[Federal Register Volume 63, Number 56 (Tuesday, March 24, 1998)]
[Notices]
[Pages 14152-14153]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7516]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39769; File No. JR-CBOE-98-08]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change By the Chicago Board Options
Exchange, Inc., Relating to Electronic Filing of FOCUS Reports
March 17, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act''),\1\ notice is hereby given that on
February 20, 1998, 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.\2\ 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\ On March 16, 1998, the CBOE made a technical amendment to
the proposal clarifying the implementation schedule for the
electronic filing requirement contained therein. Telephone
conversation between Timothy Thompson, Senior Attorney, Exchange,
and Kenneth Rosen, Attorney, Division of Market Regulation,
Commission (March 16, 1998).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The CBOE proposes to require members who are required to compute
net capital under Exchange Act Rule 15c3-1 (``net capital computing
members'') to file their FOCUS reports electronically using the
WinJammer TM system.
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
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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
Exchange Rule 15.5 requires members to file financial reports in a
manner prescribed by the Exchange. Pursuant to Rule 15.5, the Exchange
will now require that net capital computing members file electronically
their required monthly/quarterly FOCUS reports \3\ using the WinJammer
system. The Exchange will add Interpretation .02 to Rule 15.5 to set
forth this requirement in its Rules. By requiring net capital computing
firms to file their FOCUS reports electronically, the Exchange will be
making its requirements consistent with those of the New York Stock
Exchange and the National Association of Securities Dealers.
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\3\ ``FOCUS reports'' are the Financial and Operational Combined
Uniform Single Report which most broker-dealers are required to file
with their designated examining authority pursuant to Exchange Act
Rule 17a-5.
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The use of WinJammer to collect FOCUS information ensures that the
Exchange receives FOCUS reports from members without the risk of
filings being lost. Additionally, because of the rigorous edit checks
in the WinJammer system, the FOCUS data received will more likely be
accurate and complete. Electronic receipt of FOCUS data also means that
Exchange staff and outside vendors will no longer have to re-key the
information; thus, freeing up Exchange resources for more important
tasks. The Exchange will provide members with copies of the WinJammer
software.
By requiring net capital computing firms to file electronically,
the Exchange will help to reduce errors and save resources. The filing,
therefore, is consistent with and furthers the objectives of Section
6(b)(5) of the Exchange Act in that it is designed to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and
to protect investors and the public interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE 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
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(i) of the Act \4\ and subparagraph (e)(1) of Rule 19b-4
thereunder because the proposal constitutes a stated policy, practice,
or interpretation with respect to the meaning, administration, or
enforcement of an existing rule of the Exchange.\5\ Notwithstanding
that this rule change is effective immediately upon filing, the CBOE
will not require the filing of the electronic FOCUS reports until June
1998. At any time within 60 days of the filing of such 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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\4\ 15 U.S.C. 78s(b)(3)(A)(i).
\5\ 17 CFR 240.19b-4(e)(1). In reviewing this rule, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
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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.
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 the File No. SR-CBOE-98-08 and
should be submitted by April 14, 1998.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-7516 Filed 3-23-98; 8:45 am]
BILLING CODE 8010-01-M