80 FR 14185 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 52 (March 18, 2015)

Page Range		14185-14187
FR Document		2015-06109

Federal Register, Volume 80 Issue 52 (Wednesday, March 18, 2015)

[Federal Register Volume 80, Number 52 (Wednesday, March 18, 2015)]
[Notices]
[Pages 14185-14187]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2015-06109]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74491; File No. SR-CBOE-2015-025]

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

March 12, 2015.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on March 2, 2015, Chicago Board Options Exchange, Incorporated
(the ``Exchange'' or ``CBOE'') 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 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 Fees Schedule. The text of the
proposed rule change is available on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), 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, the Exchange 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. The Exchange 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, effective March
2, 2015. Currently, the Exchange assesses a $0.60 per contract fee for
electronic executions by broker-dealers, non-Trading Permit Holders
(``non-TPHs'') Market-Makers, Professionals/Voluntary Professionals and
Joint Back-Offices (``JBOs'') in non-Penny Pilot equity, ETF, ETN and
index options (excluding Underlying Symbol List A \3\) classes. The
Exchange proposes increasing this transaction fee from $0.60 to $0.65
per contract. The Exchange notes that this increase is in line with the
amount assessed by another exchange for similar transactions.\4\
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\3\ Underlying Symbol List A consists of OEX, XEO, SPX
(including SPXW), SPXpm, SRO, VIX, VXST, Volatility Indexes and
binary options.
\4\ See NASDAQ OMX PHLX LLC (``PHLX'') Pricing Schedule, Section
II, Multiply Listed Options Fees.
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The Exchange also seeks to append Footnote 16 to ``Clearing Trading
Permit Holder Proprietary'' rows in the equity, ETF, ETN, Index,
Specified Proprietary Index Options and Mini-Options rate tables.
Footnote 16 of the Fees Schedule provides that ``Broker-Dealer
transaction fees apply to broker-dealer orders (orders with ``B''
origin code), non-Trading Permit Holder market-maker orders (orders
with ``N'' origin code), orders from specialists in the underlying
security (orders with ``Y'' origin code) and certain orders with ``F''
origin code (orders from OCC members that are not CBOE Trading Permit
Holders).'' The Exchange believes appending Footnote 16 to the row in
which the ``F'' origin code is listed clarifies that, in some
instances, orders with the ``F'' origin code designation will be
assessed Broker-Dealer transaction fees if the orders are from the
Options Clearing Corporation (``OCC'') members that are not CBOE
Trading Permit Holders (``TPHs''). The Exchange notes no substantive
changes are being made by this change, rather the Exchange merely seeks
to add further clarification and alleviate potential confusion.
On January 2, 2015, the Exchange established an FBW fee for an
updated version of FBW (``FBW2''), which the Exchange had anticipated
making

[[Page 14186]]

available shortly thereafter to all TPHs.\5\ The Exchange at that time
also proposed adopting a fee waiver for the months of January and
February 2015, as well as provide that, after March 1, 2015, the
monthly fee for FBW2 login IDs would be waived for the first month.\6\
The Exchange notes that FBW2 has not yet become available to TPHs, but
that it intends to make it available shortly. In light of this delay,
the Exchange proposes to delete the now outdated language and extend
the fee waiver for the months of March and April 2015. Additionally,
the Exchange will provide that after May 1, 2015 (instead of March 1,
2015) the monthly fee for FBW2 login IDs will be waived for the first
month.\7\ The purpose of the proposed fee waivers is to give new users
time to become familiar with and fully acclimated to the new FBW
workstation functionality. The Exchange notes that after May 2015 (and
absent an applicable fee waiver noted above), TPHs will be charged each
of $400 for FBW and FBW2 (i.e., total of $800) if such users continue
to use both FBW and FBW2.
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\5\ See Securities Exchange Act Release No. 74134 (January 26,
2015), 80 FR 20 (January 30, 2015) (SR-CBOE-2015-005). The adopted
fee for FBW2 is the same as the existing FBW fee (i.e., $400 per
month (per login ID).
\6\ For example, if a user added a new login ID in March 2015,
the user would have received a fee waiver for that login ID for
March 2015.
\7\ For example, if a user adds a new login ID in May 2015, the
user would receive a fee waiver for that login ID for May 2015.
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\8\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \9\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitation
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with
Section 6(b)(4) of the Act,\10\ which requires that Exchange rules
provide for the equitable allocation of reasonable dues, fees, and
other charges among its Trading Permit Holders and other persons using
its facilities.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ 15 U.S.C. 78f(b)(4).
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Increasing the fee for electronic executions by broker-dealers,
non-TPHs, [sic] Market-Makers, Professionals/Voluntary Professionals
and JBOs in non-Penny Pilot equity, ETF, ETN and Index options
(excluding Underlying Symbol List A) classes is reasonable because the
proposed fee amount is in line with the amount assessed by another
exchange for similar transactions.\11\
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\11\ See PHLX Pricing Schedule, Section II, Multiply Listed
Options Fees.
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The Exchange believes that this proposed change is equitable and
not unfairly discriminatory because the Exchange will assess broker-
dealers, non-TPH Market-Makers, Professionals/Voluntary Professionals
and JBOs the same electronic options transaction fees in non-Penny
Pilot options classes. The Exchange notes that it does not assess
Customers the electronic options transaction fees in non-Penny Pilot
options because Customer order flow enhances liquidity on the Exchange
for the benefit of all market participants. Specifically, Customer
liquidity benefits all market participants by providing more trading
opportunities, which attracts Market-Makers. An increase in the
activity of these market participants in turn facilitates tighter
spreads, which may cause an additional corresponding increase in order
flow from other market participants. The Exchange notes that Market-
Makers are assessed lower electronic options transaction fees in non-
Penny Pilot options as compared to Professionals, JBOs, Broker Dealers
and non-Trading Permit Holder Market-Makers because they have
obligations to the market and regulatory requirements, which normally
do not apply to other market participants (e.g., obligations to make
continuous markets). Further, Market-Makers pay a $0.65 per contract
Marketing Fee for many non-Penny Pilot transactions, which broker-
dealers, non-Trading Permit Holder Market-Makers, Professionals/
Voluntary Professionals and JBOs do not pay.\12\ Clearing Trading
Permit Holder Proprietary orders are assessed lower options transaction
fees in non-Penny Pilot options because they also have obligations,
which normally do not apply to other market participants (e.g., must
have higher capital requirements, clear trades for other market
participants, must be members of OCC). Accordingly, the differentiation
between electronic transaction fees for Customers, Market-Makers,
Clearing Trading Permit Holders and other market participants
recognizes the differing obligations and contributions made to the
liquidity and trading environment on the Exchange by these market
participants.
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\12\ See CBOE Fees Schedule, Marketing Fee.
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Assessing higher fees for transactions in electronic, non-Penny
Pilot classes is equitable and not unfairly discriminatory because in
non-Penny Pilot classes the spreads are naturally larger than in Penny
Pilot classes, and these wider spreads allow for greater profit
potential. Limiting this fee increase to electronic transactions is
equitable and not unfairly discriminatory because electronic trading
requires constant system development and maintenance.
The Exchange always strives for clarity in its rules and Fees
Schedule, so that market participants may best understand how rules and
fees apply. The Exchange believes appending Footnote 16 to ``Clearing
Trading Permit Holder Proprietary'' in the rates tables alleviates
potential confusion. The alleviation of potential confusion will remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, protect investors and the
public interest.
Finally, the Exchange believes it is reasonable to provide a waiver
for the months of March and April 2015 because it allows new users time
to become familiar with and fully acclimated to the new FBW
functionality and incentivizes the users to begin this process as soon
as the new functionality becomes available. The Exchange believes it is
reasonable to provide a waiver for the first month for a new login ID
beginning May 1, 2015, because it allows a new user after April 2015 to
fully acclimate to the new FBW functionality. Additionally, the
Exchange notes it is merely extending existing waivers to correspond
with a delayed launch of FBW2.

B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange 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, because, while the fee
increase will apply only to certain market participants, market
participants have different obligations and different circumstances (as
described in the ``Statutory Basis'' section above). The Exchange does
not believe that the proposed rule change relating to the FBW 2 fee
waivers will impose any burden on competition that

[[Page 14187]]

is not necessary or appropriate in furtherance of the purposes of the
Act, because it applies to all Trading Permit Holders. The Exchange
believes this proposal will not cause an unnecessary burden on
intermarket competition because the electronic non-Penny Pilot
transaction fee and fee amount is similar to fees assessed at other
exchanges.\13\ Additionally, the proposal relating to the FBW2 fee
waivers only affect trading on CBOE. To the extent that the proposed
changes make CBOE a more attractive marketplace for market participants
at other exchanges, such market participants are welcome to become CBOE
market participants.
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\13\ See e.g., PHLX Pricing, Section II, Multiply Listed Options
Fees.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

The Exchange neither solicited nor received comments on 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 \14\ and paragraph (f) of Rule 19b-4 \15\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend 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. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f).
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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:

Electronic Comments

Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-CBOE-2015-025 on the subject line.

Paper Comments

Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-CBOE-2015-025. 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 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
10:00 a.m. and 3:00 p.m. Copies of the 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-2015-025 and should be
submitted on or before April 8, 2015.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-06109 Filed 3-17-15; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Notices 14185

and publishes its reasons for so finding should be submitted on or before April Exchange has prepared summaries, set
or (ii) as to which the self-regulatory 8, 2015. forth in sections A, B, and C below, of
organization consents, the Commission For the Commission, by the Division of the most significant aspects of such
will issue an order approving or Trading and Markets, pursuant to delegated statements.
disapproving such proposed rule authority.115
A. Self-Regulatory Organization’s
change, as amended. Brent J. Fields, Statement of the Purpose of, and
V. Solicitation of Comments Secretary. Statutory Basis for, the Proposed Rule
[FR Doc. 2015–06092 Filed 3–17–15; 08:45 am] Change
Interested persons are invited to BILLING CODE 8011–01–P
submit written data, views and 1. Purpose
arguments concerning the foregoing,
including whether the proposed rule The Exchange proposes to amend its
SECURITIES AND EXCHANGE Fees Schedule, effective March 2, 2015.
change is consistent with the Act. COMMISSION
Comments may be submitted by any of Currently, the Exchange assesses a $0.60
the following methods: 114 [Release No. 34–74491; File No. SR–CBOE– per contract fee for electronic
2015–025] executions by broker-dealers, non-
Electronic Comments Trading Permit Holders (‘‘non-TPHs’’)
Self-Regulatory Organizations; Market-Makers, Professionals/Voluntary
• Use the Commission’s Internet Chicago Board Options Exchange,
comment form (http://www.sec.gov/ Professionals and Joint Back-Offices
Incorporated; Notice of Filing and (‘‘JBOs’’) in non-Penny Pilot equity,
rules/sro.shtml); or Immediate Effectiveness of a Proposed
• Send an email to rule-comments@ ETF, ETN and index options (excluding
Rule Change To Amend the Fees Underlying Symbol List A 3) classes.
sec.gov. Please include File Number SR– Schedule
FINRA–2014–047 on the subject line. The Exchange proposes increasing this
March 12, 2015. transaction fee from $0.60 to $0.65 per
Paper Comments Pursuant to Section 19(b)(1) of the contract. The Exchange notes that this
• Send paper comments in triplicate Securities Exchange Act of 1934 (the increase is in line with the amount
to Brent J. Fields, Secretary, Securities ‘‘Act’’),1 and Rule 19b–4 thereunder,2 assessed by another exchange for similar
and Exchange Commission, 100 F Street notice is hereby given that on March 2, transactions.4
NE., Washington, DC 20549–1090. 2015, Chicago Board Options Exchange, The Exchange also seeks to append
All submissions should refer to File Incorporated (the ‘‘Exchange’’ or Footnote 16 to ‘‘Clearing Trading Permit
Number SR–FINRA–2014–047. This file ‘‘CBOE’’) filed with the Securities and Holder Proprietary’’ rows in the equity,
number should be included on the Exchange Commission (the ETF, ETN, Index, Specified Proprietary
subject line if email is used. To help the ‘‘Commission’’) the proposed rule Index Options and Mini-Options rate
Commission process and review your change as described in Items I, II, and tables. Footnote 16 of the Fees Schedule
comments more efficiently, please use III below, which Items have been provides that ‘‘Broker-Dealer transaction
only one method. The Commission will prepared by the Exchange. The fees apply to broker-dealer orders
post all comments on the Commission’s Commission is publishing this notice to (orders with ‘‘B’’ origin code), non-
Internet Web site (http://www.sec.gov/ solicit comments on the proposed rule Trading Permit Holder market-maker
rules/sro.shtml). Copies of the change from interested persons. orders (orders with ‘‘N’’ origin code),
submission, all subsequent orders from specialists in the underlying
I. Self-Regulatory Organization’s
amendments, all written statements security (orders with ‘‘Y’’ origin code)
Statement of the Terms of Substance of
with respect to the proposed rule and certain orders with ‘‘F’’ origin code
the Proposed Rule Change
change that are filed with the (orders from OCC members that are not
The Exchange proposes to amend its CBOE Trading Permit Holders).’’ The
Commission, and all written
Fees Schedule. The text of the proposed Exchange believes appending Footnote
communications relating to the
rule change is available on the 16 to the row in which the ‘‘F’’ origin
proposed rule change between the
Exchange’s Web site (http:// code is listed clarifies that, in some
Commission and any person, other than
www.cboe.com/AboutCBOE/ instances, orders with the ‘‘F’’ origin
those that may be withheld from the
CBOELegalRegulatoryHome.aspx), at code designation will be assessed
public in accordance with the
the Exchange’s Office of the Secretary, Broker-Dealer transaction fees if the
provisions of 5 U.S.C. 552, will be
and at the Commission’s Public orders are from the Options Clearing
available for Web site viewing and
Reference Room. Corporation (‘‘OCC’’) members that are
printing in the Commission’s Public
Reference Room, 100 F Street NE., II. Self-Regulatory Organization’s not CBOE Trading Permit Holders
Washington, DC 20549, on official Statement of the Purpose of, and (‘‘TPHs’’). The Exchange notes no
business days between the hours of 10 Statutory Basis for, the Proposed Rule substantive changes are being made by
a.m. and 3 p.m. Copies of such filing Change this change, rather the Exchange merely
also will be available for inspection and seeks to add further clarification and
In its filing with the Commission, the alleviate potential confusion.
copying at the principal office of Exchange included statements
FINRA. All comments received will be On January 2, 2015, the Exchange
concerning the purpose of and basis for
posted without change; the Commission established an FBW fee for an updated
the proposed rule change and discussed
does not edit personal identifying version of FBW (‘‘FBW2’’), which the
mstockstill on DSK4VPTVN1PROD with NOTICES

any comments it received on the
information from submissions. You Exchange had anticipated making
proposed rule change. The text of these
should submit only information that statements may be examined at the
you wish to make available publicly. All places specified in Item IV below. The
3 Underlying Symbol List A consists of OEX,

submissions should refer to File XEO, SPX (including SPXW), SPXpm, SRO, VIX,
VXST, Volatility Indexes and binary options.
Number SR–FINRA–2014–047 and 115 17CFR 200.30–3(a)(12). 4 See NASDAQ OMX PHLX LLC (‘‘PHLX’’)
1 15 U.S.C. 78s(b)(1). Pricing Schedule, Section II, Multiply Listed
114 See supra note 6. 2 17 CFR 240.19b–4. Options Fees.

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14186 Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Notices

available shortly thereafter to all TPHs.5 requires that Exchange rules provide for transaction fees for Customers, Market-
The Exchange at that time also proposed the equitable allocation of reasonable Makers, Clearing Trading Permit
adopting a fee waiver for the months of dues, fees, and other charges among its Holders and other market participants
January and February 2015, as well as Trading Permit Holders and other recognizes the differing obligations and
provide that, after March 1, 2015, the persons using its facilities. contributions made to the liquidity and
monthly fee for FBW2 login IDs would Increasing the fee for electronic trading environment on the Exchange by
be waived for the first month.6 The executions by broker-dealers, non-TPHs, these market participants.
Exchange notes that FBW2 has not yet [sic] Market-Makers, Professionals/ Assessing higher fees for transactions
become available to TPHs, but that it Voluntary Professionals and JBOs in in electronic, non-Penny Pilot classes is
intends to make it available shortly. In non-Penny Pilot equity, ETF, ETN and equitable and not unfairly
light of this delay, the Exchange Index options (excluding Underlying discriminatory because in non-Penny
proposes to delete the now outdated Symbol List A) classes is reasonable Pilot classes the spreads are naturally
language and extend the fee waiver for because the proposed fee amount is in larger than in Penny Pilot classes, and
the months of March and April 2015. line with the amount assessed by these wider spreads allow for greater
Additionally, the Exchange will provide another exchange for similar profit potential. Limiting this fee
that after May 1, 2015 (instead of March transactions.11 increase to electronic transactions is
1, 2015) the monthly fee for FBW2 login The Exchange believes that this equitable and not unfairly
IDs will be waived for the first month.7 proposed change is equitable and not discriminatory because electronic
The purpose of the proposed fee waivers unfairly discriminatory because the trading requires constant system
is to give new users time to become Exchange will assess broker-dealers, development and maintenance.
familiar with and fully acclimated to the non-TPH Market-Makers, Professionals/ The Exchange always strives for
new FBW workstation functionality. Voluntary Professionals and JBOs the clarity in its rules and Fees Schedule, so
The Exchange notes that after May 2015 same electronic options transaction fees that market participants may best
(and absent an applicable fee waiver in non-Penny Pilot options classes. The understand how rules and fees apply.
noted above), TPHs will be charged each Exchange notes that it does not assess The Exchange believes appending
of $400 for FBW and FBW2 (i.e., total Customers the electronic options Footnote 16 to ‘‘Clearing Trading Permit
of $800) if such users continue to use transaction fees in non-Penny Pilot Holder Proprietary’’ in the rates tables
both FBW and FBW2. options because Customer order flow alleviates potential confusion. The
enhances liquidity on the Exchange for alleviation of potential confusion will
2. Statutory Basis the benefit of all market participants. remove impediments to and perfect the
The Exchange believes the proposed Specifically, Customer liquidity benefits mechanism of a free and open market
rule change is consistent with the all market participants by providing and a national market system, and, in
Securities Exchange Act of 1934 (the more trading opportunities, which general, protect investors and the public
‘‘Act’’) and the rules and regulations attracts Market-Makers. An increase in interest.
thereunder applicable to the Exchange the activity of these market participants Finally, the Exchange believes it is
and, in particular, the requirements of in turn facilitates tighter spreads, which reasonable to provide a waiver for the
Section 6(b) of the Act.8 Specifically, may cause an additional corresponding months of March and April 2015
the Exchange believes the proposed rule increase in order flow from other market because it allows new users time to
change is consistent with the Section participants. The Exchange notes that become familiar with and fully
6(b)(5) 9 requirements that the rules of Market-Makers are assessed lower acclimated to the new FBW
an exchange be designed to prevent electronic options transaction fees in functionality and incentivizes the users
fraudulent and manipulative acts and non-Penny Pilot options as compared to to begin this process as soon as the new
practices, to promote just and equitable Professionals, JBOs, Broker Dealers and functionality becomes available. The
principles of trade, to foster cooperation non-Trading Permit Holder Market- Exchange believes it is reasonable to
and coordination with persons engaged Makers because they have obligations to provide a waiver for the first month for
in regulating, clearing, settling, the market and regulatory requirements, a new login ID beginning May 1, 2015,
processing information with respect to, which normally do not apply to other because it allows a new user after April
and facilitation transactions in market participants (e.g., obligations to 2015 to fully acclimate to the new FBW
securities, to remove impediments to make continuous markets). Further, functionality. Additionally, the
and perfect the mechanism of a free and Market-Makers pay a $0.65 per contract Exchange notes it is merely extending
open market and a national market Marketing Fee for many non-Penny Pilot existing waivers to correspond with a
system, and, in general, to protect transactions, which broker-dealers, non- delayed launch of FBW2.
investors and the public interest. Trading Permit Holder Market-Makers, B. Self-Regulatory Organization’s
Additionally, the Exchange believes the Professionals/Voluntary Professionals Statement on Burden on Competition
proposed rule change is consistent with and JBOs do not pay.12 Clearing Trading
Section 6(b)(4) of the Act,10 which Permit Holder Proprietary orders are The Exchange does not believe that
assessed lower options transaction fees the proposed rule change will impose
5 See Securities Exchange Act Release No. 74134
in non-Penny Pilot options because they any burden on competition that is not
(January 26, 2015), 80 FR 20 (January 30, 2015) (SR–
also have obligations, which normally necessary or appropriate in furtherance
CBOE–2015–005). The adopted fee for FBW2 is the of the purposes of the Act, because,
same as the existing FBW fee (i.e., $400 per month do not apply to other market
(per login ID). participants (e.g., must have higher while the fee increase will apply only to
mstockstill on DSK4VPTVN1PROD with NOTICES

6 For example, if a user added a new login ID in
capital requirements, clear trades for certain market participants, market
March 2015, the user would have received a fee
other market participants, must be participants have different obligations
waiver for that login ID for March 2015. and different circumstances (as
7 For example, if a user adds a new login ID in members of OCC). Accordingly, the
differentiation between electronic described in the ‘‘Statutory Basis’’
May 2015, the user would receive a fee waiver for
that login ID for May 2015. section above). The Exchange does not
8 15 U.S.C. 78f(b). 11 See PHLX Pricing Schedule, Section II, believe that the proposed rule change
9 15 U.S.C. 78f(b)(5). Multiply Listed Options Fees. relating to the FBW 2 fee waivers will
10 15 U.S.C. 78f(b)(4). 12 See CBOE Fees Schedule, Marketing Fee. impose any burden on competition that

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Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Notices 14187

is not necessary or appropriate in Paper Comments SECURITIES AND EXCHANGE
furtherance of the purposes of the Act, COMMISSION
because it applies to all Trading Permit • Send paper comments in triplicate
Holders. The Exchange believes this to Brent J. Fields, Secretary, Securities
[Release No. 34–74492 ; File No. SR–
proposal will not cause an unnecessary and Exchange Commission, 100 F Street
NYSEArca–2015–13]
burden on intermarket competition NE., Washington, DC 20549–1090.
because the electronic non-Penny Pilot All submissions should refer to File Self-Regulatory Organizations; NYSE
transaction fee and fee amount is similar Number SR–CBOE–2015–025. This file Arca, Inc.; Notice of Filing and
to fees assessed at other exchanges.13 number should be included on the Immediate Effectiveness of Proposed
Additionally, the proposal relating to Rule Change Amending the NYSE Arca
subject line if email is used. To help the
the FBW2 fee waivers only affect trading Options Fee Schedule Relating to
Commission process and review your
on CBOE. To the extent that the Market Maker Posting Credit Tiers
proposed changes make CBOE a more comments more efficiently, please use
attractive marketplace for market only one method. The Commission will
March 12, 2015.
participants at other exchanges, such post all comments on the Commission’s
Internet Web site (http://www.sec.gov/ Pursuant to Section 19(b)(1) 1 of the
market participants are welcome to
become CBOE market participants. rules/sro.shtml). Copies of the Securities Exchange Act of 1934 (the
submission, all subsequent ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
C. Self-Regulatory Organization’s amendments, all written statements notice is hereby given that, on March 2,
Statement on Comments on the with respect to the proposed rule 2015, NYSE Arca, Inc. (the ‘‘Exchange’’
Proposed Rule Change Received From change that are filed with the or ‘‘NYSE Arca’’) filed with the
Members, Participants, or Others Commission, and all written Securities and Exchange Commission
The Exchange neither solicited nor communications relating to the (the ‘‘Commission’’) the proposed rule
received comments on the proposed proposed rule change between the change as described in Items I, II, and
rule change. Commission and any person, other than III below, which Items have been
those that may be withheld from the prepared by the self-regulatory
III. Date of Effectiveness of the organization. The Commission is
public in accordance with the
Proposed Rule Change and Timing for publishing this notice to solicit
Commission Action provisions of 5 U.S.C. 552, will be
available for Web site viewing and comments on the proposed rule change
The foregoing rule change has become printing in the Commission’s Public from interested persons.
effective pursuant to Section 19(b)(3)(A) Reference Room, 100 F Street NE., I. Self-Regulatory Organization’s
of the Act 14 and paragraph (f) of Rule Washington, DC 20549 on official
19b–4 15 thereunder. At any time within Statement of the Terms of Substance of
business days between the hours of the Proposed Rule Change
60 days of the filing of the proposed rule 10:00 a.m. and 3:00 p.m. Copies of the
change, the Commission summarily may filing also will be available for The Exchange proposes to amend the
temporarily suspend such rule change if inspection and copying at the principal NYSE Arca Options Fee Schedule (‘‘Fee
it appears to the Commission that such office of the Exchange. All comments Schedule’’) relating to Market Maker
action is necessary or appropriate in the received will be posted without change; Posting Credit Tiers. The Exchange
public interest, for the protection of
the Commission does not edit personal proposes to implement the fee change
investors, or otherwise in furtherance of
identifying information from effective March 2, 2015. The text of the
the purposes of the Act. If the
submissions. You should submit only proposed rule change is available on the
Commission takes such action, the
Commission will institute proceedings information that you wish to make Exchange’s Web site at www.nyse.com,
to determine whether the proposed rule available publicly. All submissions at the principal office of the Exchange,
change should be approved or should refer to File Number SR–CBOE– and at the Commission’s Public
disapproved. 2015–025 and should be submitted on Reference Room.
or before April 8, 2015.
IV. Solicitation of Comments II. Self-Regulatory Organization’s
For the Commission, by the Division of Statement of the Purpose of, and
Interested persons are invited to Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule
submit written data, views, and authority.16 Change
arguments concerning the foregoing, Brent J. Fields,
including whether the proposed rule Secretary. In its filing with the Commission, the
change is consistent with the Act. [FR Doc. 2015–06109 Filed 3–17–15; 8:45 am] self-regulatory organization included
Comments may be submitted by any of statements concerning the purpose of,
BILLING CODE 8011–01–P
the following methods: and basis for, the proposed rule change
Electronic Comments and discussed any comments it received
on the proposed rule change. The text
• Use the Commission’s Internet of those statements may be examined at
comment form (http://www.sec.gov/ the places specified in Item IV below.
rules/sro.shtml); or The Exchange has prepared summaries,
mstockstill on DSK4VPTVN1PROD with NOTICES

• Send an email to rule-comments@ set forth in sections A, B, and C below,
sec.gov. Please include File Number SR– of the most significant parts of such
CBOE–2015–025 on the subject line. statements.
13 See e.g., PHLX Pricing, Section II, Multiply
1 15 U.S.C.78s(b)(1).
Listed Options Fees.
14 15 U.S.C. 78s(b)(3)(A). 2 15 U.S.C. 78a.
15 17 CFR 240.19b–4(f). 16 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.

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Document Created: 2018-02-21 09:39:43
Document Modified: 2018-02-21 09:39:43

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 14185