Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule, 55310-55312 [2013-21931]
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Federal Register / Vol. 78, No. 175 / Tuesday, September 10, 2013 / Notices
necessary or appropriate in furtherance
of the purposes of the Act because the
change only applies to trading on CBOE.
The Exchange does not believe that
the proposal to explicitly state that the
$25,000 per month strategies fees cap
applies to TPH organizations as well as
Trading Permit Holders will impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because this
is not a substantive change, but merely
intended to clear up any potential
confusion.
CBOE does not believe that the
proposed amendment to Footnote 27
permitting complex orders that cannot
be tied to a single order ID to qualify for
the Discount will impose any burden on
intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because this
proposed change does not affect which
types of market participants qualify for
the Discount; it is merely intended to
make up for an Exchange system
limitation. This change provides
complex orders that cannot be tied to a
single order ID with the ability to
qualify for the Discount, just as complex
orders that can be tied to a single order
ID may qualify for the Discount. CBOE
does not believe that this proposed
change will impose any burden on
intermarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act for much of
the same reasons. The change is not
made for competitive reasons, but
instead to correct for an Exchange
system limitation. Further, this
proposed change applies only to trading
on CBOE. To the extent that the
proposed change may make CBOE a
more attractive trading venue for market
participants at other exchanges, such
market participants may elect to become
CBOE market participants.
sroberts on DSK5SPTVN1PROD with 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)
of the Act 21 and paragraph (f) of Rule
19b–4 22 thereunder. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
21 15
U.S.C. 78s(b)(3)(A).
22 17 CFR 240.19b–4(f).
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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–2013–083 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–2013–083. 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
offices of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
PO 00000
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Sfmt 4703
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CBOE–
2013–083, and should be submitted on
or before October 1, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–21933 Filed 9–9–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70313; File No. SR–CBOE–
2013–085]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Fees
Schedule
September 4, 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 August
22, 2013, 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
23 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\10SEN1.SGM
10SEN1
Federal Register / Vol. 78, No. 175 / Tuesday, September 10, 2013 / Notices
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 exclude the
Russell 2000 Index (‘‘RUT’’) from the
Exchange’s Volume Incentive Program
(‘‘VIP’’). This would mean that RUT
volume would not be included in the
calculations used for determining VIP,
nor would the Exchange pay out a credit
for RUT trades. The reason for this
proposed change is due to changing
economic circumstances regarding RUT
(including changed license fees (which
are lower than those offered by other
exchanges) 3 and other effects of the new
RUT licensing structure). The changed
licensing structure for RUT makes it less
economically feasible to include RUT in
the VIP. Further, CBOE’s competitive
offering for RUT, including the trading
of RUT over CBOE’s Complex Order
Book and the assessment of the
Marketing Fee for RUT transactions 4 as
well as other economic circumstances
regarding the trading of RUT, has
caused CBOE to gain such market share
that CBOE has deemed it unnecessary to
offer the VIP’s incentives in order to
attract RUT volume (the purpose of the
VIP is to attract volume via offering
volume-based incentives). Unlike for
other multiply-listed indexes traded at
CBOE that are still included in the VIP,
CBOE’s competitive offering regarding
RUT offers enough incentives to market
participants wishing to trade RUT that
including RUT in the VIP is
unnecessary.
2. Statutory Basis
sroberts on DSK5SPTVN1PROD with NOTICES
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.5 Specifically,
the Exchange believes the proposed rule
change is consistent with Section 6(b)(4)
3 See SR–CBOE–2013–83, which increases the
Exchange’s RUT Surcharge Fee to $0.30 per
contract, compared to SR–NYSEMKT–2013–65,
which increased the NYSE MKT LLC (‘‘AMEX’’)
Royalty Fee for RUT from $0.15 per contract to
$0.40 per contract.
4 See CBOE Fees Schedule, Marketing Fee table.
5 15 U.S.C. 78f(b).
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of the Act,6 which provides that
Exchange rules may provide for the
equitable allocation of reasonable dues,
fees, and other charges among its TPHs
and other persons using its facilities.
The Exchange believes that excluding
RUT from the VIP is reasonable because
the VIP is a credit program, and
excluding RUT from the VIP does not
impose any extra fee for RUT trades, it
just prevents them from incurring a
credit (or counting towards incurring
credits). As such, qualifying market
participants trading RUT will merely be
required to pay regular transaction fees.
The Exchange believes that excluding
RUT from the VIP is equitable and not
unfairly discriminatory because the
different licensing schemes for RUT
(and all licensed products) make such
products incomparable, and the
changed licensing structure for RUT
makes it less economically feasible to
include RUT in the VIP. Further,
CBOE’s competitive offering for RUT,
including the trading of RUT over
CBOE’s Complex Order Book and the
assessment of the Marketing Fee for
RUT transactions 7 as well as other
economic circumstances regarding the
trading of RUT, has caused CBOE to
gain such market share that CBOE has
deemed it unnecessary to offer the VIP’s
incentives in order to attract RUT
volume (the purpose of the VIP is to
attract volume via offering volumebased incentives). Unlike for other
multiply-listed indexes traded at CBOE
that are still included in the VIP,
CBOE’s competitive offering regarding
RUT offers enough incentives to market
participants wishing to trade RUT that
including RUT in the VIP is
unnecessary.
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. The
Exchange does not believe that
excluding RUT from the VIP will
impose any burden on intramarket
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act because the
proposed change does not affect to
whom the VIP applies. Further, the
different licensing schemes for RUT
(and all licensed products) make such
products incomparable, and the
changed licensing structure for RUT
makes it less economically feasible to
include RUT in the VIP. The Exchange
6 15
U.S.C. 78f(b)(4).
CBOE Fees Schedule, Marketing Fee table.
7 See
PO 00000
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Fmt 4703
Sfmt 4703
55311
does not believe that excluding RUT
from the VIP is will impose any burden
on intermarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because this
exclusion only applies to trading on
CBOE, and the VIP only applies to
CBOE.
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)
of the Act 8 and paragraph (f) of Rule
19b–4 9 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. 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 rulecomments@sec.gov. Please include File
Number SR–CBOE–2013–085 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–2013–085. This file
number should be included on the
subject line if email is used. To help the
8 15
9 17
E:\FR\FM\10SEN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
10SEN1
55312
Federal Register / Vol. 78, No. 175 / Tuesday, September 10, 2013 / Notices
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
offices of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CBOE–
2013–085, and should be submitted on
or before October 1, 2013.
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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70317; File No. SR–
NYSEArca–2013–42]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of a
Proposed Rule Change Amending Rule
6.72 To Make Permanent the Penny
Trading Program for Options
sroberts on DSK5SPTVN1PROD with NOTICES
September 4, 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 August
20, 2013, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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16:10 Sep 09, 2013
Jkt 229001
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.
1. Purpose
The purpose of this filing is to amend
Rule 6.72 to make permanent the penny
trading program in options (the
‘‘Program’’), which was approved on a
limited pilot basis on January 23, 2007
(the ‘‘Penny Pilot’’ or, the ‘‘Pilot’’), and
has been expanded and extended
numerous times since.3
[FR Doc. 2013–21931 Filed 9–9–13; 8:45 am]
10 17
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 6.72 to make permanent the penny
trading program for options. The text of
the proposed rule change is available on
the Exchange’s Web site at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
3 Exchange Act Release No. 55156 (January 23,
2007) 72 FR 4759 (February 1, 2007) (NYSEArca–
2006–73); Release No. 56150 (July 26, 2007) 72 FR
42460 (August 2, 2007) (NYSEArca–2007–56);
Release No. 56568 (September 27, 2007) 72 FR
56422 (October 3, 2007) (NYSEArca–2007–88);
Release No. 59628 (March 26, 2009) 74 FR 15025
(NYSEArca–2009–26); Release No. 60224 (July 1,
2009) 74 FR 32991 (July 9, 2009) (NYSEArca–2009–
61); Release No. 60711 (September 23, 2009) 74 FR
49419 (September 28, 2009) (NYSEArca–2009–44);
Release No. 61061 (November 24, 2009) 74 FR
62857 (December 1, 2009) (NYSEArca–2009–44);
Release No. 63376 (November 24, 2010) 75 FR
75527 (December 3, 2010) (NYSEArca–2010–104);
Release No. 65977 (December 15, 2011) 76 FR
79234 (NYSEArca–2011–93); Release No. 67307
(June 28, 2012) 77 FR 40110 (July 6, 2012)
(NYSEArca–2012–65); Release No. 68426
(December 13, 2012) 77 FR 75224 (December 19,
2012) (NYSEArca–2012–135); Release No. 69106
(March 11, 2013) 78 FR 16552 (March 15, 2013)
PO 00000
Frm 00076
Fmt 4703
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NYSE Arca, having demonstrated the
benefits of options trading in pennies
for customers through numerous
studies, proposes to make the Program
permanent, but on a reduced level.
NYSE Arca proposes that the Program
be limited to the 150 most active
multiply listed options classes.
Analysis of the Current Program
Under the Penny Pilot, the Program is
currently available for 363 listed options
classes. NYSE Arca conducted an
analysis of penny trading in options to
determine the effectiveness of the Penny
Pilot within the full range of the Pilot
issues. Since the Pilot was expanded
over the time period of November 2009
to August 2010, the Exchange reviewed
data from the last two full calendar
years.
The Exchange determined that, while
the overall Pilot was of great benefit to
Customers and provide [sic] greater
opportunities to all market participants,
the benefits have been concentrated in
the 150 most active Penny Pilot issues
(the ‘‘Top 150’’), and that the Pilot
issues outside of the Top 150 (the
‘‘Bottom 203’’) 4 not only failed to reap
a benefit from penny trading, but
resulted in more technology overhead
costs to provide for capacity and speed
for quote activity, and lagged the overall
market in volume and in various
performance statistics. As part of its
analysis, the Exchange reviewed quoteto-volume ratios for the Top 150, the
Bottom 203, and the Top 200 non-Penny
Pilot issues.5
The Exchange found the following:
QUOTE TO VOLUME RATIO
[January to October 2012]
Segment
Top 50 Penny Pilot Issues .........
Top 150 Penny Pilot Issues .......
Top 200 Non Penny Issues ........
Bottom 203 .................................
Quote/
Contract
176
216
514
589
to
to
to
to
1.
1.
1.
1.
The Exchange believes that the quoteto-volume ratios demonstrate that the
(NYSEArca–2013–22); Release No. 69790 (June 18,
2013) 78 FR 37853 (June 24, 2013) (NYSE Arca–
2013–59).
4 For purposes of consistency, the study was
conducted on issues that were in the Penny Pilot
as of the end of 2012 and added to the Pilot no later
than January 2011, thus excluding 9 issues. One
other issue was excluded due to extenuating
circumstances of the underlying. The total number
of issues studied was 353. For a more detailed
discussion on methodology, see NYSE U.S. Options
Report on Penny Trading in Options 2012, attached
as Exhibit 3 to the proposing Rule change.
5 Study period was January through October,
2012. The time frame was chosen to allow for a year
over year comparison period in which the Penny
Pilot was completely rolled out to 363 issues.
E:\FR\FM\10SEN1.SGM
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]]>Agencies
[Federal Register Volume 78, Number 175 (Tuesday, September 10, 2013)]
[Notices]
[Pages 55310-55312]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-21931]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70313; File No. SR-CBOE-2013-085]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend the Fees Schedule
September 4, 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 August 22, 2013, 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
[[Page 55311]]
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 exclude the Russell 2000 Index (``RUT'')
from the Exchange's Volume Incentive Program (``VIP''). This would mean
that RUT volume would not be included in the calculations used for
determining VIP, nor would the Exchange pay out a credit for RUT
trades. The reason for this proposed change is due to changing economic
circumstances regarding RUT (including changed license fees (which are
lower than those offered by other exchanges) \3\ and other effects of
the new RUT licensing structure). The changed licensing structure for
RUT makes it less economically feasible to include RUT in the VIP.
Further, CBOE's competitive offering for RUT, including the trading of
RUT over CBOE's Complex Order Book and the assessment of the Marketing
Fee for RUT transactions \4\ as well as other economic circumstances
regarding the trading of RUT, has caused CBOE to gain such market share
that CBOE has deemed it unnecessary to offer the VIP's incentives in
order to attract RUT volume (the purpose of the VIP is to attract
volume via offering volume-based incentives). Unlike for other
multiply-listed indexes traded at CBOE that are still included in the
VIP, CBOE's competitive offering regarding RUT offers enough incentives
to market participants wishing to trade RUT that including RUT in the
VIP is unnecessary.
---------------------------------------------------------------------------
\3\ See SR-CBOE-2013-83, which increases the Exchange's RUT
Surcharge Fee to $0.30 per contract, compared to SR-NYSEMKT-2013-65,
which increased the NYSE MKT LLC (``AMEX'') Royalty Fee for RUT from
$0.15 per contract to $0.40 per contract.
\4\ See CBOE Fees Schedule, Marketing Fee table.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\5\ Specifically, the
Exchange believes the proposed rule change is consistent with Section
6(b)(4) of the Act,\6\ which provides that Exchange rules may provide
for the equitable allocation of reasonable dues, fees, and other
charges among its TPHs and other persons using its facilities.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that excluding RUT from the VIP is reasonable
because the VIP is a credit program, and excluding RUT from the VIP
does not impose any extra fee for RUT trades, it just prevents them
from incurring a credit (or counting towards incurring credits). As
such, qualifying market participants trading RUT will merely be
required to pay regular transaction fees. The Exchange believes that
excluding RUT from the VIP is equitable and not unfairly discriminatory
because the different licensing schemes for RUT (and all licensed
products) make such products incomparable, and the changed licensing
structure for RUT makes it less economically feasible to include RUT in
the VIP. Further, CBOE's competitive offering for RUT, including the
trading of RUT over CBOE's Complex Order Book and the assessment of the
Marketing Fee for RUT transactions \7\ as well as other economic
circumstances regarding the trading of RUT, has caused CBOE to gain
such market share that CBOE has deemed it unnecessary to offer the
VIP's incentives in order to attract RUT volume (the purpose of the VIP
is to attract volume via offering volume-based incentives). Unlike for
other multiply-listed indexes traded at CBOE that are still included in
the VIP, CBOE's competitive offering regarding RUT offers enough
incentives to market participants wishing to trade RUT that including
RUT in the VIP is unnecessary.
---------------------------------------------------------------------------
\7\ See CBOE Fees Schedule, Marketing Fee table.
---------------------------------------------------------------------------
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. The Exchange does not believe
that excluding RUT from the VIP will impose any burden on intramarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act because the proposed change does not affect to whom
the VIP applies. Further, the different licensing schemes for RUT (and
all licensed products) make such products incomparable, and the changed
licensing structure for RUT makes it less economically feasible to
include RUT in the VIP. The Exchange does not believe that excluding
RUT from the VIP is will impose any burden on intermarket competition
that is not necessary or appropriate in furtherance of the purposes of
the Act because this exclusion only applies to trading on CBOE, and the
VIP only applies to CBOE.
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) of the Act \8\ and paragraph (f) of Rule 19b-4 \9\
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. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-CBOE-2013-085 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-2013-085. This file
number should be included on the subject line if email is used. To help
the
[[Page 55312]]
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 offices of the Exchange. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-CBOE-2013-085, and should be
submitted on or before October 1, 2013.
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\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-21931 Filed 9-9-13; 8:45 am]
BILLING CODE 8011-01-P
