2934 Federal Register / Vol. 76, No. 11 / Tuesday, January 18, 2011 / Notices 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5OEX is the symbol for options on the S&P 100 

index, XEO is the symbol for European-Style 

options on the S&P 100 index and SPX is the 

symbol for options on the S&P 500 index. Volatility 

indexes include options on the CBOE Volatility 

Index (VIX). 6NASDAQ OMX PHLX Firms are subject to a 

maximum fee of $75,000. See NASDAQ OMX 

PHLX, LLC Fee Schedule, Section II (Equity 

Options Fees). 

7The CTPH Proprietary transaction fee in CBOE 

Proprietary Products (as defined) is currently $.20 

per contract and is proposed to be changed to $.25 

per contract (as described below). 

8Contracts executed in AIM that incurred the 

AIM Execution Fee would be excluded from the 

sliding scale for the same reason that AIM 

Execution Fees would not apply to the MultiplyListed Options Fee Cap; the Exchange believes it is 

appropriate to exclude such contracts from the 

proposed sliding scale because such contracts have 

already received a discounted transaction fee ($.05 

per contract). 

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–Phlx– 

2011–04 and should be submitted on or 

before February 8, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–901 Filed 1–14–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63701; File No. SR–CBOE– 

2010–116] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Related to Exchange 

Fees for Fiscal Year 2011 

January 11, 2011. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on December 

29, 2010, the Chicago Board Options 

Exchange, Incorporated (‘‘Exchange’’ or 

‘‘CBOE’’) 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 CBOE. The Exchange has designated 

the proposal as one establishing or 

changing a due, fee, or other charge 

imposed by CBOE under Section 

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

4(f)(2) thereunder.4 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 

make various changes for Fiscal Year 

2011. 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to amend the CBOE Fees 

Schedule to make various fee changes. 

The proposed changes are the product 

of the Exchange’s annual budget review. 

The fee changes were approved by the 

Exchange’s Board of Directors pursuant 

to CBOE Rule 2.22 and will take effect 

on January 3, 2011. The Exchange 

proposes to amend the following fees: 

Clearing Trading Permit Holder 

Proprietary Sliding Scale: The Clearing 

Trading Permit Holder Proprietary 

Sliding Scale reduces a Clearing Trading 

Permit Holder’s (‘‘CTPH’’) per contract 

transaction fee based on the number of 

contracts the CTPH trades in a month. 

The Exchange proposes to replace the 

existing Clearing Trading Permit Holder 

Proprietary Sliding Scale with: (1) A 

Multiply-Listed Options Fee Cap for 

CTPH Proprietary Orders, and (2) a 

CBOE Proprietary Products Sliding 

Scale for CTPH Proprietary Orders, as 

further described below. 

Multiply-Listed Options Fee Cap: The 

Exchange proposes to cap CTPH 

Proprietary transaction fees in all 

products except options on OEX, XEO, 

SPX, and volatility indexes,5 in the 

aggregate, at $75,000 per month per 

CTPH, except that any AIM Execution 

Fees incurred by a CTPH would not 

count towards the cap (AIM Execution 

Fees are described below). A CTPH 

would continue to pay any AIM 

Execution Fees after reaching the cap in 

a month. AIM Execution Fees would be 

excluded from the proposed fee cap 

because the AIM Execution Fee is a 

discounted fee ($.05 per contract) and 

therefore the Exchange believes those 

fees should not count towards the cap. 

The proposed fee cap is similar to a 

‘‘Firm Related Equity Option Cap’’ in 

place at NASDAQ OMX PHLX, LLC.6

The Exchange believes the proposed fee 

cap would create an incentive for 

CTPHs to continue to send order flow to 

the Exchange. 

CBOE Proprietary Products Sliding 

Scale: The Exchange proposes to adopt 

a CBOE Proprietary Products Sliding 

Scale that would reduce the standard 

CTPH Proprietary transaction fee in 

OEX, XEO, SPX, and volatility indexes 

(‘‘CBOE Proprietary Products’’) 7

provided a CTPH reaches certain 

volume thresholds in multiply-listed 

options on the Exchange in a month as 

described below. 

Specifically, the standard CTPH 

Proprietary transaction fee in CBOE 

Proprietary Products would be reduced 

to the fees shown in the following table 

for CTPHs that execute at least 375,000 

contracts but less than 1,500,000 

contracts in multiply-listed options on 

the Exchange in a month, excluding 

contracts executed in AIM that incurred 

the AIM Execution Fee (the AIM 

Execution Fee is described below).8

Tiers CBOE proprietary product contracts per month Rate 

First ................................................. First 750,000 .......................................................................................... 18 cents 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 76, No. 11 / Tuesday, January 18, 2011 / Notices 2935 

9See CBOE Fees Schedule, Section 1 Index 

Options, and Footnote 14. 

10See CBOE Fees Schedule, Footnote 11. Each 

CTPH would be responsible for notifying the 

Exchange’s TPH Department of all of its affiliations 

so that fees and contracts of the CTPH and its 

affiliates may be aggregated for purposes of the fee 

cap and sliding scale. The Exchange would 

aggregate the fees and trading activity of separate 

CTPHs for the purposes of the fee cap and sliding 

scale if there is at least 75% common ownership 

between the CTPHs as reflected on each CTPH’s 

Form BD, Schedule A. A Clearing Trading Permit 

Holder’s fees and contracts executed pursuant to a 

CMTA agreement (i.e., executed by another clearing 

firm and then transferred to the Clearing Trading 

Permit Holder’s account at the OCC) would be 

aggregated with the Clearing Trading Permit 

Holder’s non-CMTA fees and contracts for purposes 

of the fee cap and sliding scale. 

11AIM 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. 

12See Securities Exchange Act Release No. 59379 

(February 10, 2009), 74 FR 7713 (February 19, 

2009). The existing AIM Execution Fee applies to 

broker-dealer orders (orders with ‘‘B’’ origin code), 

non-Trading Permit Holder market-maker orders 

(orders with ‘‘N’’ origin code), orders from 

specialists in the underlying security (orders with 

‘‘Y’’ origin code) and certain orders with ‘‘F’’ origin 

code (orders from OCC members that are not CBOE 

Trading Permit Holders). See CBOE Fees Schedule, 

Footnote 16. 

13For example, public customer orders (‘‘C’’ origin 

code) pay no transaction fee in equity options and 

QQQQ options and thus such orders would pay no 

transaction fee (would not pay the AIM Execution 

Fee) for such AIM transactions. Transaction fees for 

certain public customer orders in certain ETF, ETN 

and HOLDRs options are currently waived and thus 

such orders would pay no transaction fee (would 

not pay the AIM Execution Fee) for such AIM 

transactions. See CBOE Fees Schedule, Footnotes 8 

and 9. 

14NASDAQ OMX PHLX assesses a fee of $.05 per 

contract to an Initiating Order when the Initiating 

Order executes against a PIXL Order in the PIXL 

Auction. See NASDAQ OMX PHLX, LLC Fee 

Schedule, Section IV, PIXL Pricing. 

Tiers CBOE proprietary product contracts per month Rate 

Second ............................................ Next 250,000 ......................................................................................... 5 cents 

Third ................................................ Above 1,000,000 .................................................................................... 2 cents 

If a CTPH reaches the aforementioned 

volume thresholds in multiply-listed 

options on the Exchange in a month, 

under the proposed sliding scale the 

first 750,000 contracts traded by the 

CTPH in a month in CBOE Proprietary 

Products would be assessed at $.18 per 

contract. The next 250,000 contracts 

traded in a month in CBOE Proprietary 

Products (up to 1,000,000 total contracts 

traded) would be assessed at $.05 per 

contract. All contracts above 1,000,000 

contracts traded in a month in CBOE 

Proprietary Products would be assessed 

at $.02 per contract. 

The standard CTPH Proprietary 

transaction fee in CBOE Proprietary 

Products would be reduced to the fees 

shown in the following table for CTPHs 

that execute 1,500,000 or more contracts 

in multiply-listed options on the 

Exchange in a month, excluding 

contracts executed in AIM that incurred 

the AIM Execution Fee: 

Tiers CBOE proprietary product contracts per month Rate 

First ................................................. First 750,000 .......................................................................................... 15 cents 

Second ............................................ Above 750,000 ....................................................................................... 1 cent 

If a CTPH reaches the 1,500,000 

contract threshold in multiply-listed 

options on the Exchange in a month, 

under the proposed sliding scale the 

first 750,000 contracts traded by the 

CTPH in a month in CBOE Proprietary 

Products would be assessed at $.15 per 

contract. All contracts above 750,000 

contracts traded in a month in CBOE 

Proprietary Products would be assessed 

at $.01 per contract. 

A CTPH that executes less than 

375,000 contracts in multiply-listed 

options on the Exchange in a month 

would not be eligible for the CBOE 

Proprietary Products Sliding Scale and 

would pay the standard CTPH 

Proprietary transaction fee for CBOE 

Proprietary Products. Due to the 

Exchange’s obligation to pay license fees 

on the CBOE Proprietary Products, 

Surcharge Fees 9 applicable to the CBOE 

Proprietary Products would also 

continue to apply in addition to the 

standard CTPH Proprietary transaction 

fee and the rates on the sliding scale. 

As is the case with the existing CTPH 

Proprietary Sliding Scale, the proposed 

Multiply-Listed Options Fee Cap and 

CBOE Proprietary Products Sliding 

Scale would apply to Clearing Trading 

Permit Holder proprietary orders (‘‘F’’ 

origin code), except for orders of joint 

back-office (‘‘JBO’’) participants. The 

Exchange would also aggregate the fees 

and contracts of a Clearing Trading 

Permit Holder and its affiliates in the 

same manner as it does under the 

existing CTPH Proprietary Sliding 

Scale.10

Clearing Trading Permit Holder 

Proprietary Transaction Fee: The 

Exchange currently charges $.20 per 

contract for Clearing Trading Permit 

Holder Proprietary transactions in index 

options (including ETF, ETN and 

HOLDRs options). The Exchange 

proposes to increase the Clearing 

Trading Permit Holder Proprietary 

transaction fee to $.25 per contract for 

OEX, XEO, SPX and volatility indexes. 

This rate would be subject to the 

proposed CBOE Proprietary Products 

Sliding Scale for CTPH Proprietary 

orders. 

AIM Execution Fee: The Exchange 

currently charges an AIM Execution Fee 

of $.20 per contract to certain brokerdealer orders executed in the 

Automated Improvement Mechanism 

(‘‘AIM’’) 11 that were initially entered 

into AIM as the contra party to an 

Agency Order. 12

The Exchange proposes to amend the 

AIM Execution Fee to (i) reduce the fee 

from $.20 per contract to $.05 per 

contract, and (ii) apply the fee to all 

orders (all origin codes) in all products, 

except OEX, XEO, SPX and volatility 

indexes, executed in AIM that were 

initially entered into AIM as the contra 

party to an Agency Order. The proposed 

fee would apply to such executions 

instead of the applicable standard 

transaction fee except if the applicable 

standard transaction fee is lower than 

$.05 per contract, in which case the 

applicable standard transaction fee 

would apply.13 Applicable standard 

transaction fees would apply to AIM 

executions in OEX, XEO, SPX and 

volatility indexes. The proposed AIM 

Execution Fee is similar to the fee 

charged by NASDAQ OMX PHLX to an 

‘‘Initiating Order’’ that is contra-side to 

a ‘‘PIXL Order’’ in the PIXL Auction.14

Floor Brokerage Fees: The Exchange 

currently charges floor brokers 

executing orders in volatility index 

options $.02 per contract and $.01 per 

contract for crossed orders. The 

Exchange proposes to increase these 

mstockstill on DSKH9S0YB1PROD with NOTICES

2936 Federal Register / Vol. 76, No. 11 / Tuesday, January 18, 2011 / Notices 

15The Exchange proposes to delete DXL options 

(options based on 1/10th the value of the Dow Jones 

Industrial Average) from Section 3 of the Fees 

Schedule and delete all other references to DXL 

from the Fees Schedule because DXL options are no 

longer listed on CBOE. 

16A PAR Official is an Exchange employee or 

independent contractor whom the Exchange may 

designate as being responsible for (i) operating the 

PAR workstation in a Designated Primary MarketMaker (‘‘DPM’’) trading crowd with respect to the 

classes of options assigned to him/her; (ii) when 

applicable, maintaining the book with respect to the 

classes of options assigned to him/her; and (iii) 

effecting proper executions of orders placed with 

him/her. The PAR Official may not be affiliated 

with any Trading Permit Holder that is approved to 

act as a Market-Maker. See CBOE Rule 7.12. 

17The Surcharge Fee applies to all non-public 

customer transactions (i.e. CBOE and non-Trading 

Permit Holder market-maker, Clearing Trading 

Permit Holder and broker-dealer), including 

voluntary professionals and professionals. See 

CBOE Fees Schedule, Section 1 (Index Options) and 

Footnote 14. 

18See CBOE Fees Schedule, Section 20. See, also, 

Securities Exchange Act Release No. 62793 (August 

30, 2010), 75 FR 54408 (September 7, 2010). 

19The Exchange also proposes a clarifying change 

to Section 8(b) of the Fees Schedule. The Exchange 

proposes to change ‘‘Arbitrage Phone Positions’’ to 

‘‘SPX Arbitrage Phone Positions’’ to clarify that this 

fee applies to booths that are adjacent to or near the 

SPX pit. 

fees to $.03 per contract and $.015 per 

contract for crossed orders.15

PAR Official Fees: The Exchange 

proposes to establish PAR Official 

Fees.16 These fees would apply to all 

orders executed by a PAR Official, 

except for customer orders (‘‘C’’ origin 

code) that are not directly routed to the 

trading floor (an order that is directly 

routed to the trading floor is directed to 

a PAR Official for manual handling by 

use of a field on the order ticket). Such 

orders would be charged $.02 per 

contract and, like floor brokerage fees, a 

discounted rate of $.01 per contract 

would apply for crossed orders. The 

purpose of the proposed fee is to help 

offset the Exchange’s costs of providing 

PAR Official services (e.g., salaries, etc). 

As noted above, the Exchange would 

not charge the fee to public customer 

orders except for any customer order 

that is directly routed to the trading 

floor. The Exchange believes it is 

reasonable to charge the fee to a 

customer that specifically requests order 

handling by a PAR Official. PAR Official 

Fees would be charged to the order 

originating firm unless the originating 

firm cannot be identified, in which case 

the fees would be charged to the 

executing firm on the trade record. 

Volatility Index Surcharge Fee: The 

Exchange currently charges a surcharge 

fee of $.08 per contract on all nonpublic customer 17 transactions in 

volatility index options. The Exchange 

proposes to increase the surcharge fee 

for volatility index options to $.10 per 

contract. The surcharge fee is assessed 

to help the Exchange recoup license fees 

the Exchange pays to index licensors for 

the right to list volatility index options 

for trading and is similar to surcharge 

fees charged by other exchanges. 

Linkage Fee: Currently, when the 

Exchange receives a customer order that 

has an original size of 1,000 or more 

contracts that is routed, in whole or in 

part, to one or more exchanges in 

connection with the Options Order 

Protection and Locked/Crossed Market 

Plan, the Exchange charges $.35 per 

contract executed on another exchange 

in addition to the customary CBOE 

execution charges.18 The Exchange 

proposes to reduce the qualifying 

customer order size from 1,000 or more 

contracts to 500 or more contracts. The 

purpose of this Linkage Fee is to pass 

through some of the transaction costs 

incurred by the Exchange associated 

with the execution of customer orders at 

away markets. The Exchange believes it 

is appropriate to pass through some of 

these costs to these larger non-brokerdealer customer orders that are more 

akin to broker-dealer orders. 

Facility Fees: The Exchange proposes 

to amend the following facility fees in 

Section 8 of the Fees Schedule: 

Booth Fees: The Exchange currently 

charges $185 per month for use of a 

perimeter booth on the trading floor. 

The Exchange proposes to increase this 

fee to $195 per month. The fee for an 

OEX booth is proposed to be increased 

from $330 per month to $550 per 

month, equaling the rate charged for 

DJX and MNX booths. The fee for VIX 

booths is also proposed to be increased 

to $550 per month due to high demand 

for booth space for VIX options, which 

recently moved into a larger pit on the 

trading floor. The $550 per month fee 

for booths by the OEX book is proposed 

to be eliminated because there are no 

longer such booths due to the relocation 

of the OEX pit.19

Forms and Form Storage Fees: The 

Exchange currently charges a fee of $10 

per month for cabinet space at the 

Exchange used by trading permit 

holders to store paper forms such as 

trade order forms. The Exchange 

proposes to increase this fee to $11 per 

month. The Exchange has provided 

trading permit holders with boxes of 5- 

part and 2-part paper trade order forms 

for many years at no charge. The 

Exchange proposes to charge trading 

permit holders $50 per box to recoup 

the cost of making these forms available 

to trading permit holders. 

Access Badge Fees: The Exchange 

proposes to increase certain fees for 

access badges. These fees have not 

changed in approximately ten years. 

The monthly fees for access badges 

would increase from $110 to $120 for 

Floor Managers and from $55 to $60 for 

clerks. In addition, the Exchange 

proposes to amend the following 

charges per occurrence: (1) The fee for 

issuance of a badge would increase from 

$15 to $16.50, (2) the fee to replace a 

badge would increase from $15 to 

$16.50, (3) the fee for failure to return 

an access badge would increase from 

$75 to $82.50, (4) the fee for a temporary 

badge for a non-trading permit holder 

would increase from $10 to $11, and (5) 

the fee for a temporary badge for a 

trading permit holder would increase 

from $10 to $11 (the first three badges 

per year are free of charge). 

Coat Room Services Fee: The 

Exchange charges trading permit 

holders $15 per month for coat room 

services. The Exchange proposes to 

increase the fee to $25 per month to 

help the Exchange recoup increased 

costs for making this service available to 

trading permit holders. 

Telecommunication Fees: The 

Exchange proposes to increase certain 

telecommunication fees. These fees 

have not changed in over seven years. 

The Exchange proposes the following 

changes to Section 8(F) of the Fees 

Schedule: 

Monthly fees: 

a. Exchangefone Maintenance— 

Increase from $52.00 to $57.00. 

b. Single Line Maintenance—Increase 

from $10.50 t0 $11.50. 

c. PhoneMail with Outcall & Pager— 

Increase from $17.00 to $18.75. 

d. Intra-Floor Lines—Increase from 

$52.50 to $57.75. 

e. Voice Circuits—Increase from 

$14.40 to $16.00. 

f. Data Circuits at Local Carrier 

(entrance)—Increase from $14.40 to 

$16.00. 

g. Lines Between Local Carrier and 

Communications Center—Increase from 

$11.60 to $12.75. 

h. Lines Direct From Local Carrier to 

Trading Floor—Increase from $11.60 to 

$12.75. 

i. Lines Between Communications 

Center and Trading Floor—Increase 

from $11.60 to $12.75. 

Fees for installation, relocation and 

removal of lines: 

j. Data Circuits at In-House Frame: 

i. Lines Between Local Carrier and 

Communications Center—The 

installation fee would increase from 

$200 to $550 and would include the 

removal fee. The existing removal fee of 

$100 would be eliminated. 

ii. Lines Direct From Local Carrier to 

Trading Floor—The installation fee 

would increase from $350 to $725 and 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 76, No. 11 / Tuesday, January 18, 2011 / Notices 2937 

20The Exchange also proposes to amend Section 

17 of the Fees Schedule to delete a reference to an 

effective date of April 1, 2007. 

21 15 U.S.C. 78f(b). 

22 15 U.S.C. 78f(b)(4). 

would include the removal fee. The 

existing removal fee of $200 would be 

eliminated. The relocation fee of $425 

would be increased to $625. 

iii. Lines Between Communications 

Center and Trading Floor—The 

installation fee would increase from 

$350 to $725 and would include the 

removal fee. The existing removal fee of 

$200 would be eliminated. The 

relocation fee of $425 would be 

increased to $625. 

iv. [sic] 

The Exchange currently charges a 

$350 installation fee for electrician 

services connected to the installation of 

a tether on the trading floor for a 

market-maker hand held terminal. The 

Exchange proposes to increase this fee 

to $450. The Exchange proposes to 

charge $900 for installation of a tether 

in index pits due to the higher costs 

associated with installing tethers in 

those larger pits. The fee for relocation 

of a tether would remain unchanged at 

$200 regardless of location. 

Trading Floor Terminal Rental Fees: 

The Exchange proposes to increase fees 

for rental of trading floor terminals to 

help the Exchange offset increased 

costs. The Exchange currently charges 

$200 per month per login ID for use of 

a Floor Broker Workstation (FBW). The 

FBW is a system for electronically 

entering and managing orders on the 

Exchange floor. The Exchange proposes 

to increase this fee to $225 per month 

per login ID. 

The Exchange charges trading permit 

holders $35 per month for Satellite TV 

on the trading floor. The Exchange 

proposes to increase this fee to $50 per 

month. 

The Exchange charges $100 per 

month for use of a PAR Workstation. 

PAR Workstations are touch screen 

terminals designed to allow electronic 

representation of orders routed to it. The 

Exchange proposes to increase this fee 

to $125 per month. 

Co-Location Fees: The Exchange 

provides cabinet space in CBOE’s 

building for trading permit holders to 

place their network and quoting engine 

hardware, to help trading permit 

holders meet their need for high 

performance processing and low 

latency. Trading permit holders also 

receive power, cooling, security and 

assistance with installation and 

connection of the equipment to the 

Exchange’s servers. For these services, 

the Exchange currently charges trading 

permit holders a co-location fee of $10 

per ‘‘U’’ (1.75 inches) of shelf space and 

$20 per U for sponsored users, in 

increments of 4 U (7 inches). To bring 

its fees more in line with the current 

market for co-location services, the 

Exchange proposes to increase these 

fees to $20 per U and $40 per U for 

Sponsored Users. 

DPM’s and Firm Designated 

Examining Authority Fee: The Exchange 

charges DPMs and firms for which the 

Exchange is the Designated Examining 

Authority (‘‘DEA’’), a fee of $.40 per 

$1,000 of gross revenue as reported on 

quarterly FOCUS reports filed by such 

trading permit holders. The fee is 

subject to a minimum fee of $1,000 per 

month for Clearing Trading Permit 

Holders and $275 for non-Clearing 

Trading Permit Holders. The Exchange 

proposes to increase this fee, which has 

not changed in many years, from $.40 

per $1,000 of gross revenue to $.50 per 

$1,000 of gross revenue. 

CBOEdirect Connectivity Charges: 

The Exchange proposes to increase three 

monthly fees related to connectivity to 

CBOEdirect to bring the fees more in 

line with the current market for similar 

services. The Exchange charges trading 

permit holders a $40 per month 

Network Access Port Fee ($80 per 

month for Sponsored Users) and a $40 

per month FIX Port Fee ($80 per month 

for Sponsored Users) for network 

hardware the Exchange provides to 

trading permit holders for access to the 

Exchange’s network. The Exchange 

proposes to increase each fee to $80 per 

month ($160 per month for Sponsored 

Users). The Exchange charges trading 

permit holders a $40 per month CMI 

Client Application Server Fee ($80 per 

month for Sponsored Users) for server 

hardware that enables trading permit 

holders to connect to CBOE’s two 

Application Protocol Interfaces: CMI 

(CBOE Market Interface) and Financial 

Information Exchange (FIX). The 

Exchange proposes to increase this fee 

to $80 per month ($160 per month for 

Sponsored Users). 

Hybrid Fees: The Exchange provides 

certain hardware (e.g., servers) and 

related maintenance services to third 

party vendors that provide trading 

permit holders with quoting software 

used by trading permit holders to trade 

on the Hybrid Trading System. The 

Exchange charges trading permit 

holders a Quoting Infrastructure User 

Fee of $150 per month to help the 

Exchange recover its costs in facilitating 

trading permit holder’s receipt of these 

third party services. The Exchange 

proposes to increase this fee to $200 per 

month to help offset increased costs. 

TickerXpress (‘‘TX’’) is an Exchange 

service that supplies market data to 

Exchange market-makers trading on the 

Hybrid Trading System. Currently, the 

Exchange charges trading permit 

holders receiving ‘‘enhanced’’ TX market 

data a fee of $300 per month. Enhanced 

market data is data that has been 

processed so that it can be used by 

market-makers utilizing quoting 

software. The Exchange proposes to 

increase this fee to $350 per month to 

help offset the Exchange’s increased 

costs in providing this data to Exchange 

trading permit holders.20

Miscellaneous Changes: The 

Exchange proposes the following 

housekeeping changes to its Fees 

Schedule. The Exchange proposes to 

amend footnotes 8 and 9 of the Fees 

Schedule to delete references to the 

effective dates of two fee waiver 

programs described therein that are still 

ongoing. The Exchange proposes to 

amend Section 1 and footnote 8 of the 

Fees Schedule to change references to 

‘‘SPDR’’ to ‘‘SPY’’. The reason for this 

change is to clarify that Section 1 and 

footnote 8 apply to options on the SPDR 

S&P 500 ETF Trust (ticker symbol SPY) 

and not to other options listed on the 

Exchange that include ‘‘SPDR’’ in their 

name (e.g., options on SPDR Gold 

Shares). The Exchange proposes to 

amend Section 15 of the Fees Schedule 

to delete a sentence relating to the 

Market Data Infrastructure Fee that is 

now outdated. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Securities Exchange Act of 

1934 (‘‘Act’’),21 in general, and furthers 

the objectives of Section 6(b)(4) 22 of the 

Act in particular, in that it is designed 

to provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among its trading permit holders and 

other persons using its facilities. The 

Exchange believes the proposed 

Multiply-Listed Options Fee Cap and 

CBOE Proprietary Products Sliding 

Scale for CTPH Proprietary orders and 

AIM Execution Fee would allow the 

Exchange to remain competitive with 

similar programs at other exchanges. 

The Exchange believes the other 

proposed fee changes are equitable and 

reasonable in that in general they are 

intended to help the Exchange recover 

its costs of providing various products 

and services to trading permit holders 

and other persons using its facilities. 

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 

mstockstill on DSKH9S0YB1PROD with NOTICES

2938 Federal Register / Vol. 76, No. 11 / Tuesday, January 18, 2011 / Notices 

23 15 U.S.C. 78s(b)(3)(A). 

24 17 CFR 240.19b–4(f)(2). 

25 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 23 and subparagraph (f)(2) of 

Rule 19b–4 24 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–2010–116 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–2010–116. 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 

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 

Number SR–CBOE–2010–116 and 

should be submitted on or before 

February 8, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–919 Filed 1–14–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63694; File No. SR–BX– 

2011–001] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

BOX Trading Rules Regarding 

Voluntary Withdrawal From Trading 

Options Classes in Which They Are 

Appointed 

January 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 January 7, 

2011, NASDAQ OMX BX, Inc. (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 the self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule from 

interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Chapter VI, Section 4 (Appointment of 

Market Makers) of the Rules of the 

Boston Options Exchange Group, LLC 

(‘‘BOX’’) to permit the Exchange and 

Market Makers greater flexibility in 

handling Market Makers’ voluntary 

withdrawal from trading options classes 

in which they are appointed. The text of 

the proposed rule change is available 

from the principal office of the 

Exchange, at the Commission’s Public 

Reference Room and also on the 

Exchange’s Internet Web site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 

The Exchange proposes to amend 

Chapter VI, Section 4(f) of the BOX 

Rules (Appointment of Market Makers) 

to eliminate the requirement that a 

Market Maker provide three business 

days’ notice if they wish to withdraw 

from trading an options class in which 

they are appointed. The proposed rule 

change will provide that Boston Options 

Exchange Regulation, LLC (‘‘BOXR’’) (i) 

may determine an appropriate 

minimum amount of prior notice 

required for Market Makers to withdraw 

from trading; and (ii) has the authority 

to place other conditions on Market 

Maker withdrawal as may be 

appropriate in the interests of 

maintaining fair and orderly markets. 

Chapter VI, Section 4(f) of the BOX 

Trading Rules currently provides that a 

Market Maker may voluntarily 

withdraw from trading an options class 

that is within their appointment by 

providing BOX with three business 

days’ written notice of such withdrawal. 

The proposed rule change will eliminate 

mstockstill on DSKH9S0YB1PROD with NOTICES