[Federal Register Volume 63, Number 207 (Tuesday, October 27, 1998)]
[Pages 57339-57340]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28643]



[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 

    \1\ 15 U.S.C. 78s(b)(1).

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\

    \2\ 17 CFR 240.17a-5(d).

    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.

    \3\ Securities Exchange Act Release No. 29482 (July 24, 1991), 
56 FR 36180 (July 31, 1991).

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.

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).

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.

    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-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.\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).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\

    \9\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-28643 Filed 10-26-98; 8:45 am]