the proposed change that are filed with the rule change is available on the Commission, and all written Exchange’s Web site (http:// communications relating to the www.cboe.org/legal), at the Exchange’s proposed rule change between the Commission and any person, other than Office of the Secretary, and at the Commission. those that may be withheld from the public in accordance with the II. Self-Regulatory Organization’s provisions of 5 U.S.C. 552, will be Statement of the Purpose of, and available for Web site viewing and Statutory Basis for, the Proposed Rule printing in the Commission’s Public Change Reference Room, 100 F Street, NE., In its filing with the Commission, the Washington, DC 20549, on official self-regulatory organization included business days between the hours of statements concerning the purpose of 10 a.m. and 3 p.m. Copies of the filing and basis for the proposed rule change also will be available for inspection and and discussed any comments it received copying at the principal office of the on the proposed rule change. The text Exchange. All comments received will of those statements may be examined at be posted without change; the the places specified in Item IV below. Commission does not edit personal The Exchange has prepared summaries, identifying information from set forth in sections A, B, and C below, submissions. You should submit only information that you wish to make 15 17 CFR 200.30–3(a)(12). available publicly. All submissions 1 15 U.S.C. 78s(b)(1). should refer to File Number SR–BX– 2 17 CFR 240.19b–4. tkelley on DSK3SPTVN1PROD with NOTICES Paper Comments VerDate Mar<15>2010 15:20 Oct 13, 2011 Jkt 226001 63971 PO 00000 Frm 00071 Fmt 4703 Sfmt 4703 1. Purpose The Exchange currently waives the $.18 per contract transaction fee for public customer (‘‘C’’ origin code) orders in options on Standard & Poor’s Depositary Receipts (‘‘SPY options’’) that are executed in open outcry or in the Automated Improvement Mechanism (‘‘AIM’’) 3. This fee waiver is due to expire on September 30, 2011. The Exchange proposes to extend the fee waiver through December 31, 2011.4 The Exchange also proposes to extend the fee waiver to options on the Financial Select Sector SPDR Fund (‘‘XLF options’’),5 which is currently traded on the Exchange. The proposed fee waiver is intended to attract more customer volume on the Exchange in these products. For competitive reasons, the customer base for open outcry and AIM trading in SPY and XLF options appears more sensitive to fees than the customer base for such trading in other exchange-traded funds (‘‘ETFs’’). The Exchange believes that waiving the transaction fee for such customer trades in SPY and XLF options will encourage greater customer trading in these products. The increased volume and liquidity resulting from greater customer trading in SPY and XLF options will benefit all market participants trading in these products. The Exchange would also like to encourage use of open 3 See Securities Exchange Act Release No. 34– 62902 (September 14, 2010), 75 FR 57313 (September 20, 2010), Securities Exchange Act Release No. 34–63422 (December 3, 2010), 75 FR 76770 (December 9, 2010), Securities Exchange Act Release No. 34–64197 (April 6, 2011), 76 FR 20390 (April 12, 2011), Securities Exchange Act Release No. 34–64817 (July 6, 2011), 76 FR 40948 (July 12, 2011) and CBOE Fees Schedule, footnote 8. AIM is an electronic auction system that exposes certain orders electronically in an auction to provide such orders with the opportunity to receive an execution at an improved price. AIM is governed by CBOE Rule 6.74A. 4 The Exchange notes that transaction fees are also currently waived for customer orders of 99 contracts or less in ETF (including SPY and XLF options), ETN and HOLDRs options. See CBOE Fees Schedule, footnote 9. 5 XLF seeks to provide investment results that correspond to the price and yield performance of the Financial Select Sector of the S&P 500 Index (the ‘‘Index’’). The Index includes companies from industries, such as diversified financial services, insurance, commercial banks, capital markets, real estate investment trusts, consumer finance, thrifts and mortgage finance, and real estate management and development. XLF utilizes a passive or indexing investment approach to attempt to approximate the investment performance of the Index. E:\FR\FM\14OCN1.SGM 14OCN1 63972 Federal Register / Vol. 76, No. 199 / Friday, October 14, 2011 / Notices tkelley on DSK3SPTVN1PROD with NOTICES outcry and AIM, which is a price improvement mechanism. In drafting this filing, it became clear that having a separate section on the Fees Schedule for transaction fees for QQQQ and SPY options is unnecessary. Aside from the $0.00 fee for customer transactions in QQQQ, all other fees on QQQQ and SPY options are the same amounts as the fees for other ETFs (QQQQ and SPY are both ETFs). As such, the Exchange proposes to eliminate the separate section for transaction fees for QQQQ and SPY options, and simply add a line regarding the $0.00 fee for customer transactions in QQQQ to the section of the Fees Schedule that lists transaction fees for all other ETFs. This change will make the Fees Schedule easier for investors and market participants to read, thereby eliminating any potential confusion. electronically executed broker-dealer orders ($.45 per contract).8 Other exchange fee schedules also distinguish between electronically and nonelectronically executed orders.9 The Exchange believes that the elimination of the separate section of the Fees Schedule listing transaction fees in QQQQ and SPY options and the subsequent addition of a single line listing the fee for customer transactions in QQQQ options as $0.00 furthers the objectives of Section 6(b)(5) 10 of the Act in particular in that it is designed to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest, by making the Fees Schedule easier to read, thereby eliminating any potential investor confusion. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with Section 6(b) of the Act 6, in general, and furthers the objectives of Section 6(b)(4) 7 of the Act in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among CBOE Trading Permit Holders and other persons using its facilities. The Exchange believes the proposed extension of the fee waiver for open outcry and AIM trades in SPY options through December 31, 2011 and to XLF options is equitable and not unfairly discriminatory because the fee waiver would apply uniformly to all public customers trading SPY and XLF options in open outcry and AIM, and because the fee waiver is designed to attract new order flow to the Exchange. The Exchange believes that waiving the transaction fee for such customer trades in SPY and XLF options will encourage greater customer trading in these products. The increased volume and liquidity resulting from greater customer trading in SPY and XLF options will benefit all market participants trading in these products. The Exchange believes the proposed extension of the fee waiver is reasonable because it would continue to provide cost savings during the extended waiver period for public customers trading SPY options and begin to provide such savings to public customers trading XLF options. Further, the Exchange believes the proposed fee waiver is consistent with other fees assessed by the Exchange. Specifically, the Exchange assesses manually executed broker-dealer orders a different rate ($.25 per contract) as compared to 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. 6 15 7 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). VerDate Mar<15>2010 15:20 Oct 13, 2011 Jkt 226001 C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change is designated by the Exchange as establishing or changing a due, fee, or other charge, thereby qualifying for effectiveness on filing pursuant to Section 19(b)(3)(A) of the Act 11 and subparagraph (f)(2) of Rule 19b–4 12 thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may 8 See CBOE Fees Schedule, Section 1. OMX PHLX, Inc. categorizes its equity options transaction fees for Specialists, ROTs, SQTs, RSQTs and Broker-Dealers as either electronic or non-electronic. See NASDAQ OMX PHLX Fees Schedule, Equity Options Fees. NYSE Amex, Inc. categorizes its options transaction fees for Non-NYSE Amex Options Market Makers, Broker-Dealers, Professional Customers, Non BD Customers and Firms as either electronic or manual. See NYSE Amex Options Fees Schedule, Trade Related Charges. NYSE Arca, Inc. categorizes its options transaction fees for Customers, Firms and Broker-Dealers as either electronic or manual. See NYSE Arca Options Fees Schedule, Trade Related Charges. 10 15 U.S.C. 78f(b)(5). 11 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 240.19b–4(f)(2). 9 NASDAQ PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–CBOE–2011–096 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–2011–096. 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 (http://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–CBOE–2011–096, and should be submitted on or before November 4, 2011. E:\FR\FM\14OCN1.SGM 14OCN1 Federal Register / Vol. 76, No. 199 / Friday, October 14, 2011 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Elizabeth M. Murphy, Secretary. [FR Doc. 2011–26530 Filed 10–13–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65521; File No. SR–C2– 2011–029] Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Insert the Specific Conclusion Date of a Newly Approved Pilot Program October 7, 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 October 4, 2011, C2 Options Exchange, Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b–4(f)(6) thereunder.4 The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. tkelley on DSK3SPTVN1PROD with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to make a technical amendment to its rules to insert the specific conclusion date for a pilot program that permits the trading of P.M.-settled S&P 500 Index options with third-Friday-of-the-month expiration dates. The text of the proposed rule change is available on the Exchange’s Web site (http://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 13 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b–4(f)(6). 1 15 VerDate Mar<15>2010 15:20 Oct 13, 2011 Jkt 226001 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose On September 2, 2011, the Commission approved C2’s proposal for a 14-month pilot program that permits the trading on C2 of P.M.-settled S&P 500 Index options with third-Friday-ofthe-month expiration dates (the ‘‘Pilot Program’’).5 The purpose of this rule change is solely to amend the rule text to insert the specific conclusion date of the Pilot Program, which is November 2, 2012.6 2. Statutory Basis The basis under the Act for this proposed rule change is the requirement under Section 6(b)(5) 7 that an exchange have rules that are designed to promote just and equitable principles of trade, and to remove impediments to and perfect the mechanism for a free and open market and a national market system, and, in general, to protect investors and the public interest. In particular, the proposed rule change seeks to update the text to reflect the actual expiration date of the Pilot Program in a matter that is consistent with the original approval of the Pilot Program. This action will remove any confusion in the C2 Rules regarding the expiration date of the Pilot Program, thereby removing impediments to and perfecting the mechanism for a free and open market and a national market system, and, in general, protecting investors and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition C2 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. 5 See Securities Exchange Act Release No. 65256 (September 2, 2011), 76 FR 55969 (September 9, 2011) (approving SR–C2–2011–008). 6 Previously the rule text indicated that the Exchange would insert the date 14 months from approval, which approval occurred on September 2, 2011. Id. 7 15 U.S.C. 78f(b)(5). PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 63973 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 Because the foregoing rule does not (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, provided that the selfregulatory organization has given the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change or such shorter time as designated by the Commission, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 8 and Rule 19b–4(f)(6) thereunder.9 At any time within 60 days of the filing of such 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rule-comments@ sec.gov. Please include File Number SR– C2–2011–029 on the subject line. 8 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange’s intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 9 17 E:\FR\FM\14OCN1.SGM 14OCN1

Agencies

[Federal Register Volume 76, Number 199 (Friday, October 14, 2011)]
[Notices]
[Pages 63971-63973]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-26530]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65518; File No. SR-CBOE-2011-096]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Amend the Fees Schedule

October 7, 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 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 the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend its Fees Schedule. The text of the 
proposed rule change is available on the Exchange's Web site (http://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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange currently waives the $.18 per contract transaction fee 
for public customer (``C'' origin code) orders in options on Standard & 
Poor's Depositary Receipts (``SPY options'') that are executed in open 
outcry or in the Automated Improvement Mechanism (``AIM'') \3\. This 
fee waiver is due to expire on September 30, 2011. The Exchange 
proposes to extend the fee waiver through December 31, 2011.\4\ The 
Exchange also proposes to extend the fee waiver to options on the 
Financial Select Sector SPDR Fund (``XLF options''),\5\ which is 
currently traded on the Exchange. The proposed fee waiver is intended 
to attract more customer volume on the Exchange in these products. For 
competitive reasons, the customer base for open outcry and AIM trading 
in SPY and XLF options appears more sensitive to fees than the customer 
base for such trading in other exchange-traded funds (``ETFs''). The 
Exchange believes that waiving the transaction fee for such customer 
trades in SPY and XLF options will encourage greater customer trading 
in these products. The increased volume and liquidity resulting from 
greater customer trading in SPY and XLF options will benefit all market 
participants trading in these products. The Exchange would also like to 
encourage use of open

[[Page 63972]]

outcry and AIM, which is a price improvement mechanism.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 34-62902 (September 
14, 2010), 75 FR 57313 (September 20, 2010), Securities Exchange Act 
Release No. 34-63422 (December 3, 2010), 75 FR 76770 (December 9, 
2010), Securities Exchange Act Release No. 34-64197 (April 6, 2011), 
76 FR 20390 (April 12, 2011), Securities Exchange Act Release No. 
34-64817 (July 6, 2011), 76 FR 40948 (July 12, 2011) and CBOE Fees 
Schedule, footnote 8. AIM is an electronic auction system that 
exposes certain orders electronically in an auction to provide such 
orders with the opportunity to receive an execution at an improved 
price. AIM is governed by CBOE Rule 6.74A.
    \4\ The Exchange notes that transaction fees are also currently 
waived for customer orders of 99 contracts or less in ETF (including 
SPY and XLF options), ETN and HOLDRs options. See CBOE Fees 
Schedule, footnote 9.
    \5\ XLF seeks to provide investment results that correspond to 
the price and yield performance of the Financial Select Sector of 
the S&P 500 Index (the ``Index''). The Index includes companies from 
industries, such as diversified financial services, insurance, 
commercial banks, capital markets, real estate investment trusts, 
consumer finance, thrifts and mortgage finance, and real estate 
management and development. XLF utilizes a passive or indexing 
investment approach to attempt to approximate the investment 
performance of the Index.
---------------------------------------------------------------------------

    In drafting this filing, it became clear that having a separate 
section on the Fees Schedule for transaction fees for QQQQ and SPY 
options is unnecessary. Aside from the $0.00 fee for customer 
transactions in QQQQ, all other fees on QQQQ and SPY options are the 
same amounts as the fees for other ETFs (QQQQ and SPY are both ETFs). 
As such, the Exchange proposes to eliminate the separate section for 
transaction fees for QQQQ and SPY options, and simply add a line 
regarding the $0.00 fee for customer transactions in QQQQ to the 
section of the Fees Schedule that lists transaction fees for all other 
ETFs. This change will make the Fees Schedule easier for investors and 
market participants to read, thereby eliminating any potential 
confusion.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Act \6\, in general, and furthers the objectives of 
Section 6(b)(4) \7\ of the Act in particular, in that it is designed to 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among CBOE Trading Permit Holders and other persons using 
its facilities. The Exchange believes the proposed extension of the fee 
waiver for open outcry and AIM trades in SPY options through December 
31, 2011 and to XLF options is equitable and not unfairly 
discriminatory because the fee waiver would apply uniformly to all 
public customers trading SPY and XLF options in open outcry and AIM, 
and because the fee waiver is designed to attract new order flow to the 
Exchange. The Exchange believes that waiving the transaction fee for 
such customer trades in SPY and XLF options will encourage greater 
customer trading in these products. The increased volume and liquidity 
resulting from greater customer trading in SPY and XLF options will 
benefit all market participants trading in these products. The Exchange 
believes the proposed extension of the fee waiver is reasonable because 
it would continue to provide cost savings during the extended waiver 
period for public customers trading SPY options and begin to provide 
such savings to public customers trading XLF options. Further, the 
Exchange believes the proposed fee waiver is consistent with other fees 
assessed by the Exchange. Specifically, the Exchange assesses manually 
executed broker-dealer orders a different rate ($.25 per contract) as 
compared to electronically executed broker-dealer orders ($.45 per 
contract).\8\ Other exchange fee schedules also distinguish between 
electronically and non-electronically executed orders.\9\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
    \8\ See CBOE Fees Schedule, Section 1.
    \9\ NASDAQ OMX PHLX, Inc. categorizes its equity options 
transaction fees for Specialists, ROTs, SQTs, RSQTs and Broker-
Dealers as either electronic or non-electronic. See NASDAQ OMX PHLX 
Fees Schedule, Equity Options Fees. NYSE Amex, Inc. categorizes its 
options transaction fees for Non-NYSE Amex Options Market Makers, 
Broker-Dealers, Professional Customers, Non BD Customers and Firms 
as either electronic or manual. See NYSE Amex Options Fees Schedule, 
Trade Related Charges. NYSE Arca, Inc. categorizes its options 
transaction fees for Customers, Firms and Broker-Dealers as either 
electronic or manual. See NYSE Arca Options Fees Schedule, Trade 
Related Charges.
---------------------------------------------------------------------------

    The Exchange believes that the elimination of the separate section 
of the Fees Schedule listing transaction fees in QQQQ and SPY options 
and the subsequent addition of a single line listing the fee for 
customer transactions in QQQQ options as $0.00 furthers the objectives 
of Section 6(b)(5) \10\ 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 making the Fees Schedule easier 
to read, thereby eliminating any potential investor confusion.
---------------------------------------------------------------------------

    \10\ 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 appropriate in furtherance of 
the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change is designated by the Exchange as 
establishing or changing a due, fee, or other charge, thereby 
qualifying for effectiveness on filing pursuant to Section 19(b)(3)(A) 
of the Act \11\ and subparagraph (f)(2) of Rule 19b-4 \12\ thereunder. 
At any time within 60 days of the filing of the proposed rule change, 
the Commission summarily may temporarily suspend such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-CBOE-2011-096 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-2011-096. 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 (http://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-CBOE-2011-096, and should be submitted on or before 
November 4, 2011.


[[Page 63973]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-26530 Filed 10-13-11; 8:45 am]
BILLING CODE 8011-01-P