Document ID: SEC-2007-0072-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Chicago Board Options Exchange, Inc.
Posted Date: 2007-01-17T05:00Z

[Federal Register: January 17, 2007 (Volume 72, Number 10)]
[Notices]               
[Page 2048]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17ja07-87]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55062; File No. SR-CBOE-2006-88]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Granting Approval to Proposed Rule Change To Codify 
a Fee Schedule for the Sale of Open and Close Volume Data on CBOE 
Listed Options by Market Data Express, LLC

January 8, 2007.
    On November 3, 2006, the Chicago Board Options Exchange, 
Incorporated (``CBOE'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of 
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to codify a fee schedule for the 
sale of open and close volume data on CBOE listed options by Market 
Data Express, LLC (``MDX''), a wholly-owned subsidiary of CBOE. The 
proposed rule change was published for comment in the Federal Register 
on November 27, 2006.\3\ The Commission received no comments regarding 
the proposal. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 54771 (November 16, 
2006), 71 FR 68657 (the ``Notice'').
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    In the Notice, the Exchange represented that it creates volume data 
for each CBOE listed option that consists of opening buys and opening 
sells and closing buys and closing sells (``Open/Close Data''). CBOE 
further represented that MDX offers this Open/Close Data for sale to 
CBOE members and non-members and that the fees assessed by MDX for the 
Open/Close Data are set forth in the Price List on MDX's Web site. CBOE 
members and non-members are charged the same fees for the Open/Close 
Data.
    Under the proposal, customers may purchase Open/Close Data on a 
subscription basis or by ad hoc request. Daily Open/Close Data covering 
all CBOE listed options \4\ would be available for purchase by 
subscribing to the Daily Update service at a cost of $600 per month. 
Subscribers to the Daily Update service would receive a daily data file 
via download from MDX's Web site. Historical Open/Close Data covering 
all CBOE listed options may be purchased on an ad hoc request basis and 
is delivered via DVD. The charge for Historical Open/Close Data 
covering all CBOE listed options would be $7,200 per year for requests 
for one to four years of data. Requests for five or more years of 
Historical Open/Close Data would receive a 50% discount beginning with 
the fifth year of data (i.e., MDX charges $7,200 for each of the first 
four years of data and $3,600 for year five and for each subsequent 
year of data). Alternatively, a customer may purchase Historical Open/
Close Data on an individual CBOE listed option at a cost of $4.50 per 
listed option per month. This data would be available via download from 
MDX's Web site. A 50% discount would be applied for requests for ten or 
more years of data, beginning with the tenth year of data.
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    \4\ Although the proposed rule change refers to Open/Close Data 
covering all CBOE listed securities, the CBOE confirmed that the 
Open/Close Data is available solely for all CBOE listed options. 
Telephone conversation between Jaime Galvan, Assistant Secretary, 
CBOE and David Michehl, Special Counsel, Division of Market 
Regulation, Commission on January 8, 2007.
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    The Commission has reviewed carefully the proposed rule change and 
finds that the proposedrule change is consistent with the requirements 
of the Act and the rules and regulations thereunder applicable to a 
national securities exchange and, in particular, the requirements of 
Section 6(b)(4) of the Act,\5\ which requires, among other things, 
CBOE's rules be designed to provide for the equitable allocation of 
reasonable dues, fees, and other charges among CBOE members and issuers 
and other persons using its facilities.\6\
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-CBOE-2006-88) is hereby 
approved.
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    \5\ 15 U.S.C. 78f(b)(4).
    \6\ In approving this proposed rule change the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78s(b)(2).
    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-540 Filed 1-16-07; 8:45 am]

BILLING CODE 8011-01-P