Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule, 67847-67849 [2012-27628]
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Federal Register / Vol. 77, No. 220 / Wednesday, November 14, 2012 / Notices
exceed regulatory costs, the Exchange
will adjust the ORF by submitting a
proposed rule change to the
Commission.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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.
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 foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A)12 of the Act and
subparagraph (f)(2) of Rule 19b–4 13
thereunder, because it establishes a due,
fee, or other charge imposed by the
NYSE Arca.
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:
emcdonald on DSK67QTVN1PROD 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–NYSEArca-2012–118 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–NYSEArca–2012–118. 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–
NYSEArca–2012–118, and should be
submitted on or before December 5,
2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–27597 Filed 11–13–12; 8:45 am]
BILLING CODE 8011–01–P
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 (www.cboe.com/
AboutCBOE/
CBOELegalRegulatoryHome.aspx), 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
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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68178; File No. SR–CBOE–
2012–104]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Fees
Schedule
November 7, 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 October
26, 2012, Chicago Board Options
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
The Exchange proposes to amend its
Fees Schedule to remove dividend
spreads from the list of strategy
executions for which fee caps apply.
Under the Exchange’s current Fees
Schedule, Market-maker, Clearing
Trading Permit Holder, broker-dealer
and non-Trading Permit Holder marketmaker transaction fees are capped at
$1,000 for a number of strategy
executions.3 The cap applies to each
strategy execution executed on the same
trading day in the same option class.
Transaction fees for these strategies are
further capped at $25,000 per month per
initiating Trading Permit Holder or
Clearing Trading Permit Holder (both
caps described herein collectively as the
‘‘Strategy Caps’’).4 The Strategy Caps
14 17
12 15
U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(2).
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67847
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3 See
CBOE Fees Schedule, Footnote 13.
4 Id.
E:\FR\FM\14NON1.SGM
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emcdonald on DSK67QTVN1PROD with NOTICES
67848
Federal Register / Vol. 77, No. 220 / Wednesday, November 14, 2012 / Notices
may provide an incentive to engage in
the strategy executions.
One strategy execution listed is a
‘‘dividend strategy’’, which is defined as
transactions done to achieve a dividend
arbitrage involving the purchase, sale
and exercise of in-the-money options of
the same class, executed prior to the
date on which the underlying stock goes
ex-dividend.5 Dividend strategy
transactions are only executed by
Market-Makers. The Exchange proposes
to remove dividend strategies from the
list of strategy executions that are
subject to the Strategy Caps. The
Exchange has determined that it does
not wish to continue to provide an
incentive via its Fees Schedule to
engage in dividend strategy trading
because this strategy may encourage
high volumes of trading of certain
securities near the ex-dividend date and
present operational risks to market
participants with respect to clearing,
exercise, and assignment or other issues
that may prevent the market participant
from the timely exercise of call options
and collecting the dividend owed. As
such, the Exchange proposes to remove
references to dividend strategies from
the Strategy Caps described in Footnote
13 of the Fees Schedule. The definition
of ‘‘dividend strategy’’ will be removed
from Footnote 13 as will all references
to dividend strategies, including
references regarding the Strategy Caps
and Index License surcharge fees.
Footnote 11 of the CBOE Fees
Schedule states that transaction fees and
contract volume resulting from any of
the strategies defined in Footnote 13
will not apply towards reaching the
Exchange’s Clearing Trading Permit
Holder Fee Cap in all Products Except
SPX, SRO, VIX or other Volatility
Indexes, OEX or XEO (the ‘‘CTPH Fee
Cap’’) and CBOE Proprietary Products
Sliding Scale for Clearing Trading
Permit Holder Proprietary Orders (the
‘‘CTPH Sliding Scale’’) volume
thresholds.6 By removing dividend
strategies from the list of strategy
executions described in Footnote 13, it
would appear as though dividend
strategy executions would begin to
apply towards reaching the CTPH Fee
Cap and CTPH Sliding Scale volume
thresholds. However, because only
Market-Makers execute dividend
strategy trades and the CTPH Fee Cap
and CTPH Sliding Scale both only apply
to Clearing Trading Permit Holders, it
would be impossible for dividend
strategy executions to apply towards
reaching the CTPH Fee Cap and CTPH
Sliding Scale volume thresholds.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.7 Specifically,
the Exchange believes the proposed rule
change is consistent with Section 6(b)(4)
of the Act,8 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. The
Exchange believes that the proposed
change is reasonable because the
Strategy Caps may provide an incentive
to engage in dividend spreads and the
Exchange has determined that it no
longer wishes to offer any potential
incentive via its Fees Schedule in light
of the operational risks that dividend
spreads may present. The Exchange also
believes that the proposed change is
equitable and not unfairly
discriminatory because it would apply
equally to all market participants and
because the remaining strategy
executions that would continue to be
subject to the fee caps do not present the
same type of potential operational risks.
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.
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.
7 15
5 Id.
6 See
Therefore, no changes need to be made
to the Fees Schedule regarding dividend
strategy executions and the CTPH Fee
Cap and CTPH Sliding Scale.
The proposed change is not otherwise
intended to address any other matter,
and the Exchange is not aware of any
significant problem that the affected
market participants would have in
complying with the proposed change.
The proposed change is to take effect on
November 1, 2012.
CBOE Fees Schedule, Footnote 11.
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U.S.C. 78f(b).
U.S.C. 78f(b)(4).
Frm 00059
Fmt 4703
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) 9 of the Act and paragraph (f)
of Rule 19b–4 10 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 email to rulecomments@sec.gov. Please include File
Number SR–CBOE–2012–104 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–2012–104. 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
9 15
U.S.C. 78s(b)(3)(A).
C.F.R. 240.19b–4(f).
10 17
Sfmt 4703
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Federal Register / Vol. 77, No. 220 / Wednesday, November 14, 2012 / Notices
business days between the hours of
10:00 a.m. and 3:00 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–
2012–104 and should be submitted on
or before December 5, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–27628 Filed 11–13–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 68175; File No. SR–NSX–2012–
17]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Amend
Its Fee and Rebate Schedule
November 7, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that
on October 31, 2012, National Stock
Exchange, Inc. (‘‘NSX®’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change, as described
in Items I, II, and III below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comment on the
proposed rule change from interested
persons.
emcdonald on DSK67QTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to amend
its Fee and Rebate Schedule (the ‘‘Fee
Schedule’’) issued pursuant to Exchange
Rule 16.1(a) to implement a monthly
FIX Port fee for ETP Holders. The text
of the proposed rule change is available
on the Exchange’s Web site at
www.nsx.com, at the Exchange’s
principal office, and at the
Commission’s Public Reference Room.
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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67849
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 parts of such
statements.
commencement of trading on November
1, 2012. Pursuant to NSX Rule 16.1(c),
the Exchange will ‘‘provide ETP Holders
with notice of all relevant dues, fees,
assessments and charges of the
Exchange’’ through the issuance of a
Regulatory Circular of the changes to the
Fee Schedule and will post a copy of the
rule filing on the Exchange’s Web site
(www.nsx.com). ETP Holders must
notify the Exchange by November 15,
2012 to reduce unused or unwanted FIX
Ports so as not be charged for them for
the month of November 2012.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) of the
Securities Exchange Act of 1934 6 (the
‘‘Act’’), in general, and Section 6(b)(4) of
the Act,7 in particular in that it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its members and
other persons using the facilities of the
Exchange. The proposed fee assessed
FIX Ports is reasonable because the
amounts of such fees are significantly
lower than those assessed on other
exchanges,8 and because such increases
will assist in recovering expenditures
recently made to upgrade the NSX
connectivity equipment. This proposed
change is equitable and not unfairly
discriminatory because the fees will be
assessed to all ETP Holders. Requiring
ETP Holders who participate in the
NSX’s Order Delivery mode of
interaction to maintain at least two (2)
FIX Ports is not unfairly discriminatory
because per port fee is significantly
lower than those of other exchanges and
more than one port is required for ETP
Holders to efficiently send and receive
trade notifications regarding their
posted Order Delivery orders.
1. Purpose
The Exchange is proposing to amend
its Fee Schedule to add a monthly FIX
Port fee for ETP Holders of $100 per FIX
Port. ETP Holders who participate in the
NSX’s Order Delivery mode of
interaction are required to maintain at
least two (2) FIX Ports (one to receive
inbound trade notifications and another
to send the Exchange order
instructions.) To date, the NSX has not
charged ETP Holders for FIX Port
connections to the Exchange. NSX
recently made sizable investments to
upgrade computer equipment during a
server relocation, including certain
hardware technology and FIX Port
enhancements. This fee will help
recover some cost associated with the
upgrade and help maintain the
equipment in the future.
The Exchange notes that the amount
the port fee is identical to that charged
by the Chicago Stock Exchange, Inc.
(‘‘CBSX’’).3 Moreover, following these
changes, NSX connectivity costs will
still be lower than those assessed for
connectivity at other exchanges. For
example, (‘‘BATS’’) assesses a FIX fee of
$400 per month,4 and the NASDAQ
Stock Market LLC assesses a fee of $500
per FIX port per month.5
Operative Date and Notice
The Exchange currently intends to
implement the proposed FIX Port Fee,
which is effective on filing of this
proposed rule, operative as of
3 See CBSX’s Fee Schedule at https://
www.cboe.com/publish/cbsxfeeschedule/
cbsxfeeschedule.pdf (dated September 7, 2012).
4 See BAT’s Fee Schedule at https://
cdn.batstrading.com/resources/regulation/
rule_book/BATS-Exchanges_Fee_Schedules.pdf
(dated October 1, 2012).
5 See Nasdaq’s Fee Schedule at https://
www.nasdaqtrader.com/
trader.aspx?id=pricelisttrading2.
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
2. Statutory Basis
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
8 See supra notes 3, 4, and 5.
7 15
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]]>Agencies
[Federal Register Volume 77, Number 220 (Wednesday, November 14, 2012)]
[Notices]
[Pages 67847-67849]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-27628]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68178; File No. SR-CBOE-2012-104]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend the Fees Schedule
November 7, 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 October 26, 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
(www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), 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 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Fees Schedule to remove dividend
spreads from the list of strategy executions for which fee caps apply.
Under the Exchange's current Fees Schedule, Market-maker, Clearing
Trading Permit Holder, broker-dealer and non-Trading Permit Holder
market-maker transaction fees are capped at $1,000 for a number of
strategy executions.\3\ The cap applies to each strategy execution
executed on the same trading day in the same option class. Transaction
fees for these strategies are further capped at $25,000 per month per
initiating Trading Permit Holder or Clearing Trading Permit Holder
(both caps described herein collectively as the ``Strategy Caps'').\4\
The Strategy Caps
[[Page 67848]]
may provide an incentive to engage in the strategy executions.
---------------------------------------------------------------------------
\3\ See CBOE Fees Schedule, Footnote 13.
\4\ Id.
---------------------------------------------------------------------------
One strategy execution listed is a ``dividend strategy'', which is
defined as transactions done to achieve a dividend arbitrage involving
the purchase, sale and exercise of in-the-money options of the same
class, executed prior to the date on which the underlying stock goes
ex-dividend.\5\ Dividend strategy transactions are only executed by
Market-Makers. The Exchange proposes to remove dividend strategies from
the list of strategy executions that are subject to the Strategy Caps.
The Exchange has determined that it does not wish to continue to
provide an incentive via its Fees Schedule to engage in dividend
strategy trading because this strategy may encourage high volumes of
trading of certain securities near the ex-dividend date and present
operational risks to market participants with respect to clearing,
exercise, and assignment or other issues that may prevent the market
participant from the timely exercise of call options and collecting the
dividend owed. As such, the Exchange proposes to remove references to
dividend strategies from the Strategy Caps described in Footnote 13 of
the Fees Schedule. The definition of ``dividend strategy'' will be
removed from Footnote 13 as will all references to dividend strategies,
including references regarding the Strategy Caps and Index License
surcharge fees.
---------------------------------------------------------------------------
\5\ Id.
---------------------------------------------------------------------------
Footnote 11 of the CBOE Fees Schedule states that transaction fees
and contract volume resulting from any of the strategies defined in
Footnote 13 will not apply towards reaching the Exchange's Clearing
Trading Permit Holder Fee Cap in all Products Except SPX, SRO, VIX or
other Volatility Indexes, OEX or XEO (the ``CTPH Fee Cap'') and CBOE
Proprietary Products Sliding Scale for Clearing Trading Permit Holder
Proprietary Orders (the ``CTPH Sliding Scale'') volume thresholds.\6\
By removing dividend strategies from the list of strategy executions
described in Footnote 13, it would appear as though dividend strategy
executions would begin to apply towards reaching the CTPH Fee Cap and
CTPH Sliding Scale volume thresholds. However, because only Market-
Makers execute dividend strategy trades and the CTPH Fee Cap and CTPH
Sliding Scale both only apply to Clearing Trading Permit Holders, it
would be impossible for dividend strategy executions to apply towards
reaching the CTPH Fee Cap and CTPH Sliding Scale volume thresholds.
Therefore, no changes need to be made to the Fees Schedule regarding
dividend strategy executions and the CTPH Fee Cap and CTPH Sliding
Scale.
---------------------------------------------------------------------------
\6\ See CBOE Fees Schedule, Footnote 11.
---------------------------------------------------------------------------
The proposed change is not otherwise intended to address any other
matter, and the Exchange is not aware of any significant problem that
the affected market participants would have in complying with the
proposed change. The proposed change is to take effect on November 1,
2012.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\7\ Specifically, the Exchange believes the proposed rule change is
consistent with Section 6(b)(4) of the Act,\8\ 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. The Exchange believes that the
proposed change is reasonable because the Strategy Caps may provide an
incentive to engage in dividend spreads and the Exchange has determined
that it no longer wishes to offer any potential incentive via its Fees
Schedule in light of the operational risks that dividend spreads may
present. The Exchange also believes that the proposed change is
equitable and not unfairly discriminatory because it would apply
equally to all market participants and because the remaining strategy
executions that would continue to be subject to the fee caps do not
present the same type of potential operational risks.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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.
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) \9\ of the Act and paragraph (f) of Rule 19b-4 \10\
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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 C.F.R. 240.19b-4(f).
---------------------------------------------------------------------------
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-2012-104 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-2012-104. 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
[[Page 67849]]
business days between the hours of 10:00 a.m. and 3:00 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-2012-104 and should be submitted on or before
December 5, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-27628 Filed 11-13-12; 8:45 am]
BILLING CODE 8011-01-P
