9064 Federal Register / Vol. 76, No. 32 / Wednesday, February 16, 2011 / Notices 

19 17 CFR 201.700(b)(3). 

20 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 63706 

(January 12, 2011), 76 FR 3184 (January 19, 2011) 

(SR–CBOE–2011–004). 

is consistent with the Exchange Act 

* * * is on the self-regulatory 

organization that proposed the rule 

change’’ and that a ‘‘mere assertion that 

the proposed rule change is consistent 

with those requirements * * * is not 

sufficient.’’ 19 For the reasons articulated 

above, the Commission does not believe 

that FINRA has met that burden in this 

case. 

IV. Conclusion 

For the foregoing reasons, the 

Commission does not find that the 

proposed rule change is consistent with 

the Act and the rules and regulations 

thereunder applicable to a national 

securities association, and, in particular, 

with Section 15A(b)(6) of the Act. 

It is therefore ordered, pursuant to 

section 19(b)(2) of the Act, that the 

proposed rule change (SR–FINRA– 

2010–055) be, and hereby is, 

disapproved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–3416 Filed 2–15–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63876; File No. SR–CBOE– 

2011–013] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Its Fees 

Schedule and Circular Regarding 

Trading Permit Holder Application and 

Other Related Fees 

February 9, 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 

1, 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 Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Chicago Board Options Exchange, 

Incorporated (‘‘CBOE’’ or ‘‘Exchange’’) 

proposes to amend its Fees Schedule 

and circular regarding Trading Permit 

Holder application and other related 

fees (‘‘Trading Permit Fee Circular’’). 

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’s Public Reference 

Room. 

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, the Proposed Rule 

Change 

1. Purpose 

CBOE Rule 2.20 grants the Exchange 

the authority to, from time to time, fix 

the fees and charges payable by Trading 

Permit Holders. CBOE is proposing to 

amend its Fees Schedule and Trading 

Permit Fee Circular effective February 1, 

2011 to: (i) Clarify that the tier 

appointment fees will be assessed, as 

applicable, for open outcry transactions 

and not electronic transactions for those 

Market-Maker Trading Permit Holders 

that do not already have a tier 

appointment; (ii) establish a minimum 

open outcry contract level for 

assessment of a tier appointment fee to 

those Market-Maker Trading Permit 

Holders that do not maintain a tier 

appointment in VIX; and (iii) clarify that 

written notification to terminate a tier 

appointment should be provided to the 

Market Quality Assurance & DPM 

Administration Department. 

CBOE Rule 8.3(e) provides that the 

Exchange may establish one or more 

types of tier appointments. In 

accordance with CBOE Rule 8.3(e), a tier 

appointment is an appointment to trade 

one or more options classes that must be 

held by a Market-Maker to be eligible to 

act as a Market-Maker in the options 

class or options classes subject to that 

appointment. CBOE currently maintains 

tier appointments for Market-Maker 

Trading Permit Holders trading in SPX 

and VIX. 

Section 10(A) of the current Fees 

Schedule provides that the SPX Tier 

Appointment fee will be assessed to any 

Market-Maker Trading Permit Holder 

that either (a) has an SPX Tier 

Appointment at any time during a 

calendar month; or (b) conducts any 

open outcry transactions in SPX or any 

open outcry or electronic transaction in 

SPX Weeklys at any time during a 

calendar month. CBOE amended this 

provision in January 2011 to reflect the 

addition of SPX Weeklys and to 

incorporate any electronic transactions 

that occur in SPX Weeklys.3 However, 

since the only Trading Permit Holders 

that are able to submit quotes 

electronically in SPX Weeklys are those 

Market-Maker Trading Permit Holders 

that have an appointment in SPX 

Weeklys, CBOE is proposing to clarify 

this provision by removing the language 

that would assess the tier appointment 

fee to any Market-Maker Trading Permit 

Holder that conducts any electronic 

transactions in SPX Weeklys. CBOE has 

never intended to assess the tier 

appointment fee to a Trading Permit 

Holder that submits an occasional order 

electronically in SPX Weeklys. 

Similarly, Section 10(A) of the current 

Fees Schedule provides that the VIX 

Tier Appointment fee will be assessed 

to any Market-Maker Trading Permit 

Holder that either (a) has a VIX Tier 

Appointment at any time during a 

calendar month; or (b) conducts any 

transactions in VIX at any time during 

a calendar month. However, since the 

only Market-Maker Trading Permit 

Holders that are able to submit quotes 

electronically in VIX are those MarketMaker Trading Permit Holders that have 

an appointment in VIX, CBOE is 

proposing to clarify this provision by 

removing the language that would 

assess the tier appointment fee to any 

Market-Maker Trading Permit Holder 

that conducts any electronic 

transactions in VIX. CBOE has never 

intended to assess the tier appointment 

fee to a Trading Permit Holder that 

submits an occasional order 

electronically in VIX. CBOE is also 

proposing to add language to the Fees 

Schedule to provide that the VIX Tier 

Appointment fee will be assessed to a 

Market-Maker Trading Permit Holder 

that trades at least 1,000 VIX options 

contracts per month in open outcry. In 

addition, because Market-Maker Trading 

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Federal Register / Vol. 76, No. 32 / Wednesday, February 16, 2011 / Notices 9065 

4This may be distinguished from SPX as all 

Market-Maker Trading Permit Holders trading in 

open outcry in SPX, a Hybrid 3.0 class, are required 

to maintain a separate appointment in SPX in 

accordance with Rule 8.3(c)(iii). 

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

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

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

8 17 CFR 240.19b–4(f)(2). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 63624 

(December 30, 2010), 76 FR 805 (‘‘Notice’’). 

Permit Holders have an appointment to 

trade in open outcry in all options 

classes traded on the Hybrid Trading 

System (including VIX) pursuant to 

Exchange Rule 8.3(c)(ii), CBOE is 

proposing establish a 1,000 contract per 

month minimum to allow for minimum 

activity in VIX without having to pay a 

VIX Tier Appointment fee.4

In addition to the proposed changes to 

the Fees Schedule described above, 

CBOE is proposing to revise its 

regulatory circular that sets forth the 

existing Trading Permit Holder 

application and other related fees. The 

Exchange proposes to revise this 

circular to incorporate the changes to 

Section 10 of the CBOE Fees Schedule 

that are described above. The proposed 

changes to the circular are included as 

Exhibit 2 to the Form 19b–4. 

2. Statutory Basis 

The proposed rule change will treat 

similarly situated Trading Permit 

Holders in the same manner. 

Specifically, CBOE shall assess the same 

base tier appointment fees to all Trading 

Permit Holders based on the type of tier 

appointment requested and based on 

objective standards with respect to open 

outcry trading in the applicable class. 

Accordingly, the Exchange believes that 

the proposed rule change is consistent 

with Section 6(b) of the Act,5 in general, 

and furthers the objectives of Section 

6(b)(4) of the Act 6 in particular, in that 

it is designed to provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among persons 

using its facilities for the reasons 

described above. 

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 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 7 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 

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 rulecomments@sec.gov. Please include File 

Number SR–CBOE–2011–013 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–2011–013. 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 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 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 No. SR–CBOE– 

2011–013 and should be submitted on 

or before March 9, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–3417 Filed 2–15–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63881; File No. SR– 

NYSEArca–2010–120] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Approving a 

Proposed Rule Change To List and 

Trade Shares of the SPDR Nuveen S&P 

High Yield Municipal Bond ETF 

February 9, 2011. 

I. Introduction 

On December 21, 2010, NYSE Arca, 

Inc. (‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

list and trade shares (‘‘Shares’’) of the 

SPDR Nuveen S&P High Yield 

Municipal Bond ETF (‘‘ETF’’ or ‘‘Fund’’) 

under NYSE Arca Equities Rule 5.2(j)(3), 

Commentary .02. The proposed rule 

change was published for comment in 

the Federal Register on January 6, 

2011.3 The Commission received no 

comments on the proposal. This order 

approves the proposed rule change. 

II. Description of the Proposal 

The Exchange proposes to list and 

trade shares (‘‘Shares’’) under NYSE 

Arca Equities Rule 5.2(j)(3), 

Commentary .02, which governs the 

listing and trading of Investment 

Company Units (‘‘Units’’), of the 

following series of the SPDR Series 

mstockstill on DSKH9S0YB1PROD with NOTICES