[Federal Register: July 9, 2007 (Volume 72, Number 130)]
[Notices]
[Page 37282-37283]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09jy07-123]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55984; File No. SR-CBOE-2007-53]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change, as Modified by Amendment No. 1 Thereto, Relating to an
Administrative CBOE Billing Rule
June 29, 2007.
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 May 29, 2007, 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 substantially
prepared by the CBOE. On June 28, 2007, the Exchange filed Amendment
No. 1 to the proposed rule change. The Commission is publishing this
notice to solicit comments on the proposed rule change, as amended,
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 make a change to an administrative CBOE
billing rule. The text of the proposed rule change is available at the
CBOE, on the Exchange's Web site at http://www.cboe.org/legal, and in
the Commission's Public Reference Room.
[[Page 37283]]
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
CBOE Rule 3.23 requires all CBOE members, other than lessor
members, to designate a CBOE Clearing Member for the payment of CBOE
invoices by means of the Exchange's Integrated Billing System
(``IBS''). From time to time, vendors have requested the Exchange to
act as their billing agent for vendor invoices for Exchange-related
services provided to members. The Exchange would like to enter into
arrangements with vendors under which the Exchange would collect
payment from members for vendor invoices for Exchange-related
services.\3\ Some of these arrangements may involve payment by the
vendor to the Exchange for performing this billing service, and some
may involve no payment to the Exchange as mutually agreed by the vendor
and the Exchange.
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\3\ The Exchange represents that, in the Exchange's written
agreement with each vendor for which the Exchange will collect
payments via IBS, the Exchange will require the vendor to include a
provision in the vendor's written agreement with each member from
which payments via IBS will be collected in which the member
authorizes CBOE to assess and collect from the member through CBOE's
billing procedures and automated systems, on behalf of the vendor,
the fees assessed by the vendor to the member for the vendor's
service. See Amendment No. 1 to the proposed rule change.
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The Exchange proposes to amend Rule 3.23 to make explicit that the
Exchange may collect such vendor fees that are designated by the
Exchange from members via the IBS. The proposed rule change would
benefit Exchange members in that it would allow members to pay vendor
invoices for Exchange-related services along with all of their Exchange
invoices via the IBS instead of having to receive and pay multiple
invoices. The proposed rule change would also benefit vendors in that
it would relieve vendors of the responsibility for individually billing
and collecting from each of their CBOE member customers.
2. Statutory Basis
The proposed rule change is an administrative rule change that is
designed to facilitate the efficiency of Exchange operations and to
ease administrative burdens on Exchange members by improving CBOE
billing procedures. Therefore, the Exchange believes that the proposed
rule change is consistent with the requirements provided under Section
6(b)(5) \4\ of the Act that the rules of an exchange be designed 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.
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\4\ 15 U.S.C. 78(f)(b)(5).
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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
Because the foregoing rule change is concerned solely with the
administration of the Exchange, it has become effective pursuant to
Section 19(b)(3)(A) of the Act \5\ and subparagraph (f)(3) of Rule 19b-
4 \6\ 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.\7\
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)(3).
\7\ For purposes of calculating the 60-day period within which
the Commission may summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission considers the period
to commence on June 28, 2007, the date on which CBOE submitted
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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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 e-mail to rule-comments@sec.gov. Please include
File Number SR-CBOE-2007-53 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2007-53. 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 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 CBOE. 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-2007-53 and should be submitted on or before July
30, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
Florence E. Harmon,
Deputy Secretary.
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\8\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E7-13165 Filed 7-6-07; 8:45 am]
BILLING CODE 8010-01-P