[Federal Register Volume 62, Number 209 (Wednesday, October 29, 1997)]
[Notices]
[Pages 56210-56211]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28571]


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SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39267; File No. SR-CBOE-97-33]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Inc.; Order Granting Approval to Proposed Rule Change Relating to 
Suspensions for Failure to Pay Debts Owed to the Exchange

October 22, 1997.
    On July 24, 1997, the Chicago Board Options Exchange, Inc. 
(``CBOE'' or ``Exchange'') submitted to 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

[[Page 56211]]

thereunder,\2\ a proposed rule change to amend its rule relating to the 
suspension of members and associated persons who fail to pay debts owed 
to the Exchange.
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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 Securities 
Exchange Act Release No. 39026 (Sept. 8, 1997), 62 FR 48123 (Sept. 12, 
1997). No comments were received on the proposal. This order approves 
the proposal.
    Rule 2.23 presently requires that members or associated persons who 
fail to pay any debts owed to the Exchange within 30 days after they 
become due may be suspended from membership or association with a 
member by the Chairman of the Executive Committee until payment is 
made.
    The Exchange proposes to amend this rule to clarify the application 
of Rule 2.23 to former members and persons associated with members by 
providing expressly that such persons who fail to pay debts owed to the 
Exchange may be barred from becoming a member and associated person by 
the Chairman of the Executive Committee until payment is made.
    The Exchange also proposes to add new Interpretation .02 to provide 
that the Exchange will report any suspension or bar imposed pursuant to 
Rule 2.23 to the Central Registration Depository (``CRD''). This new 
paragraph is similar to CBOE Rule 17.14 which provides for the 
reporting by the Exchange to the CRD of information concerning pending 
formal Exchange disciplinary proceedings. The Exchange also proposes to 
delete references to a regular membership and special membership in the 
current Rule 2.23, as CBOE no longer has any special memberships, and 
to add language clarifying that if a member fails to pay an Exchange 
debt within 6 months, the Chairman of the Executive Committee may 
dispose of any memberships owned by that member in accordance with Rule 
3.41(b).
    Finally, the proposed rule change also includes several 
nonsubstantive language changes.
    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, and, in particular, 
with the requirements of Section 6(b).\3\ Specifically, the Commission 
believes the proposal is consistent with the Section 6(b)(5) \4\ 
requirements that the rules of an exchange be designed to promote just 
and equitable principles of trade, to prevent fraudulent and 
manipulative acts, and, in general, to protect investors and the public 
interest.\5\ In this regard, the Commission believes that the proposed 
rule change will enhance the public's access to information concerning 
suspensions and bars imposed by the CBOE upon its members and 
associated persons.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
    \5\ In approving this rule, the Commission has considered the 
proposed rule's impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-CBOE-97-33) is approved.

    \6\ 15 U.S.C. 78s(b)(2).
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    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-28571 Filed 10-28-97; 8:45 am]
BILLING CODE 8010-01-M