[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
