Document ID: SEC-2010-0273-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2010-02-23T05:00Z

[Federal Register Volume 75, Number 35 (Tuesday, February 23, 2010)]
[Notices]
[Pages 8161-8163]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-3468]

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SECURITIES AND EXCHANGE COMMISSION

Release No. 34-61523; File No. SR-CBOE-2010-013]

 Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to the CBSX Market Data Infrastructure Fee

February 16, 2010.
    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 2, 2010, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' or the ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule

[[Page 8162]]

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 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)(ii).
    \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

    Chicago Board Options Exchange, Incorporated (``CBOE'' or 
``Exchange'') proposes to amend the CBOE and CBSX Fees Schedules 
relating to the CBSX Market Data Infrastructure Fee. 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

(a) Purpose
    The Exchange charges CBSX market participants a monthly fee to 
recoup fees the Exchange pays a third party market data vendor and 
other parties to help establish facilities at the Exchange through 
which the vendor can provide CBSX participants with certain market 
data.\5\ The fee has been amended three times.\6\ The current amount of 
the fee is $10,800 divided by the number of CBSX participants receiving 
the data.
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    \5\ See Exchange Act Release No. 55882 (June 8, 2007), 72 FR 
32931 (June 14, 2007).
    \6\ See Exchange Act Release No. 56000 (July 2, 2007), 72 FR 
37554 (July 10, 2007), Exchange Act Release No. 57472 (March 11, 
2008), 73 FR 14515 (March 18, 2008), and Exchange Act Release No. 
61121 (December 7, 2009), 74 FR 66178 (December 14, 2009).
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    The Exchange proposes to amend the fee in a couple of respects. 
First, the Exchange proposes to amend the CBSX Fees Schedule to remove 
the current fee amount and replace it with a statement that the 
Exchange will pass-through to participants receiving the data the total 
costs incurred by the Exchange to provide the market data 
infrastructure. Each participant would continue to be assessed on a 
monthly basis an amount equal to the Exchange's total monthly cost 
divided by the number of participants receiving the data. The Exchange 
believes this change is reasonable and appropriate in that the Exchange 
pays several third party costs (such as for equipment upgrades and 
connectivity) and these costs can vary frequently. The Exchange 
represents that any fee passed through to participants pursuant to this 
filing will reflect only the actual costs incurred by the Exchange in 
providing the market data infrastructure. Due to certain fixed costs 
incurred by the Exchange, each participant receiving the data as of 
February 15, 2010 will be obligated to pay its share of the fee through 
June 30, 2010, even if such participant terminates its receipt of the 
data prior to June 30, 2010.
    Second, the Exchange proposes to add the fee to the CBOE Fees 
Schedule (under ``Miscellaneous Fees'') so that the fee would also 
apply to any CBOE member receiving the data that is not also a CBSX 
participant. Thus, if in addition to CBSX participants any CBOE member 
that is not also a CBSX participant receives the data, the fee would be 
divided by the number of CBOE members and CBSX participants receiving 
the data.
(b) Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Securities Exchange Act of 1934 (``Act''),\7\ in 
general, and furthers the objectives of Section 6(b)(4) \8\ of the Act 
in particular, in that it is designed to provide for the equitable 
allocation of reasonable dues, fees, and other charges among its 
members and other persons using its facilities. The proposed rule 
change would help the Exchange to continue providing its members with 
an infrastructure for receiving certain third party market data by 
allowing the Exchange to pass-through its infrastructure costs in a 
more efficient manner.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 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 [sic] 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 \9\ and subparagraph (f)(2) of Rule 19b-4 \10\ 
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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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 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-2010-013 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-2010-013. 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/

[[Page 8163]]

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 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-2010-013 and should be submitted on or before March 16, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-3468 Filed 2-22-10; 8:45 am]
BILLING CODE 8011-01-P