Document ID: SEC-2009-0698-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2009-05-26T04:00Z

[Federal Register Volume 74, Number 99 (Tuesday, May 26, 2009)]
[Notices]
[Pages 24888-24889]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-12090]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59935; File No. SR-CBOE-2009-028]

Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of Proposed Rule Change Relating to 
Rebating Member Dues for Certain Members

May 18, 2009.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on May 6, 2009, Chicago Board Options Exchange, 
Incorporated (``CBOE'' or the ``Exchange'') 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 CBOE. 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\ 15 U.S.C. 78a.
    \3\ 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

    Chicago Board Options Exchange, Incorporated (``CBOE'' or 
``Exchange'') proposes to amend its Fees Schedule to rebate member dues 
for certain members. 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'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, CBOE 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. CBOE 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    CBOE assesses dues with respect to every membership (unless a 
member is assessed the Hybrid Electronic Quoting Fee, in which case the 
member does not pay member dues).\4\ Under Rule 3.17(c), the membership 
lease agreement between a lessor member and a lessee member designates 
who is responsible for Exchange dues, fees and other charges. 
Typically, leases provide that the lessee is responsible for dues and 
therefore lessors do not pay dues.
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    \4\ Member dues are $450 per month. See CBOE Fees Schedule, 
Section 10.
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    Under the lessor compensation component of the Interim Trading 
Permit (``ITP'') program, the Exchange compensates a lessor for an 
``open lease'' while the ITP program is active and ITPs are 
outstanding.\5\ The goal of this component of the ITP program is to put 
such a lessor in a similar position as if the lessor's membership was 
leased. This goal would be frustrated if the lessor is charged dues 
because the lessor would be subject to an obligation the lessor would 
not otherwise be subject to if the lessor's membership was leased.
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    \5\ The ITP program is a program pursuant to which the Exchange 
has the authority to issue up to 50 ITPs. The ITP program is 
governed by CBOE Rule 3.27. The lessor compensation component of the 
ITP program is described in CBOE Rule 3.27(d). An ``open lease'' is 
defined in Rule 3.27(d) as a transferable Exchange membership 
available for lease.
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    Consistent with this goal, the Exchange will waive member dues for 
a lessor member for any month in which the lessor receives a payment 
from the Exchange for an open lease under the ITP program. This waiver 
became effective on May 1, 2009, pursuant to a

[[Page 24889]]

previous rule change that was filed by the Exchange for immediate 
effectiveness.\6\ The Exchange now proposes to rebate dues to any 
lessor member who received such a payment from the Exchange during the 
period August 1, 2008,\7\ through April 30, 2009.
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    \6\ See SR-CBOE-2009-027.
    \7\ The ITP program was approved by the Commission on July 17, 
2008. See Securities Exchange Act Release No. 58178 (July 17, 2008), 
73 FR 42634 (July 22, 2008).
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Securities Exchange Act of 1934 (``Act''),\8\ in 
general, and furthers the objectives of Section 6(b)(4) \9\ of the Act 
in particular, in that it is designed to provide for the equitable 
allocation of reasonable dues, fees, and other charges among its 
members and other persons using its facilities. The Exchange believes 
the proposed rebate of member dues is equitable and reasonable in that 
it would help the Exchange place a lessor member who received 
compensation from the Exchange for an open lease under the ITP program 
prior to May 1, 2009, in a similar position as if the lessor's 
membership had been leased, consistent with Exchange Rule 3.27(d).
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    \8\ 15 U.S.C. 78f(b).
    \9\ 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 that is not necessary or appropriate in 
furtherance of 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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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-2009-028 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-2009-028. 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 the filing will also be available for 
inspection and copying at the principal office of the self-regulatory 
organization. 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-2009-028 and should be submitted on or before June 16, 2009.

    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. E9-12090 Filed 5-22-09; 8:45 am]
BILLING CODE 8010-01-P