Document ID: SEC-2013-0374-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2013-02-21T05:00Z

[Federal Register Volume 78, Number 35 (Thursday, February 21, 2013)]
[Notices]
[Pages 12119-12121]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-03968]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68932; File No. SR-CBOE-2013-021]

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

February 14, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\

[[Page 12120]]

notice is hereby given that on February 6, 2013, Chicago Board Options 
Exchange, Incorporated (the ``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 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 the 
Substance of the Proposed Rule Change

    The Exchange is proposing to amend the text in the Fees Schedule. 
The text of the proposed rule change is available on the Exchange's Web 
site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), 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 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 is proposing to update the text in its Fees Schedule 
to clarify the fee exemptions in the ``Index Options Rate Table.'' The 
proposed change in this filing is solely administrative and will not 
amend any current fees. Currently, the Index Options Rate Table Section 
of the Exchange Fee Schedule has two different customer transaction 
fees. Specifically, the Exchange charges a $0.18 transaction fee per 
contract for all customer transactions in all index products excluding 
``SPX, SPXW, SRO, OEX, XEO, VIX and Volatility Indexes.'' In addition, 
however, in a recent rule filing, the Exchange has eliminated this 
customer transaction fee in XSP index option transactions.\3\ The 
Exchange is proposing to clarify in the second category that the $0.18 
transaction fee per contract is applicable to ``All Index Products 
Excluding SPX, SPXW, SRO, OEX, XEO, VIX, XSP and VOLATILITY INDEXES.''
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    \3\ See SR-CBOE-2013-015 (January 30, 2013) (immediately 
effective rule change to eliminate the customer transaction fee for 
XSP index options).
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    The Exchange believes the proposed rule change will make it clear 
that there is no $0.18 customer transaction fee per contract in 
transaction [sic] in XSP index options. The Exchange believes the 
proposed addition of rule text will provide greater clarity for 
customers. Thus, more customers may engage in XSP index options trading 
as a result of a greater awareness of the lower fees associated with 
such transactions. This would bring greater liquidity to the market, 
which benefits all market participants.
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.\4\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \5\ 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 
[sic] 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 the Section 6(b)(5) \6\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ Id.
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    In particular, the Exchange believes that the proposed rule change 
will promote just and equitable principles of trade by clarifying to 
Trading Permit Holders that there is no fee for customer transaction 
fees in XSP index option trading. Providing a clearer representation of 
fees in the Exchange fee schedule will remove any confusion that may 
exist with the current wording in the Fees Schedule. In addition, by 
making the fee waiver more explicit, the proposed rule change will 
encourage more customer transactions in XSP index options. The proposed 
changes are equitable and not unfairly discriminatory because bringing 
clarity to the Exchange Fees Schedule benefits all Trading Permit 
Holders. In addition, clarifying that there are not customer 
transaction fees in XSP index option trading would bring greater 
liquidity to the market, which benefits all market participants.

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 the purposes of the Act. The Exchange does not believe 
the proposed administrative changes to the Exchange Fees Schedule will 
cause any unnecessary burden on intramarket competition because nothing 
is changing substantively. The Exchange is merely adding additional 
language to create more clarity. In addition, the Exchange does not 
believe the propose rule change will cause any unnecessary burden on 
intermarket competition because the Fees Schedule will continue to 
function in the same way it currently does. The proposed changes are 
only administrative to clarify the Fees in the Exchange Fees Schedule.

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 \7\ and paragraph (f) of Rule 19b-4 \8\ 
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.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 C.F.R. 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,

[[Page 12121]]

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-2013-021 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-2013-021. 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 such 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-2013-021, and should be 
submitted on or before March 14, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-03968 Filed 2-20-13; 8:45 am]
BILLING CODE 8011-01-P