Document ID: SEC-2009-0975-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its CBOE Stock Exchange ("CBSX") Fees Schedule To Establish Regulatory and Inactivity Fees
Posted Date: 2009-07-16T04:00Z

[Federal Register: July 16, 2009 (Volume 74, Number 135)]
[Notices]               
[Page 34608-34609]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16jy09-87]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60264; File No. SR-CBOE-2009-045]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Its CBOE Stock Exchange (``CBSX'') Fees 
Schedule To Establish Regulatory and Inactivity Fees

July 8, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on July 1, 2009, the 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 Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its CBOE Stock Exchange (``CBSX'') 
Fees Schedule to establish regulatory and inactivity fees. 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.

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 self-regulatory organization 
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 those 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 parts of such statements.

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

1. Purpose
    The Exchange proposes to amend its CBSX Fees Schedule to impose new 
CBSX regulatory fees \3\ and an inactivity fee. \4\ Currently, CBOE 
charges no fee to CBSX Trading Permit Holders who either apply for CBOE 
to act as their designated examining authority or for whom CBOE acts as 
the designated examining authority. However, processing these 
applications and acting as the regulatory authority can be costly and 
time-intensive, so it is necessary that CBOE be compensated for these 
expenses so that CBOE can pay the costs associated with them. The 
proposed Inactivity Fee will ensure that Trading Permit Holders are 
sufficiently active on CBSX (CBSX is only authorized to issue 100 CBSX 
Trading Permits). The Exchange believes the regulatory fees are 
reasonable in that they help offset costs incurred in connection with 
CBSX regulation. The Exchange also believes the inactivity fee is 
appropriate since CBSX is only permitted to issue a finite number of 
Trading Permits and when

[[Page 34609]]

permits are occupied by users that don't engage in meaningful trading 
on CBSX, it could be at the expense of a potential permit holder that 
might be willing to add meaningful liquidity to the CBSX marketplace.
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    \3\ The Commission notes that the proposed regulatory fees are 
as follows:
    Initial Regulatory Review Fee: This fee is charged to any CBSX 
Trading Permit Holder applicant that applies for a CBSX Trading 
Permit that, if approved, would result in CBOE serving as the 
Trading Permit Holder's designated examining authority. The amount 
of the fee is $2,500.
    Monthly Regulatory Fee: This fee is charged to any CBSX Trading 
Permit Holder for whom CBOE acts as the Trading Permit Holder's 
designated examining authority. The amount of the fee is $2,500 per 
month.
    \4\ The Commission notes that the proposed inactivity fee is as 
follows:
     This fee is charged to any CBSX Trading Permit Holder that 
trades less than an average of 50,000 shares per day over a calendar 
month period. This fee will be calculated monthly. The amount of 
this fee is $5,000 per month.
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2. Statutory Basis
    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 CBOE members and other persons 
using its facilities.
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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 not necessary or appropriate in furtherance of 
the 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 proposed rule change is designated by the Exchange as 
establishing or changing a due, fee, or other charge, thereby 
qualifying for effectiveness on filing pursuant to Section 
19(b)(3)(A)(ii) \7\ of the Act 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)(ii).
    \8\ 17 C.F.R. 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 proposal 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 No. SR-CBOE-2009-045 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 No. SR-CBOE-2009-045. 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 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 CBOE. 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 No. SR-CBOE-2009-045 and should be 
submitted on or before August 6, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Elizabeth M. Murphy,
Secretary.
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    \9\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-16858 Filed 7-15-09; 8:45 am]

BILLING CODE 8010-01-P