[Federal Register Volume 59, Number 66 (Wednesday, April 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8165]


[[Page Unknown]]

[Federal Register: April 6, 1994]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33837; File No. SR-CHX-94-09]

 

Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, 
Inc. To Extend a Credit against Dues Given to Registered Market Makers 
for Trading the Chicago Stock Basket

March 30, 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 March 
17, 1994, the Chicago Stock Exchange, Inc. (``CHX'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'' or 
``SEC'') 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

    The Exchange proposes to extend a credit against dues given to 
registered Market Makers in the Chicago Stock Basket (``CXM''), for 
trading the CXM through May 31, 1994.\1\
---------------------------------------------------------------------------

    \1\This credit became effective in Securities Exchange Act 
Release No. 33380 (December 23, 1993), 58 FR 69416 (December 30, 
1993) (File No. SR-CHX-93-32) and was extended until March 31, 1994 
in Securities Exchange Act Release No. 33585 (February 7, 1994), 59 
FR 6986 (February 14, 1994) (File No. SR-CHX-94-05). According to 
the CHX, the credit applies only to CXM trades for a registered 
Market Maker's proprietary market making account. Telephone 
conversation between David T. Rusoff, Foley & Lardner, and Beth 
Stekler, Attorney, Division of Market Regulation, SEC, on December 
14, 1993.
    For further discussion of the market structure for trading the 
CXM and, in particular, of the role of registered Market Makers, see 
Securities Exchange Act Release No. 33053 (October 15, 1993), 58 FR 
54610 (October 22, 1993) (File No. SR-CHX-93-18).
---------------------------------------------------------------------------

    Proposed new language is italicized and deleted language is 
bracketed:

Membership Dues and Fees

Member Dues (all members)--$3,200 per annum, payable monthly in equal 
installments.

    Through [March] May 31, 1994, registered Market Makers in the CXM 
will be given a credit towards their monthly installment of their dues 
at the rate of $1 for each contract of CXM that they trade. The maximum 
credit given to any registered Market Maker in the CXM pursuant to the 
preceding sentence shall be $15 per day up to a maximum of $266 per 
month.

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 encourage more 
trading and participation in the CXM product by registered Market 
Makers. This filing will extend the credit towards dues for trading in 
the CXM to May 31, 1994, from its current March 31, 1994 expiration 
date.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b)(4) of the 
Act in that it provides for the equitable allocation of reasonable fees 
and other charges among members using its facilities.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received from Members, Participants or Others

    Comments were neither solicited nor received.

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

    The foregoing rule change establishes or changes a due, fee, or 
other charge imposed by the Exchange and therefore has become effective 
pursuant to section 19(b)(3)(A) of the Act and subparagraph (e) of Rule 
19b-4 thereunder. At any time within 60 days of the filing of such rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purpose of the Act.

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 Section, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such 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-94-09 and should be 
submitted by April 27, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-8165 Filed 4-5-94; 8:45 am]
BILLING CODE 8010-01-M