[Federal Register Volume 68, Number 145 (Tuesday, July 29, 2003)]
[Notices]
[Page 44554]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-19183]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48210; File No. SR-CBOE-2003-15]


Self Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Granting Approval to Proposed Rule Change and 
Amendment No. 1 Thereto Relating to an Amendment to Rule 17.2 of the 
CBOE's Disciplinary Rules Concerning the Initiation of Investigations 
of Possible Violations Within the Disciplinary Jurisdiction of the 
Exchange

July 23, 2003.
    On April 7, 2003, the Chicago Board Options Exchange, Inc. 
(``CBOE'' or ``Exchange'') filed with 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 amend CBOE Rule 17.2 of its 
Disciplinary Rules concerning the initiation of investigations of 
possible violations within the disciplinary jurisdiction of the 
Exchange. On May 30, 2003, the CBOE filed Amendment No. 1.\3\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from J. Patrick Sexon, Assistant General Counsel, 
CBOE, to Sapna C. Patel, Attorney, Division of Market Regulation, 
Commission, dated May 29, 2003 (``Amendment No. 1'').
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    The proposed rule change was published for comment in the Federal 
Register on June 23, 2003.\4\ The Commission received no comments on 
the proposal, as amended.
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    \4\ See Securities Exchange Act Release No. 48038 (June 16, 
2003), 68 FR 37181.
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    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 \5\ 
and, in particular, the requirements of section 6 of the Act \6\ and 
the rules and regulations thereunder. The Commission finds specifically 
that the proposed rule change, as amended, is consistent with section 
6(b)(5)\7\ 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. The Commission also finds 
that the proposed rule change, as amended, is consistent with sections 
6(b)(1),\8\ 6(b)(6),\9\ and 6(b)(7)\10\ of the Act in that it requires 
compliance by the Exchange members and persons associated with its 
members with the Act, the rules and regulations thereunder, and 
Exchange rules; and provides a fair procedure for the disciplining of 
Exchange members. In particular, the Commission believes that the 
proposed rule change, as amended, should help to clarify and make 
explicit that the Exchange can initiate investigations in its 
disciplinary jurisdiction on its own when it believes that there is a 
reasonable basis to do so, and that complaints made to the Exchange 
alleging violations made by a complainant can either be oral or 
written.
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    \5\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ 15 U.S.C. 78f(b)(1).
    \9\ 15 U.S.C. 78f(b)(6).
    \10\ 15 U.S.C. 78f(b)(7).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\11\ that the proposed rule change (File No. SR-CBOE-2003-15), as 
amended, be, and it hereby is, approved.
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    \11\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 03-19183 Filed 7-28-03; 8:45 am]
BILLING CODE 8010-01-P