Document ID: SEC-2011-1871-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2011-12-02T05:00Z

[Federal Register Volume 76, Number 232 (Friday, December 2, 2011)]
[Notices]
[Pages 75584-75586]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-30994]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65833; File No. SR-CBOE-2011-109]

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

November 28, 2011.
    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 November 15, 2011, 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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[[Page 75585]]

I. Self-Regulatory Organization's Statement of the Terms of the 
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 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 Floor Broker Workstation (``FBW'') is a system for 
electronically entering and managing orders on the Exchange floor. The 
Exchange has improved the functionality of the FBW to provide a new 
``Market Access Controls Window'' (the ``Window'') that will display 
for each ``FBW aggregation group'' \3\ values for each of the following 
access-based controls: Per Order Controls, which include values for (a) 
quantity of contracts per order, (b) premium amount per order, (c) 
number of identical orders, and (d) frequency of order entry (count and 
timeframe); and Aggregate Controls, which include actual and predictive 
values for (1) premium amount per day, (2) quantity of contracts per 
day, and (3) the number of orders with a status of ``working''. The 
Window will be an optional feature of FBW and will be provided to each 
CBOE Trading Permit Holder (``TPH'') that requests the Window (a 
``Requesting TPH'').
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    \3\ An FBW aggregation group is a grouping of FBW users within a 
CBOE Trading Permit Holder firm. Each FBW user has an FBW Login ID.
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    The Exchange proposes to charge a Requesting TPH $100 per Login ID 
per month. There will be a cap of $2,000 per month for any Requesting 
TPH. Therefore, any TPH that requests access to the FBW Market Access 
Controls Window for more than 20 login IDs will not be required to pay 
more than $2,000 per month for such access. The purpose of the proposed 
fee is to recoup costs involved in providing the Window, which is 
licensed from an outside vendor.
    The proposed rule change filing is to take effect December 1, 2011.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\4\ in general, and furthers the objectives of Section 6(b)(4) \5\ 
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 Trading Permit Holders and other persons using Exchange 
facilities, and the objectives of Section 6(b)(5) \6\ of the Act in 
particular in that it is not designed to permit unfair discrimination 
between customers, issuers, brokers, or dealers. The Exchange believes 
that the amount of the proposed fee is reasonable because it is within 
the range of fees assessed by the Exchange for the use of other trading 
floor terminal functionalities \7\ and because that amount is necessary 
to recoup costs involved in providing the Window, which is licensed 
from an outside vendor. The Exchange believes the proposed fee is 
equitable and not unfairly discriminatory because the fee would be 
optional and would be applied uniformly to all CBOE Trading Permit 
Holders that use the Window.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ See Exchange Fees Schedule, Section 8(F)(10).
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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) 
of the Act \8\ and subparagraph (f)(2) 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.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 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 email to rule-comments@sec.gov. Please include 
File Number SR-CBOE-2011-109 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-2011-109. 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 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 offices 
of the Exchange. All comments received will be posted without change; 
the Commission does

[[Page 75586]]

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-2011-109, and should be 
submitted on or before December 23, 2011.

    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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-30994 Filed 12-1-11; 8:45 am]
BILLING CODE 8011-01-P