Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Notices 46955 

270 15 U.S.C. 78s(b)(2). 

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

2Contract volume resulting from dividend, 

merger and short stock interest strategies as defined 

in Footnote 13 of the Fees Schedule does not apply 

towards reaching the sliding scale volume 

thresholds. 

become party to the BSX Operating 

Agreement pursuant to the revised 

Section 8.2(f). 

The Commission finds these changes 

to the BSX Operating Agreement 

consistent with the Act. Section 8.2(f) of 

the BSX Operating Agreement is 

designed to minimize the potential that 

a person could improperly interfere 

with or restrict the ability of the 

Commission and BSE to effectively 

carry out their regulatory oversight 

responsibilities under the Act. The 

clarifications proposed by BSE do not 

hinder the intent of Section 8.2(f), 

because the Commission believes that a 

person without voting power in the 

equity securities of a BSX Member, or a 

person with no direct or indirect 

interest in a BSX Member, could not 

interfere with or restrict the 

Commission’s or the BSE’s ability to 

carry out its regulatory responsibilities. 

In Amendment No. 1 to the BOX 

Transfer Proposal, BSE proposes to 

amend Section 8.4(g) of the BOX LLC 

Agreement. Section 8.4(g) currently 

requires that any person who, alone or 

together with any affiliate of such 

person, has 25 percent or greater interest 

in a BOX Member who, alone or 

together with any affiliate of such BOX 

Member, holds 20 percent or greater 

interest in BOX become party to, and 

abide by all the provisions of, the BOX 

LLC Agreement. In Amendment No. 1, 

BSE proposes to clarify that for the 

Section 8.4(g) requirement to apply, a 

person, alone or together with any 

affiliate of such person, must have 

direct or indirect ownership of 25 

percent or more of the total voting 

power of all equity securities of a BOX 

Member, other than voting rights solely 

with respect to matters affecting the 

rights, preferences, or privileges of a 

particular class of equity securities. 

Notwithstanding the foregoing, BSE 

proposes to clarify that a person with 

zero percent direct or indirect interest in 

a BOX Member would not be required 

to become party to the BOX LLC 

Agreement pursuant to the revised 

Section 8.4(g). 

The Commission finds these changes 

to the BOX LLC Agreement consistent 

with the Act. Section 8.4(g) of the BOX 

LLC Agreement is designed to minimize 

the potential that a person could 

improperly interfere with or restrict the 

ability of the Commission and BSE to 

effectively carry out their regulatory 

oversight responsibilities under the Act. 

The clarifications proposed by BSE do 

not hinder the intent of Section 8.4(g) 

because the Commission believes that a 

person without voting power in the 

equity securities of a BOX Member, or 

a person with no direct or indirect 

interest in a BOX Member, could not 

interfere with or restrict the 

Commission’s or the BSE’s ability to 

carry out its regulatory responsibilities. 

For the reasons described above, the 

Commission finds good cause for 

approving each of the following on an 

accelerated basis, pursuant to Section 

19(b)(2) of the Act: (1) The BSE 

Governance Proposal, as modified by 

Amendment No. 1; (2) the BSECC 

Governance Proposal, as modified by 

Amendment No. 1; and (3) the BOX 

transfer Proposal, as modified by 

Amendment No. 1. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,270 that the 

BSE Interim Certificate Proposal (SR–

BSE–2008–02), as modified by 

Amendment No. 1, be, and hereby is, 

approved; that the BSE Governance 

Proposal (SR–BSE–2008–23), as 

modified by Amendment No.1, be, and 

hereby is, approved on an accelerated 

basis; that the BOX Transfer Proposal 

(SR–BSE–2008–25), as modified by 

Amendment No. 1, be, and hereby is, 

approved on an accelerated basis; and 

that the BSECC Governance Proposal 

(SR–BSECC–2008–01), as modified by 

Amendment No.1 be, and hereby is 

approved on an accelerated basis. 

By the Commission. 

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18577 Filed 8–11–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58321; File No. SR–CBOE–

2008–78] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Market-Maker 

Transaction Fees 

August 6, 2008. 

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

Securities Exchange Act of 1934 1, 

notice is hereby given that on July 25, 

2008, the Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’ or 

‘‘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 Substance 

of the Proposed Rule Change 

CBOE proposes to amend its Fees 

Schedule relating to market-maker 

transaction fees. 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 

Under the Exchange’s ‘‘Liquidity 

Provider Sliding Scale’’ program, the 

Exchange reduces Liquidity Provider 

(CBOE Market-Maker, DPM, e-DPM and 

LMM) per contract transaction fees 

based on the number of contracts a 

Liquidity Provider trades in a month. 

The sliding scale applies to Liquidity 

Provider transaction fees in all 

products.2

A Liquidity Provider’s standard $.20 

per contract transaction fee is reduced if 

the Liquidity Provider reaches the 

volume thresholds set forth in the 

sliding scale in a month. As a Liquidity 

Provider’s monthly volume increases, 

its per contract transaction fee 

decreases. The first 75,000 contracts 

traded in a month (first tier) are assessed 

at $.20 per contract. The next 1,125,000 

contracts traded (up to 1.2 million total 

contracts traded—second tier) are 

assessed at $.18 per contract. The next 

1.8 million contracts traded (up to 3 

million total contracts traded—third 

tier) are assessed at $.15 per contract 


sroberts on PROD1PC70 with NOTICES
46956 Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Notices 

3The Exchange aggregates the trading activity of 

separate Liquidity Provider firms for purposes of 

the sliding scale if there is at least 75% common 

ownership between the firms as reflected on each 

firm’s Form BD, Schedule A. A Liquidity Provider’s 

monthly contract volume is determined at the firm 

affiliation level, e.g., if five Liquidity Provider 

individuals are affiliated with the same member 

firm as reflected by Exchange records for the entire 

month, all of the volume from those five individual 

Liquidity Providers count towards that firm’s 

sliding scale transaction fees for that month. See 

CBOE Fees Schedule, Footnote 10. 

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

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

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4(f)(2). 

8 17 CFR 200.30–3(a)(12). 

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

2Changes are to the rule text that appears in the 

electronic manual of NSCC found at http:// 

www.nscc.com/legal/. 

and the next 1.8 million contracts 

traded (up to 4.8 million total contracts 

traded—fourth tier) are assessed at $.10 

per contract. All contracts above 4.8 

million contracts traded in a month 

(fifth tier) are assessed at $.03 per 

contract.3

The Exchange proposes to add a sixth 

tier in order to provide an additional fee 

reduction at higher volume levels. 

Specifically, the Exchange proposes to 

assess $.01 per contract for all contracts 

above 10 million contracts traded by a 

Liquidity Provider in a month. 

Accordingly, the fifth tier would be 

revised to reflect that all contracts above 

4.8 million up to 10 million contracts 

traded in a month would be assessed 

$.03 per contract. 

No other changes to the program are 

proposed. The Exchange plans to 

implement the proposed fee change on 

August 1, 2008. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Securities Exchange Act of 

1934 (‘‘Act’’) 4, in general, and furthers 

the objectives of Section 6(b)(4) 5 of the 

Act in particular, in that it is designed 

to provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among CBOE members. The proposed 

fee change would provide an additional 

fee reduction to Liquidity Providers at 

higher monthly volume levels. 

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 

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 

The foregoing rule change has become 

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

of the Act 6 and subparagraph (f)(2) of 

Rule 19b–4 thereunder.7 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–2008–78 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CBOE–2008–78. 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 inspection and copying 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 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–

2008–78, and should be submitted on or 

before September 2, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18602 Filed 8–11–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58300; File No. SR–NSCC–

2008–06] 

Self-Regulatory Organizations; The 

National Securities Clearing 

Corporation; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Enhance the Equity 

Options Service To Include Bond 

Options 

August 4, 2008. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

July 25, 2008, the National Securities 

Clearing Corporation (‘‘NSCC’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change described in Items 

I, II, and III below, which items have 

been prepared primarily by NSCC. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

NSCC proposes to amend its rules in 

order to enhance the NSCC Equity 

Options Service by extending similar 

processing to bond options transactions. 

The enhanced service will be called the 

‘‘NSCC Equity Options and Bond 

Options Service.’’2


sroberts on PROD1PC70 with NOTICES