[Federal Register Volume 76, Number 70 (Tuesday, April 12, 2011)]
[Notices]
[Pages 20392-20393]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-8622]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64199; File No. SR-CBOE-2011-035]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend CBSX Maker and Taker Transaction Fees and
Rebates for Transactions in Securities Priced $1 or Greater
April 6, 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 March 31, 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, 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
The Exchange proposes to amend CBOE Stock Exchange (``CBSX'')
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
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 changes to the CBSX Fees Schedule. On
March 1, 2011, CBOE modified the CBSX Maker and Taker transaction fees
and rebates for transactions in securities priced $1 or greater.\3\
Following that change, transactions in securities priced $1 or greater
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) became
subject to Maker fees of $0.0018 per share and Taker rebates of $0.0014
per share. 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) became subject to 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
securities became subject to a $0.0001 fee.
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\3\ See Securities Exchange Act Release No. 64027 (March 3,
2011), 76 FR 13011 (March 9, 2011) (SR-CBOE-2011-020).
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The Exchange now proposes to change the specific securities in the
groups. Under the proposed rule change, transactions in the following
securities priced $1 or greater would be subject to Maker fees of
$0.0018 per share and Taker rebates of $0.0014 per share: ALU, BAC,
BIL, C, CIM, IAU, LVLT, PVI, SIRI, SNV, UDN, UNG, UUP. Transactions in
the following securities priced $1 or greater would be subject to Maker
fees of $0.0009 per share and Taker rebates of $0.0006 per share: AA,
AMD, BGZ, BRCD, BSX, CSCO, CX, DGZ, DIA, DRYS, DUK, DXD, DZZ, EWJ, FAX,
F, GBG, GLD, INTC, IWM, KEY, MSFT, NBG, NOK, PFE, Q, QQQ, RF, RFMD,
SDS, S, SH, SLV, SPF, SPXU, SPY, SSO, TBT, TLT, TWM, TZA, UCO, USO,
UWM, VXX, XLI, XLP. Transactions in securities priced $1 or greater for
all other securities will remain subject to a $0.0001 fee. The Exchange
is modifying the securities in the groups and customizing transaction
fees by security due to the different liquidity attributes of the
different securities and CBSX's experience in trades involving those
securities.
The Exchange also proposes to re-add a reference to footnote 4,
which defines a ``Qualified Contingent Trade''. This reference was
inadvertently removed in re-organizing the CBSX Fees Schedule in the
previous filing.\4\
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\4\ See footnote 1.
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (``Act''),\5\ in general, and furthers
the objectives of Section 6(b)(4) \6\ 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 is modifying the
securities in the groups and customizing transaction fees by security
due to the different liquidity attributes of the different securities
and CBSX's experience in trades involving those securities.
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\5\ 15 U.S.C. 78f(b).
\6\ 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)
of the Act \7\ and
[[Page 20393]]
subparagraph (f)(2) of Rule 19b-4 \8\ thereunder. 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.
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 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-2011-035 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-2011-035. 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-2011-035 and should be
submitted on or before May 3, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-8622 Filed 4-11-11; 8:45 am]
BILLING CODE 8011-01-P