[Federal Register Volume 65, Number 110 (Wednesday, June 7, 2000)]
[Notices]
[Pages 36187-36188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-14260]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42850; File No. SR-CBOE-00-06]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Board Options 
Exchange, Incorporated Relating to Exchange Fees

May 30, 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 March 3, 2000, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission'' or ``SEC'') the proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
by the CBOE. On April 12, 2000, the Exchange submitted Amendment No. 1 
to the proposed rule change.\3\ 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\ In Amendment No. 1, the Exchange corrected the Schedule of 
Dues and Fees contained in Appendix A to reflect what the Exchange's 
fee schedule stated with respect to equity option customer order 
fees and trade match fees before the proposed rule change was filed. 
See Letter from Angelo Evangelou, Attorney, Legal Division, CBOE, to 
Jennifer Colihan, Attorney, Division of Market Regulation, SEC, 
dated April 11, 2000 (``Amendment No. 1'').
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to make certain changes to its fee schedule. 
The text of the proposed rule change is available at the Office of the 
Secretary, CBOE and at the Commission.

[[Page 36188]]

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 is proposing to rescind certain customer equity 
options fees. The foregoing fee changes are being implemented by the 
Exchange pursuant to CBOE Rule 2.22 and will be in effect as of March 
1, 2000.
    The Exchange proposes to rescind transaction fees for public 
customer equity option orders routed through CBOE's electronic Order 
Routing System (``ORS''). The Exchange further proposes to eliminate 
the trade match fee for public customer equity option orders routed 
through ORS. An overwhelming majority of CBOE customer orders are 
routed via ORS. The Exchange, therefore, believes this fee change will 
generate significant savings for its customers.
    Manually executed public customer orders will retain the current 
$0.09 transaction fee and $0.05 trade match fee. Orders entered into 
ORS via the Exchange's Booth Entry and Routing System (BERS) after a 
manual execution will also be subject to the current $0.09 transaction 
fee and $0.05 trade match fee, and shall not be eligible for the fee 
reduction proposed herein.
2. Statutory Basis
    The Exchange represents that the proposed rule change is consistent 
with section 6(b) \4\ of the Act in general and furthers the objectives 
of section 6(b)(4) \5\ in particular because it provides for the 
equitable allocation of reasonable dues, fees and other charges among 
CBOE members.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 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 inappropriate or unnecessary burden on competition.

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

    Written comments were neither solicited nor received with respect 
to the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    The foregoing rule change establishes or changes a due, fee or 
charged imposed by the Exchange and, therefore, has become effective 
upon filing pursuant to Section 19(b)(3)(A) of the Act \6\ and 
subparagraph (f)(2) of Rule 19b-4 \7\ thereunder.\8\
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    \6\ 15 U.S.C. 78s(b)(3)(A).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate the 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.\7\
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    \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 submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW, Washington, DC 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 Section, 450 Fifth Street, NW, 
Washington, DC 20549. Copies of such filing will also be available for 
inspection and copying at the principal office of the CBOE.\8\
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    \8\ In reviewing this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
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    All submissions should refer to the file number in the caption 
above and should be submitted by June 28, 2000.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-14260 Filed 6-6-00; 8:45 am]
BILLING CODE 8010-01-M