Document ID: SEC-2008-1392-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2008-10-08T04:00Z

[Federal Register: October 8, 2008 (Volume 73, Number 196)]
[Notices]               
[Page 58999-59000]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08oc08-105]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58700; File No. SR-CBOE-2008-100]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change to Amend its Fees Schedule

October 1, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on September 22, 2008, Chicago Board Options Exchange, 
Incorporated (``Exchange'' or ``CBOE'') filed with the Securities and 
Exchange Commission (the ``Commission'') the proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
by the Exchange. The Exchange has designated this proposal as one 
establishing or changing a due, fee, or other charge imposed by CBOE 
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
thereunder.\4\ 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

    The Exchange proposes to amend its Fees Schedule to establish fees 
for transactions in CBOE S&P 500 BuyWrite Index (1/10th value) 
(``BXO'') options and CBOE S&P 500 Three-Month Realized Volatility 
(``RUH'') options. 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, the self-regulatory organization 
included

[[Page 59000]]

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 those 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 parts of 
such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange recently received approval to list and trade options 
on BXO and RUH, both of which are calculated by the Exchange.\5\ The 
purpose of this rule change is to establish transaction fees for these 
new products. The Exchange states that the proposed transactions fees 
for BXO options and RUH options are identical to those established for 
options on volatility indexes.\6\
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    \5\ See Securities Exchange Act Release Nos. 58207 (July 22, 
2008), 73 FR 43963 (July 29, 2008) (SR-CBOE-2008-26) and 58171 (July 
16, 2008), 73 FR 422841 (July 23, 2008) (SR-CBOE-2008-31).
    \6\ For purposes of CBOE's Fees Schedule, RUH options shall be 
treated as index options.
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    The amount of the transactions fees for BXO and RUH options shall 
be as follows:
     $0.20 per contract for Market-Maker, Designated Primary 
Market-Maker and Remote Market-Maker transactions; \7\
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    \7\ This is the standard rate that is subject to the Liquidity 
Provider Sliding Scale as set forth in Footnote 10 to the Fees 
Schedule.
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     $0.20 per contract for member firm proprietary 
transactions;
     $0.25 per contract for manually executed broker-dealer 
transactions;
     $0.45 per contract for electronically executed broker-
dealer transactions;
     $0.40 per contract for voluntary professional 
transactions;
     $0.40 per contract for customer transactions; and
     $0.10 per contract CFLEX surcharge fee.
    The Exchange also proposes to adopt a $.06 per contract surcharge 
fee on all non-public customer transactions in BXO and RUH options to 
help the Exchange recoup license fees the Exchange pays to the 
reporting authority. The proposed surcharge fee is identical to the 
surcharge fee currently assessed non-public customer transactions in 
options on the S&P 100 Index (``OEX'' and ``XEO''), S&P 500 Index 
(``SPX'') and volatility indexes.
    The Exchange's Liquidity Provider Sliding Scale \8\ shall apply to 
transaction fees in BXO and RUH options, but the Exchange's marketing 
fee \9\ shall not apply. The Exchange believes the rule change will 
further the Exchange's goal of introducing new products to the 
marketplace that are competitively priced.\10\
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    \8\ See Footnote 10 of the Fees Schedule.
    \9\ See Footnote 6 of the Fees Schedule.
    \10\ Linkage order fees are inapplicable for options on CBOE's 
proprietary products.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\11\ in general, and furthers the objectives of Section 6(b)(4) 
\12\ 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.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 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 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

    The Exchange neither solicited nor received comments on the 
proposal.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed 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 \13\ and 
subparagraph (f)(2) of Rule 19b-4 \14\ 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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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 C.F.R. 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-2008-100 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-2008-100. 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 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-2008-100 and should be 
submitted on or before October 29, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-23763 Filed 10-7-08; 8:45 am]

BILLING CODE 8011-01-P