[Federal Register Volume 65, Number 179 (Thursday, September 14, 2000)]
[Notices]
[Pages 55658-55659]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-23612]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43251; File No. SR-CBOE-00-45]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Board Options 
Exchange, Incorporated Amending its Code of Conduct to Elaborate Its 
Existing Policy Prohibiting Harassment and Other Improper Conduct

September 6, 2000.
    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 September 6, 2000, the Chicago Board Options Exchange, Incorporated 
(``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

    CBOE proposes to amend its Code of Conduct (``Employee Handbook'') 
to elaborate its existing policy prohibiting harassment and other 
improper conduct. The text of the proposed rule

[[Page 55659]]

change is available at 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, 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. 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 change is to elaborate the Exchange's 
existing policy prohibiting harassment and other improper conduct by 
CBOE employees and certain non-employees including harassment directed 
against any member or other market participant for acting or seeking to 
act competitively, or in connection with a listing proposal made by 
such member or market participant. Although the Exchange believes that 
these prohibitions are encompassed within the Exchange's extensive 
Employee Handbook provisions dealing with harassment and other improper 
employee conduct, the Exchange seeks to provide expressly in its 
Employee Handbook that such specific conduct is prohibited and against 
CBOE policy. The Exchange believes that codifying the policy in the 
Employee Handbook will serve to highlight the policy to CBOE employees 
and non-employees and reinforce the Exchange's prohibition on any such 
anti-competitive conduct.
    Specifically, the added language will explicitly provide that it is 
against CBOE policy for any employee, officer, director, committee 
member, and other official or agent of CBOE to harass, threaten, 
intimidate, or retaliate against any member of CBOE or any other market 
participant for acting, or seeking to act, competitively, or because of 
a listing proposal made by such member or market participant to any 
exchange or other market, or such member's or market participant's 
advocacy or proposal concerning listing or trading on any exchange or 
market, or such member or market participant making markets in or 
trading any option on any exchange or other market.
    This change compliments a recently adopted rule change submitted by 
the Exchange concerning a similar prohibition on COBE members. \3\
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    \3\ See Securities Exchange Act Release No. 43227 (August 30, 
2000).
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2. Statutory Basis
    The Exchange believes that, because the proposed rule change will 
elaborate the Exchange's long-standing policy regarding the Exchange's 
prohibition against harassment and other similar practices, by 
employees and other non-members, the proposed change is consistent with 
Section 6 of the Act,\4\ in general, furthers the objectives of Section 
6(b)(5) \7\ in particular, in that it is designed to prevent fraudulent 
and manipulative acts and practices and to promote just and equitable 
principles of trade.
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    \4\ 15 U.S.C. 78f.
    \5\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The CBOE does not believe that the proposed change will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received from Members, Participants, or Others

    The Exchange has neither solicited nor received written comments 
with respect to the proposed change.

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

    The foregoing proposed rule change is concerned solely with the 
administration of the Exchange. Therefore, the proposed rule change has 
become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \6\ 
and Rule 19b-4(f)(3) thereunder. \7\ At any time within 60 days of the 
filing of such 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)(iii).
    \7\ 17 CFR 240.19b-4(f)(3).
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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 
whether the proposed 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 
file 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 CBOE. All submissions should refer to File No. SR-
CBOE-00-45 and should be submitted by October 5, 2000.

    For the Commission, by the Division of Market Regulataion, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-23612 Filed 9-13-00; 8:45 am]
BILLING CODE 8010-01-M