[Federal Register Volume 69, Number 19 (Thursday, January 29, 2004)]
[Notices]
[Pages 4335-4336]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-1920]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49118; File No. SR-CBOE-2003-60]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change and Amendment No.1 Thereto by the 
Chicago Board Options Exchange, Incorporated Relating to Calendar Year 
2004 Fees

January 22, 2004.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on December 31, 2003, the Chicago Board Options Exchange, 
Incorporated (``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 CBOE. On January 16, 2004, the Exchange submitted Amendment No. 
1 to the proposal by facsimile.\3\ The proposed rule change, as 
amended, has been filed by the CBOE as establishing or changing a due, 
fee, or other charge, pursuant to section

[[Page 4336]]

19(b)(3)(A)(ii) of the Act \4\ and Rule 19b-4(f)(2) \5\ thereunder, 
which renders the proposal effective upon filing with the Commission. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change, as amended, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter to Nancy J. Sanow, Assistant Director, Division 
of Market Regulation, Commission, from Christopher R. Hill, Attorney 
II, CBOE, dated January 16, 2004 (``Amendment No. 1''). In Amendment 
No. 1, the Exchange revised the rule text to clarify the time period 
that the customer large trade discount pilot plan will be in effect.
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 240.19b-4(f)(2).
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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 three changes to its fee schedule to 
commence at the start of calendar year 2004. 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
    The Exchange proposes the following changes to its fee schedule to 
commence at the start of calendar year 2004:
Elimination of Fee for Electronic Delivery of Exchange Bulletin
    The Exchange Bulletin (``Bulletin'') publishes a variety of news 
and notifications of interest to Exchange members and market 
participants. Each member receives one complementary subscription. 
Currently, non-members, as well as members who wish to receive more 
than one subscription, are charged $200 annually to have a hard copy 
subscription mailed to them, and $100 per year to have an electronic 
copy sent to them by e-mail. These charges help offset the costs 
incurred by the Exchange to produce and deliver such subscriptions.
    The Exchange now proposes to eliminate all charges for e-mail 
delivery of Bulletin subscriptions, both for non-member subscriptions 
and additional member subscriptions. The Exchange proposes this change 
to encourage greater use of electronic delivery, and to pass on to 
Bulletin subscribers the cost efficiencies that the Exchange is 
realizing from increased electronic delivery.
Extension of Customer Large Trade Discount Program
    In July 2003, as part of its fiscal year 2004 fee changes, the 
Exchange established a Customer Large Trade Discount pilot program to 
be in effect through December 2003.\6\ The Exchange now proposes to 
extend this pilot through the end of fiscal year 2004 on June 30, 2004, 
in order to continue to provide discounts to customers on large trades. 
The terms of the pilot will remain unchanged.
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    \6\ See Securities Exchange Act Release No. 48223 (July 24, 
2003), 68 FR 44978 (July 31, 2003).
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Elimination of Market Share Incentive Plan
    Also in its fiscal year 2004 fee changes, the Exchange extended its 
Market Share Incentive Plan through December 2003.\7\ The Exchange now 
proposes to discontinue this Plan, in order to allow the Exchange to 
develop other means to improve CBOE market share in 2004.
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    \7\ Id.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\8\ in general, and furthers the 
objectives of section 6(b)(4) of the Act \9\ 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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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
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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 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 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 \10\ and subparagraph 
(f)(2) of Rule 19b-4 \11\ thereunder. 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.\12\
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    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
    \12\ For purposes of calculating the sixty-day abrogation 
period, the Commission considers the abrogation period to have begun 
on January 16, 2004, the date the CBOE submitted Amendment No. 1. 
See 15 U.S.C. 78s(b)(3)(C).
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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, as amended, 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. Comments may also be submitted electronically at the 
following e-mail address: [email protected]. All comment letters 
should refer to File No. SR-CBOE-2003-60. This file number should be 
included on the subject line if e-mail is used. To help the Commission 
process and review your comments more efficiently, comments should be 
sent in hardcopy or by e-mail but not by both methods. 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. CBOE-2003-60 and should be 
submitted by February 19, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-1920 Filed 1-28-04; 8:45 am]
BILLING CODE 8010-01-P