[Federal Register Volume 75, Number 112 (Friday, June 11, 2010)]
[Notices]
[Pages 33374-33375]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14054]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62227; File No. SR-CBOE-2010-050]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Amend the Fees Schedule
June 4, 2010.
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 May 21, 2010, the Chicago Board Options Exchange, Incorporated
(``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 Exchange has designated this proposal as one establishing
or changing a due, fee, or other charge imposed by CBOE under Section
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder.\4\ 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)(ii).
\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
The Exchange proposes to amend its Fees Schedule to establish fees
for transactions in all S&P 500 Dividend Index options, regardless of
the specified accrual period. The text of the proposed rule change is
available on the Exchange's Web site (http://www.cboe.org/Legal), on
the Commission's Web site at http://www.sec.gov, 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 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 those 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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange previously received approval to list options on the
S&P 500 Dividend Index, which represents the accumulated ex-dividend
amounts of all S&P 500 Index component securities over a specified
accrual period (e.g., quarterly, semi-annually, annually), and recently
approval to list options on the S&P 500 Annual Dividend Index with an
applied scaling factor of 1.\5\ The Exchange currently lists S&P 500
Dividend Index (``DVS'') options with a specified quarterly accrual
period and will begin listing options on the S&P 500 Annual Dividend
Index on May 25, 2010.
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\5\ See Securities Exchange Act Release Nos. 61136 (December 10,
2009), 74 FR 66711 (December 16, 2009) (SR-CBOE-2009-022) and 62023
(May 3, 2010), 75 FR 25899 (May 10, 2010) (SR-CBOE-2010-039).
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The purposes [sic] of this filing is to amend the CBOE Fees
Schedule to extend the existing fees for transactions in DVS options to
all options on the S&P 500 Dividend Index, regardless of the specified
accrual period.\6\ Currently the established transaction fees for DVS
options are as follows:
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\6\ See Securities Exchange Act Release No. 61295 (January 6,
2010), 75 FR 2166 (January 14, 2010) (SR-CBOE-2009-098) (filing
establishing transaction fees for DVS options).
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$0.20 per contract for Market-Maker and Designated Primary
Market-Maker transactions;\7\
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\7\ This is the standard rate that is subject to the Liquidity
Provider Sliding Scale as set forth in Footnote 10 to the Fees
Schedule.
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$0.20 per contract for member firm proprietary
transactions;
$0.40 per contract for manually executed broker-dealer
transactions;
$0.40 per contract for electronically executed broker-
dealer transactions;
$0.40 per contract for voluntary professional
transactions;
$0.40 per contract for professional transactions;
$0.40 per contract for customer transactions; and
$0.10 per contract CFLEX surcharge fee.
The Exchange also assesses a $.10 per contract surcharge fee on all
non-public customer transactions in DVS options to help the Exchange
recoup license fees the Exchange pays to the reporting authority.
Further, the Exchange's Liquidity Provider Sliding Scale applies to
transaction fees in DVS options, but the Exchange's marketing fee \8\
does not apply.
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\8\ See Footnote 6 of the Fees Schedule.
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To affect the current proposal, the Exchange proposes to replace
all references to ``DVS'' in the CBOE Fees Schedule with a reference to
``S&P 500 Dividend Index.'' The transaction fees for options on the
``S&P 500 Dividend Index'' will apply to all options on the S&P 500
Dividend Index regardless of the specified accrual period (e.g.,
quarterly, semi-annually, annually).
The Exchange believes the rule change will further the Exchange's
goal of introducing new products to the marketplace that are
competitively priced.\9\ Also, the Exchange states that the surcharge
fee on all non-public customer transactions in options on the S&P 500
Dividend Index is to help the
[[Page 33375]]
Exchange recoup license fees the Exchange pays to Standard & Poor's
Financial Services LLC to list options on the S&P 500 Dividend Index.
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\9\ Linkage order fees are inapplicable for options on CBOE's
proprietary products.
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\10\ in general, and furthers the objectives of Section 6(b)(4)
\11\ of the Act in particular, in that it is designed to provide for
the equitable allocation of reasonable dues, fees, and other charges
among CBOE members and other persons using its facilities. The Exchange
believes the fee changes proposed by this filing are equitable and
reasonable in that [sic] will further the Exchange's goal of
introducing new products to the marketplace that are competitively
priced and will help the Exchange recoup license fees that the Exchange
pays to the reporting authority.
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\10\ 15 U.S.C. 78f(b).
\11\ 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 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
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed 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 \12\ and
subparagraph (f)(2) of Rule 19b-4 \13\ 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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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 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-2010-050 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-2010-050. 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 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
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-2010-050 and should be
submitted on or before July 2, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-14054 Filed 6-10-10; 8:45 am]
BILLING CODE 8011-01-P