[Federal Register Volume 60, Number 159 (Thursday, August 17, 1995)]
[Notices]
[Pages 42928-42929]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20402]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36086; File No. SR-CBOE-95-35]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Board Options 
Exchange, Inc. Relating to the Identification of Accounts and the 
Reporting of Orders for Chapter XXX Securities

August 10, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934, 15 U.S.C. 78s(b)(1), notice is hereby given that on July 12, 
1995, the Chicago Board Options Exchange, Incorporated (``CBOE'' or 
``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.

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

    The CBOE proposes to amend Rule 8.9 (``Securities Accounts and 
Orders of Market-Makers''), to require market-makers to identify 
accounts and report orders in securities traded pursuant to Chapter XXX 
of the Exchange's Rules. Currently, Rule 8.9 does not explicitly 
include securities traded on the Exchange pursuant to Chapter XXX.
    The text of the proposed rule change 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 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 Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of this rule proposal is to amend Rule 8.9, which 
governs the identification of certain accounts and the reporting of 
certain types of orders by market-makers, by explicitly incorporating 
securities traded pursuant to Chapter XXX of the Exchange's rules. 
Chapter XXX of the Exchange's rules governs the trading of warrants, 
stock, and other non-option securities. Pursuant to the Introductory 
paragraph to Chapter XXX and Appendix A of Chapter XXX (which specifies 
the Exchange rules outside of Chapter XXX which apply to the trading of 
stock, warrants, and other Chapter XXX securities), Rule 8.9 already 
applies to these securities. The Exchange believes, however, that it is 
appropriate to make the application of Rule 8.9 explicit on the face of 
the Rule.
    The proposed amendment to paragraph (a) of Rule 8.9 expressly 
requires market-makers to identify accounts for securities traded 
pursuant to Chapter XXX of the Exchange's Rules in which they exercise 
trading activities or exercise investment discretion. The proposed 
amendment to paragraph (b) of Rule 8.9 expressly requires market-makers 
to report orders in Chapter XXX securities and to report closing and 
opening positions in Chapter XXX securities.
    The Exchange believes it is appropriate to make this change in Rule 
8.9 to avoid confusion between the plain language of the Rule which 
does not mention Chapter XXX securities, and the incorporation of the 
Rule to Chapter XXX securities, which incorporation is made in the 
Introductory paragraph to Chapter XXX and Appendix A to Chapter XXX. 
The information required by Rule 8.9 is an important asset to the 
Exchange's Department of Market Surveillance because it is used to 
detect manipulation and other trading abuses.
    The CBOE believes that the proposed rule change is consistent with 
Section 6 of the Act, in general, and Section 6(b)(5), in particular, 
in that making explicit the requirement to provide detailed information 
concerning Chapter XXX securities is designed to prevent fraudulent and 
manipulative 

[[Page 42929]]
acts and practices, to promote just and equitable principles of trade, 
and to protect 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 
inappropriate 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

    The rule change described herein is designated by the Exchange as 
constituting a stated policy, practice or interpretation with respect 
to the meaning, administration or enforcement of an existing rule of 
the Exchange and therefore, has become effective immediately pursuant 
to Section 19(b)(3)(A) of the Act and Rule 19b-4(e) thereunder. At any 
time within 60 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, N.W., Washington, D.C. 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, D.C. 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 No. SR-CBOE-95-35 and should be 
submitted by September 7, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\1\

    \1\ 17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-20402 Filed 8-16-95; 8:45 am]
BILLING CODE 8010-01-M