[Federal Register Volume 69, Number 69 (Friday, April 9, 2004)]
[Notices]
[Pages 18996-18997]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-8086]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49524; File No. SR-CBOE-2004-18]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by the Chicago Board Options 
Exchange, Inc. Relating to an Extension of Its Prospective Fee 
Reduction Program

April 2, 2004.
    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 March 26, 2004, the Chicago Board Options Exchange, Inc. (``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 CBOE. CBOE filed this 
proposal pursuant to Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 
19b-4(f)(2) \4\ thereunder, as one establishing or changing a due, fee, 
or other charge imposed by the Exchange, which renders the proposal 
effective upon filing with the Commission. 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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    CBOE proposes to make a change to its Fee Schedule to extend the 
Prospective Fee Reduction Program through the close of the current 
Exchange Fiscal Year on June 30, 2004.
    Below is the text of the proposed rule change. Proposed new 
language is italics; proposed deletions are in [brackets].
* * * * *
FEE SCHEDULE--APRIL 1, 2004
    1-18 No Change.
19 PROSPECTIVE FEE REDUCTION PROGRAM
    A Prospective Fee Reduction Program will be in effect for February 
[and March] through June 2004. CBOE Market Maker (as defined in CBOE 
Rule 8.1) transaction fees will be reduced from standard rates by $.02 
per contract side. In addition, floor brokerage fees will be reduced by 
$.003 (three-tenths of one cent) per contract side.
    Remainder of Fee Schedule No Change.
* * * * *

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, 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. 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 represents that in recognition of high trading volume and 
positive financial results to date during its current fiscal year, the 
Exchange recently re-implemented a Prospective Fee Reduction Program 
for February and March 2004.\5\ The Exchange now proposes to extend the 
current Prospective Fee Reduction Program through the close of the 
current CBOE fiscal year on June 30, 2004. Under the extended program, 
CBOE Market-Makers (as defined in CBOE Rule 8.1) will continue to have 
their transaction fees reduced from standard rates by $.02 per contract 
side. In addition, under the extended program, CBOE will continue to 
reduce all floor brokerage fees by

[[Page 18997]]

$.003 per contract side. As before, the Exchange will continue to 
monitor its financial results to determine whether the Prospective Fee 
Reduction Program should be continued, modified, or eliminated in the 
future.
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    \5\ See Securities Exchange Act Release No. 49341 (March 1, 
2004), 69 FR 10492 (March 5, 2004).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\6\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act \7\ 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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    \6\ 15 U.S.C. 78f(b).
    \7\ 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

    The foregoing proposal has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-4(f)(2) \9\ thereunder 
because it establishes or changes a due, fee, or other charge imposed 
by the Exchange. 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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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 C.F.R. 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. 
Comments may also be submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-CBOE-2004-18. The 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 Exchange. All 
submissions should refer to the File No. SR-CBOE-2004-18 and should be 
submitted by April 30, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-8086 Filed 4-8-04; 8:45 am]
BILLING CODE 8010-01-P