[Federal Register Volume 65, Number 174 (Thursday, September 7, 2000)]
[Notices]
[Pages 54333-54334]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-22864]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43221; File No. SR-CBOE-00-39]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by the Chicago Board Options 
Exchange, Inc. Amending the Exchange's Fee Schedule

August 29, 2000.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on July 31, 2000, the Chicago 
Board Options Exchange, Inc. (``CBOE'' or ``Exchange'') filed with the 
Securities and Exchange Commission (``Commission'' or ``SEC'') 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 Exchange proposes to amend its fee schedule to waive all 
customer fees for option transactions based on the reduced-value of the 
Nasdaq-100 Index (``MNXSM'').\2\ The text of the proposed 
rule change may be examined in the places specified in Item IV below.
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    \2\ The CBOE started trading the MNX product on August 14, 2000. 
The reduced-value of the Nasdaq-100 index is equal to one-tenth of 
the current value of the Nasdaq-100 index. See Securities Exchange 
Act Release No. 43000 (June 30, 2000), 65 FR 42409 (July 10, 2000) 
(SR-CBOE-00-15).
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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 Exchange included statements 
concerning the purpose of and basis for the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange 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, Proposed Rule Change

1. Purpose
    On July 10, 2000, the Commission approved the listing and trading 
by the CBOE of the MNX product.\3\ The purpose of the proposed rule 
change is to waive all customer fees relating to public customer MNX 
options orders. These fee waivers will be in effect beginning with the 
launch of trading of the MNX product on August 14, 2000.
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    \3\ Id.
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    Specifically, the Exchange proposes to waive the transaction fee, 
trade match fee, floor brokerage fee and the retail automatic execution 
system (``RAES'') fee for public customer MNX options orders. The 
Exchange has decided to waive these fees to promote the launch of the 
MNX product, and may determine to reevaluate the fee waiver at a future 
time. The Exchange believes these fee waivers will serve to make MNX 
options competitive with competing products at other exchanges while 
generating significant savings for its customers.
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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[[Page 54334]]

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

    The Exchange 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.

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 upon filing pursuant to Rule 19(b)(3)(A) of the Act \6\ and 
rule 19b-4(f)(2) 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).
    \7\ 17 CFR 240.19b-4(f)(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. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
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-00-39 and 
should be submitted by September 27, 2000.

    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. 00-22864 Filed 9-06-00; 8:45 am]
BILLING CODE 8010-01-M