[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]
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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