[Federal Register Volume 63, Number 22 (Tuesday, February 3, 1998)]
[Notices]
[Pages 5584-5585]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-2525]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39585; File No. SR-CBOE-98-02]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change By Chicago Board Options Exchange, Inc. To Limit Number of 
Consecutive Terms Executive Committee Chairman May Serve

January 27, 1998.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 16, 1998, 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 CBOE. 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The CBOE proposes to amend Section 8.1(a) of the Exchange 
Constitution to limit the number of consecutive terms that may be 
served by the Chairman of the Executive Committee. 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 the proposed amendment to Section 8.1 of the CBOE's 
Constitution is to limit the number of terms that may be served by the 
Chairman of the Executive Committee, who also serves as the Vice 
Chairman of the Exchange. Section 7.2 of the CBOE Constitution provides 
the Executive Committee members are elected for a term of one year. 
Currently, Section 8.1 of the CBOE's Constitution does not provide for 
any limit to the number of terns a Vice Chairman may serve. The CBOE is 
proposing to amend Section 8.1 to provide that the same person may be 
elected to the office of Vice Chairman up to three consecutive one year 
terms. For purposes of this limit, a combination of at lease six months 
of a one-year term plus the next two one-year terms is considered to be 
three consecutive one-year terms. A person becomes eligible to serve as 
Vice Chairman again, once that person has been out of that office for a 
period of six months or more.
    The purpose of the proposed amendment to impose term limits on the 
office of the Vice Chairman is to ensure a diversity of experience and 
ideas in this strategic position of the Exchange. The proposed term 
limit will apply to the Vice Chairman in office at the time this rule 
change becomes effective and will take account any prior terms served 
by that person.
    By amending the constitution to impose term limits on the office of 
Vice Chairman, the Exchange will ensure that the office of Vice 
Chairman will be dynamic and will present the Exchange with fresh 
ideas. Therefore, the rule change is consistent with Section 6 of the 
Act, in general, and Section 6(b)(5), in particular, in that it 
promotes just and equitable principles of trade, fosters cooperation 
among persons engaged in facilitating securities transactions, and 
protects investors and the public interest.

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

    The CBOE does not believe that the proposed rule change will impose 
any 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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory

[[Page 5585]]

organization consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. 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. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
CBOE. All submissions should refer to the File No. SR-CBOE-98-02 and 
should be submitted by February 24, 1998.

    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. 98-2525 Filed 2-2-98; 8:45 am]
BILLING CODE 8010-01-M