[Federal Register Volume 67, Number 210 (Wednesday, October 30, 2002)]
[Notices]
[Pages 66186-66187]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27576]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46718; File No. SR-CBOE-2002-48]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Granting Accelerated Approval of Proposed Rule 
Change Relating to Amendments to Its Constitution and Rules Pertaining 
to the Governance of the Exchange

October 24, 2002.
    On August 26, 2002, the Chicago Board Options Exchange, 
Incorporated (``CBOE'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``SEC'' or ``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 amend CBOE's 
Constitution and Rules relating to governance of the Exchange. The 
principal governance proposal increases the public representation on 
the Exchange's Board of Directors (``Board'') and three committees of 
the Board so that the Board and these three committees will be balanced 
between industry (member) and public directors. The Exchange also 
proposed to codify in its Constitution establishment of the Audit 
Committee, Compensation Committee, and Floor Directors Committee of the 
Board. It also proposed to amend its Constitution to clarify that the 
authority of the Vice Chairman of the Board to coordinate the 
activities of Exchange committees does not extend to the Executive, 
Audit or Compensation Committees. Finally, the

[[Page 66187]]

CBOE proposed certain ``housekeeping'' amendments to its Constitution 
and Rules.
    The proposed rule change was published for comment in the Federal 
Register on October 2, 2002.\3\ The Commission received no comments on 
the proposal. This order approves the proposed rule change on an 
accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 46546 (September 24, 
2002), 67 FR 61934.
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    The Commission finds that the proposed rule change is consistent 
with the Act and the rules and regulations under the Act 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 the requirement of Section 6(b)(5)\6\ because it is 
designed to promote just and equitable principles of trade and to 
protect investors and the public interest by increasing public 
representation on the Exchange's Board and certain committees so that 
the Board and those committees will be balanced between industry 
(member) and public directors.
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    \4\ In approving this proposed rule change, the Commission has 
considered the proposal'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)(5).
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    The Commission finds good cause for approving the proposed rule 
change prior to the thirtieth day after notice of publication in the 
Federal Register, in light of the absence of adverse comments on the 
proposed rule change. Acceleration of this approval will permit the 
CBOE to implement the changes without delay.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-CBOE-2002-48) 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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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-27576 Filed 10-29-02; 8:45 am]
BILLING CODE 8010-01-P