Document ID: SEC-2015-0914-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2015-05-28T04:00Z

[Federal Register Volume 80, Number 102 (Thursday, May 28, 2015)]
[Notices]
[Pages 30517-30519]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12828]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75022; File No. SR-CBOE-2015-049]

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

May 21, 2015.
    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 May 11, 2015, Chicago Board Options Exchange, Incorporated 
(the ``Exchange'' or ``CBOE'') 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. 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. The text of the 
proposed rule change is available on the Exchange's Web site (http://

[[Page 30518]]

www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), 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, the Exchange 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
    The Exchange proposes to amend its Fees Schedule, effective May 11, 
2015. On January 2, 2015, the Exchange established an FBW fee for an 
updated version of FBW (``FBW2''), which the Exchange had anticipated 
making available shortly thereafter to all TPHs.\3\ The Exchange at 
that time also proposed adopting a fee waiver for the months of January 
and February 2015, as well as provide that, after March 1, 2015, the 
monthly fee for FBW2 login IDs would be waived for the first month. The 
launch of FBW2 however, was delayed and as such the Exchange extended 
the fee waiver for the months of March and April 2015. Additionally, 
the Exchange provided that after May 1, 2015 (instead of March 1, 2015) 
the monthly fee for FBW2 login IDs would be waived for the first month. 
The Exchange notes that to date, FBW2 has not launched. The Exchange 
anticipates launching FBW2 on May 11, 2015. In light of this delay, the 
Exchange proposes to delete the now outdated language and extend the 
fee waiver for the months of May and June 2015. Additionally, the 
Exchange will provide that after July 1, 2015 (instead of May 1, 2015) 
the monthly fee for FBW2 login IDs will be waived for the first 
month.\4\ The purpose of the proposed fee waivers is to give new users 
time to become familiar with and fully acclimated to the new FBW 
workstation functionality. The Exchange notes that after July 2015 (and 
absent an applicable fee waiver noted above), TPHs will be charged each 
of $400 for FBW and FBW2 (i.e., total of $800) if such users continue 
to use both FBW and FBW2.
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    \3\ See Securities Exchange Act Release No. 74134 (January 26, 
2015), 80 FR 20 [sic] (January 30, 2015) (SR-CBOE-2015-005). The 
adopted fee for FBW2 is the same as the existing FBW fee (i.e., $400 
per month (per login ID).
    \4\ For example, if a user adds a new login ID in July 2015, the 
user would receive a fee waiver for that login ID for July 2015.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') and the rules and 
regulations thereunder applicable to the Exchange and, in particular, 
the requirements of Section 6(b) of the Act.\5\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \6\ requirements that the rules of an exchange be 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitation 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest. Additionally, 
the Exchange believes the proposed rule change is consistent with 
Section 6(b)(4) of the Act,\7\ which requires that Exchange rules 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among its Trading Permit Holders and other persons using 
its facilities.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ 15 U.S.C. 78f(b)(4).
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    In particular, the Exchange believes it is reasonable to provide a 
waiver of FBW2 fees for the months of May and June 2015 because it 
allows new users time to become familiar with and fully acclimated to 
the new FBW functionality and incentivizes the users to begin this 
process as soon as the new functionality becomes available. The 
Exchange believes it is reasonable to provide a waiver for the first 
month for a new login ID beginning July 1, 2015, because it allows a 
new user after June 2015 to fully acclimate to the new FBW 
functionality. Additionally, the Exchange notes it is merely extending 
existing waivers to correspond with the delayed launch of FBW2.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange 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, because it applies to all 
Trading Permit Holders. The Exchange believes this proposal will not 
cause an unnecessary burden on intermarket competition because the 
proposal only affects trading on CBOE. To the extent that the proposed 
changes make CBOE a more attractive marketplace for market participants 
at other exchanges, such market participants are welcome to become CBOE 
market participants.

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 
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 \8\ and paragraph (f) of Rule 19b-4 \9\ 
thereunder. At any time within 60 days of the filing of the proposed 
rule change, the Commission summarily may temporarily suspend 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. If the Commission 
takes such action, the Commission will institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f).
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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 email to rule-comments@sec.gov. Please include 
File Number SR-CBOE-2015-049 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.

[[Page 30519]]

All submissions should refer to File Number SR-CBOE-2015-049. This file 
number should be included on the subject line if email 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 Web site viewing and 
printing 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-2015-049 and should be 
submitted on or before June 18, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-12828 Filed 5-27-15; 8:45 am]
 BILLING CODE 8011-01-P