[Federal Register Volume 63, Number 207 (Tuesday, October 27, 1998)]
[Notices]
[Pages 57339-57340]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28643]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40566; File No. SR-CBOE-98-42]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Board Options
Exchange, Inc. Relating to Exchange Fees
October 19, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on September 23, 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 its fee schedule relating to the filing
of annual financial statements by Exchange market-makers who are
required to file annual financial statements pursuant to Rule 17a-5(d)
under the Act.\2\
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\2\ 17 CFR 240.17a-5(d).
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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
1. Purpose
The purpose of the proposed rule change is to change the fee
schedule for CBOE market-makers who must file with the Exchange annual
financial statements pursuant to Rule 17a-5(d) under the Act and CBOE
Rule 15.5. In 1991, the Exchange established a $25 filing fee for this
``FOCUS'' report.\3\ The Exchange has discovered in the intervening
years that a great deal of staff time must be devoted to reviewing and
sometimes correcting the filings that are made with the Exchange.
Consequently, to offset the cost of staff review of these filings, the
Exchange has determined to raise the filing fee to $100 for those CBOE
market-makers who make their annual filing by hard copy. The Exchange
has, however, recently provided members the opportunity to file their
FOCUS reports electronically through the WinJammer system. Because the
staff is able to review and process filings such quicker if they are
submitted electronically, the Exchange is not proposing to change the
fee for those market-makers who submit their annual financial
statements electronically over the WinJammer system. The filing fee for
electronic filers, therefore, will remain at $25.
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\3\ Securities Exchange Act Release No. 29482 (July 24, 1991),
56 FR 36180 (July 31, 1991).
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\4\ in general, and furthers the objectives of Section 6(b)(4) of
the Act,\5\ in particular, in that it is designed to provide for the
equitable allocation of reasonable dues, fees, and other charges among
CBOE members.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition.
[[Page 57340]]
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
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 \6\ and subparagraph
(e)(2) of Rule 19b-4 thereunder.\7\ 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.
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\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
\7\ 17 CFR 240.19b-4(e)(2).
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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.\8\ 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 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-98-42 and should be submitted by November 17, 1998.
\8\ In reviewing this proposal, the Commission has considered
its potential impact on efficiency, competition and capital
formation. 15 U.S.C. 78c(f).
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-28643 Filed 10-26-98; 8:45 am]
BILLING CODE 8010-01-M