[Federal Register Volume 59, Number 107 (Monday, June 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-13603]


[[Page Unknown]]

[Federal Register: June 6, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34124; File No. SR-CBOE-93-36]

 

Self-Regulatory Organizations; Order Approving and Notice of 
Filing and Order Granting Accelerated Approval of Amendment No. 1 to a 
Proposed Rule Change by the Chicago Board Options Exchange, Inc., 
Relating to the Listing of Regular and Long-Term Index Options on the 
S&P/Barra Growth Index and the S&P/Barra Value Index

May 27, 1994.

I. Introduction

    On September 9, 1993, the Chicago Board Options Exchange, Inc. 
(``CBOE'' or ``Exchange'') submitted to the Securities and Exchange 
Commission (``SEC'' or ``Commission''), pursuant to section 19(b)(1) of 
the Securities Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to provide for the listing and 
trading of regular and long-term index options on the S&P/Barra Growth 
Index (``Growth Index'') and the S&P/Barra Value Index (``Value 
Index'') (each individually an ``Index,'' and collectively the 
``Indexes''). The proposed rule change was published for comment in the 
Federal Register on November 19, 1993.\3\ No comment letters were 
received on the proposed rule change. On May 25, 1994, the CBOE filed 
Amendment No. 1 to the proposed rule change.\4\ This order approves the 
Exchange's proposal, as amended.
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    \1\15 U.S.C. 78s(b)(1) (1988).
    \2\17 CFR 240.19b-4 (1993).
    \3\See Securities Exchange Act Release No. 33192 (November 12, 
1993), 58 FR 61117 (November 19, 1993).
    \4\In Amendment No. 1, the CBOE proposes to: (1) Establish 
position limits for options on the Growth and Value Indexes of 
125,000 contracts on the same side of the market, with no more than 
75,000 contracts in the series with the nearest expiration month; 
(2) establish 225,000 contracts on the same side of the market as 
the maximum position size that will be eligible for treatment under 
the Exchange's hedge exemption rule provisions; and (3) aggregate 
positions in Growth Index options and Value Index options for 
purposes of position and exercise limits, including applicable hedge 
exemptions. Additionally, Amendment No. 1 amends proposed 
Interpretation .01(a)(v) and (vi) to Rule 24.9 to provide that the 
strike intervals between Growth Index and Value Index options will 
be no less than $2.50 only if the strike prices are less than $200. 
See Letter from Eileen Smith, Director, Product Development, 
Research Department, CBOE, to Brad Ritter, Attorney, Office of 
Derivatives and Equity Oversight, Division of Market Regulation, 
Commission, dated May 25, 1994 (``Amendment No. 1'').
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II. Description of Proposal

A. General

    The CBOE proposes to trade options on the Growth and Value Indexes, 
stock indexes calculated by Standard & Poor's (``S&P'') (or its 
designee) and maintained by Barra, Inc. (``Barra'') pursuant to a 
license agreement between Barra and S&P. The CBOE also proposes to list 
long-term options (``Index LEAPS'') on either the full-value of each 
Index or reduced-value Growth and Value Indexes that will be computed 
at one-tenth of the value of the respective Indexes. Index LEAPS on the 
Growth and Value Indexes will trade independent of and in additional to 
regular options on the Indexes traded on the Exchange, however, as 
discussed below, position and exercise limits of Index LEAPS and 
regular options on the Indexes will be aggregated.

B. Composition and Maintenance of the Index

    The Indexes are constructed by sorting the stocks in the S&P 500 
Index on the basis of their book-to-price ratios as determined by Barra 
twice per year, based on end-of-day information on November 30 and May 
31. Starting with the company with the highest book-to-price ratio, 
companies are added to the Value Index until that Index contains 50% of 
the market capitalization of the S&P 500 Index. The Growth Index is 
composed of the remaining companies in the S&P 500 Index. The partition 
of the S&P 500 Index using November 30 information becomes effective as 
of January 1 of the following year; the partition of the S&P 500 Index 
using May 31 information becomes effective July 1 of the same year.
    Based on the last partition of the S&P 500 Index, effective January 
1, 1994, the Value Index is currently composed of 310 securities. As of 
the close of trading on May 3, 1994, the Value Index was valued at 
71.65. The market capitalizations of the individual stocks in the Value 
Index ranged from a high of $76.05 billion to a low of $97.23 million, 
with the mean and median being $5.27 billion and $2.96 billion, 
respectively. The market capitalization of all the stocks in the Value 
Index was $1.63 trillion. The total number of shares outstanding for 
the stocks in the Value Index ranged from a high of 1.24 billion shares 
to a low of 8.94 million shares. The price per share of the stocks in 
the Value Index on that date ranged from a high of $146.13 to a low of 
$4.00. Lastly, no one stock comprised more than 4.65% of the Value 
Index's total value and the percentage weighting of the five largest 
issues in the Value Index accounted for 15.19% of the Index's value. 
The percentage weighting of the lowest weighted stock was 0.01% of the 
Index and the percentage weighting of the five smallest issues in the 
Index accounted for 0.05% of the Value Index's value.
    Based on the last partition of the S&P 500 Index, effective January 
1, 1994, the Growth Index is currently composed of the 190 S&P 500 
Index securities not included in the Value Index. As of the close of 
trading on May 3, 1994, the Growth Index was valued at 60.47. The 
market capitalizations of the individual stocks in the Growth Index 
ranged from a high of $82.09 billion to a low of $506.63 million, with 
the mean and median being $8.43 billion and $4.28 billion, 
respectively. The market capitalization of all the stocks in the Growth 
Index was $1.60 trillion. The total number of shares outstanding for 
the stocks in the Growth Index ranged from a high of 2.30 billion 
shares to a low of 14.46 million shares. The price per share of the 
stocks in the Growth Index on that date ranged from a high of $736.00 
to a low of $4.50. Lastly, no one stock comprised more than 5.12% of 
the Growth Index's total value and the percentage weighting of the five 
largest issues in the Growth Index accounted for 19.47% of the Index's 
value. The percentage weighting of the lowest weighted stock was 0.03 % 
of the Growth Index and the percentage weighting of the five smallest 
issues in the Index accounted for 0.19% of the Index's value.

C. Calculation of the Index

    Like the S&P 500 Index, the Indexes will be capitalization-
weighted, and the methodology used to calculate their value is 
identical to the methodology used to calculate the value of the S&P 500 
Index. The level of each Index is calculated as follows:

TN06JN94.001

The numeric value of each Index was established at 10 as of the close 
of the market on December 31, 1974.
    The Indexes are calculated continuously by S&P or its designee, and 
their values will be disseminated by the Options Price Reporting 
Authority (``OPRA'') no less often than every fifteen seconds. S&P will 
also calculate the exercise settlement value for each expiring series 
of Value Index options and Growth Index options, and will make these 
values available to CBOE for use by the Options Clearing Corporation 
(``OCC'') in effecting settlement of exercises and assignments of the 
options.
    The values of the Indexes, for purposes of settling outstanding 
options on the Growth and Value Indexes upon expiration, will be 
calculated based upon the regular way opening sale prices for each of 
the Indexes' component stocks on the last trading day prior to 
expiration.\5\ Once all of the component stocks have opened, the value 
of each Index will be determined and that value will be used as the 
final settlement value for expiring options contracts on that Index. If 
any of the component stocks do not open for trading on the last trading 
day before expiration, then the last reported sale price of such 
security will be used in any case where that security does not trade on 
that day.\6\
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    \5\See CBOE Rule 24.9(a)(4).
    \6\Id.
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D. Contract Specifications

    The proposed options on the Indexes will be cash-settled, European-
style options.\7\ Standard options trading hours (9:30 a.m. to 4:15 
p.m. New York time) will apply to the contracts. The multiplier for 
each Index will be 100. The strike price interval will be $2.50 for 
Index options with strike prices of less than $200.\8\ The Exchange 
intends to list up to three near-term calendar months and three 
additional calendar months at three month intervals.\9\ As described in 
more detail below, the Exchange also intends to list Index LEAPS on 
each Index that will expire 12 to 36 months from the date of their 
issuance.
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    \7\A European-style option can be exercised only during a 
specified period before the option expires.
    \8\See Amendment No. 1, supra note 4.
    \9\See CBOE Rule 24.9(a)(2).
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    Options on each Index (including full-value and reduced-value Index 
LEAPS) will expire on the Saturday following the third Friday of the 
expiration month (``Expiration Friday''). Because options on the 
Indexes will settle based upon the opening prices of the component 
stocks on the last trading day before expiration (normally a Friday), 
the last trading day for an expiring Index option series will normally 
be the second to the last business day before expiration (normally a 
Thursday).\10\
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    \10\See supra notes 5 and 6.
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E. Listing of Long-Term Options on the Full-Value or Reduced-Value 
Growth and Value Indexes

    The Exchange may list Index LEAPS on the Growth and Value Indexes 
that expire 12 to 36 months from date of issuance on either the full-
value of the Growth and Value Indexes or reduced-values of the Indexes 
that will be computed at one-tenth the value of the full-value 
Indexes.\11\ The current and closing values for reduced-value Index 
LEAPS on the Indexes will be computed by dividing the value of the 
full-value Index by 10 and rounding the resulting figure to the nearest 
one-hundredth. For example, a Growth Index value of 60.54 would be 6.05 
for the Growth Index LEAPS and 60.56 would become 6.06. The reduced-
value Index LEAPS on the Indexes will have a European-style exercise 
and will be subject to the same rules that govern the trading of all 
the Exchange's index options, including sales practice rules, margin 
requirements and floor trading procedures. The strike price interval 
for the reduced-value Index LEAPS will be no less than $2.50.\12\
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    \11\See CBOE Rule 24.9(b).
    \12\Id.
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    The same Exchange rules which are applicable to the trading of 
full-value Index LEAPS on the Indexes will be applicable to the trading 
of reduced-value Index LEAPS on the Indexes. For example, both full-
value and reduced-value Index LEAPS may expire from 12 to 36 months 
from the date of issuance, and there may be up to six expiration months 
beyond one year to expiration. Moreover, full-value or reduced-value 
Index LEAPS on either Index may be issued at six month intervals and 
new strike prices will either be near or bracketing the current value 
of each Index. Strike price interval, bid/ask differential, and 
continuity rules will not apply to the trading of the full-value or 
reduced-value Index LEAPS on the Indexes until their time to expiration 
is less than 12 months.\13\ Lastly, Index LEAPS series on each Index 
may be added when the value of the underlying Index increases or 
decreases by ten to fifteen percent.\14\
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    \13\Id.
    \14\Id.
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F. Position and Exercise Limits, Margin Requirements, and Trading Halts

    Position limits for the options (including Index LEAPS) on the 
Growth and Value Indexes will be set at no more than 125,000 contracts 
on the same side of the market, provided that no more than 75,000 of 
such contracts are in series in the nearest expiration month, and 
further provided that options positions in the Indexes will be 
aggregated.\15\ Exercise limits will be set at the same level as 
position limits.\16\ For purposes of calculating applicable position 
and exercise limits, positions in reduced-value options on the Growth 
and Value Indexes will be aggregated with each other and with positions 
in the full-value Index options. For these purposes, ten reduced-value 
contracts will equal one full-value contract for purposes of 
aggregating these positions. Also, CBOE hedge exemption provisions will 
apply to options and Index LEAPS on both Indexes.\17\
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    \15\See Amendment No. 1, supra note 4.
    \16\See CBOE Rule 24.5.
    \17\See CBOE Rule 24.4(a); Interpretation .01 to Rule 24.4; and 
Amendment No. 1, supra note 4.
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    Exchange rules applicable to options on the Growth and Value 
Indexes will be identical to the rules applicable to other broad-based 
index options for purposes of trading rotations, halts, and 
suspensions,\18\ and margin treatment.\19\
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    \18\See CBOE Rule 24.7.
    \19\See CBOE Rule 24.11.
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G. Surveillance

    The Exchange will use the same surveillance procedures currently 
utilized for each of the Exchange's other index options to monitor 
trading in Index options and Index LEAPS on the Growth and Value 
Indexes. These procedures include complete access to trading activity 
in the underlying securities.

H. Disclaimer

    The CBOE has agreed with S&P to revise the disclaimer of liability 
on behalf of S&P that is currently in the Exchange's rules so that it 
covers Barra as well as S&P, and the growth Index and Value Index. The 
disclaimer would provide that S&P, Barra, and all of their affiliates 
do not make any warranties as to the results obtained from the Growth 
and Value Indexes, any opening, intra-day or closing value therefore, 
any related data, or any errors or delays in calculating or 
disseminating the value of either Index, in connection with the trading 
of option contracts based on the Indexes.\20\
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    \20\See CBOE Rule 24.14.
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III. Commission Findings and Conclusions

    The Commission has reviewed the proposal to list and trade options 
and full-value and reduced-value Index LEAPS on the Growth and Value 
Indexes. As discussed below, the Commission believes that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange. In particular, the Indexes are broad-based, the proposed 
options are designed to reduce the potential for manipulation, and the 
proposal to list and trade options and Index LEAPS on the Growth and 
Value Indexes is consistent with the CBOE's obligation to promote 
investor protection.\21\
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    \21\The CBOE is a member of the Intermarket Surveillance Group 
(``ISG''), which was formed on July 14, 1983 to, among other things, 
coordinate more effectively surveillance and investigative 
information sharing arrangements in the stock and options markets. 
See Intermarket Surveillance Group Agreement, July 14, 1983. The 
most recent amendment to the ISG Agreement, which incorporates the 
original agreement and all amendments made thereafter, was signed by 
ISG members on January 29, 1990. See Second Amendment to the 
Intermarket Surveillance Group Agreement, January 29, 1990. The 
members of the ISG are: the Amex; the Boston Stock Exchange, Inc.; 
the CBOE; the Chicago Stock Exchange, Inc.; the National Association 
of Securities Dealers, Inc.; the New York Stock Exchange, Inc.; the 
Pacific Stock Exchange, Inc.; and the Philadelphia Stock Exchange, 
Inc. Because of potential opportunities for trading abuses involving 
stock index futures, stock options, and the underlying stock and the 
need for greater sharing of surveillance information for these 
potential intermarket trading abuses, the major stock index futures 
exchanges (e.g., the Chicago Mercantile Exchange and the Chicago 
Board of Trade) joined the ISG as affiliate members in 1990. The 
Commission understands that the ISG Agreement, as amended, covers 
investigations and inquiries regarding trading activity in options 
on the Indexes and component securities of the Indexes.
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    The Commission finds that the trading of options on the Indexes, 
including full-value and reduced-value Index LEAPS, will permit 
investors to participate in the price movements of the securities on 
which the respective Indexes are based. Further, trading of options on 
each Index will allow investors holding positions in some or all of the 
securities underlying that Index to hedge the risks associated with 
their portfolios. Accordingly, the Commission, believes options on the 
Growth and Value Indexes will provide investors with an important 
trading and hedging mechanism that should reflect accurately the 
overall movement of the securities contained in this partition of the 
S&P 500 Index. By broadening the hedging and investment opportunities 
of investors, the Commission believes that the trading of options on 
the Growth and Value Indexes will serve to protect investors, promote 
the public interest, and contribute to the maintenance of fair and 
orderly markets.\22\
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    \22\Pursuant to section 6(b)(5) of the Act, the Commission must 
predicate approval of any new option or warrant proposal upon a 
finding that the introduction of such new derivative instrument is 
in the public interest. Such a finding would be difficult for a 
derivative instrument that served no hedging or other economic 
function, because any benefits that might be derived by market 
participants likely would be outweighed by the potential for 
manipulation, diminished public confidence in the integrity of the 
markets, and other valid regulatory concerns. In this regard, the 
trading of listed options on the Growth and Value Indexes will 
provide investors with a hedging vehicle that should reflect the 
overall movement of securities contained in the Indexes.
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    The trading of options on the Growth and Value Indexes, including 
the trading of full-value and reduced-value Index LEAPS, however, 
raises several concerns, namely issues related to index design, 
customer protection, surveillance, and market impact. The Commission 
believes, for the reasons discussed below, that the DBOE has addressed 
these concerns adequately.

A. Index Design and Structure

    The Commission finds that the Indexes are broad-based indexes,\23\ 
and thus it is appropriate to permit Exchange rules applicable to the 
trading of broad-based index options to apply to options on the 
Indexes, including Index LEAPS. Specifically, the Commission believes 
the Indexes are broad-based because they (1) are a partition of the S&P 
500 Index, which is a broad-based index on which options have been 
approved for trading since 1983,\24\ and (2) reflect a substantial 
segment of the U.S. equities market.
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    \23\The reduced-value Growth and Value Indexes, which are 
composed of the same components as the Growth and Value Indexes, 
respectively, and calculated by dividing the full-value Index values 
by 10, are identical to the full-value Growth and Value Indexes.
    \24\See Securities Exchange Act Release No. 19907 (June 24, 
1983), 48 FR 30814 (July 5, 1983).
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    The Commission also finds that the large capitalizations, liquid 
markets, and relative weightings of the component stocks of each Index 
significantly minimize the potential for manipulation of either Index. 
First, the Indexes collectively represent and consist of the common 
stock values of 500 actively traded U.S. companies. Second, no one 
particular stock or group of stocks dominates either Index. 
Specifically, as of May 3, 1994, no one stock comprised more than 4.65% 
of the Value Index's total value or 5.12% of the Growth Index's total 
value, and the percentage weighting of the five largest issues in the 
Indexes accounted for 15.19% of the Value Index's value and 19.47% of 
the Growth Index's value. Third, the market capitalizations of the 
stocks in the Indexes are very large. Specifically, the market 
capitalizations (1) for the Value Index ranged from a high of $76.05 
billion to a low of $97.23 million as of May 3, 1994, with the mean and 
median being $5.27 billion and $2.96 billion, respectively, and (2) for 
the Growth Index ranged from a high of $82.09 billion to a low of 
$506.63 million as of that date, with the mean and median being $8.43 
billion and $4.28 billion, respectively. Fifth, each Index is comprised 
of stocks representing a diverse group of industries, including, among 
others, pharmaceuticals, communications, entertainment, various 
consumer and computer products and services. Sixth, an overwhelming 
proportion of the component stocks in each Index currently are eligible 
for options trading.\25\ Finally, the Commission believes that, as 
discussed below, existing mechanisms to monitor trading activity in 
those securities will help deter as well as detect illegal trading 
activity involving options on the Indexes.
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    \25\The CBOE's options listing standards, which are uniform 
among the options exchanges, provide that a security underlying an 
option must, among other things, meet the following requirements: 
(1) The public float must be at least 7,000,000; (2) there must be a 
minimum of 2,000 stockholders; (3) trading volume must have been at 
least 2.4 million over the preceding twelve months; and (4) the 
market price must have been at least $7.50 for a majority of the 
business days during the preceding three calendar months. See CBOE 
Rule 5.3, Interpretation .01.
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B. Customer Protection

    The Commission believes that a regulatory system designed to 
protect public customers must be in place before the trading of 
sophisticated financial instruments, such as options on the Growth and 
Value Indexes (including full-value and reduced-value Index LEAPS), can 
commence on a national securities exchange. The Commission notes that 
the trading of standardized exchange-traded options occurs in an 
environment that is designed to ensure, among other things; that: (1) 
The special risks of options are disclosed to public customers; (2) 
only investors capable of evaluating and bearing the risks of options 
trading are engaged in such trading; and (3) special compliance 
procedures are applicable to options accounts. Accordingly, because the 
options and Index LEAPS on the Growth and Value Indexes will be subject 
to the same regulatory regime as the other standardized options 
currently traded on the CBOE, the Commission believes that adequate 
safeguards are in place to ensure the protection of investors in 
options and Index LEAPS on the Indexes.

C. Surveillance

    The Commission generally believes that a surveillance sharing 
agreement between an exchange proposing to list a stock index 
derivative product and the exchanges trading the stocks underlying the 
derivative product is an important measure for the surveillance of the 
derivatives and underlying securities markets. Such agreements ensure 
the availability of information necessary to detect and deter potential 
manipulations and other trading abuses, thereby making the stock index 
product less readily susceptible to manipulation.\26\ In this regard, 
the New York Stock Exchange, the American Stock Exchange, and the 
National Association of Securities Dealers, Inc. Automated Quotation 
system (``NASDAQ''), which currently are the primary markets for all of 
the component securities in the Indexes, are members of the ISG, which 
provides for the exchange of all necessary surveillance 
information.\27\
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    \26\See Securities Exchange Act Release No. 31243 (September 28, 
1992), 57 FR 45849 (October 5, 1992).
    \27\See supra note 21.
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D. Market Impact

    The Commission believes that the listing and trading on the CBOE of 
options on the Growth and Value Indexes, including full-value and 
reduced-value Index LEAPS, will not adversely impact the underlying 
securities markets.\28\ First, as described above, the Indexes are 
broad-based and each is presently comprised of at least 190 stocks with 
no one stock dominating either Index. Second, as noted above, the 
stocks contained in the Indexes have large capitalizations and are 
actively traded. Third, the proposed position and exercise limits, 
coupled with the requirement that positions in both Indexes be 
aggregated, will serve to minimize potential manipulation and market 
impact concerns. Fourth, the risk to investors of contra-party non-
performance will be minimized because the Index options will be issued 
and guaranteed by the OCC just like any other standardized option 
traded in the United States. Fifth, existing CBOE stock index options 
rules and surveillance procedures will apply to options on the Growth 
and Value Indexes.
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    \28\In addition, the CBOE has represented that the CBOE and the 
Options Price Reporting Authority (``OPRA'') have the necessary 
systems capacity to support those new series of index options that 
would result from the introduction of options and LEAPS on the 
Growth and Value Indexes. See letter from Charles J. Henry, 
President and Chief Operating Officer, CBOE, to Sharon Lawson, 
Assistant Director, Division of Market Regulation, SEC, dated 
January 4, 1993 and memorandum from Joe Corrigan, Executive 
Director, OPRA, to Eileen Smith, CBOE, dated January 4, 1993.
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    Lastly, the Commission believes that settling expiring options on 
the Growth and Value Indexes (including full-value and reduced-value 
Index LEAPS) based on the opening prices of component securities is 
reasonable and consistent with the Act. As noted in other contexts, 
valuing expiring index options for exercise settlement purposes based 
on opening prices rather than closing prices may help reduce adverse 
effects on the securities underlying options on the Indexes.\29\
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    \29\See Securities Exchange Act Release No. 30944 (July 21, 
1992), 57 FR 33376 (July 28, 1992).
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    The Commission finds good cause for approving Amendment No. 1 prior 
to the thirtieth day after the date of publication of notice of filing 
thereof in the Federal Register. Specifically, Amendment No. 1 
maintains the proposed options position limits on the Indexes but 
requires that positions in options on the Indexes (including Index 
LEAPS) be aggregated for purposes of position and exercise limits. As 
stated above, the Commission believes that these position and exercise 
limits have the effect of minimizing the potential for market 
manipulation and other adverse impacts on the market for the securities 
underlying the Indexes as a result of the trading of options on the 
Indexes. Amendment No. 1 also clarifies that strike intervals of $2.50 
will only be used for strike prices of less than $200 for full-value 
options and Index LEAPS on the Indexes. This amendment merely conforms 
the proposal to existing CBOE rules.\30\ As a result, the Commission 
believes that good cause exists for approving Amendment No. 1 on an 
accelerated basis.
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    \30\See CBOE Rule 24.9, Interpretation and Policy .01(a).
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    Interested persons are invited to submit written data, views and 
arguments concerning Amendment No. 1. Persons making written 
submissions, should file six copies thereof with the Secretary, 
Securities and Exchange Commission, 450 Fifth Street NW., Washington, 
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 SR-CBOE-93-36 and should be submitted by June 27, 1994.
    It Is Therefore Ordered, pursuant to section 19(b)(2) of the 
Act,\31\, that the proposed rule change (SR-CBOE-93-36) is approved, as 
amended.

    \31\15 U.S.C. 78s(b)(2) (1988).
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    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\32\
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    \32\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-13603 Filed 6-3-94; 8:45 am]
BILLING CODE 8010-01-M