[Federal Register Volume 63, Number 66 (Tuesday, April 7, 1998)]
[Notices]
[Pages 17038-17039]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9023]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39806; File No. SR-CBOE-98-05]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Board Options
Exchange, Inc., Relating to Disclaimers With Respect to the Use of an
Index Value
March 25, 1998.
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 February 9, 1998, as amended on March 16, 1998,\3\ the Chicago Board
Options Exchange, Incorporated (``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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ On March 16, 1998, the CBOE filed Amendment No. 1 with the
Commission. Amendment No. 1 requested that the Commission treat the
filing as a ``non-controversial'' rule filing pursuant to Rule 19b-
4(e)(6), 17 CFR 240.19b-4(e)(6). Amendment No. 1 also modified the
proposed rule change to clarify that CBOE Rule 24.14 would apply to
certain entities that were not ``reporting authorities'' under
Exchange rules, and made technical changes. See Letter from Timothy
Thompson, Senior Attorney, CBOE, to Joshua Kans, Attorney, Division
of Market Regulation, Commission, dated March 13, 1998.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange hereby proposes to specifically identify Lipper
Analytical Services, Inc. and Salomon Brothers, Inc. as entities
entitled to the protection of the disclaimer set forth in Exchange Rule
24.14.
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 places specified in
Item IV below. The Exchange has prepared summaries, set
[[Page 17039]]
forth in sections A, B, and C below, of the most significant parts of
such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
CBOE Rule 24.1(h) defines a ``reporting authority'' in respect of a
particular index to mean the institution or reporting service
designated by the Exchange as the official source for calculating the
level of the index from the reported prices of the underlying
securities that are the basis of the index and reporting such level.
Currently, the Exchange has designated Lipper Analytical Services, Inc.
as a reporting authority under Interpretation .01 to CBOE Rule 24.1 for
the Lipper Analytical Services, Inc./Salomon Brothers Growth Fund Index
and the Lipper Analytical Services, Inc./Salomon Brothers Growth &
Income Fund Index (``Lipper/Salomon Indexes'').\4\ CBOE Rule 24.14 sets
forth disclaimers of liability applicable to designated reporting
authorities. The Exchange is specifically identifying Lipper Analytical
Services, Inc. and Salomon Brothers, Inc. as entities which are covered
by the disclaimers set forth in CBOE Rule 24.24, Disclaimers, in
respect of the Lipper/Salomon Indexes. Although Salomon Brothers, Inc.
is not the designated reporting authority for the Lipper/Salomon
Indexes, it nonetheless will be included as an entity to which the
disclaimers of the Rule apply because of its part in designing the
Index.
---------------------------------------------------------------------------
\4\ The Exchange received approval from the Commission to list
and trade options on the Lipper Analytical/Salomon Brothers Growth
and Income Fund Indexes. Securities Exchange Act Release No. 39244
(October 15, 1997), 62 FR 55289 (October 23, 1997) (File No. SR-
CBOE-97-25).
---------------------------------------------------------------------------
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 is designed to prevent fraudulent and
manipulative acts and practices and to promote just and equitable
principles of trade.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(6).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE 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
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 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) does not become operative for 30 days from March 16, 1998, the date
on which the filing was amended, and the Exchange 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, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \7\ and
Rule 19b-4(e)(6) thereunder.\8\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(e)(6).
---------------------------------------------------------------------------
At any time within 60 days of the filing of such 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.\9\ 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 Section, 450 Fifth Street,
N.W., Washington, D.C. 20549. Copies of such filing will also be
available for inspection and copying at the principal office of CBOE.
All submissions should refer to File No. SR-CBOE-98-05 and should be
submitted by April 28, 1998.
---------------------------------------------------------------------------
\9\ In reviewing these rules, the Commission has considered the
proposed rule change's impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
For the Commission, by the Division of Market Regulation, pursuant
to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-9023 Filed 4-6-98; 8:45 am]
BILLING CODE 8010-01-M
