[Federal Register Volume 60, Number 132 (Tuesday, July 11, 1995)]
[Notices]
[Pages 35756-35757]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16925]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-35923; File No. SR-CHX-95-14]


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

June 30, 1995.
    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 June 19, 
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 

[[Page 35757]]
III below, which Items have been prepared by the self-regulatory 
organization. On June 28, 1995, 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.

    \1\ See letter from David Rusoff, Foley & Lardner, to Glen 
Barrentine, Senior Counsel, SEC, dated June 28, 1995. Amendment No. 
1 withdraws the proposed changes to CHX Rule 6, Article XXXVII.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rule 2 and Rule 8(b) of Article 
XXXVII of the Exchange's Rules. The proposed rule change will become 
operative 30 days after the date the proposed rule change is filed with 
the Commission. The text of the proposed rule change is as follows [new 
text is italicized; deleted text is bracketed]:

ARTICLE XXXVII CHICAGO MATCH

DEFINITIONS

    Rule 2. (ad) The term ``Display Eligible Size'' shall mean 500 
shares.
    Rule 8(b) Display-Eligible Orders will be converted into 
Displayed Orders in the following manner. A Display-Eligible Order 
with the highest priority Liquidity Fee or Credit shall have first 
priority to become a Displayed Order. After the entry of any 
Displayed-Eligible Order or Chicago Match Market Maker Order, such 
Displayed-Eligible Order or Chicago Match Market Maker Order shall 
be aggregated with other Display-Eligible Orders (starting with 
orders that have the next highest priority Liquidity Fee or Credit) 
until such aggregation equals or exceeds the [Default Size] Display-
Eligible Size,  at which time, all such orders comprising the 
aggregation, plus any other Display-Eligible Order or Chicago Match 
Market Maker Order that has a Liquidity Fee or Liquidity Credit 
equal to the Displayed Liquidity Fee or Credit, shall become 
Displayed Orders. The Displayed Liquidity Fee or Credit shall be the 
lowest priority Liquidity Fee or Credit of all the Displayed Orders. 
The Displayed Size shall be the sum of the sizes associated with all 
Displayed Orders.

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
    Currently, Rule 8 of Article XXXVII of the Exchange's Rules 
requires the aggregate size of orders that are eligible to be displayed 
in the Chicago Match to be greater than or equal to 10,000, 5,000 or 
2,000 shares (depending on the security involved), before the Chicago 
Match will display those orders. One purpose of the proposed rule 
change is to lower this disclosure threshold to 500 shares on all 
issues so that more orders in the Chicago Match will be displayed. 
Although this filing lowers the disclosure threshold, it does not alter 
the Chicago Match Market Maker's existing obligations with respect to 
the number of shares the Chicago Match Market Maker is obligated to 
enter into the Chicago Match.
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 proposed rule change will impose no 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 with respect to the 
proposed rule change.

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

    Because the foregoing proposed rule change: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition, 
and (3) does not become operative for 30 days from June 19, 1995, the 
date on which it was filed, and the Exchange provided the Commission 
with written notice of its intent to file the proposed rule change at 
least five days prior to the filing date, it has become effective 
pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-4(e)(6) 
thereunder.
    At any time within 60 days of the filing of the proposed 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 purposes 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, 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. 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 of the Exchange. All 
submissions should refer to File No. SR-CHX-95-14 and should be 
submitted by August 1, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 95-16925 Filed 7-10-95; 8:45 am]
BILLING CODE 8010-01-M