[Federal Register Volume 77, Number 175 (Monday, September 10, 2012)]
[Notices]
[Pages 55515-55517]
[FR Doc No: 2012-22141]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67777; File No. SR-CBOE-2012-084]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Establish Transaction Fees for CBOE Range
Options on the S&P 500 Index

September 4, 2012.
    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 August 28, 2012, the Chicago Board Options Exchange,
Incorporated (``Exchange'' or ``CBOE'') 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 self-regulatory organization. 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

    Chicago Board Options Exchange, Incorporated (``CBOE'' or
``Exchange'') proposes to amend its Fees Schedule to establish fees for
transactions in CBOE Range Options on the S&P 500 Index (``SROs''). 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.

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 self-regulatory organization
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 those 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 parts 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 received approval to list and trade cash-settled,
European-style Range Options that overlie any index eligible for
options trading on the Exchange.\3\ Range Options pay an exercise
settlement amount if the settlement value of the underlying index at
expiration falls within the specified Range Length. As stated in the
Range Option approval order:
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    \3\ See Securities Exchange Act Release No. 57376 (February 25,
2008), 73 FR 11689 (March 4, 2008) (order approving SR-CBOE-2007-
104).

    The Commission believes that Range Options would provide
investors with a potentially useful investment choice. The
Commission notes that investors now can replicate the features and
structures of Range Options through the use of currently available
options traded on the Exchange.\13\ [NB: This superscript ``13''
represents footnote 13 in the Range Option approval order that was
published in the Federal Register, which is quoted below in text; it
does not represent a footnote in this filing.] The payout structure
of a Range Option can be replicated by purchasing four calls or puts
with varying strike prices. Range Options will enable investors to
obtain the same payout structure by purchasing one option, with the
potential of significantly reducing investors' transaction costs.\4\
(emphasis added).
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    \4\ 73 FR at 11692.

    The Exchange will list Range Options on the S&P 500 Index (Ticker:
SRO) beginning on August 28, 2012. The purpose of this filing is to
establish transaction fees for SROs. In considering the appropriate and
equitable amount of transaction fees for SROs, the Exchange considered
the fact that the exposure provided by Range Options is equivalent to
four option positions. Consistent with the spirit of the Commission's
observation noted above, the Exchange will not be assess [sic] a
transaction fee equal to the transaction fees for four options
positions, but rather will, in general, assess a transaction fee equal
to the transaction fees for two option positions. The Exchange believes
that this transaction cost level strikes the appropriate balance
between establishing reasonable fees and the Exchange's goal of
introducing new products to the marketplace that are competitively
priced.
    The amount of transaction fees for SROs \5\ will be as follows:
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    \5\ CBOE is adding ``SRO'' to the title of the Index Options
Rate Table, which will exclude SROs from the fees set forth in that
table and adding ``SRO'' to the Proprietary Index Options Rate
Table, which will set forth the fees for SROs in that table, to the
Fees Schedule. See pages 19 [sic] and 20 [sic] to Exhibit 5.
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     Customer, Professional Customer and Voluntary Professional
Customer: $0.80 per contract for customer, professional customer and
voluntary professional customer transactions.\6\ The Exchange notes
that the customer, professional customer and voluntary professional
customer fees for standard S&P 500 Index (``SPX'') options are: (a)
$0.44 per contract if the premium is greater than or equal to $1, and
(b) $0.35 per contract if the premium is less than $1. For ease of use,
the Exchange is proposing to establish a single fee for customer,
professional customer and voluntary professional customer transactions
in SROs regardless of the premium amount. The Exchange is not proposing
to double the amount of either existing standard SPX option fee, but
rather used those fees as a measure for setting the proposed $0.80 per
contract fee. The Exchange also proposes to layer SROs into the
existing Customer Large Trade Discount regime for other S&P products,
which will limit the amount of customer transaction fees to the first
10,000 contracts.\7\
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    \6\ See page 20 [sic] to Exhibit 5.
    \7\ See proposed addition of ``SRO'' to the Customer Large Trade
Discount Table to the Fees Schedule. See page 22 [sic] to Exhibit 5.
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     CBOE Market-Maker, Designated Primary Market-Maker
(``DPM''), E-DPM and Lead Market-Maker (``LMM''): $0.40 per contract
for CBOE Market-Maker DPM, E-DPM and LMM transactions, which is equal
to double the transaction fee equal for a single standard SPX
option.\8\ As with some other S&P products, transactions in SROs will
be excluded from the Liquidity Provider Sliding Scale.\9\
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    \8\ See page 20 [sic] to Exhibit 5.
    \9\ See proposed addition of ``SRO'' to the Liquidity Provider
Sliding Scale Table to the Fees Schedule. See page 20 [sic] to
Exhibit 5. As explained in SR-CBOE-2012-008, the Exchange excludes
certain proprietary, singly-listed products from the Liquidity
Provider Sliding Scale because the Exchange has ``expended
considerable resources developing its singly-listed products.'' See
Securities Exchange Act Release No. 66277 (January 30, 2012), 77 FR
5595 (February 3, 2012).
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     Clearing Trading Permit Holder Proprietary: $0.50 per
contract for Clearing Trading Permit Holder Proprietary transactions,
which is equal to double the transaction fee for a single standard SPX
option.\10\ As with some other S&P products, transactions in SROs will
be excluded from the Clearing Trading Permit Holder Fee Cap.\11\ The
Exchange also proposes to

exclude SROs from the CBOE Proprietary Products Sliding Scale.\12\
Because the CBOE Proprietary Products Sliding Scale is structured on a
per contract basis and because SROs provide the exposure of four
contracts, the Exchange believes that it is appropriate to exclude
SROs. As with other S&P products, firm facilitations for SROs will not
be free. To reflect this, the Exchange is adding ``SROs'' to this
provision in the ``Notes'' section to the Clearing Trading Permit
Holder Fee Cap Table.\13\ Products such as SROs are assessed fees for
firm facilitations because they are proprietary and the Exchange has
expended considerable resources developing its singly-listed products.
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    \10\ See page 20 [sic] to Exhibit 5.
    \11\ See proposed addition of ``SRO'' to Clearing Trading Permit
Holder Fee Cap Table and to footnote 11 to the Fees Schedule. See
pages 21 [sic] and 32 [sic] to Exhibit 5. See Securities Exchange
Act Release No. 63701 (January 11, 2011), 76 FR 2934 (January 18,
2011) (notice of SR-CBOE-2010-116 which filing, among other things,
established a multiply-listed options fee cap and a CBOE proprietary
products sliding scale).
    \12\ See proposed addition of the sentence ``SROs are excluded
from the CBOE Proprietary Products Sliding Scale'' to the CBOE
Proprietary Products Sliding Scale Table. See page 21 [sic] to
Exhibit 5.
    \13\ See proposed addition of ``SRO'' to the CBOE Trading Permit
Holder Fee Cap Table. See page 21 [sic] to Exhibit 5.
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     Broker-Dealer and Non-Trading Permit Holder Market-Maker:
$0.80 per contract for Broker-Dealer and Non-Trading Permit Holder
Market-Maker transactions, which is equal to double the transaction fee
for a single standard SPX option.\14\
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    \14\ See page 20 [sic] to Exhibit 5.
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     Marketing Fee: $0.00 per contract. As with certain other
S&P products, the Exchange proposes to add SROs to footnote 6 to the
Fees Schedule so that the Exchange's marketing fee will not apply to
SROs.\15\
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    \15\ See page 31 [sic] to Exhibit 5.
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     Floor Brokerage Fees: $0.08 for non-crossed orders and
$0.04 for crossed orders, which is equal to double the respective Floor
Brokerage fees for a single standard SPX option.\16\ SROs will be
excluded from the calculation of the additional monthly fee assessed to
any Floor Broker Trading Privilege Holder that executes more than
20,000 standard SPX options during the month.\17\
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    \16\ See proposed addition of ``SRO'' and ``SRO Crossed Orders''
to the Floor Brokerage and PAR Official Fees Table to the Fees
Schedule. See page 24 [sic] to Exhibit 5.
    \17\ See proposed addition of the sentence ``For purposes of
determining the 20,000 contract per month threshold, SRO executions
are excluded for purposes of the calculation of executed SPX
contracts during the month'' to footnote 25 to the Fees Schedule at
page 34 [sic] to Exhibit 5.
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     Surcharge Fee (Index License): $0.20 on all non-public
customer transactions in SROs.\18\ The Index License fee helps the
Exchange recoup some of the license fees that the Exchange pays to the
reporting authority.
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    \18\ See proposed addition of ``SRO'' to the Surcharge Fee
section of the Proprietary Index Options Rate Table to the Fees
Schedule. See page 20 [sic] to Exhibit 5.
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     AIM Contract Execution Fee: As with other certain S&P
products, applicable standard transaction fees will apply to AIM, SAM,
FLEX AIM and FLEX SAM transactions in SROs.\19\
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    \19\ See proposed addition of ``SRO'' to footnote 18 to the Fees
Schedule. See page 33 [sic] to Exhibit 5.
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    CBOE notes that SROs are eligible for trading on the Exchange as
Flexible Exchange (``FLEX'') options, although FLEX option trading
functionality is currently disabled.\20\ When FLEX trading is enabled
for SROs, CBOE will submit a filing to establish FLEX fees.
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    \20\ See CBOE Rule 20.12 (FLEX Trading) and CBOE Regulatory
Circular RG12-056 (CFLEX 2.0 Rollout Schedule and Settings) at page
4, issued on April 20, 2012.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Securities Exchange Act of 1934 (``Act''),\21\ in
general, and furthers the objectives of Section 6(b)(4) \22\ of the Act
in particular, in that it is designed to provide for the equitable
allocation of reasonable dues, fees, and other charges among CBOE
Trading Permit Holders and other persons using its facilities.
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    \21\ 15 U.S.C. 78f(b).
    \22\ 15 U.S.C. 78f(b)(4).
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    In setting the proposed transaction fees for SROs, the Exchange
considered the fact that the exposure provided by Range Options is
equivalent to four option positions. Consistent with the spirit of the
Commission's observation in the Range Option approval order (that Range
Options may reduce investor transaction costs), the Exchange determined
not to propose a transaction fee equal to the fees for four options
positions, but rather has proposed, in general, to assess a transaction
fee equal to the fees for two option positions. The Exchange believes
that this transaction cost level strikes the appropriate balance
between establishing reasonable fees and the Exchange's goal of
introducing new products to the marketplace that are competitively
prices [sic].
    The Exchange believes that the fees are equitable and do not
unfairly discriminate because they provide comparable pricing among
similar categories of market participants. The Exchange believes that a
fee of $0.80 per contract for Customer, Professional Customer,
Voluntary Professional Customer, Broker-Dealer and Non-Trading Permit
Holder Market-Maker transactions is equitable since those market
participants will effectively pay half of the transactions costs
associated with the exposure of four options.
    The Exchange believes that a fee of $0.40 per contract for CBOE
Market-Make, DPM, E-DPM and LMM transactions is equitable since those
market participants provide a valuable market service by adding
liquidity to the Exchange and since they are subject to liquidity
provider obligations. This standard rate is not subject to the
Liquidity Provider Sliding Scale as set forth in Footnote 10 to the
Fees Schedule. Excluding SROs from the Liquidity Provider Sliding Scale
is equitable and not unfairly discriminatory because all similarly-
situated market participants trading in the product will be charged the
same fees for such transactions and because the Exchange expended
significant resources developing SROs.
    The Exchange also believes that a fee of $0.50 per contract for
Clearing Trading Permit Holders is equitable since they contribute
capital to facilitate customer orders, which in turn provides a deeper
pool of liquidity that benefits all market participants. Excluding SROs
from the CBOE Proprietary Products Sliding Scale is equitable and not
unfairly discriminatory because that scale is structured on a per
contract basis and because SROs provide the exposure of four contracts.
Accordingly, the Exchange believes that it is appropriate to exclude
SROs. As with other S&P products, firm facilitations for SROs will not
be free. Products such as SROs are assessed fees for firm facilitations
because they are proprietary and the Exchange has expended considerable
resources developing its singly-listed products.

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 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 proposed rule change is designated by the Exchange as

establishing or changing a due, fee, or other charge, thereby
qualifying for effectiveness on filing pursuant to Section 19(b)(3)(A)
of the Act \23\ and subparagraph (f)(2) of Rule 19b-4\24\ 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.
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    \23\ 15 U.S.C. 78s(b)(3)(A).
    \24\ 17 C.F.R. 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. 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<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2012-084 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-2012-084. 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 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 publicly available. All
submissions should refer to File Number SR-CBOE-2012-084 and should be
submitted on or before October 1, 2012.
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    \25\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-22141 Filed 9-7-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 225 (Friday, November 24, 2023)]
[Notices]
[Page 82345]
[FR Doc No: 2023-25966]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 5867-000]

Alice Falls Hydro, LLC; Notice of Authorization for Continued
Project Operation

    The license for the Alice Falls Hydroelectric Project No. 5867 was
issued for a period ending September 30, 2023.
    Section 15(a)(1) of the FPA, 16 U.S.C. 808(a)(1), requires the
Commission, at the expiration of a license term, to issue from year-to-
year an annual license to the then licensee(s) under the terms and
conditions of the prior license until a new license is issued, or the
project is otherwise disposed of as provided in section 15 or any other
applicable section of the FPA. If the project's prior license waived
the applicability of section 15 of the FPA, then, based on section 9(b)
of the Administrative Procedure Act, 5 U.S.C. 558(c), and as set forth
at 18 CFR 16.21(a), if the licensee of such project has filed an
application for a subsequent license, the licensee may continue to
operate the project in accordance with the terms and conditions of the
license after the minor or minor part license expires, until the
Commission acts on its application. If the licensee of such a project
has not filed an application for a subsequent license, then it may be
required, pursuant to 18 CFR 16.21(b), to continue project operations
until the Commission issues someone else a license for the project or
otherwise orders disposition of the project.
    If the project is subject to section 15 of the FPA, notice is
hereby given that an annual license for Project No. 5867 is issued to
Alice Falls Hydro, LLC for a period effective October 1, 2023, through
September 30, 2024, or until the issuance of a new license for the
project or other disposition under the FPA, whichever comes first. If
issuance of a new license (or other disposition) does not take place on
or before September 30, 2024, notice is hereby given that, pursuant to
18 CFR 16.18(c), an annual license under section 15(a)(1) of the FPA is
renewed automatically without further order or notice by the
Commission, unless the Commission orders otherwise.
    If the project is not subject to section 15 of the FPA, notice is
hereby given that Alice Falls Hydro, LLC is authorized to continue
operation of the Alice Falls Hydroelectric Project under the terms and
conditions of the prior license until the issuance of a subsequent
license for the project or other disposition under the FPA, whichever
comes first.

    Dated: November 17, 2023.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2023-25966 Filed 11-22-23; 8:45 am]
BILLING CODE 6717-01-P