[Federal Register Volume 61, Number 173 (Thursday, September 5, 1996)]
[Notices]
[Pages 46884-46885]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-22629]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37621; File No. SR-CBOE-96-49]
Self-Regulatory Organizations; Order Approving Proposed Rule
Change by Chicago Board Options Exchange, Incorporated Relating to
Permitting Additional Submissions Following Respondent's Petition for
Review
August 29, 1996.
On July 23, 1996, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``SEC'' or ``Commission'') the proposed rule change
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder.\2\ The proposed rule change
amends Exchange Fule 17.10 which governs the review of Business Conduct
Committee (``BCC'') decisions by the Exchange's Board of Directors
(``Board''). Notice of the proposed rule change, together with the
substance of the proposal, was issued by Commission release (Securities
Exchange Act Release No. 37473, July 23, 1996) and by publication in
the Federal Register (61 FR 39685, July 30, 1996).\3\ No comment
letters were received. The Commission is approving the proposed rule
change.
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\1\ 15 U.S.C. Sec. 78s(b)(1) (1988).
\2\ 17 CFR 240.19b-4.
\3\ The proposed rule change was originally filed with the
Commission on July 11, 1996. The CBOE subsequently submitted
Amendment No. 1 to the filing. 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. Background
The purpose of the proposed change to Exchange Rule 17.10 is to
formalize 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.
II. The Terms of Substance of the Proposed Rule Change
The proposed rule change provides 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 proposed rule
change requires the
[[Page 46885]]
Exchange staff's response to 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. In addition, the proposed rule change
clarifies that the Respondent's petition for review and Respondent's
reply should be filed with the Secretary of the Exchange and the
Exchange's Office of Enforcement.
III. Discussion
The Commission believes the proposed rule change is consistent with
Section 6 of the Act, 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. The Commission believes the proposed
rule change will make the review process more fair and efficient by
formalizing the current appeal practice to ensure that both parties
have the opportunity to make an additional submission to the Board and
by clarifying with which office of the Exchange the petition for review
should be filed. The proposed rule change will ensure a more fair and
thorough 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. As is the case under the current
rules, the proposed rule change will ensure that the Respondent
ordinarily will have the opportunity to make the final submission to
the Board. In addition, the proposed rule change will reduce the amount
of time the Board spends on administrative matters by eliminating the
need for the staff to request approval before the submission of each
response.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change, SR-CBOE-96-49 be, and hereby is,
approved.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority, 17 CFR 200.30-3(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-22629 Filed 9-4-96; 8:45 am]
BILLING CODE 8010-01-M
