Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Notices 14185 

114See supra note 6. 

115 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Underlying Symbol List A consists of OEX, 

XEO, SPX (including SPXW), SPXpm, SRO, VIX, 

VXST, Volatility Indexes and binary options. 

4See NASDAQ OMX PHLX LLC (‘‘PHLX’’) 

Pricing Schedule, Section II, Multiply Listed 

Options Fees. 

and publishes its reasons for so finding 

or (ii) as to which the self-regulatory 

organization consents, the Commission 

will issue an order approving or 

disapproving such proposed rule 

change, as amended. 

V. 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: 114

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

FINRA–2014–047 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–FINRA–2014–047. 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 such filing 

also will be available for inspection and 

copying at the principal office of 

FINRA. 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–FINRA–2014–047 and 

should be submitted on or before April 

8, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.115

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–06092 Filed 3–17–15; 08:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74491; File No. SR–CBOE– 

2015–025] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the Fees 

Schedule 

March 12, 2015. 

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 March 2, 

2015, 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 

The Exchange proposes to amend its 

Fees Schedule. 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 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

Fees Schedule, effective March 2, 2015. 

Currently, the Exchange assesses a $0.60 

per contract fee for electronic 

executions by broker-dealers, nonTrading Permit Holders (‘‘non-TPHs’’) 

Market-Makers, Professionals/Voluntary 

Professionals and Joint Back-Offices 

(‘‘JBOs’’) in non-Penny Pilot equity, 

ETF, ETN and index options (excluding 

Underlying Symbol List A 3) classes. 

The Exchange proposes increasing this 

transaction fee from $0.60 to $0.65 per 

contract. The Exchange notes that this 

increase is in line with the amount 

assessed by another exchange for similar 

transactions.4

The Exchange also seeks to append 

Footnote 16 to ‘‘Clearing Trading Permit 

Holder Proprietary’’ rows in the equity, 

ETF, ETN, Index, Specified Proprietary 

Index Options and Mini-Options rate 

tables. Footnote 16 of the Fees Schedule 

provides that ‘‘Broker-Dealer transaction 

fees apply to broker-dealer orders 

(orders with ‘‘B’’ origin code), nonTrading Permit Holder market-maker 

orders (orders with ‘‘N’’ origin code), 

orders from specialists in the underlying 

security (orders with ‘‘Y’’ origin code) 

and certain orders with ‘‘F’’ origin code 

(orders from OCC members that are not 

CBOE Trading Permit Holders).’’ The 

Exchange believes appending Footnote 

16 to the row in which the ‘‘F’’ origin 

code is listed clarifies that, in some 

instances, orders with the ‘‘F’’ origin 

code designation will be assessed 

Broker-Dealer transaction fees if the 

orders are from the Options Clearing 

Corporation (‘‘OCC’’) members that are 

not CBOE Trading Permit Holders 

(‘‘TPHs’’). The Exchange notes no 

substantive changes are being made by 

this change, rather the Exchange merely 

seeks to add further clarification and 

alleviate potential confusion. 

On January 2, 2015, the Exchange 

established an FBW fee for an updated 

version of FBW (‘‘FBW2’’), which the 

Exchange had anticipated making 

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14186 Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Notices 

5See Securities Exchange Act Release No. 74134 

(January 26, 2015), 80 FR 20 (January 30, 2015) (SR– 

CBOE–2015–005). The adopted fee for FBW2 is the 

same as the existing FBW fee (i.e., $400 per month 

(per login ID). 

6For example, if a user added a new login ID in 

March 2015, the user would have received a fee 

waiver for that login ID for March 2015. 

7For example, if a user adds a new login ID in 

May 2015, the user would receive a fee waiver for 

that login ID for May 2015. 

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

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78f(b)(4). 

11See PHLX Pricing Schedule, Section II, 

Multiply Listed Options Fees. 

12See CBOE Fees Schedule, Marketing Fee. 

available shortly thereafter to all TPHs.5

The Exchange at that time also proposed 

adopting a fee waiver for the months of 

January and February 2015, as well as 

provide that, after March 1, 2015, the 

monthly fee for FBW2 login IDs would 

be waived for the first month.6 The 

Exchange notes that FBW2 has not yet 

become available to TPHs, but that it 

intends to make it available shortly. In 

light of this delay, the Exchange 

proposes to delete the now outdated 

language and extend the fee waiver for 

the months of March and April 2015. 

Additionally, the Exchange will provide 

that after May 1, 2015 (instead of March 

1, 2015) the monthly fee for FBW2 login 

IDs will be waived for the first month.7

The purpose of the proposed fee waivers 

is to give new users time to become 

familiar with and fully acclimated to the 

new FBW workstation functionality. 

The Exchange notes that after May 2015 

(and absent an applicable fee waiver 

noted above), TPHs will be charged each 

of $400 for FBW and FBW2 (i.e., total 

of $800) if such users continue to use 

both FBW and FBW2. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.8 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 9 requirements that the rules of 

an exchange be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitation transactions in 

securities, 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. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

Section 6(b)(4) of the Act,10 which 

requires that Exchange rules provide for 

the equitable allocation of reasonable 

dues, fees, and other charges among its 

Trading Permit Holders and other 

persons using its facilities. 

Increasing the fee for electronic 

executions by broker-dealers, non-TPHs, 

[sic] Market-Makers, Professionals/

Voluntary Professionals and JBOs in 

non-Penny Pilot equity, ETF, ETN and 

Index options (excluding Underlying 

Symbol List A) classes is reasonable 

because the proposed fee amount is in 

line with the amount assessed by 

another exchange for similar 

transactions.11

The Exchange believes that this 

proposed change is equitable and not 

unfairly discriminatory because the 

Exchange will assess broker-dealers, 

non-TPH Market-Makers, Professionals/ 

Voluntary Professionals and JBOs the 

same electronic options transaction fees 

in non-Penny Pilot options classes. The 

Exchange notes that it does not assess 

Customers the electronic options 

transaction fees in non-Penny Pilot 

options because Customer order flow 

enhances liquidity on the Exchange for 

the benefit of all market participants. 

Specifically, Customer liquidity benefits 

all market participants by providing 

more trading opportunities, which 

attracts Market-Makers. An increase in 

the activity of these market participants 

in turn facilitates tighter spreads, which 

may cause an additional corresponding 

increase in order flow from other market 

participants. The Exchange notes that 

Market-Makers are assessed lower 

electronic options transaction fees in 

non-Penny Pilot options as compared to 

Professionals, JBOs, Broker Dealers and 

non-Trading Permit Holder MarketMakers because they have obligations to 

the market and regulatory requirements, 

which normally do not apply to other 

market participants (e.g., obligations to 

make continuous markets). Further, 

Market-Makers pay a $0.65 per contract 

Marketing Fee for many non-Penny Pilot 

transactions, which broker-dealers, nonTrading Permit Holder Market-Makers, 

Professionals/Voluntary Professionals 

and JBOs do not pay.12 Clearing Trading 

Permit Holder Proprietary orders are 

assessed lower options transaction fees 

in non-Penny Pilot options because they 

also have obligations, which normally 

do not apply to other market 

participants (e.g., must have higher 

capital requirements, clear trades for 

other market participants, must be 

members of OCC). Accordingly, the 

differentiation between electronic 

transaction fees for Customers, MarketMakers, Clearing Trading Permit 

Holders and other market participants 

recognizes the differing obligations and 

contributions made to the liquidity and 

trading environment on the Exchange by 

these market participants. 

Assessing higher fees for transactions 

in electronic, non-Penny Pilot classes is 

equitable and not unfairly 

discriminatory because in non-Penny 

Pilot classes the spreads are naturally 

larger than in Penny Pilot classes, and 

these wider spreads allow for greater 

profit potential. Limiting this fee 

increase to electronic transactions is 

equitable and not unfairly 

discriminatory because electronic 

trading requires constant system 

development and maintenance. 

The Exchange always strives for 

clarity in its rules and Fees Schedule, so 

that market participants may best 

understand how rules and fees apply. 

The Exchange believes appending 

Footnote 16 to ‘‘Clearing Trading Permit 

Holder Proprietary’’ in the rates tables 

alleviates potential confusion. The 

alleviation of potential confusion will 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, protect investors and the public 

interest. 

Finally, the Exchange believes it is 

reasonable to provide a waiver for the 

months of March and April 2015 

because it allows new users time to 

become familiar with and fully 

acclimated to the new FBW 

functionality and incentivizes the users 

to begin this process as soon as the new 

functionality becomes available. The 

Exchange believes it is reasonable to 

provide a waiver for the first month for 

a new login ID beginning May 1, 2015, 

because it allows a new user after April 

2015 to fully acclimate to the new FBW 

functionality. Additionally, the 

Exchange notes it is merely extending 

existing waivers to correspond with a 

delayed launch of FBW2. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange 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, because, 

while the fee increase will apply only to 

certain market participants, market 

participants have different obligations 

and different circumstances (as 

described in the ‘‘Statutory Basis’’ 

section above). The Exchange does not 

believe that the proposed rule change 

relating to the FBW 2 fee waivers will 

impose any burden on competition that 

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Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Notices 14187 

13See e.g., PHLX Pricing, Section II, Multiply 

Listed Options Fees. 

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

15 17 CFR 240.19b–4(f). 16 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. 

is not necessary or appropriate in 

furtherance of the purposes of the Act, 

because it applies to all Trading Permit 

Holders. The Exchange believes this 

proposal will not cause an unnecessary 

burden on intermarket competition 

because the electronic non-Penny Pilot 

transaction fee and fee amount is similar 

to fees assessed at other exchanges.13

Additionally, the proposal relating to 

the FBW2 fee waivers only affect trading 

on CBOE. To the extent that the 

proposed changes make CBOE a more 

attractive marketplace for market 

participants at other exchanges, such 

market participants are welcome to 

become CBOE market participants. 

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) 

of the Act 14 and paragraph (f) of Rule 

19b–4 15 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. If the 

Commission takes such action, the 

Commission will institute proceedings 

to determine whether the proposed rule 

change 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 email to rule-comments@

sec.gov. Please include File Number SR– 

CBOE–2015–025 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CBOE–2015–025. 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 

10:00 a.m. and 3:00 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– 

2015–025 and should be submitted on 

or before April 8, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–06109 Filed 3–17–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74492 ; File No. SR– 

NYSEArca–2015–13] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending the NYSE Arca 

Options Fee Schedule Relating to 

Market Maker Posting Credit Tiers 

March 12, 2015. 

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 March 2, 

2015, 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, II, and 

III 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 Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

NYSE Arca Options Fee Schedule (‘‘Fee 

Schedule’’) relating to Market Maker 

Posting Credit Tiers. The Exchange 

proposes to implement the fee change 

effective March 2, 2015. The text of the 

proposed rule change is available on the 

Exchange’s Web site at www.nyse.com, 

at the principal office of the Exchange, 

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. 

mstockstill on DSK4VPTVN1PROD with NOTICES