[Federal Register Volume 65, Number 236 (Thursday, December 7, 2000)]
[Notices]
[Pages 76687-76688]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31137]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43639; File No. SR-CBOE-00-54]


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

November 29, 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 November 8, 2000, the Chicago Board Options Exchange, Inc. (``CBOE'' 
or ``Exchange'') filed with the Securities and Exchange Commission 
(``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 amend the New Member Orientation fee imposed 
by the Exchange, which is currently set forth in the Exchange's 
Membership Fee Circular. The Exchange further proposes to add certain 
clarifying language to the Membership Fee Circular with respect to the 
application of the Corporation/Partnership/LLC fee. The text of the 
proposed rule change is available at the Office of the Secretary of the 
CBOE and at 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 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 Exchange has

[[Page 76688]]

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 proposes to increase from $200 to $500 the fee that it 
charges applicants seeking membership as a Market-Maker or Floor Broker 
for the three-day Orientation Program provided to applicants by the 
Exchange. The Exchange states that the purpose of this proposed fee 
increase is to cover the costs of the Orientation Program, which are no 
longer adequately covered by the current $200 fee. The change to the 
New Member Orientation Fee is proposed to take effect on January 1, 
2001.
    The Exchange further proposes to amend its Membership Fee Circular 
to clarify the application of the Corporation/Partnership/LLC fee. This 
fee is imposed by the Exchange on each new firm applicant for 
membership on the Exchange. It is also applicable to a member 
organization that changes its legal structure (e.g., from partnership 
to corporation or the reverse, from partnership to LLC or the reverse, 
or from corporation to LLC or the reverse).
    The clarification concerns the applicability, when a member 
organization changes its legal structure, of certain other membership 
and membership application fees generally imposed by the Exchange. 
These include a General Partner fee, and Executive Officer fee, an LLC 
Manager fee, a Principal Shareholder fee, a Limited Partner fee, and an 
LLC Member fee.
    The Exchange proposes to amend the Membership Fee Circular to 
clarify that if a member organization changes its legal structure or in 
the event of a merger between current CBOE member organizations, 
General Partners, Executive Officers, LLC Managers, Principal 
Shareholders, Limited Partners and LLC Members listed on the Uniform 
Application for Broker-Dealer Registration Form (``Form BD'') of the 
member organization(s) prior to the change will not be assessed any 
fees in connection with the change. This proposed revision to the 
Membership Fee Circular codifies the current practice of the Exchange 
in addressing this situation.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) \3\ of the Act, in general, and furthers the 
objectives of Section 6(b)(4) \4\ of the Act in particular, in that it 
is designed to provide for the equitable allocation of reasonable dues, 
fees, and other changes among CBOE members.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 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 burden on competition not necessary or appropriate in 
furtherance of the purpose of the Act.

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

    No written comments were solicited or 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, which establishes or changes a due, fee, 
or other charge applicable to members of the Exchange, has become 
effective pursuant to Section 19(b)(3)(A) \5\ of the Act and 
subparagraph (f)(2) of Rule 19b-4 thereunder.\6\ At any time within 60 
days of the filing of the 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 purposes of 
the Act.
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 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 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-00-54, and 
should be submitted by December 28, 2000.

    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. 00-31137 Filed 12-6-00; 8:45 am]
BILLING CODE 8010-01-M