Document ID: SEC-2007-0921-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Chicago Board Options Exchange, Inc.
Posted Date: 2007-07-09T04:00Z

[Federal Register: July 9, 2007 (Volume 72, Number 130)]
[Notices]               
[Page 37282-37283]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09jy07-123]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55984; File No. SR-CBOE-2007-53]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change, as Modified by Amendment No. 1 Thereto, Relating to an 
Administrative CBOE Billing Rule

June 29, 2007.
    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 May 29, 2007, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' or ``Exchange'') 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 substantially 
prepared by the CBOE. On June 28, 2007, the Exchange filed Amendment 
No. 1 to the proposed rule change. The Commission is publishing this 
notice to solicit comments on the proposed rule change, as amended, 
from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to make a change to an administrative CBOE 
billing rule. The text of the proposed rule change is available at the 
CBOE, on the Exchange's Web site at http://www.cboe.org/legal, and in 

the Commission's Public Reference Room.

[[Page 37283]]

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
    CBOE Rule 3.23 requires all CBOE members, other than lessor 
members, to designate a CBOE Clearing Member for the payment of CBOE 
invoices by means of the Exchange's Integrated Billing System 
(``IBS''). From time to time, vendors have requested the Exchange to 
act as their billing agent for vendor invoices for Exchange-related 
services provided to members. The Exchange would like to enter into 
arrangements with vendors under which the Exchange would collect 
payment from members for vendor invoices for Exchange-related 
services.\3\ Some of these arrangements may involve payment by the 
vendor to the Exchange for performing this billing service, and some 
may involve no payment to the Exchange as mutually agreed by the vendor 
and the Exchange.
---------------------------------------------------------------------------

    \3\ The Exchange represents that, in the Exchange's written 
agreement with each vendor for which the Exchange will collect 
payments via IBS, the Exchange will require the vendor to include a 
provision in the vendor's written agreement with each member from 
which payments via IBS will be collected in which the member 
authorizes CBOE to assess and collect from the member through CBOE's 
billing procedures and automated systems, on behalf of the vendor, 
the fees assessed by the vendor to the member for the vendor's 
service. See Amendment No. 1 to the proposed rule change.
---------------------------------------------------------------------------

    The Exchange proposes to amend Rule 3.23 to make explicit that the 
Exchange may collect such vendor fees that are designated by the 
Exchange from members via the IBS. The proposed rule change would 
benefit Exchange members in that it would allow members to pay vendor 
invoices for Exchange-related services along with all of their Exchange 
invoices via the IBS instead of having to receive and pay multiple 
invoices. The proposed rule change would also benefit vendors in that 
it would relieve vendors of the responsibility for individually billing 
and collecting from each of their CBOE member customers.
2. Statutory Basis
    The proposed rule change is an administrative rule change that is 
designed to facilitate the efficiency of Exchange operations and to 
ease administrative burdens on Exchange members by improving CBOE 
billing procedures. Therefore, the Exchange believes that the proposed 
rule change is consistent with the requirements provided under Section 
6(b)(5) \4\ of the Act that the rules of an exchange be designed 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.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78(f)(b)(5).
---------------------------------------------------------------------------

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.

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

    Because the foregoing rule change is concerned solely with the 
administration of the Exchange, it has become effective pursuant to 
Section 19(b)(3)(A) of the Act \5\ and subparagraph (f)(3) of Rule 19b-
4 \6\ 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.\7\
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(3).
    \7\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
Section 19(b)(3)(C) of the Act, the Commission considers the period 
to commence on June 28, 2007, the date on which CBOE submitted 
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------

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-2007-53 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-CBOE-2007-53. 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 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 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 Number SR-CBOE-2007-53 and should be submitted on or before July 
30, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
Florence E. Harmon,
Deputy Secretary.
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. E7-13165 Filed 7-6-07; 8:45 am]

BILLING CODE 8010-01-P