Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the CBOE Stock Exchange Fees Schedule, 57427-57429 [2013-22649]
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Federal Register / Vol. 78, No. 181 / Wednesday, September 18, 2013 / Notices
departure from previous pricing offered
by the Exchange or pricing offered by
the Exchange’s competitors.
Additionally, Members may opt to
disfavor EDGX’s pricing if they believe
that alternatives offer them better value.
Accordingly, the Exchange does not
believe that the proposed changes will
impair the ability of Members or
competing venues to maintain their
competitive standing in the financial
markets.
Flag A
The Exchange believes that its
proposal to pass through a rebate of
$0.0015 per share for Members’ orders
that yield Flag A would increase
intermarket competition because it
offers customers an alternative means to
route to Nasdaq for the same price as
entering orders in Tape C securities on
Nasdaq directly. The Exchange believes
that its proposal would not burden
intramarket competition because the
proposed rate would apply uniformly to
all Members.
Flag C
The Exchange believes that its
proposal to pass through a rebate of
$0.0011 per share for Members’ orders
that yield Flag C would increase
intermarket competition because it
offers customers an alternative means to
route to BX for the same price as
entering orders on BX directly, provided
those orders would have qualified for a
volume based increased rebate. The
Exchange believes that its proposal
would not burden intramarket
competition because the proposed rate
would apply uniformly to all Members.
emcdonald on DSK67QTVN1PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
Members or other interested parties.
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 12 and Rule 19b–4(f)(2) 13
thereunder. 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
12 15
U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4 (f)(2).
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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
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–
EDGX–2013–34 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–EDGX–2013–34. 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–EDGX–
2013–34 and should be submitted on or
before October 9, 2013.
Frm 00077
Fmt 4703
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–22651 Filed 9–17–13; 8:45 am]
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:
PO 00000
57427
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70382; File No. SR–CBOE–
2013–086]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the CBOE
Stock Exchange Fees Schedule
September 12, 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
30, 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 the
Fees Schedule of its CBOE Stock
Exchange. The text of the proposed rule
change is available on the Exchange’s
Web site (https://www.cboe.com/
AboutCBOE/CBOELegal
RegulatoryHome.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
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\18SEN1.SGM
18SEN1
57428
Federal Register / Vol. 78, No. 181 / Wednesday, September 18, 2013 / Notices
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
CBSX proposes to amend its Fees
Schedule. First, the Exchange proposes
to amend Footnote 6 of the CBSX Fees
Schedule to remove AMD and MU from
its list of Select Symbols for whom
transactions priced $1 or greater (all fees
addressed in this filing relate to
transactions priced $1 or greater) are
assessed a fee of $0.0050 per share (for
Maker executions) and provided a
rebate of $0.0045 per share (for Taker
executions). This means that AMD and
MU will now fall into the ‘‘all other
securities’’ category and fees and rebates
applicable to ‘‘all other securities’’ will
apply to AMD and MU, which are as
follows (and are not being changed in
this proposed rule change):
Execution type
Rate
emcdonald on DSK67QTVN1PROD with NOTICES
Maker (adds less than 0.08% of TCV of liquidity in one day) (1)(5) ....................................................................
Maker (adds at least 0.08% but less than 0.16% of TCV of liquidity in one day) (1)(5) ......................................
Maker (adds at least 0.16% but less than 0.24% of TCV of liquidity in one day) (1)(5) ......................................
Maker (adds at least 0.24% but less than 0.42% of TCV of liquidity in one day) (1)(5) ......................................
Maker (adds 0.42% or more of TCV of liquidity in one day) (1)(5) ......................................................................
Taker (removes 9,999,999 shares or less of liquidity in one day (1) or less than 85% Execution Rate) ............
Taker (removes 10,000,000 shares or more of liquidity in one day (1) and equal to or greater than 85% Execution Rate).
Maker (adds liquidity using a silent order) ............................................................................................................
Taker (removes silent order liquidity) ....................................................................................................................
Maker (adds liquidity using a silent-mid or silent-post-mid order) ........................................................................
Taker (removes silent-mid or silent-post-mid liquidity) ..........................................................................................
AMD and MU had been included in
the Select Symbols in an attempt to
attract greater liquidity in both symbols,
but such increased liquidity has not
been achieved. CBSX hopes that moving
AMD and MU into the ‘‘all other
securities’’ category will increase
liquidity provision in both products.
CBSX also proposes to add AAPL and
GOOG to the list of Select Symbols. This
proposed change is an aspirational
attempt to increase liquidity provision
in these products. AAPL and GOOG are
higher-priced stocks that typically have
larger spreads than other products, and
CBSX believes that the Select Symbols
fee structure will attract more liquidity
in stocks fitting this profile.
CBSX also proposes to amend
Footnote 5 of the CBSX Fees Schedule
to state that volume from Maker
executions in the Select Symbols
(priced $1 or greater) will count towards
a market participant’s % of TCV.
Currently, Maker fees for transactions in
all other securities are determined based
on the percentage of TCV 3 of liquidity
that the Maker adds to CBSX. Because
these fees only apply to transactions in
all other securities, only volume in all
other securities (and not volume in the
Select Symbols) counted towards a
Maker’s percentage (however, TCV
includes volume in the Select Symbols,
per the definition of TCV). Therefore,
CBSX hereby proposes to include
volume from Maker executions in the
3 ‘‘TCV’’ means total consolidated volume
calculated as the volume reported by all exchanges
and trade reporting facilities to a consolidated
transaction reporting plan.
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16:45 Sep 17, 2013
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Select Symbols to count towards a
market participant’s percentage of TCV.
Since volume from the Select Symbols
is already included in TCV (the
denominator of the calculation), this
proposed change can only be a benefit
to market participants, as any volume
they do in the Select Symbols (the
numerator) will push their percentages
higher, therefore making them more
likely to qualify for the lower-fee tiers.
The proposed changes are to take
effect on September 3, 2013.
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.4 Specifically,
the Exchange believes the proposed rule
change is consistent with Section 6(b)(4)
of the Act,5 which requires that
Exchange rules 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 it
is reasonable, equitable and not unfairly
discriminatory to move AMD and MU to
be assessed the fees of ‘‘all other
securities’’ because transactions in these
products will merely be assessed the fee
and rebate amounts of all securities
other than the Select Symbols. Further,
this move is designed to attract more
trading in these products, as more
4 15
5 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
Frm 00078
Fmt 4703
Sfmt 4703
$0.0018 per share.
0.0017 per share.
0.0016 per share.
0.0015 per share.
0.0014 per share.
0.0015 rebate per share.
0.0017 rebate per share.
0.0018
0.0015
0.0018
0.0015
per share.
rebate per share.
per share.
rebate per share.
volume was traded when they were
assessed the ‘‘all other securities’’ fees
than when they were assessed the Select
Symbols fees. CBSX believes that the
liquidity profile and characteristics of
AMD and MU will allow for more
liquidity when traded under the fees of
‘‘all other securities’’. Finally, these fees
for AMD and MU will be assessed
equally to all market participants.
The Exchange believes that it is
reasonable, equitable and not unfairly
discriminatory to designate AAPL and
GOOG as Select Symbols because
transactions in these stocks will be
assessed the same fees as the other
Select Symbols. Further, the amount of
the proposed Maker fee for the Select
Symbols is merely $0.0005 greater than
the amount of the proposed Taker
rebate. CBSX believes that the Select
Symbols fee structure will attract more
liquidity in stocks fitting this profile.
Finally, these Select Symbols fees will
be assessed equally to all market
participants.
The Exchange believes that it is
reasonable to state that volume from
Maker executions in the Select Symbols
(priced $1 or greater) will count towards
a market participant’s % of TCV because
this proposed change can only be a
benefit to market participants, as any
volume they do in the Select Symbols
(the numerator) will push their
percentages higher, therefore making
them more likely to qualify for the
lower-fee tiers. The Exchange believes
that this change is equitable and not
unfairly discriminatory because it will
E:\FR\FM\18SEN1.SGM
18SEN1
Federal Register / Vol. 78, No. 181 / Wednesday, September 18, 2013 / Notices
be applied to all market participants
equally.
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. CBSX does
not believe that the proposed rule
changes will impose any burden on
intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because the
proposed changes will be applied to all
market participants. CBSX does not
believe that the proposed rule changes
will impose any burden on intermarket
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act because the
proposed changes only affect trading on
CBSX. Further, the proposed changes
are designed to incentivize more trading
on CBSX, which could encourage other
exchanges to enact their own
competitive changes. To the extent that
the proposed changes make CBSX a
more attractive trading venue for market
participants on other exchanges, such
market participants may elect to become
CBSX market participants.
emcdonald on DSK67QTVN1PROD 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 6 and paragraph (f) of Rule
19b–4 7 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:
SECURITIES AND EXCHANGE
COMMISSION
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–2013–086 on the subject line.
Self-Regulatory Organizations; EDGA
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the EDGA
Exchange, Inc. Fee Schedule
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–2013–086. 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–
2013–086 and should be submitted on
or before October 9, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–22649 Filed 9–17–13; 8:45 am]
BILLING CODE 8011–01–P
U.S.C. 78s(b)(3)(A).
7 17 CFR 240.19b–4(f).
6 15
VerDate Mar<15>2010
16:45 Sep 17, 2013
8 17
Jkt 229001
57429
PO 00000
CFR 200.30–3(a)(12).
Frm 00079
Fmt 4703
Sfmt 4703
[Release No. 34–70383; File No. SR–EDGA–
2013–27]
September 12, 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
September 3, 2013, EDGA Exchange,
Inc. (the ‘‘Exchange’’ or ‘‘EDGA’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II and III below, which items
have been prepared by the selfregulatory organization. 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 and rebates applicable to Members 3
of the Exchange pursuant to EDGA Rule
15.1(a) and (c) (‘‘Fee Schedule’’) to: (i)
decrease the rebate for orders yielding
Flag A; and (ii) increase the rebate for
orders yielding Flag C. All of the
changes described herein are applicable
to EDGA Members. The text of the
proposed rule change is available on the
Exchange’s Internet Web site at
www.directedge.com, at the Exchange’s
principal office, and at the Public
Reference Room of the Commission.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 ‘‘Member’’ is defined as ‘‘any registered broker
or dealer, or any person associated with a registered
broker or dealer, that has been admitted to
membership in the Exchange. A Member will have
the status of a ‘‘Member’’ of the Exchange as that
term is defined in Section 3(a)(3) of the Act.’’ See
Exchange Rule 1.5(n).
2 17
E:\FR\FM\18SEN1.SGM
18SEN1
]]>Agencies
[Federal Register Volume 78, Number 181 (Wednesday, September 18, 2013)]
[Notices]
[Pages 57427-57429]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-22649]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70382; File No. SR-CBOE-2013-086]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend the CBOE Stock Exchange Fees Schedule
September 12, 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 30, 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 the Fees Schedule of its CBOE Stock
Exchange. 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
[[Page 57428]]
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
CBSX proposes to amend its Fees Schedule. First, the Exchange
proposes to amend Footnote 6 of the CBSX Fees Schedule to remove AMD
and MU from its list of Select Symbols for whom transactions priced $1
or greater (all fees addressed in this filing relate to transactions
priced $1 or greater) are assessed a fee of $0.0050 per share (for
Maker executions) and provided a rebate of $0.0045 per share (for Taker
executions). This means that AMD and MU will now fall into the ``all
other securities'' category and fees and rebates applicable to ``all
other securities'' will apply to AMD and MU, which are as follows (and
are not being changed in this proposed rule change):
----------------------------------------------------------------------------------------------------------------
Execution type Rate
----------------------------------------------------------------------------------------------------------------
Maker (adds less than 0.08% of TCV of liquidity in one $0.0018 per share.
day) (1)(5).
Maker (adds at least 0.08% but less than 0.16% of TCV 0.0017 per share.
of liquidity in one day) (1)(5).
Maker (adds at least 0.16% but less than 0.24% of TCV 0.0016 per share.
of liquidity in one day) (1)(5).
Maker (adds at least 0.24% but less than 0.42% of TCV 0.0015 per share.
of liquidity in one day) (1)(5).
Maker (adds 0.42% or more of TCV of liquidity in one 0.0014 per share.
day) (1)(5).
Taker (removes 9,999,999 shares or less of liquidity in 0.0015 rebate per share.
one day (1) or less than 85% Execution Rate).
Taker (removes 10,000,000 shares or more of liquidity 0.0017 rebate per share.
in one day (1) and equal to or greater than 85%
Execution Rate).
Maker (adds liquidity using a silent order)............ 0.0018 per share.
Taker (removes silent order liquidity)................. 0.0015 rebate per share.
Maker (adds liquidity using a silent-mid or silent-post- 0.0018 per share.
mid order).
Taker (removes silent-mid or silent-post-mid liquidity) 0.0015 rebate per share.
----------------------------------------------------------------------------------------------------------------
AMD and MU had been included in the Select Symbols in an attempt to
attract greater liquidity in both symbols, but such increased liquidity
has not been achieved. CBSX hopes that moving AMD and MU into the ``all
other securities'' category will increase liquidity provision in both
products.
CBSX also proposes to add AAPL and GOOG to the list of Select
Symbols. This proposed change is an aspirational attempt to increase
liquidity provision in these products. AAPL and GOOG are higher-priced
stocks that typically have larger spreads than other products, and CBSX
believes that the Select Symbols fee structure will attract more
liquidity in stocks fitting this profile.
CBSX also proposes to amend Footnote 5 of the CBSX Fees Schedule to
state that volume from Maker executions in the Select Symbols (priced
$1 or greater) will count towards a market participant's % of TCV.
Currently, Maker fees for transactions in all other securities are
determined based on the percentage of TCV \3\ of liquidity that the
Maker adds to CBSX. Because these fees only apply to transactions in
all other securities, only volume in all other securities (and not
volume in the Select Symbols) counted towards a Maker's percentage
(however, TCV includes volume in the Select Symbols, per the definition
of TCV). Therefore, CBSX hereby proposes to include volume from Maker
executions in the Select Symbols to count towards a market
participant's percentage of TCV. Since volume from the Select Symbols
is already included in TCV (the denominator of the calculation), this
proposed change can only be a benefit to market participants, as any
volume they do in the Select Symbols (the numerator) will push their
percentages higher, therefore making them more likely to qualify for
the lower-fee tiers.
---------------------------------------------------------------------------
\3\ ``TCV'' means total consolidated volume calculated as the
volume reported by all exchanges and trade reporting facilities to a
consolidated transaction reporting plan.
---------------------------------------------------------------------------
The proposed changes are to take effect on September 3, 2013.
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.\4\ Specifically, the Exchange believes the proposed rule change is
consistent with Section 6(b)(4) of the Act,\5\ which requires that
Exchange rules 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 it is
reasonable, equitable and not unfairly discriminatory to move AMD and
MU to be assessed the fees of ``all other securities'' because
transactions in these products will merely be assessed the fee and
rebate amounts of all securities other than the Select Symbols.
Further, this move is designed to attract more trading in these
products, as more volume was traded when they were assessed the ``all
other securities'' fees than when they were assessed the Select Symbols
fees. CBSX believes that the liquidity profile and characteristics of
AMD and MU will allow for more liquidity when traded under the fees of
``all other securities''. Finally, these fees for AMD and MU will be
assessed equally to all market participants.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that it is reasonable, equitable and not
unfairly discriminatory to designate AAPL and GOOG as Select Symbols
because transactions in these stocks will be assessed the same fees as
the other Select Symbols. Further, the amount of the proposed Maker fee
for the Select Symbols is merely $0.0005 greater than the amount of the
proposed Taker rebate. CBSX believes that the Select Symbols fee
structure will attract more liquidity in stocks fitting this profile.
Finally, these Select Symbols fees will be assessed equally to all
market participants.
The Exchange believes that it is reasonable to state that volume
from Maker executions in the Select Symbols (priced $1 or greater) will
count towards a market participant's % of TCV because this proposed
change can only be a benefit to market participants, as any volume they
do in the Select Symbols (the numerator) will push their percentages
higher, therefore making them more likely to qualify for the lower-fee
tiers. The Exchange believes that this change is equitable and not
unfairly discriminatory because it will
[[Page 57429]]
be applied to all market participants equally.
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. CBSX does not believe that the
proposed rule changes will impose any burden on intramarket competition
that is not necessary or appropriate in furtherance of the purposes of
the Act because the proposed changes will be applied to all market
participants. CBSX does not believe that the proposed rule changes will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because the
proposed changes only affect trading on CBSX. Further, the proposed
changes are designed to incentivize more trading on CBSX, which could
encourage other exchanges to enact their own competitive changes. To
the extent that the proposed changes make CBSX a more attractive
trading venue for market participants on other exchanges, such market
participants may elect to become CBSX market participants.
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 \6\ and paragraph (f) of Rule 19b-4 \7\
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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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 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-2013-086 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-2013-086. 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-2013-086 and should be
submitted on or before October 9, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-22649 Filed 9-17-13; 8:45 am]
BILLING CODE 8011-01-P
