[Federal Register Volume 59, Number 138 (Wednesday, July 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-17662]


[[Page Unknown]]

[Federal Register: July 20, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34374; File No. SR-CBOE-94-23]

Self-Regulatory Organizations; The Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Relating to a Fee Reduction Plan

July 14, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on July 7, 1994, the Chicago 
Board Options Exchange, Incorporated (the ``CBOE'' or the ``Exchange'') 
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 CBOE. 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) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The CBOE proposes to amend its fee reduction plan, which has been 
in effect since July 1, 1992.

 

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 CBOE 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 CBOE has prepared summaries, set forth in sections 
(A), (B), and (C) below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organizations's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of the proposed rule change is to amend the Exchange's 
fee reduction plan. The plan, which was initially adopted on July 1, 
1992 and subsequently amended in July 1993, provides that if Exchange 
volume levels exceed a pre-determined threshold at the end of any 
fiscal quarter, specified fees will be reduced the following quarter in 
accordance with the schedule. The proposed amendments are the product 
of the Exchange's annual budget review and are structured to 
accommodate the capital needs of the Exchange for the coming year. The 
amendments will take effect for the new fiscal year commencing July 1, 
1994.
    The proposed rule change amends the current fee reduction 
thresholds and amounts. The minimum threshold for a fee reduction is 
raised from 525,000 to 550,000 year to date contract volume. The 
reduction in the market-maker fees has been lowered $.05 to $.10 for 
five of the eight thresholds. The member dues fee reduction of 25% to 
100% is given at higher thresholds. The proposed rule change also 
replaces the trade match fee reduction schedule with a fee reduction 
schedule for floor brokerage fees.\2\ In all other respects, the fee 
reduction program remains unchanged.
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    \2\The floor broker fee is reduced $.05 for 600,000 to 625,000 
year to date contract volume, and is reduced $.10 for 650,000 to 
700,000 year to date contract volume.
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    The proposed rule change is consistent with Section 6(b) of the Act 
in general, and Section 6(b)(4) in particular, by providing for the 
equitable allocation among CBOE members of reasonable dues, fees, and 
charges.\3\
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    \3\15 U.S.C. 78f(b)(4) (1988).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE does not believes that the proposed rule change imposes 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

    Comments on the proposed rule change have not been solicited or 
received.

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)(ii) of the Act and subparagraph (e)(2) of Securities 
Exchange Act Rule 19b-4 in that the proposed rule change establishes or 
changes a due, fee, or other charge imposed by the Exchange. At any 
time within sixty days of the filing of such proposed rule change, the 
Commission may summarily abrogate 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. 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 in the 
Commission's Public Reference Section, 450 Fifth Street, N.W., 
Washington, DC 20549. Copies of such filing will also be available for 
inspection and copying at the principal office of CBOE. All submissions 
should refer to file number SR-CBOE-94-23 and should be submitted by 
August 10, 1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-17662 Filed 7-19-94; 8:45 am]
BILLING CODE 8010-01-M