Federal Register / Vol. 76, No. 46 / Wednesday, March 9, 2011 / Notices 13011 

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

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78f(b). 

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

5 15 U.S.C. 78s(b)(3)(A). 

6 17 CFR 240.19b–4(f)(2). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64027; File No. SR–CBOE– 

2011–020] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Modify the Fees 

Schedule for the CBOE Stock 

Exchange 

March 3, 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 

25, 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 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to modify the 

Fees Schedule for its CBOE Stock 

Exchange (‘‘CBSX’’). 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 several 

changes to the CBSX Fees Schedule. 

The Exchange proposes to modify CBSX 

Maker and Taker transaction fees and 

rebates for transactions in securities 

priced $1 or greater. Maker fees and 

Taker rebates for transactions 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) will remain unchanged. 

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) will incur 

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 stocks will be 

assessed a $0.0001 fee. The Exchange is 

customizing transaction by security 

based on CBSX’s experience in trades 

involving those securities. 

The Exchange also proposes to modify 

transaction fees for cross trades that are 

the stock components of Qualified 

Contingent Trades. The Exchange 

proposes to eliminate the minimum fee 

of $1 per trade and raise the maximum 

fee from $15 to $20 in order to 

encourage more submissions of such 

cross trades on CBSX while recouping 

more fees to cover the Exchange’s costs 

regarding such trades. 

CBSX also proposes to lower the 

perimeter booth fee for CBSX Trading 

Permit Holders that are not CBSX 

Market-Makers who use booth space on 

the CBOE trading floor from $350 per 

month to $195 per month to make such 

fee consistent with the equivalent CBOE 

fee. 

The Exchange also proposes to raise 

to trading an average of 100,000 shares 

per day over a calendar month the 

threshold by which CBSX Trading 

Permit Holders may avoid being subject 

to the Inactivity Fee. This proposed 

change will ensure that CBSX Trading 

Permit Holders are sufficiently active on 

CBSX. 

Finally, the Exchange proposes to 

reorganize the notes and footnotes in 

Section 2 to eliminate any possible 

confusion between the two. All of the 

fee changes described in this proposed 

rule filing will take effect on March 1, 

2011. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),3 in general, and furthers the 

objectives of Section 6(b)(4) 4 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 believes that 

the proposed changes to the transaction 

fees will allow CBSX to remain 

competitive with other exchanges. The 

elimination of the minimum transaction 

fee for cross trades that are the stock 

components of Qualified Contingent 

Trades also allows the Exchange to 

attract more transactions to the 

Exchange, while the increase of the 

maximum fee for such cross trades will 

provide for a more equitable allocation 

of fees. Reducing the CBSX perimeter 

booth fee to the same amount charged 

on CBOE also provides for a more 

equitable allocation of fees. Raising the 

threshold by which CBSX Trading 

Permit Holders may avoid being subject 

to the Inactivity Fee also provides for a 

more equitable allocation of fees by 

requiring that CBSX Trading Permit 

Holders are sufficiently active to cover 

the Exchange’s costs of regulating the 

activity of such CBSX Trading Permit 

Holders. 

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 foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 5 and paragraph (f)(2) of Rule 

19b-4 thereunder.6 At any time within 

60 days of the filing of the proposed rule 


Emcdonald on DSK2BSOYB1PROD with NOTICES
13012 Federal Register / Vol. 76, No. 46 / Wednesday, March 9, 2011 / Notices 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Changes are marked to the rule text that appears 

in the electronic manual of Nasdaq [sic] found at 

http://nasdaqomxbx.cchwallstreet.com. 4 15 U.S.C. 78f(b)(10). 

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–2011–020 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–2011–020. 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– 

2011–020 and should be submitted on 

or before March 30, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–5377 Filed 3–8–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64023; File No. SR–BX– 

2011–012] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Order Granting Accelerated 

Approval of Proposed Rule Change To 

Prohibit Members From Voting 

Uninstructed Shares on Certain 

Matters 

March 3, 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 

18, 2011, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’ or ‘‘BX’’) 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 and is 

approving the proposed rule change on 

an accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The Exchange proposes to modify 

Rule 2251 to prohibit members from 

voting on the election of a member of 

the board of directors of an issuer 

(except for a vote with respect to the 

uncontested election of a member of the 

board of directors of any investment 

company registered under the 

Investment Company Act of 1940), 

executive compensation, or any other 

significant matter, as determined by the 

Commission, unless instructed by the 

beneficial owner of the shares. The text 

of the proposed rule change is below. 

Proposed new language is in italics; 

proposed deletions are in brackets.3

2251. Forwarding of Proxy and Other 

Issuer-Related Materials 

(a)–(c) No change. 

(d) Notwithstanding the foregoing, an 

Exchange Member that is not the 

beneficial owner of a security registered 

under Section 12 of the Act is prohibited 

from granting a proxy to vote the 

security in connection with a 

shareholder vote on the election of a 

member of the board of directors of an 

issuer (except for a vote with respect to 

the uncontested election of a member of 

the board of directors of any investment 

company registered under the 

Investment Company Act of 1940), 

executive compensation, or any other 

significant matter, as determined by the 

Commission, by rule, unless the 

beneficial owner of the security has 

instructed the member to vote the proxy 

in accordance with the voting 

instructions of the beneficial owner. 

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 

Exchange 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. The 

Exchange 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 

Section 957 of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act (the ‘‘Dodd-Frank Act’’) adopted 

new Section 6(b)(10) of the Securities 

Exchange Act.4 This new provision 

requires all national securities 

exchanges to adopt rules that prohibit 

their members from voting on the 

election of a member of the board of 

directors of an issuer (except for a vote 

with respect to the uncontested election 

of a member of the board of directors of 

any investment company registered 

under the Investment Company Act of 

1940), executive compensation, or any 

other significant matter, as determined 

by the Commission, unless the member 

receives voting instructions from the 

beneficial owner of the shares. 


Emcdonald on DSK2BSOYB1PROD with NOTICES