[Federal Register Volume 76, Number 148 (Tuesday, August 2, 2011)]
[Notices]
[Pages 46337-46340]
[FR Doc No: 2011-19451]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64977; File No. SR-BX-2011-044]

Self-Regulatory Organizations; NASDAQ OMX BX; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Increase the
Position Limit for Options on the SPDR[supreg]

July 27, 2011.
    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 July 13, 2011, NASDAQ OMX BX (the ``Exchange'') filed with the
Securities and Exchange Commission (the ``Commission'') the proposed
rule change as described in Items I and II below, which Items have been
prepared by the Exchange. The Exchange has designated the proposed rule
change as constituting a non-controversial rule change under Rule 19b-
4(f)(6) under the Act,\3\ 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 persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    The Exchange proposes to amend Chapter III, Section 7 (Position
Limits) of the Rules of the Boston Options Exchange Group, LLC
(``BOX'') to increase the position limit for options on the Standard
and Poor's Depositary Receipts (``SPDRs[supreg] '').\4\
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    \4\ ``SPDRs[supreg] '', ``Standard & Poor's[supreg] '',
``S&P[supreg] '', ``S&P 500[supreg] '', ``Standard & Poor's 500'',
and ``500'' are trademarks of The McGraw-Hill Companies, Inc.
SPDRs[supreg], also sometimes referred to colloquially as
``spiders'', are exchange traded funds (``ETFs'') based on the S&P
500[supreg] Index. Each share of the traditional SPDRs[supreg] ETF
(SPDRs[supreg] Trust Series 1) holds a stake in the 500 stocks
represented by the S&P 500[supreg], SPDRs[supreg], and options
thereon, are generally used by large institutions and traders as
bets on the overall direction of the market. They are also used by
individual retail investors who believe in passive management (index
investing).
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    Although the proposed rule change would not amend the text of
Chapter III, Section 9 of the BOX Rules (Exercise Limits), the proposed
change would have the effect of increasing the exercise limits for
options on SPDRs[reg]. Chapter III, Section 9 of the BOX Rules
establishes exercise limits that are similar to the position limits in
Chapter III, Section 7 of the BOX Rules.\5\
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    \5\ Index options position limits are established in Chapter
XIV, Sections 5 and 6 of the BOX Rules and index options exercise
limits are established in Chapter XIV, Section 8 of the BOX Rules,
and have a relationship similar to that of Chapter III, Section 9
and Chapter III, Section 7 of the BOX Rules.
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    The text of the proposed rule change is available at the Exchange's
Web site at http://www.nyse.com, on the Commission's Web site at http://www.sec.gov, 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
    The purpose of the proposal is to amend Supplementary Material .02
to Chapter III, Section 7 of the BOX Rules to increase the position
limit applicable to options on SPDRs[supreg], which are trading under
the symbol SPY, from 300,000 to 900,000 contracts on the same side of
the market.\6\ This proposal is similar to a rule change recently
proposed by the NASDAQ OMX PHLX, Inc. (``PHLX'').\7\
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    \6\ By virtue of Chapter III, Section 9 of the BOX Rules, which
is not amended by this filing, exercise limits on options on
SPDRs[supreg] would be similar to position limits established in
Chapter III, Section 7 of the BOX Rules.
    \7\ See Securities Exchange Act Release No. 64348 (April 27,
2011), 76 FR 24951 (May 3, 2011) (SR-Phlx-2011-58). See also
Securities Exchange Act Release No. 64695 (June, 17, 2011), 76 FR
36942 (June 23, 2011) (SR-Phlx-2011-58).
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    BOX began trading options on SPDRs[supreg] on January 10, 2005.
That year, the position limit for these options was increased to the
current limit of 300,000 contracts on the same side of the market, and
has remained unchanged.\8\

However, institutional and retail traders have greatly increased their
demand for options on SPDRs[supreg] for hedging and trading purposes,
such that these options have experienced an explosive gain in
popularity and have been the most actively traded options for the last
two years. For example, options on SPDRs[supreg] (SPY), the most
actively traded options in the U.S. in terms of volume, traded a total
of 33,341,698 contracts across all exchanges from March 1, 2011 through
March 16, 2011. In contrast, over the same time period options on the
Nasdaq-100 Index[supreg] Tracking Stock (``QQQ\SM\''),\9\ the third
most actively traded options, traded a total of 8,730,718 contracts
(less than 26.2% of the volume of options on SPDRs[supreg]).
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    \8\ See Securities Exchange Act Release No. 51069 (January 21,
2005), 70 FR 5260 (February 1, 2005) (SR-BSE-2005-05) (approval
order increasing position and exercise limits for options on
SPDRs[supreg] from 75,000 to 300,000 contracts on the same side of
the market) (the ``last position increase order''). See also
Securities Exchange Act Release Nos. 51071 (January 21, 2005), 70 FR
4911 (January 31, 2005) (SR-Phlx-2005-05) (approval order); 51043
(January 14, 2005), 70 FR 3402 (January 24, 2005) (SR-Amex-2005-06)
(approval order); 51041 (January 14, 2005), 70 FR 3408 (January 24,
2005) (SR-CBOE-2005-06) (approval order); and 51042 (January 14,
2005), 70 FR 3412 (January 24, 2005) (SR-ISE-2005-05) (approval
order).
    \9\ QQQ\SM\ options were formerly traded under the ticker symbol
QQQQ\SM\. QQQ\SM\, Nasdaq-100[supreg], Nasdaq-100 Index[supreg],
Nasdaq[supreg], Nasdaq-100 Index Tracking Stock\SM\, and are
trademarks or service marks of The Nasdaq Stock Market, Inc.
(``Nasdaq'').
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    Currently, SPY options have a position limit of only 300,000
contracts on the same side on the market while the significantly
lesser-volume QQQ\SM\ options, which are comparable to SPY options,
have a position limit of 900,000 contracts on the same side of the
market. BOX believes that SPY options should, like options on QQQ\SM\,
have a position limit of 900,000 contacts. Given the increase in volume
and continuous unprecedented demand for trading options on
SPDRs[supreg], BOX believes that the current position limit of 300,000
contracts \10\ is entirely too low and inadequate and is a deterrent to
the optimal use of the product for hedging and trading purposes. There
are multiple reasons to increase the position limit for SPY options.
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    \10\ Supplementary Material .02 to Chapter III, Section 7 of the
BOX Rules.
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    First, traders generally believe that the current SPY option
position limit of 300,000 contracts, which has remained the same for
more than five years despite the tremendous trading volume increase, is
no longer sufficient for optimal trading and hedging purposes. SPY
options are, as noted, used by large institutions and traders as a
means to invest in or hedge the overall direction of the market.
Second, options on SPDRs[supreg] are 1/10th the size of options on the
S&P 500[supreg] Index, traded under the symbol SPX. Thus, a position
limit of 300,000 contracts in options on SPDRs[supreg] is equivalent to
a 30,000 contract position limit in options on SPX.\11\ Traders who
trade options on SPDRs[supreg] to hedge positions in SPX options (and
the SPDRs[supreg] ETF based on SPX, SPDRs[supreg] Trust Series 1) have
indicated that the current position limit for options on SPDRs[supreg]
is simply too restrictive,\12\ which may adversely affect their (and
BOX's) ability to provide liquidity in this product. And third, the
products that are perhaps most comparable to options on SPDRs[supreg],
namely options on QQQ\SM\, are subject to a 900,000 contract position
limit on the same side of the market.\13\ This has, in light of the
huge run-up in SPY option trading making them the number one nationally
ranked option in terms of volume, resulted in a skewed and unacceptable
SPY option position limit. Specifically, the position limit for options
on SPDRs[supreg] at 300,000 contracts is but 33% of the position limit
for the less active options on QQQ\SM\ at 900,000 contracts.\14\ The
Exchange proposes that options on SPDRs[supreg] similarly be subject to
a position limit of 900,000 contracts.\15\
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    \11\ Chicago Board Options Exchange, which lists and trades SPX
options, has established that there is no position limit on SPX
options. See CBOE Rule 24.4 and Securities Exchange Act Release No.
44994 (October 26, 2001), 66 FR 55722 (November 2, 2001) (SR-CBOE-
2001-22) (order approving permanent elimination of SPX options
position limit).
    \12\ See supra note 4.
    \13\ See Supplementary Material .02 to Chapter III, Section 7 of
the BOX Rules and Securities Exchange Act Release No. 51317 (March
3, 2005), 70 FR 12254 (March 11, 2005) (SR-BSE-2005-10) (notice of
filing and immediate effectiveness).
    \14\ Similarly to options on SPDRs[supreg] (SPY) being 1/10th
the size of options on the related index S&P 500[supreg]Index (SPX),
so options on the Nasdaq-100 Index[supreg] Tracking Stock (QQQ\SM\)
are 1/10th the size of options on the related index NASDAQ-100 Index
(NDX). The position limit for QQQ\SM\ options and its related index
NDX have a comparable relationship to that of SPY options and SPX.
That is, the position limit for options on QQQ\SM\ is 900,000
contracts and there is no positions limit for NDX options. See supra
note 7 [sic] and Securities Exchange Act Release No. 52650 (October
21, 2005), 70 FR 62147 (October 28, 2005 (SR-CBOE-2001-41) (order
approving elimination of NDX options position limit).
    \15\ The position limit for IWM options on yet another large ETF
entitled iShares Russell 2000 Index Fund, (which options have
significantly less trading volume than the number one ranked SPY
options, as also the QQQ\SM\ options) are set at 500,000 contracts.
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    The options reporting requirement would continue unabated. Thus,
the Exchange would require that, just like for options on QQQ\SM\, each
Options Participant that maintains a position in SPDRs[supreg] options
on the same side of the market, for its own account or for the account
of a customer, must report certain information. This information would
include, but would not be limited to, the option position, whether such
position is hedged and if so, a description of the hedge and if
applicable, the collateral used to carry the position. In addition, the
general reporting requirement for customer accounts that maintain an
aggregate position of 200 or more option contracts (``large
positions'') would remain at this level for options on
SPDRs[supreg].\16\
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    \16\ For reporting requirements, see Chapter III, Section 10 of
the BOX Rules.
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    BOX believes that position and exercise limits, at their current
levels, no longer serve their stated purpose. There has been a
steadfast and significant increase over the last decade in the overall
volume of exchange-traded options; position limits, however, have not
kept up with the volume. Part of this volume is attributable to a
corresponding increase in the number of overall market participants,
which has, in turn, brought about additional depth and increased
liquidity in exchange-traded options.\17\
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    \17\ The Commission has previously observed that: Since the
inception of standardized options trading, the options exchanges
have had rules imposing limits on the aggregate number of options
contracts that a member or customer could hold or exercise. These
rules are intended to prevent the establishment of options positions
that can be used or might create incentives to manipulate or disrupt
the underlying market so as to benefit the options position. In
particular, position and exercise limits are designed to minimize
the potential for mini-manipulations and for corners or squeezes of
the underlying market. In addition such limits serve to reduce the
possibility for disruption of the options market itself, especially
in illiquid options classes. See Securities Exchange Act Release No.
39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-97-
11) (order approving).
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    The Exchange believes that the existing surveillance procedures and
reporting requirements at the Exchange, other options exchanges, and at
the several clearing firms are capable of properly identifying unusual
and/or illegal trading activity. These procedures utilize daily
monitoring of market movements via automated surveillance techniques to
identify unusual activity in both options and underlying stocks.\18\
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    \18\ These procedures have been effective for the surveillance
of SPY options trading and will continue to be employed.
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    Furthermore, large stock holdings must be disclosed to the
Commission by way of Schedules 13D or 13G.\19\ Options positions are
part of any reportable positions and, thus, cannot be legally hidden.
Moreover, the previously noted reporting requirement in Chapter III,
Section 10 of the BOX Rules that Options Participants file reports with
the Exchange for any customer who held aggregate large long or short
positions of any single class for the previous day will continue to
serve as an important part of the Exchange's surveillance efforts.
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    \19\ 17 CFR 240.13d-1.
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    BOX believes that the current financial requirements imposed by the
Exchange and by the Commission

adequately address concerns that an Options Participant or its customer
may try to maintain an inordinately large unhedged position in an
option, particularly on SPDRs[supreg]. Current margin and risk-based
haircut methodologies serve to limit the size of positions maintained
by any one account by increasing the margin and/or capital that an
Options Participant must maintain for a large position held by itself
or by its customer. It should also be noted that the Exchange has the
authority under Chapter XIII, Section 4(b) of the BOX Rules to impose a
higher margin requirement upon a BOX Options Participant when the
Exchange determines a higher requirement is warranted. In addition, the
Commission's net capital rule, Rule 15c3-1 under the Act,\20\ imposes a
capital charge on Participants to the extent of any margin deficiency
resulting from the higher margin requirement.
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    \20\ 17 CFR 240.15c3-1.
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    BOX believes that the position limit increase [sic] on options on
QQQs\SM\, which as noted are similar to options on SPDRs[supreg] have
been gradually increased from 75,000 contracts in 2005 to the current
level of 900,000 contracts, and there has been no adverse affects on
the market as a result of this increase. Likewise, there have been no
adverse affects on the market from the expansion of the position limit
for options on SPDRs[supreg] from 75,000 contracts to the current level
of 300,000 contracts.
    BOX believes that restrictive option position limits prevent large
customers, such as mutual funds and pension funds, from using options
to gain meaningful exposure to and hedging protection through the use
of options on SPDRs[supreg]. This can result in lost liquidity in both
the options market and the equity market. The proposed position limit
increase will remedy this situation to the benefit of large as well as
retail traders, investors, and public customers. BOX believes that
increasing position and exercise limits for options on SPDRs[supreg]
would lead to a more liquid and competitive market environment for
these options and would benefit customers interested in this product.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\21\ in general, and furthers
the objectives of Section 6(b)(5) of the Act,\22\ in particular, in
that it is 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 facilitating
transactions in securities, and to remove impediments to and perfect
the mechanisms of a free and open market and a national market system.
The Exchange is proposing to expand the position limit on options on
SPDRs[supreg]. The Exchange believes that this proposal will be
beneficial to large market makers (which generally have the greatest
potential and actual ability to provide liquidity and depth in the
product), as well as retail traders, investors, and public customers.
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    \21\ 15 U.S.C. 78f(b).
    \22\ 15 U.S.C. 78f(b)(5).
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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 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 either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Because the proposed rule change does not (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, provided that the self-regulatory
organization has given the Commission written notice of its intent to
file the proposed rule change at least five business days prior to the
date of filing of the proposed rule change or such shorter time as
designated by the Commission, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \23\ and Rule 19b-
4(f)(6) (iii) thereunder.\24\
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    \23\ 15 U.S.C. 78s(b)(3)(A).
    \24\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \25\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\26\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest,
because increasing position and exercise limits for SPY options would
lead to a more liquid and competitive market environment that would
benefit customers interested in this product. Additionally, it would
allow the Exchange to seamlessly continue to offer traders and the
investing public the ability to use this product as an effective
hedging and trading vehicle. Lastly, it will enable the Exchange's
position and exercise limits for SPDR[reg] options to be consistent
with those of other exchanges that have already adopted the higher
position and exercise limits. Therefore, the Commission designates the
proposal operative upon filing.\27\
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    \25\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires that a self-regulatory organization submit to the
Commission written notice of its intent to file the proposed rule
change, along with a brief description and text of the proposed rule
change, at least five business days prior to the filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Commission notes that the Exchange has satisfied
this requirement.
    \26\ 17 CFR 240.19b-4(f)(6)(iii).
    \27\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of such 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.

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<EMAIL_ADDRESS>Please include
File Number SR-BX-2011-044 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-BX-2011-044. 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 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
a.m. and 3 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 available publicly. All
submissions should refer to File No. SR-BX-2011-044 and should be
submitted on or before August 23, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
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    \28\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-19451 Filed 8-1-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 77, Number 225 (Wednesday, November 21, 2012)]
[Notices]
[Pages 69903-69905]
[FR Doc No: 2012-28261]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68241; File No. SR-CBOE-2012-107]

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

November 15, 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 November 2, 2012, 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.

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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On April 5, 2007, CBOE established an Order Router Subsidy Program
(``ORS Program'' or ``Program'') in which CBOE may enter into subsidy
arrangements with CBOE Trading Permit Holders (each, a ``Participating
TPH'') that provide certain order routing functionalities to other CBOE
TPHs and/or use such functionalities themselves.\3\ The Exchange later
extended this program to enable CBOE to establish such subsidy
arrangements with broker-dealers that are not CBOE TPHs (each a
``Participating Non-CBOE TPH'') and to permit Participating TPHs and
Non-CBOE TPH's [sic] to receive subsidy payments for providing order
routing functionality to broker-dealers who are not CBOE TPHs.\4\ (The
term ``Participant'' as used in this filing refers to either a
Participating TPH or a Participating Non-CBOE TPH). To qualify for the
subsidy arrangement, a Participant's order routing functionality has
to: (i) Enable the electronic routing of orders to all of the U.S.
options exchanges, including CBOE; (ii) provide current consolidated
market data from the U.S. options exchanges; and (iii) be capable of
interfacing with CBOE's API to access current CBOE trade engine
functionality. The routing system also needs to cause CBOE to be the
default destination exchange for individually executed marketable
orders if CBOE is at the national best bid or offer (``NBBO''),
regardless of size or time, but allow any user to manually override
CBOE as the default destination on an order-by-order basis. The order
routing functionality is required to incorporate a function allowing
orders at a specified price to be sent to multiple exchanges with a
single click (a ``sweep function'') and the sweep function would need
to be configured to cause an order to be sent to CBOE for up to the
full size quoted by CBOE if CBOE is at the NBBO. Any CBOE TPH or
broker-dealer that is not a CBOE TPH is permitted to avail itself of
this arrangement, provided that its order routing functionality
incorporates the features described above and satisfies CBOE that it
appears to be robust and reliable. The Participant is solely
responsible for implementing and operating its system.
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    \3\ See Securities Exchange Act Release No. 55629 (April 13,
2007) 72 FR 19992
    (April 20, 2007) (SR-CBOE-2007-34). Additionally, the
description of the current program was clarified in SR-CBOE-2008-27.
See Securities Exchange Act Release No. 57498 (March 14, 2008), 73
FR 15018 (March 20, 2008) (SR-CBOE-2008-27).
    \4\ See Securities Exchange Act Release No. 63631 (January 3,
2011) 76 FR 1203 (January 7, 2011) (SR-CBOE-2010-117).
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    Participants will receive a payment from CBOE for every executed
contract for orders routed to CBOE through that participating CBOE TPH
or Non-CBOE TPH's system to subsidize their costs

associated with providing order routing functionalities. The payment is
$.04 per executed contract for orders routed to CBOE through a
Participant's system.\5\ CBOE does not make payments under this Program
with respect to executed contracts in single-listed options classes
traded on CBOE, or with respect to complex orders or spread orders. The
Participants have to agree that they are not entitled to receive any
other revenue for the use of its system, specifically with respect to
orders routed to CBOE.\6\ Participants are not precluded, however, from
receiving payment for order flow if they choose to do so.
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    \5\ See Securities Exchange Act Release No. 62432 (July 1,
2010), 75 FR 39602 (July 9, 2010) (SR-CBOE-2010-66).
    \6\ This requirement would not prevent the participating member
from charging fees (for example, a monthly fee) for the general use
of its order routing system. Nor would it prevent the participating
member from charging fees or commissions in accordance with its
general practices with respect to transactions effected through its
system.
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    Under the program, a Participant may also elect to have CBOE
perform certain additional marketing services on its behalf. These
services consist of including the Participant's functionality in the
general marketing activities of CBOE's marketing staff. CBOE permits a
Participant electing to have CBOE perform these services to place
CBOE's ``HyTS'' trademark on its order routing functionality in a
manner satisfactory to CBOE. If a Participant elects to have CBOE
perform these services, the amount that CBOE pays the Participant for
orders routed to CBOE through the Participant's system is reduced from
$0.04 per executed contract to $0.03 per executed contract.\7\ The
minimum term of these services is one year, after which a Participant
can terminate the marketing services effective at the end of a calendar
month.
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    \7\ See Securities Exchange Act Release No. 62432 (July 1,
2010), 75 FR 39602 (July 9, 2010 (SR-CBOE-2010-66).
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    A Participant can also elect to have CBOE perform the service of
billing other CBOE TPHs with respect to the use of the Participant's
router. A Participant that elects to have CBOE perform this service
pays CBOE a service fee of one percent of the fees collected by CBOE
for that TPH. A Participant can terminate this service at the end of
any calendar month.
    Nothing about the subsidy arrangement relieves any CBOE TPH or non-
CBOE TPH broker-dealer that is using an order routing functionality
whose provider is participating in the Program from complying with its
best execution obligations. Specifically, just as with any customer
order and any other routing functionality, both a CBOE TPH and a non-
CBOE TPH have an obligation to consider the availability of price
improvement at various markets and whether routing a customer order
through a functionality that incorporates the features described above
would allow for access to such opportunities if readily available.
Moreover, any user, whether or not a CBOE TPH, needs to conduct best
execution evaluations on a regular basis, at a minimum quarterly, that
include its use of any router incorporating the features described
above.
    The Exchange, at the time the Program was established, did not
include the ORS Program in the Fees Schedule. The Exchange now proposes
to codify the ORS Program in the Fees Schedule. No substantive changes
to the ORS Program are being made by this proposal.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the
Act, in general. Specifically, the Exchange believes the proposed rule
change is consistent with the Section 6(b)(5) requirements that the
rules of an exchange be designed to promote just and equitable
principles of trade, to prevent fraudulent and manipulative acts, to
remove impediments to and to perfect the mechanism for a free and open
market and a national market system, and, in general, to protect
investors and the public interest. Codifying in the Fees Schedule the
ORS Program, in which CBOE may enter into subsidy arrangements with
CBOE TPHs and Non-CBOE TPHs that provide certain order routing
functionalities to other CBOE TPHs or Non- CBOE TPH broker dealers and/
or use such functionalities themselves provides additional transparency
and allows market participants to easily discern the subsidies and/or
fees that result from such arrangements. This will eliminate any
potential confusion, thereby removing a potential impediment to and
perfecting the mechanism for a free and open market and a national
market system, and, in general, protecting investors and the public
interest.

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

    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) \8\ of the Act and paragraph (f) of Rule 19b-4 \9\
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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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 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<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2012-107 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-2012-107. 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 20549-1090, 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 available publicly. All submissions
should refer to File Number SR-CBOE-2012-107, and should be submitted
on or before December 12, 2012.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-28261 Filed 11-20-12; 8:45 am]
BILLING CODE 8011-01-P


Respondent Burden RESPONDENT WAGE RATES AGENCY WAGE RATES MANAGERIAL 94.21 $ MANAGERIAL $ 56.99 TECHNICAL 73.85 $ TECHNICAL $ 48.22 CLERICAL 33.02 $ CLERICAL $ 22.86 LEGAL 107.10 $ LEGAL $ 67.04 EXHIBIT 1 PFC REDUCTION / CLIMATE PARTNERSHIP ESTIMATED ANNUAL RESPONDENT BURDEN AND COST Hours and Costs per Respondent Total Hours and Costs INFORMATION COLLECTION ACTIVITY Legal $ 107.10/ hr. Manager $ 94.21/ hr. Technical $ 7385/ hr. Clerical $ 33.02/ hr. Respon.

Hours/

Year Labor Cost/

$/ Year Capital/

Startup Cost O& M Cost Number of Respon. or Activities Total Hours/

Year Total Labor Cost/

Year Total Cost/ Year Company specific Annual Report Complete and submit Company specific annual reports 0.50 34.00 240.00 16.00 290.50 $ 21,509.01 $ 0 $ 2,164 24 6,972 $ 568,152 Subtotal 0.5 34 240 16 290.5 $ 21,509.01 0 $ 2,164 24 6972 $ 568,152 $ 620,088 Industry wide Annual Report Maintain/ Update data depository 1.00 0.00 5.00 0.00 6.00 $ 476.35 $ 0 $ 0 1 6 $ 476 Receive Company specific annual reports and enter into data depository 15.00 0.00 15.00 0.00 30.00 $ 2,714.25 $ 0 $ 0 1 30 $ 2,714 Complete and submit Industry wide annual reports 2.00 0.00 2.00 0.00 4.00 $ 361.90 $ 0 $ 0 1 4 $ 362 File and maintain copies of annual reports 0.00 0.00 10.00 0.00 10.00 $ 738.50 $ 0 $ 0 1 10 $ 739 Make emissions estimates and written explanations of the methodology prepared by Companies available to EPA for review 2.00 0.00 2.00 0.00 4.00 $ 361.90 $ 0 $ 0 1 4 $ 362 Subtotal 20 0 34 0 54 $ 4,652.90 0 $ 0 5 54 $ 4,653 $ 4,653 Information Sharing Share information about successful PFC reduction processes and technologies 6.00 44.00 197.00 4.00 251.00 $ 19,468.37 $ 0 $ 3,375 24 6,024 $ 548,241 Subtotal 6.00 44.00 197.00 4.00 251.00 $ 19,468.37 0.00 $ 3,375 24 6,024 $ 548,241 $ 629,241 TOTAL $ 5,539 53 13,050 $ 1,121,046 $ 1,253,982 Total Capital and O& M Costs = $ 5,539 X 24 = $ 132,936 Page 1 Agency Burden EXHIBIT 2 PFC REDUCTION / CLIMATE PARTNERSHIP ESTIMATED ANNUAL AGENCY BURDEN AND COST Hours and Costs per Respondent Total Hours and Costs INFORMATION COLLECTION ACTIVITY Legal $ 67.04/ hr. Manager $ 56.99/ hr. Technical $ 48.22/ hr. Clerical $ 22.86/ hr. Respon.

Hours/

Year Labor Cost/

$/ Year Capital/

Startup Cost O& M Cost Number of Respon. or Activities Total Hours/

Year Total Cost/

Year Subtotal Company specific Annual Report Review Company specific annual reports on premises of designated law firm 0.00 2.00 1.00 0.00 3.00 162.21 $ $ 0.00 $ 0.00 24.00 72.00 $ 3,892.99 Subtotal 0 2 1 0 3 162.208 0 0 24.00 72.00 $ 3,892.99 Industry wide Annual Report Receive and review industry wide annual report 0.00 40.00 8.00 0.00 48.00 2,665.47 $ $ 0.00 $ 0.00 1.00 48.00 $ 2,665.47 File and maintain copies of annual report 0.00 0.00 0.00 1.00 1.00 22.86 $ $ 2.00 $ 0.00 1.00 1.00 $ 24.86 Subtotal 0.00 40.00 8.00 1.00 49.00 2,688.34 $ 2.00 $

$ 2.00 49.00 $ 2,690.34 Information Sharing Establish and maintain clearinghouse of technical information 0.00 20.00 20.00 8.00 48.00 2,287.23 $ $ 0.00 $ 0.00 1.00 48.00 $ 2,287.23 Provide public recognition of Companies'

achievements 0.00 40.00 10.00 8.00 58.00 2,944.83 $ $ 0.00 $ 0.00 1.00 58.00 $ 2,944.83 Subtotal 0 60 30 16 106 5232.064 0 0 2.00 106.00 $ 5,232.06 TOTAL 0 102 39 17 158 8082.608 2 0 28 227.00 $ 11,815.39 NOTE: Certain values which refer to a quantity of persons working on a task are expressed in decimals.

This is a result of converting data covering the period of the ICR ( 3 years) into an annual estimate.


[Federal Register Volume 86, Number 10 (Friday, January 15, 2021)]
[Notices]
[Page 4046]
[FR Doc No: 2021-00859]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 1971-079]

Idaho Power Company; Notice of Meeting

    Commission staff will meet with representatives of the Burns Paiute
Tribe regarding the proposed Hells Canyon Hydroelectric Project. The
meeting will be held via teleconference on January 28, 2020 at 2 p.m.
Eastern Standard Time (EST).
    Members of the public, intervenors, and agencies in the referenced
proceeding and Idaho Power Company may attend this meeting; however,
participation will be limited to only tribal representatives and
Commission staff. If the Burns Paiute Tribe decides to disclose
information about a specific location which could create a risk or harm
to an archeological site or Native American cultural resource, the
public will be excused for that portion of the meeting.\1\ If you plan
to attend this meeting, please contact Michael Davis at<PHONE_NUMBER>
or at<EMAIL_ADDRESS>by January 25, 2020, to receive contact
information.
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    \1\ Protection from public disclosure involving this kind of
specific information is based upon 18 CFR 4.32(b)(3)(ii) (2020) of
the Commission's regulations implementing the Federal Power Act.

    Dated: January 11, 2021.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2021-00859 Filed 1-14-21; 8:45 am]
BILLING CODE 6717-01-P