Federal Register / Vol. 76, No. 33 / Thursday, February 17, 2011 / Notices 9383 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 56792 

(November 15, 2007), 72 FR 65776 (SR–CBOE– 

2006–99). 

4See Securities Exchange Act Release No. 56852 

(November 28, 2007), 72 FR 68226 (December 4, 

2007) (SR–CBOE–2007–139). 

5See CBOE Fees Schedule, Footnote 5 [sic]. 

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

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(2). 

inventory has been developed in 

accordance with guidance issued on 

November 5, 2010 by the Office of 

Management and Budget’s Office of 

Federal Procurement Policy (OFPP). 

OFPP’s guidance is available at http://

www.whitehouse.gov/sites/default/files/

omb/procurement/memo/servicecontract-inventories-guidance11052010.pdf. The Securities and 

Exchange Commission has posted its 

inventory and a summary of the 

inventory on the Securities and 

Exchange Commission’s Open 

Government homepage at the following 

link http://sec.gov/about/offices/oacq/

secfy2010servicecontract

inventories.pdf. 

FOR FURTHER INFORMATION CONTACT: 

Questions regarding the service contract 

inventory should be directed to Judith 

Blake, Chief, Policy, Oversight, and 

Acquisition Programs Branch at 202– 

551–8071 or blakej@sec.gov. 

February 14, 2011. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–3644 Filed 2–16–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63887; File No. SR–CBOE– 

2011–015] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to the CFLEX 

Surcharge Fee Cap 

February 10, 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, Chicago Board Options 

Exchange, Incorporated (the ‘‘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. 

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 to 

extend the CFLEX Surcharge Fee cap to 

all orders. The text of the proposed rule 

change is available on the Exchange’s 

Web site (http://www.cboe.org/legal), at 

the Exchange’s principal office, 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 

On November 15, 2007, the 

Commission approved Exchange rules 

that provide for the trading of Flexible 

Exchange (‘‘FLEX’’) options on the 

Exchange’s new FLEX Hybrid Trading 

System (‘‘CFLEX’’).3 CFLEX is a trading 

platform that incorporates both open 

outcry and electronic trading 

functionality. On November 20, 2007, 

the Exchange filed an amendment to the 

Exchange Fees Schedule to establish a 

$.10 per contract surcharge fee on all 

orders (i.e., applicable to all origin 

codes) executed electronically on the 

CFLEX system (‘‘CFLEX Surcharge 

Fee’’).4 Pursuant to that filing, the 

CFLEX Surcharge Fee is currently 

charged up to the first 2,500 contracts 

per trade for public customers.5

The proposed amendment to the Fees 

Schedule would extend the cap on the 

CFLEX Surcharge Fee to all orders. The 

CFLEX Surcharge Fee would be charged 

up to the first 2,500 contracts per trade, 

regardless of the order type. The 

purpose of the proposed fee change is to 

encourage more use of the CFLEX 

system. 

The proposed change is scheduled to 

take effect on February 1, 2011. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Securities Exchange Act of 

1934 (‘‘Act’’),6 in general, and furthers 

the objectives of Section 6(b)(4) 7 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 its facilities. 

The proposed rule change, by extending 

the cap on the CFLEX Surcharge Fee to 

all order types, would provide for lower 

fees for all market participants trading 

on the CFLEX system. 

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 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 8 and subparagraph (f)(2) of 

Rule 19b–4 9 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 


jlentini on DSKJ8SOYB1PROD with NOTICES
9384 Federal Register / Vol. 76, No. 33 / Thursday, February 17, 2011 / Notices 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3For a detailed description of the Investor 

Support Program, see Securities Exchange Act 

Release No. 63270 (November 8, 2010), 75 FR 69489 

(November 12, 2010)(NASDAQ–2010–141) (notice 

of filing and immediate effectiveness)(the ‘‘ISP 

Filing’’). See also Securities Exchange Act Release 

Nos. 63414 (December 2, 2010), 75 FR 76505 

(December 8, 2010)(NASDAQ–2010–153) (notice of 

filing and immediate effectiveness); and 63628 

(January 3, 2011), 76 FR 1201 (January 7, 

2011)(NASDAQ–2010–154) (notice of filing and 

immediate effectiveness). 

4The Commission has recently expressed its 

concern that a significant percentage of the orders 

of individual investors are executed at over the 

counter (‘‘OTC’’) markets, that is, at off-exchange 

markets; and that a significant percentage of the 

orders of institutional investors are executed in 

dark pools. Securities Exchange Act Release No. 

61358 (January 14, 2010), 75 FR 3594 (January 21, 

2010) (Concept Release on Equity Market Structure, 

‘‘Concept Release’’). In the Concept Release, the 

Commission has recognized the strong policy 

preference under the Act in favor of price 

transparency and displayed markets. The 

Commission published the Concept Release to 

invite public comment on a wide range of market 

structure issues, including high frequency trading 

and un-displayed, or ‘‘dark,’’ liquidity. See also 

Mary L. Schapiro, Strengthening Our Equity Market 

Structure (Speech at the Economic Club of New 

York, Sept. 7, 2010) (‘‘Schapiro Speech,’’ available 

on the Commission Web site) (comments of 

Commission Chairman on what she viewed as a 

troubling trend of reduced participation in the 

equity markets by individual investors, and that 

nearly 30 percent of volume in U.S.-listed equities 

is executed in venues that do not display their 

liquidity or make it generally available to the 

public). 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–CBOE–2011–015 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–2011–015. 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 the 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– 

2011–015 and should be submitted on 

or before March 10, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–3554 Filed 2–16–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63891; File No. SR– 

NASDAQ–2011–022] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Enhance 

the Investor Support Program 

February 11, 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 

2, 2011, The NASDAQ Stock Market 

LLC (‘‘NASDAQ’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by NASDAQ. 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 

NASDAQ proposes changes to the fee 

provisions of Rule 7014 (Investor 

Support Program) to increase the rebate 

for adding targeted liquidity within the 

Investor Support Program. NASDAQ has 

designated this fee change proposal 

effective and operative upon filing. 

The text of the proposed rule change 

is available at http:// 

nasdaq.cchwallstreet.com, at 

NASDAQ’s principal office, 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, 

NASDAQ 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. 

NASDAQ 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange is proposing changes to 

the fee provisions of Rule 7014 to 

increase the rebate for adding targeted 

liquidity within the Investor Support 

Program. 

The Exchange established an Investor 

Support Program (‘‘ISP’’) that enables 

NASDAQ members to earn a monthly 

fee credit for providing additional 

liquidity to NASDAQ and increasing the 

NASDAQ-traded volume of what are 

generally considered to be retail and 

institutional investor orders in 

exchange-traded securities (‘‘targeted 

liquidity’’).3 The goal of the ISP is to 

incentivize members to provide such 

targeted liquidity to the NASDAQ 

Market Center.4 The Exchange noted in 

the ISP Filing that maintaining and 

increasing the proportion of orders in 

exchange-listed securities executed on a 

registered exchange (rather than relying 

on any of the available off-exchange 

execution methods) would help raise 

investors’ confidence in the fairness of 

their transactions and would benefit all 

investors by deepening NASDAQ’s 

liquidity pool, supporting the quality of 

price discovery, promoting market 


jlentini on DSKJ8SOYB1PROD with NOTICES