Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Fees Schedule, 63974-63976 [2011-26533]
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63974
Federal Register / Vol. 76, No. 199 / Friday, October 14, 2011 / Notices
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–C2–2011–029. 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
also will be available for inspection and
copying at the principal office of the C2.
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–C2–2011–029 and should
be submitted on or before November 4,
2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–26534 Filed 10–13–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65519; File No. SR–CBOE–
2011–094]
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.
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 (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.
tkelley on DSK3SPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
Fees Schedule related to monthly
facility fees and CBOEdirect
connectivity charges.
1 15
10 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
15:20 Oct 13, 2011
2 17
Jkt 226001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00074
Fmt 4703
The Exchange proposes to amend
CBOEdirect connectivity charges to
clarify that charges assessed for access
to a Network Access Port are per
gigabyte, for both regular access and
Sponsored Users. Currently, access to
such Network Access Ports is only
available in one-gigabyte increments.
However, in the future, the Exchange
may offer faster access at a higher
gigabyte level, and may elect to charge
a higher rate for such access (as the
infrastructure and equipment involved
would be costlier). To the extent the
Exchange does offer faster access at a
higher gigabyte level, and assesses a
higher rate, the Exchange will submit a
rule filing prior to doing so. The
Exchange therefore proposes to clarify
that the current rates assessed are for
one-gigabyte access.
The Exchange also proposes to
increase the fees charged for such access
to a Network Access Port $250 per
month for regular access and $500 per
month for Sponsored User access. The
Exchange recently made a sizable
investment to upgrade the equipment
involved in the Network Access Port,
and thereby proposes to increase the
fees in order to recoup such costs and
maintain such equipment in the future.
The Exchange currently charges a
different rate for regular access and
Sponsored User access, and merely
proposes to increase the rates in equal
proportion. Moreover, this change in
Network Access Port fees is in line with
the amounts assessed for similar access
at other exchanges. The International
Securities Exchange, Inc. (‘‘ISE’’)
assesses a fee of $500 for network access
up to and including 1 gigabyte.3
The Exchange also proposes to amend
the Fees Schedule related to CBOEdirect
connectivity charges to assess a fee for
each CMI Login ID. Firms may access
CBOEdirect via either a CMI Client
Application Server or a FIX Port,
depending on how their systems are
configured. Currently, the Exchange
assesses a fee for each CMI Client
Application Server. However, a firm
may have many users, using different
Login IDs, accessing the same CMI
Client Application Server, allowing the
firm to only pay the monthly fee once.
Alternatively, a firm may use the same
Login ID to access different CMI Client
Application Servers, thereby paying
multiple times for the same Login ID. At
the same time, FIX Ports are shared, and
firms pay the monthly fee for access to
FIX Ports on a per Login ID basis
(though this is not currently clear on the
Fees Schedule). As such, those firms
who have many Login IDs but are
3 See
Sfmt 4703
E:\FR\FM\14OCN1.SGM
ISE Schedule of Fees, page 9.
14OCN1
Federal Register / Vol. 76, No. 199 / Friday, October 14, 2011 / Notices
tkelley on DSK3SPTVN1PROD with NOTICES
accessing the same CMI Client
Application Server are avoiding paying
a fee for each Login ID. The Exchange
proposes to rectify this issue by
charging for each CMI Login ID, and to
clarify that access via a FIX Port is also
per Login ID. The amounts of the rates
are the same, so there would be no
preference for firms using either access
point. This change, too, would allow the
Exchange to recoup some of the costs
related to the investment in upgrading
the connectivity equipment, as well as
maintain this new equipment in the
future.
The Exchange also proposes to
increase co-location fees to $50 per
month per ‘‘U’’, or $100 per month per
‘‘U’’ for Sponsored Users (the term ‘‘U’’
is used to indicate an equipment unit
1.75’’ high with a maximum power of
125 watts per U space). The Exchange
recently upgraded this equipment as
well, and the increased co-location fees
would allow the Exchange to recoup
some of the costs associated with this
investment and maintain this upgraded
equipment in the future. The amount of
these fees is still lower than those
assessed on a number of other
exchanges. For example, NASDAQ
OMX PHLX LLC (‘‘Phlx’’) charges a fee
of $150 per U.4
Finally, the Exchange proposes to add
the CBOE Trading Floor Terminal fee to
the Fees Schedule. The Exchange
provides a physical computer terminal
for brokers to access the CBOE trading
systems. The purpose of the $250 per
month fee for use of the terminals is to
recoup the costs associated with
purchasing and maintaining the
terminals.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act 5
in general, and furthers the objectives of
Section 6(b)(4) 6 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 proposed change to increase colocation fees is reasonable because the
new fees are still lower than those
assessed on other exchanges 7 and is
equitable and not unfairly
discriminatory because the fees, as
before, will be assessed to all market
participants.
The proposed change to increase the
Network Access Port fees and clarify
Phlx Fee Schedule, Section 6.
U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(4).
7 See Note 4.
that such fees are for 1 gigabyte access
is reasonable because the fees are within
the same range as those assessed on
other exchanges.8 This proposed change
is equitable and not unfairly
discriminatory because the fees, as
before, will be assessed to all market
participants.
The proposed change to assess CMI
CBOEdirect connectivity charges based
on Login ID, as opposed to Client
Application Server, is reasonable
because the fees for such connectivity,
on a per Login ID basis, will be the same
as those for FIX connectivity, and is
equitable and not unfairly
discriminatory because market
participants desiring connectivity will
now be paying the same amount for a
connection via either FIX or CMI.
Assessing higher fees for Sponsored
Users is equitable and not unfairly
discriminatory because Sponsored Users
are able to access the Exchange and use
the equipment provided without
purchasing a trading permit. As such,
Trading Permit Holders who have
purchased a trading permit will have a
higher level of commitment to
transacting business on the Exchange
and using Exchange facilities than
Sponsored Users.
The proposed change to add the
CBOE Trading Floor Terminal fee to the
Fees Schedule is reasonable because the
amount is within the range of other fees
assessed for trading floor terminal
rental 9 and is equitable and not unfairly
discriminatory because the fee will be
assessed to all market participants.
Finally, the proposed change to
clarify that the Exchange fees for FIX
connectivity are assessed on a per Login
ID basis 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 eliminating any
confusion regarding the basis on which
such fees are assessed.
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.
4 See
5 15
VerDate Mar<15>2010
15:20 Oct 13, 2011
Jkt 226001
Note 3.
Exchange Fees Schedule, Section 8(F)(10).
10 15 U.S.C. 78f(b)(5).
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.
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–2011–094 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–2011–094. 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
8 See
9 See
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
63975
11 15
12 17
E:\FR\FM\14OCN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
14OCN1
63976
Federal Register / Vol. 76, No. 199 / Friday, October 14, 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 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–2011–094, and
should be submitted on or before
November 4, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–26533 Filed 10–13–11; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–65517; File No. SR–CBOE–
2011–097]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the Fees
Schedule
tkelley on DSK3SPTVN1PROD with NOTICES
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.
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
15:20 Oct 13, 2011
The Exchange proposes to amend the
Fees Schedule regarding the Marketing
Fee. 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
VerDate Mar<15>2010
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
Jkt 226001
CBOE proposes to amend its
Marketing Fee Program to extend for an
additional three months a pilot program
it implemented on December 1, 2010,3
and extended on April 1, 2011 4 and
July 1, 2011 5 relating to the assessment
of the marketing fee in the SPY option
class. Specifically, CBOE previously
determined not to assess the marketing
fee on electronic transactions in SPY
options, except that it would continue
to assess the marketing fee on electronic
transactions resulting from its
Automated Improvement Mechanism
(‘‘AIM’’) pursuant to CBOE Rule 6.74A
and transactions in open outcry (the
‘‘Waiver’’). This pilot program is
scheduled to terminate on September
30, 2011, and CBOE now proposes to
extend it until December 31, 2011.
As CBOE stated in its rule filing
establishing this three month pilot
program, this proposed change is
intended to attract more customer
volume to the Exchange in the SPY
option class and to allow CBOE market3 See Securities Exchange Act Release No. 63470
(December 8, 2010), 75 FR 78284 (December 15,
2010) (SR–CBOE–2010–108).
4 See Securities Exchange Act Release No. 64212
(April 6, 2011), 76 FR 20411 (April 12, 2011) (SR–
CBOE–2011–033).
5 See Securities Exchange Act Release No. 64818
(July 6, 2011), 76 FR 40978 (July 12, 2011) (SR–
CBOE–2011–060).
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
makers to better compete for order flow.
CBOE noted that the SPY option class
is unique in the manner in which it
trades and is one of the most active
option classes. CBOE also noted that
DPMs and Preferred Market-Makers can
utilize the marketing fee funds to attract
orders from payment accepting firms
that are executed in AIM and in open
outcry. Finally, CBOE noted that it
believes that the marketing fee funds
received by payment accepting firms
may be used to offset transaction and
other costs related to the execution of an
order in AIM and in open outcry,
including in the SPY option class. CBOE
believes that the current demographics
of electronic SPY option order flow is
more driven by the displayed best bid
or offer (‘‘BBO’’) and size than payment
for order flow considerations, and thus
assessment of the marketing fee for
those transactions is not a differentiator
at this time.
For the reasons noted above, CBOE
believes that it would make sense to
extend the pilot program until
December 31, 2011. CBOE believes that
it is beneficial to continue to assess the
fee on the limited bases as proposed and
will continue to enable CBOE to
compete for order flow in the SPY
option class. However, because the SPY
option class is unique in the manner in
which it trades and is one of the most
active option classes, CBOE would like
to continue to evaluate for an additional
three months the effect of not assessing
the fee on all electronic transactions in
the SPY option class, except for
transactions resulting from AIM and in
open outcry.
The Exchange also proposes to amend
its Fees Schedule to remove the security
EEM from a list of options on whom the
marketing fee to be collected is $0.00.
EEM is the acronym for the exchangetraded fund (‘‘ETF’’) iShares MSCI
Emerging Markets Index Fund. The
Exchange wishes to remove EEM from
the abovementioned list. Hereafter, the
marketing fee for EEM transactions
would be $0.25 per contract, as it is
with nearly all other ETFs. The purpose
of this change is to increase volume on
EEM options. By assessing a marketing
fee on EEM transactions, the Exchange
will be able to use the money collected
to attract volume, pursuant to the
Exchange’s marketing fee plan. The
Exchange believes that the
demographics of EEM options order
flow is inclined to seek economic
considerations such as payment for
order flow, so a marketing fee for EEM
trades is necessary to attract EEM
volume and liquidity.
E:\FR\FM\14OCN1.SGM
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]]>Agencies
[Federal Register Volume 76, Number 199 (Friday, October 14, 2011)]
[Notices]
[Pages 63974-63976]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-26533]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65519; File No. SR-CBOE-2011-094]
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 (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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Fees Schedule related to monthly
facility fees and CBOEdirect connectivity charges.
The Exchange proposes to amend CBOEdirect connectivity charges to
clarify that charges assessed for access to a Network Access Port are
per gigabyte, for both regular access and Sponsored Users. Currently,
access to such Network Access Ports is only available in one-gigabyte
increments. However, in the future, the Exchange may offer faster
access at a higher gigabyte level, and may elect to charge a higher
rate for such access (as the infrastructure and equipment involved
would be costlier). To the extent the Exchange does offer faster access
at a higher gigabyte level, and assesses a higher rate, the Exchange
will submit a rule filing prior to doing so. The Exchange therefore
proposes to clarify that the current rates assessed are for one-
gigabyte access.
The Exchange also proposes to increase the fees charged for such
access to a Network Access Port $250 per month for regular access and
$500 per month for Sponsored User access. The Exchange recently made a
sizable investment to upgrade the equipment involved in the Network
Access Port, and thereby proposes to increase the fees in order to
recoup such costs and maintain such equipment in the future. The
Exchange currently charges a different rate for regular access and
Sponsored User access, and merely proposes to increase the rates in
equal proportion. Moreover, this change in Network Access Port fees is
in line with the amounts assessed for similar access at other
exchanges. The International Securities Exchange, Inc. (``ISE'')
assesses a fee of $500 for network access up to and including 1
gigabyte.\3\
---------------------------------------------------------------------------
\3\ See ISE Schedule of Fees, page 9.
---------------------------------------------------------------------------
The Exchange also proposes to amend the Fees Schedule related to
CBOEdirect connectivity charges to assess a fee for each CMI Login ID.
Firms may access CBOEdirect via either a CMI Client Application Server
or a FIX Port, depending on how their systems are configured.
Currently, the Exchange assesses a fee for each CMI Client Application
Server. However, a firm may have many users, using different Login IDs,
accessing the same CMI Client Application Server, allowing the firm to
only pay the monthly fee once. Alternatively, a firm may use the same
Login ID to access different CMI Client Application Servers, thereby
paying multiple times for the same Login ID. At the same time, FIX
Ports are shared, and firms pay the monthly fee for access to FIX Ports
on a per Login ID basis (though this is not currently clear on the Fees
Schedule). As such, those firms who have many Login IDs but are
[[Page 63975]]
accessing the same CMI Client Application Server are avoiding paying a
fee for each Login ID. The Exchange proposes to rectify this issue by
charging for each CMI Login ID, and to clarify that access via a FIX
Port is also per Login ID. The amounts of the rates are the same, so
there would be no preference for firms using either access point. This
change, too, would allow the Exchange to recoup some of the costs
related to the investment in upgrading the connectivity equipment, as
well as maintain this new equipment in the future.
The Exchange also proposes to increase co-location fees to $50 per
month per ``U'', or $100 per month per ``U'' for Sponsored Users (the
term ``U'' is used to indicate an equipment unit 1.75'' high with a
maximum power of 125 watts per U space). The Exchange recently upgraded
this equipment as well, and the increased co-location fees would allow
the Exchange to recoup some of the costs associated with this
investment and maintain this upgraded equipment in the future. The
amount of these fees is still lower than those assessed on a number of
other exchanges. For example, NASDAQ OMX PHLX LLC (``Phlx'') charges a
fee of $150 per U.\4\
---------------------------------------------------------------------------
\4\ See Phlx Fee Schedule, Section 6.
---------------------------------------------------------------------------
Finally, the Exchange proposes to add the CBOE Trading Floor
Terminal fee to the Fees Schedule. The Exchange provides a physical
computer terminal for brokers to access the CBOE trading systems. The
purpose of the $250 per month fee for use of the terminals is to recoup
the costs associated with purchasing and maintaining the terminals.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
\5\ in general, and furthers the objectives of Section 6(b)(4) \6\ 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The proposed change to increase co-location fees is reasonable
because the new fees are still lower than those assessed on other
exchanges \7\ and is equitable and not unfairly discriminatory because
the fees, as before, will be assessed to all market participants.
---------------------------------------------------------------------------
\7\ See Note 4.
---------------------------------------------------------------------------
The proposed change to increase the Network Access Port fees and
clarify that such fees are for 1 gigabyte access is reasonable because
the fees are within the same range as those assessed on other
exchanges.\8\ This proposed change is equitable and not unfairly
discriminatory because the fees, as before, will be assessed to all
market participants.
---------------------------------------------------------------------------
\8\ See Note 3.
---------------------------------------------------------------------------
The proposed change to assess CMI CBOEdirect connectivity charges
based on Login ID, as opposed to Client Application Server, is
reasonable because the fees for such connectivity, on a per Login ID
basis, will be the same as those for FIX connectivity, and is equitable
and not unfairly discriminatory because market participants desiring
connectivity will now be paying the same amount for a connection via
either FIX or CMI.
Assessing higher fees for Sponsored Users is equitable and not
unfairly discriminatory because Sponsored Users are able to access the
Exchange and use the equipment provided without purchasing a trading
permit. As such, Trading Permit Holders who have purchased a trading
permit will have a higher level of commitment to transacting business
on the Exchange and using Exchange facilities than Sponsored Users.
The proposed change to add the CBOE Trading Floor Terminal fee to
the Fees Schedule is reasonable because the amount is within the range
of other fees assessed for trading floor terminal rental \9\ and is
equitable and not unfairly discriminatory because the fee will be
assessed to all market participants.
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\9\ See Exchange Fees Schedule, Section 8(F)(10).
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Finally, the proposed change to clarify that the Exchange fees for
FIX connectivity are assessed on a per Login ID basis 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 eliminating any confusion
regarding the basis on which such fees are assessed.
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\10\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE does not believe that the proposed rule change will impose any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change is designated by the Exchange as
establishing or changing a due, fee, or other charge, thereby
qualifying for effectiveness on filing pursuant to Section 19(b)(3)(A)
of the Act \11\ and subparagraph (f)(2) of Rule 19b-4 \12\ thereunder.
At any time within 60 days of the filing of the proposed rule change,
the Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-CBOE-2011-094 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-2011-094. 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 63976]]
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-2011-094, and should be submitted on or before November 4, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-26533 Filed 10-13-11; 8:45 am]
BILLING CODE 8011-01-P
