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

Federal Register: February 26, 2010 (Volume 75, Number 38)

Notices

Page 9008-9009

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

DOCID:fr26fe10-134

SECURITIES AND EXCHANGE COMMISSION

Release No. 34-61550; File No. SR-CBOE-2010-017

Self-Regulatory Organizations; Chicago Board Options Exchange,

Incorporated; Notice of Filing and Immediate Effectiveness of a

Proposed Rule Change To Amend the CBOE Stock Exchange Fees Schedule To

Increase the Maker Rebate for Transactions in Securities Priced Less

Than $1 to 0.25% of the Dollar Value of the Transaction

February 19, 2010.

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 12, 2010, 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.

\1\ 15 U.S.C. 78s(b)(1).

\2\ 17 CFR 240.19b-4.

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

   The Exchange proposes to amend the Fees Schedule for the CBOE Stock

   Exchange (``CBSX'') to increase the Maker rebate for transactions in securities priced less than $1 to 0.25% of the dollar value of the transaction. 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, at the Commission's Web site (http:// www.sec.gov), and at the Commission's Public Reference Room.

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, of the most significant parts of such statements.

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

      Statutory Basis for, the Proposed Rule Change 1. Purpose

      CBSX proposes to amend its Fees Schedule to increase the Maker rebate for transactions in securities priced less than $1 to 0.25% of the dollar value of the transaction. This increase would serve to attract trading activity to CBSX and match the rebate offered by other stock exchanges, including NASDAQ OMX BX.\3\

      \3\ See NASDAQ OMX BX Price List--Trading & Connectivity.

      2. Statutory Basis

      The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ``Act'') \4\ and the rules and regulations thereunder and, in particular, the requirements of Section 6(b) of the Act.\5\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \6\ requirements that the rules of an exchange be designed to promote just and equitable principles of trade, to prevent fraudulent and manipulative acts, to remove impediments to and to perfect the mechanism for a free and open market and a national market system, and, in general, to protect investors and the public interest. Specifically, increasing the Maker rebate encourages investment and trading activity.

      \4\ 15 U.S.C. 78s(b)(1).

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

      \6\ 15 U.S.C. 78f(b)(5).

   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) \7\ of the Act and 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 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.

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

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

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-2010-017 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-2010-017. 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

   Page 9009

   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-2010-017 and should be submitted on or before March 19, 2010.

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

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

   Florence E. Harmon,

   Deputy Secretary.

   FR Doc. 2010-3945 Filed 2-25-10; 8:45 am

   BILLING CODE 8011-01-P