[Federal Register Volume 66, Number 156 (Monday, August 13, 2001)]
[Notices]
[Pages 42574-42575]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-20185]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44654; File No. SR-CBOE-2001-42]


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

August 3, 2001.
    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 July 23, 2001, 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \\ 217 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The CBOE proposes to amend its fee schedule to waive all public 
customer fees related to options on the Standard & Poor's 100 European-
style index (``XEO'').\3\
---------------------------------------------------------------------------

    \3\ The listing of XEO options on the CBOE became effective 
pursuant to File No. SR-CBOE-2001-39. See Securities Exchange 
Release No. 44556 (July 16, 2001), 66 FR 38046 (July 20, 2001) 
(notice of filing and immediate effectiveness of File No. SR-CBOE-
2001-39).
---------------------------------------------------------------------------

    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 Exchange included statements

[[Page 42575]]

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 Exchange has prepared summaries, set forth in 
sections A, B, and C blow, of the most significant parts 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 waive all public 
customer fees for XEO through October 31, 2001.\4\ These fee waivers 
will be in effect beginning with the launch of trading in XEO on July 
23, 2001.
---------------------------------------------------------------------------

    \4\ These public customer fees are fees assessed on CBOE members 
relating to public customer XEO orders executed by CBOE members. 
Telephone conversation between Chris Hill, Attorney II, CBOE, and 
Yvonne Fraticelli, Special Counsel, Division of Market Regulation, 
Commission, on July 30, 2001.
---------------------------------------------------------------------------

    Specifically, the Exchange proposes to waive the transaction fee, 
trade match fee, floor brokerage fee, and Retail Automatic Execution 
Systems (``RAES'') fee for public customer XEO orders. The Exchange has 
decided to waiver these fees through October 31, 2001, to promote the 
launch of the XEO product. The Exchange believes these fee waivers will 
serve to make XEO competitive with competing products at other 
exchanges while generating significant saving for its customers.\5\
---------------------------------------------------------------------------

    \5\ The Commission notes that this fee waiver is similar to that 
granted for reduced-value Nasdaq 100 Index (``NMX'') options. 
Securities Exchange Act Release No. 43221 (August 29, 2000), 65 FR 
54333 (notice of filing and immediate effectiveness of File No. SR-
CBOE-00-39).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\6\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act \7\ in particular, in that it 
is designed to provide for the equitable allocation of reasonable dues, 
fees, and other charges among CBOE members.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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

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

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 proposed rule change establishes or changes a 
due, fee, or other charge imposed by the Exchange, the proposed rule 
change has become effective pursuant to Section 19(b)(3)(A)(ii) of the 
Act \8\ and Rule 19b-4(f)(2) \9\ thereunder.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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.

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 File No. SR-CBOE-2001-42 and 
should be submitted by September 4, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-20185 Filed 8-10-01; 8:45 am]
BILLING CODE 8010-01-M