[Federal Register Volume 73, Number 46 (Friday, March 7, 2008)]
[Notices]
[Pages 12478-12479]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-4420]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57411; File No. SR-CBOE-2008-25]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to the Temporary Membership Status Access Fee
March 3, 2008.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on February 29, 2008, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or ``Exchange'') 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
Exchange. CBOE has designated this proposal as one establishing or
changing a due, fee, or other charge imposed by the Exchange under
section 19(b)(3)(A),\3\ and Rule 19b-4(f)(2) thereunder,\4\ which
renders the proposal effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to adjust the monthly access fee for persons granted
temporary CBOE membership status (``Temporary Members'') pursuant to
Interpretation and Policy .02 under CBOE Rule 3.19 (``Rule 3.19.02'').
The text of the proposed rule change is available on the Exchange's Web
site (http://www.cboe.org/Legal/), 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, CBOE included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposal. The text of these
statements may be examined at the places specified in Item IV below.
CBOE 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 current access fee for Temporary Members under Rule 3.19.02 \5\
is $7,354 per month and took effect on February 1, 2008. The Exchange
proposes to revise the access fee to be $8,468 per month commencing on
March 1, 2008.
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\5\ See Securities Exchange Act Release No. 56458 (September 18,
2007), 72 FR 54309 (September 24, 2007) (SR-CBOE-2007-107) for a
description of the Temporary Membership status under Rule 3.19.02.
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The Exchange used the following process to set the proposed access
fee: The Exchange polled each of the clearing firms that assists in
facilitating at least 10% of the transferable CBOE membership leases
and obtained the Clearing Firm Floating Monthly Rate \6\ designated by
each of these clearing firms for the month of March 2008. The Exchange
then set the proposed access fee at an amount equal to the highest of
these Clearing Firm Floating Monthly Rates.
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\6\ The term ``Clearing Firm Floating Monthly Rate'' refers to
the floating monthly rate that a clearing firm designates, in
connection with transferable membership leases that the clearing
firm assisted in facilitating, for leases that utilize that floating
monthly rate.
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The Exchange used the same process to set the proposed access fee
that it used to set the current access fee. The only difference is that
the Exchange used Clearing Firm Floating Monthly Rate information for
the month of March 2008 to set the proposed access fee (instead of
Clearing Firm Floating Monthly Rate information for the month of
February 2008 as was used to set the current access fee) in order to
take into account changes in Clearing Firm Floating Monthly Rates for
the month of March 2008.
The Exchange believes that the process used to set the proposed
access fee and the proposed access fee itself are appropriate for the
same reasons set forth in CBOE rule filing SR-CBOE-2008-12 in support
of that process and the current access fee.\7\
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\7\ See Securities Exchange Act Release No. 57293 (February 8,
2008), 73 FR 8729 (February 14, 2008) (SR-CBOE-2008-12), which
established the current access fee, for detail regarding the
rationale in support of the current access fee and the process used
to set that fee, which is also applicable to this proposed rule
change as well.
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The proposed access fee will remain in effect until such time
either that the Exchange submits a further rule filing pursuant to
section 19(b)(3)(A)(ii) of the
[[Page 12479]]
Act \8\ to modify the proposed access fee or the Temporary Membership
status under Rule 3.19.02 is terminated. Accordingly, the Exchange may
further adjust the proposed access fee in the future if the Exchange
determines that it would be appropriate to do so taking into
consideration lease rates for transferable CBOE memberships prevailing
at that time.
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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
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The procedural provisions of the CBOE Fee Schedule related to the
assessment of the proposed access fee are not proposed to be changed
and will remain the same as the current procedural provisions regarding
the assessment of the current access fee.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\9\ in general, and furthers the
objectives of section 6(b)(4) of the Act,\10\ in particular, in that it
is designed to provide for the equitable allocation of reasonable dues,
fees, and other charges among persons using its facilities.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change establishes or changes a due,
fee, or other charge imposed by the Exchange, it has become effective
pursuant to section 19(b)(3)(A) of the Act \11\ and subparagraph (f)(2)
of Rule 19b-4 \12\ thereunder. At any time within 60 days of the filing
of the proposed rule change, the Commission may summarily abrogate 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.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(2).
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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 (http://www.sec.gov/rules/sro.shtml); or
Send an e-mail to [email protected]. Please include
File Number SR-CBOE-2008-25 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2008-25. This
file number should be included on the subject line if e-mail 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 inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-CBOE-2008-25 and should be
submitted on or before March 28, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-4420 Filed 3-6-08; 8:45 am]
BILLING CODE 8011-01-P