The Chicago Board Options Exchange (CBOE) has revised its Rule 3.4 regarding qualifications of foreign member organizations. Under the revised rule, a CBOE member that does not maintain an office in the United States responsible for preparing and maintaining financial and other reports required to be filed with the Securities and Exchange Commission and the CBOE would be required to:
- Prepare all such reports, and maintain a general ledger chart of account and any description thereof, in English and U.S. dollars;
- Reimburse the CBOE for any expense incurred in connection with examination of the member to the extent that such expenses exceed the cost of examining a member located within the continental United States; and
- Ensure the availability of an individual fluent in English knowledgeable in securities and financial matters to assist representatives of the CBOE during examinations.
The CBOE believes that it will continue to have adequate regulatory jurisdiction over foreign members by virtue of rule provisions that are generally applicable to all CBOE members, e.g., consent to jurisdiction, agreements to abide by the constitution and rules of the CBOE and all circulars, notices, etc., and does not believe that the additional requirements in previous Rule 3.4 for foreign member organizations are necessary.