Document ID: SEC-2009-0184-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2009-02-10T05:00Z

[Federal Register: February 10, 2009 (Volume 74, Number 26)]
[Notices]
[Page 6677-6678]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10fe09-124]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59355; File No. SR-CBOE-2009-004]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to the Options Regulatory Fee

February 3, 2009.
    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 January 30, 2009, the Chicago Board Options Exchange, Incorporated
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 CBOE. 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

    Chicago Board Options Exchange, Incorporated (``CBOE'' or
``Exchange'') proposes to amend its Fees Schedule relating to the
Options Regulatory Fee. 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's Public
Reference Room.

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

    In its filing with the Commission, CBOE 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. CBOE 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

(a) Purpose
    In October 2008, the Exchange filed a proposed rule change to
eliminate Registered Representative Fees and establish a transaction-
based ``Options Regulatory Fee'' to become effective on January 1, 2009
(``ORF'').\3\ In December 2008, the Exchange filed a proposed rule
change to waive the fee until February 1, 2009, to allow additional
time for the Exchange and OCC to implement the procedures to be used by
OCC to bill and collect the ORF.\4\
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    \3\ See Securities Exchange Act Release No. 58817 (October 20,
2008), 73 FR 63744 (October 27, 2008). The ORF is $.0045 per
contract and is assessed to each member for all options transactions
executed by the member that are cleared by The Options Clearing
Corporation (``OCC'') in the customer range (i.e., that clear in a
customer account at OCC), excluding Options Intermarket Linkage Plan
(``Linkage'') orders. The ORF is imposed upon all such transactions
executed by a member, even if such transactions do not take place on
the Exchange. The ORF is collected indirectly from members through
their clearing firms by OCC on behalf of the Exchange.
    \4\ See Securities Exchange Act Release No. 59182 (December 30,
2008),
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    The Exchange proposes to again waive the ORF until March 1, 2009.
The Exchange is waiving the ORF to provide firms time to put in place
appropriate procedures to implement the fee.
    The Exchange notes that it is also in the process of evaluating the
amount of the ORF to ensure that it does not experience a regulatory
revenue shortfall as the result of the waiver of the ORF for the first
two months of 2009. If the Exchange determines to change the ORF rate,
it will file a proposed rule change and provide members with notice of
the rate change as far in advance of March 1, 2009 as possible.
(b) Statutory Basis
    The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Securities Exchange Act of 1934 (``Act''),\5\ in
general, and furthers the objectives of Section 6(b)(4) \6\ of the Act
in particular, in that it is designed to provide for the equitable
allocation of reasonable dues, fees, and other charges among its
members and other persons using its facilities. The Exchange believes
it is appropriate to waive the ORF for February 2009 to allow firms
additional time to put in place appropriate procedures to implement the
fee.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 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 that is not necessary or appropriate in
furtherance of purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others

    No written comments were solicited or received with respect to 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 subparagraph (f)(2) of Rule 19b-4 \8\
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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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 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-2009-004 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.

    All submissions should refer to File Number SR-CBOE-2009-004. 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

[[Page 6678]]

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 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 publicly available. All submissions should refer to
File Number SR-CBOE-2009-004 and should be submitted on or before March
3, 2009.
    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).

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-2657 Filed 2-9-09; 8:45 am]

BILLING CODE 8011-01-P