[Federal Register Volume 59, Number 138 (Wednesday, July 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-17662]
[[Page Unknown]]
[Federal Register: July 20, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34374; File No. SR-CBOE-94-23]
Self-Regulatory Organizations; The Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to a Fee Reduction Plan
July 14, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on July 7, 1994, the Chicago
Board Options Exchange, Incorporated (the ``CBOE'' or the ``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) (1988).
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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 its fee reduction plan, which has been
in effect since July 1, 1992.
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 Organizations's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the proposed rule change is to amend the Exchange's
fee reduction plan. The plan, which was initially adopted on July 1,
1992 and subsequently amended in July 1993, provides that if Exchange
volume levels exceed a pre-determined threshold at the end of any
fiscal quarter, specified fees will be reduced the following quarter in
accordance with the schedule. The proposed amendments are the product
of the Exchange's annual budget review and are structured to
accommodate the capital needs of the Exchange for the coming year. The
amendments will take effect for the new fiscal year commencing July 1,
1994.
The proposed rule change amends the current fee reduction
thresholds and amounts. The minimum threshold for a fee reduction is
raised from 525,000 to 550,000 year to date contract volume. The
reduction in the market-maker fees has been lowered $.05 to $.10 for
five of the eight thresholds. The member dues fee reduction of 25% to
100% is given at higher thresholds. The proposed rule change also
replaces the trade match fee reduction schedule with a fee reduction
schedule for floor brokerage fees.\2\ In all other respects, the fee
reduction program remains unchanged.
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\2\The floor broker fee is reduced $.05 for 600,000 to 625,000
year to date contract volume, and is reduced $.10 for 650,000 to
700,000 year to date contract volume.
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The proposed rule change is consistent with Section 6(b) of the Act
in general, and Section 6(b)(4) in particular, by providing for the
equitable allocation among CBOE members of reasonable dues, fees, and
charges.\3\
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\3\15 U.S.C. 78f(b)(4) (1988).
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B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE does not believes that the proposed rule change imposes any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Comments on the proposed rule change have not been solicited or
received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act and subparagraph (e)(2) of Securities
Exchange Act Rule 19b-4 in that the proposed rule change establishes or
changes a due, fee, or other charge imposed by the Exchange. At any
time within sixty 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 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, N.W.,
Washington, DC 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 number SR-CBOE-94-23 and should be submitted by
August 10, 1994.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-17662 Filed 7-19-94; 8:45 am]
BILLING CODE 8010-01-M
