[Federal Register Volume 59, Number 49 (Monday, March 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5837]


[[Page Unknown]]

[Federal Register: March 14, 1994]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-33730; File No. SR-CBOE-94-01]

 

Self-Regulatory Organizations: Filing of Proposed Rule Change by 
the Chicago Board Options Exchange, Inc., Relating to Trade Recording 
and Price Reporting

March 8, 1994.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on January 
22, 1994, the Chicago Board Options Exchange, Inc. (``CBOE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``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.

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

    Currently, Interpretation and Policy .01 to CBOE rule 6.51, 
``Reporting Duties,'' requires both the buyer and the seller in a 
transaction to record on a card or ticket information concerning the 
transaction, including the buyer's or seller's assigned broker initial 
code and his clearing firm (if a market maker), the symbol of the 
underlying security, the type, expiration month and exercise price of 
the option contract, the transaction price, the number of contract 
units comprising the transaction, the time of the transaction, the name 
of the contra clearing firm member and the assigned broker initial code 
of the contra member. Under Interpretation and Policy .01, this 
information constitutes the ``transaction record.'' The CBOE proposes 
to amend Interpretation and Policy .01 to allow members to submit 
options transaction data to the Exchange for trade recording and price 
reporting purposes in various media in addition to paper form.
    The text of the proposal is available at the Office of the 
Secretary, CBOE, 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 these statements may be examined at 
the places specified in Item IV below. The self-regulatory organization 
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

    The CBOE states that the purpose of the proposal is to enable CBOE 
members to submit options transaction data to the CBOE for trade 
recording and price reporting purposes in various media in addition to 
paper form. Under current CBOE rule 6.51, members are required to 
submit transaction data in paper form only, either on a trade ticket or 
on a transaction card. The CBOE states that in today's market and 
operations technology environment the limitation is unduly restrictive, 
and some Exchange members have requested the opportunity to submit 
transaction record data by means of electronic data transmission. 
Submission in that form would enable those members to report trades and 
prices to the CBOE through the same automated medium they use to report 
that information to their clearing firms. Accordingly, the CBOE seeks 
authority to approve particular media in addition to paper that CBOE 
members may use for trade recording and price reporting purposes.
    In administering the proposed rule change, the CBOE will from time 
to time identity particular media and formats acceptable for use under 
Exchange Rule 6.51 based on members' needs and will inform members 
about acceptable media and formats through appropriate circulars. The 
CBOE expects to identify as acceptable only those media that involve 
secure and tested technology.
    The CBOE believes that the proposed rule change is consistent with 
section 6(b) of the Act, in general, and with section 6(b)(5), in 
particular, in that it is designed to facilitate cooperation and 
coordination with persons engaged in the clearance and settlement of 
securities transactions, consistent with the protection of investors 
and the public interest.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The CBOE does not believe that the proposed rule change will impose 
any burden on competition.

(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

    Within 35 days after the publication of this notice in the Federal 
Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reason for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (a) By order approve such proposed rule change, or
    (b) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street NW., Washignton, DC 20549. 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 at the 
Commission's Public Reference Section, 450 Fifth Street NW., 
Washington, DC.
    Copies of such filing will also be available for inspection and 
copying at the principal office of the above-mentioned self-regulatory 
organization. All submissions should refer to the file number in the 
caption above and should be submitted by April 4, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\1\
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    \1\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-5837 Filed 3-11-94; 8:45 am]
BILLING CODE 8010-01-M