[Federal Register Volume 68, Number 89 (Thursday, May 8, 2003)]
[Notices]
[Page 24778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-11414]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47775; File No. SR-CBOE-2003-05]


Self-Regulatory Organizations; Order Approving Proposed Rule 
Change and Amendment No. 1 Thereto, by the Chicago Board Options 
Exchange, Inc. To Prohibit Clearing Firms From Accepting Certain Third-
Party Deposits

April 30, 2003.
    On February 10, 2003, the Chicago Board Options Exchange, Inc. 
(``CBOE'' or ``Exchange'') submitted to the Securities and Exchange 
Commission (``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 establish CBOE Rule 4.21 which 
would prohibit, with certain exceptions, member firms that clear and 
carry the accounts of options market makers (``Clearing Firms'') from 
accepting deposits to such accounts if the check, funds transfer or 
securities is drawn from a third party's account. The proposed rule 
change also would establish record retention requirements for the 
Clearing Firm to follow if it accepts deposits from third parties 
pursuant to the permitted exceptions. The CBOE filed Amendment No. 1 to 
the proposal on March 5, 2003. The proposed rule change, as amended, 
was published for comment in the Federal Register on March 28, 2003.\3\ 
The Commission received no comments on the proposal.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 47553 (March 21, 2003), 
68 FR 15254.
---------------------------------------------------------------------------

    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder 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 that the 
rule change is consistent with section 6(b)(5) of the Act,\6\ which 
requires, among other things, that the rules of the Exchange be 
designed to prevent fraudulent and manipulative acts and practices, 
and, in general, to protect investors and the public interest. The rule 
change establishes a practice that should help to protect Clearing 
Firms from risks associated with improper transfers of funds and 
securities.
---------------------------------------------------------------------------

    \4\ In approving this proposed rule change, as amended, the 
Commission notes that it has considered the proposed rule'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).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\7\ that the proposed rule change, as amended, (File No. SR-CBOE-
2003-05) be, and it hereby is, approved.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-11414 Filed 5-7-03; 8:45 am]
BILLING CODE 8010-01-P