[Federal Register Volume 59, Number 19 (Friday, January 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1811]


[Federal Register: January 28, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33499; File No. SR-CHX-93-33]


Self-Regulatory Organizations; Filing of Proposed Rule Change by 
the Chicago Stock Exchange, Inc. (``CHX'') Relating to the Filing of 
Form U-5

January 21, 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 December 
23, 1993, the Chicago Stock Exchange, Inc. (``CHX'' 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 self-regulatory organization. On 
January 21, 1994, the Exchange submitted to the Commission Amendment 
No. 1 to the proposed rule change.\1\ The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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    \1\See letter from David T. Rusoff, Attorney, Foley & Lardner, 
to Louis A. Randazzo, Attorney, Branch of Exchange Regulation, 
Commission, dated January 21, 1994. Amendment No. 1 made certain 
clarifying amendments to the proposal.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to add interpretation and policy .03 to Rule 
3, Article VI of the Exchange's rules and relates to the filing of a 
Uniform Termination Notice for Securities Industry Registration (``Form 
U-5'').\2\
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    \2\The Form U-5 is employed in connection with the National 
Association of Securities Dealers, Inc. (``NASD'') Central 
Registration Depository (``CRD'') system and is used by the various 
securities self-regulatory organizations (``SROs'') as part of their 
registration and oversight of member organization personnel. Form U-
5 contains information relating to the circumstances surrounding the 
termination of an applicant's prior employment.
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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

1. Purpose
    The purpose of the proposed rule change is to require certain 
members of the Exchange to file Form U-5 termination notices with the 
Exchange.\3\ The Form U-5 is used by a broker-dealer to give official 
notice that it has terminated a registered employee. Requiring the 
filing of the Form U-5 with the Exchange is consistent with the rules 
of other SROs and will allow the Exchange to more precisely monitor the 
authority of registered persons to act on behalf of member firms and 
monitor the reasons for termination.\4\
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    \3\Proposed Interpretation and Policy .03 to Rule 3 of Article 
VI would apply to member organizations for which the Exchange is the 
Designated Examining Authority (``DEA'') and to registered persons 
of any other member organization (for whom the CHX is not the DEA) 
that are active on the CHX trading floor.
    \4\Proposed Interpretation and Policy .03 to Rule 3 of Article 
VI states that following the termination of a person associated with 
a member in a registered capacity, such member shall promptly, but 
in no event later than thirty (30) calendar days after such 
termination, give written notice of such termination to the Exchange 
on Form U-5, and concurrently provide a copy of such notice to the 
person whose association has been terminated. This requirement shall 
only apply to member organizations for which the Exchange is the DEA 
and to registered persons of other member organizations active on 
the CHX trading floor.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b)(5) of the 
Act in that it is designed to promote just and equitable principles of 
trade, to remove impediments and to perfect the mechanism of a free and 
open market and a national market system, and, in general, to protect 
investors and the public interest.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule 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 comments were solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 35 days of the date of 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 published its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:

    (A) by order approve the 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., 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 at the 
Commission's Public Reference Room, 450 Fifth Street, NW., Washington, 
DC 20549. Copies of the filing will also be available for inspection 
and copying at the principal office of the CHX. All submissions should 
refer to File No. SR-CHX-93-33 and should be submitted by February 18, 
1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-1811 Filed 1-27-94; 8:45 am]
BILLING CODE 8010-01-M