[Federal Register Volume 60, Number 159 (Thursday, August 17, 1995)]
[Notices]
[Pages 42928-42929]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20402]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36086; File No. SR-CBOE-95-35]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Board Options
Exchange, Inc. Relating to the Identification of Accounts and the
Reporting of Orders for Chapter XXX Securities
August 10, 1995.
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 12,
1995, 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. 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 proposes to amend Rule 8.9 (``Securities Accounts and
Orders of Market-Makers''), to require market-makers to identify
accounts and report orders in securities traded pursuant to Chapter XXX
of the Exchange's Rules. Currently, Rule 8.9 does not explicitly
include securities traded on the Exchange pursuant to Chapter XXX.
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 aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of this rule proposal is to amend Rule 8.9, which
governs the identification of certain accounts and the reporting of
certain types of orders by market-makers, by explicitly incorporating
securities traded pursuant to Chapter XXX of the Exchange's rules.
Chapter XXX of the Exchange's rules governs the trading of warrants,
stock, and other non-option securities. Pursuant to the Introductory
paragraph to Chapter XXX and Appendix A of Chapter XXX (which specifies
the Exchange rules outside of Chapter XXX which apply to the trading of
stock, warrants, and other Chapter XXX securities), Rule 8.9 already
applies to these securities. The Exchange believes, however, that it is
appropriate to make the application of Rule 8.9 explicit on the face of
the Rule.
The proposed amendment to paragraph (a) of Rule 8.9 expressly
requires market-makers to identify accounts for securities traded
pursuant to Chapter XXX of the Exchange's Rules in which they exercise
trading activities or exercise investment discretion. The proposed
amendment to paragraph (b) of Rule 8.9 expressly requires market-makers
to report orders in Chapter XXX securities and to report closing and
opening positions in Chapter XXX securities.
The Exchange believes it is appropriate to make this change in Rule
8.9 to avoid confusion between the plain language of the Rule which
does not mention Chapter XXX securities, and the incorporation of the
Rule to Chapter XXX securities, which incorporation is made in the
Introductory paragraph to Chapter XXX and Appendix A to Chapter XXX.
The information required by Rule 8.9 is an important asset to the
Exchange's Department of Market Surveillance because it is used to
detect manipulation and other trading abuses.
The CBOE believes that the proposed rule change is consistent with
Section 6 of the Act, in general, and Section 6(b)(5), in particular,
in that making explicit the requirement to provide detailed information
concerning Chapter XXX securities is designed to prevent fraudulent and
manipulative
[[Page 42929]]
acts and practices, to promote just and equitable principles of trade,
and to protect investors and the public interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE does not believe that the proposed rule change will impose any
inappropriate 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
The rule change described herein is designated by the Exchange as
constituting a stated policy, practice or interpretation with respect
to the meaning, administration or enforcement of an existing rule of
the Exchange and therefore, has become effective immediately pursuant
to Section 19(b)(3)(A) of the Act and Rule 19b-4(e) 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. 552, will be available for inspection and copying in 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 CBOE. All
submissions should refer to File No. SR-CBOE-95-35 and should be
submitted by September 7, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\1\
\1\ 17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-20402 Filed 8-16-95; 8:45 am]
BILLING CODE 8010-01-M
