[Federal Register Volume 65, Number 103 (Friday, May 26, 2000)]
[Notices]
[Pages 34239-34240]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-13241]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42798; File No. SR-CBOE-00-19]


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

May 18, 2000.
    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 April 26, 2000, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange 
Commission

[[Page 34240]]

(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the Exchange. 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 rescind certain customer equity options fees. 
The text of the proposed rule change is available at the CBOE and 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 purposed 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 purpose of the proposed rule change is to rescind certain 
customer equity option fees. These fee changes are being implemented by 
the Exchange pursuant to CBOE Rule 2.22 and will be in effect as of May 
1, 2000.
    Specifically, the CBOE proposes to rescind transaction fees for 
manually executed equity options orders for public customers. The CBOE 
also proposes to eliminate the trade match fee for manually executed 
equity options orders for public customers.\3\ Finally, the CBOE 
proposes to eliminate the floor brokerage fee assessed to floor brokers 
for execution of equity options orders of public customers. The 
Exchange believes this fee change would generate significant savings 
for its customers.
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    \3\ The Exchange recently has rescinded transaction fees and 
trade match fees for public customer equity options orders routed 
through the Exchange's electronic Order Routing System. See File No. 
SR-CBOE-00-06.
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2. Statutory Basis
    The CBOE believes that the proposed rule change would be consistent 
with the provisions of Section 6(b) of the Act \4\ in general and would 
further the objectives of Section 6(b)(4) \5\ in particular, in that it 
is designed to provide for the equitable allocation of reasonable dues, 
fees, and other charges among Exchange members.
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    \4\ 17 U.S.C. 78f(b).d
    \5\ 17 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The CBOE does not believe that the proposed rule change would 
result in any burden on competition.

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

    No written comments were solicted 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 \6\ and subparagraph 
(f)(2) of Rule 19b-4 \7\ thereunder. 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 purpose 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 submission 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 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 
Exchange. All submissions should refer to File No. SR-CBOE-00-19 and 
should be submitted by June 16, 2000.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority. \8\
Jonathan G. Katz,
Secretary.
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    \8\ 17 CFR 200.30-3(a)(12)
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[FR Doc. 00-13241 Filed 5-25-00; 8:45 am]
BILLING CODE 8010-01-M