[Federal Register Volume 60, Number 139 (Thursday, July 20, 1995)]
[Notices]
[Page 37487]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17857]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35972; File No. 10-101]


Self-Regulatory Organizations; Notice of Filing of Amendment No. 
2 to Application for Registration as a National Securities Exchange by 
the United States Stock Exchange, Inc.

July 14, 1995.
    Pursuant to Section 19(a) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. 78s(a), notice is hereby given that on May 23, 
1995, the United States Stock Exchange, Inc. (``USSE'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') 
Amendment No. 2 to its Application for Registration as a national 
securities exchange.\1\ The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.

    \1\ The Application for Registration and Amendment No. 1 thereto 
were published in Securities Exchange Act Release No. 35709 (May 5, 
1995), 60 FR 26752 (May 8, 1995).
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    Amendment No. 2 makes changes to the proposed rules for the USSE. 
First, the amendment changes the definition of ``Preferenced Public 
Agency Order'' to state that the USSE's electronic system (the 
``System'') would automatically match a dealer with a public agency 
order transmitted by the dealer to the System unless the dealer matches 
the order with another public agency order before transmitting the 
order to the System or there is a public agency order on the USSE 
electronic book that would be matched with the order. Previously, the 
rule indicated that the dealer would enter a contra-side order for its 
own account for the purpose of trading with a preferenced public agency 
order.
    Second, the amendment clarifies that the System does not enter 
``Auto-Quotes'' for individual dealers. Rather, if there were no dealer 
bids or offers for a security at a particular time, the System would 
disseminate on Auto-Quote for that security to the national market 
system. An Auto-Quote is defined in the USSE Rules as a quote by the 
System programmed to calculate a price equal to one minimum variation 
away from the Intermarket Trading System best bid or offer and 
programmed to be a size equal to 100 shares. The amendment also states 
that the obligation to honor an Auto-Quote would rotate among dealers 
on a trade-by-trade basis.
    Finally, the amendment clarifies that the minimum size obligation 
for USSE dealers only would be satisfied by quotations entered into the 
System as principal. Under certain circumstances, therefore, the 
proposed USSE rules would require that dealers quote as principal for 
at least 500 shares in addition to any orders that they might be 
representing as agent in the USSE System.
    You are invited to submit written data, view and arguments 
concerning Amendment No. 2 to the USSE's Application for Registration 
with thirty days of the date of publication of this notice in the 
Federal Register. Such written data, views and arguments will be 
considered by the Commission in granting registration or instituting 
proceedings to determine whether registration should be denied. Persons 
making written submissions should file six copies thereof with the 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549. Reference should be made to File No. 10-101.
    The USSE's submission explains the operation of the proposed 
Exchange in more detail. Copies of the submission, all subsequent 
amendments, all written statements with respect to the application that 
are filed with the Commission, and all written communications relating 
to the application 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 at the 
Commission's Public Reference Section, 450 Fifth Street, NW., 
Washington, DC 20549.

    By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-17857 Filed 7-19-95; 8:45 am]
BILLING CODE 8010-01-M