[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