Abstract: A spindle apparatus for receiving and driving a tool holder, comprises a drive, a shaft coupled to the drive with a forward end of the shaft having a receptor for affixation of a tool holder, and a clamping device supported at the forward end of the shaft for integral driven rotation therewith. The clamping device has a clamping element disposed within the receptor and selectively actuable between an active position for retaining the tool holder and an inactive position for inserting and releasing the tool holder. An actuator is operatively connected with the clamping device for controlling movement of the clamping element between the active and inactive positions. The actuator is disposed adjacent the forward end of the shaft in surrounding relation thereto, which facilitates a particularly compact, efficient and reliable design.