[Federal Register Volume 60, Number 229 (Wednesday, November 29, 1995)]
[Notices]
[Pages 61274-61275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-29148]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36499; File No. SR-CBOE-95-55]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Board Options
Exchange, Inc. Relating to Minor Rule Changes Applicable to Stock
Index, Currency, and Currency Index Warrants
November 21, 1995.
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 October
11, 1995, 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 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 proposes to make minor technical changes to its uniform
listing and trading guidelines for stock index, currency, and currency
index warrants. 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
On August 29, 1995, the Commission approved the Exchange's uniform
listing and trading guidelines for stock index, currency, and currency
index warrants.\1\ The Exchange now proposes to make minor technical
changes to these rules.
\1\See Securities Exchange Act Release No. 36169 (Aug. 29,
1995), 60 FR 46644 (Sept. 7, 1995).
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Under the proposal, the Exchange proposes to add a provision to
CBOE Rule 30.53 that will permit customers to use a ``letter of
guarantee'' to cover a short put position in an index warrant. In
general, the letter of guarantee will permit a customer to cover a
short index warrant position with cash or cash equivalents in an amount
equal to the aggregate exercise price of the put warrant contract. The
letter of guarantee must be issued by a bank in accordance with the
proposed rule and in a form satisfactory to the Exchange. In addition,
the proposal also makes other minor, non-substantive textual changes
applicable to Rule 30.53.
Finally, the Exchange proposes to add the term ``securities
association'' to rule 30.35(b), Exercise Limits, to ensure that a CBOE
member's customer transactions in warrants issued on Nasdaq will be
brought within the CBOE's jurisdiction for exercise limit purposes when
the NASD does not have member jurisdiction over the CBOE member.
The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Act in general and furthers the objectives of
Section 6(b)(5) in particular in that it is designed to prevent
fraudulent and manipulative acts and practices and to promote just and
equitable principles of trade, and is not designed to permit unfair
discrimination between customers, issuers, brokers and dealers.
[[Page 61275]]
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe the proposed rule change will impose
any inappropriate burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
(3) was provided to the Commission for its review at least five
business days prior to the filing date; and (4) does not become
operative for 30 days from October 11, 1995, the rule change proposal
has become effective pursuant to Section 19(b)(3)(A) of the Act and
Rule 19b-4(e)(6) thereunder. In particular, the Commission believes the
proposal qualifies as a ``noncontroversial filing'' in that the
proposed amendments do not significantly affect the protection of
investors or the public interest and do not impose any significant
burden on competition. 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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 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. 552, will be available for inspection and copying at the
Commission's Public Reference Section, 450 Fifth Street, NW.,
Washington, DC 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-95-55 and should be
submitted by December 20, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\2\
\2\17 CFR 200.30-3(a)(12) (1944).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-29148 Filed 11-28-95; 8:45 am]
BILLING CODE 8010-01-M
