[Federal Register Volume 60, Number 186 (Tuesday, September 26, 1995)]
[Notices]
[Pages 49654-49658]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23758]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-26253; International Series Release No. 856; File No.
SR-CBOE-95-41]
Self-Regulatory Organizations; Order Granting Accelerated
Approval of a Proposed Rule Change and Notice of Filing and Order
Granting Accelerated Approval of Amendment Nos. 1, 2, and 3 to the
Proposed Rule Change by the Chicago Board Options Exchange,
Incorporated, Relating to Warrants on the Japanese Export Stock Index
September 19, 1995.
I. Introduction
On August 7, 1995, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or ``Exchange'') filed a proposed rule change with the
Securities and Exchange Commission (``SEC'' or ``Commission''),
pursuant to Section 19(b)(1) of the Securities
[[Page 49655]]
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ to
list and trade warrants on the Japanese Export Stock Index (``Japan
Export Index'' or ``Index'').
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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Notice of the proposal was published for comment and appeared in
the Federal Register on August 28, 1995.\3\ On September 14, 1995, the
Exchange filed Amendment No. 1 to the proposed rule change.\4\ On
September 15, 1995, the Exchange filed Amendment No. 2 to the proposed
rule change.\5\ On September 19, 1995, the Exchange file Amendment No.
3 to the proposed rule change.\6\ No comment letters were received on
the proposed rule change. This order approves the Exchange's proposal,
as amended, on an accelerated basis.
\3\ See Securities Exchange Act Release No. 36128 (August 21,
1995), 60 FR 44529 (``Release No. 36128'').
\4\ See Letter from Joe Levin, Vice President, Research
Department, CBOE, to John Ayanian, Attorney, Office of Market
Supervision (``OMS''), Division of Market Regulation (``Market
Regulation''), Commission, dated September 14, 1995 (``Amendment No.
1''). In Amendment No. 1, the CBOE represents that the Japan Export
Index value was set equal to 100 on March 31, 1984, the base date.
As of September 13, 1995 the value of the Index was 206.56.
Additionally, the CBOE represents that the Index will be re-balanced
annually as of the last trading day of last trading day of the
calendar year, and not at the time of the initial issuance of the
warrants. The CBOE further proposes that the initial offering price
for the warrants will be based on an index around the time of
issuance.
\5\ See Letter from Eileen Smith, Director, Research & Product
Development, CBOE, to John Ayanian, Attorney, OMS, Market
Regulation, Commission, dated September 19, 1995 (``Amendment No.
2''). In Amendment No. 2 the CBOE outlines several additional
procedures regarding Index calculation, dissemination, and
maintenance.
\6\ See Letter from Eileen Smith, Director, Research & Product
Development, CBOE, to John Ayanian, Attorney, OMS, Market
Regulation, Commission, dated September 19, 1995 (``Amendment No.
3''). Amendment No. 3 to CBOE's proposal states that the CBOE will
monitor the weighings of the components of the Japan Export Index
and if at any time the top 5 stocks account for more than 33\1/3\%
of the total wright of the Index, CBOE will re-balance the Index
within the next thirty calendar days.
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II. Description of the Proposal
The Exchange represents that it is permitted to list and trade
index warrants under CBOE Rule 31.5E. The Exchange is now proposing to
list and trade index warrants based upon the Japan Export Index.
A. Composition of the Index
The Japan Export Index was designed by CBOE. The CBOE represents
that Index component stocks were selected for their high market
capitalizations, and their high degree of liquidity, and are
representative of the relative distribution of companies within
Japanese export industries. The Index is composed of 40 of the largest
Japanese export companies, as measured by yen-denominated export
revenue, listed on the Tokyo Stock Exchange (``TSE'').
Business sector representation in the Index as of June 30, 1995,
was as follows: (1) Autos and auto parts (25%) (10 issues); (2)
Electric Machinery--diversified (22.5%) (9 issues); (3) Consumer
Electronics (20%) (8 issues); (4) Iron and Steel (7.50%) (3 issues);
(5) Precision instruments (7.5%) (3 issues); (6) Shipbuilding (5%) (2
issues); (7) Chemical (5%) (2 issues); (8) Machinery (2.5%) (1 issue);
(9) Computers and semiconductors (2.5%) (1 issue); and (10) Services
(2.5% (1 issue).
As of June 30, 1995, the CBOE represents that the 40 stocks
contained in the Index range in market capitalization from $1.59
billion to $74.76 billion. The median capitalization of the component
securities in the Index was $7.6 billion. Total market capitalization
for the Index was approximately $451 billion.\7\ In addition, the
average daily trading volume of the stocks in the Index, for the six-
month period ending June 30, 1995, ranged from a high of 6,640,000
shares to a low of 102,220 shares, with a mean and median of
approximately 1,440,000 and 844,000 shares, respectively.
\7\ Based on the exchange rate of 85 yen/US$ 1 prevailing on
June 30, 1995.
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B. Calculation and Dissemination of the Index Value
The Japan Export Index is an ``equal dollar weighted'' broad-based
index comprising 40 of the largest Japanese export companies, and
measured by total yen-denominated export revenue, listed on the
TSE.8 The Index is calculated using an ``equal dollar weighting''
methodology designed to ensure that each of the component securities is
represented in an approximately ``equal'' dollar amount in the Index at
each rebalancing. The Index value was set equal to 100 on March 31,
1984. As of September 13, 1995 the value of the Index was 206.56.\9\ In
the event that a security does not trade on a given day, the previous
day's last sale price is used for purposes of calculating the Index. In
the event that a given security has not traded for more than one day,
then the last sale price on the last day on which the security was
traded will be used.
\8\ The components of the Index are as follows: Aiwa;
Bridgestone Corp.; Canon; Casio Computer; Citizen Watch; Fuji Heavy
Inds.; Fuji Photo Film; Hitachi; Honda Motor; Isuzu Motor; Kawasaki
Heavy Ind.; Kawasaki Steel; Komatsu Ltd.; Konica Corp.; Kyocera
Corp.; Kyushu Matsushita; Matsu-Kotob Eltr.; Matsushita Elect I;
Mazda Motor; Mitsubishi Heavy; Mitsubishi Motors; NEC; Nikon Corp.;
Nintendo; Nippon Steel; Nissan Motor; OKI Electric Ind.; Pioneer
Eltr.; Ricoh Co. Ltd.; Sanyo Electric; Sega Enterprises; Sharp
Corp.; Sony; Sumitomo Mtl. Ind.; Suzuki Motor; TDK Corporation;
Toshiba; Toyota Motor; Victor Co. of Japan; and Yamaha Motor.
\9\ See Amendment No. 1, Supra note 4. The initial offering
price for the warrants will be based on an index level as of the
date and time of issuance.
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Because trading does not occur on the TSE during the CBOE's trading
hours, the daily dissemination of the Index value is calculated by the
CBOE once each day based on the just recent official closing price of
each Index component security as reported by the TSE. This closing
value is disseminated prior to the opening of trading in the U.S. via
Options Price Reporting Authority. These values are also expected to be
carried by the major quote vendors such as Quotron, ADP, ILX and
Bloomberg, and thereby will be accessible to investors throughout the
trading day.\10\
\10\ See Amendment No. 2, supra note 5.
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C. Maintenance of the Index
The Index is maintained by the CBOE. The Index will be rebalanced
on the last trading day of the calendar year such that the components
again represent an equal percentage (2.5%) of the Index. The Exchange
staff will periodically review the Index to ensure that it continues to
encompass a broad cross-section of Japanese export industries. The
components of the Index will remain unchanged unless it becomes
necessary to maintain the continuity of the Index by removing a
component security due to a merger, takeover, or some other event where
the issuer of the component security is not the surviving entity. If a
component security is removed, the CBOE will attempt to find a
replacement security taking into account liquidity of the replacement
security, industry grouping, capitalization and the amount of the
company's export revenue. The Exchange represents that the Index will
not be permitted to fall below 35 component stocks.\11\ Additionally,
the Exchange represents that it will monitor the weighings of the
components of the Index and if at any time the top 5 stocks account for
more than 33\1/3\% of the total weight of the Index, the Exchange will
re-balance the Index within the next thirty calendar days.\12\ To
ensure continuity in the Index's value, the index divisor will be
adjusted to reflect, among other things, certain rights
[[Page 49656]]
issuances, stock splits, rebalancing, and component security changes.
\11\Id.
\12\See Amendment No. 3, supra note 6.
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D. Index Warrant Trading
The proposed warrants will be direct obligations of their issuer
subject to cash-settlement in U.S. dollars, and either exercisable
throughout their life (i.e., American-style) or exercisable only
immediately prior to their expiration date (i.e., European-style). Upon
exercise, the holder of a warrant structured as a ``put'' would receive
payment in U.S. dollars to the extent that the index value has declined
below a pre-stated cash settlement value. Conversely, upon exercise,
the holder of a warrant structured as a ``call'' would receive payment
in U.S. dollars to the extent that the index value has increased above
the pre-stated cash settlement value. Warrants that are ``out-or-the-
money'' at the time of expiration will expire worthless.
E. Warrant Listing Standards and Customer Safeguards
The Exchange has established uniform listing and trading guidelines
for index warrants (``Generic Warrant Listing Standards'').\13\ The
Exchange represents that the Generic Warrant Listing Standards will be
applicable to the listing and trading of index warrants generally,
including Japan Export Index warrants. These standards will govern all
aspects of the listing and trading of index warrants, including, issuer
eligibility,\14\ position and exercise limits,\15\ reportable
positions,\16\ automatic exercise,\17\ settlement,\18\ margin,\19\ and
trading halts and suspensions.\20\
\13\ See Securities Exchange Act Release No. 36169 (August 29,
1995), 60 FR 46644 (September 7, 1995) (``Generic Warrant Approval
Order'').
\14\ See CBOE Rule 31.5E(1) and (4). Issuers are required to
have a minimum tangible net worth in excess of $250 million or, in
the alternative, have a minimum tangible net worth in excess of $150
million, provided that the issuer does not have (including as a
result of the proposed issuance) issued and outstanding warrants
where the aggregate original issue price of all such warrant
offerings (combined with offerings by its affiliates) listed on a
national securities exchange or that are National Market securities
traded through NASDAQ exceeds 25% of the issuer's net worth.
\15\ See CBOE Rule 30.35. In particular, under CBOE Rule 30.35,
no member can control an aggregate position in a stock index warrant
issue, or in all warrants issued on the same stock index, on the
same side of the market, in excess of 15,000,000 warrants
(12,500,000 warrants with respect to warrants on the Russell 2000
Index) with an original issue price of ten dollars or less. Stock
index warrants with an original issue price greater than ten dollars
will be weighted more heavily in calculating position limits.
CBOE Rule 30.35 also establishes exercise limits on stock index
warrants which are analagous to those found in stock index options.
The rule prohibits holders from exercising, within any five
consecutive business days, long positions in warrants in excess of
the base position limit set forth above.
\16\ See CBOE Rules 30.50(d) and 4.13.
\17\ See CBOE Rule 31.5E(6).
\18\ See CBOE Rule 31.5E(5).
\19\ See CBOE Rule 30.53. In general, the margin requirements
for long and short positions in stock index warrants are the same as
margin requirements for long and short positions in stock index
options. Accordingly, all purchases of warrants will require payment
in full, and short sales of stock index warrants will require
initial margin of: (i) 100 percent of the current value of the
warrant plus (ii) 15 percent of the current value of the underlying
broad stock index less the amount by which the warrant is out of the
money, but with a minimum of ten percent of the index value.
\20\ See CBOE Rules 30.36 and 24.7.
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Additionally, these warrants will be sold only to accounts approved
for the trading of standardized options \21\ and, the Exchange's
options suitability standards will apply to recommendations in Index
warrants.\22\ The Exchange's rules regarding discretionary orders will
also apply to transactions in Index warrants.\23\ Finally, prior to the
commencement of trading, the Exchange will distribute a circular to its
membership calling attention to certain compliance responsibilities
when handling transactions in the Japan Export Index warrants.\24\
\21\ See CBOE Rules 30.52(c) and 9.7.
\22\ See CBOE Rules 30.52(d) and 9.9.
\23\ See CBOE Rule 30.50, Interpretation .03 (requiring that the
standards of Rule 9.10 be applied to index warrant transactions).
\24\ Telephone conversation between Eileen Smith, Director,
Research & Product Development, CBOE, and John Ayanian, Attorney,
OMS, Market Regulation, Commission, on August 17, 1995.
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F. Surveillance
The Exchange will apply its existing index warrant surveillance
procedures to Japan Export Index warrants. The Exchange has a market
surveillance agreement with the TSE which was obtained in connection
with CBOE trading of options of the Nikkei 300 Index (``Nikkei 300'').
Approximately 73% (29) of the stocks in the Index are also components
of the Nikkei 300 Index. The Exchange notes that the TSE is under the
regulatory oversight of the Ministry of Finance (``MOF'') and believes
that the ongoing oversight of all securities trading activity on the
TSE by the MOF will help to ensure that trading of the component
securities included in the Japan Export Index will be appropriately
monitored. Finally, the Exchange believes that the Memorandum of
Understanding (``MOU'') between the Commission and the MOF will provide
a framework for mutual assistance in investigatory and regulatory
matters.
III. Commission Finding and Conclusions
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange, and, in
particular, the requirements of Section 6(b)(5) of the Act.\25\
Specifically, the Commission finds that the trading of warrants based
on the Japan Export Index will serve to protect investors, promote the
public interest, and help to remove impediments to a free and open
securities market by providing investors with a means to hedge exposure
to market risk associated with securities in Japanese export industries
and provide a surrogate instrument for trading in the Japanese
securities market.\26\ The trading of warrants based on the Japan
Export Index should provide investors with a valuable hedging vehicle
that should reflect accurately the overall movement of securities in
Japanese export industries.
\25\ 15 U.S.C. 78f(b)(5).
\26\ Pursuant to Section 6(b)(5) of the Act, the Commission must
predicate approval of any new securities product upon a finding that
the introduction of such product is in the public interest. Such a
finding would be difficult with respect to a warrant that served no
hedging or other economic function, because any benefits that might
be derived by market participants likely would be outweighed by the
potential for manipulation, diminished public confidence in the
integrity of the markets, and other valid regulatory concerns.
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In addition, the Commission believes, for the reasons discussed
below, that the CBOE has adequately addressed issues related to
customer protection, index design, surveillance, and market impact of
Japan Export Index warrants.
A. Customer Protection
Special customer protection concerns are presented by Japanese
Export Index warrants because they are leveraged derivative securities.
The CBOE has addressed these concerns, however, by imposing the special
suitability, account approval, disclosure, and compliance requirements,
as discussed above.\27\ Moreover, the CBOE plans to distribute a
circular to their members identifying the specific risks associated
with warrants on the Japan Export Index. Finally, pursuant to the
Exchange's listing guidelines, only substantial companies capable of
meeting CBOE index warrant issuer standards will be eligible to issue
Japan Export Index warrants.
\27\ See Generic Warrant Approval Order, supra note 6.
[[Page 49657]]
B. Index Design and Structure
The Commission finds that it is appropriate and consistent with the
Act for the CBOE to designate the Index as a broad-based index.
Specifically, the Commission believes the Index is broad-based because
it reflects a substantial segment of the Japanese equity market. First,
the Index consists of 40 actively traded stocks listed on the TSE,
representing 10 different industry groups in Japan. Second, the market
capitalization of the stocks comprising the Index are very large.
Specifically, the total capitalization of the Index, as of June 30,
1995, was approximately U.S. $455 billion, with the market
capitalization of the individual stocks in the Index ranging from a
high of $74.76 billion to a low of $1.59 billion, with a mean value of
$11 billion.\28\ Third, no one particular stock or group of stocks
dominates the weight of the Index. Specifically, as of September 13,
1995, no single stock accounted for more than 4.14% of the Index's
total value, and the percentage weighting of the five largest issues in
the Index accounted for 16.98% of the Index's value. Additionally, the
lowest weighted stock in the Index accounted for 1.98% of the Index's
value.\29\ Accordingly, the Commission believes it is appropriate to
classify the Index as broad-based.
\28\ These figures are based on the Japanese yen values of as
June 30, 1995, but converted to dollars using the current exchange
rate of approximately JY 85/U.S. $1.00.
\29\ See Letter from Eileen Smith, Director, Research & Product
Development, CBOE, to John Ayanian, Attorney, OMS, Market
Regulation, Commission, dated September 18, 1995. Upon each annual
rebalancing of the Index, each component of the Index will account
for no more than 2.5% of the Index (based on 40 stocks comprising
the Index).
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C. Surveillance
As a general matter, the Commission believes that comprehensive
surveillance sharing agreements between the relevant foreign and
domestic exchanges are important where an index derivative product
based on foreign securities is to be traded in the United States.\30\
In most cases, in the absence of such a comprehensive surveillance
sharing agreement, the Commission believes that it would not be
possible to conclude that a derivative product, such as the Japan
Export Index warrant, was not readily susceptible to manipulation.
\30\ A comprehensive surveillance sharing agreement would allow
the parties to the agreement to obtain relevant surveillance
information, including, among other things, the identity of the
purchasers and sellers of securities.
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Although the CBOE and the TSE do not yet have a written
comprehensive surveillance sharing agreement that covers the trading of
Japan Export Index warrants, a number of factors support approval of
the proposal at this time. First, while the size of an underlying
market is not determinative of whether a particular derivative product
based on that market is readily susceptible to manipulation, the size
of the market for the securities underlying the Japan Export Index
makes it less likely that the proposed Index warrants are readily
susceptible to manipulation.\31\ In addition, the Commission notes that
the TSE is under the regulatory oversight of the MOF. The MOF has
responsibility for both the Japanese securities and derivatives
markets. Accordingly, the Commission believes that the ongoing
oversight of the trading activities on the TSE by the MOF will help to
ensure that the trading of the underlying components of the Japan
Export Index warrants will be carefully monitored with a view toward
preventing unnecessary market disruptions.
\31\ In evaluating the manipulative potential of a proposed
index derivative product, as it relates to the securities that
comprise the index and the index product itself, the Commission has
considered several factors, including (1) The number of securities
comprising the index or group; (2) the capitalizations of those
securities; (3) the depth and liquidity of the group or index; (4)
the diversification of the group or index; (5) the manner in which
the index or group is weighted; and (6) the ability to conduct
surveillance on the product. See Securities Exchange Act Release No.
31016 (August 11, 1992), 57 FR 37012 (August 17, 1992).
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Finally, as noted above, the Commission and the MOF have concluded
a Memorandum of Understanding that provides a framework for mutual
assistance in investigatory and regulatory matters.\32\ Moreover, the
Commission also has a longstanding working relationship with the MOF on
these matters. Based on the longstanding relationship between the
Commission and the MOF and the existence of the MOU, the Commission is
confident that it and the MOF could acquire information from one
another similar to that which would be available in the event that a
comprehensive surveillance sharing agreement were executed between the
CBOE and the TSE with respect to transactions in TSE-traded stocks
related to Japan Export Index warrant transactions on the CBOE.\33\
\32\ See Memorandum of Understanding Between the United States
Securities and Exchange Commission and the Securities Bureau of the
Japan Ministry of Finance on the Sharing of Information, dated May
23, 1986.
\33\ It is the Commission's expectation that this information
would include transaction, clearing, and customer information
necessary to conduct an investigation.
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Nevertheless, the Commission continues to believe strongly that a
comprehensive surveillance sharing agreement between the TSE and the
CBOE covering Japan Export Index warrants would be an important measure
to deter and detect potential manipulations or other improper or
illegal trading involving Japan Export Index warrants. Accordingly, the
Commission believes it is critical that the TSE and the CBOE continue
to work together to consummate a formal comprehensive surveillance
sharing agreement to cover Japan Export Index warrants and the
component securities as soon as practicable.
D. Market Impact
The Commission believes that the listing and trading of Japan
Export Index warrants on the CBOE will not adversely impact the
securities markets in the United States or in Japan. First, the
existing index warrants surveillance procedures of the CBOE will apply
to warrants on the Index. In addition, the Commission notes that the
Index is broad-based and diversified and includes highly capitalized
securities that are actively traded on the TSE. Additionally, the CBOE
has established reasonable positions and exercise limits for stock
index warrants, which will serve to minimize potential manipulation and
other market impact concerns.
The Commission finds good cause for approving the proposed rule
change, including Amendment Nos. 1, 2, and 3 prior to the thirtieth day
after the date of publication of notice of filing thereof in the
Federal Register. The Commission notes that Japan Export Index warrants
will be listed pursuant to the Generic Warrant Listing Standards as
described above. Additionally, the Index's applicable ``equal dollar
weighting'' methodology is a commonly applied index calculation method.
Moreover, the Japan Export Index is a broad-based Index designed to
represent a substantial segment of the Japanese equity market and
accordingly is similar in design as other Japanese stock market based
options and/or warrants that have been approved by the Commission for
U.S. exchange trading.\34\ Finally, no
[[Page 49658]]
comments were received on the proposal, which was subject to the full
21 day notice and comment period.\35\
\34\ See Securities Exchange Act Release Nos. 34821 (October 11,
1994), 59 FR 52568; and 35184 (December 30, 1994), 60 FR 2616
(January 10, 1995) (Orders approving proposed rule change by the
Amex and CBOE, respectively, to list and trade warrants based on the
Nikkei 300 Index). See also Securities Exchange Act Release No.
27565 (December 22, 1989), 55 FR 376 (January 4, 1990) (Order
approving proposed rule change by the Amex to list and trade
warrants based on the Nikkei 225 Index). See also Securities
Exchange Act Release Nos. 28475 (September 27, 1990), 55 FR 40492
(October 3, 1990); and 31016 (August 11, 1992), 57 FR 37012 (August
17, 1992) (Orders approving proposed rule change by the Amex to list
and trade options and warrants, respectively, on the Japan Index).
\35\ See Release No. 36128, supra note 3.
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Amendment No. 1 to CBOE's proposal sets the Index value equal to
100 on March 31, 1984, rather than on the date of the first issuance of
the warrants, as originally proposed. Accordingly, the Index was valued
at 206.56, as of September 13, 1995, and the initial offering price for
the warrants will be based on an index level around the time of
issuance. The Commission notes the Index does not yet underlie any
warrant trading, therefore the setting of a new starting value for the
Index does not raise any new regulatory issues.
The CBOE also indicated in Amendment No. 1 that the Index will not
be re-balanced at the time of initial issuance of the warrant, rather
it will be re-balanced annually as of the last trading day of the
calendar year as originally proposed. The Commission notes that the
Index was re-balanced on the last trading day of 1994, and will again
be re-balanced on the last trading day in 1995. Additionally, the Index
will be re-balanced earlier when necessary as set forth below in CBOE
Amendment No. 3.
Amendment No. 2 to CBOE's proposal describes more detailed
maintenance procedures to be employed by the CBOE.\36\ The Commission
believes that the Exchange's periodic review of the underlying
components of the Index for liquidity, capitalization and export
revenue, and the replacement procedures for underlying components of
the Index, as described above, will help ensure that the Index
maintains its intended market character.
\36\ See Amendment No. 2, supra note 5.
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In Amendment No. 2, the CBOE further represents that the Index
values are expected to be carried by the major quote vendors, and
thereby will be accessible to investors throughout the trading day. The
Commission believes that in light of CBOE's assurances that the Index
value will be widely available to investors throughout the trading day,
and because stock exchange trading in Japan and U.S. markets does not
overlap, the described amendment relating to Index dissemination is
appropriate.
Amendment No. 3 to CBOE's proposal states that the CBOE will
monitor the weightings of the components of the Japan Export Index and
if at any time the top 5 stocks account for more than 33\1/3\% of the
total weight of the Index, CBOE will re-balance the Index within the
next thirty calendar days. The Commission notes that Amendment No. 3 is
more restrictive than the original proposal which was published for the
full 21-day comment period without any comments being received by the
Commission.\37\ Additionally, the Commission believes that the
Exchange's interim reblancing procedures will benefit investors and
help ensure that the Index reflects its intended market character.
\37\ The Commission believes that the CBOE's amended maintenance
procedures are more restrictive in that the CBOE will re-balance the
Index within 30 calendar days if at any time the top 5 stocks
account for more than 33\1/3\% of the total weight of the Index. The
proposal as originally filed only contemplated an annual rebalancing
under all circumstances.
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Accordingly, the Commission believes it is consistent with Section
6(b)(5) and 19(b)(2) of the Act to approve the proposed rule change,
including Amendment Nos. 1, 2 and 3 to the proposed rule change, on an
accelerated basis.
E. 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. Sec. 552, will be available for inspection and copying at
the Commission's Public Reference Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such filing will also be available for
inspection and copying at the principal office of the CBOE. All
submissions should refer to SR-CBOE-95-41 and should be submitted by
October 17, 1995.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\38\ that the proposed rule change (File No. SR-CBOE-95-41), as
amended, is approved.
\38\ 15 U.S.C. 78s(b)(2).
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\39\
\39\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-23758 Filed 9-25-95; 8:45 am]
BILLING CODE 8010-01-M
