[Federal Register Volume 70, Number 77 (Friday, April 22, 2005)]
[Notices]
[Pages 20952-20953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1884]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51542; File No. SR-CBOE-2005-22]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Granting Accelerated Approval to a Proposed Rule 
Change To Adopt an Inactivity Fee To Be Charged Against Remote Market-
Makers That Fail To Commence Quoting in Their Appointed Classes

April 14, 2005.
    On March 15, 2005, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``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 adopt an inactivity fee to be 
charged against Remote Market-Makers (``RMMs'') that fail to commence 
quoting in their appointed classes.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change was published for comment in the Federal 
Register on March 21, 2005.\3\ The Commission received no comments on 
the proposal.
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    \3\ See Securities Exchange Act Release No. 51370 (March 15, 
2005), 70 FR 13559.
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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 of the Act \5\ and the rules 
and regulations thereunder. The Commission specifically finds that the 
proposed rule change is consistent with section 6(b)(4) of the Act \6\ 
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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    \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.
    \6\ 15 U.S.C. 78f(b)(4).
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    The Commission finds good cause for approving the proposed rule 
change prior to the thirtieth day after the proposal is published for 
comment in the Federal Register pursuant to section 19(b)(2) of the 
Act.\7\ The Commission believes that accelerating approval of the 
proposal is necessary to accommodate the rollout of CBOE's RMM program. 
In particular, the Commission notes that accelerated approval of the 
proposal would enable CBOE to commence its RMM program with the 
inactivity fee in place, which should help to ensure that RMMs are 
aware that they will be subject to fees if they fail to submit 
quotations in their appointed classes. The Commission further notes 
that the proposal should help to prevent an RMM that obtains an 
electronic appointment in a product from not initiating quoting in that 
product. In addition, the Commission notes that the proposed inactivity 
fee is similar to a fee imposed by the International Securities 
Exchange (``ISE'').\8\ The Commission therefore believes that 
accelerated approval of the proposed rule change is appropriate and 
finds that it is consistent with the Act.
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    \7\ 15 U.S.C. 78s(b)(2).
    \8\ See Securities Exchange Act Release 46272 (July 26, 2002), 
67 FR 50497 (August 2, 2002); see also ISE Regulatory Information 
Circulars 2002-04 and 2002-09.
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\9\ that the

[[Page 20953]]

proposed rule change (SR-CBOE-2005-22) be approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    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. E5-1884 Filed 4-21-05; 8:45 am]
BILLING CODE 8010-01-P