[Federal Register Volume 66, Number 168 (Wednesday, August 29, 2001)]
[Notices]
[Page 45713]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-21793]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44741; File No. SR-CBOE-2001-14]


Self Regulatory Organizations; Chicago Board Options Exchange, 
Inc.; Order Granting Approval to Proposed Rule Change Amending Rules 
Regarding Jurisdiction Over Former Members and Associated Persons for 
Failure To Honor an Exchange Arbitration Award

August 23, 2001.
    On March 27, 2001, the Chicago Board Options Exchange, Inc. 
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission''), pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to make amendments to its 
disciplinary and arbitration rules to extend the CBOE's disciplinary 
jurisdiction to cover former members and associated persons subject to 
CBOE arbitration awards. In particular, the proposed rule change 
provides that the failure to honor a CBOE arbitration award by a former 
CBOE member or associated person would subject former member or 
associated person to the disciplinary jurisdiction of the Exchange 
regardless of the date of termination of membership.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change was published for comment in the Federal 
Register on June 18, 2001.\3\ The Commission received no comments on 
the proposal.
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    \3\ See Securities Exchange Act Release No. 44408 (June 11, 
2001), 66 FR 32853.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \4\ and, in 
particular, the requirements of Section 6 of the Act \5\ and the rules 
and regulations thereunder. The Commission finds specifically that the 
proposed rule change is consistent with Sections 6(b)(1) and Section 
6(b)(6) of the Act,\6\ respectively, in that the proposed rule change 
satisfies the requirement that: (1) An exchange is so organized and has 
the capacity to be able to carry out the purposes of Section 6 of the 
Act and to enforce compliance by its members and persons associated 
with its members with the provisions of Section 6 of the Act, the rules 
and regulations thereunder, and the rules of the exchange; and (2) the 
rules of an exchange provide that its members and persons associated 
with its members shall be appropriately disciplined for violation of 
the Act, the rules and regulations thereunder, or the rules of the 
exchange.
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    \4\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(1); (b)(6).
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    It Is Therefore Ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (File No. SR-CBOE-2001-04) be, 
and it hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    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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[FR Doc. 01-21793 Filed 8-28-01; 8:45 am]
BILLING CODE 8010-01-M