Federal Register / Vol. 76, No. 77 / Thursday, April 21, 2011 / Notices 22427 

14 15 U.S.C. 78s(b)(3)(A)(ii). 

15 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. 62139 

(May 19, 2010), 75 FR 29597 (May 26, 2010) 

(approving SR–CBOE–2010–018). 

4This fee is assessed to help the Exchange recoup 

license fees the Exchange pays to the different 

index licensors in order to list options on the 

respective indexes. 

5See Footnote 6 of the Fees Schedule. In 2007, 

the Exchange amended its Fees Schedule to 

broaden the application of existing transaction fees 

for VIX options to options on all volatility indexes 

calculated by CBOE. At that time, the Exchange 

replaced all references to ‘‘VIX’’ in its Fees Schedule 

with ‘‘VOLATILITY INDEXES.’’ The reference to 

‘‘VIX’’ in Footnote 6 was inadvertently omitted in 

that filing. See Securities Exchange Act Release No. 

56660 (October 15, 2007), 72 FR 59315 (October 19, 

2007). Accordingly, the Exchange is proposing to 

make a technical change to Footnote 6 to change the 

reference from ‘‘VIX’’ to ‘‘VOLATILITY INDEXES.’’ 

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)(ii) of the Act.14 At any time 

within 60 days of the filing of such 

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 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 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 

No. SR–ISE–2011–18 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–ISE–2011–18. 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 Commissions 

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. Copies of such filing 

also will be available for inspection and 

copying at the principal office of the 

ISE. 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–ISE–2011–18 and should be 

submitted by May 12, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–9623 Filed 4–20–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64304; File No. SR–CBOE– 

2011–028] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Establish Transaction 

Fees for CBOE Gold ETF Volatility 

Index Options 

April 15, 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 April 8, 

2011, the Chicago Board Options 

Exchange, Incorporated (the ‘‘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 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 

CBOE proposes to amend its Fees 

Schedule to establish fees for 

transactions in CBOE Gold ETF 

Volatility Index (‘‘GVZ’’) options. 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, 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 

The Exchange received approval to 

list and trade options on the CBOE Gold 

ETF Volatility Index (‘‘GVZ’’), which is 

an up-to-the-minute market estimate of 

the expected volatility of the SPDR Gold 

Trust (‘‘GLD’’) calculated by using realtime bid/ask quotes of CBOE listed GLD 

options.3 GVZ uses nearby and second 

nearby options with at least 8 days left 

to expiration and then weights them to 

yield a constant, 30-day measure of the 

expected (implied) volatility. The 

Exchange will begin listing GVZ options 

on April 12, 2011. 

The purpose of this rule change is to 

clarify that the existing transaction fees 

for ‘‘Volatility Indexes’’ shall apply for 

transactions in GVZ options, except that 

the existing Surcharge Fee (currently 

$.10 per contract for Volatility Index 

options) will not apply to GVZ options.4

In addition, the Exchange’s marketing 

fee 5 shall not apply to GVZ options. 

For reference, the existing Volatility 

Index transactions fees that will apply 

to GVZ options are as follows: 

• $0.40 per contract for customer 

transactions; 


emcdonald on DSK2BSOYB1PROD with NOTICES
22428 Federal Register / Vol. 76, No. 77 / Thursday, April 21, 2011 / Notices 

6This is the standard rate that is subject to the 

Liquidity Provider Sliding Scale as set forth in 

Footnote 10 to the Fees Schedule. 

7This is the standard rate that is subject to the 

CBOE Proprietary Products Sliding Scale for 

Clearing Trading Permit Holder Proprietary Orders 

as set forth in Footnote 11 to the Fees Schedule. 

8See Section 3 (Floor Brokerage and Par Official 

Fees) to the Fee Schedule and Footnotes 1, 5 and 

15 of the Fees Schedule. 

9 Id. 

10 Id. 

11 Id. 

12See existing footnote 14 to Fees Schedule, 

which shall apply to the proposed new Product 

Research & Development Surcharge Fee. 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(4). 

15 15 U.S.C. 78s(b)(3)(A). 16 17 CFR 240.19b–4(f)(2). 

• $0.40 per contract for voluntary 

professional transactions; 

• $0.40 per contract for professional 

transactions 

• $0.20 per contract for CBOE MarketMaker/DPM transactions; 6

• $0.25 per contract for Clearing 

Trading Permit Holder proprietary 

transactions; 7

• $0.40 per contract for broker-dealer 

transactions; 

• $0.10 per contract CFLEX Surcharge 

Fee; 

• $0.03 per contract floor brokerage 

fee; 8

• $0.015 per contract floor brokerage 

fee for crossed orders; 9

• $0.03 per contract par official fee; 10

and 

• $0.015 per contract for par official 

fee for crossed orders.11

The Exchange is also proposing to 

establish a new Surcharge Fee on 

transactions in GVZ options to help the 

Exchange offset some of the costs and 

expenses associated with new product 

research and development and ongoing 

maintenance. CBOE is a recognized 

industry leader in product innovation 

and believes that the introduction of 

new products is beneficial for the 

marketplace and provides investors 

with new and important risk 

management tools. Product innovation 

necessarily results in costs and expenses 

to the Exchange and involves risk. For 

example, the Exchange conducts 

surveys of market participants to scope 

new products, invests in development 

and marketing of new products and 

engages in ongoing maintenance of new 

products. Similarly, it takes time to 

build liquidity in new products. As a 

result, the Exchange believes that the 

proposed $0.10 per contract Surcharge 

Fee to help offset some of the costs and 

expenses expended for product research 

and development and ongoing 

maintenance is appropriate and will 

enable the Exchange to continue its 

longstanding leadership role in options 

product innovation. 

The Exchange is proposing to codify 

the new ‘‘Product Research & 

Development’’ Surcharge Fee in Section 

1 (Index Options) to the Fees Schedule 

by setting it forth in new subparagraph 

(B) under the existing ‘‘Surcharge Fee’’ 

category (and renaming the category 

‘‘Surcharge Fees’’). The new Product 

Research & Development Surcharge Fee 

will apply to all non-public customer 

transactions (i.e., CBOE and nonTrading Permit Holder market-maker, 

Clearing Trading Permit Holder and 

broker-dealer), including voluntary 

professionals and professionals.12 The 

Exchange notes that the existing 

‘‘Surcharge Fee’’ is assessed on 

transactions in certain index options, 

including Volatility Indexes, and the 

Exchange is expressly excluding GVZ 

options from this fee. In order to 

differentiate between the existing 

Surcharge Fee and the proposed Product 

Research & Development Surcharge Fee, 

the Exchange is proposing to establish a 

new subparagraph (A) which will be 

named ‘‘Index License.’’ Those products 

that are currently assessed the existing 

Surcharge Fee will be itemized under 

‘‘Index License’’ and GVZ will be 

itemized under ‘‘Product Research & 

Development.’’ 

The Exchange is also proposing to 

make the first reference to 

‘‘VOLATILITY INDEXES’’ in the Fees 

Schedule an active hyperlink that will 

take readers to a CBOE Web site that 

identifies all of the Volatility Indexes 

that underlie options traded on the 

Exchange. Specifically, the first 

reference to ‘‘VOLATILITY INDEXES’’ in 

Section 1 (Index Options, I. Customer at 

the third bullet point) will be displayed 

in blue text and has been embedded 

with the following hyperlink: http:// 

www.cboe.com/products/CashSettledIndexOptions.aspx#Volatility. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Act,13 in general, and furthers 

the objectives of Section 6(b)(4) 14 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 fee changes 

proposed by this filing are equitable 

because they will apply uniformly to all 

market participants that trade GVZ 

options. In addition, the proposed fees 

are reasonable and comparable to fees 

that the Exchange currently assesses for 

other volatility index products. 

Furthermore, the proposed new Product 

Research and Development Surcharge 

Fee will enable to Exchange to offset 

some (although not all) of the costs and 

expenses associated with offering new 

products. For example, the Exchange 

conducts surveys of market participants 

to scope new products, invests in 

development and marketing of new 

products and engages in ongoing 

maintenance of new products. 

Similarly, it takes time to build liquidity 

in new products. Finally, the proposed 

fees further the Exchange’s goal of 

introducing new products to the 

marketplace that are competitively 

priced. 

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 15 and 

subparagraph (f)(2) of Rule 19b–4 16

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 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 77 / Thursday, April 21, 2011 / Notices 22429 

17 17 CFR 200.30–3(a)(12). 

Number SR–CBOE–2011–028 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–2011–028. 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 

publicly available. All submissions 

should refer to File Number SR–CBOE– 

2011–028 and should be submitted on 

or before May 12, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–9648 Filed 4–20–11; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 7421] 

Bureau of Educational and Cultural 

Affairs (ECA) Request for Grant 

Proposals: ‘‘American Film 

Showcase—Contemporary Voices in 

Documentary and Fiction Film’’ 

Announcement Type: New 

Cooperative Agreement. 

Funding Opportunity Number: ECA/ 

PE/C/CU–11–46. 

Catalog of Federal Domestic 

Assistance Number: 19.415. 

Key Dates: September 1, 2011 to 

January 31, 2013. 

Application Deadline: May 25, 2011. 

Executive Summary: The Cultural 

Programs Division of the Office of 

Citizen Exchanges in the Bureau of 

Educational and Cultural Affairs (ECA) 

announces an open competition for a 

cooperative agreement to administer the 

‘‘American Film Showcase— 

Contemporary Voices in Documentary 

and Fiction Film.’’ Through this 

program, ECA seeks to bring awardwinning independent American 

documentaries and narrative films to 

audiences around the world to offer 

contemporary new insights into 

American life and culture and issues 

affecting democratic societies. The films 

and their filmmakers will be showcased 

at international venues, including U.S. 

Embassy-organized events and/or U.S. 

Embassy-supported international 

documentary and feature film festivals. 

This program will provide for travel by 

documentary and feature filmmakers 

and film experts in conjunction with 

public presentation of the films 

overseas. In addition to presentations, 

American filmmakers and film experts 

will be expected to conduct or 

participate in master classes, 

workshops, lectures and other outreach 

activities designed for a variety of 

audiences, with a focus on younger and 

underserved audiences. The classes are 

expected to include filmmaking 

workshops and training in digital 

technology, emergent media, and 

creative use of social media. The 

Showcase also will provide for followup programming that could include 

return visits overseas by American 

filmmakers or visits by young foreign 

filmmakers to the United States. 

Through this solicitation, ECA seeks 

an organization to identify and select a 

collection of contemporary American 

documentary and narrative films that 

offer a broad overview of the best in 

current American independent 

filmmaking. 

The films should demonstrate high 

artistic quality, illustrate diverse 

viewpoints, address a variety of social 

issues, and reflect the creativity 

inherent in an open, democratic society. 

Documentaries are the priority focus 

of the American Film Showcase. They 

should address important and 

compelling themes and represent more 

than half of the films in the Showcase, 

with the remainder being narrative/ 

fiction films. The Showcase also should 

include a small collection of animated 

shorts. 

U.S. public and non-profit 

organizations meeting the provisions 

described in Internal Revenue code 

section 26 U.S.C. 501(c)(3) may submit 

proposals for the American Film 

Showcase. 

For this competition, all applicants 

must demonstrate sufficient experience 

successfully exhibiting, distributing, or 

otherwise promoting American 

documentaries and narrative films. They 

also should demonstrate extensive 

knowledge of independent 

filmmaking—especially the 

documentary field—both in the U.S. and 

overseas. 

Proposals from organizations with 

significant international experience and 

also educational programming 

experience will be more competitive. 

I. Funding Opportunity Description 

Authority 

Overall grant making authority for 

this program is contained in the Mutual 

Educational and Cultural Exchange Act 

of 1961, Public Law 87–256, as 

amended, also known as the FulbrightHays Act. The purpose of the Act is ‘‘to 

enable the Government of the United 

States to increase mutual understanding 

between the people of the United States 

and the people of other countries * * *; 

to strengthen the ties which unite us 

with other nations by demonstrating the 

educational and cultural interests, 

developments, and achievements of the 

people of the United States and other 

nations * * * and thus to assist in the 

development of friendly, sympathetic 

and peaceful relations between the 

United States and the other countries of 

the world.’’ The funding authority for 

the program above is provided through 

legislation. 

Purpose 

The Bureau seeks proposals that will 

showcase and promote contemporary 

American independent documentaries 

and narrative films and their filmmakers 

at a variety of international venues, 

including U.S. Embassy-organized 

events and U.S. Embassy-supported 

documentary film festivals, as well as at 

universities, museums, binational 


emcdonald on DSK2BSOYB1PROD with NOTICES