96-16292. Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Chicago Board Options Exchange, Inc. Relating to Pager Fees  

  • [Federal Register Volume 61, Number 124 (Wednesday, June 26, 1996)]
    [Notices]
    [Pages 33155-33156]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-16292]
    
    
    
    -----------------------------------------------------------------------
    
    SECURITIES AND EXCHANGE COMMISSION
    [Release No. 34-37342; File No. SR-CBOE-96-34]
    
    
    Self-Regulatory Organizations; Notice of Filing and Immediate 
    Effectiveness of Proposed Rule Change by the Chicago Board Options 
    Exchange, Inc. Relating to Pager Fees
    
    June 20, 1996.
        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 June 3, 
    1996, the Chicago Board Options Exchange, Inc. (``CBOE'' or 
    ``Exchange'') filed with the Securities and Exchange Commission 
    (``Commission'' or ``SEC'') 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 hereby gives notice that it is proposing to amend and/or 
    establish certain Exchange fees relating to a replacement pager system.
    
    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 self-regulatory organization 
    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 self-regulatory organization 
    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
    
    1. Purpose
        The purpose of this proposed rule change is to amend and/or 
    establish various pager fees in light of the Exchange's replacement of 
    an existing, Exchange-owned and -operated pager system (``existing 
    system'') with a new pager system (``new system''). The Exchange will 
    also own and operate the new system equipment. The new system will 
    require members who desire pagers to own and use new pager units. 
    Members may either trade in existing units and receive new units for a 
    trade-in fee of $75.00, which is less than the cost of new pagers, or 
    buy new pagers outright at the Exchange's then-current cost (the 
    Exchange's cost currently is $275.00). There will not be a leasing 
    option under the new system as there was under the existing system. The 
    fee changes are being implemented by the Exchange pursuant to CBOE Rule 
    2.22 and will take effect at or about the time the new system becomes 
    operational, expected to be later in 1996.
        The Exchange will assess an annual maintenance fee under the new 
    system, as it did under the old system. The maintenance fee of $80.00 
    per year will cover maintenance of the member-owned pagers as well as 
    new system maintenance expenses to ensure that the new system's head-
    end equipment properly delivers signals to the members' pagers.
        Upon receipt from the Federal Communications Commission of a 
    license to use the new system's desired frequency, the Exchange will 
    implement the new system fees by issuing a regulatory circular to the 
    membership.
    2. Statutory Basis
        The proposed rule change is consistent with Section 6(b) of the 
    Act, in general, and furthers the objectives of Section 6(b)(4) of the 
    Act in particular, in that it is designed to provided for the equitable 
    allocation of reasonable dues, fees and other charges among CBOE 
    members.
    
    B. Self-Regulatory Organization's Statement on Burden on Competition
    
        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 Purposed 
    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
    
        The foregoing rule change establishes or changes a due, fee, or 
    other charge imposed by the Exchange and therefore has become effective 
    pursuant to Section 19(b)(3)(A) of the Act and subparagraph (e) of Rule 
    19b-4 thereunder. At any time within 60 days of the filing of such 
    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, 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. Sec. 552, will be available for inspection and copying at 
    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 the CBOE. All 
    submissions should refer to File No. SR-CBOE-96-34 and should be 
    submitted by July 17, 1996.
    
    
    [[Page 33156]]
    
    
        For the Commission, by the Division of Market Regulation, 
    pursuant to delegated authority.
    Margaret H. McFarland,
    Deputy Secretary.
    [FR Doc. 96-16292 Filed 6-25-96; 8:45 am]
    BILLING CODE 8010-01-M
    
    

Document Information

Published:
06/26/1996
Department:
Securities and Exchange Commission
Entry Type:
Notice
Document Number:
96-16292
Pages:
33155-33156 (2 pages)
Docket Numbers:
Release No. 34-37342, File No. SR-CBOE-96-34
PDF File:
96-16292.pdf