[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