20390 Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). When filing a proposed 

rule change pursuant to Rule 19b–4(f)(6) under the 

Act, an exchange is required to give the 

Commission written notice of its intent to file the 

proposed rule change, along with a brief description 

and text of the proposed rule change, at least five 

business days prior to the date of filing of the 

proposed rule change, or such shorter time as 

designated by the Commission. The Commission 

notes that the Exchange has satisfied this 

requirement. 

11 17 CFR 240.19b–4(f)(6)(iii). 

12 Id. 

13For the purposes only of waiving the operative 

delay of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

across markets concerning decisions to 

pause trading in a stock when there are 

significant price movements. 

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 

The Exchange neither solicited nor 

received comments on the proposal. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate if 

consistent with the protection of 

investors and the public interest, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 9 and Rule 19b– 

4(f)(6) thereunder.10

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.11 However, Rule 19b– 

4(f)(6) 12 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay. 

The Commission has considered the 

Exchange’s request to waive the 30-day 

operative delay. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest, as it will allow the pilot 

program to continue uninterrupted, 

thereby avoiding the investor confusion 

that could result from a temporary 

interruption in the pilot program.13 For 

this reason, the Commission designates 

the proposed rule change to be operative 

upon filing. 

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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as amended, 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–2011–031 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–2011–031. 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 offices 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–2011–031, and 

should be submitted on or before May 

3, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8620 Filed 4–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64197; File No. SR–CBOE– 

2011–034] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated: Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Extension of 

Waiver of Transaction Fee for Public 

Customer Orders in SPY Options 

Executed in Open Outcry or in the 

Automated Improvement Mechanism 

April 6, 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 March 31, 

2011, 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’’) 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices 20391 

3See Securities Exchange Act Release No. 34– 

62902 (September 14, 2010), 75 FR 57313 

(September 20, 2010), Securities Exchange Act 

Release No. 34–63422 (December 3, 2010), 75 FR 

76770 (December 9, 2010) and CBOE Fees 

Schedule, footnote 8. AIM is an electronic auction 

system that exposes certain orders electronically in 

an auction to provide such orders with the 

opportunity to receive an execution at an improved 

price. AIM is governed by CBOE Rule 6.74A. 

4The Exchange notes that transaction fees are 

also currently waived for customer orders of 99 

contracts or less in ETF (including SPY options), 

ETN and HOLDRs options. See CBOE Fees 

Schedule, footnote 9. 

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

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

7See CBOE Fees Schedule, Section 1. 

8NASDAQ OMX PHLX, Inc. categorizes its equity 

options transaction fees for Specialists, ROTs, 

SQTs, RSQTs and Broker-Dealers as either 

electronic or non-electronic. See NASDAQ OMX 

PHLX Fees Schedule, Equity Options Fees. NYSE 

Amex, Inc. categorizes its options transaction fees 

for Non-NYSE Amex Options Market Makers, 

Broker-Dealers, Professional Customers, Non BD 

Customers and Firms as either electronic or manual. 

See NYSE Amex Options Fees Schedule, Trade 

Related Charges. NYSE Arca, Inc. categorizes its 

options transaction fees for Customers, Firms and 

Broker-Dealers as either electronic or manual. See 

NYSE Arca Options Fees Schedule, Trade Related 

Charges. 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(2). 

proposes to amend its Fees Schedule to 

extend through June 30, 2011, a waiver 

of the transaction fee for public 

customer orders in options on Standard 

& Poor’s Depositary Receipts that are 

executed in open outcry or in the 

Automated Improvement Mechanism. 

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, 

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, Proposed Rule 

Change 

(a) Purpose 

The Exchange currently waives the 

$.18 per contract transaction fee for 

public customer (‘‘C’’ origin code) orders 

in options on Standard & Poor’s 

Depositary Receipts (‘‘SPY options’’) that 

are executed in open outcry or in the 

Automated Improvement Mechanism 

(‘‘AIM’’).3 This fee waiver is due to 

expire on March 31, 2011. The 

Exchange proposes to extend the fee 

waiver through June 30, 2011.4 The 

proposed fee waiver is intended to 

attract more customer volume on the 

Exchange in this product. 

(b) Statutory Basis 

The Exchange believes 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 Trading Permit Holders 

and other persons using its facilities. 

The Exchange believes the proposed 

extension of the fee waiver is equitable 

because the fee waiver would apply 

uniformly to all public customers 

trading SPY options. The Exchange 

believes the proposed extension of the 

fee waiver is reasonable because it 

would continue to provide cost savings 

during the extended waiver period for 

public customers trading SPY options. 

Further, the Exchange believes the 

proposed fee waiver is consistent with 

other fees assessed by the Exchange. 

Specifically, the Exchange assesses 

manually executed broker-dealer orders 

a different rate ($.25 per contract) as 

compared to electronically executed 

broker-dealer orders ($.45 per contract).7

Other exchange fee schedules also 

distinguish between electronically and 

non-electronically executed orders.8

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 9 and subparagraph (f)(2) of 

Rule 19b–4 10 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–2011–034 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. 

All submissions should refer to File 

Number SR–CBOE–2011–034. 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 CBOE. 

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 


srobinson on DSKHWCL6B1PROD with NOTICES
20392 Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices 

11 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. 64027 

(March 3, 2011), 76 FR 13011 (March 9, 2011) (SR– 

CBOE–2011–020). 

4See footnote 1. 

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

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

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

Number SR–CBOE–2011–034 and 

should be submitted on or before 

May 3, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8621 Filed 4–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64199; File No. SR–CBOE– 

2011–035] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend CBSX Maker 

and Taker Transaction Fees and 

Rebates for Transactions in Securities 

Priced $1 or Greater 

April 6, 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 March 31, 

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, 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 

The Exchange proposes to amend 

CBOE Stock Exchange (‘‘CBSX’’) 

transaction fees. 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 changes 

to the CBSX Fees Schedule. On March 

1, 2011, CBOE modified the CBSX 

Maker and Taker transaction fees and 

rebates for transactions in securities 

priced $1 or greater.3 Following that 

change, transactions in securities priced 

$1 or greater 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) 

became subject to Maker fees of $0.0018 

per share and Taker rebates of $0.0014 

per share. 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) became subject to 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 securities became 

subject to a $0.0001 fee. 

The Exchange now proposes to 

change the specific securities in the 

groups. Under the proposed rule 

change, transactions in the following 

securities priced $1 or greater would be 

subject to Maker fees of $0.0018 per 

share and Taker rebates of $0.0014 per 

share: ALU, BAC, BIL, C, CIM, IAU, 

LVLT, PVI, SIRI, SNV, UDN, UNG, UUP. 

Transactions in the following securities 

priced $1 or greater would be subject to 

Maker fees of $0.0009 per share and 

Taker rebates of $0.0006 per share: AA, 

AMD, BGZ, BRCD, BSX, CSCO, CX, 

DGZ, DIA, DRYS, DUK, DXD, DZZ, EWJ, 

FAX, F, GBG, GLD, INTC, IWM, KEY, 

MSFT, NBG, NOK, PFE, Q, QQQ, RF, 

RFMD, SDS, S, SH, SLV, SPF, SPXU, 

SPY, SSO, TBT, TLT, TWM, TZA, UCO, 

USO, UWM, VXX, XLI, XLP. 

Transactions in securities priced $1 or 

greater for all other securities will 

remain subject to a $0.0001 fee. The 

Exchange is modifying the securities in 

the groups and customizing transaction 

fees by security due to the different 

liquidity attributes of the different 

securities and CBSX’s experience in 

trades involving those securities. 

The Exchange also proposes to re-add 

a reference to footnote 4, which defines 

a ‘‘Qualified Contingent Trade’’. This 

reference was inadvertently removed in 

re-organizing the CBSX Fees Schedule 

in the previous filing.4

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 Trading Permit Holders 

and other persons using Exchange 

facilities. The Exchange is modifying 

the securities in the groups and 

customizing transaction fees by security 

due to the different liquidity attributes 

of the different securities and CBSX’s 

experience in trades involving those 

securities. 

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 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) of the Act 7 and 


srobinson on DSKHWCL6B1PROD with NOTICES