[Federal Register Volume 67, Number 114 (Thursday, June 13, 2002)]
[Notices]
[Pages 40761-40762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-14944]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46044; File No. SR-CHX-2002-14]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the Chicago Stock Exchange, Inc. to Delete Rule Provisions 
Relating to the Trading of Options

June 6, 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 April 26, 2002, the Chicago Stock Exchange, Inc. (``CHX'' 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 CHX. 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 Exchange proposes to amend the CHX rules to delete provisions 
governing or relating to the trading of options on the CHX. The text of 
the proposed rule change is available from the Office of the Secretary 
of the Commission or the CHX.

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 
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 CHX 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

1. Purpose
    The Exchange proposes to amend certain provisions of the CHX rules 
which govern or make reference to the trading of options on the CHX. In 
1980, the Commission approved changes to the Exchange's bylaws and 
rules that deleted most references to the Exchange's operation of an 
options market.\3\ Since that time, the Exchange has not operated an 
options market, but has served as an self-regulatory organization 
participant on the Options Self-Regulatory Council (``OSRC'') for 
essentially informational purposes.
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    \3\ See Securities Exchange Act Release No. 17075 (August 19, 
1980), 45 FR 56486 (August 25, 1980).
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    Given changes in the options market and obligations of OSRC 
participants, the Exchange believes that it is no longer advisable, 
from either a regulatory or economic perspective, to continue serving 
on the OSRC.\4\ Accordingly, the Exchange believes that it is 
appropriate to delete from the CHX rules all remaining references to 
the trading of options and handling of options orders. Removal of these 
remaining options rules will then excuse the Exchange from any 
obligation to serve on the OSRC.
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    \4\ If the CHX were to continue to serve, it would be 
responsible for a pro rata share of OSCR member examination costs, 
which are significant. CHX believes that there is no rationale that 
supports CHX payment of examination costs attributable to exchanges 
that are actively trading options, given that CHX does not presently 
trade options and would have to propose significant rule changes 
should it elect to commence options trading in the future.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act \5\ in general, and furthers the 
objectives of Section 6(b)(5) \6\ in particular, in that it is designed 
to promote just and equitable principles of trade, to remove 
impediments and to perfect the mechanism of a free and open market and 
a national market system, and, in general, to protect investors and the 
public interest.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that no burden will be placed on competition 
as a result of the proposed rule change.

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

    No written comments were either solicited or received.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i)

[[Page 40762]]

as the Commission may designate up to 90 days of such date if it finds 
such longer period to be appropriate and publishes its reasons for so 
finding or (ii) as to which the self-regulatory organization consents, 
the Commission will:
    A. by order approve the proposed rule change, or
    B. institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 at the 
Commission's Public Reference Room. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
Exchange. All submissions should refer to File No. SR-CHX-2002-14 and 
should be submitted by July 5, 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. 02-14944 Filed 6-12-02; 8:45 am]
BILLING CODE 8010-01-P