[Federal Register Volume 67, Number 249 (Friday, December 27, 2002)]
[Notices]
[Pages 79195-79196]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32639]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46467A]


Self-Regulatory Organizations; Approval of Chicago Board Options 
Exchange, Inc. Fingerprinting Plan

December 19, 2002.

Correction

    In Release No. 34-46467 (``Prior Release''), issued on September 6, 
2002, beginning on page 58088 in the Federal Register issue of Friday, 
September 13, 2002, the amended fingerprinting plan of the Chicago 
Board Options Exchange, Inc. (``CBOE'') was noticed incorrectly. The 
corrected text of the amended CBOE fingerprinting plan appears below. 
Additions are in italics and deletions are in brackets as compared to 
the plan text that appeared in the Prior Release.

Chicago Board Options Exchange, Incorporated Fingerprint Plan

    Chicago Board Options Exchange, Incorporated (``Exchange'') submits 
this Fingerprint Plan (``Plan'') pursuant to Rule 17f2(c) under the 
Securities Exchange Act of 1934, as amended (``Act''). This Plan 
supersedes and replaces the Exchange's Fingerprint Plan approved by the 
Securities and Exchange Commission (``Commission'') on January 27, 
1984.
    The purpose of this Plan is to enable Exchange members and Exchange 
member applicants to comply with Section 17(f)(2) of the Act and Rule 
17f2 thereunder by providing a facility for the fingerprints of 
individual partners, directors, officers, and employees of Exchange 
members and Exchange member applicants to be processed and submitted to 
the Attorney General of the United States or its designee (``Attorney 
General'').
    The Exchange will utilize a Live-Scan electronic system for the 
taking of fingerprints. Any Live-Scan system utilized by the Exchange 
will have been certified by the Federal Bureau of Investigation 
(``FBI'') for compliance with the FBI's Integrated Automated 
Fingerprint Identification System Image Quality Specifications. The 
Exchange will train the Exchange personnel responsible for operating 
the Live-Scan system. The Exchange may also manually take fingerprints 
and receive manually taken fingerprint cards. The purpose of allowing 
this flexibility is to permit the Exchange to retain the ability to 
process and submit fingerprints to the Attorney General in the event 
the Exchange's Live-Scan system is not able to be used due to, for 
example, a system problem. Additionally, this flexibility will permit 
the Exchange to continue to receive manually taken fingerprint cards 
from those who are located at a distance from the Exchange or who for 
other reasons find it more expedient to provide manually taken 
fingerprint cards to the Exchange rather than travel to the Exchange to 
have fingerprints taken.
    Accordingly, under the Plan, the Exchange may receive fingerprints 
through any of the following methods:
    1. The Exchange may utilize a Live-Scan system to take the 
fingerprints and create an electronic fingerprint record for the 
fingerprints;
    2. the Exchange may manually take the fingerprints on a paper 
fingerprint card; [or]
    3. the Exchange may receive manually taken paper fingerprint cards;
    4. the Exchange may receive paper copies of electronic fingerprint 
records created by an FBI certified Live-Scan system that is utilized 
by a third party; or
    5. the Exchange may electronically receive from a remote location 
electronic fingerprint records created by an FBI certified Live-Scan 
system that is utilized by a third party.
    If the Exchange electronically receives an electronic fingerprint 
record created by an FBI certified Live-Scan system that is utilized by 
a third party, the Exchange will take reasonable measures to receive 
the transmission in an electronically secure manner.
    The fingerprint cards and electronic fingerprint records will 
identify the individual providing the fingerprints and the Exchange 
member or Exchange member applicant with whom the individual is 
associated. The fingerprint cards and electronic fingerprint records 
will be in a form acceptable to the Attorney General and the Exchange.
    In the event that an individual who previously provided 
fingerprints to the Exchange in accordance with this Plan is required 
to re-submit fingerprints, the Exchange may permit the individual not 
to be re-fingerprinted if the following conditions are satisfied:
    1. The Exchange is in possession of an electronic record of that 
individual's fingerprints taken by a Live-Scan system;
    2. the existing electronic fingerprint record was previously 
submitted to, and deemed acceptable by, the Attorney General; and
    3. the Exchange is able to resubmit the existing electronic 
fingerprint record to the Attorney General.
    In such an event, the Exchange shall re-submit the existing 
electronic fingerprint record to the Attorney General and process the 
fingerprint record received back from the Attorney General with respect 
to the fingerprints in the same manner as is the case with respect to 
initially submitted fingerprints.
    Once fingerprints are taken, the Exchange will review the 
information on the fingerprint card or in the electronic fingerprint 
record for the fingerprints, as applicable, for completeness, but not 
for accuracy, and will then submit the completed fingerprint card or 
electronic fingerprint record, as applicable, to the Attorney General 
for identification and processing.
    The Exchange shall submit fingerprint cards and electronic 
fingerprint records to the Attorney General in accordance with any 
requirements of the Attorney General relating to the manner of 
submission of this information. The submission may occur through any of 
the following methods:
    1. The Exchange may electronically transmit to the Attorney General 
an electronic fingerprint record created by a Live-Scan system;
    2. the Exchange may print out an electronic fingerprint record 
created by a Live-Scan system onto a paper fingerprint card (or receive 
a paper copy of an electronic fingerprint record created by an FBI 
certified Live-Scan system that is utilized by a third party) and 
submit the paper fingerprint card to the Attorney General through 
manual transmission, such as by United States mail; or
    3. the Exchange may submit manually taken fingerprint cards to the 
Attorney General through manual transmission, such as by United States 
mail.
    The purpose of allowing this flexibility is to permit the Exchange 
to retain the ability to submit fingerprints to the Attorney General in 
the event the Exchange is unable to electronically transmit electronic 
fingerprint records to the Attorney General due to a telecommunication 
problem or otherwise. Additionally, this flexibility will permit the 
Exchange to manually transmit to the Attorney General fingerprint cards 
manually taken by the Exchange and received from Exchange

[[Page 79196]]

members and Exchange member applicants.
    The Exchange will keep a list of the fingerprint cards and 
electronic fingerprint records submitted to the Attorney General in 
order to check on fingerprint submissions to the Attorney General 
pursuant to this Plan for which no fingerprint report has yet been 
received from the Attorney General. When a fingerprint report is 
received by the Exchange from the Attorney General with respect to 
fingerprints submitted by the Exchange pursuant to this Plan, the 
Exchange promptly will manually (such as by United States mail) or 
electronically forward a copy of the fingerprint report to the 
appropriate Exchange member or Exchange member applicant. If the 
Exchange electronically forwards a copy of a fingerprint report to an 
Exchange member or Exchange member applicant, the Exchange will take 
reasonable measures to transmit the report in an electronically secure 
manner.
    The Exchange promptly will review all fingerprint reports received 
from the Attorney General with respect to fingerprints submitted by the 
Exchange pursuant to this Plan in order to determine whether they 
contain information involving:
    1. A statutory disqualification, as that term is defined in the 
Act; or
    2. material misstatements or omissions concerning information 
previously reported to the Exchange.
    If so, the Exchange promptly will take appropriate action 
concerning eligibility or continued eligibility for Exchange membership 
or for employment or association with an Exchange member.
    Copies of fingerprint reports received from the Attorney General 
with respect to fingerprints submitted by the Exchange pursuant to this 
Plan will be maintained by the Exchange in accordance with the 
Exchange's Record Retention/Destruction/Conversion Plan filed with the 
Commission. Any maintenance of fingerprint records by the Exchange 
shall be for the Exchange's own administrative purposes, and the 
Exchange is not undertaking to maintain fingerprint records on behalf 
of Exchange members pursuant to Rule 17f-2(d)(2).
    The above procedures will be modified in the following manner with 
respect to individuals in registration capacities recognized by the 
Exchange who are associated persons of Exchange members that are not 
members of the NASD. The Exchange has established an arrangement with 
NASD to permit these individuals to be electronically registered with 
the Exchange through the Web Central Registration Depository (``Web 
CRD''). In connection with this registration process, these registered 
persons will have their fingerprints processed and submitted to the 
Attorney General through the facilities of either NASD or the Exchange. 
The extent to which these registered persons may utilize either one or 
both of these facilities will be determined by the Exchange and NASD. 
Fingerprint reports for these registered persons that are generated by 
the Attorney General will be provided to Web CRD and will be provided 
to the members with which these registered persons are associated 
through Web CRD. Record-keeping with respect to fingerprint submissions 
to and fingerprint reports from the Attorney General for these 
registered persons will be maintained by NASD. NASD will notify the 
Exchange if a fingerprint report received by Web CRD for one of these 
registered persons contains information relating to an arrest or 
conviction. In such an instance, the Exchange will review the 
fingerprint report and take appropriate action, if necessary, 
concerning eligibility or continued eligibility of the individual for 
employment or association with an Exchange member.
    The Exchange will advise Exchange members and Exchange member 
applicants of the availability of its fingerprint services and any fees 
charged by the Exchange in connection with those services and the 
processing of fingerprints pursuant to this Plan. The Exchange shall 
file any such fees with the Commission pursuant to Section 19(b)(3)(A) 
of the Act.
    The Exchange shall not be liable for losses or damages of any kind 
in connection with its fingerprinting services, as a result of its 
failure to follow, or properly to follow, the procedures described 
above, or as a result of lost or delayed fingerprint cards, electronic 
fingerprint records, or fingerprint reports, or as a result of any 
action by the Exchange or the Exchange's failure to take action in 
connection with this Plan.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\1\
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    \1\ 17 CFR 200.30-3(a)(17)(iii).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 02-32639 Filed 12-26-02; 8:45 am]
BILLING CODE 8010-01-P