regulatory organizations; proposed rule changes: Chicago Board Options Exchange, Inc.,
[Federal Register: April 22, 1999 (Volume 64, Number 77)]
[Notices]
[Page 19842-19843]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22ap99-119]
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41289; File No. SR-CBOE-99-12]
Selt-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Chicago Board Options Exchange, Inc. Relating to Market-Maker Surcharge
April 14, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act``),\1\ and Rule 19b-4 there under,\2\ notice is hereby given that on March 31, 1999, the Chicago Board Options Exchange, Inc. (`'CBOE'' or ``Exchange'') filedwith 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. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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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.\3\
\3\ 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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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, C below, of the most significant aspects of such statements.
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Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
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Purpose
Pursuant to CBOE Rule 2.40, the Equity Floor Procedure Committee approved the following fees for the following option classes: \4\
\4\ The surcharge will be used to reimburse the Exchange for the reduction in the Order Book Official brokerage rate form $0.20 in the relevant options classes. Any remaining funds will be paid to Stationary Floor Brokers as provided in exchange Rule 2.40.
Market- Order Book Marker Official Option Class
Surcharge Brokerage (per Rate (per contract) contract)
\4\---- Yahoo (YHQ)..................................
$0.10
$0.00 Citigroup (C)................................
0.06
0.00 Amazon (ZQN).................................
0.10
0.00 Worldcom (LDQ)...............................
0.10
0.00 U.S. Web (QWB)...............................
0.03
0.00 Mindspring...................................
0.03
0.00 (MQD)........................................ Doubleclick..................................
0.04
0.00 (QTD)........................................
These fees will be effective as of April 1, 1999, and will remain in effect until such time as the Equity Floor Procedure Committee or the Board determines to change these fees and files the appropriate rule change with the Commission. 2. Statutory Basis
The Exchange believes the proposed rule change is consistent with Section
[[Page 19843]]
6(b)(4) \5\ of the Act because it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among its members.
\5\ 15 u.S.c. 78f(b)(4).
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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 that is not necessary or appropriate in furtherance of the purposes of the Act.
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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.
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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 charge imposed by the Exchange and, therefore, has become effective pursuant to Section 19(b)(3)(A)(ii) \6\ and subparagraph (f)(2) of Rule 19b-4 thereunder.\7\ 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 purpose of the Act.\8\
\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
\7\ 17 CFR 240.19b-4(f)(2).
\8\ 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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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, N.W., Washington, D.C. 20549- 0609. Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filedwith 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-99-12 and should be submitted by May 13, 1999.
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\9\
\9\ 17 CFR 200.30-3(a)(12).
Jonathan G. Katz, Secretary.
[FR Doc. 99-10018Filed4-21-99; 8:45 am]
BILLING CODE 8010-01-M
