[Federal Register Volume 63, Number 174 (Wednesday, September 9, 1998)]
[Notices]
[Pages 48285-48286]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-24096]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-40383; File No. SR-CBOE-98-36]


Self-Regulatory Organization; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Board Options 
Exchange, Inc. Relating to Exchange Fees

August 31, 1998.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on August 19, 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).
    \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 Exchange is proposing to make changes to its fee schedule 
relating to the Manual Book Entry fee and satellite television fees.

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 rule change is (i) to rescind, as of 
July 1, 1998, the Manual Book Entry fee, and (ii) to impose a monthly 
maintenance fee and installation fee for satellite television. These 
fee changes are being implemented by the Exchange pursuant to CBOE Rule 
2.22.
    The Exchange proposes to rescind, as of July 1, 1998, the Manual 
Book Entry fee, which initially was proposed in SR-CBOE-98-31, 
effective July 1, 1998. The Exchange now proposes to rescind the fee 
because there would have to be substantial systems enhancements in 
order to implement the fee, which would take much longer than expected, 
and the costs to Exchange and member firm staff would be significant 
compared to the expected revenue from the fee. As a result of this 
rescission, no members will be charged this fee, including any fee that 
would otherwise have been billed at the end of July for July 
activities.
    The Exchange proposes to add two new fees relating to satellite 
television. The Exchange recently has approved the installation of 
satellite television in

[[Page 48286]]

booths for members who desire this service. The Exchange proposes to 
impose a one time satellite television installation fee of $500, and a 
monthly maintenance fee of $35.
    The proposed rule change is consistent with Section 6(b) of the Act 
\3\ in general, and further the objectives of Section 6(b)(4) of the 
Act \4\ in particular, in that it is designed to provide for the 
equitable allocation of reasonable dues, fees, and other changes among 
CBOE members.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(4).
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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.

    The CBOE has neither solicited nor received written comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by the Exchange, it has become effective 
pursuant to Section 19(b)(3)(A)(ii) of the Act \5\ and subparagraph 
(e)(2) of Rule 19b-4 thereunder.\6\ 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\
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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(e)(2).
    \7\ In reviewing this proposal, the Commission considered its 
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 at the 
Commission's Public Reference Room. Copies of such filing also will be 
available for inspection and copying at the principal office of the 
CBOE. All submissions should refer to File No. SR-CBOE-98-36 and should 
be submitted by September 30, 1998.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-24096 Filed 9-8-98; 8:45 am]
BILLING CODE 8010-01-M