[Federal Register Volume 68, Number 219 (Thursday, November 13, 2003)]
[Notices]
[Pages 64379-64380]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-28393]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48750; File No. SR-CBOE-2003-52]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Board Options 
Exchange, Incorporated To Make Changes to Its Fee Schedule To Amend 
Certain Application Fees

November 6, 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 November 3, 2003, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' or ``Exchange'') submitted to 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 CBOE. 
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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The CBOE proposes to make changes to its Fee Schedule to amend 
certain application fees. The text of the proposed rule change to the 
fee schedule is available at the Office of the Secretary, the 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, Proposed Rule Change

1. Purpose
    The CBOE proposes to make the following amendments to its Fee 
Schedule concerning its application fees, as described below.
    First, the application fee for a new joint account is currently 
$250 per person (with a minimum of $500). The Exchange states that this 
fee has not increased for many years,\3\ and now proposes to move to a 
flat fee of $1,000 for all new joint account applications.
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    \3\ See Securities Exchange Act Release No. 14197 (Nov. 22, 
1977), 42 FR 61097 (Dec. 1, 1977) (approving SR-CBOE-77-26, which 
established the $250 joint account application fee).
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    Second, the Exchange currently charges $250 whenever a member 
organization requests an addition of a member to a joint account. The 
Exchange proposes a change to eliminate this fee for participant 
additions to joint accounts whose members are part of the same broker-
dealer. The Exchange states that the vast majority of additions to 
joint accounts are currently for joint accounts whose members are part 
of the same broker-dealer. Recent revisions in the joint application 
account form have significantly reduced the time and effort that the 
Exchange staff must expend in processing such changes. In cases where 
the members of a joint account are not part of the same broker-dealer, 
the $250 fee would continue to be imposed for each addition to the 
joint account.
    Finally, the Exchange proposes to establish a $10,000 cap on 
application fees that are incurred due to a member organization's 
change in its organizational structure (e.g., when a limited 
partnership restructures itself as a limited liability corporation). 
The Exchange believes that this cap would still allow the CBOE to 
recover its processing costs occasioned by such structural changes, 
while also mitigating the fee impact upon member organizations who find 
themselves required to enact such changes in their structure.
    The Exchange believes that these changes would help continue to 
fairly allocate its costs for processing changes in joint accounts 
while also passing along to members the savings from increased 
efficiencies that the Exchange has recently achieved in this area.
2. Statutory Basis
    The Exchange believes that its proposed rule change is consistent 
with Section 6(b) of the Act \4\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act \5\ in particular, in that it 
is designed to provide for the equitable allocation of reasonable dues, 
fees, and other charges among the CBOE members.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).

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[[Page 64380]]

B. Self-Regulatory Organization's Statement on Burden on Competition

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

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

    No written comments were solicited or received with respect to the 
proposed rule change.

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

    Because the foregoing proposed rule change establishes or changes a 
due, fee, or other charge imposed by the Exchange, it has become 
effective pursuant to Section 19(b)(3)(A)(ii) of the Act \6\ and 
subparagraph (f)(2) of Rule 19b-4 thereunder.\7\ At any time within 60 
days of the filing of the 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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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-4(f)(2).
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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 No. SR-CBOE-2003-52 and 
should be submitted by December 4, 2003.

    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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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 03-28393 Filed 11-12-03; 8:45 am]
BILLING CODE 8010-01-P