[Federal Register Volume 67, Number 41 (Friday, March 1, 2002)]
[Notices]
[Pages 9488-9489]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4877]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45470; File No. SR-CBOE-2002-06]


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

February 22, 2002.
    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 February 7, 2002, 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 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 make a change to its fee schedule to eliminate 
its ``Exchangefone'' and single-line phone deposits, and also to refund 
deposits that the CBOE is currently retaining. 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 had 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

    During the early 1980s, the CBOE began requiring members to pay a 
deposit of $1,000 per Exchangefone to help fund the installation of a 
new telephone system on the CBOE floor. Approximately 10 years ago, the 
CBOE modified the Exchangefone deposit program to cap or limit the 
deposits to no more than $10,000 per member firm. In addition, the CBOE 
currently requires a $175 damage deposit for single-line phones on the 
trading floor. The CBOE is currently holding approximately $365,000 in 
Exchangefone deposits and approximately $22,000 in single-line phone 
damage deposits.
    The CBOE Board has decided to eliminate the phone deposit programs 
and refund the deposits that the CBOE is currently holding. This filing

[[Page 9489]]

implements those changes. The CBOE will refund the deposits to each 
member firm through a credit that will appear on the next CBOE billing 
statement.
    The CBOE believes that the proposed rule change is consistent with 
section 6(b) of the Act \3\ and furthers the objectives of section 
6(b)(4) of the Act \4\ 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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    \3\ 15 U.S.C. 78f(b).
    \4\ 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 that is 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 CBOE neither solicited nor received written comments with 
respect to the proposed rule change.

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

    Because these foregoing rule change establishes or changes a due, 
fee, or other charge that the CBOE has imposed, it has become effective 
pursuant to section 19(b)(3)(A) of the Act\5\ and Rule 19b-4(f)(2) 
thereunder.\6\ At any time within 60 days after the filing of the 
proposed rule change, the Commission may summarily abrogate the 
proposed 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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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 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 the filing will also be 
available for inspection and copying at the principal office of the 
CBOE. All submissions should refer to file number SR-CBOE-2002-06 and 
should be submitted by March 22, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-4877 Filed 2-28-02; 8:45 am]
BILLING CODE 8010-01-M