Document ID: SEC-2008-0366-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Chicago Board Options Exchange, Inc.
Posted Date: 2008-03-07T05:00Z

[Federal Register: March 7, 2008 (Volume 73, Number 46)]
[Notices]               
[Page 12478-12479]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07mr08-129]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57411; File No. SR-CBOE-2008-25]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to the Temporary Membership Status Access Fee

March 3, 2008.
    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 February 29, 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 the 
Exchange. CBOE has designated this proposal as one establishing or 
changing a due, fee, or other charge imposed by the Exchange under 
section 19(b)(3)(A),\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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    CBOE proposes to adjust the monthly access fee for persons granted 
temporary CBOE membership status (``Temporary Members'') pursuant to 
Interpretation and Policy .02 under CBOE Rule 3.19 (``Rule 3.19.02''). 
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'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, CBOE included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it received on the proposal. 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
    The current access fee for Temporary Members under Rule 3.19.02 \5\ 
is $7,354 per month and took effect on February 1, 2008. The Exchange 
proposes to revise the access fee to be $8,468 per month commencing on 
March 1, 2008.
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    \5\ See Securities Exchange Act Release No. 56458 (September 18, 
2007), 72 FR 54309 (September 24, 2007) (SR-CBOE-2007-107) for a 
description of the Temporary Membership status under Rule 3.19.02.
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    The Exchange used the following process to set the proposed access 
fee: The Exchange polled each of the clearing firms that assists in 
facilitating at least 10% of the transferable CBOE membership leases 
and obtained the Clearing Firm Floating Monthly Rate \6\ designated by 
each of these clearing firms for the month of March 2008. The Exchange 
then set the proposed access fee at an amount equal to the highest of 
these Clearing Firm Floating Monthly Rates.
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    \6\ The term ``Clearing Firm Floating Monthly Rate'' refers to 
the floating monthly rate that a clearing firm designates, in 
connection with transferable membership leases that the clearing 
firm assisted in facilitating, for leases that utilize that floating 
monthly rate.
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    The Exchange used the same process to set the proposed access fee 
that it used to set the current access fee. The only difference is that 
the Exchange used Clearing Firm Floating Monthly Rate information for 
the month of March 2008 to set the proposed access fee (instead of 
Clearing Firm Floating Monthly Rate information for the month of 
February 2008 as was used to set the current access fee) in order to 
take into account changes in Clearing Firm Floating Monthly Rates for 
the month of March 2008.
    The Exchange believes that the process used to set the proposed 
access fee and the proposed access fee itself are appropriate for the 
same reasons set forth in CBOE rule filing SR-CBOE-2008-12 in support 
of that process and the current access fee.\7\
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    \7\ See Securities Exchange Act Release No. 57293 (February 8, 
2008), 73 FR 8729 (February 14, 2008) (SR-CBOE-2008-12), which 
established the current access fee, for detail regarding the 
rationale in support of the current access fee and the process used 
to set that fee, which is also applicable to this proposed rule 
change as well.
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    The proposed access fee will remain in effect until such time 
either that the Exchange submits a further rule filing pursuant to 
section 19(b)(3)(A)(ii) of the

[[Page 12479]]

Act \8\ to modify the proposed access fee or the Temporary Membership 
status under Rule 3.19.02 is terminated. Accordingly, the Exchange may 
further adjust the proposed access fee in the future if the Exchange 
determines that it would be appropriate to do so taking into 
consideration lease rates for transferable CBOE memberships prevailing 
at that time.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
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    The procedural provisions of the CBOE Fee Schedule related to the 
assessment of the proposed access fee are not proposed to be changed 
and will remain the same as the current procedural provisions regarding 
the assessment of the current access fee.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\9\ in general, and furthers the 
objectives of section 6(b)(4) of the Act,\10\ in particular, in that it 
is designed to provide for the equitable allocation of reasonable dues, 
fees, and other charges among persons using its facilities.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4).
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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

    Because the foregoing 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 \11\ and subparagraph (f)(2) 
of Rule 19b-4 \12\ thereunder. 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.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(2).
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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 rule-comments@sec.gov. Please include 
File Number SR-CBOE-2008-25 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

    All submissions should refer to File Number SR-CBOE-2008-25. 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 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 No. SR-CBOE-2008-25 and should be 
submitted on or before March 28, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-4420 Filed 3-6-08; 8:45 am]

BILLING CODE 8011-01-P