Document ID: SEC-2010-1497-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2010-09-30T04:00Z

[Federal Register: September 30, 2010 (Volume 75, Number 189)]
[Notices]               
[Page 60487-60488]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30se10-117]                         

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62981; File No. SR-CBOE-2010-086]

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

September 23, 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 September 14, 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.
---------------------------------------------------------------------------

    \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 modify the Fees Schedule for its CBOE 
Stock Exchange (``CBSX''). 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
    CBSX proposes to adopt the Trading Permit Holder Application Fees 
that apply to CBOE. The purpose of the proposed rule change is to 
offset some of the expenses incurred by the Exchange in connection with 
CBSX Trading Permit Holder applicants and existing CBSX Trading Permit 
Holders. A description of the application fees is provided below.
    The Individual Applicant Fee (Trading Permit Holder) is payable by 
a new individual applicant for Trading Permit Holder status on the 
Exchange. The applicant's Fingerprint Processing Fee is included as 
part of this fee. The New Trading Permit Holder Orientation & Exam Fee 
is payable by each applicant seeking Trading Permit Holder status, 
which requires a trading function.
    The TPH Organization Application Fee (Corporation/Partnership/LLC) 
is payable by an applicant that desires to be a TPH organization on the 
Exchange. This fee encompasses the TPH Organization Application and 
related documentation, one Responsible Person's Orientation & Exam Fee 
and Fingerprint Fee associated with the TPH Organization Application, 
and Associated Person(s) Fees that are part of this TPH Organization 
Application.
    The TPH Organization Renewal Fee (Corporation/Partnership/LLC) is 
payable by a former trading firm member or TPH organization that 
reapplies for Trading Permit Holder status within nine months of its 
Trading Permit Status termination date and becomes an effective TPH 
organization within one year of its Trading Permit Status termination 
date. This fee encompasses the TPH Organization Application and related 
documentation and one Responsible Person who is a former Responsible 
Person who reapplies within nine months of his termination date and 
becomes an effective Responsible Person within one year of his 
termination date.
    The Associated Person Fee is payable for the addition of certain 
individuals on a TPH organization's Form BD. This fee includes the 
related Fingerprint Processing Fee. This fee is payable by each 
executive officer, general partner, or LLC Manager. Additionally, this 
fee is payable by each principal shareholder that has 5% or more direct 
ownership of a class of a voting security of a TPH organization 
corporation, limited partner who has the right to receive upon 
dissolution, or has contributed, 5% or more of the partnership's 
capital, and LLC member who has the right to receive upon dissolution, 
or has contributed, 5% or more of the LLC's capital. This fee is also 
payable by any person classified as a ``Control Person'' of the TPH 
organization.
    The Fingerprint Processing Fee will be assessed for employees of 
Trading Permit Holders and any other individual requesting the Exchange 
to process a fingerprint, electronically or otherwise, excluding 
fingerprint requirements for Individual Applicants, individuals 
applying for Renewal/Change of Status, and Associated Persons.
    The Renewal/Change of Status Fee is payable by a former individual 
Trading Permit Holder who reapplies for Trading Permit Holder status 
within nine months of his Trading Permit Holder status termination date 
and becomes an effective Trading Permit Holder within one year of his 
Trading Permit Holder status termination date. A former individual 
Trading Permit Holder or former individual member who reapplies for 
Trading Permit Holder status within nine months of termination from 
Trading Permit Holder status will be assessed the Renewal/Change of 
Status fee at the time of submission of the application. If that person 
becomes an effective Trading Permit Holder more than one year after his 
Trading Permit Holder status termination date, the person will then be 
charged an additional fee equal to the

[[Page 60488]]

difference between the Individual Application Fee and the Renewal/
Change of Status fee. This Fee includes the related Fingerprint 
Processing Fee, if applicable.
    The Trading Permit Transfer Fee is assessed to a Trading Permit 
Holder for each Trading Permit for which the Registration Services 
Department has received a request for transfer.
    The Joint Account Application Fee is payable for each application 
to establish a new joint account. The Non-Trading Permit Holder 
Customer Business Fee is payable by applicant TPH organizations that 
plan to conduct a public customer business.
    The Applicant/Trading Permit Holder/Associated Person Subject to 
Statutory Disqualification Fee is payable whenever a person or entity 
is subject to a statutory disqualification under the Securities 
Exchange Act of 1934 and: (i) Is an applicant for Trading Permit Holder 
status, (ii) is seeking to be an associated person of a Trading Permit 
Holder (except where the Exchange is merely asked to concur in an SEC 
Rule 19h-1 filing by another self regulatory organization), or (iii) is 
an existing Trading Permit Holder or associated person who makes an 
application in accordance with Rule 3.18(b) or with respect to whom a 
proceeding is initiated pursuant to Rule 3.18. This fee is in addition 
to any other Trading Permit-related fees that might be applicable.
    The Fee for Change in Status that, if Approved, Would Require 
Amended or Additional SEC Rule 19h-1(c) Filing is payable whenever a 
person or entity, on whose behalf the Exchange has filed a Rule 19h-
1(c) filing that has been approved by the SEC, applies for a change in 
status that requires the Exchange to file an amended or additional Rule 
19h-1(c) filing, if the Exchange approves the requested change in 
status. This fee is in addition to any other Trading Permit-related 
fees that might be applicable.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Securities Exchange Act of 1934 (``Act''),\3\ in general, and furthers 
the objectives of Section 6(b)(4) \4\ 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 and CBSX Trading Permit 
Holders and other persons using CBOE, CBSX and their facilities.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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) \5\ of the Act and subparagraph (f)(2) of Rule 19b-4 
\6\ thereunder.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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-2010-086 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-2010-086. 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 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-2010-086 and should be 
submitted on or before October 21, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-24509 Filed 9-29-10; 8:45 am]
BILLING CODE 8010-01-P