
[Federal Register: January 14, 2010 (Volume 75, Number 9)]
[Notices]               
[Page 2172-2173]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14ja10-109]                         


[[Page 2172]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61303; File No. SR-CBOE-2009-102]

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

January 6, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on December 30, 2009, 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 and II 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

    The Exchange proposes to amend its CBOE Stock Exchange (``CBSX'') 
Fees Schedule. 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, on the Commission's Web site (http://www.sec.gov), 
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 make fee modifications in order to better attract 
business to the exchange. Specifically, CBSX proposes to change to 
$0.0030 per share its Taker Fee and Routing Fee applicable to 
transactions of securities priced at $1 or greater. CBSX proposes to 
change to 0.30% (of the dollar value of the transaction) its Taker Fee 
and Routing Fee for transactions in securities priced less than $1. 
CBSX proposes to change to $0.0025 per share the rebate for Makers, 
applicable to transactions in securities priced at $1 or greater.
    CBSX also proposes to change the fee rates applicable to stock 
executions effected pursuant to Rules 6.53C, 6.74A.07 and 6.74B.01. 
Rule 6.53C is CBOE's complex order auction (COA) and book (COB) rule. 
The COA system facilitates the handling and execution of complex orders 
by allowing for complex orders to rest in the system and allowing for 
inbound complex orders to trigger an auction where auction participants 
may submit complex order responses to trade with the order that is 
being auctioned. Some complex orders contain a stock component (e.g. a 
buy-write order), and the stock component of a stock-option complex 
order handled by the system is executed on CBSX. This filing changes 
the rate applicable to the stock executions that result from stock-
option orders trading pursuant to Rule 6.53C as follows: the order that 
triggered a COA auction or that triggered a trade with a resting COB 
order shall be charged $0.0020 per share subject to a $2.00 minimum 
charge (the $25.00 maximum charge will remain unchanged).
    Rule 6.74A.07 is CBOE's Automated Improvement Mechanism (AIM) rule 
for complex orders. It allows complex orders (including stock-option 
orders) to be crossed after an electronic auction. Rule 6.74B.01 is the 
Solicitation Auction Mechanism. It allows for the execution of large 
size complex orders against solicited orders. Any stock executions 
resulting from orders processed through these mechanisms are handled on 
CBSX. This filing changes the rate applicable to the stock executions 
that result from stock-option orders trading pursuant to Rule 6.74A.07 
and 6.74B.01 as follows: $0.0020 per share subject to a $2.00 minimum 
charge and $25.00 maximum charge (the $25.00 maximum charge will remain 
unchanged).
    Lastly, this filing eliminates the CBSX market data rebate program. 
CBSX will cease issuing tape credits.
    The fee changes will take effect on January 4, 2010.
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 members and other persons 
using its facilities.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 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) of the Act \5\ and subparagraph (f)(2) of Rule 19b-4 
thereunder.\6\ 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.
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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(f)(2).
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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:

[[Page 2173]]

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-2009-102 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-2009-102. 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 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-2009-102 and should be 
submitted on or before February 4, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-540 Filed 1-13-10; 8:45 am]
BILLING CODE 8011-01-P

