Document ID: SEC-2015-1196-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2015-07-17T04:00Z

[Federal Register Volume 80, Number 137 (Friday, July 17, 2015)]
[Notices]
[Pages 42567-42569]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-17534]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75442; File No. SR-CBOE-2015-066]

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

July 13, 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 July 1, 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

[[Page 42568]]

Exchange's Web site (http://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 July 1, 
2015.
    On May 11, 2015, the Exchange launched an updated version of the 
Floor Broker Workstation (``FBW''), (i.e., ``FBW2''). In conjunction 
with the launch of FBW2, the Exchange submitted a rule filing which 
provided for a fee waiver for the months of May and June 2015, as well 
as provided that, after July 1, 2015, the monthly fee for FBW2 login 
IDs would be waived for the first month.\3\ The Exchange also noted in 
that filing 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. The 
Exchange notes that new features are anticipated to become available on 
FBW2 in August 2015. In the meanwhile, the Exchange wishes to encourage 
FBW users to begin (or continue) transitioning to FBW2 logins and 
provide additional time to become acclimated to FBW2 while still being 
able to use FBW logins. As such, the Exchange does not wish to charge a 
TPH $400 for using both FBW and FBW2 login IDs. Accordingly, the 
Exchange proposes to delete now outdated language and provide that for 
every FBW login a TPH has, the FBW2 fee will be waived for the months 
of July 2015 through September 2015 on a one-to-one basis.\4\ 
Additionally, in light of the proposed changes, the Exchange no longer 
wishes to continue to provide a waiver of the FBW2 fee for the first 
month for new FBW2 login IDS.
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    \3\ See Securities Exchange Act Release No. 75022 (May 21, 
2015), 80 FR 102 [sic] (May 28, 2015) (SR-CBOE-2015-049). 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 TPH has two FBW logins and two FBW2 
logins, the total monthly fee would be $800 ($400 for each FBW 
login). Another example is if a TPH has two FBW logins and three 
FBW2 logins, the total monthly fee would be $1,200 ($400 for each 
FBW login and $400 for the additional FBW2 login).
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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 each FBW login a TPH has for the months of July 
2015 through September 2015 because it encourages users to use and 
become familiar with the updated FBW2 login IDs while waiting for 
certain features to be implemented on FBW2. Additionally, the Exchange 
notes the proposed rule change provides users additional time to become 
familiar with and fully acclimated to the new FBW functionality. The 
Exchange believes it is reasonable to eliminate the waiver for the 
first month for a new login ID currently beginning July 1, 2015, 
because the Exchange is also providing for additional waivers of FBW2 
logins as described above and wants to encourage users to begin 
transitioning to FBW2 logins prior to the upcoming discontinuation of 
FBW logins. The Exchange believes the proposed changes are equitable 
and not unfairly discriminatory because it applies to all users 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:

[[Page 42569]]

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-2015-066 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-2015-066. 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-2015-066 and should be 
submitted on or before August 7, 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. 2015-17534 Filed 7-16-15; 8:45 am]
BILLING CODE 8011-01-P