[Federal Register Volume 76, Number 14 (Friday, January 21, 2011)]
[Notices]
[Pages 3929-3931]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-1219]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63721; File No. SR-CBOE-2011-001]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to PULSe Fees
January 14, 2011.
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 January 3, 2011, the 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 Exchange has designated this proposal as one establishing
or changing a due, fee, or other charge imposed by CBOE under Section
[[Page 3930]]
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 is proposing to amend its fees schedule as it relates
to PULSe workstations. 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.
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, Proposed Rule Change
1. Purpose
The purpose of this proposed rule change is to introduce fees for
an on-floor version of the PULSe workstation and to extend the waiver
of the PULSe Routing Intermediary 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 and CBOE Stock Exchange (``CBSX''). In
addition, the PULSe workstation provides a user with the capability to
send options orders to other U.S. options exchanges and stock orders to
other U.S. stock exchanges through a PULSe Routing Intermediary
(``away-market routing'').\5\
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\5\ For a more detailed description of the PULSe workstation and
its other functionalities, see, e.g., Securities Exchange Act
Release No. 62286 (June 11, 2010), 75 FR 34799 (June 18, 2010) (SR-
CBOE-2010-051).
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The first purpose of this proposed rule change is introduce fees
for a new version of the PULSe workstation that will be configured for
use on the CBOE trading floor by CBOE Trading Permit Holders (the
``PULSe On-Floor Workstation''). For administrative reasons, the PULSe
On-Floor Workstation will be licensed from CBOE to a CBOE Trading
Permit Holder.\6\ As with the existing PULSe workstation (referred to
herein as the ``PULSe Off-Floor Workstation''), the PULSe On-Floor
Workstation will provide the capability to send orders to CBOE, CBSX
and away-market routing functionality. The Exchange proposes a monthly
workstation fee of $225 per workstation (referred to in the Fees
Schedule as a ``login ID'') per month for the PULSe On-Floor
Workstation effective beginning in the month of January 2011. The
Exchange also notes that the existing PULSe Away-Market Routing,
Routing Intermediary and Non-Standard Services fees applicable to the
PULSe Off-Floor Workstation would also apply to the PULSe On-Floor
Workstation.
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\6\ The PULSe Off-Floor Workstation is licensed directly from
Signal Trading Systems, LLC, an affiliate of CBOE, to CBOE Trading
Permit Holders. See Securities Exchange Act Release No. 63244
(November 4, 2010), 75 FR 69148 (November 10, 2010) (SR-CBOE-2010-
100).
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The second purpose of this proposed rule change is to extend the
waiver of the PULSe Routing Intermediary fee. Currently the Exchange
has waived the Routing Intermediary fee through December 31, 2010. The
Exchange is proposing to extend this waiver through March 31, 2011.
Thus this fee will be assessed beginning April 1, 2011.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\7\ in general, and furthers the objectives of Section 6(b)(4) of
the Act,\8\ in particular, in that it is designed to provide for the
equitable allocation of reasonable dues, fees, and other charges among
Trading Permit Holders in that the same fees are applicable to all
Trading Permit Holders that would use the new PULSe On-Floor
Workstation and the same fee waiver applies to all PULSe Routing
Intermediaries.
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\7\ 15 U.S.C. 78f(b).
\8\ 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 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) of the Act \9\ and subparagraph (f)(2) of Rule 19b-4
\10\ thereunder.
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\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 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-2011-001 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-2011-001. 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
[[Page 3931]]
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 website 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 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-2011-001 and should be submitted on or before February 11,
2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-1219 Filed 1-20-11; 8:45 am]
BILLING CODE 8011-01-P