Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule, 47148-47150 [2012-19286]

Download as PDF 47148 Federal Register / Vol. 77, No. 152 / Tuesday, August 7, 2012 / Notices Updating Rules 8.7, 8.51, and 43.14 provides clarity to the Exchange’s rule references. The proposed rule updates (and added end-parentheses) eliminate confusion, 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. Number SR–CBOE–2012–072 on the subject line. SECURITIES AND EXCHANGE COMMISSION Paper Comments [Release No. 34–67557; File No. SR–CBOE– 2012–075] 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 that is not necessary or appropriate in furtherance of the purposes of the Act. All submissions should refer to File Number SR–CBOE–2012–072. This file number should be included on the subject line if email 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 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–CBOE– 2012–072 and should be submitted on or before August 28, 2012. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received from Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: A. Significantly affect the protection of investors or the public interest; B. Impose any significant burden on competition; and C. Become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) 5 of the Act and Rule 19b–4(f)(6) 6 thereunder. At any time within 60 days of the filing of this 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. mstockstill on DSK4VPTVN1PROD with NOTICES 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: • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–19287 Filed 8–6–12; 8:45 am] 6 17 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). VerDate Mar<15>2010 16:52 Aug 06, 2012 August 1, 2012. 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 July 27, 2012, 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 its Fees Schedule. The text of the proposed rule change is available on the Exchange’s Web site (https:// www.cboe.com/AboutCBOE/ CBOELegalRegulatoryHome.aspx), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. 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 Exchange 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 Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change BILLING CODE 8011–01–P Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File 5 15 Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule 1. Purpose The Exchange proposes to amend its Marketing Fee. Currently, the Marketing 1 15 7 17 Jkt 226001 PO 00000 CFR 200.30–3(a)(12). Frm 00121 Fmt 4703 2 17 Sfmt 4703 E:\FR\FM\07AUN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 07AUN1 mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 77, No. 152 / Tuesday, August 7, 2012 / Notices Fee assessed on all Penny Pilot Exchange-Traded Fund (‘‘ETF’’) options is $0.25 per contract, with the exception of DIA, for which the listed Marketing Fee is $0.10 per contract.3 The Exchange hereby proposes to eliminate the exception for DIA, thereby amending the Marketing Fee for DIA to be $0.25 per contract. This change will place DIA on the same footing regarding the Marketing Fee as other ETFs. The Exchange also proposes to change references to options on the PowerShares QQQ Trust. The ticker symbol for PowerShares QQQ Trust was changed from QQQQ to QQQ in 2011, but such changes were not reflected on the CBOE Fees Schedule. In order to accurately reflect the ticker symbol for the PowerShares QQQ Trust, the Exchange hereby proposes to change references on the Fees Schedule to from QQQQ to QQQ. Currently, the marketing fee is not assessed on electronic transactions in SPY and QQQ, except for electronic transactions resulting from the Exchange’s Automated Improvement Mechanism (‘‘AIM’’). Because complex order transactions in SPY and QQQ made via the Exchange’s Complex Order Auction (‘‘COA’’) and Complex Order Book (‘‘COB’’) are electronic and do not result from AIM, such transactions do not incur the Marketing Fee. The Exchange now proposes to assess the Marketing Fee on such transactions (with the exception of complex orders that trade via COB against individual leg markets). By collecting the Marketing Fee on these transactions, the Exchange can then use such funds to attract greater order flow. When a complex order is entered on CBOE, it first generates a COA and, if not filled there, is placed into the COB. In either case, a market participant is aware that it is a complex order and, in electing to trade against it, will know that such transaction will incur the Marketing Fee and take that fact into account in making such an election. However, CBOE’s complex order processing also has the capability to fill a complex order from the posted leg markets. In such an event, the liquidity provider cannot know in advance if a simple or complex order is going to transact against those leg markets and therefore incur the Marketing Fee, and is thus not able to adjust his quoted price accordingly. As such, the Exchange proposes to except electronic complex orders in SPY and QQQ that 3 See CBOE Fees Schedule, Section 2. Exceptions also apply regarding certain types of trades in SPY and QQQ, as discussed elsewhere in this proposal. VerDate Mar<15>2010 16:52 Aug 06, 2012 Jkt 226001 trade against individual leg markets from being assessed the Marketing Fee. Currently, transactions in XSP are assessed a Marketing Fee of $0.10 per contract. The Exchange intends to revise the offering for XSP in coming months, including the market model and fee schedule. In advance of this change, the Exchange proposes to eliminate the XSP Marketing Fee. The proposed changes are to take effect on August 1, 2012. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.4 Specifically, the Exchange believes the proposed rule change is consistent with Section 6(b)(4) of the Act 5, which provides that Exchange rules may provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders and other persons using its facilities. Eliminating the $0.10 per contract Marketing Fee for XSP is reasonable because XSP transactions will now be assessed lower fees than previously. This change is equitable and not unfairly discriminatory because XSP transactions will now be assessed no Marketing Fee, similar to other singlylisted CBOE products, such as DJX, OEX, SPX, VIX, XEO and Volatility Indexes. Eliminating the separate Marketing Fee for DIA and assessing the $0.25 per contract Marketing Fee for DIA is reasonable because that amount is the same amount as is being assessed for other ETFs. This is equitable and not unfairly discriminatory because the $0.25 per contract Marketing Fee will be assessed to all market participants on whom the Marketing Fee is assessed, and because DIA transactions will now be assessed the same Marketing Fee as transactions in other ETFs. Assessing the Marketing Fee on complex order SPY and QQQ transactions executed via COA and COB is reasonable because the amount of the fee would be equivalent to the amount of the Marketing Fee assessed on SPY and QQQ transactions executed via other means, as well as the amount assessed on complex order transactions in other ETFs that are executed via COA and COB. Assessing the Marketing Fee on complex order SPY and QQQQ transactions executed via COA and COB is equitable and not unfairly 4 15 5 15 PO 00000 U.S.C. 78f(b). U.S.C. 78f(b)(4). Frm 00122 Fmt 4703 discriminatory because the Marketing Fee is assessed on complex transactions in other ETFs that are executed via COA and COB, as well as on SPY and QQQ transactions executed via other means. Excluding complex orders in SPY and QQQ that trade via COB against individual leg markets from being assessed the Marketing Fee is equitable and not unfairly discriminatory because such exclusion prevents a situation in which a market participant trading the single legs on COB elects to make a trade without knowing that he will be assessed the Marketing Fee for executing such trade. Excluding complex orders in SPY and QQQ that trade via COB against individual leg markets from being assessed the Marketing Fee while still assessing the Marketing Fee for complex orders in other products that trade via COB against individual leg markets is equitable and not unfairly discriminatory because, since in the other products the Marketing Fee is assessed on simple, single leg electronic orders, a market participant executing a trade in such products will know that the Marketing Fee will be assessed and be able to take that knowledge into account in determining whether or not to execute the trade. The Exchange believes the proposed change of references from QQQQ to QQQ is consistent with the Section 6(b)(5) 6 requirements that the rules of an exchange be designed to promote just and equitable principles of trade, to prevent fraudulent and manipulative acts, to remove impediments to and to perfect the mechanism for a free and open market and a national market system, and, in general, to protect investors and the public interest. QQQ is now the correct ticker symbol for the PowerShares QQQ Trust. As such, the accurate reflection of the correct ticker symbol of QQQ eliminates potential investor confusion, thereby removing impediments to and to 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 CBOE does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. 6 15 Sfmt 4703 47149 E:\FR\FM\07AUN1.SGM U.S.C. 78f(b)(5). 07AUN1 47150 Federal Register / Vol. 77, No. 152 / Tuesday, August 7, 2012 / Notices C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) 7 of the Act and paragraph (f)(2) of Rule 19b–4 8 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: mstockstill on DSK4VPTVN1PROD with NOTICES Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File Number SR–CBOE–2012–075 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–2012–075. This file number should be included on the subject line if email 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 the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–CBOE– 2012–075 and should be submitted on or before August 28, 2012. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–19286 Filed 8–6–12; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–67553; File No. SR–EDGA– 2012–34] Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Optional Attribution of Orders on the EDGA Book Feed August 1, 2012. 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 July 24, 2012, EDGA Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGA’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which items have been prepared 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 Rule 11.5, entitled ‘‘Orders and Modifiers’’, to allow optional attribution 9 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 7 15 U.S.C. 78s(b)(3)(A). 8 17 CFR 240.19b–4(f)(2). VerDate Mar<15>2010 16:52 Aug 06, 2012 1 15 Jkt 226001 PO 00000 Frm 00123 Fmt 4703 Sfmt 4703 of orders submitted to the Exchange on the EDGA Book Feed (the ‘‘Service’’ or ‘‘EdgeBook AttributedSM’’) to Members and non-Members of the Exchange (collectively referred to as ‘‘Recipients’’) without charge. The text of the proposed rule change is available on the Exchange’s Web site at www.directedge.com, at the Exchange’s principal office, and at the Public Reference Room of 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 Exchange 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 self-regulatory organization has prepared summaries, set forth in Sections A, B and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose In SR–EDGA–2011–19,3 the Exchange made available the EDGA Book Feed (‘‘EDGA Book Feed’’), a data feed that contains all orders for securities trading on the Exchange, including all displayed orders for listed securities trading on EDGA, order executions, order cancellations, order modifications, order identification numbers and administrative messages. The EDGA Book Feed offers real-time data, thereby allowing Member firms to more accurately price their orders based on EDGA’s view of the depth of book information. It also provides Members an ability to track their own orders from order entry to execution. It is available in both unicast and multicast formats. In SR–EDGA–2012–15,4 the Exchange modified the EDGA fee schedule by codifying the fees associated with the receipt of the EDGA Book Feed. The purpose of this filing is to allow Members to optionally enter orders into the Exchange’s System,5 conveying their identity.6 Such information will then be 3 Securities Exchange Act Release No. 64792 (July 1, 2011), 76 FR 39959 (July 7, 2011) (SR–EDGA– 2011–19). 4 Securities and Exchange Release No. 66863 (Apr. 26, 2012), 77 FR 26059 (May 2, 2012) (SR– EDGA–2012–15). 5 As defined in EDGA Rule 1.5(cc). 6 Through the use of a field within the order entry message, Members will permit the display of their E:\FR\FM\07AUN1.SGM 07AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 77, Number 152 (Tuesday, August 7, 2012)]
[Notices]
[Pages 47148-47150]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-19286]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67557; File No. SR-CBOE-2012-075]

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

August 1, 2012.
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 July 27, 2012, 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 its Fees Schedule. The text of the
proposed rule change is available on the Exchange's Web site (https://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's
Office of the Secretary, and at the Commission's Public Reference Room.

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 Exchange 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 Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects 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 its Marketing Fee. Currently, the
Marketing

[[Page 47149]]

Fee assessed on all Penny Pilot Exchange-Traded Fund (``ETF'') options
is $0.25 per contract, with the exception of DIA, for which the listed
Marketing Fee is $0.10 per contract.\3\ The Exchange hereby proposes to
eliminate the exception for DIA, thereby amending the Marketing Fee for
DIA to be $0.25 per contract. This change will place DIA on the same
footing regarding the Marketing Fee as other ETFs.
---------------------------------------------------------------------------

\3\ See CBOE Fees Schedule, Section 2. Exceptions also apply
regarding certain types of trades in SPY and QQQ, as discussed
elsewhere in this proposal.
---------------------------------------------------------------------------

The Exchange also proposes to change references to options on the
PowerShares QQQ Trust. The ticker symbol for PowerShares QQQ Trust was
changed from QQQQ to QQQ in 2011, but such changes were not reflected
on the CBOE Fees Schedule. In order to accurately reflect the ticker
symbol for the PowerShares QQQ Trust, the Exchange hereby proposes to
change references on the Fees Schedule to from QQQQ to QQQ.
Currently, the marketing fee is not assessed on electronic
transactions in SPY and QQQ, except for electronic transactions
resulting from the Exchange's Automated Improvement Mechanism
(``AIM''). Because complex order transactions in SPY and QQQ made via
the Exchange's Complex Order Auction (``COA'') and Complex Order Book
(``COB'') are electronic and do not result from AIM, such transactions
do not incur the Marketing Fee. The Exchange now proposes to assess the
Marketing Fee on such transactions (with the exception of complex
orders that trade via COB against individual leg markets). By
collecting the Marketing Fee on these transactions, the Exchange can
then use such funds to attract greater order flow.
When a complex order is entered on CBOE, it first generates a COA
and, if not filled there, is placed into the COB. In either case, a
market participant is aware that it is a complex order and, in electing
to trade against it, will know that such transaction will incur the
Marketing Fee and take that fact into account in making such an
election. However, CBOE's complex order processing also has the
capability to fill a complex order from the posted leg markets. In such
an event, the liquidity provider cannot know in advance if a simple or
complex order is going to transact against those leg markets and
therefore incur the Marketing Fee, and is thus not able to adjust his
quoted price accordingly. As such, the Exchange proposes to except
electronic complex orders in SPY and QQQ that trade against individual
leg markets from being assessed the Marketing Fee.
Currently, transactions in XSP are assessed a Marketing Fee of
$0.10 per contract. The Exchange intends to revise the offering for XSP
in coming months, including the market model and fee schedule. In
advance of this change, the Exchange proposes to eliminate the XSP
Marketing Fee.
The proposed changes are to take effect on August 1, 2012.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Act and the rules and regulations thereunder applicable to the Exchange
and, in particular, the requirements of Section 6(b) of the Act.\4\
Specifically, the Exchange believes the proposed rule change is
consistent with Section 6(b)(4) of the Act \5\, which provides that
Exchange rules may provide for the equitable allocation of reasonable
dues, fees, and other charges among its Trading Permit Holders and
other persons using its facilities. Eliminating the $0.10 per contract
Marketing Fee for XSP is reasonable because XSP transactions will now
be assessed lower fees than previously. This change is equitable and
not unfairly discriminatory because XSP transactions will now be
assessed no Marketing Fee, similar to other singly-listed CBOE
products, such as DJX, OEX, SPX, VIX, XEO and Volatility Indexes.
---------------------------------------------------------------------------

\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

Eliminating the separate Marketing Fee for DIA and assessing the
$0.25 per contract Marketing Fee for DIA is reasonable because that
amount is the same amount as is being assessed for other ETFs. This is
equitable and not unfairly discriminatory because the $0.25 per
contract Marketing Fee will be assessed to all market participants on
whom the Marketing Fee is assessed, and because DIA transactions will
now be assessed the same Marketing Fee as transactions in other ETFs.
Assessing the Marketing Fee on complex order SPY and QQQ
transactions executed via COA and COB is reasonable because the amount
of the fee would be equivalent to the amount of the Marketing Fee
assessed on SPY and QQQ transactions executed via other means, as well
as the amount assessed on complex order transactions in other ETFs that
are executed via COA and COB. Assessing the Marketing Fee on complex
order SPY and QQQQ transactions executed via COA and COB is equitable
and not unfairly discriminatory because the Marketing Fee is assessed
on complex transactions in other ETFs that are executed via COA and
COB, as well as on SPY and QQQ transactions executed via other means.
Excluding complex orders in SPY and QQQ that trade via COB against
individual leg markets from being assessed the Marketing Fee is
equitable and not unfairly discriminatory because such exclusion
prevents a situation in which a market participant trading the single
legs on COB elects to make a trade without knowing that he will be
assessed the Marketing Fee for executing such trade. Excluding complex
orders in SPY and QQQ that trade via COB against individual leg markets
from being assessed the Marketing Fee while still assessing the
Marketing Fee for complex orders in other products that trade via COB
against individual leg markets is equitable and not unfairly
discriminatory because, since in the other products the Marketing Fee
is assessed on simple, single leg electronic orders, a market
participant executing a trade in such products will know that the
Marketing Fee will be assessed and be able to take that knowledge into
account in determining whether or not to execute the trade.
The Exchange believes the proposed change of references from QQQQ
to QQQ is consistent with the Section 6(b)(5) \6\ requirements that the
rules of an exchange be designed to promote just and equitable
principles of trade, to prevent fraudulent and manipulative acts, to
remove impediments to and to perfect the mechanism for a free and open
market and a national market system, and, in general, to protect
investors and the public interest. QQQ is now the correct ticker symbol
for the PowerShares QQQ Trust. As such, the accurate reflection of the
correct ticker symbol of QQQ eliminates potential investor confusion,
thereby removing impediments to and to perfecting the mechanism for a
free and open market and a national market system, and, in general,
protecting investors and the public interest.
---------------------------------------------------------------------------

\6\ 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 that is not necessary or appropriate in
furtherance of the purposes of the Act.

[[Page 47150]]

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

The Exchange neither solicited nor received comments on the
proposed rule change.

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

The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \7\ of the Act and paragraph (f)(2) of Rule 19b-4 \8\
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.
---------------------------------------------------------------------------

\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-CBOE-2012-075 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-2012-075. This file
number should be included on the subject line if email 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 the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-CBOE-2012-075 and should be
submitted on or before August 28, 2012.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-19286 Filed 8-6-12; 8:45 am]
BILLING CODE 8011-01-P

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