[Federal Register Volume 63, Number 22 (Tuesday, February 3, 1998)]
[Notices]
[Pages 5584-5585]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-2525]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39585; File No. SR-CBOE-98-02]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change By Chicago Board Options Exchange, Inc. To Limit Number of
Consecutive Terms Executive Committee Chairman May Serve
January 27, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on January 16, 1998, 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 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CBOE proposes to amend Section 8.1(a) of the Exchange
Constitution to limit the number of consecutive terms that may be
served by the Chairman of the Executive Committee. 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
The purpose of the proposed amendment to Section 8.1 of the CBOE's
Constitution is to limit the number of terms that may be served by the
Chairman of the Executive Committee, who also serves as the Vice
Chairman of the Exchange. Section 7.2 of the CBOE Constitution provides
the Executive Committee members are elected for a term of one year.
Currently, Section 8.1 of the CBOE's Constitution does not provide for
any limit to the number of terns a Vice Chairman may serve. The CBOE is
proposing to amend Section 8.1 to provide that the same person may be
elected to the office of Vice Chairman up to three consecutive one year
terms. For purposes of this limit, a combination of at lease six months
of a one-year term plus the next two one-year terms is considered to be
three consecutive one-year terms. A person becomes eligible to serve as
Vice Chairman again, once that person has been out of that office for a
period of six months or more.
The purpose of the proposed amendment to impose term limits on the
office of the Vice Chairman is to ensure a diversity of experience and
ideas in this strategic position of the Exchange. The proposed term
limit will apply to the Vice Chairman in office at the time this rule
change becomes effective and will take account any prior terms served
by that person.
By amending the constitution to impose term limits on the office of
Vice Chairman, the Exchange will ensure that the office of Vice
Chairman will be dynamic and will present the Exchange with fresh
ideas. Therefore, the rule change is consistent with Section 6 of the
Act, in general, and Section 6(b)(5), in particular, in that it
promotes just and equitable principles of trade, fosters cooperation
among persons engaged in facilitating securities transactions, and
protects investors and the public interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
The 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 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
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 self-regulatory
[[Page 5585]]
organization 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, including whether the proposed rule
change is consistent with the Act. 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. 552, will be available for inspection and copying in the
Commission's Public Reference Room. Copies of such filing will also be
available for inspection and copying at the principal office of the
CBOE. All submissions should refer to the File No. SR-CBOE-98-02 and
should be submitted by February 24, 1998.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\2\
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\2\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-2525 Filed 2-2-98; 8:45 am]
BILLING CODE 8010-01-M
