[Federal Register Volume 75, Number 46 (Wednesday, March 10, 2010)]
[Notices]
[Pages 11220-11221]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-5067]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61641; File No. SR-CBOE-2010-020]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to the Options Regulatory Fee
March 3, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on February 23, 2010, Chicago
Board Options Exchange, Incorporated (``CBOE'' or the ``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 CBOE. 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Chicago Board Options Exchange, Incorporated (``CBOE'' or
``Exchange'') proposes to amend the Options Regulatory Fee to eliminate
the minimum one-cent charge per trade. 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 proposed rule change. 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 Exchange charges an Options Regulatory Fee (``ORF'') of $.004
per contract to each member for all options transactions executed or
cleared by the member that are cleared by The Options Clearing
Corporation (``OCC'') in the customer range, excluding Linkage orders,
regardless of the exchange on which the transaction occurs. The ORF is
collected indirectly from members through their clearing firms by OCC
on behalf of the Exchange. There is a minimum one-cent charge per
trade.\2\
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\2\ The ORF was established in October 2008 as a replacement of
Registered Representative fees. See Securities Exchange Act Release
No. 58817 (October 20, 2008), 73 FR 63744 (October 27, 2008). The
ORF was to be effective January 1, 2009. In December 2008 and
January 2009, the Exchange filed proposed rule changes waiving the
ORF for January and February, to allow additional time for the
Exchange, OCC and firms to put in place appropriate procedures to
implement the fee. See Securities Exchange Act Release No. 59182
(December 30, 2008), 74 FR 730 (January 7, 2009), and Securities
Exchange Act Release No. 59355 (February 3, 2009), 74 FR 6677
(February 10, 2009). The ORF was amended three additional times in
2009. See Securities Exchange Act Release No. 59427 (February 20,
2009), 74 FR 9013 (February 27, 2009); Securities Exchange Act
Release No. 60093 (June 10, 2009), 74 FR 28749 (June 17, 2009); and
Securities Exchange Act Release No. 60513 (August 17, 2009), 74 FR
42719 (August 24, 2009).
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[[Page 11221]]
The Exchange proposes to eliminate the minimum one-cent charge per
trade. The Exchange does not calculate the ORF on a trade-by-trade
basis.\3\ The Exchange calculates the ORF by multiplying the aggregate
number of contracts executed by each clearing firm every month by the
ORF rate and then rounding to the nearest $.01 using pure rounding
(i.e., any digit 5 and above is rounded up). Because the Exchange does
not calculate the ORF on a trade-by-trade basis, the Exchange proposes
to remove the minimum one-cent charge per trade from its fees schedule.
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\3\ See CBOE Regulatory Circular RG09-30.
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2. Statutory Basis
By clarifying how the Exchange calculates the ORF, the Exchange
believes the proposed rule change is consistent with section 6(b) of
the Securities Exchange Act of 1934 (``Act'') \4\, in general, and
furthers the objectives of section 6(b)(4) \5\ of the Act in
particular, in that it is designed to provide for the equitable
allocation of reasonable dues, fees, and other charges among its
members and other persons using its facilities.
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\4\ 15 U.S.C. 78f(b).
\5\ 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
The foregoing rule change has become effective pursuant to section
19(b)(3)(A) of the Act \6\ and subparagraph (f)(2) of Rule 19b-4 \7\
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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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 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-2010-020 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-2010-020. 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-2010-020 and should be
submitted on or before March 31, 2010.
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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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-5067 Filed 3-9-10; 8:45 am]
BILLING CODE 8011-01-P