[Federal Register Volume 59, Number 7 (Tuesday, January 11, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-561]
[[Page Unknown]]
[Federal Register: January 11, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33425; File No. SR-CBOE-93-58]
Self-Regulatory Organizations; Filing of Proposed Rule Change by
the Chicago Board Options Exchange, Inc. Relating to the Maintenance by
Members of Certain Written Policies and Procedures
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on December
20, 1993, the Chicago Board Options Exchange, Inc. (``CBOE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``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.
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CBOE proposes to amend Rule 4.18 to provide that a member who
is a lessor of a membership and who performs no other function in
respect of the membership is not subject to the requirements of Rule
4.18 concerning the establishment, maintenance, and enforcement of
written policies and procedures respecting misuse of non-public
information. The text of the proposed rule change is available at the
Office of the Secretary, 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 the 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 the
Statutory Basis for, the Proposed Rule Change
The purpose of the proposal is to amend Rule 4.18 to provide that a
member who is a lessor of a membership and who performs no other
function in respect of the membership is not subject to the
requirements of Rule 4.18 concerning the establishment, maintenance,
and enforcement of written policies and procedures respecting misuse of
non-public information.
In its current form, Rule 4.18 requires all members to maintain and
enforce written policies and procedures concerning non-public
information. Lessor members who have no other activities, however, do
not conduct any securities business in respect of their membership,
and, according to the Exchange, are not required to register as broker-
dealers under section 15 of the Securities Exchange Act of 1934. Under
these circumstances, the Exchange believes there is no reason to
subject these members to the written policy and procedure requirements
of Rule 4.18, which by their terms are meaningful only to an ongoing
securities business. Accordingly, Rule 4.18 is proposed to be amended
to clarify that members who perform no function in respect of their
membership except as lessors do not have to establish, maintain or
enforce written policies and procedures precluding misuse of non-public
information.
The CBOE believes that the proposed rule change is consistent with
section 6(b) of the Act in general and furthers the objectives of
section 6(b)(5) of the Act in particular in that it is designed to
promote just and equitable principles of trade and to protect the
public interest by eliminating unnecessary costs and burdens without
impairing CBOE's capacity to meet the requirements of the Act.
(B) Self-Regulatory Organization's Statement on Burden on Competition
The CBOE does not believe that the proposed rule change will impose
a burden on competition.
(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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
that which the self-regulatory organization consents, the Commission
will:
(A) By order approve such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549.
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 Section, 450 Fifth Street, NW.,
Washington, DC. 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-93-58 and should be
submitted by February 1, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\1\
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\1\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-561 Filed 1-10-94; 8:45 am]
BILLING CODE 8010-01-M