Document ID: SEC-2010-1662-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2010-10-29T04:00Z

[Federal Register: October 29, 2010 (Volume 75, Number 209)]
[Notices]               
[Page 66817-66818]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29oc10-140]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63160; File No. SR-CBOE-2010-093]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Modify the Fee Schedule for the CBOE Stock 
Exchange

October 22, 2010.
    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 October 15, 2010, 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

    CBOE proposes to amend the Fee Schedule of the CBOE Stock Exchange 
(``CBSX'') to modify certain transaction 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 principal office, 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 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
    On August 23, 2010, the Commission published an immediately 
effective rule filing to modify the transaction fees for 24 securities 
traded on CBSX (the following symbols: BAC, C, DXD, EMC, EWJ, F, FAX, 
FAZ, GE, INTC, MOT, MSFT, MU, NOK, Q, QID, S, SIRI, SKF, T, TWM, UNG, 
UWM, XLF).\3\ On September 9, 2010, the Commission published an 
immediately effective rule filing to modify the transaction fees for 51 
more securities traded on CBSX (the following symbols: AA, AMAT, AMD, 
BGZ, BP, BSX, CMCSA, COCO, CSCO, CX, DELL, DUK, EBAY, EEM, EWT, FAS, 
FLEX, HBAN, IYR, MDT, MGM, IYR, MDT, MGM, NLY, NVDA, NWSA, ORCL, PFE, 
QCOM, QQQQ, SBUX, SH, SLV, SMH, SSO, SYMC, TBT, TSM, TXN, UCO, USO, 
VALE, VWO, WFC, XHB, XLB, XLK, XLP, XLU, XLV, XLY, XRX, YHOO).\4\ On 
September 28, 2010, the Commission published an immediately effective 
rule filing to modify the transaction fees for 51 more securities 
traded on CBSX (the following symbols: ARNA, ATML, BKC, BRCD, CIM, DOW, 
DRYS, EFA, EWZ, FITB, FXI, GBG, GDX, GLD, GLW, HPQ, IDIX, IWM, JPM, 
KEY, LVLT, LVS, MFE, MO, MRVL, ONNN, PBR, PCBC, QLD, RF, RFMD, RIMM, 
RRI, RSCR, SDS, SNDK, SPLS, SPY, TEVA, TLT, TNA, TZA, UYG, VXX, VZ, X, 
XLE, XLI, XOM, XRT).\5\
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    \3\ See Securities Exchange Act Release No. 34-62758 (August 23, 
2010), 75 FR 52792 (August 27, 2010) (SR-CBOE-2010-075).
    \4\ See Securities Exchange Act Release No. 34-62878 (September 
9, 2010), 75 FR 56627 (September 16, 2010) (SR-CBOE-2010-079).
    \5\ See Securities Exchange Act Release No. 34-63000 (September 
28, 2010), 75 FR 61549 (October 5, 2010) (SR-CBOE-2010-089).
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    CBSX now proposes to modify its transaction fees so that all 
securities are subject to the Maker and Taker fees and rebates to which 
the aforementioned securities became subject. The Taker rebate shall be 
$0.0014 per share for transactions in all securities traded on CBSX 
that are priced $1 or greater. The Maker fee shall be $0.0018 per share 
for transactions in all securities traded on CBSX that are priced $1 or 
greater.
    Additionally, CBSX proposes to modify the Maker and Taker fees and 
rebates for transactions in securities priced less than $1. The Taker 
fee for such transactions shall be 0.05% of the dollar value of the 
transaction. The Maker rebate for such transaction shall be 0.01% of 
the dollar value of the transaction.
    Consistent with the new fees set forth above, CBSX also proposes to 
amend the fee and rebate for NBBO Step-Up Trades. For stocks priced $1 
and over, the order that is flashed will receive a $0.0014 per share 
rebate and the responder will be charged $0.0018 per share. For stocks 
priced under $1, the maker/taker fees will correspond to those in place 
for non-flashed executions (i.e., the Taker fee for such transactions 
shall be 0.05% of the dollar value of the transaction, and the Maker 
rebate for such transaction shall be 0.01% of the dollar value of the 
transaction).
    The fee changes will become effective on October 18, 2010.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\6\ in general, and furthers the objectives of

[[Page 66818]]

Section 6(b)(4) \7\ 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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    \6\ 15 U.S.C. 78f(b).
    \7\ 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) \8\ of the Act and subparagraph (f)(2) of Rule 19b-4 
\9\ thereunder.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
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    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.

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-2010-093 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-2010-093. 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 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 
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-2010-093 and should be 
submitted on or before November 19, 2010.

    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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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-27359 Filed 10-28-10; 8:45 am]
BILLING CODE 8011-01-P