[Federal Register Volume 70, Number 44 (Tuesday, March 8, 2005)]
[Notices]
[Pages 11283-11284]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-934]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51282; File No. SR-CBOE-2004-82]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Granting Approval to Proposed Rule Change Relating 
to Exchange Rule 17.10(d)--Review of Decision Not To Initiate Charges

March 1, 2005.
    On December 8, 2004, the Chicago Board Options Exchange, 
Incorporated (``CBOE'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``SEC'' or ``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: (1) Amend Exchange Rule 
17.10(d), relating to the process for reviewing decisions not to 
initiate charges, to transfer from the President of the Exchange to the 
Exchange's Regulatory Oversight Committee (``ROC'') the authority to 
review and refer to the Exchange's Board of Directors (``Board'') 
decisions of the Business Conduct Committee (``BCC'') to decline to 
authorize the issuance of a statement of charges that is recommended by 
Exchange staff; and (2) change the time frame in which to conduct such 
a review from 30 days to 45 days from the date the Exchange serves the 
subject of the proceedings with notice that the BCC will not initiate 
charges. The proposed rule change was published for comment in the 
Federal Register on January 12, 2005.\3\ The Commission received no 
comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 50964 (January 5, 
2005), 69 FR 2200.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \4\ and, in 
particular, the requirements of Section 6(b) of the Act \5\ and the 
rules and regulations thereunder. The Commission finds specifically 
that the proposed rule change is consistent with Section 6(b)(5) of the 
Act \6\ because it is designed to enhance the independence of the 
Exchange's regulatory structure and processes by transferring from the 
President to the Exchange's ROC, which is composed solely of public 
directors and is charged with overseeing regulation, the authority to 
review and refer to the Board a decision by the BCC to not issue a 
statement of charges.
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    \4\ 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).
    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-CBOE-2004-82) be, and hereby 
is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).


[[Page 11284]]


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    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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 Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-934 Filed 3-7-05; 8:45 am]
BILLING CODE 8010-01-P