[Federal Register Volume 68, Number 161 (Wednesday, August 20, 2003)]
[Notices]
[Pages 50203-50204]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-21307]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48339; File No. SR-CBOE-2003-32]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by the Chicago Board Options 
Exchange, Inc. Relating to the Refund of Certain Telecommunication Fees

August 14, 2003.
    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 July 30, 2003, the Chicago Board Options Exchange, Inc. (``CBOE'' 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 Exchange. CBOE has 
designated the proposed rule change as constituting a ``non-
controversial'' rule change under Section 19(b)(3)(A)(iii) of the 
Act,\3\ and paragraph (f)(6) of Rule 19b-4 under the Act,\4\ which 
renders the proposal effective upon receipt of this filing by the 
Commission.\5\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
    \5\ The CBOE has requested that the Commission waive both the 
five-day pre-filing notification requirement and the 30-day 
operative delay, as specified in Rule 19b-4(f)(6)(iii). 17 CFR 
240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    CBOE proposes to make a change to its Fee Schedule to refund 
certain telecommunication fees that were collected from members and 
member organizations during 2002 in anticipation of the need to fund a 
new trading floor telecommunications system. The text of the proposed 
rule change is available at the office of the Secretary, CBOE and at 
the Commission.

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 CBOE 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 CBOE 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
    CBOE proposes to make a change to its Fee Schedule to refund 
certain telecommunication fees that were collected from members and 
member organizations during 2002 in anticipation of the need to fund a 
new trading floor telecommunications system. In SR-CBOE-2002-71,\6\ the 
Exchange amended its Fee Schedule, effective January 1, 2003, to reduce 
certain of its telecommunications fees due to its decision to defer a 
previously planned purchase of a new trading floor telephone system. 
These telecommunications rates had been raised by approximately 50% at 
the start of calendar year 2002 (this increase had previously been 
reduced by approximately 60% in May 2002.) In SR-CBOE-2002-71, the 
Exchange also indicated that it intended to file a separate proposed 
rule filing that would refund the increased telecommunications fees 
that were collected during 2002 to the members and member organizations 
that paid them. This filing effectuates that refund.
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    \6\ See Securities Exchange Act Release No. 47171 (January 13, 
2003), 68 FR 2594 (January 17, 2003) (order approving File No. SR-
CBOE-2002-71).
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2. Statutory Basis
    CBOE believes that the proposed rule change is consistent with the 
provisions of Section 6(b) of the Act \7\ in general, and with Section 
6(b)(4) of the Act \8\ in particular, in that it is designed to provide 
for the equitable allocation of reasonable dues, fees, and other 
charges among CBOE members.
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    \7\ 15 U.S.C. 78(f)(b).
    \8\ 15 U.S.C. 78(f)(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE does not believe that the proposed rule change will result in 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

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

    Written comments were neither solicited nor received.

[[Page 50204]]

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

    Because the proposed rule change: (i) Does not significantly affect 
the protection of investors or the public interest; (ii) does not 
impose any significant burden on competition; and (iii) does not become 
operative for 30 days (or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest) after the date of the filing, the proposed rule change has 
become effective pursuant to Section 19(b)(3)(A) of the Act \9\ and 
Rule 19b-4(f)(6) thereunder.\10\ At any time within 60 days of the 
filing of such proposed rule change, the Commission may summarily 
abrogate such rule change if it appears to the Commission that such 
action is necessary or appropriate in the public interest, for the 
protection of investors, or otherwise in furtherance of the purposes of 
the Act.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
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    The Commission has decided, consistent with the protection of 
investors and the public interest, to waive the five-day pre-filing 
notice and 30-day operative date to allow CBOE to immediately refund 
the increased telecommunications fees that were collected during 2002 
to the members and member organizations that paid them.\11\
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    \11\ For purposes only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
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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 in the 
Commission's Public Reference Room. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
CBOE. All submissions should refer to file number SR-CBOE-2003-32, and 
should be submitted by September 10, 2003.

    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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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-21307 Filed 8-19-03; 8:45 am]
BILLING CODE 8010-01-P