[Federal Register Volume 60, Number 21 (Wednesday, February 1, 1995)]
[Notices]
[Pages 6324-6325]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2384]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35278; File No. SR-CBOE-95-02]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the Chicago Board Options Exchange, Inc. Relating to the
Listing of Long-Term Index Options Series (``LEAPS'') With a Duration
of Up to Sixty Months Until Expiration
January 25, 1995.
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 January 19, 1995, the Chicago Board Options Exchange (``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
Commission is publishing this notice to [[Page 6325]] solicit comments
on the proposed rule change from interested persons.
\1\15 U.S.C. Sec. 78s(b)(1) (1988).
\2\17CFR 240.19b-4 (1991).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CBOE hereby proposes to amend Exchange Rule 24.9 to permit the
listing of long-term index option series (``LEAPS'') with a duration of
up to sixty months (five years). 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 Exchange 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 placed 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 Organizations's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the proposed rule change is to permit the Exchange
to list index LEAPS with a duration of up to sixty months (five
years).\3\ Presently, the Exchange has authority pursuant to CBOE Rule
24.9(b) to list index LEAPS that expire from twelve to thirty-six
months from the time they are listed. The Exchange represents that
there has been increasing member firm and customer interest in longer
term instruments. The Exchange, therefore, is proposing to amend
Exchange Rule 24.9 to permit the listing of index options with up to
sixth months until expiration. In addition, the Exchange proposes to
amend Rule 24.9 to allow for up to ten additional expiration months for
index LEAPS, as opposed to the six additional months currently allowed.
\3\The Exchange withdrew its proposed rule change to list equity
LEAPS with a duration of up to five years. See Securities Exchange
Act Release No. 35032 (November 30, 1994), 59 FR 63149 (December 7,
1994) (notice of File No. SR-CBOE-94-42) and letter from Nancy L.
Nielsen, Assistant Corporate Secretary, CBOE, to Sharon Lawson,
Assistant Director, Office of Market Supervision Division of Market
Regulation, Commission, Dated January 18, 1995.
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The Exchange believes that the proposed rule change is consistent
with Section 6 of the Act, in general, and furthers the objectives of
Section 6(b)(5) of the Act,\4\ in particular, in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and to protect
investors and the public interest.
\4\15 U.S.C. Sec. 78f(b)(5) (1988).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that 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
Written comments on the proposed rule change were neither solicited
nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission will:
(a) By order approve such proposed rule change, or
(b) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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 in the
Commission's Public Reference Section, 450 Fifth Street, NW.,
Washington, DC 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-95-02 and should be
submitted by February 22, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
\5\17 CFR 200.30-3(a)(12) (1994)
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Margaret H. McFarland,
Deputy Secretary,
[FR Doc. 95-2384 Filed 1-31-95; 8:45 am]
BILLING CODE 8010-01-M
