[Federal Register: November 13, 2003 (Volume 68, Number 219)]
[Notices]
[Page 64379-64380]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13no03-87]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-48750; File No. SR-CBOE-2003-52]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Board Options
Exchange, Incorporated To Make Changes to Its Fee Schedule To Amend
Certain Application Fees
November 6, 2003.
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 November 3, 2003, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or ``Exchange'') submitted to 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.
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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 changes to its Fee Schedule to amend
certain application fees. The text of the proposed rule change to the
fee schedule is available at the Office of the Secretary, the CBOE, and
at 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, Proposed Rule Change
1. Purpose
The CBOE proposes to make the following amendments to its Fee
Schedule concerning its application fees, as described below.
First, the application fee for a new joint account is currently
$250 per person (with a minimum of $500). The Exchange states that this
fee has not increased for many years,\3\ and now proposes to move to a
flat fee of $1,000 for all new joint account applications.
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\3\ See Securities Exchange Act Release No. 14197 (Nov. 22,
1977), 42 FR 61097 (Dec. 1, 1977) (approving SR-CBOE-77-26, which
established the $250 joint account application fee).
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Second, the Exchange currently charges $250 whenever a member
organization requests an addition of a member to a joint account. The
Exchange proposes a change to eliminate this fee for participant
additions to joint accounts whose members are part of the same broker-
dealer. The Exchange states that the vast majority of additions to
joint accounts are currently for joint accounts whose members are part
of the same broker-dealer. Recent revisions in the joint application
account form have significantly reduced the time and effort that the
Exchange staff must expend in processing such changes. In cases where
the members of a joint account are not part of the same broker-dealer,
the $250 fee would continue to be imposed for each addition to the
joint account.
Finally, the Exchange proposes to establish a $10,000 cap on
application fees that are incurred due to a member organization's
change in its organizational structure (e.g., when a limited
partnership restructures itself as a limited liability corporation).
The Exchange believes that this cap would still allow the CBOE to
recover its processing costs occasioned by such structural changes,
while also mitigating the fee impact upon member organizations who find
themselves required to enact such changes in their structure.
The Exchange believes that these changes would help continue to
fairly allocate its costs for processing changes in joint accounts
while also passing along to members the savings from increased
efficiencies that the Exchange has recently achieved in this area.
2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with Section 6(b) of the Act \4\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \5\ in particular, in that it
is designed to provide for the equitable allocation of reasonable dues,
fees, and other charges among the CBOE members.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
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[[Page 64380]]
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 that is not necessary or appropriate
in furtherance of purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed 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) of the Act \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
purposes of the Act.
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\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
\7\ 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 in the
Commission's Public Reference Room. Copies of such filing will also be
available for inspection and copying at the principal office of the
CBOE. All submissions should refer to File No. SR-CBOE-2003-52 and
should be submitted by December 4, 2003.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 03-28393 Filed 11-12-03; 8:45 am]
BILLING CODE 8010-01-P