[Federal Register Volume 61, Number 126 (Friday, June 28, 1996)]
[Notices]
[Pages 33787-33788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16520]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37349; File No. SR-CBOE-96-38]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Board Options 
Exchange, Incorporated Relating to the Definition of Expiration Month 
for Purposes of Determining Log-On Obligations for RAES in SPX Options

June 21, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on June 20, 1996, 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

[[Page 33788]]

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.
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    \1\ 15 U.S.C. 78s(b)(1) (1988).
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I. Self-Regulatory Organizations Statement of the Terms of Substance of 
the Proposed Rule Change

    The CBOE proposes to amend the definition of an expiration month 
for purposes of determining compliance with the Retail Automatic 
Execution System (``RAES'') log-on requirement for market makers of 
Standard & Poor's 500 Stock Index (``SPX'') options as detailed in Rule 
24.16.

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 purpose of the proposed rule change is to amend the definition 
of an expiration month for purposes of determining compliance with the 
RAES log-on requirement for market makers of SPX options as detailed in 
Rule 24.16. According to CBOE Rule 24.16, once a market maker logs onto 
SPX RAES at any time during an expiration month, he or she must 
continue to do so each time he or she is present in the SPX trading 
crowd until the next expiration. For this purpose, an expiration month 
currently is defined as the period from the Monday immediately 
following an expiration Saturday through the Friday immediately 
preceding the next successive expiration Saturday. In consideration of 
the fact that expiring SPX option contracts cease trading at the close 
of business on the Thursday immediately preceding an expiration and 
that the new near-term series becomes the RAES eligible series on that 
Friday, the Exchange has determined to redefine the expiration month 
for SPX RAES log-on obligations. Commencing on Friday, May 17, 1996, an 
expiration month for SPX RAES log-on obligation purposes will be 
defined as the period from the Friday immediately preceding an 
expiration Saturday through the Thursday immediately preceding the next 
successive expiration Saturday. The expiration month for SPX RAES log-
on obligation purposes will be defined in this manner for each 
expiration thereafter.
    Because the proposed rule change is meant to conform more precisely 
the definition of SPX market makers' obligations with the expiration 
cycle for SPX options, the Exchange believes that the proposed rule 
change is consistent with Section 6 of the Act in general and with 
Section 6(b)(5) in particular in that it is designed to promote just 
and equitable principles of trade, to foster cooperation with persons 
engaged in facilitating and clearing transactions in securities, and to 
protect investors and the public interest.

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

    The CBOE believes that the proposed rule change will impose no 
burden on competition.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants, or Others

    Written comments on the proposed rule change were neither solicited 
nor received.

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

    Because the proposed rule change constitutes a stated 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule, it has become effective pursuant to 
Section 19(b)(3)(A) of the Act and subparagraph (e) of Rule 19b-4 
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. 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 File No. 
SR-CBOE-96-38 and should be submitted by July 19, 1996.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\2\
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    \2\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-16520 Filed 6-27-96; 8:45 am]
BILLING CODE 8010-01-M