2048 Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Notices 

5 In approving this proposed rule change the 

Commission notes that it has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

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

7 15 U.S.C. 78s(b)(2). 

8 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. 54771 

(November 16, 2006), 71 FR 68657 (the ‘‘Notice’’). 

4Although the proposed rule change refers to 

Open/Close Data covering all CBOE listed 

securities, the CBOE confirmed that the Open/Close 

Data is available solely for all CBOE listed options. 

Telephone conversation between Jaime Galvan, 

Assistant Secretary, CBOE and David Michehl, 

Special Counsel, Division of Market Regulation, 

Commission on January 8, 2007. 

5 15 U.S.C. 78f(b)(4). 

6 In approving this proposed rule change the 

Commission notes that it has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

7 15 U.S.C. 78s(b)(2). 

8 17 CFR 200.30–3(a)(12). 

messaging will be bundled only for 

outbound updates. 

The Exchange believes this proposal 

is an optimal trade-off between costs 

and benefits and that it is fully 

compliant with its firm quote 

obligations. BOX has indicated that its 

target reduction in outbound peak traffic 

is 15% to 20% of what the traffic would 

have been had no mitigation been 

applied. Box has also represented that 

the reduction in overall traffic, as 

opposed to peaks, will be lower, but still 

significant, with a target of 8% to 10%. 

III. Discussion 

After careful review of the proposal 

and consideration of the comment letter, 

the Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange.5 In 

particular, the Commission finds that 

the proposal is consistent with Section 

6(b)(5) of the Act,6 which requires, 

among other things, that the rules of an 

exchange be designed 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 Commission believes that the 

Exchange’s proposal to ‘‘bundle’’ quotes 

should reduce the volume of options 

quote traffic disseminated to OPRA and 

help to address capacity concerns on the 

Exchange. Because the contemplated 

delays in data transmission are very 

brief, the Commission does not believe 

that ‘‘bundling’’ quotes will adversely 

affect market transparency or negatively 

affect market participants or investors. 

Furthermore, the Commission believes 

that BOX’s quote mitigation proposal is 

designed to provide the Exchange with 

a mechanism, that should reduce overall 

peak market data traffic with a relatively 

small impact on the quality of 

information available to options market 

users. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,7 that the 

proposed rule change (SR–BSE–2006–

48), be, and hereby is approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–526 Filed 1–16–07; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55062; File No. SR–CBOE–

2006–88] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Order Granting Approval 

to Proposed Rule Change To Codify a 

Fee Schedule for the Sale of Open and 

Close Volume Data on CBOE Listed 

Options by Market Data Express, LLC 

January 8, 2007. 

On November 3, 2006, the Chicago 

Board Options Exchange, Incorporated 

(‘‘CBOE’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

codify a fee schedule for the sale of 

open and close volume data on CBOE 

listed options by Market Data Express, 

LLC (‘‘MDX’’), a wholly-owned 

subsidiary of CBOE. The proposed rule 

change was published for comment in 

the Federal Register on November 27, 

2006.3 The Commission received no 

comments regarding the proposal. This 

order approves the proposed rule 

change. 

In the Notice, the Exchange 

represented that it creates volume data 

for each CBOE listed option that 

consists of opening buys and opening 

sells and closing buys and closing sells 

(‘‘Open/Close Data’’). CBOE further 

represented that MDX offers this Open/ 

Close Data for sale to CBOE members 

and non-members and that the fees 

assessed by MDX for the Open/Close 

Data are set forth in the Price List on 

MDX’s Web site. CBOE members and 

non-members are charged the same fees 

for the Open/Close Data. 

Under the proposal, customers may 

purchase Open/Close Data on a 

subscription basis or by ad hoc request. 

Daily Open/Close Data covering all 

CBOE listed options 4 would be 

available for purchase by subscribing to 

the Daily Update service at a cost of 

$600 per month. Subscribers to the 

Daily Update service would receive a 

daily data file via download from 

MDX’s Web site. Historical Open/Close 

Data covering all CBOE listed options 

may be purchased on an ad hoc request 

basis and is delivered via DVD. The 

charge for Historical Open/Close Data 

covering all CBOE listed options would 

be $7,200 per year for requests for one 

to four years of data. Requests for five 

or more years of Historical Open/Close 

Data would receive a 50% discount 

beginning with the fifth year of data 

(i.e., MDX charges $7,200 for each of the 

first four years of data and $3,600 for 

year five and for each subsequent year 

of data). Alternatively, a customer may 

purchase Historical Open/Close Data on 

an individual CBOE listed option at a 

cost of $4.50 per listed option per 

month. This data would be available via 

download from MDX’s Web site. A 50% 

discount would be applied for requests 

for ten or more years of data, beginning 

with the tenth year of data. 

The Commission has reviewed 

carefully the proposed rule change and 

finds that the proposedrule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange and, in particular, 

the requirements of Section 6(b)(4) of 

the Act,5 which requires, among other 

things, CBOE’s rules be designed to 

provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among CBOE members and issuers and 

other persons using its facilities.6

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,7 that the 

proposed rule change (SR–CBOE–2006–

88) is hereby approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–540 Filed 1–16–07; 8:45 am] 

BILLING CODE 8011–01–P 

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