[Federal Register Volume 61, Number 147 (Tuesday, July 30, 1996)]
[Notices]
[Pages 39685-39686]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19295]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37473; File No. SR-CBOE-96-49]
Self-Regulatory Organizations; Proposed Rule Change by Chicago
Board Options Exchange, Incorporated Relating to Permitting Additional
Submissions Following Respondent's Petition for Review
July 23, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934, 15 U.S.C. 78s(b)(1), notice is hereby given that on July 23,
1996, 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.\1\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ The proposal was originally filed with the Commission on
July 11, 1996. The CBOE subsequently submitted Amendment No. 1 to
the filing. This document provides notice of the filing as amended.
Letter from Michael L. Meyer, Schiff, Hardin & Waite, to Katherine
England, Assistant Director, Division of Market Regulation, SEC,
dated July 19, 1996.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Chicago Board Options Exchange, Inc. (``CBOE'' or ``Exchange'')
proposes to amend Exchange Rule 17.10 which governs the review of
Business Conduct Committee (``BCC'') decisions by the Exchange's Board
of Directors (``Board''). The proposed amendment would formalize in
Rule 17.10 the current practice whereby the Board has permitted one
additional submission by both Exchange staff and Respondent following
Respondent's petition for review and clarifies with which office of the
Exchange the petition for review should be filed.
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 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 parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the proposed change to Exchange Rule 17.10 is to
formalize in the Rule the current practice whereby the Board has
permitted one additional submission by both Exchange staff and
Respondent following Respondent's petition for review. Presently, the
Rule does not provide for any subsequent submissions following a
Respondent's appeal of a BCC decision to the Board. The proposed
amendment would provide that, after a Respondent appeals a BCC decision
to the Board, Exchange staff may submit a written response to which the
Respondent may submit a reply. The proposal also clarifies with which
office of the Exchange the Respondent's petition should be filed.
By eliminating the need for the staff to request approval prior to
the submission of every response, the proposal will reduce the amount
of time the Board spends on administrative matters. In addition, the
Exchange believes the proposal will ensure a more thorough and fair
process because each party will have an opportunity to clarify its
position to the Board on the specific issues of contention addressed in
the petition for review. Additionally, the proposal will, as is the
case under the current rules, ensure that the Respondent ordinarily
will have the opportunity to make the final submission to the Board.
The proposal requires the Exchange staff's response be filed within
15 days of the date the Respondent's request for review is filed with
the Secretary of the Exchange, and the Respondent's reply to be filed
within 15 days of service of staff's response.
By clarifying with which office of the Exchange the petition for
review should be filed and by formalizing the current appeal practice
to ensure that both parties have the opportunity to make an additional
submission to the Board, the proposed rule change will make the review
process more fair and efficient. Therefore, the rule change is
consistent with Section 6 of the Securities Exchange Act of 1934, in
general, and Section 6(b)(7) in particular in that it provides a fair
procedure for the disciplining of members and persons associated with
members.
B. Self-Regulatory Organization's Statement on Burden on Competition
The 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 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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Committee will:
(A) By order approve such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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, 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 Room. 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.
[[Page 39686]]
SR-CBOE-96-49 and should be submitted by August 20, 1996.
For the Commission, by the Division of Market Regulation,
pursuant to the delegated authority, 17 CFR 200.30-3(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-19295 Filed 7-29-96; 8:45 am]
BILLING CODE 8010-01-M
