[Federal Register Volume 64, Number 163 (Tuesday, August 24, 1999)]
[Notices]
[Pages 46220-46221]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-21866]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41746; File No. SR-CBOE-99-41]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Board Options
Exchange, Inc. Relating to the Market-Maker Surcharge Fee Schedule
August 16, 1999.
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 July 30, 1999, 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, II,
and III below, which Items have been prepared by the CBOE. On August 3,
1999, the CBOE filed with the Commission Amendment No. 1 to the
proposed rule change.\3\ The Commission is publishing this notice to
solicit comments on the proposed rule change, as amended, from
interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1, notes that General Dynamics options became
multiply-listed on August 2, 1999, and proposes that the surcharge
take effect on that date. See letter from Stephanie Mullins,
Attorney, CBOE, to Michael Walinskas, Associate Director, Division
of Market Regulation, Commission, dated August 2, 1999 (``Amendment
No. 1'').
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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 make changes to its fee schedule pursuant
to CBOE Rule 2.40, Market-Maker Surcharge for Brokerage.\4\
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\4\ See Securities Exchange Act Release No. 41121 (February 26,
1999), 64 FR 11523 (March 9, 1999) (order approving CBOE Rule 2.40).
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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 purposed 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
1. Purpose
Pursuant to CBOE Rule 2.40, the Equity Floor Procedure Committee
(``Committee'') approved the following fees for the following option
classes:
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Order book
Market-maker official brokerage
Option class surcharge (per rate (per
contract) contract) \5\
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General Dynamics Corporation $0.07 $0.00
(GD)...........................
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\5\ The surcharge will be used to reimburse the Exchange for the
reduction in the Order Book Official brokerage rate from $0.20 in the
relevant option classes. Any remaining funds will be paid to
Stationary Floor Brokers as provided in Exchange Rule 2.40.
The fee will be effective as of August 2, 1999.\6\ This fee will
remain in effect until such time as the Committee or the Board
determines to change these fees and files the appropriate rule change
with the Commission.
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\6\ See Amendnent No. 1.
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b)(4) \7\ of the Act because it is designed to provide for
the equitable allocation of reasonable dues, fees, and other charges
among its members.
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\7\ 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
[[Page 46221]]
any burden on competition that is 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
Written comments on the proposed rule change were neither solicited
nor received.
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 imposed by the Exchange and, therefore, has become effective
pursuant to Section 19(b)(3)(A)(ii) \8\ of the Act and subparagraph
(f)(2) of Rule 19b-4 thereunder.\9\ At any time within 60 days of the
filing of the proposed rule change,\10\ 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.\11\
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\8\ 15 U.S.C. 78s(b)(3)(A)(ii)
\9\ 17 CFR 240.19b-4(f)(2).
\10\ The proposed rule change is deemed filed as of the date
Amendment No. 1 was received by the Commission.
\11\ In reviewing this proposal, the Commission has considered
the proposal's impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
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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 Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609.
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 at the
Commission's Public Reference Room. Copies of such filing also will be
available for inspection and copying at the principal office of the
CBOE. All submissions should refer to File No. SR-CBOE-99-41 and should
be submitted by September 14, 1999.
For the commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-21866 Filed 8-23-99; 8:45 am]
BILLING CODE 8010-01-M
