78284 Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Notices 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5 In particular, the marketing fee is assessed only 

on transactions of Market-Makers, e-DPMs, and 

DPMs, resulting from (i) customer orders from 

payment accepting firms, or (ii) customer orders 

that have designated a ‘‘Preferred Market-Maker’’ 

under CBOE Rule 8.13. However, as described in 

footnote 6, the marketing fee does not apply to: 

Market-Maker-to-Market-Maker transactions 

including transactions resulting from orders from 

non-Trading Permit Holder market-makers; 

transactions resulting from accommodation 

liquidations (cabinet trades); and transactions 

resulting from any of the strategies identified and/ 

or defined in footnote 13 of this Fees Schedule; and 

transactions in the Penny Pilot classes resulting 

from orders executed through the Hybrid Agency 

Liaison under Rule 6.14. 

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

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(2). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63470; File No. SR–CBOE– 

2010–108] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to CBOE’s 

Marketing Fee Program 

December 8, 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 December 

1, 2010, 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 and II 

below, which Items have been prepared 

by the Exchange. The Exchange has 

designated this proposal as one 

establishing or changing a due, fee, or 

other charge imposed by CBOE under 

Section 19(b)(3)(A)(ii) of the Act 3 and 

Rule 19b–4(f)(2) thereunder,4 which 

renders the proposal effective upon 

filing with the Commission. 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 

and specifically make certain changes to 

its Marketing Fee Program. 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, the Proposed Rule 

Change 

1. Purpose 

CBOE proposes to amend its 

Marketing Fee Program in two respects. 

First, CBOE proposes to amend the 

types of transactions in which the fee is 

assessed in the SPY option class. 

Currently, the marketing fee is assessed 

on transactions as set forth in footnote 

6 of the Fees Schedule.5 In that regard, 

CBOE notes that it is assessed on both 

electronic and open outcry transactions. 

CBOE now proposes to not assess the 

marketing fee on electronic transactions 

in SPY options, except that it would 

continue to assess the marketing fee on 

electronic transactions resulting from its 

Automated Improvement Mechanism 

(‘‘AIM ’’) pursuant to CBOE Rule 6.74A 

and transactions in open outcry. CBOE 

proposes to implement this change on a 

pilot basis starting on December 1, 2010 

and continuing through March 31, 2011. 

This proposed change is intended to 

attract more customer volume to the 

Exchange in this option class and to 

allow CBOE market-makers to better 

compete for order flow. CBOE notes that 

the SPY option class is unique in the 

manner in which it trades and is one of 

the most active option classes. CBOE 

also notes that DPMs and Preferred 

Market-Makers can utilize the marketing 

fee funds to attract orders from payment 

accepting firms that are executed in 

AIM and in open outcry. Finally, CBOE 

believes that the marketing fee funds 

received by payment accepting firms 

may be used to offset transaction and 

other costs related to the execution of an 

order in AIM and in open outcry, 

including in the SPY option class. For 

these reasons, CBOE believes that it 

would make sense to continue to assess 

the marketing fee in transactions 

resulting from AIM and in open outcry 

in the SPY option class, and would 

assist in attracting customer volume to 

the Exchange. 

In addition, CBOE proposes to amend 

its Marketing Fee Program to not assess 

the fee in transactions in Flexible 

Exchange Options (‘‘FLEX’’), which 

CBOE believes may encourage MarketMakers to transact in FLEX options. 

CBOE proposes to implement this 

change to the marketing fee program 

beginning on December 1, 2010. CBOE 

is not amending its Marketing Fee 

Program in any other respects. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Securities Exchange Act of 

1934 (‘‘Act’’), 6 in general, and furthers 

the objectives of Section 6(b)(4) 7 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 in that 

it is intended to attract more customer 

volume on the Exchange in the SPY 

option class and also to encourage 

Market-Makers to transact in FLEX 

options. 

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 [sic] 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 

Because the foregoing proposed rule 

change establishes or changes a due, fee, 

or other charge imposed by the 

Exchange, it has become effective 

pursuant to Section 19(b)(3)(A) of the 

Act 8 and subparagraph (f)(2) of Rule 

19b–4 9 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 


hsrobinson on DSK69SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Notices 78285 

10 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. 62252 

(June 10, 2010), 75 FR 34186 (June 16, 2010) (SR– 

NYSEArca–2010–41). 

4The Exchange notes that the other national 

securities exchanges have adopted the pilot in 

substantially similar form. 

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

6 15 U.S.C. 78f(b)(5). 

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–2010–108 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–2010–108. 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 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 

Number SR–CBOE–2010–108 and 

should be submitted on or before 

January 5, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–31436 Filed 12–14–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63496; File No. SR– 

NYSEArca–2010–114] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending NYSE Arca 

Equities Rule 7.11 To Extend the 

Effective Date of the Pilot 

December 9, 2010. 

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

Securities Exchange Act of 1934 

(‘‘Act’’)1, and Rule 19b–42 thereunder, 

notice is hereby given that on December 

7, 2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ 

or ‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

NYSE Arca Equities Rule 7.11 to extend 

the effective date of the pilot by which 

such rule operates, which is currently 

scheduled to expire on December 10, 

2010, until April 11, 2011. The text of 

the proposed rule change is available at 

the Exchange, the Commission’s Public 

Reference Room, and http:// 

www.nyse.com. 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

NYSE Arca Equities Rule 7.11 to extend 

the effective date of the pilot by which 

such rule operates, which is currently 

scheduled to expire on December 10, 

2010,3 until April 11, 2011. 

NYSE Arca Equities Rule 7.11 

requires the Exchange to pause trading 

in an individual security listed on the 

Exchange if the price moves by 10% as 

compared to prices of that security in 

the preceding five-minute period during 

a trading day, which period is defined 

as a ‘‘Trading Pause.’’ The pilot was 

developed and implemented as a 

market-wide initiative by the Exchange 

and other national securities exchanges 

in consultation with the Commission 

staff and is currently applicable to all 

S&P 500 Index securities, Russell 1000 

Index securities, and specified 

exchange-traded products.4

The extension proposed herein would 

allow the pilot to continue to operate 

without interruption while the 

Exchange, other national securities 

exchanges and the Commission further 

assess the effect of the pilot on the 

marketplace or whether other initiatives 

should be adopted in lieu of the current 

pilot. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Securities Exchange Act of 1934 

(the ‘‘Act’’),5 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,6

in particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to 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. The Exchange believes 

that the change proposed herein meets 

these requirements in that it promotes 

uniformity across markets concerning 

decisions to pause trading in a security 

when there are significant price 

movements. Additionally, extension of 


hsrobinson on DSK69SOYB1PROD with NOTICES