[Federal Register Volume 59, Number 236 (Friday, December 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30259]


[[Page Unknown]]

[Federal Register: December 9, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35048; File No. SR-CHX-94-23]

 

Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by Chicago Stock Exchange, Inc. Relating to the Odd-Lot 
Transactions

December 2, 1994.
    Pursuant to Section 19(b)(1;) of the Securities Exchange Act of 
1934 (``Act''), 15 U.S.C. Sec. 78s(b)(1), notice is hereby given that 
on November 10, 1994, 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. 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 CHX proposes to amend Rule 9 of Article XXXI of the Exchange's 
Rules as follows, with italics representing language to be added:
Article XXXI
Rule 9 * * *
    (d) Notwithstanding anything in this Rule to the contrary, if so 
determined by the Committee on Floor Procedure, a differential may be 
charged for (i) an odd-lot ``seller's option'' trade (as that is 
defined in Article XX, Rule 9(c)), (ii) an odd-lot order for cash or 
``next day'' delivery, (iii) an odd-lot order for additional settlement 
periods, and (iv) an odd-lot order in an issue in which a differential 
is charged in the primary market.

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 statement 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 give the Committee on 
Floor Procedure (``FPC'') flexibility with respect to the Exchange's 
odd-lot execution rules. Currently the rule provides that all odd-lots 
shall be executed at the best bid or offer, similar to round lot 
executions. The new rule will allow the FPC to allow differentials to 
be charged for non-regular way trades. For example, the new rule 
permits the Committee on Floor Procedure to allow differentials to be 
charged for odd-lot seller's option trades, ``next day'' delivery 
trades and orders in issues for which a differential is charged in the 
primary market.
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 change will 
impose a burden on competition.

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

    No written comments were solicited or received.

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

    Within 35 days of the publication of this notice in the Federal 
Register or within such other period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes 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, N.W., Washington, D.C. 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. Sec. 552, will be available for inspection and copying at 
the Commission's Public Reference Section, 450 Fifth Street, N.W., 
Washington, D.C. 20549. Copies of such filing will also be available 
for inspection and copying at the principal office at the CHX. All 
submissions should refer to File No. SR-CHX-94-23 and should be 
submitted by December 30, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-30259 Filed 12-8-94; 8:45 am]
BILLING CODE 8010-01-M