[Federal Register Volume 62, Number 250 (Wednesday, December 31, 1997)]
[Notices]
[Pages 68326-68327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-34059]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39479; File No. SR-CBOE-97-61]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by The Chicago Board Options
Exchange, Inc. to Delete References to Market Performance Committee and
Floor Procedure Committee and Make Other Conforming Changes
December 22, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 2, 1997, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'' or ``SEC'') the proposed rule change as
described in Items I, II, and III below, which Items have been prepared
by the CBOE. The Exchange has designated the proposed rule change as
concerned solely with the administration of the Exchange under Section
19(b)(3)(A) of the Act, which renders the proposal effective upon
filing of this proposal by the Commission. 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).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CBOE proposes to delete from its rules any specific references
to a particular Floor Procedure Committee or Market Performance
Committee. The term ``appropriate'' will be added to all references
that currently relate to these committees. The text of the proposed
rule change is available at the Office of the Secretary, the 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 parts 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 amendment is to delete from the CBOE
rules any specific references to, and add ``appropriate'' to all
references that currently relate to, a particular Floor Procedure
Committee (``FPC'') or Market Performance Committee (``MPC''). For
instance, any reference to ``SPX Floor Procedure Committee'' or ``OEX
Market Performance Committee'' will be changed to ``appropriate Floor
Procedure Committee'' or ``appropriate Market Performance Committee.''
The Exchange is proposing to make the change at this time because
it recently determined to create two new committees, the Index Floor
Procedure Committee and the Index Market Performance Committee. These
two committees will replace the OEX Floor Procedure Committee and the
OEX Market Performance Committee, respectively. In addition to
governing the trading or market performance issues of S&P 100 Index
Options (``OEX''), the new committees likely will be given jurisdiction
over options on the Dow Jones Industrial Average (``DJX''), Nasdaq 100
Index options (``NDX''), and, in the case of the Index Market
Performance Committee, the S&P Index Options (``SPX''). The Exchange is
retaining the SPX Floor Procedure Committee to oversee SPX trading
issues.
In trying to accommodate these new committees specifically in the
rules, the Exchange believes a better approach is to make reference to
the ``appropriate'' FPC or the ``appropriate'' MPC. In this way, the
Exchange will have the flexibility to delegate the functions under the
rules to the appropriate committee and will not have to make a rule
change merely, for instance, to accommodate a future change in the
title of a committee or to accommodate the delegation of a new product
to a committee. As the authority exercised by these committees is
delegated pursuant to Exchange rules, the title of the committees
exercising their authority should not be relevant.
The Exchange is also proposing to delete Interpretation .08 to Rule
6.20. Interpretation .08 permits a member of a FPC to act in the
capacity of a Floor Official. However, the Exchange believes that
members of the appropriate MPC should handle this role because Floor
Officials commonly deal with issues under the jurisdiction of the MPC.
Members of the appropriate MPC can act as Floor Officials under
Interpretation .09 to Rule 6.20.
The Exchange also is deleting references to the SPX Advisory
Committee in Rule 24.15(a)(i) because this committee no longer exists.
Additionally, the Exchange is proposing to delete Rule 24A.1(s) because
it is unnecessary as a result of the proposed rule change. Finally, the
Exchange is proposing to change all references to Floor ``Procedures''
Committee to Floor ``Procedure'' Committee for consistency.
The CBOE believes the proposed rule change is consistent with the
requirements of Section 6(b)(5) \3\ of the Act which requires, among
other things, that the rules of the Exchange be designed to promote
just and equitable principles of trade, foster cooperation among
persons engaged in facilitating securities transactions, and protect
investors and the public interest. The CBOE believes that this proposal
complies with the Act because the CBOE is amending its rules to
generalize certain committee references to facilitate compliance.
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\3\ 15 U.S.C. 78f(b)(5)
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that the proposed rule change does not impose
any burden on competition that is not
[[Page 68327]]
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
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The Exchange has designated this proposal as concerned solely with
the administration of the Exchange under Section 19(b)(3)(A)(iii) \4\
of the Act and Rule 19b-4(e)(3) \5\ thereunder, which renders the
proposal effective upon filing with the Commission.
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\4\ 15 U.S.C. 78s(b)(3)(A)(iii).
\5\ 17 CFR 240.19b-4(e)(3).
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At any time within sixty days of the filing of this 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 Room, 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-97-61 and should be submitted by January 21,
1998.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-34059 Filed 12-30-97; 8:45 am]
BILLING CODE 8010-01-M