6764 Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires the self-regulatory 

organization to give the Commission 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. 

CBOE has satisfied this requirement. 

12 17 CFR 240.19b–4(f)(6)(iii). 

13See supra note 5. 

14For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

time as the Commission may designate 

if consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

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

of the Act 10 and Rule 19b–4(f)(6)(iii) 

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing.11 However, Rule 19b– 

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

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requested that the 

Commission waive the 30-day operative 

delay, as specified in Rule 19b– 

4(f)(6)(iii),12 which would make the rule 

change effective and operative upon 

filing. 

The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because the proposal is based on a 

recent Commission-approved proposal 

submitted by another options 

exchange 13 and therefore does not raise 

any novel regulatory issues. Further, 

waiving the operative delay will allow 

the Exchange to commence quoting all 

series of IWM and SPY in increments of 

$0.01 effective February 1, 2010, 

contemporaneously with other options 

exchanges. Accordingly, the 

Commission designates the proposed 

rule change as operative upon filing 

with the Commission.14

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

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–2010–009 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–2010–009. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street, NE., 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

self-regulatory organization. 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–2010–009 and 

should be submitted on or before March 

3, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2865 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61489; File No. SR–CBOE– 

2010–008] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Inc.; Notice of Filing of Proposed Rule 

Change Relating to Co-location 

Service Fees 

February 4, 2010. 

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 

28, 2010, Chicago Board Options 

Exchange, Inc. (‘‘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 the Proposed 

Rule Change 

Chicago Board Options Exchange, Inc. 

(‘‘CBOE’’ or ‘‘Exchange’’) proposes to 

amend its Fees Schedule relating to colocation service fees. The text of the 

proposed rule change is availableon the 

Exchange’s Web site (http:// 

www.cboe.org/legal), at the Exchange’s 

principal office, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

CBOE included statements concerning 

the purpose of and basis for the 

proposed rule change and discussed any 

comments it received on the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item IV below. CBOE has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

For a monthly fee, the Exchange 

provides members with cabinet space in 

CBOE’s building for placement of 

network and server hardware. The fee is 


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Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 6765 

3See Securities Exchange Act Release No. 57191 

(January 24, 2008), 73 FR 5611 (January 30, 2008). 

The fee for a Sponsored User is $20 per month per 

‘‘U’’. See Securities Exchange Act Release No. 58189 

(July 18, 2008), 73 FR 43274 (July 24, 2008). 

4A member using the co-location service may 

also pay certain CBOEdirect Connectivity Charges 

that are set forth in Section 16 of the Fees Schedule. 

These fees are charged for member connectivity to 

CBOEdirect regardless of whether or not a member 

is using the co-location service. These fees include 

a $40 per month ‘‘CMi Application Server’’ fee for 

server hardware used to connect to the CBOE CMi 

API, a $40 per month ‘‘Network Access Port’’ fee for 

use of the CMi API and a $40 per month ‘‘FIX Port’’ 

fee for use of the FIX API. See Securities Exchange 

Act Release No. 57191, supra footnote 1. Each of the 

foregoing fees are $80 per month for a Sponsored 

User. See Securities Exchange Act Release No. 

58189, supra footnote 1. 

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

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

7 15 U.S.C. 78f(b)(5). 8 17 CFR 200.30–3(a)(12). 

$10 per month per ‘‘U’’ of shelf space 

(which is equal to 1.75 inches).3 A 

member also receives power, cooling, 

security and assistance with installation 

and connection of the equipment to the 

Exchange’s servers, at no additional 

charge. This ‘‘co-location service’’ 

provides members with close physical 

proximity to the Exchange’s electronic 

trading system, which helps meet their 

need for high performance processing 

and low latency. 

The co-location service is available to 

any member that requests the service 

and pays the monthly fee.4 The 

Exchange believes that for the 

foreseeable future it has sufficient space 

to accommodate all members who may 

request the co-location service. Other 

than the co-location service, the 

Exchange does not provide any colocating member with any advantage 

over any other co-locating member or 

any non-co-locating member with 

respect to access to the Exchange’s 

trading system. The Exchange’s systems 

are designed to minimize, to the extent 

possible, any advantage for one member 

over another. The foregoing statements 

apply equally to both inbound and 

outbound data. 

The Exchange proposes to clarify its 

Fees Schedule relating to co-location 

fees in a couple of respects. First, the 

Exchange proposes to move the colocation fees from Section 17 of the Fees 

Schedule (Hybrid Fees) to Section 8 

(Facility Fees) because these fees are 

more accurately described as facility 

fees. Second, the Exchange proposes to 

clarify that the co-location fees are 

charged in increments of 4 ‘‘U’’ (which 

is equal to 7 inches) because the cabinet 

space is available in 4 U increments. 

2. Statutory Basis 

By clarifying the Exchange’s fees for 

its co-location service and providing a 

fuller description of the service, the 

Exchange believes the proposed rule 

change is consistent with Section 6(b) of 

the Securities Exchange Act of 1934,5 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 its 

members and other persons using its 

facilities. In addition, the Exchange 

believes the proposed rule change 

furthers the objectives of Section 

6(b)(5) 7 of the Act in that it is designed 

to promote just and equitable principles 

of trade, remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

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 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve such proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be 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 

Number SR–CBOE–2010–008 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–2010–008. 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– 

2010–008 and should be submitted on 

or before March 3, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2955 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 


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