[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