[Federal Register Volume 60, Number 57 (Friday, March 24, 1995)]
[Notices]
[Pages 15613-15614]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7237]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35505; File No. SR-CHX-95-09]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange 
Incorporated Relating to Order Identifiers

March 17, 1995.
    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 
March 10, 1995, the Chicago Stock Exchange Incorporated (``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 Article XX, Rule 37(b) of the CHX's Rules 
to add an order designator on the Exchange's MAX System.\1\

    \1\``MAX'' is the CHX's order routing and execution system. See 
Article XX, Rule 37(b) of the CHX's Rules for a complete description 
of the MAX system.
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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
    Article XX, Rule 37(b)(9) of the CHX's Rules requires orders sent 
via the MAX System to include account identifiers. When the MAX rules 
were codified, the ``Z'' designator was inadvertently excluded.\2\ The 
``Z'' designator allows [[Page 15614]] order sending firms to receive 
automatic executions of professional market orders based on the CHX's 
BEST Rule.\3\ Limit orders sent with the ``Z'' designator will be 
represented on the specialist's book as professional orders. The ``Z'' 
designator can only be used by a firm after it negotiates with the 
specialist, and the specialist agrees to accept the firm's professional 
orders for automatic execution on MAX.

    \2\The MAX Rules were codified in Securities Exchange Act 
Release No. 35010 (November 28, 1994), 59 FR 62767 (December 6, 
1994).
    \3\See Article XX, Rule 37(a) of the CHX's Rules.
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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 designated to promote just and equitable principles 
of trade, to remove impediments to 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

    The foregoing rule change constitutes a stated policy, practice or 
interpretation with respect to the meaning, administration or 
enforcement of an existing rule of the Exchange and therefore has 
become effective pursuant to Section 19(b)(3)(A) of the Act\4\ and 
subparagraph (e) of Commission Rule 19b-4.\5\ At any time within 60 
days of the filing of such proposed rule change, the Commission may 
summarily abrogate such rule change if it appears to the Commission 
that such action is necessary of appropriate in the public interest, 
for the protection of investors, or otherwise in furtherance of the 
purposes of the Act.

    \4\15 U.S.C. 78s(b)(3)(A) (1988).
    \5\Rule 19b-4(e), 17 CFR 240.19b-4(e), provides that a proposed 
rule change may take effect upon filing with the Commission pursuant 
to Section 19(b)(3)(A) of the Act if, among other things, it effects 
a change in an existing order entry or trading system.
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the forgoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street NW., 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. 552, will be available for inspection and copying at the 
Commission's Public Reference Section, 450 Fifth Street NW., 
Washington, D.C. 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-95-09 and should be 
submitted by April 14, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-7237 Filed 3-23-95; 8:45 am]
BILLING CODE 8010-01-M