[Federal Register Volume 60, Number 229 (Wednesday, November 29, 1995)]
[Notices]
[Pages 61274-61275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-29148]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-36499; File No. SR-CBOE-95-55]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Board Options 
Exchange, Inc. Relating to Minor Rule Changes Applicable to Stock 
Index, Currency, and Currency Index Warrants

November 21, 1995.
    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 October 
11, 1995, the Chicago Board Options Exchange, Inc. (``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 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

    The CBOE proposes to make minor technical changes to its uniform 
listing and trading guidelines for stock index, currency, and currency 
index warrants. 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

    On August 29, 1995, the Commission approved the Exchange's uniform 
listing and trading guidelines for stock index, currency, and currency 
index warrants.\1\ The Exchange now proposes to make minor technical 
changes to these rules.

    \1\See Securities Exchange Act Release No. 36169 (Aug. 29, 
1995), 60 FR 46644 (Sept. 7, 1995).
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    Under the proposal, the Exchange proposes to add a provision to 
CBOE Rule 30.53 that will permit customers to use a ``letter of 
guarantee'' to cover a short put position in an index warrant. In 
general, the letter of guarantee will permit a customer to cover a 
short index warrant position with cash or cash equivalents in an amount 
equal to the aggregate exercise price of the put warrant contract. The 
letter of guarantee must be issued by a bank in accordance with the 
proposed rule and in a form satisfactory to the Exchange. In addition, 
the proposal also makes other minor, non-substantive textual changes 
applicable to Rule 30.53.
    Finally, the Exchange proposes to add the term ``securities 
association'' to rule 30.35(b), Exercise Limits, to ensure that a CBOE 
member's customer transactions in warrants issued on Nasdaq will be 
brought within the CBOE's jurisdiction for exercise limit purposes when 
the NASD does not have member jurisdiction over the CBOE member.
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Act in general and furthers the objectives of 
Section 6(b)(5) in particular in that it is designed to prevent 
fraudulent and manipulative acts and practices and to promote just and 
equitable principles of trade, and is not designed to permit unfair 
discrimination between customers, issuers, brokers and dealers.

[[Page 61275]]


B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe 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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
(3) was provided to the Commission for its review at least five 
business days prior to the filing date; and (4) does not become 
operative for 30 days from October 11, 1995, the rule change proposal 
has become effective pursuant to Section 19(b)(3)(A) of the Act and 
Rule 19b-4(e)(6) thereunder. In particular, the Commission believes the 
proposal qualifies as a ``noncontroversial filing'' in that the 
proposed amendments do not significantly affect the protection of 
investors or the public interest and do not impose any significant 
burden on competition. At any time within 60 days of the filing of the 
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 at the 
Commission's Public Reference Section, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such filing will also be available for 
inspection and copying at the principal office of the CBOE. All 
submissions should refer to File No. SR-CBOE-95-55 and should be 
submitted by December 20, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\2\

    \2\17 CFR 200.30-3(a)(12) (1944).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-29148 Filed 11-28-95; 8:45 am]
BILLING CODE 8010-01-M