[Congressional Record Volume 140, Number 110 (Wednesday, August 10, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 10, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
         H.R. 4535, THE UNLISTED TRADING PRIVILEGES ACT OF 1994

                                 ______


                          HON. CARDISS COLLINS

                              of illinois

                    in the house of representatives

                       Wednesday, August 10, 1994

  Mrs. COLLINS of Illinois. Mr. Speaker, as an original cosponsor of 
H.R. 4535, the Unlisted Trading Privileges Act of 1994, I am pleased 
that this important legislation was passed by the full House under 
suspension of the rules on August 1, 1994. Unfortunately, due to other 
pressing congressional business, I was unable to participate in the 
debate on this bill.
  Regional stock exchanges, such as the Chicago exchange in my 
congressional district, serve a vital role in the present and future 
strength of our world financial markets. These exchanges are a driving 
force in providing necessary capital formation for both the American 
and global economies.
  Much of the success of the New York and American exchanges is owed to 
constant innovation and relentless competition from their regional 
counterparts. The regional exchanges often have been able to provide 
cheaper and more efficient transactions, with innovative clearing 
techniques. These improvements were then adapted by the larger 
exchanges, benefiting the entire economy.
  The Chicago Stock Exchange in particular is important in this regard. 
It is part of the creative Chicago financial and business community 
which includes the Chicago Mercantile Exchange and the Chicago Board of 
Trade and is especially important to the Midwest of our country. The 
Chicago Stock Exchange is also the largest of the Nation's regional 
exchanges.
  Because of the historical importance of our regional stock exchanges, 
it is imperative that we in Congress ensure that the most equitable 
competition exists among all exchanges if we expect the United States 
to remain the leader in efficient and productive capital formation. A 
level playing field is necessary to guarantee the new products and 
services will continually be offered to the American investor.
  As you know, H.R. 4535 will help to achieve this goal. The 
legislation will finally permit regional stock exchanges to trade 
stocks listed on the New York or American exchanges the moment they 
become listed and registered on those exchanges.
  H.R. 4535 will correct what has long been an outdated provision of 
the Securities Exchange Act of 1934 that requires regional exchanges to 
wait up to 60 days for SEC approval to initiate trading in these listed 
securities while other Wall Street brokerage firms that deal in NYSE 
listed stocks are able to trade these stocks absent any similar SEC 
oversight.
  H.R. 4535 will also grant the SEC the authority to issue a rulemaking 
to further explore the granting of unlisted trading privileges in 
initial public offerings [IPO's] of securities in a company approved 
for listing on the primary exchanges.
  Mr. Speaker, I am extremely pleases that my colleagues in the House 
supported H.R. 4535 and look forward to similar support from the 
Senate.

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