Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.

Federal Register: October 28, 2009 (Volume 74, Number 207)

Notices

Page 55597-55598

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DOCID:fr28oc09-125

SECURITIES AND EXCHANGE COMMISSION

Release No. 34-60858; File No. SR-CBOE-2009-077

Self-Regulatory Organizations; Chicago Board Options Exchange,

Incorporated; Notice of Filing and Immediate Effectiveness of a

Proposed Rule Change To Amend the Chicago Board Options Exchange Stock

Exchange Fees Schedule Related to Stock Component of Stock-Option Cross

Trade

October 21, 2009.

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 October 16, 2009, 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.

CBOE has designated this proposal as one establishing or changing a due, fee, or other charge applicable only to a member under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal effective upon filing with the Commission.

The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.

\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).

1. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

   The Exchange proposes to amend its CBOE Stock Exchange (``CBSX'')

   Fees Schedule. 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.

2. 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,

   Page 55598

   of the most significant parts of such statements.

   1. Self-Regulatory Organization's Statement of the Purpose of, and

      Statutory Basis for, the Proposed Rule Change 1. Purpose

      CBSX proposes to make fee modifications in order to better attract business to the Exchange. Specifically, CBSX proposes to change to

      $0.0010 per share (from $0.0025 per share) its fee for the stock component of a stock-option cross trade, and to adjust the maximum rate to $15 per trade (from $50 per trade). These changes are to take effect as of October 19, 2009. 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 members and other persons using its facilities.

      \5\ 15 U.S.C. 78f(b).

      \6\ 15 U.S.C. 78f(b)(4).

   2. 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.

   3. 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.

3. 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 \7\ and subparagraph (f)(2) of Rule 19b-4 thereunder.\8\

   \7\ 15 U.S.C. 78s(b)(3)(A)(ii).

   \8\ 17 CFR 240.19b-4(f)(2).

   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.

4. 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 rule-comments@sec.gov. Please include

   File Number SR-CBOE-2009-077 in 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-2009-077. 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 inspection and copying 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-2009-077 and should be submitted on or before November 18, 2009.

   For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\

   \9\ 17 CFR 200.30-3(a)(12).

   Elizabeth M. Murphy,

   Secretary.

   FR Doc. E9-25831 Filed 10-27-09; 8:45 am

   BILLING CODE 8011-01-P