Federal Register / Vol. 63, No. 92 /Wednesday, May 13, 1998 / Notices 26657

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

2 17 CFR 240.19b–4.

3The proposed rule change required a technical

amendment to clarify the fee schedule. Telephone

conversation between Timothy Thompson, Senior

Attorney, CBOE, and Karl Varner, Staff Attorney,

SEC, on April 29, 1998.

4Securities Exchange Act Release No. 39618

(February 4, 1998), 63 FR 7019 (February 11, 1998)

[File No. SR–CBOE–98–01] (changing the book fee

rate for equity options to $0.45 per contract).

5Premium equals the option price in dollars,

calculated on a per-share basis for equity option

contracts, and calculated on a per-unit basis for

index option contracts. The ranges set forth include

their lower bounds.

Accommodation liquidations and cabinet trades

are off-market trades at a price of $1 per option

contract.

The definitions were clarified during a telephone

conversation between Timothy Thompson, Senior

Attorney, CBOE, and Karl Varner, Staff Attorney,

SEC, on May 5, 1998.

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39963; File No. SR–CBOE–

98–16]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Board Options Exchange, Inc.

Relating to Exchange Fees

May 6, 1998.

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

Securities Exchange Act of 1934

(‘‘Act’’) 1 and Rule 19b–4 2 thereunder,

notice is hereby given that on April 22,

1998, the Chicago Board Options

Exchange, Inc. (‘‘CBOE’’ or ‘‘Exchange’’)

filed with the Securities and Exchange

Commission (‘‘SEC’’ or ‘‘Commission’’)

the proposed rule change as described

in Items I, II, and III below, which Items

have been prepared by the CBOE.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 CBOE is proposing to change its

Order Book Official (‘‘book’’) rate

schedule for index options. The text of

the proposed rule change is available at

the Office of the Secretary, 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 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

The purpose of the proposed rule

change is to change the book fee

schedule applicable to index options.

The Exchange recently changed the

book fees for equity options.4 The book

fees are billed at the end of each month

and so this change will be reflected in

the bills for all May transactions. These

fees changes are being implemented by

the Exchange pursuant to CBOE Rule

2.22. Under the new schedule, index

option book execution services will be

capped at a rate of $1.25 per contract.

The current rate schedule for index

options assess various charges for book

executions depending on the premium

and the order size. The current schedule

for index options is as follows:

Premium 5 First ten

contracts

Eleven and

above

Accommodation Liquidations ....................................................................................................................................... $0.10 $0.10

Cabinet trades .............................................................................................................................................................. 0.10 0.10

Under $0.50 ................................................................................................................................................................. 0.35 0.28

$0.50–1 ........................................................................................................................................................................ 0.525 0.455

1–2 ............................................................................................................................................................................... 0.63 0.525

2–4 ............................................................................................................................................................................... 0.77 0.63

4–8 ............................................................................................................................................................................... 1.05 0.91

8–14 ............................................................................................................................................................................. 1.40 1.05

14–20 ........................................................................................................................................................................... 1.75 1.295

20 and above ............................................................................................................................................................... 2.10 1.61

The new schedule will be as follows:

Premium First ten

contracts

Eleven and

above

Accommodation Liquidations ....................................................................................................................................... $0.10 $0.10

Cabinet trades .............................................................................................................................................................. 0.10 0.10

Under $0.50 ................................................................................................................................................................. 0.35 0.28

$0.50–1 ........................................................................................................................................................................ 0.525 0.455

1–2 ............................................................................................................................................................................... 0.63 0.525

2–4 ............................................................................................................................................................................... 0.77 0.63

4–8 ............................................................................................................................................................................... 1.05 0.91

8–14 ............................................................................................................................................................................. 1.25 1.05

14 and above ............................................................................................................................................................... 1.25 1.25
26658 Federal Register / Vol. 63, No. 92 /Wednesday, May 13, 1998 / Notices

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

7 15 U.S.C. 78f(b)(4).

8 15 U.S.C. 78s(b)(3)(A)(ii).

9 17 CFR 240.19b–4(e)(2).

10 In reviewing this proposal, the Commission has

considered the proposed rule change’s impact on

efficiency, competition, and capital formation. 15

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

11 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3See Letter from Stephanie C. Mullins, Attorney,

CBOE to Marianne H. Duffy, Special Counsel,

Division of Market Regulation, SEC, dated April 30,

1998 (‘‘Amendment No. 1’’). Amendment No. 1

clarifies, among other things, that the Index, as

defined above, is narrow-based and will comply

with the generic narrow-based margin requirements

(CBOE Rule 30.53) and position limited

requirements (CBOE Rule 30.35) of the Exchange.

* * * * *

As with the previous schedule,

cabinet trades/accommodation

liquidations, as described in CBOE

Rules 6.54 and 21.15, will continue to

be charged $0.10 per contract. In

addition, as in the previous schedule,

no execution fee will be assessed for

market orders for any index option sent

to the book prior to the opening and

executed during opening rotation. Also,

as before, no execution fee will be

assessed for limit orders in options on

the Standard & Poor’s 100 Index sent to

the book prior to the opening and

executed during opening rotation. The

new fee schedule should reduce the

overall Order Book Official book fees

paid by all Exchange members. The

Exchange believes that the reduction in

the book fees will allow the Exchange to

compete more effectively for business in

these types of products.

The proposed rule change is

consistent with Section 6(b) of the Act,6

in general, and furthers the objectives of

Section 6(b)(4) of the Act 7 in particular,

in that it is designed to provide 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 believes that the

proposed rule change will not result in

any burden on competition that is not

necessary or appropriate in furtherance

of the purposes of the Act.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

Comments were neither solicited nor

received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The proposed rule change establishes

or changes a due, fee, or other charge

imposed by the Exchange and, therefore,

has become effective immediately upon

filing with the Commission, pursuant to

Section 19(b)(3)(A)(ii) of the Act 8 and

subparagraph (e)(2) of Rule 19b–4 9

thereunder. At any time within 60 days

of the filing of the 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

purposes of the Act.

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.10

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

Washington, D.C. 20549. 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 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–98–16 and should be

submitted by June 3, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–12707 Filed 5–12–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39965; International Series

Release No. 1133; File No. SR–CBOE–98–

17]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change,

and Amendment No. 1 Thereto, by the

Chicago Board Options Exchange,

Incorporated Relating To Listing and

Trading Warrants on a Narrow-Based

Index

May 6, 1998.

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 23,

1998, the Chicago Board Options

Exchange, incorporated (‘‘CBOE’’ or

‘‘Exchange’’) filed with the Securities

and Exchange Commission (‘‘SEC’’ or

‘‘Commission’’) the proposed rule

change as described in Items I, II, and

III below, which Items have been

prepared by the CBOE. The Exchange

also submitted an amendment to the

filing dated April 30, 1998.3 The

Commission is publishing this notice to

solicit comments on the proposed rule

change and Amendment No. 1 from

interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The CBOE proposes to list and trade

warrants on an equal dollar-weighted,

narrow-based index (‘‘Index’’),

comprised of 15 to 20 actively traded

common stocks, no more than four of

which will be foreign issued and traded.

The remaining stocks will be listed on

the American Stock Exchange,

Incorporated (‘‘Amex’’), New York Stock

Exchange, Incorporated (‘‘NYSE’’) or

through the facilities of the National

Association of Securities Dealers

Automated Quotation (‘‘Nasdaq’’)

system and are reported national market

system securities (‘‘Nasdaq/NMS’’). The

text of the proposed rule change is

available at the Office of the Secretary,

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 represented

that it did not receive any comments on

the proposed rule change. The text of

those statements may be examined at

the places specified in Item IV below

and is set forth in Sections A, B and C

below.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and the

Statutory Basis for, the Proposed Rule

Change

1. Purpose

The Exchange is permitted to list and

trade stock index warrants under CBOE

Rule 31.5E. The Exchange now is

proposing to list and trade cash-settled,