Daily Rules, Proposed Rules, and Notices of the Federal Government
The Exchange proposes to amend the Exchange's Fee Schedule to: (i) Increase the number of options to be included in the Exchange's current schedule of transaction fees and rebates for adding and removing liquidity; (ii) increase the Firm per contract transaction fee for adding liquidity; and (iii) other clarifying technical amendments to the Fee Schedule.
While changes to the Fee Schedule pursuant to this proposal are effective upon filing, the Exchange has designated these changes to be operative for transactions settling on or after March 1, 2010.
The text of the proposed rule change is available on the Exchange's Web site at
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.
The Exchange proposes to increase liquidity and to attract order flow by increasing the number of options to be included in the Exchange's current schedule of transaction fees and rebates for adding and removing liquidity.
Specifically, the Exchange proposes to add the following options: Apple, Inc. (AAPL); Allstate Corp., (ALL), Amazon.com, Inc. ("AMZN"), Bank of America Corporation ("BAC"); Dell, Inc. ("DELL"), Diamonds Trust Series 1 ("DIA"), DryShips, Inc. ("DRYS"), Eastman Kodak, Co. ("EK"), Market Vectors Gold Miners ETF ("GDX"), General Electric Company ("GE"), Goldman Sachs Group, Inc. ("GS"), Microsoft Corporation ("MSFT"), Qualcomm, Inc. ("QCOM"), Research In Motion Ltd. ("RIMM"), Starbucks Corp. ("SBUX"), UltraShort Financials ProShares ("SKF"), iShares Silver Trust ("SLV"), Semiconductor HOLDRs ("SMH"), United States Natural Gas ("UNG"), United States Oil Fund LP Units ("USO"), Ultra Financials ProShares ("UYG"), WynnResorts Ltd. ("WYNN"), and Financial Select Sector SPDR ("XLF"), collectively ("the options"). The options would be subject to the fees and rebates for adding and removing liquidity.
Additionally, the Exchange proposes to increase the fee for adding liquidity assessed to Firms from its current rate of $0.35 to $0.45. The Exchange is amending this rate to equate it to the rate assessed on Broker-Dealers for adding liquidity.
Currently, the Exchange assesses a per-contract transaction charge in Standard and Poor's Depositary Receipts/SPDRs ("SPY")
The market participants are as follows: (i) Specialists, Registered Options Traders ("ROTs"), Streaming Quote Traders ("SQTs")
The per-contract transaction charges are assessed on participants who submit proprietary quotes and/or orders that remove liquidity from the Exchange's market in options listed on the Fee Schedule. The Exchange also assesses a transaction charge to Firms and broker-dealers that add liquidity.
Additionally, the Exchange has in place a per-contract rebate relating to transaction charges for orders or quotations that add liquidity to the Exchange's market in options listed on the fee schedule. The amount of the rebate depends on the category of
The Exchange also proposes to amend the Fee Schedule to make technical amendments such as changing the name of the category of fees and other clarifying amendments to make reference to other fees, and to options affected by these fees.
The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6(b) of the Act
Accordingly, the Exchange also believes that the addition of the options to this portion of the Fee Schedule is equitable in that it will apply to all categories of participants in the same manner.
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.
No written comments were either solicited or received.
The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act
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:
* Use the Commission's Internet comment form (
* Send an e-mail to
* Send paper comments in triplicate to Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549-1090.