Self-regulatory organizations; proposed rule changes: Chicago Board Options Exchange, Inc.,

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Federal Register: June 14, 2005 (Volume 70, Number 113)NoticesPage 34510-34511From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DOCID:fr14jn05-92

SECURITIES AND EXCHANGE COMMISSION

Release No. 34-51749; File No. SR-CBOE-2005-31Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Transaction Fees in Options on the Russell 2000 Index

May 26, 2005.

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 April 20, 2005, 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. On May 17, 2005, the CBOE filed Amendment No. 1 to the proposed rule change.\3\ The CBOE has designated this proposal as one establishing or changing a due, fee, or other charge imposed by the CBOE under Section 19(b)(3)(A)(ii) of the Act,\4\ and Rule 19b-4(f)(2) thereunder,\5\ which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons.

\1\ 15 U.S.C. 78s(b)(1).

\2\ 17 CFR 240.19b-4.

\3\ In Amendment No. 1, the Exchange made a few technical corrections to the purpose section and rule text of the proposed rule change and added a sentence to the purpose section to clarify the reason for the proposed reduction in the license fee. The effective date of the original proposed rule change is April 20, 2005, and the effective date of the amendment is May 17, 2005. For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change, as amended, under Section 19(b)(3)(C) of the Act, the Commission considers the period to commence on May 17, 2005, the date on which the Exchange submitted Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).

\4\ 15 U.S.C. 78s(b)(3)(A)(ii).

\5\ 17 CFR 240.19b-4(f)(2).

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The Exchange proposes to amend its Fees Schedule relating to transaction fees in options on the Russell 2000 Index (``RUT''). Below is the text of the proposed rule change. Proposed new language is italicized; proposed deletions are in [brackets].

CHICAGO BOARD OPTIONS EXCHANGE, INC. FEES SCHEDULE [MARCH 2] APRIL 20, 2005

1. OPTIONS TRANSACTION FEES (1)(3)(4)(7): PER CONTRACT

EQUITY OPTIONS (13):

I.--VIII. Unchanged.

QQQQ and SPDR OPTIONS:

I.--VI. Unchanged.

INDEX OPTIONS (includes Dow Jones DIAMONDS, OEF and other ETF and HOLDRs options):

I. CUSTOMER (2):

S&P 100, PREMIUM > or = $1--$.35 S&P 100, PREMIUM MNX and NDX--$.15 RUT and REDUCED VALUE RUSSELL 2000--$.15 ETF and HOLDRs options (except DIA)--$.15 OTHER INDEXES, PREMIUM > OR = $1--$.45 OTHER INDEXES, PREMIUM FACILITATION OF CUSTOMER ORDER, MNX and NDX--$.24 FACILITATION OF CUSTOMER ORDER, OTHER INDEXES--$.20 NON-FACILITATION ORDER--$.24

IV. BROKER-DEALER (EXCLUDING THE PRODUCTS BELOW) INDEX CUSTOMER RATES

ETF, HOLDRS, RUT and REDUCED VALUE RUSSELL 2000, PREMIUM > or = $1--$.45 ETF, HOLDRS, RUT and REDUCED VALUE RUSSELL 2000, PREMIUM MNX and NDX--$.25

V. NON-MEMBER MARKET MAKER:

S&P 100 (including OEF), PREMIUM > or = $1--$.37 S&P 100 (including OEF), PREMIUM OTHER INDEXES, PREMIUM > or = $1--$.47 OTHER INDEXES, PREMIUM S&P 100 (OEF), PREMIUM > or = $1--$.35 S&P 100 (OEF), PREMIUM OTHER INDEXES, PREMIUM > OR = $1--$.45 OTHER INDEXES, PREMIUM Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml. ); or Send an e-mail to rule-comments@sec.gov. Please include

File Number SR-CBOE-2005-31 on the subject line.

Paper Comments

Send paper comments in triplicate to Jonathan G. Katz, Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609.

All submissions should refer to File Number SR-CBOE-2005-31. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml ). 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 Room. Copies of such filing also will be available for inspection and copying at the principal office of the CBOE. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-CBOE-2005-31 and should be submitted on or before July 5, 2005.

For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\12\

\12\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland, Deputy Secretary.

FR Doc. E5-3063 Filed 6-13-05; 8:45 amBILLING CODE 8010-01-P

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