Document ID: SEC-2015-0625-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2015-04-13T04:00Z

[Federal Register Volume 80, Number 70 (Monday, April 13, 2015)]
[Notices]
[Pages 19705-19707]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-08379]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74668; File No. SR-CBOE-2015-032]

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

April 7, 2015.
    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 March 27, 2015, 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.
---------------------------------------------------------------------------

    \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 amend its 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's Public Reference Room.

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.

[[Page 19706]]

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

1. Purpose
    The Exchange proposes to adopt a Trading Permit Holder Regulatory 
Fee of $90 per month, per Regular Trading Hours \3\ (``RTH'') Trading 
Permit, applicable to all Trading Permit Holders (``TPHs''). 
Specifically, the Exchange is proposing to adopt this fee as the 
Exchange's regulatory costs have increased and in order to help more 
closely cover the costs of regulating all TPHs and performing 
regulatory responsibilities. The Exchange believes the proposed fee 
amount is modest, as well as reasonable for TPHs of all sizes. The 
Trading Permit Holder Regulatory Fee will be non-refundable and 
assessed through the integrated billing system during the first week of 
the following month. Additionally, the Exchange notes that if a Trading 
Permit is issued during a calendar month after the first trading day of 
the month, the Trading Permit Holder Regulatory Fee for the Trading 
Permit for that calendar month will be prorated based on the remaining 
trading days in the calendar month.
---------------------------------------------------------------------------

    \3\ Rule 1.1(qqq) defines ``Regular Trading Hours'' as the hours 
during which transactions in options may be made on the Exchange as 
set forth in Rule 6.1 (which hours are from 8:30 a.m. to either. 
3:00 p.m. or 3:15 p.m. Chicago time).
---------------------------------------------------------------------------

    Finally, as noted above, the proposed fee is applicable during RTH 
only. As such, the Exchange proposes to remove ``(Also applies to 
ETH)(37)'' from the Regulatory Fees header and relocate that language 
next the ``Options Regulatory Fee (``ORF'')'' and ``DPM's and Firm 
Designated Examining Authority Fee'' so that it is clear which 
Regulatory fees are applicable during ETH. The Exchange notes that no 
substantive change is being made by this change. Rather, the Exchange 
believes this proposed rule change will maintain clarity in the Fees 
Schedule and avoid potential confusion.
    The proposed rule change is to take effect on April 1, 2015.
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 Section 
6(b)(4) of the Act,\5\ which provides that Exchange rules may provide 
for the equitable allocation of reasonable dues, fees, and other 
charges among its Trading Permit Holders and other persons using its 
facilities. 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.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes the proposed fee change is reasonable because 
it is designed to recoup costs associated with performing its 
regulatory obligations with respect to TPHs. The proposed rule change 
will help the Exchange offset increased regulatory expenses, but not 
result in total regulatory revenue exceeding total regulatory costs. 
The Exchange believes it is equitable and not unfairly discriminatory 
because it will apply to all TPHs. Additionally, the Exchange believes 
it is reasonable, equitable and not unfairly discriminatory to assess 
the fee per Trading Permit because there is generally a correlation 
between an increased number of Trading Permits and business on the 
Exchange, which in turn requires more resources to regulate that 
business. As such, the Exchange believes assessing this fee on a per 
Trading Permit basis is the most equitable method of assessing this 
fee.
    The Exchange also believes the proposed rule change is consistent 
with Section 6(b)(1) of the Act,\7\ which provides that the Exchange be 
organized and have the capacity to be able to carry out the purposes of 
the Act and to enforce compliance by the Exchange's TPHs and persons 
associated with its TPHs with the Act, the rules and regulations 
thereunder, and the rules of the Exchange. The proposed rule change is 
designed to fund the Exchange's regulatory program and to help more 
closely cover the costs of regulating TPHs for which the Exchange has a 
regulatory responsibility. Thus, the proposed changes will help the 
Exchange to enforce compliance of its TPHs with the Act and Exchange 
rules.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b)(1).
---------------------------------------------------------------------------

    Finally, the Exchange believes the proposed change to relocate the 
language ``(Also applies to ETH)(37)'' makes clear to market 
participants which Regulatory fees apply during ETH and reduces 
potential confusion. The alleviation of potential confusion will remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and, in general, protect investors and the 
public interest.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange 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 believes any 
burden on competition imposed by the proposed rule change is outweighed 
by the need to help the Exchange to adequately fund its regulatory 
activities to ensure compliance with the Exchange Act.

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 \8\ and paragraph (f) 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. If the Commission 
takes such action, the Commission will institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-2015-032 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

[[Page 19707]]

All submissions should refer to File Number SR-CBOE-2015-032. 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 the 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-2015-032 and should be 
submitted on or before May 4, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-08379 Filed 4-10-15; 8:45 am]
 BILLING CODE 8011-01-P