Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule To Include a $60 Session Fee for the Series 56 (S501) Continuing Education, 47469-47471 [2013-18752]
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Federal Register / Vol. 78, No. 150 / Monday, August 5, 2013 / Notices
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 NYSE Arca. 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–2013–74 and should be
submitted on or before August 26, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–18755 Filed 8–2–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70064; File No. SR–CBOE–
2013–078]
mstockstill on DSK4VPTVN1PROD with NOTICES
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Fees
Schedule To Include a $60 Session Fee
for the Series 56 (S501) Continuing
Education
July 30, 2013.
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 25,
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
19:07 Aug 02, 2013
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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
Fees Schedule.3 More specifically, the
Exchange is proposing to make changes
to the section ‘‘Regulatory Fees.’’
Currently under the Exchange’s
Regulatory Fees, the Exchange charges a
$100 session fee to registered persons at
the Exchange for a continuing education
(‘‘CE’’) requirement that is outlined in
Exchange Rule 9.3A. The Exchange is
now proposing to add a $60 session fee
for those individuals that only have the
Proprietary Trader (‘‘Series 56’’)
registration.
Exchange Rule 3.6A.08 outlines the
registration and qualification
requirements (including prerequisite
examinations) for TPHs and TPH
3 See Exchange Rule 2.20, which authorizes the
Exchange, from time to time, to ‘‘fix the fee and
charges payable by Trading Permit Holders.’’
1 15
VerDate Mar<15>2010
2013, 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 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.
Jkt 229001
PO 00000
Frm 00199
Fmt 4703
Sfmt 4703
47469
organizations conducting proprietary
trading, market-making and/or effecting
transactions on behalf of other broker
dealers.4 Exchange Rule 9.3A requires
all TPHs and TPH organizations to
complete the Regulatory Element of the
CE program beginning with the
occurrence of ‘‘their second registration
anniversary date and every three years
thereafter or as otherwise prescribed by
the Exchange.’’ 5 Recently, the Exchange
amended Rule 9.3A to enumerate the
different CE programs offered by the
Exchange including the S501 Series 56
Proprietary Trader Continuing
Education Program (‘‘S501’’).6 The
Exchange is now proposing to outline
the necessary fees associated with the
Regulatory Element of the S501.
The Exchange has determined that
these changes are necessary to
administer the Series 56 CE program.
Specifically, the $60 session fee will be
used to fund the CE program
administered to Proprietary Traders that
have a Series 56 registration 7 and are
required to complete the S501. The $60
session fee is less than the $100 session
fee (currently in the Exchange’s fee
schedule) for the S101 General Program
for Series 7 registered persons (‘‘S101’’)
as the Series 7 examination is a more
comprehensive examination, and, thus,
the CE is more comprehensive as well.
Thus, the Exchange believes the $60 fee
is reasonable and proportional fee based
upon the programming of the CE. In
addition, the $60 fee will only be used
for the administration of the CE versus
the S101 which utilizes the $100 fee for
both development and administration.
The costs associated with the
development costs [sic] of the S501 are
included in the examination fee.
Because the CE element is separate
and different from the CE already
administered, the proposed change
would put TPHs and TPH organizations
on notice of the associated fees. The
proposed fee would allow the Exchange
to fund the S501 which is more tailored
to the Series 56 registration. Also, the
Exchange believes other exchanges will
be assessing the same fee for this CE
program. The proposed changes are to
take effect on August 19, 2013.
4 See
Exchange Rule 3.6A.08.
Exchange Rule 9.3A(a).
6 See Securities Exchange Act Release No. 34–
70027 (July 23, 2013) (SR–CBOE–2013–076)
(immediately effective rule change to specify the
different CE requirements for registered persons
based upon their registration with the Exchange).
7 Both individuals that have successfully passed
the Series 56 examination and individuals that have
had the examination waived by the Exchange are
required to take the S501.
5 See
E:\FR\FM\05AUN1.SGM
05AUN1
mstockstill on DSK4VPTVN1PROD with NOTICES
47470
Federal Register / Vol. 78, No. 150 / Monday, August 5, 2013 / Notices
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.8 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 9 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitation transactions in
securities, 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.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 10 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the proposed rule
change is equitable and not unfairly
discriminatory as it is allocated to all
individuals with a Series 56 registration
which is required under Exchange Rule
3.6A. In addition, the fee is reasonable
as it lower than the previously assessed
CE fee because the S501 is more limited
than the S101, and the fee is only
intended to recoup the costs of the
administration of the program. Also, the
Exchange believes other exchanges will
be assessing the same fee for this CE
program. The Exchange believes the
proposed rule change will protect
investors and the public interest by
covering the administration of the
program and allow the Exchange to
tailor a CE fee for the Series 56. This
allows the Exchange to better prevent
fraudulent and manipulative acts and
practices because the CE will properly
educate Proprietary Traders in the
topics of securities laws and other rules
and help them to comply with those
laws and rules.
Finally, the Exchange also believes
the proposed rule change is consistent
with Section 6(b)(1) of the Act,11 which
provides that the Exchange be organized
and have the capacity to be able to carry
out the purposes of the Act and to
enforce compliance by the individuals
with a series 56 registration with the
Act, the rules and regulations
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 Id.
11 15 U.S.C. 78f(b)(1).
thereunder, and the rules of the
Exchange. The proposed rule change is
designed to fund the administration of
the S501, and, more specifically, to help
more closely cover the costs of
educating individuals that hold a Series
56 registration. Thus, the proposed
changes will help the Exchange to
enforce compliance of its TPHs with the
Act and Exchange rules.
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. In particular,
the proposed rule change will not
impose any burden on intermarket
competition as it will merely serve to
aid the Exchange in fulfilling its
obligations as a Self-Regulatory
Organization by further funding the
administration of the new CE. The
proposed rule change will not impose
any burden on intramarket competition
as all TPHs and TPH organizations are
required to pass a qualification exam as
outline in Rule 3.6A and fulfill a CE
requirement as outlined in Rule 9.3A. In
addition, the Exchange believes other
exchanges will be assessing the same fee
for this CE program.
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 proposed rule change is
designated by the Exchange as
establishing or changing a due, fee, or
other charge, applicable only to a
member, thereby qualifying for
effectiveness on filing pursuant to
Section 19(b)(3)(A)(ii) of the Act 12 and
subparagraph (f)(2) of Rule 19b–4 13
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. If the
Commission takes such action, the
Commission will institute proceedings
9 15
VerDate Mar<15>2010
19:07 Aug 02, 2013
12 15
13 17
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PO 00000
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
Frm 00200
Fmt 4703
Sfmt 4703
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–CBOE–2013–078 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–2013–078. 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 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–
2013–078 and should be submitted on
or before August 26, 2013.
E:\FR\FM\05AUN1.SGM
05AUN1
Federal Register / Vol. 78, No. 150 / Monday, August 5, 2013 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70062; File No. SR–BX–
2013–042]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Permit the
Nullification of Trades Involving
Catastrophic Errors
July 30, 2013
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that, on July 19,
2013, NASDAQ OMX BX, Inc. (‘‘BX’’ 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 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
Chapter V, Section 6, Obvious Errors.
Specifically, BX proposes to amend
Section 6(f)(iii) to permit the
nullification of trades involving
catastrophic errors in certain situations
specified below.
The text of the proposed rule change
is below; proposed new language is
italicized; proposed deletions are in
brackets.
*
*
*
*
*
*
*
*
*
*
*
*
Options Rules
*
*
*
mstockstill on DSK4VPTVN1PROD with NOTICES
Chapter V Regulation of Trading on
BX Options
*
*
*
*
*
Sec. 6 Obvious and Catastrophic
Errors
(a)–(e) No change.
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
19:07 Aug 02, 2013
Jkt 229001
(f) Catastrophic Errors
(i)–(ii) No change.
(iii) Adjust or Bust. A BX Official will
determine whether there was a
Catastrophic Error as defined above. If it
is determined that a Catastrophic Error
has occurred, whether or not each party
to the transaction is an Options
Participant, MarketWatch shall adjust
the execution price of the transaction,
unless both parties agree to adjust the
transaction to a different price, to the
theoretical price (i) plus the adjustment
value provided below for erroneous buy
transactions, and (ii) minus the
adjustment value provided for
erroneous sell transactions, pursuant to
the following chart; provided that the
adjusted price would not exceed the
limit price of a Public Customer’s limit
order, in which case the Public
Customer would have 20 minutes from
notification of the proposed adjusted
price to accept it or else the trade will
be nullified:
adjusted to a price outside of a Public
Customer’s limit. Specifically, the
Exchange proposes to amend Chapter V,
Section 6(f) to enable a Public Customer
who is the contra-side to a trade that is
deemed to be a catastrophic error to
have the trade nullified in instances
where the adjusted price would violate
the Public Customer’s limit price. Only
if the Public Customer, or his agent,
affirms the customer’s willingness to
accept the adjusted price through the
customer’s limit price within 20
minutes of notification of the
catastrophic error ruling would the
trade be adjusted; otherwise it would be
nullified. Today, all catastrophic error
trades are adjusted, not nullified, on all
of the options exchanges, except on
NASDAQ OMX PHLX LLC (‘‘PHLX’’),
on whose provision this proposal is
modeled.3
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2013–18752 Filed 8–2–13; 8:45 am]
NASDAQ OMX BX Rules
47471
3 See PHLX Rule 1092(f)(ii). Securities Exchange
Act Release No. 69304 (April 4, 2013), 78 FR 21482
(April 10, 2013) (SR–Phlx–2013–05).
4 Nor is the definition or process for obvious
errors changing. However, the Exchange proposes to
add reference to ‘‘catastrophic’’ errors to the title of
the provision to better reflect its content and match
that of other options exchanges.
5 Chapter I, Section 1(a)(50) defines a Public
Customer as person that is not a broker or dealer
in securities. Professional Customers are Public
Background
Currently, Chapter V, Section 6
governs obvious and catastrophic errors.
Obvious errors are calculated under the
Minimum
Theoretical price
rule by determining a theoretical price
amount
and determining, based on objective
Below $2 ...................................
$1 standards, whether the trade should be
$2 to $5 ....................................
2 nullified or adjusted. The rule also
Above $5 to $10 .......................
3 contains a process for requesting an
Above $10 to $50 .....................
5 obvious error review. Certain more
Above $50 to $100 ...................
7
substantial errors may fall under the
Above $100 ..............................
10
category of a catastrophic error, for
which a longer time period is permitted
Upon taking final action,
MarketWatch shall promptly notify both to request a review and for which trades
can only be adjusted (not nullified).
parties to the trade electronically or via
Trades are adjusted pursuant to an
telephone.
adjustment table that, in effect, assesses
(g) No change.
an adjustment penalty. By adjusting
*
*
*
*
*
trades above or below the theoretical
price plus or minus a certain amount,
II. Self-Regulatory Organization’s
the rule assesses a ‘‘penalty’’ in that the
Statement of the Purpose of, and
adjustment price is not as favorable as
Statutory Basis for, the Proposed Rule
the amount the party making the error
Change
would have received had it not made
In its filing with the Commission, the
the error.
Exchange included statements
concerning the purpose of and basis for
Proposal
the proposed rule change and discussed
At this time, the Exchange proposes to
any comments it received on the
change the catastrophic error process to
proposed rule change. The text of these
permit certain trades to be nullified. The
statements may be examined at the
definition and calculation of a
places specified in Item IV below. The
catastrophic error would not change.4
Exchange has prepared summaries, set
Once a catastrophic error is determined
forth in sections A, B, and C below, of
by a BX Official, then if both parties to
the most significant aspects of such
the trade are not a Public Customer,5 the
statements.
1. Purpose
The purpose of the proposal is to help
market participants better manage their
risk by addressing the situation where,
under current rules, a trade can be
PO 00000
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05AUN1
]]>Agencies
[Federal Register Volume 78, Number 150 (Monday, August 5, 2013)]
[Notices]
[Pages 47469-47471]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-18752]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70064; File No. SR-CBOE-2013-078]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend the Fees Schedule To Include a $60
Session Fee for the Series 56 (S501) Continuing Education
July 30, 2013.
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 25, 2013, 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 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.
---------------------------------------------------------------------------
\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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Fees Schedule.\3\ More
specifically, the Exchange is proposing to make changes to the section
``Regulatory Fees.'' Currently under the Exchange's Regulatory Fees,
the Exchange charges a $100 session fee to registered persons at the
Exchange for a continuing education (``CE'') requirement that is
outlined in Exchange Rule 9.3A. The Exchange is now proposing to add a
$60 session fee for those individuals that only have the Proprietary
Trader (``Series 56'') registration.
---------------------------------------------------------------------------
\3\ See Exchange Rule 2.20, which authorizes the Exchange, from
time to time, to ``fix the fee and charges payable by Trading Permit
Holders.''
---------------------------------------------------------------------------
Exchange Rule 3.6A.08 outlines the registration and qualification
requirements (including prerequisite examinations) for TPHs and TPH
organizations conducting proprietary trading, market-making and/or
effecting transactions on behalf of other broker dealers.\4\ Exchange
Rule 9.3A requires all TPHs and TPH organizations to complete the
Regulatory Element of the CE program beginning with the occurrence of
``their second registration anniversary date and every three years
thereafter or as otherwise prescribed by the Exchange.'' \5\ Recently,
the Exchange amended Rule 9.3A to enumerate the different CE programs
offered by the Exchange including the S501 Series 56 Proprietary Trader
Continuing Education Program (``S501'').\6\ The Exchange is now
proposing to outline the necessary fees associated with the Regulatory
Element of the S501.
---------------------------------------------------------------------------
\4\ See Exchange Rule 3.6A.08.
\5\ See Exchange Rule 9.3A(a).
\6\ See Securities Exchange Act Release No. 34-70027 (July 23,
2013) (SR-CBOE-2013-076) (immediately effective rule change to
specify the different CE requirements for registered persons based
upon their registration with the Exchange).
---------------------------------------------------------------------------
The Exchange has determined that these changes are necessary to
administer the Series 56 CE program. Specifically, the $60 session fee
will be used to fund the CE program administered to Proprietary Traders
that have a Series 56 registration \7\ and are required to complete the
S501. The $60 session fee is less than the $100 session fee (currently
in the Exchange's fee schedule) for the S101 General Program for Series
7 registered persons (``S101'') as the Series 7 examination is a more
comprehensive examination, and, thus, the CE is more comprehensive as
well. Thus, the Exchange believes the $60 fee is reasonable and
proportional fee based upon the programming of the CE. In addition, the
$60 fee will only be used for the administration of the CE versus the
S101 which utilizes the $100 fee for both development and
administration. The costs associated with the development costs [sic]
of the S501 are included in the examination fee.
---------------------------------------------------------------------------
\7\ Both individuals that have successfully passed the Series 56
examination and individuals that have had the examination waived by
the Exchange are required to take the S501.
---------------------------------------------------------------------------
Because the CE element is separate and different from the CE
already administered, the proposed change would put TPHs and TPH
organizations on notice of the associated fees. The proposed fee would
allow the Exchange to fund the S501 which is more tailored to the
Series 56 registration. Also, the Exchange believes other exchanges
will be assessing the same fee for this CE program. The proposed
changes are to take effect on August 19, 2013.
[[Page 47470]]
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.\8\ Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \9\ requirements that the rules of
an exchange be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitation transactions in securities, 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.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \10\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ Id.
---------------------------------------------------------------------------
In particular, the proposed rule change is equitable and not
unfairly discriminatory as it is allocated to all individuals with a
Series 56 registration which is required under Exchange Rule 3.6A. In
addition, the fee is reasonable as it lower than the previously
assessed CE fee because the S501 is more limited than the S101, and the
fee is only intended to recoup the costs of the administration of the
program. Also, the Exchange believes other exchanges will be assessing
the same fee for this CE program. The Exchange believes the proposed
rule change will protect investors and the public interest by covering
the administration of the program and allow the Exchange to tailor a CE
fee for the Series 56. This allows the Exchange to better prevent
fraudulent and manipulative acts and practices because the CE will
properly educate Proprietary Traders in the topics of securities laws
and other rules and help them to comply with those laws and rules.
Finally, the Exchange also believes the proposed rule change is
consistent with Section 6(b)(1) of the Act,\11\ which provides that the
Exchange be organized and have the capacity to be able to carry out the
purposes of the Act and to enforce compliance by the individuals with a
series 56 registration with the Act, the rules and regulations
thereunder, and the rules of the Exchange. The proposed rule change is
designed to fund the administration of the S501, and, more
specifically, to help more closely cover the costs of educating
individuals that hold a Series 56 registration. Thus, the proposed
changes will help the Exchange to enforce compliance of its TPHs with
the Act and Exchange rules.
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\11\ 15 U.S.C. 78f(b)(1).
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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 that is not necessary or appropriate in
furtherance of the purposes of the Act. In particular, the proposed
rule change will not impose any burden on intermarket competition as it
will merely serve to aid the Exchange in fulfilling its obligations as
a Self-Regulatory Organization by further funding the administration of
the new CE. The proposed rule change will not impose any burden on
intramarket competition as all TPHs and TPH organizations are required
to pass a qualification exam as outline in Rule 3.6A and fulfill a CE
requirement as outlined in Rule 9.3A. In addition, the Exchange
believes other exchanges will be assessing the same fee for this CE
program.
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 proposed rule change is designated by the Exchange as
establishing or changing a due, fee, or other charge, applicable only
to a member, thereby qualifying for effectiveness on filing pursuant to
Section 19(b)(3)(A)(ii) of the Act \12\ and subparagraph (f)(2) of Rule
19b-4 \13\ thereunder.
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\12\ 15 U.S.C. 78s(b)(3)(A)(ii).
\13\ 17 CFR 240.19b-4(f)(2).
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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. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-CBOE-2013-078 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-2013-078. 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 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-2013-078 and should be
submitted on or before August 26, 2013.
[[Page 47471]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-18752 Filed 8-2-13; 8:45 am]
BILLING CODE 8011-01-P
