Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule, 48814-48815 [2014-19478]

Download as PDF 48814 Federal Register / Vol. 79, No. 159 / Monday, August 18, 2014 / Notices 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 ISE. 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–ISE– 2014–37 and should be submitted on or before September 8, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Kevin M. O’Neill, Deputy Secretary. 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 (http:// 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 [FR Doc. 2014–19474 Filed 8–15–14; 8:45 am] BILLING CODE 8011–01–P 1. Purpose SECURITIES AND EXCHANGE COMMISSION [Release No. 34–72822; File No. SR–CBOE– 2014–061] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule mstockstill on DSK4VPTVN1PROD with NOTICES August 12, 2014. 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 1, 2014, 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. 18 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 16:57 Aug 15, 2014 Jkt 232001 The Exchange proposes to amend its Fees Schedule applicable to the PULSe workstation monthly fee. By way of background, the PULSe workstation is a front-end order entry system designed for use with respect to orders that may be sent to the trading systems of CBOE. The Exchange currently charges firms a fee of $350 per month for the first 10 Trading Permit Holder workstations (‘‘TPH Workstations’’) and $100 per month for all subsequent TPH Workstations. TPHs may also make a workstation available to their customers, which may include non-broker dealer public customers and non-TPH broker dealers (referred to herein as ‘‘non-TPH Workstations’’). For such non-TPH Workstations, the Exchange currently charges a fee of $350 per month per workstation.3 In addition, the Exchange waives the monthly workstation fees for the first month for the first new user of a TPH or non-TPH using a PULSe workstation.4 3 In instances where two or more TPHs wish to make a PULSe workstation available to the same non-TPH customer, a fee reduction applies. Under the reduction, if two or more TPHs make the PULSe workstation available to the same non-TPH. 4 A TPH or non-TPH Workstation is utilized by a ‘‘user’’ with a specific user login. When a firm with an existing workstation, either TPH or non- PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 The purpose of this proposed rule change is to modify the limited fee waiver available to new users of a TPH or non-TPH Workstation. Specifically, in order to give new users time to become familiar with and fully acclimated to the PULSe workstation functionality, the Exchange proposes to waive the monthly workstation fees for the first two months for all new users 5 between August 1, 2014 and December 31, 2014.6 In addition, the fee for August 2014 is waived for any users that became new users in July 2014. After December 31, 2014, the PULSe workstation fee will revert to its current form, which provides that the fee is waived for the first month for the first new user of a TPH or non-TPH workstation. The proposed fee waivers are based on CBOE’s billing period, which is based on a calendar month (i.e., begins on the first day of each month and ends on the last day of each month). For example, if a firm has a new user that begins using a PULSe workstation on August 15th, the firm’s workstation fees for the new user would be waived from August 15th— September 30th (i.e., their August and September bills would not have a charge for the new user’s workstation) or if a firm has a new user that begins using a PULSe workstation on September 25th, the firm’s workstation fees for the new user would be waived from September 25th—October 31st (i.e., their September and October bills would not have a charge for the new user’s workstation). 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.7 Specifically, TPH, adds another workstation another user login is generated. Currently, the firm receives a one month fee waiver for the workstation utilized by the new user login, but continues to pay the fee for the previous workstation. 5 A firm that is currently utilizing a TPH or nonTPH Workstation but seeks to add another workstation is adding a new user. The proposal allows for a fee waiver for all new users between August 1, 2014 and December 31, 2014. For example, if a firm has one workstation and adds three more in August, the firm will get a fee waiver for the three new workstations for two months (i.e., their August and December [sic] bill will not have a charge for the three new workstations). A firm that is not currently utilizing a TPH or non-TPH Workstation may also add any number of workstations from August 1, 2014 and December 31, 2014, and receive the same two month fee waiver. 6 If a firm has a new user in December, the firm will receive a fee waiver for that user for December 2014 and January 2015. 7 15 U.S.C. 78f(b). E:\FR\FM\18AUN1.SGM 18AUN1 Federal Register / Vol. 79, No. 159 / Monday, August 18, 2014 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 8 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) 9 requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The Exchange also believes the proposed rule change is consistent with Section 6(b)(4) of the Act,10 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. In particular, the Exchange believes the fee waiver is reasonable because the fee waivers will serve as an incentive for TPHs and their sponsored user customers to use the PULSe workstation as an additional trading tool on their trading desks. In addition, it is an incentive for firms that had new users in July 2014 to remain users of their workstation. The Exchange believes that it is equitable and not unfairly discriminatory because all firms with new users after August 1, 2014 and prior to December 31, 2014, are eligible for the fee waiver. In addition, allowing firms with new users in July 2014 to receive a fee waiver for August 2014 is not retroactive because under the current rules the firms are already receiving a fee waiver for July. Although firms that were already utilizing PULSe prior to July 2014 only received a one month fee waiver, which may be perceived as unfair discrimination, they too may have new users in the coming months and will benefit from the two month fee waiver for new users. 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. 8 15 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 11 and paragraph (f) of Rule 19b–4 12 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: 10 15 VerDate Mar<15>2010 16:57 Aug 15, 2014 [FR Doc. 2014–19478 Filed 8–15–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [File No. 500–1] Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–CBOE-2014–061. 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 (http://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 August 14, 2014. 12 17 Jkt 232001 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Kevin M. O’Neill, Deputy Secretary. In the Matter of Black Hawk Exploration, Composite Technology Corporation, Forza Environmental Building Products, Inc., Hotcloud Mobile, Inc., ImmunoBiotics, Inc., and SpatiaLight, Inc; Order of Suspension of Trading 11 15 U.S.C. 78f(b)(4). 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–CBOE2014–061 and should be submitted on or before September 8, 2014. Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– CBOE–2014–061 on the subject line. U.S.C. 78f(b)(5). 9 Id. 48815 PO 00000 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f). Frm 00096 Fmt 4703 It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Black Hawk Exploration because it has not filed any periodic reports since the period ended August 31, 2011. It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Composite Technology Corporation because it has not filed any periodic reports since the period ended March 31, 2011. It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Forza Environmental Building Products, Inc. because it has not filed any periodic 13 17 Sfmt 4703 E:\FR\FM\18AUN1.SGM CFR 200.30–3(a)(12). 18AUN1

Agencies

[Federal Register Volume 79, Number 159 (Monday, August 18, 2014)]
[Notices]
[Pages 48814-48815]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-19478]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72822; File No. SR-CBOE-2014-061]


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

August 12, 2014.
    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 1, 2014, 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.
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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 (http://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 applicable to the 
PULSe workstation monthly fee. By way of background, the PULSe 
workstation is a front-end order entry system designed for use with 
respect to orders that may be sent to the trading systems of CBOE. The 
Exchange currently charges firms a fee of $350 per month for the first 
10 Trading Permit Holder workstations (``TPH Workstations'') and $100 
per month for all subsequent TPH Workstations. TPHs may also make a 
workstation available to their customers, which may include non-broker 
dealer public customers and non-TPH broker dealers (referred to herein 
as ``non-TPH Workstations''). For such non-TPH Workstations, the 
Exchange currently charges a fee of $350 per month per workstation.\3\ 
In addition, the Exchange waives the monthly workstation fees for the 
first month for the first new user of a TPH or non-TPH using a PULSe 
workstation.\4\
---------------------------------------------------------------------------

    \3\ In instances where two or more TPHs wish to make a PULSe 
workstation available to the same non-TPH customer, a fee reduction 
applies. Under the reduction, if two or more TPHs make the PULSe 
workstation available to the same non-TPH.
    \4\ A TPH or non-TPH Workstation is utilized by a ``user'' with 
a specific user login. When a firm with an existing workstation, 
either TPH or non-TPH, adds another workstation another user login 
is generated. Currently, the firm receives a one month fee waiver 
for the workstation utilized by the new user login, but continues to 
pay the fee for the previous workstation.
---------------------------------------------------------------------------

    The purpose of this proposed rule change is to modify the limited 
fee waiver available to new users of a TPH or non-TPH Workstation. 
Specifically, in order to give new users time to become familiar with 
and fully acclimated to the PULSe workstation functionality, the 
Exchange proposes to waive the monthly workstation fees for the first 
two months for all new users \5\ between August 1, 2014 and December 
31, 2014.\6\ In addition, the fee for August 2014 is waived for any 
users that became new users in July 2014. After December 31, 2014, the 
PULSe workstation fee will revert to its current form, which provides 
that the fee is waived for the first month for the first new user of a 
TPH or non-TPH workstation. The proposed fee waivers are based on 
CBOE's billing period, which is based on a calendar month (i.e., begins 
on the first day of each month and ends on the last day of each month). 
For example, if a firm has a new user that begins using a PULSe 
workstation on August 15th, the firm's workstation fees for the new 
user would be waived from August 15th--September 30th (i.e., their 
August and September bills would not have a charge for the new user's 
workstation) or if a firm has a new user that begins using a PULSe 
workstation on September 25th, the firm's workstation fees for the new 
user would be waived from September 25th--October 31st (i.e., their 
September and October bills would not have a charge for the new user's 
workstation).
---------------------------------------------------------------------------

    \5\ A firm that is currently utilizing a TPH or non-TPH 
Workstation but seeks to add another workstation is adding a new 
user. The proposal allows for a fee waiver for all new users between 
August 1, 2014 and December 31, 2014. For example, if a firm has one 
workstation and adds three more in August, the firm will get a fee 
waiver for the three new workstations for two months (i.e., their 
August and December [sic] bill will not have a charge for the three 
new workstations). A firm that is not currently utilizing a TPH or 
non-TPH Workstation may also add any number of workstations from 
August 1, 2014 and December 31, 2014, and receive the same two month 
fee waiver.
    \6\ If a firm has a new user in December, the firm will receive 
a fee waiver for that user for December 2014 and January 2015.
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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.\7\ Specifically,

[[Page 48815]]

the Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \8\ 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) \9\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers. The Exchange also believes the proposed rule 
change is consistent with Section 6(b)(4) of the Act,\10\ 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
    \9\ Id.
    \10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    In particular, the Exchange believes the fee waiver is reasonable 
because the fee waivers will serve as an incentive for TPHs and their 
sponsored user customers to use the PULSe workstation as an additional 
trading tool on their trading desks. In addition, it is an incentive 
for firms that had new users in July 2014 to remain users of their 
workstation. The Exchange believes that it is equitable and not 
unfairly discriminatory because all firms with new users after August 
1, 2014 and prior to December 31, 2014, are eligible for the fee 
waiver. In addition, allowing firms with new users in July 2014 to 
receive a fee waiver for August 2014 is not retroactive because under 
the current rules the firms are already receiving a fee waiver for 
July. Although firms that were already utilizing PULSe prior to July 
2014 only received a one month fee waiver, which may be perceived as 
unfair discrimination, they too may have new users in the coming months 
and will benefit from the two month fee waiver for new users.

B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE does not believe that the proposed rule change will impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

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

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

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \11\ and paragraph (f) of Rule 19b-4 \12\ 
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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-CBOE-2014-061 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-CBOE-2014-061. 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 (http://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-2014-061 and should be 
submitted on or before September 8, 2014.
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-19478 Filed 8-15-14; 8:45 am]
BILLING CODE 8011-01-P