
[Federal Register: February 4, 2010 (Volume 75, Number 23)]
[Notices]               
[Page 5833-5834]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04fe10-88]                         


[[Page 5833]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61431; File No. SR-CBOE-2010-003]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Temporary Waiver of Certain Fees

January 27, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 7, 2010 the 
Chicago Board Options Exchange, Incorporated (``CBOE'' or ``Exchange'') 
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 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).
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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 (i) temporarily 
waive the Change of Status Fee for a membership status change involving 
a Temporary Member or a person on an Interim Trading Permit (``ITP'') 
who goes onto a CBOE transferable membership and (ii) temporarily waive 
the Lease Application Fee for a lease under which a Temporary Member or 
a person on an ITP goes onto a CBOE transferable membership. 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 aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its Fees Schedule to (i) temporarily 
waive the Change of Status fee for a membership status change involving 
a Temporary Member \2\ or a person on an ITP \3\ who goes onto a CBOE 
transferable membership and (ii) temporarily waive the Lease 
Application fee for a lease under which a Temporary Member or a person 
on an ITP goes onto a CBOE transferable membership. The Exchange 
proposes to institute these fee waivers effective January 7, 2010.
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    \2\ See Securities Exchange Act Release No. 56458 (September 18, 
2007), 72 FR 54309 (September 24, 2007) (SR-CBOE-2007-107) for a 
description of the Temporary Membership status under Rule 3.19.02.
    \3\ See Securities Exchange Act Release No. 58178 (July 17, 
2008), 73 FR 42634 (July 22, 2008) (SR-CBOE-2008-40) for a 
description of the Interim Trading Permits under Rule 3.27.
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    The Exchange currently has a number of unleased CBOE transferable 
memberships. The Exchange intends to provide incentives for Temporary 
Members and persons on ITPs to go onto CBOE transferable memberships to 
reduce the number of unleased CBOE transferable memberships. 
Specifically, CBOE will waive the $500 change of status fee for any 
Temporary Member who goes onto a CBOE transferable membership as well 
as for any person on an ITP who goes onto a CBOE transferable 
membership (to the extent that the change of status fee would otherwise 
be applicable to the person switching off of the ITP). In addition, 
CBOE will waive the $600 lease application fee for any CBOE 
transferable membership lease under which a Temporary Member or person 
on an ITP goes onto a CBOE transferable membership. These fee waivers 
will be in effect through April 2, 2010.
    For example, Floor Broker ABC (a Temporary Member) is employed by 
Firm XYZ (a member organization) and is an individual member with a 
Temporary Membership that has been registered for Firm XYZ. Firm XYZ 
now wishes to lease a CBOE transferable membership for Floor Broker ABC 
to have Floor Broker ABC become a nominee of Firm XYZ and eliminate his 
Temporary Membership status. Currently, the change of status to a 
nominee and the lease of a CBOE transferable membership by Firm XYZ 
would result in a $500 Change in Status fee for Floor Broker ABC and a 
$600 Lease Application fee for the new lease. CBOE believes it is 
appropriate to temporarily waive this Change in Status fee and Lease 
Application fee to provide incentives for these types of status 
changes. These fee waivers would result in a total cost savings of 
$1,100 to Firm XYZ and Floor Broker ABC ($500 savings for the Change in 
Status fee and $600 savings for the Lease Application fee).
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Securities Exchange Act of 1934 (``Act'') \4\, in 
general, and furthers the objectives of Section 6(b)(4) \5\ 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 in that it is designed 
to provide incentives to reduce the number of unleased CBOE 
transferable memberships.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 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 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 foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \6\ and subparagraph (f)(2) of Rule 19b-4 \7\ 
thereunder. 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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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 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.

[[Page 5834]]

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-2010-003 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-2010-003. 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 No. SR-CBOE-2010-003 and should be 
submitted on or before February 25, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-2332 Filed 2-3-10; 8:45 am]
BILLING CODE 8011-01-P

