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Notice

Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to CBOE and CBSX Market Data Fees

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Start Preamble June 8, 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 (“Exchange” or “CBOE”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described Start Printed Page 32932in Items I, II, and III below, which Items have been substantially prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The Exchange proposes to amend its Fees Schedule to amend fees relating to CBOE's TickerXpress market data delivery service. The Exchange also proposes to amend the CBOE Stock Exchange (“CBSX”) Fees Schedule to establish a market data infrastructure fee. 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, 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

a. TickerXpress Fees

TickerXpress (“TX”) is an Exchange service that supplies market data to Exchange market-makers trading on the Hybrid Trading System. The Exchange proposes to amend its Fees Schedule as it relates to TX fees.

Currently, the Exchange charges members receiving TX market data a fee of $100 per month and charges members receiving “enhanced” TX market data a fee of $200 per month. Enhanced TX data are data that have been processed so that they can be used by market-makers utilizing quoting software. Recently, the Exchange's costs to process TX data have increased. The Exchange proposes to eliminate the $100 per month and $200 per month TX fees and replace them with a fee of $300 per month for enhanced TX market data only. The proposed fee would help compensate the Exchange for its increased costs in providing this data to Exchange members.

From time to time one or more third-party service providers may make available for license to TX users software for the use and display of market data (“TX Software”). The Exchange may also in the future make such software available to TX users. The Exchange proposes to adopt a fee of $100 per TX user per month for use of TX Software. The proposed fee will help the Exchange offset the license fees the Exchange pays its third-party service provider for providing the TX Software to Exchange members or offset the Exchange's own costs in making such software available.

b. CBSX Market Data Infrastructure Fee

CBSX has contracted with a third-party market data vendor and other parties to help establish facilities at CBSX through which the third-party market data vendor can provide CBSX participants with certain market data. The monthly cost to CBSX for maintaining the infrastructure to help make this market data available is $19,400. CBSX proposes to assess CBSX participants that receive this market data a monthly fee to recoup the fees CBSX pays for providing the infrastructure to make this market data available. The amount of the monthly fee shall be equal to $19,400 divided by the number of CBSX participants receiving the data.

The Exchange implemented the proposed fee changes on June 1, 2007.

2. Statutory Basis

The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act [3] in general, and furthers the objectives of Section 6(b)(4) [4] in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among CBOE members.

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.

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 proposed rule change establishes or changes a due, fee, or other charge imposed by the Exchange, it has become effective upon filing pursuant to Section 19(b)(3)(A) of the Act [5] and Rule 19b-4(f)(2) [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.

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

  • 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-2007-54. 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 Start Printed Page 32933communications 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. 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-2007-54 and should be submitted on or before July 5, 2007.

Start Signature

For the Commission, by the Division of Market Regulation, pursuant to delegated authority.[7]

Nancy M. Morris,

Secretary.

End Signature End Preamble

Footnotes

[FR Doc. E7-11488 Filed 6-13-07; 8:45 am]

BILLING CODE 8010-01-P