Self-Regulatory Organizations: Filing of Proposed Rule Change by the Chicago Board Options Exchange, Inc., Relating to Trade Recording and Price Reporting

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-33730; File No. SR-CBOE-94-01]

Self-Regulatory Organizations: Filing of Proposed Rule Change by

the Chicago Board Options Exchange, Inc., Relating to Trade Recording

and Price Reporting

March 8, 1994.

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 January

22, 1994, 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 self-

regulatory organization. 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

Currently, Interpretation and Policy .01 to CBOE rule 6.51,

``Reporting Duties,'' requires both the buyer and the seller in a

transaction to record on a card or ticket information concerning the

transaction, including the buyer's or seller's assigned broker initial

code and his clearing firm (if a market maker), the symbol of the

underlying security, the type, expiration month and exercise price of

the option contract, the transaction price, the number of contract

units comprising the transaction, the time of the transaction, the name

of the contra clearing firm member and the assigned broker initial code

of the contra member. Under Interpretation and Policy .01, this

information constitutes the ``transaction record.'' The CBOE proposes

to amend Interpretation and Policy .01 to allow members to submit

options transaction data to the Exchange for trade recording and price

reporting purposes in various media in addition to paper form.

The text of the proposal 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 self-regulatory organization

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 self-regulatory organization

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

The CBOE states that the purpose of the proposal is to enable CBOE

members to submit options transaction data to the CBOE for trade

recording and price reporting purposes in various media in addition to

paper form. Under current CBOE rule 6.51, members are required to

submit transaction data in paper form only, either on a trade ticket or

on a transaction card. The CBOE states that in today's market and

operations technology environment the limitation is unduly restrictive,

and some Exchange members have requested the opportunity to submit

transaction record data by means of electronic data transmission.

Submission in that form would enable those members to report trades and

prices to the CBOE through the same automated medium they use to report

that information to their clearing firms. Accordingly, the CBOE seeks

authority to approve particular media in addition to paper that CBOE

members may use for trade recording and price reporting purposes.

In administering the proposed rule change, the CBOE will from time

to time identity particular media and formats acceptable for use under

Exchange Rule 6.51 based on members' needs and will inform members

about acceptable media and formats through appropriate circulars. The

CBOE expects to identify as acceptable only those media that involve

secure and tested technology.

The CBOE believes that the proposed rule change is consistent with

section 6(b) of the Act, in general, and with section 6(b)(5), in

particular, in that it is designed to facilitate cooperation and

coordination with persons engaged in the clearance and settlement of

securities transactions, consistent with the protection of investors

and the public interest.

(B) Self-Regulatory Organization's Statement on Burden on Competition

The 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

Within 35 days after the 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 reason for so finding or (ii) as to

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., Washignton, 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 at 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 above-mentioned self-regulatory

organization. All submissions should refer to the file number in the

caption above and should be submitted by April 4, 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. 94-5837 Filed 3-11-94; 8:45 am]

BILLING CODE 8010-01-M