13166 Federal Register / Vol. 77, No. 43 / Monday, March 5, 2012 / Notices 

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

8 15 U.S.C. 78f(b)(4). 

9See footnote 6. 

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

11 17 CFR 240.19b–4(f). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.7 Specifically, 

the Exchange also believes the proposed 

rule change is consistent with Section 

6(b)(4) of the Act,8 which provides that 

Exchange rules may provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

Trading Permit Holders and other 

persons using its facilities. The 

proposed adoption of the monthly $500 

per port fee is reasonable because the 

fee is within the same range as those 

assessed on other exchanges, and 

because MDX must recoup the costs of 

upgrading and maintaining the 

equipment involved in the ports, as well 

as cover other administrative costs.9 The 

proposed adoption of the port fee is 

equitable and not unfairly 

discriminatory because it will be 

assessed to all market participants 

equally. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

C2 does not believe that the proposed 

rule change will impose any burden on 

competition that is 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 

The Exchange neither solicited nor 

received comments on 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) 10 of the Act and paragraph 

(f) of Rule 19b–4 11 thereunder. 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. 

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 email to rulecomments@sec.gov. Please include File 

Number SR–C2–2012–007 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–C2–2012–007. This file 

number should be included on the 

subject line if email 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 

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–C2– 

2012–007 and should be submitted on 

or before March 26, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–5278 Filed 3–2–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66486; File No. SR–CBOE– 

2012–016] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the Fees 

Schedule of Market Data Express, LLC 

February 28, 2012. 

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 February 

15, 2012, 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 

substantially 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 the 

Fee Schedule of Market Data Express, 

LLC (‘‘MDX’’), an affiliate of CBOE. The 

text of the proposed rule change is 

available on the Exchange’s Web site 

(http://www.cboe.com/AboutCBOE/ 

CBOELegalRegulatoryHome.aspx), 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 

Exchange 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 


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Federal Register / Vol. 77, No. 43 / Monday, March 5, 2012 / Notices 13167 

3The Commission notes that the MDX Fee 

Schedule is available at https://www.cboe.org/MDX/ 

CSM/OBOOKMain.aspx. 

4A ‘‘Customer’’ is any entity that receives the 

BBO Data Feed directly from MDX’s system and 

then distributes it either internally or externally to 

Subscribers. A ‘‘Subscriber’’ is a person (other than 

an employee of a Customer) that receives the BBO 

Data Feed from a Customer for its own internal use. 

5The Exchange notes that MDX makes available 

to Customers the BBO data and last sale data that 

is included in the BBO Data Feed no earlier than 

the time at which the Exchange sends that data to 

OPRA. The Exchange also notes that it also makes 

the BBO data and last sale data that is included in 

the BBO Data Feed available directly to its Trading 

Permit Holders, and permits them to redistribute 

the data to their customers. 

6See Securities Exchange Act Release No. 64964 

(July 26, 2011) (SR–EDGA–2011–22) and Securities 

Exchange Act Release No. 64963 (July 26, 2011) 

(SR–EDGX–2011–21) (in which EDGA Exchange, 

Inc. (‘‘EDGA’’) and EDGX Exchange, Inc. (‘‘EDGX’’) 

each assess a monthly fee of $500 per port for 

access to logical ports used to receive market data) 

and also Rule 7015(g) of the NASDAQ Stock Market 

LLC (‘‘NASDAQ’’) (in which NASDAQ assesses a 

monthly fee of $600 per Internet port that is used 

to deliver market data). 

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

8 15 U.S.C. 78f(b)(4). 

9See footnote 6. 

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

11 17 CFR 240.19b–4(f). 

Exchange 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 the proposed rule 

change is to establish a monthly fee of 

$500 per data port that MDX will charge 

for access to certain market data with 

respect to the trading of options on 

CBOE’s market.3

CBOE currently collects and processes 

market data with respect to options 

quotes and orders and the prices of 

trades that are executed on the 

Exchange. This market data includes the 

‘‘best bid and offer,’’ or ‘‘BBO’’, 

consisting of all outstanding quotes and 

standing orders at the best available 

price level on each side of the market, 

with aggregate size (‘‘BBO data,’’ 

sometimes referred to as ‘‘top of book 

data’’). Data with respect to executed 

trades is referred to as ‘‘last sale’’ data. 

CBOE formats its BBO data and last sale 

data according to Options Price 

Reporting Authority (‘‘OPRA’’) 

specifications and sends the data to 

OPRA for redistribution to the public. 

MDX provides to ‘‘Customers’’ 4 a 

real-time, low latency data feed that 

includes the CBOE BBO data and last 

sale data. (This data feed is sometimes 

referred to in this filing as the ‘‘BBO 

Data Feed’’). The BBO and last sale data 

contained in the BBO Data Feed is 

identical to the data that CBOE sends to 

OPRA.5 In addition, the BBO Data Feed 

includes certain data that is not 

included in the data sent to OPRA, 

namely, totals of customer versus noncustomer contracts at the BBO, All-orNone contingency orders priced better 

than or equal to the BBO, and BBO data 

and last sale data for complex strategies 

(e.g., spreads, straddles, buy-writes, 

etc.). 

MDX currently charges Customers a 

‘‘direct connect fee’’ of $3,500 per 

connection per month as well as a ‘‘per 

user fee’’ of $25 per month per 

‘‘Authorized User’’ or ‘‘Device’’ for 

receipt of the BBO Data Feed by 

Subscribers. An ‘‘Authorized User’’ is 

defined as an individual user (an 

individual human being) who is 

uniquely identified (by user ID and 

confidential password or other 

unambiguous method reasonably 

acceptable to MDX) and authorized by 

a Customer to access the BBO Data Feed 

supplied by the Customer. A ‘‘Device’’ 

is defined as any computer, workstation 

or other item of equipment, fixed or 

portable, that receives, accesses and/or 

displays data in visual, audible or other 

form. Either a CBOE Trading Permit 

Holder or a non-CBOE Trading Permit 

Holder may be a Customer. All 

Customers are assessed the same fees. 

MDX provides ports that allow 

Customers to direct connect to MDX to 

receive the data feed. Currently, such 

ports are provided to Customers free of 

charge. However, MDX recently made 

an investment to upgrade the equipment 

involved in the ports, and maintenance 

and upkeep of such ports has gotten 

costly, as well. As such, MDX proposes 

to assess a monthly fee of $500 per data 

port in order to recoup such costs and 

maintain such equipment in the future, 

as well as cover other administrative 

costs. This amount is similar to the 

amount of fees assessed by other 

exchanges for access to similar data feed 

ports.6

The proposed fees would be 

implemented on March 1, 2012. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.7 Specifically, 

the Exchange also believes the proposed 

rule change is consistent with Section 

6(b)(4) of the Act,8 which provides that 

Exchange rules may provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

Trading Permit Holders and other 

persons using its facilities. The 

proposed adoption of the monthly $500 

per port fee is reasonable because the 

fee is within the same range as those 

assessed on other exchanges, and 

because MDX must recoup the costs of 

upgrading and maintaining the 

equipment involved in the ports, as well 

as cover other administrative costs.9 The 

proposed adoption of the port fee is 

equitable and not unfairly 

discriminatory because it will be 

assessed to all market participants 

equally. 

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 the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on 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) 10 of the Act and paragraph 

(f) of Rule 19b–4 11 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 email to rulecomments@sec.gov. Please include File 

Number SR–CBOE–2012–016 on the 

subject line. 


erowe on DSK2VPTVN1PROD with NOTICES
13168 Federal Register / Vol. 77, No. 43 / Monday, March 5, 2012 / Notices 

12 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See SR–NYSEArca–2012–15 (filed February 9, 

2012). 

5See e.g., Securities Exchange Act Release Nos. 

63843 (February 4, 2011), 76 FR 7884 (February 11, 

2011) (SR–ISE–2010–115); and 63314 (November 

12, 2010), 75 FR 70957 (November 19, 2010) (SR– 

CBOE–2010–084). 

6See e.g., Securities Exchange Act Release No. 

64699 (June 17, 2011), 76 FR 36945 (June 23, 2011) 

(SR–CBOE–2011–056). 

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–2012–016. This file 

number should be included on the 

subject line if email 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 

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– 

2012–016 and should be submitted on 

or before March 26, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–5277 Filed 3–2–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66483; File No. SR– 

NYSEARCA–2012–016] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Filing the Content Outline 

and Selection Specifications for the 

Proprietary Traders Qualification 

Examination (‘‘Series 56’’) Program 

February 28, 2012. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on February 

17, 2012, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 self-regulatory 

organization. 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 Substance 

of the Proposed Rule Change 

The Exchange proposes to file the 

content outline and selection 

specifications for the Proprietary 

Traders Qualification Examination 

(‘‘Series 56’’) program. The text of the 

proposed rule change is available at the 

Exchange, the Commission’s Public 

Reference Room, and 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 

Recently, the Exchange filed a 

proposed rule change to recognize a 

new category of limited representative 

registration for proprietary traders.4

Specifically, the Exchange will 

recognize the new registration category, 

‘‘Proprietary Trader,’’ and the new 

examination, the Series 56. The new 

Proprietary Trader category will be 

limited to persons engaged solely in 

proprietary trading. 

The Exchange has been working with 

the Financial Industry Regulatory 

Authority (‘‘FINRA’’) and certain other 

exchanges, many of which have recently 

enhanced their registration 

requirements to require the registration 

of associated persons,5 to develop the 

content outline and qualification 

examination that would be applicable to 

proprietary traders. The Series 56 

examination program is shared by the 

Exchange and the following selfregulatory organizations (‘‘SROs’’): 

Boston Options Exchange; C2 Options 

Exchange, Incorporated; Chicago Board 

Options Exchange, Incorporated; 

Chicago Stock Exchange, Incorporated; 

International Securities Exchange, LLC; 

The NASDAQ Stock Market, NASDAQ 

OMX BX, Inc.; NASDAQ OMX PHLX 

LLC; National Stock Exchange, 

Incorporated; New York Stock Exchange 

LLC; and NYSE Amex LLC. Upon 

request by the SROs referenced above, 

FINRA staff convened a committee of 

industry representatives, Exchange staff 

and staff from the other SROs referenced 

above to develop the criteria for the 

Series 56 examination program. Certain 

exchanges have submitted filings to the 

Commission to utilize the Series 56.6

The Series 56 examination tests a 

candidate’s knowledge of proprietary 

trading generally and the industry rules 

applicable to trading of equity securities 

and listed options contracts. The Series 

56 examination covers, among other 

things, recordkeeping and recording 

requirements; types and characteristics 

of securities and investments; trading 

practices; and display. execution, and 

trading systems. While the examination 


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