75 FR 48 pgs. 11974-11975 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the CBSX Fees Schedule To Adopt a Document Request Fee and Transaction Fees for Cross Trades That Settle Non-Regular-Way
Type: NOTICEVolume: 75Number: 48Pages: 11974 - 11975
Docket number: [Release No. 34-61659; File No. SR-CBOE-2010-023]
FR document: [FR Doc. 2010-5301 Filed 3-11-10; 8:45 am]
Agency: Securities and Exchange Commission
Official PDF Version: PDF Version
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61659; File No. SR-CBOE-2010-023]
Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the CBSX Fees Schedule To Adopt a Document Request Fee and Transaction Fees for Cross Trades That Settle Non-Regular-Way
March 5, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 ("Act")1and Rule 19b-4 thereunder,2notice is hereby given that on February 26, 2010, the Chicago Board Options Exchange, Incorporated ("Exchange" or "CBOE") 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 prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
Footnotes:
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 the CBSX Fees Schedule to adopt a document request fee and non-Regular-way cross frees [sic]. 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.
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 modify its Fees Schedule to add transaction fees for cross trades that are marked for cash and next-day settlement. Such settlements are permissible pursuant to Rule 51.7.3Because these are non-Regular Way settlements, CBSX deems it appropriate to charge more for these crosses than for "traditional" settlement crosses.4
Footnotes:
3 See CBOE Rule 51.7(a) and (b).
4 The Exchange proposes to modify the CBSX fee schedule to add transaction fees for cross trades that are marked for cash and next-day settlement. As proposed, next-day settlement cross trades would be charged $0.0025 per share with a minimum rate of $1 per trade and a maximum rate of $30 per trade. Cash settlement cross trades would be charged $0.0025 per share with a minimum rate of $1 per trade and a maximum rate of $50 per trade. The Exchange is proposing a higher cap for cash settlement cross trades because cash settlement is a more expedited settlement time frame than next-day settlement. Because cash settlement presumably satisfies a more pressing need for the user, the Exchange believes the market will bear a higher cap for cash settlement cross trades. See e-mail from Angelo Evangelou, Assistant General Counsel, Legal Division, CBOE, to Steve L. Kuan, Special Counsel, Division of Trading and Markets, Commission, on March 5, 2010.
CBSX also proposes to add a Document Request Fee of $100.00 per monthly billing statement. This fee would be imposed upon any person or organization that requests that CBSX deliver printed hard-copy versions of the person's or organization's monthly billing statements. Current CBSX practice is to e-mail such statements, and the practice of printing and delivering such statements is costly and time-consuming because the statements are quite voluminous.
The fee changes will become effective on March 1, 2010.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 ("Act"),5in general, and furthers the objectives of Section 6(b)(4)6of 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.
Footnotes:
5 15 U.S.C. 78f(b).
6 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)7of the Act and subparagraph (f)(2) of Rule 19b-48thereunder.
Footnotes:
7 15 U.S.C. 78s(b)(3)(A)(ii).
8 17 CFR 240.19b-4(f)(2).
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.
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-2010-023 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-2010-023. 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 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-2010-023 and should be submitted on or before April 2, 2010.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9
Footnotes:
9 17 CFR 200.30-3(a)(12).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-5301 Filed 3-11-10; 8:45 am]
BILLING CODE 8011-01-P