Document ID: SEC-2007-0930-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Chicago Board Options Exchange, Inc.
Posted Date: 2007-07-10T04:00Z

[Federal Register: July 10, 2007 (Volume 72, Number 131)]
[Notices]               
[Page 37554-37555]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10jy07-94]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56000; File No. SR-CBOE-2007-73]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of Proposed Rule Change To Assess, on a 
Retroactive Basis, Certain CBOE and CBSX Market Data Fees

July 2, 2007.
    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 June 28, 2007, 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 substantially 
prepared by the Exchange. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its Fees Schedule to assess, 
retroactive to April 1, 2007, fees relating to CBOE and CBOE Stock 
Exchange (``CBSX'') market data that were implemented on June 1, 2007. 
The text of the proposed rule change is available at CBOE, the 
Commission's Public Reference Room, and http://www.cboe.org/legal.

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 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
    On June 1, 2007, the Exchange implemented new fees relating to 
TickerXpress (``TX''), which is an Exchange service that supplies 
market data to Exchange market-makers trading on the Hybrid Trading 
System.\3\ Specifically, the Exchange increased the monthly fee for 
enhanced TX market data from $200 per month to $300 per month and 
adopted a fee of $100 per TX user per month for use of TX software for 
the use and display of market data. The Exchange proposes to assess 
these fees for the period April 1, 2007 through

[[Page 37555]]

May 31, 2007, to help compensate the Exchange for its increased costs 
in providing the TX data and to help offset the license fees paid by 
the Exchange to its third-party provider for making the TX software 
available to users during this time period.
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    \3\ See Securities Exchange Act Release No. 55882 (June 8, 
2007), 72 FR 32931 (June 14, 2007) (File No. SR-CBOE-2007-54).
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    On June 1, 2007, the Exchange adopted a monthly fee to recoup the 
fees CBSX pays a third-party market data vendor and other parties to 
help establish facilities at CBSX through which the third-party market 
data vendor can provide CBSX participants with certain market data.\4\ 
The fee is equal to $19,400 divided by the number of CBSX participants 
receiving the market data. The Exchange proposes to assess this fee for 
the period April 1, 2007 through May 31, 2007, to recoup the fees CBSX 
paid during this time period for providing the infrastructure to make 
the market data available to CBSX participants.
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    \4\ See id.
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2. Statutory Basis
    CBOE believes the proposed rule change is consistent with Section 
6(b) of the Act \5\ in general, and furthers the objectives of Section 
6(b)(4) of the Act \6\ in particular, in that it is designed to provide 
for the equitable allocation of reasonable dues, fees, and other 
charges among CBOE members.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would 
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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding, or (ii) as to 
which the Exchange consents, the Commission will:
    (A) By order approve the proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be 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 e-mail to rule-comments@sec.gov. Please include 

File Number SR-CBOE-2007-73 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-2007-73. 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 10:00 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-2007-73 and should be 
submitted on or before July 31, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-13310 Filed 7-9-07; 8:45 am]

BILLING CODE 8010-01-P