[Federal Register Volume 63, Number 145 (Wednesday, July 29, 1998)]
[Notices]
[Pages 40574-40575]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-20190]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40250; File No. SR-CBOE-98-28]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change, and Notice of Filing and Order
Granting Partial Accelerated Approval of Proposed Rule Change by the
Chicago Board Options Exchange, Inc., Relating to Exchange Fees
July 22, 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 June 24, 1998,\3\ 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 and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice and order to solicit comments on
the proposed rule change from interested persons and to grant partial
accelerated approval of the fees relating to non-members.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ The Exchange filed Amendment Nos. 1 and Amendment No. 2 to
the proposed rule change on July 14, 1998, and July 15, 1998,
respectively. See Letter from Stephanie C. Mullins, Attorney, CBOE,
to Heather Seidel, Attorney, Division of Market Regulation
(``Division''), Commission, dated July 13, 1998 (``Amendment No.
1''); and Letter from Stephanie C. Mullins, Attorney, CBOE to Kelly
McCormick, Attorney, Division, Commission, dated July 14, 1998
(``Amendment No. 2''). Amendment No. 1 amends the part of the filing
relating to fees charged to non-members to request the Commission's
approval pursuant to Section 19(b)(2) under the Act, and to ask for
accelerated approval for that portion of the filing. In Amendment
No. 2, the Exchange explained the procedure for informing its
membership and the affected non-members of the proposed rule change.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The CBOE is proposing to change the subscription fee structure for
the Exchange Bulletin by adding a fee for a new alternative of
receiving the Bulletin via e-mail.
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 the
Statutory Basis for, Proposed Rule Change
1. Purpose
The Exchange proposes to change the subscription fee structure for
members and non-members receiving the Exchange Bulletin, and provide
for the option of obtaining the Bulletin via e-mail. The proposed
change would be effective beginning July 1, 1998, for members. For non-
members the fees would be effective upon the date the Commission
approves that portion of the proposal. Currently, one hard copy of the
Bulletin is provided free of charge to all effective members, and each
additional copy is $100.00. For non-members, the Bulletin subscription
fee is $100.00 for each hard copy. The Exchange proposes to give the
option of subscribing to the Bulletin via e-mail over the Internet to
both members and non-members. Under the proposed changes a member's
first copy (whether hard copy or via e-mail) will be free of charge,
and each additional copy via e-mail delivery would be $50.00. The fee
to non-members for e-mail delivery will be $50.00 for each copy.
2. Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Act,\4\ in general, and furthers the objectives of
Section 6(b)(4) of the Act \5\ in particular, in that it is designed to
provide for the equitable allocation of reasonable dues, fees, and
other charges among CBOE members and others using the Exchange's
facilities.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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
Because the foregoing rule change establishes or changes a due,
fee, or other charge, for members,\6\ imposed by the Exchange, the
change effecting members has become effective as of July 1, 1998,
pursuant to Section 19(b)(3)(A) of the Act \7\ and subparagraph (e)(2)
of Rule 19b-4 thereunder.\8\ At any time within 60 days of the filing
of the proposed rule change, affecting members, 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.
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\6\ The proposed rule change also amends fees charged to non-
members for delivery of the Exchange Bulletin. The portion of this
proposed ruled change that affects non-members has been filed
pursuant to Section 19(b)(2) of the Act and the Commission is
granting partial accelerated approval for that part of the filing.
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(e)(2).
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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
[[Page 40575]]
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 U.S.C. 552, will be
available for inspection and copying in the Commission's Public
Reference Room, 450 Fifth Street, NW, 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 the File No.
SR-CBOE-98-28 and should be submitted by August 19, 1998.
V. Commission's Findings and Order Granting Partial Accelerated
Approval of the Proposed Rule Change
The Commission finds that the Exchange's proposal to provide the
option of obtaining the Exchange Bulletin via e-mail to non-members at
a cost of $50.00 per copy is consistent with the requirements of the
Act and the rules and regulations thereunder applicable to a national
securities exchange. Specifically, the Commission finds that the
proposed rule change is consistent with Section 6(b)(4) of the Act \9\
in that it provides for the equitable allocation of reasonable dues,
fees and other charges among its members, issuers and other persons
using its facilities.
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\9\ 15 U.S.C. 78f(b)(4).
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The Commission finds good cause for approving the proposed rule
change prior to the thirtieth day after the date of publication of
notice of the filing in the Federal Register. The Commission believes
that accelerated approval of the proposal is appropriate because the
Exchange is merely adding an alternative method for non-members to
receive the Exchange Bulletin that will facilitate access to the
Bulletin by both members and non-members at a cost less than the
current fee for a hard copy of the Exchange Bulletin.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\10\ that the proposed rule change relating to non-members, is hereby
partially approved on an accelerated basis.
\10\ 15 U.S.C. 78s(b)(2).
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-20190 Filed 7-28-98; 8:45 am]
BILLING CODE 8010-01-M
