[Federal Register Volume 63, Number 117 (Thursday, June 18, 1998)]
[Notices]
[Pages 33422-33424]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16260]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40080; File No. SR-CBOE-98-24]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Board Options
Exchange, Inc., Relating to ILX Fees
June 9, 1998.
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 June 2, 1998, the Chicago Board Options Exchange, Inc. (``CBOE'' or
``Exchange''), filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the CBOE.
The Commission
[[Page 33423]]
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The CBOE proposes to revise the monthly fees for ILX optional
features available to members. These fees are currently set forth in
Regulatory Circular 95-74. The CBOE will issue a new regulatory
circular, as set forth below. Proposed new language is in italics;
proposed deleted language is in brackets.
REGULATORY CIRCULAR [RG 95-74] RG 98-
DATE: [September 8, 1995] ____________________
TO: CBOE [Member Firms] Members/Member Firms
FROM: [Department of Trading Operations] Market Operations Systems
Operations
RE: [Monthly Fees for Optional ILX Features/Entitlements] Revised
Monthly ILX Fees for Optional Features/Entitlements
The following is a listing of optional features or entitlements now
available from ILX, in addition to the basic ILX package [covered by
the $350.00 monthly fee].* The optional features fees below are stated
on a monthly, per ILX terminal basis.
--------------------------------------------------------------------------------------------------------------------------------------------------------
New Feature Available: FEE/month Each addl. terminal
--------------------------------------------------------------------------------------------------------------------------------------------------------
Firse Call Analysis Estimate...... $25.00................................................................................... same
[NOW AVAILABLE:
Options Analytics (OPA)....... $50.00................................................................................... same
Intermediate Charts CIT....... $20.00................................................................................... ``
CTI real time intraday $35.00................................................................................... ``]
charting (CTI).
[FEATURE:] Feature:
Block Ticker [(BLT)].......... $10.00................................................................................... ['']same
[Business Pulse (BPP.......... $10.00................................................................................... ``]
Futures Montage [(FUT)]....... $25.00................................................................................... [``] same
Market Guide [(MGD)].......... [$70.00] $50.00.......................................................................... [``] $20.00
NASDAQ Static Level II........ $35.00................................................................................... same
NASDAQ Dynamic Level II....... $175.00.................................................................................. same
Options Analytics w/ $25.00................................................................................... same
Intermediate Charts.
Options on Futures Montage $25.00................................................................................... [``] same
[(OFM)].
Portfolio Watch [(PTF)]....... [$125.00] $25.00......................................................................... [$25.00] same
Select Ticker (additional $10.00................................................................................... same
window fee) [(SLT)].
Ticker [(TKR)]................ $10.00................................................................................... [``] same
Traders Portfolio [(TRP)]..... [$125.00] $40.00......................................................................... [$40.00] same
[CHARTS:] Charts:
[Basic Historical (HST)....... $25.00................................................................................... same
Real Time/Intraday (CHI)...... $45.00................................................................................... ``
Advanced (WCA)................ $60.00................................................................................... ``
Additional Windows (CHT)...... $10.00................................................................................... ``]
Windows Advanced Historical... $60.00................................................................................... same
Windows Advanced Historical & $100.00.................................................................................. same
Real-Time.
[NEWS:] News:
[Dow Jones & Reuters.......... $101.00.................................................................................. ``]
Dow Jones Headlines & $79.00................................................................................... ``
Retrieval.
Reuters Headlines & Retrieval. $35.00................................................................................... ``
[EXCHANGES:] Exchanges:
Chicago Board of Trade [(CBT)] $66.00................................................................................... [$11.50] $12.00
Commodities Exchange Center $100.00.................................................................................. [21.00] $11.00
[(CEC)].
Kansas City Board of Trade [$11.50] $14.50.......................................................................... [$1.50] $3.25
[(KCB)].
Mid-America Commodity Exchange $9.50 per user (additional user windows at no charge)....................................
NASDAQ-Level II............... $50...................................................................................... same
New York Commodity Exchange... $63.00................................................................................... $12.00
New York Mercantile [(NYM)]... [$62.50]$63.00........................................................................... [$11.50] $12.00
--------------------------------------------------------------------------------------------------------------------------------------------------------
Members who wish to [receive] access optional ILX features on ILX
kiosk terminals, or member firms who wish to receive optional ILX
features at their ILX workstation terminals may direct any questions to
Steve Pawloski at 786-7789 in Trading Operations.
---------------------------------------------------------------------------
*[The first Select Ticker window will be no charge, each
additional window will be the rate shown.] The basic package now
includes at no additional cost a Business Pulse window (several
economic/business reports for the current day) and one Select Ticker
window (combined NYSE, AMEX, Nasdaq, US Options and US Equities
trades throughout the day).
---------------------------------------------------------------------------
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
1. Purpose
The CBOE proposes to revise monthly fees for optional ILX news and
information services available to members on the CBOE trading floor.
ILX Systems is an information vendor. The proposed changes result from
ILX's recently announced changes to features and/or fees.
[[Page 33424]]
In the past, the Commission approved the basic ILX package fee and
optional ILX news and information service fees for member firms
accessing the services from terminals located in trading floor
booths.\3\ Members can now more readily access optional ILX services
from numerous CBOE-owned kiosk terminals located throughout the trading
floor, as well as from firm booth terminals.
---------------------------------------------------------------------------
\3\ In 1994, the CBOE established a monthly $350 fee for the
basic ILX news package to members with ILX/WDN PC terminals at their
floor booth locations. See Securities Exchange Act Release No. 33983
(April 29, 1994), 59 FR 23756 (May 6, 1994). In 1995, the CBOE
established monthly fees for optional ILX news, market data and
informational features available on terminals at member firm booth
locations. See Securities Exchange Act Release No. 36349 (October 6,
1995), 60 FR 53651 (October 16, 1995).
---------------------------------------------------------------------------
The revised ILX fees will be outlined in detail in a Regulatory
Circular which will be issued to the Exchange's membership.\4\ An
individual member can request optional ILX features to be displayed on
a CBOE-owned kiosk terminal by submitting to the Exchange an
Entitlement Request form, and entering an ILX user identification
number of the kiosk terminal. ILX will then switch on the chose
feature(s) or ``entitlement(s)'' from a remote location to enable that
terminal to receive the data.
---------------------------------------------------------------------------
\4\ The Regulatory Circular will list all currently available
ILX optional features and current fees, although some fees have not
changed since the 1995 filing referenced in note 3 above.
---------------------------------------------------------------------------
The revised ILX optional fees will be effective retroactive to May
1, 1998.\5\
---------------------------------------------------------------------------
\5\ In April 1998, the CBOE filed with the Commission a proposed
rule change to revise the same ILX fees. See SR-CBOE-98-18. In May
1998, the CBOE withdrew that filing and replaced it with this
filing, SR-CBOE-98-24, to make technical corrections to the fees.
Based on SR-CBOE-98-18 becoming effective on filing, the CBOE began
charging the revised ILX fees (as those fees were stated in SR-CBOE-
98-24) to members as of May 1, 1998.
---------------------------------------------------------------------------
2. Statutory Basis
The CBOE believes that the proposed rule change is consistent with
Section 6(b)(4) of the Act,\6\ in that it is designed to provide for
the equitable allocation of reasonable dues, fees, and other charges
among CBOE members, issuers, and other persons using CBOE facilities.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The CBOE does not believe that the proposed rule change will impose
any inappropriate 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 establishes or changes a due, fee, or
other charge imposed by the Exchange and, therefore, has become
effective pursuant to Section 19(b)(3)(A) of the Act \7\ and
subparagraph (e)(2) of Rule 19b-4 thereunder.\8\ At any time within 60
days of the filing of the 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 204.19b-4(e)(2).
---------------------------------------------------------------------------
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, 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, 450 Fifth Street, N.W., Washington,
DC 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-98-24 and should be submitted by July 9,
1998.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3)a)(12).
---------------------------------------------------------------------------
Jonathan G. Katz,
Secretary.
[FR Doc. 98-16260 Filed 6-17-98; 8:45 am]
BILLING CODE 8010-01-M