Federal Register: May 13, 2008 (Volume 73, Number 93)
DOCID: fr13my08-97 FR Doc E8-10620
SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission
DOCUMENT ID: [Release No. 34-57793; File No. SR-CBOE-2008-52]
NOTICE: NOTICES
DOCID: fr13my08-97
ACTION: Self-Regulatory Organizations; Proposed Rule Changes:
SUBJECT CATEGORY:
Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Temporary Membership Status Access Fee
DOCUMENT SUMMARY:
May 7, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b4 thereunder,\2\ notice is hereby given that
on April 30, 2008, 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 the
Exchange. CBOE has designated this proposal as one establishing or
changing a due, fee, or other charge imposed by the Exchange under
Section 19(b)(3)(A),\3\ and Rule 19b4(f)(2) thereunder,\4\ which
renders the proposal effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the proposed rule change from interested parties.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b4(f)(2).
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
CBOE proposes to adjust the monthly access fee for persons granted
temporary CBOE membership status (``Temporary Members'') pursuant to
Interpretation and Policy .02 under CBOE Rule 3.19 (``Rule 3.19.02'').
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. SelfRegulatory 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. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
1. Purpose
The current access fee for Temporary Members under Rule 3.19.02 \5\
is $8,260 per month and took effect on April 1, 2008. The Exchange
proposes to revise the access fee to be $10,079 per month commencing on May 1, 2008.
\5\ See Securities Exchange Act Release No. 56458 (September 18,
2007), 72 FR 54309 (September 24, 2007) (SRCBOE2007107) for a
description of the Temporary Membership status under Rule 3.19.02.
The Exchange used the following process to set the proposed access
fee: The Exchange polled each of the clearing firms that assists in
facilitating at least 10% of the transferable CBOE membership leases
and obtained the Clearing Firm Floating Monthly Rate \6\ designated by
each of these clearing firms for the month of May 2008. The Exchange
then set the proposed access fee at an amount equal to the highest of these Clearing Firm Floating Monthly Rates.
\6\ The term ``Clearing Firm Floating Monthly Rate'' refers to
the floating monthly rate that a clearing firm designates, in
connection with transferable membership leases that the clearing
firm assisted in facilitating, for leases that utilize that floating monthly rate.
The Exchange used the same process to set the proposed access fee that it used to set the current access fee. The only difference is that the Exchange used Clearing Firm Floating Monthly Rate information for the month of May 2008 to set the proposed access fee (instead of Clearing Firm Floating Monthly Rate information for the month of April 2008 as was used to set the current access fee) in order to take into account changes in Clearing Firm Floating Monthly Rates for the month of May 2008.
The Exchange believes that the process used to set the proposed
access fee and the proposed access fee itself are appropriate for the
same reasons set forth in CBOE rule filing SRCBOE200812 in support
of that process and the original access fee for Temporary Members under Rule 3.19.02.\7\
\7\ See Securities Exchange Act Release No. 57293 (February 8,
2008), 73 FR 8729 (February 14, 2008) (SRCBOE200812), which
established the original access fee for Temporary Members under Rule
3.19.02, for detail regarding the rationale in support of the
original access fee and the process used to set that fee, which is also applicable to this proposed rule change as well.
The proposed access fee will remain in effect until such time either that the Exchange submits a further rule filing pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ to modify the proposed access fee or the Temporary Membership status under Rule 3.19.02 is terminated. Accordingly, the Exchange may further adjust the proposed access fee in the future if the Exchange determines that it would be appropriate to do so taking into consideration lease rates for transferable CBOE memberships prevailing at that time.
\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
The procedural provisions of the CBOE Fee Schedule related to the assessment of the proposed access fee are not proposed to be changed and will remain the same as the current procedural provisions regarding the assessment of the current access fee. However, the Exchange is proposing to delete the current reference in the Fee Schedule which notes that the first month for which an access fee will be assessed to Temporary Members under Rule 3.19.02 is February 2008 because the commencement of the assessment of this access fee is now past. 2. Statutory Basis
The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\9\ in general, and furthers the objectives of Section 6(b)(4) of the Act,\10\ in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among persons using its facilities. B. SelfRegulatory Organization's Statement on Burden on Competition \9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
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. SelfRegulatory 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.
[[Page 27586]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
Because the foregoing rule change establishes or changes a due,
fee, or other charge imposed by the Exchange, it has become effective
pursuant to Section 19(b)(3)(A) of the Act \11\ and subparagraph (f)(2)
of Rule 19b4 \12\ 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. \11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b4(f)(2).
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
Paper Comments
All submissions should refer to File Number SRCBOE200852. This file number should be included on the subject line if email 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 am and 3 pm. 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. SRCBOE200852 and should be submitted on or before June 3, 2008.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\
\13\ 17 CFR 200.303(a)(12).
Nancy M. Morris,
Secretary.
[FR Doc. E810620 Filed 51208; 8:45 am]
BILLING CODE 801001P
SUMMARY:
Chicago Board Options Exchange, Inc.,
DOCUMENT BODY 2:
May 7, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b4 thereunder,\2\ notice is hereby given that
on April 30, 2008, 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 the
Exchange. CBOE has designated this proposal as one establishing or
changing a due, fee, or other charge imposed by the Exchange under
Section 19(b)(3)(A),\3\ and Rule 19b4(f)(2) thereunder,\4\ which
renders the proposal effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the proposed rule change from interested parties.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b4(f)(2).
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
CBOE proposes to adjust the monthly access fee for persons granted
temporary CBOE membership status (``Temporary Members'') pursuant to
Interpretation and Policy .02 under CBOE Rule 3.19 (``Rule 3.19.02'').
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. SelfRegulatory 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. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
1. Purpose
The current access fee for Temporary Members under Rule 3.19.02 \5\
is $8,260 per month and took effect on April 1, 2008. The Exchange
proposes to revise the access fee to be $10,079 per month commencing on May 1, 2008.
\5\ See Securities Exchange Act Release No. 56458 (September 18,
2007), 72 FR 54309 (September 24, 2007) (SRCBOE2007107) for a
description of the Temporary Membership status under Rule 3.19.02.
The Exchange used the following process to set the proposed access
fee: The Exchange polled each of the clearing firms that assists in
facilitating at least 10% of the transferable CBOE membership leases
and obtained the Clearing Firm Floating Monthly Rate \6\ designated by
each of these clearing firms for the month of May 2008. The Exchange
then set the proposed access fee at an amount equal to the highest of these Clearing Firm Floating Monthly Rates.
\6\ The term ``Clearing Firm Floating Monthly Rate'' refers to
the floating monthly rate that a clearing firm designates, in
connection with transferable membership leases that the clearing
firm assisted in facilitating, for leases that utilize that floating monthly rate.
The Exchange used the same process to set the proposed access fee that it used to set the current access fee. The only difference is that the Exchange used Clearing Firm Floating Monthly Rate information for the month of May 2008 to set the proposed access fee (instead of Clearing Firm Floating Monthly Rate information for the month of April 2008 as was used to set the current access fee) in order to take into account changes in Clearing Firm Floating Monthly Rates for the month of May 2008.
The Exchange believes that the process used to set the proposed
access fee and the proposed access fee itself are appropriate for the
same reasons set forth in CBOE rule filing SRCBOE200812 in support
of that process and the original access fee for Temporary Members under Rule 3.19.02.\7\
\7\ See Securities Exchange Act Release No. 57293 (February 8,
2008), 73 FR 8729 (February 14, 2008) (SRCBOE200812), which
established the original access fee for Temporary Members under Rule
3.19.02, for detail regarding the rationale in support of the
original access fee and the process used to set that fee, which is also applicable to this proposed rule change as well.
The proposed access fee will remain in effect until such time either that the Exchange submits a further rule filing pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ to modify the proposed access fee or the Temporary Membership status under Rule 3.19.02 is terminated. Accordingly, the Exchange may further adjust the proposed access fee in the future if the Exchange determines that it would be appropriate to do so taking into consideration lease rates for transferable CBOE memberships prevailing at that time.
\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
The procedural provisions of the CBOE Fee Schedule related to the assessment of the proposed access fee are not proposed to be changed and will remain the same as the current procedural provisions regarding the assessment of the current access fee. However, the Exchange is proposing to delete the current reference in the Fee Schedule which notes that the first month for which an access fee will be assessed to Temporary Members under Rule 3.19.02 is February 2008 because the commencement of the assessment of this access fee is now past. 2. Statutory Basis
The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\9\ in general, and furthers the objectives of Section 6(b)(4) of the Act,\10\ in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among persons using its facilities. B. SelfRegulatory Organization's Statement on Burden on Competition \9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
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. SelfRegulatory 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.
[[Page 27586]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
Because the foregoing rule change establishes or changes a due,
fee, or other charge imposed by the Exchange, it has become effective
pursuant to Section 19(b)(3)(A) of the Act \11\ and subparagraph (f)(2)
of Rule 19b4 \12\ 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. \11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b4(f)(2).
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
Paper Comments
All submissions should refer to File Number SRCBOE200852. This file number should be included on the subject line if email 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 am and 3 pm. 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. SRCBOE200852 and should be submitted on or before June 3, 2008.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\
\13\ 17 CFR 200.303(a)(12).
Nancy M. Morris,
Secretary.
[FR Doc. E810620 Filed 51208; 8:45 am]
BILLING CODE 801001P