Federal Register / Vol. 65, No. 110 / Wednesday, June 7, 2000 / Notices 36187

6 15 U.S.C. 78f(b)(5).

7 In addition, pursuant to section 3(f) of the Act,

the Commission has considered the proposed rule’s

impact on efficiency, competition, and capital

formation. 15 U.S.C. 78c(f).

8 15 U.S.C. 78f(b)(5).

9See Release No. 34–42769 (May 9, 2000), 65 FR

31036 (May 15, 2000) (order approving SR–OCC–

00–01.)

10 15 U.S.C. 78f.

11 15 U.S.C. 78s(b)(2).

12 17 CFR 200.30–3(a)(12).

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’’).

3. Statutory Basis

The CBOE believes the proposed rule

change is consistent with and furthers

the objectives of section 6(b)(5) 6 of the

Act in that it is designed to remove

impediments to a free and open market

and to protect investors and the public

interest.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The CBOE does not believe that the

proposed rule change will impose any

burden on competition.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Member, Participants, or Others

No written comments were solicited

or received with respect to the proposed

rule change.

III. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing,

including whether the proposed rule 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

Room. Copies of such filing will also be

available for inspection and copying at

the principal office of the CBOE. All

submissions should refer to File No.

SR–CBOE–00–02 and should be

submitted by June 28, 2000.

IV. Commission’s Findings and Order

Granting Accelerated Approval of

Proposed Rule Change

After careful review, the Commission

finds that the proposal is consistent

with the requirements of the Act.7 In

particular, the Commission finds the

proposal is consistent with section

6(b)(5) 8 of the Act. Section 6(b)(5)

requires, among other things, that the

rules of an exchange be designed to

promote just and equitable principles of

trade and to protect investors and the

public interest.

The Commission believes that the

proposal promotes just and equitable

principles of trade. In particular, the

proposal clarifies index settlement

procedures in the unusual situation

when a primary market where

component stocks trade is closed on the

index settlement day. By way of

example, the CBOE discusses a situation

in the fall of 1999 when some people

thought the NYSE would be closed on

the settlement day. This closure would

have affected many index options

traded on CBOE, including S&P 500

index options. If the market did not

open, CBOE’s settlement rules would

have required the Exchange and the

OCC to look at the previous closing

prices for component stocks that traded

on the NYSE. This procedure varied

from the settlement procedures of a

futures exchange that traded futures on

the S&P 500 index. Moreover, the

settlement procedure also placed

investors in S&P 500 index options in

the unusual situation of having to guess

as to whether the NYSE would open on

the settlement day. By relying on the

opening price of a security on the next

day the primary market is open, the

proposal helps clarify CBOE index

settlement procedures and also makes

these procedures conform to industry

practice in the futures markets. Further,

the proposal helps reduce investor

confusion by implementing rules that

foster investor certainty in the unusual

situation when a primary market where

component stocks trade is closed on the

index settlement day.

The Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after the date

of publication of notice thereof in the

Federal Register. A virtually identical

proposal, SR–OCC–00–01, was

published in the Federal Register for

the full 21-day comment period and the

Commission received no public

comments.9 The current proposal

mirrors the changes that were proposed

by the OCC in SR–OCC–00–01. The

Commission believes, therefore, that

granting accelerated approval to the

proposed rule change is appropriate and

consistent with section 6 of the Act.10

It Is Therefore Ordered, pursuant to

section 19(b)(2) of the Act,11 that the

proposed rule change (SR–CBOE–00–

02), as amended, is hereby approved on

an accelerated basis.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–14257 Filed 6–6–00; 8:45 am]

BILLING CODE 8010–01–M

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.

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.

36188 Federal Register / Vol. 65, No. 110 / Wednesday, June 7, 2000 / Notices

4 15 U.S.C. 78f(b).

5 15 U.S.C. 78f(b)(4).

6 15 U.S.C. 78s(b)(3)(A).

7 17 CFR 240.19b–4(f)(2).

8 In reviewing this proposal, the Commission has

considered its impact on efficiency, competition,

and capital formation. 15 U.S.C. 78c(f).

9 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 78s(b)(1).

2The Commission has modified the text of the

summaries prepared by DTC.

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.

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

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

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

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

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–14260 Filed 6–6–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42865; International Series

Release No. 1225; File No. SR–DTC–00–07]

Self-Regulatory Organizations; The

Depository Trust Company; Notice of

Filing and Order Granting Accelerated,

Temporary Approval of a Proposed

Rule Change Relating to the

Admission of Non-U.S. Entities as

Direct Depository Participants

May 30, 2000.

Pursuant to section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

May 18, 2000, The Depository Trust

Company (‘‘DTC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change as described in Items I and II

below, which Items have been prepared

primarily by DTC. The Commission is

publishing this notice and order to

solicit comments from interested

persons and to grant accelerated,

temporary approval of the proposed rule

change through May 31, 2001.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The purpose of the proposed rule

change is to extend the Commission’s

temporary approval of DTC’s admission

criteria for entities that are organized in

a country other than the United States

(‘‘non-U.S. entities’’).

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

DTC 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. DTC has prepared

summaries, set forth in sections (A), (B),

and (C) below, of the most significant

aspects of such statements.2