[Federal Register Volume 65, Number 250 (Thursday, December 28, 2000)]
[Notices]
[Pages 82425-82426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-33129]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-43744; File No. SR-CBOE-00-64]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Board Options
Exchange, Inc., Relating to Exchange Fees
December 19, 2000.
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 December 1, 2000, 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 Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The CBOE proposes to make a change to its fee schedule related to
options on the CBOE Mini-NDX. The test of the proposed rule change is
available at the CBOE and 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
1. Purpose
On August 29, 2000, the Commission approved the Exchange's proposed
rule change to waive all customer fees for options on the CBOE Mini-NDX
(``MNX\SM\'').\3\ The Exchange decided to waive these customer fees to
promote the launch of the MNX product, which started trading on August
14, 2000. The purpose of the proposed rule change is to reinstate all
customer fees relating to public customer MNX options orders effective
on December 1, 2000.\4\
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\3\ See Securities Exchange Act Release No. 43221 (August 29,
2000), 65 FR 54333 (September 7, 2000). The Commission approved the
trading of options on the CBOE Mini-NDX on June 30, 2000. See
Securities Exchange Act Release No. 43000 (June 30, 2000), 65 FR
42409 (July 10, 2000).
\4\ These ``customer fees'' are actually those fees assessed on
Exchange members relating to public customer MNX options orders
executed by such members. Telephone conversation between Jamie
Galvan, Attorney, CBOE, and Geoffrey Pemble, Attorney, Division of
Market Regulation, Commission, on December 19, 2000.
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Specifically, the Exchange proposes to reinstate the transaction
fee, trade match fee, floor brokerage fee and RAES fee for public
customer MNX options orders. These customer fees will revert to the
standard rates that currently apply to public customer orders for all
other Exchange index options. The Exchange believes the customer fee
waivers served the purposes of promoting a successful launch of the MNX
product while generating significant savings for its
[[Page 82426]]
customers. The Exchange now proposes to charge customer fees for MNX
options orders as it does for any other index product.
2. Statutory Basis
The CBOE believes that the proposed rule change is consistent with
Section 6(b) of the Exchange Act (``Act''),\5\ in general, and furthers
the objectives of Section 6(b)(4) of the Act,\6\ in particular, in that
it is designed to provide for the equitable allocation of reasonable
dues, fees, and other changes among CBOE members.
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\5\ 15 U.S.C. 78f(b).
\6\ 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 any burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Because the foregoing rule change establishes or changes a due, fee
or other charge imposed by the Exchange, it has become effective
pursuant to Section 19(b)(3)(A)(ii) \7\ of the Act and subappropriate
(f)(2) of Rule 19b-4 thereunder.\8\ At any time within 60 days of the
filing of the 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.
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\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 17 CFR 240.19b-4(f)(2).
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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 will also be
available for inspection and copying at the principal office of the
Exchange. All submissions should refer to the File No. SR-CBOE-00-64
and should be submitted by January 18, 2001.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-33129 Filed 12-27-00; 8:45 am]
BILLING CODE 8010-01-M