[Federal Register Volume 66, Number 165 (Friday, August 24, 2001)]
[Notices]
[Pages 44655-44656]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-21368]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44717; File No. SR-CBOE-2001-43]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Board Options 
Exchange, Inc. Regarding Its Marketing Fee

August 16, 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 August 1, 2001, the Chicago Board Options Exchange, Inc. (``CBOE'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III below, which 
Items the CBOE has prepared. 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

    The CBOE proposes to reduce the amount of its marketing fee from 
$0.40 per contract to $0.00. The text of the proposed rule change is 
available at the 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

    In July 2000, the CBOE imposed a $0.40 per contract marketing fee 
to collect funds to be used by the appropriate Designated Primary 
Market Maker (``DPM'') to attract order flow to the CBOE.\3\ The CBOE 
now proposes to reduce the amount of the marketing fee, effective 
August 1, 2001, to $0.00 per contract. The effect of this fee reduction 
is that the CBOE is suspending the assessment of the marketing fee. The 
CBOE is reserving the right to reinstate the marketing fee at a future 
date. Any reinstatement of the fee would be done pursuant to a rule 
filing with the Commission.\4\
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    \3\ See Securities Exchange Act Release No. 43112 (August 3, 
2000) 65 FR 49040 (August 10, 2000) (File No. SR-CBOE-2000-28).
    \4\ The CBOE notes that if it were to reinstate the marketing 
fee, it could establish a per-contract fee different from the $0.40 
currently charged.
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    The CBOE will continue to perform administrative functions under 
the current marketing fee program until all previously collected funds 
are distributed. The CBOE also will continue to pay interest on the 
funds in the DPM marketing fee accounts until these funds are 
distributed. Effective September 1, 2001, the CBOE also proposes to 
suspend the $10,000 monthly fee that has been imposed to help cover 
expenses related to its administration of the marketing fee program.\5\ 
The CBOE expects that this administrative fee will remain suspended 
until such time as the CBOE determines, if at all, to reinstate the 
marketing fee described above.\6\
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    \5\ See Securities Exchange Act Release No. 44469 (June 22, 
2001) 66 FR 35301 (July 3, 2001) (File No. SR-CBOE-2001-25).
    \6\ The CBOE states that any decision to reinstate the 
administrative fee would be filed with the Commission as a rule 
change.
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    The CBOE believes that the proposed rule change is consistent with 
Section 6(b) of the Act \7\ and furthers the objectives of Section 
6(b)(4) of the Act \8\ in that it is designed to provide for the 
equitable allocation of reasonable dues, fees, and other changes among 
CBOE members.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

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

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

    The CBOE neither solicited nor received comments with respect to 
the proposed rule change.

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

    Because the CBOE has designated the foregoing proposed rule change 
as a fee change pursuant to Section 19(b)(3)(A)

[[Page 44656]]

of the Act \9\ and Rule 19b-4(f)(2) thereunder,\10\ the proposal has 
become effective immediately upon filing with the Commission. At any 
time within 60 days after the filing of this proposed rule change, the 
Commission may summarily abrogate the 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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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

    The Commission invites interested persons 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, N.W., Washington, 
D.C. 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 SR-CBOE-
2001-43 and should be submitted by September 14, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 01-21368 Filed 8-23-01; 8:45 am]
BILLING CODE 8010-01-M