[Federal Register Volume 75, Number 209 (Friday, October 29, 2010)]
[Notices]
[Pages 66817-66818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-27359]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63160; File No. SR-CBOE-2010-093]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Modify the Fee Schedule for the CBOE Stock
Exchange
October 22, 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 October 15, 2010, the 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.
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\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
CBOE proposes to amend the Fee Schedule of the CBOE Stock Exchange
(``CBSX'') to modify certain transaction fees. The text of the proposed
rule change is available on the Exchange's Web site (http://www.cboe.org/legal), at the Exchange's principal office, 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
On August 23, 2010, the Commission published an immediately
effective rule filing to modify the transaction fees for 24 securities
traded on CBSX (the following symbols: BAC, C, DXD, EMC, EWJ, F, FAX,
FAZ, GE, INTC, MOT, MSFT, MU, NOK, Q, QID, S, SIRI, SKF, T, TWM, UNG,
UWM, XLF).\3\ On September 9, 2010, the Commission published an
immediately effective rule filing to modify the transaction fees for 51
more securities traded on CBSX (the following symbols: AA, AMAT, AMD,
BGZ, BP, BSX, CMCSA, COCO, CSCO, CX, DELL, DUK, EBAY, EEM, EWT, FAS,
FLEX, HBAN, IYR, MDT, MGM, IYR, MDT, MGM, NLY, NVDA, NWSA, ORCL, PFE,
QCOM, QQQQ, SBUX, SH, SLV, SMH, SSO, SYMC, TBT, TSM, TXN, UCO, USO,
VALE, VWO, WFC, XHB, XLB, XLK, XLP, XLU, XLV, XLY, XRX, YHOO).\4\ On
September 28, 2010, the Commission published an immediately effective
rule filing to modify the transaction fees for 51 more securities
traded on CBSX (the following symbols: ARNA, ATML, BKC, BRCD, CIM, DOW,
DRYS, EFA, EWZ, FITB, FXI, GBG, GDX, GLD, GLW, HPQ, IDIX, IWM, JPM,
KEY, LVLT, LVS, MFE, MO, MRVL, ONNN, PBR, PCBC, QLD, RF, RFMD, RIMM,
RRI, RSCR, SDS, SNDK, SPLS, SPY, TEVA, TLT, TNA, TZA, UYG, VXX, VZ, X,
XLE, XLI, XOM, XRT).\5\
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\3\ See Securities Exchange Act Release No. 34-62758 (August 23,
2010), 75 FR 52792 (August 27, 2010) (SR-CBOE-2010-075).
\4\ See Securities Exchange Act Release No. 34-62878 (September
9, 2010), 75 FR 56627 (September 16, 2010) (SR-CBOE-2010-079).
\5\ See Securities Exchange Act Release No. 34-63000 (September
28, 2010), 75 FR 61549 (October 5, 2010) (SR-CBOE-2010-089).
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CBSX now proposes to modify its transaction fees so that all
securities are subject to the Maker and Taker fees and rebates to which
the aforementioned securities became subject. The Taker rebate shall be
$0.0014 per share for transactions in all securities traded on CBSX
that are priced $1 or greater. The Maker fee shall be $0.0018 per share
for transactions in all securities traded on CBSX that are priced $1 or
greater.
Additionally, CBSX proposes to modify the Maker and Taker fees and
rebates for transactions in securities priced less than $1. The Taker
fee for such transactions shall be 0.05% of the dollar value of the
transaction. The Maker rebate for such transaction shall be 0.01% of
the dollar value of the transaction.
Consistent with the new fees set forth above, CBSX also proposes to
amend the fee and rebate for NBBO Step-Up Trades. For stocks priced $1
and over, the order that is flashed will receive a $0.0014 per share
rebate and the responder will be charged $0.0018 per share. For stocks
priced under $1, the maker/taker fees will correspond to those in place
for non-flashed executions (i.e., the Taker fee for such transactions
shall be 0.05% of the dollar value of the transaction, and the Maker
rebate for such transaction shall be 0.01% of the dollar value of the
transaction).
The fee changes will become effective on October 18, 2010.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\6\ in general, and furthers the objectives of
[[Page 66818]]
Section 6(b)(4) \7\ 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.
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\6\ 15 U.S.C. 78f(b).
\7\ 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
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
The proposed rule change is designated by the Exchange as
establishing or changing a due, fee, or other charge, thereby
qualifying for effectiveness on filing pursuant to Section
19(b)(3)(A)(ii) \8\ of the Act and subparagraph (f)(2) of Rule 19b-4
\9\ thereunder.
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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-4(f)(2).
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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.
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-2010-093 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-2010-093. 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 CBOE. 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-2010-093 and should be
submitted on or before November 19, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-27359 Filed 10-28-10; 8:45 am]
BILLING CODE 8011-01-P