[Federal Register Volume 63, Number 56 (Tuesday, March 24, 1998)]
[Notices]
[Pages 14152-14153]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7516]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39769; File No. JR-CBOE-98-08]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change By the Chicago Board Options 
Exchange, Inc., Relating to Electronic Filing of FOCUS Reports

March 17, 1998.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'' or ``Exchange Act''),\1\ notice is hereby given that on 
February 20, 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 Exchange.\2\ 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\ On March 16, 1998, the CBOE made a technical amendment to 
the proposal clarifying the implementation schedule for the 
electronic filing requirement contained therein. Telephone 
conversation between Timothy Thompson, Senior Attorney, Exchange, 
and Kenneth Rosen, Attorney, Division of Market Regulation, 
Commission (March 16, 1998).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The CBOE proposes to require members who are required to compute 
net capital under Exchange Act Rule 15c3-1 (``net capital computing 
members'') to file their FOCUS reports electronically using the 
WinJammer TM system.
    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

[[Page 14153]]

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

    Exchange Rule 15.5 requires members to file financial reports in a 
manner prescribed by the Exchange. Pursuant to Rule 15.5, the Exchange 
will now require that net capital computing members file electronically 
their required monthly/quarterly FOCUS reports \3\ using the WinJammer 
system. The Exchange will add Interpretation .02 to Rule 15.5 to set 
forth this requirement in its Rules. By requiring net capital computing 
firms to file their FOCUS reports electronically, the Exchange will be 
making its requirements consistent with those of the New York Stock 
Exchange and the National Association of Securities Dealers.
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    \3\ ``FOCUS reports'' are the Financial and Operational Combined 
Uniform Single Report which most broker-dealers are required to file 
with their designated examining authority pursuant to Exchange Act 
Rule 17a-5.
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    The use of WinJammer to collect FOCUS information ensures that the 
Exchange receives FOCUS reports from members without the risk of 
filings being lost. Additionally, because of the rigorous edit checks 
in the WinJammer system, the FOCUS data received will more likely be 
accurate and complete. Electronic receipt of FOCUS data also means that 
Exchange staff and outside vendors will no longer have to re-key the 
information; thus, freeing up Exchange resources for more important 
tasks. The Exchange will provide members with copies of the WinJammer 
software.
    By requiring net capital computing firms to file electronically, 
the Exchange will help to reduce errors and save resources. The filing, 
therefore, is consistent with and furthers the objectives of Section 
6(b)(5) of the Exchange Act in that it is designed to promote just and 
equitable principles of trade, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and 
to protect investors and the public interest.

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

    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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(i) of the Act \4\ and subparagraph (e)(1) of Rule 19b-4 
thereunder because the proposal constitutes a stated policy, practice, 
or interpretation with respect to the meaning, administration, or 
enforcement of an existing rule of the Exchange.\5\ Notwithstanding 
that this rule change is effective immediately upon filing, the CBOE 
will not require the filing of the electronic FOCUS reports until June 
1998. 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.
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    \4\ 15 U.S.C. 78s(b)(3)(A)(i).
    \5\ 17 CFR 240.19b-4(e)(1). In reviewing this rule, the 
Commission has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
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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, 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 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-98-08 and 
should be submitted by April 14, 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. 98-7516 Filed 3-23-98; 8:45 am]
BILLING CODE 8010-01-M