[Federal Register Volume 76, Number 46 (Wednesday, March 9, 2011)]
[Notices]
[Pages 13011-13012]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5377]
[[Page 13011]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64027; File No. SR-CBOE-2011-020]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Modify the Fees Schedule for the CBOE Stock
Exchange
March 3, 2011.
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 25, 2011, the Chicago Board Options Exchange, Incorporated
(``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I and II 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
The Exchange proposes to modify the Fees Schedule for its CBOE
Stock Exchange (``CBSX''). 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, 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
This filing proposes to make several changes to the CBSX Fees
Schedule. The Exchange proposes to modify CBSX Maker and Taker
transaction fees and rebates for transactions in securities priced $1
or greater. Maker fees and Taker rebates for transactions in a select
group of stocks (BAC, BIL, BGZ, C, CIM, DXD, FAZ, IAU, LVLT, NBG, PVI,
QID, SDS, SIRI, SKF, SNV, UDN, UNG, UUP, XLF) will remain unchanged.
Transactions in securities priced $1 or greater in another select group
of stocks (AA, AMAT, AMD, ATML, BRCD, BSX, CMCSA, COCO, CSCO, CX, DELL,
DIA, DOW, DRYS, DUK, EBAY, EMC, EWJ, EWT, FAS, FAX, F, FITB, FLEX, GBG,
GDX, GE, GLD, GLW, HBAN, HPQ, IDIX, INTC, IWM, IYR, JPM, KEY, LVS, MDT,
MFE, MGM, MO, MRVL, MSFT, MU, NLY, NOK, NVDA, NWSA, ONNN, ORCL, PBR,
PFE, PSQ, QCOM, Q, QLD, QQQQ, RF, RFMD, SBUX, S, SH, SLV, SMH, SNDK,
SPLS, SPXU, SPY, SSO, SYMC, TBT, T, TLT, TNA,TSM, TWM, TXN, TZA, UCO,
USO, UWM, UYG, VALE, VWO, VXX, VZ, WFC, XHB, XLB, XLE, XLI, XLK, XLP,
XLU, XLV, XLY, XRT, XRX, YHOO) will incur Maker fees of $0.0009 per
share and Taker rebates of $0.0006 per share. Transactions in
securities priced $1 or greater for all other stocks will be assessed a
$0.0001 fee. The Exchange is customizing transaction by security based
on CBSX's experience in trades involving those securities.
The Exchange also proposes to modify transaction fees for cross
trades that are the stock components of Qualified Contingent Trades.
The Exchange proposes to eliminate the minimum fee of $1 per trade and
raise the maximum fee from $15 to $20 in order to encourage more
submissions of such cross trades on CBSX while recouping more fees to
cover the Exchange's costs regarding such trades.
CBSX also proposes to lower the perimeter booth fee for CBSX
Trading Permit Holders that are not CBSX Market-Makers who use booth
space on the CBOE trading floor from $350 per month to $195 per month
to make such fee consistent with the equivalent CBOE fee.
The Exchange also proposes to raise to trading an average of
100,000 shares per day over a calendar month the threshold by which
CBSX Trading Permit Holders may avoid being subject to the Inactivity
Fee. This proposed change will ensure that CBSX Trading Permit Holders
are sufficiently active on CBSX.
Finally, the Exchange proposes to reorganize the notes and
footnotes in Section 2 to eliminate any possible confusion between the
two. All of the fee changes described in this proposed rule filing will
take effect on March 1, 2011.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (``Act''),\3\ in general, and furthers
the objectives of Section 6(b)(4) \4\ 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 Trading Permit Holders and
other persons using Exchange facilities. The Exchange believes that the
proposed changes to the transaction fees will allow CBSX to remain
competitive with other exchanges. The elimination of the minimum
transaction fee for cross trades that are the stock components of
Qualified Contingent Trades also allows the Exchange to attract more
transactions to the Exchange, while the increase of the maximum fee for
such cross trades will provide for a more equitable allocation of fees.
Reducing the CBSX perimeter booth fee to the same amount charged on
CBOE also provides for a more equitable allocation of fees. Raising the
threshold by which CBSX Trading Permit Holders may avoid being subject
to the Inactivity Fee also provides for a more equitable allocation of
fees by requiring that CBSX Trading Permit Holders are sufficiently
active to cover the Exchange's costs of regulating the activity of such
CBSX Trading Permit Holders.
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\3\ 15 U.S.C. 78f(b).
\4\ 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 foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \5\ and paragraph (f)(2) of Rule 19b-4
thereunder.\6\ At any time within 60 days of the filing of the proposed
rule
[[Page 13012]]
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.
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 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-2011-020 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-2011-020. 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 Number SR-CBOE-2011-020 and should be
submitted on or before March 30, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-5377 Filed 3-8-11; 8:45 am]
BILLING CODE 8011-01-P