[Federal Register Volume 61, Number 124 (Wednesday, June 26, 1996)]
[Notices]
[Pages 33155-33156]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16292]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37342; File No. SR-CBOE-96-34]


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

June 20, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on June 3, 
1996, the Chicago Board Options Exchange, Inc. (``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 self-
regulatory organization. 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 hereby gives notice that it is proposing to amend and/or 
establish certain Exchange fees relating to a replacement pager system.

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 self-regulatory organization 
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 self-regulatory organization 
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 purpose of this proposed rule change is to amend and/or 
establish various pager fees in light of the Exchange's replacement of 
an existing, Exchange-owned and -operated pager system (``existing 
system'') with a new pager system (``new system''). The Exchange will 
also own and operate the new system equipment. The new system will 
require members who desire pagers to own and use new pager units. 
Members may either trade in existing units and receive new units for a 
trade-in fee of $75.00, which is less than the cost of new pagers, or 
buy new pagers outright at the Exchange's then-current cost (the 
Exchange's cost currently is $275.00). There will not be a leasing 
option under the new system as there was under the existing system. The 
fee changes are being implemented by the Exchange pursuant to CBOE Rule 
2.22 and will take effect at or about the time the new system becomes 
operational, expected to be later in 1996.
    The Exchange will assess an annual maintenance fee under the new 
system, as it did under the old system. The maintenance fee of $80.00 
per year will cover maintenance of the member-owned pagers as well as 
new system maintenance expenses to ensure that the new system's head-
end equipment properly delivers signals to the members' pagers.
    Upon receipt from the Federal Communications Commission of a 
license to use the new system's desired frequency, the Exchange will 
implement the new system fees by issuing a regulatory circular to the 
membership.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act, in general, and furthers the objectives of Section 6(b)(4) of the 
Act in particular, in that it is designed to provided for the equitable 
allocation of reasonable dues, fees and other charges among CBOE 
members.

B. Self-Regulatory Organization's Statement on Burden on Competition

    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 Purposed 
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 establishes or changes a due, fee, or 
other charge imposed by the Exchange and therefore has become effective 
pursuant to Section 19(b)(3)(A) of the Act and subparagraph (e) of Rule 
19b-4 thereunder. At any time within 60 days of the filing of such 
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. 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 5 U.S.C. Sec. 552, will be available for inspection and copying at 
the Commission's Public Reference Section, 450 Fifth Street, N.W., 
Washington, D.C 20549. 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-96-34 and should be 
submitted by July 17, 1996.


[[Page 33156]]


    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-16292 Filed 6-25-96; 8:45 am]
BILLING CODE 8010-01-M