[Federal Register Volume 67, Number 69 (Wednesday, April 10, 2002)]
[Notices]
[Pages 17477-17478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-8604]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45688; File No. SR-CBOE-2002-14]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Board Options 
Exchange Relating to Refunds of Unspent Marketing Fee Account Balances

April 3, 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 March 22, 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 change its fee schedule to permit Designated 
Primary Market Makers (``DPMs'') who have collected marketing fees 
pursuant to the CBOE's fee schedule to refund the unspent balance of 
the fees back to the market makers who paid them. 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

    In July 2000 the CBOE imposed a $0.40 per contract marketing fee to 
collect funds to be used by the appropriate DPM to attract order flow 
to the CBOE.\3\ In July 2001, the CBOE suspended the assessment of the 
marketing fee but reserved the right to reinstate the assessment of the 
fee by filing a proposed rule change with the Commission at a future 
date.\4\
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    \3\ See Exchange Act Release No. 43112 (Aug. 3, 2000), 65 FR 
49040 (Aug. 10, 2000) (SR-CBOE-00-28).
    \4\ See Exchange Act Release No. 44717 (Aug. 16, 2001), 66 FR 
44655 (Aug. 24, 2001) (SR-CBOE-2001-43).
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    Since July 2001, the DPMs have not spent all of the funds that have 
been collected. Some DPMs have asked the CBOE for permission to refund 
the unspent funds to the market makers who paid the fees. The CBOE 
proposes to give DPMs the right--though not the obligation--to refund 
the unspent funds, on a pro rata basis, to the market makers who 
contributed the funds. The CBOE and its clearing members would 
facilitate the refunds by issuing appropriate debits and credits to the 
applicable accounts of DPMs and market makers.
    The CBOE believes that the proposed rule change is consistent with 
Section 6(b) of the Act \5\ and furthers the objectives of Section 
6(b)(4) of the Act \6\ in that it is designed to provide for the 
equitable allocation of reasonable dues, fees, and other charges among 
CBOE members.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 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 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 any written comments with 
respect to the proposed rule change.

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

    Because the proposed rule change establishes or changes a due, fee, 
or other charge that the CBOE has imposed, it has become effective upon 
filing pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-
4(f)(2) thereunder.\8\ At any time within 60 days after the filing of 
the 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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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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 SR-CBOE-2002-14 and should be 
submitted by May 1, 2002.


[[Page 17478]]


    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-8604 Filed 4-9-02; 8:45 am]
BILLING CODE 8010-01-P