Document ID: SEC-2005-0029-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Chicago Board Options Exchange, Inc.
Posted Date: 2005-09-28T04:00Z

[Federal Register: September 28, 2005 (Volume 70, Number 187)]
[Notices]               
[Page 56754-56755]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28se05-204]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52476; File No. SR-CBOE-2005-67]

 
Self-Regulatory Organizations; Chicago Board Options Exchange, 
Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change To Revise an Administrative CBOE Membership Rule

September 20, 2005.
    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 September 2, 2005, 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 CBOE. 
The Exchange has filed the proposal as a ``non-controversial'' rule 
change pursuant to Section 19(b)(3)(A) of the Act,\3\ and Rule 19b-
4(f)(6) thereunder,\4\ which renders the proposal effective upon filing 
with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to make a change to an administrative CBOE 
membership rule. The text of the proposed rule change is below. 
Proposed new language is in italics.
* * * * *

Chicago Board Options Exchange, Incorporated

* * * * *
Rule 3.23 Integrated Billing System
    Every member, other than members that are approved to act solely as 
lessors, must designate a Clearing Member for the payment of the 
member's Exchange invoices by means of the Exchange's integrated 
billing system (``IBS''). The designated Clearing Member shall pay to 
the Exchange on a timely basis any amount that is not disputed pursuant 
to IBS procedures by the member who is directly involved. Such payments 
shall be drafted by the Exchange against the designated Clearing 
Member's account at the Clearing Corporation. The Clearing Corporation 
shall have no liability in connection with its forwarding to the 
Exchange each month a check representing the total amount that the 
Exchange advises the Clearing Corporation is owed to the Exchange.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, CBOE included statements 
concerning the purpose of and basis for the

[[Page 56755]]

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 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
    CBOE is revising CBOE Rule 3.23--Integrated Billing System, which 
requires all members to designate a CBOE Clearing Member for the 
payment of CBOE invoices. The proposed rule change exempts from the 
CBOE Rule 3.23 requirements those members that are approved to act 
solely as lessors. Members that are approved to act solely as lessors 
have no trading functions on the Exchange (e.g., approved to act as a 
Market-Maker or Floor Broker) and conduct no activities that would 
necessitate the designation of a CBOE Clearing Member for the payment 
of CBOE invoices. Going forward, CBOE will bill any fees owed by 
members that are approved to act solely as lessors on a manual basis.
2. Statutory Basis
    The proposed rule change is comprised of an administrative 
membership rule change that is designed to facilitate Exchange 
operations and therefore the Exchange believes the proposed rule change 
is consistent with Section 6(b) of the Act \5\ in general, and furthers 
the objectives of Section 6(b)(5) \6\ in particular, in that it should 
promote just and equitable principles of trade, serve to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and protect investors and the public 
interest.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    This proposed rule change does not impose 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

    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

    Because the foregoing rule change: (1) Does not significantly 
affect the protection of investors or the public interest; (2) does not 
impose any significant burden on competition; and (3) does not become 
operative for 30 days from the date on which it was filed, or such 
shorter time as the Commission may designate if consistent with the 
protection of investors and the public interest, the proposed rule 
change has become effective pursuant to Section 19(b)(3)(A) of the Act 
\7\ and Rule 19b-4(f)(6) thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6). As required by Rule 19b-4(f)(6)(ii), 
the Exchange has provided the Commission with written notice of its 
intent to file the proposed rule change at least five business days 
prior to the filing date of this proposal.
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    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, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
; or     Send an e-mail to rule-comments@sec.gov. Please include 

File Number SR-CBOE-2005-67 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-9303.
    All submissions should refer to File Number SR-CBOE-2005-67. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). 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 the 
filing also will be available for inspection and copying at the 
principal offices of the CBOE. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-CBOE-2005-67 and should be submitted on or before 
October 19, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
 [FR Doc. E5-5245 Filed 9-27-05; 8:45 am]

BILLING CODE 8010-01-P