Document ID: SEC-2009-1838-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating To Increasing the Session Fee for the Regulatory Element of Continuing Education Requirements
Posted Date: 2009-12-30T05:00Z

[Federal Register: December 30, 2009 (Volume 74, Number 249)]
[Notices]               
[Page 69168-69169]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30de09-129]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61232; File No. SR-CBOE-2009-094]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating To Increasing the Session Fee for the Regulatory 
Element of Continuing Education Requirements

December 23, 2009.
    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 December 17, 2009, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' or the ``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 CBOE. 
CBOE has designated this proposal as one establishing or changing a 
due, fee, or other charge applicable only to a member under Section 
19(b)(3)(A)(ii) of the Act \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 parties.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    CBOE proposes to amend its Fees Schedule to increase the session 
fee for the Regulatory Element of the Continuing Education requirements 
of Rule 9.3A with an implementation date January 4, 2010. The text of 
the proposed rule change is available on the Exchange's Web site at 
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. The 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 Regulatory Element, a computer-based education program 
administered by the Financial Industry Regulatory Authority, Inc. 
(``FINRA'') (f/k/a National Association of Securities Dealers, Inc. 
(``NASD'')) to help ensure that registered persons are kept up-to-date 
on regulatory, compliance, and sales practice matters in the industry, 
is a component of the Securities Industry Continuing Education Program 
(``Program'') under Rule 9.3A. The Securities Industry/Regulatory 
Council on Continuing Education (``Council'') was organized in 1995 to 
facilitate cooperative industry/regulatory coordination of the 
administration and future development of the Program in keeping with 
applicable industry regulations and changing industry needs. Its roles 
include recommending and helping develop specific content and questions 
for the Regulatory Element, defining minimum core curricula for the 
Firm Element component of the Program, and developing and updating 
information about the Program for industry-wide dissemination.\5\
---------------------------------------------------------------------------

    \5\ The Council currently consists of 20 individuals, 14 of whom 
are securities industry professionals and six of whom represent 
self-regulatory organizations, including CBOE.
---------------------------------------------------------------------------

    It is the Council's responsibility to maintain the Program on a 
revenue neutral basis while maintaining adequate reserves for 
unanticipated future expenditures.\6\ CBOE members currently pay $75 
each time one of their registered persons participates in the 
Regulatory Element. Following the consolidation of NASD's and NYSE 
Regulation's member regulation operations and the creation of FINRA, 
FINRA assumed responsibility for all aspects of the Program and 
thereafter conducted a financial review and evaluation of the program's 
budget. Based on this assessment, FINRA determined that an increase in 
the Regulatory Element session fee is necessary to cover the full costs 
associated with the Program, including costs associated with the 
redesign of the Regulatory Element.\7\
---------------------------------------------------------------------------

    \6\ The Regulatory Element session fee was initially set at $75 
when NASD established the continuing education requirements in 1995.
    \7\ The redesign updates the presentation and content of the 
Regulatory Element to take advantage of the latest innovations in 
adult learning theories and technological advances. This is the 
first such large-scale redesign since the inception of the Program 
and should result in a significantly improved product and experience 
for members. FINRA will first implement the redesign of the General 
Program (S101) and the Series 6 Program (S106). The redesign of the 
Supervisors Program (S201) will be implemented at a later stage.
---------------------------------------------------------------------------

    CBOE's proposed implementation date is January 4, 2010.\8\
---------------------------------------------------------------------------

    \8\ The Commission notes that this proposed rule change would 
increase the Regulatory Element session fee from $75 to $100.
---------------------------------------------------------------------------

2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Securities Exchange Act of 1934 (``Act'') \9\, in general, and furthers 
the objectives of Sections 6(b)(4) \10\ and 6(b)(5) \11\ 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 and other persons using its facilities, and that CBOE rules 
must be designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, and, in 
general, to protect investors and the public interest. CBOE believes 
that the proposed rule change is designed to accomplish these ends by 
enabling the Program to be maintained on a revenue neutral basis while 
maintaining adequate reserves for unanticipated future expenditures.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4).
    \11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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 [sic] purposes of the Act.

[[Page 69169]]

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 \12\ and subparagraph (f)(2) 
of Rule 19b-4 \13\ 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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-2009-094 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-CBOE-2009-094. 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 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-2009-094 and should be submitted on or before January 20, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
Florence E. Harmon,
Deputy Secretary.
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. E9-30928 Filed 12-29-09; 8:45 am]

BILLING CODE 8011-01-P