[Federal Register Volume 60, Number 175 (Monday, September 11, 1995)]
[Notices]
[Page 47196]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-22391]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36180; File No. SR-CHX-95-20]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, 
Incorporated Relating to Technical Corrections to Its Enhanced SuperMAX 
Rules

September 1, 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 August 
25, 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 Exchange, pursuant to Rule 19b-4 of the Act, proposes to amend 
Rule 37(e) of Article XX, relating to its Enhanced SuperMAX Program.

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
    In Securities Exchange Act Release No. 36027 (July 27, 1995), 60 FR 
39465 (Aug. 2, 1995) (File No. SR-CHX-95-15), the CHX added rules for 
the Enhanced SuperMAX Program into CHX Article XX, Rule 37(e). The 
purpose of this proposed change is to make technical changes to Rule 
37(e) to correct inadvertent errors contained in the prior filing. 
Specifically, Rule 37(e) (1) and (2) are being changed to make it clear 
that they refer to stopped orders\1\ and not stop orders,\2\ among 
other things.

    \1\For purposes of the Enhanced SuperMAX program, an order is 
``stopped'' if an agency market order would create either a double 
up tick (buy order) or double down tick (sell order) if the order 
was executed at the consolidated best bid or offer. Once an order is 
stopped, a buy (sell) order is guaranteed at least the offer (bid) 
price prevailing at the time of the stop (``stopped price''), and 
the Enhanced SuperMAX program will provide the order with an 
opportunity for price improvement.
    \2\Generally, a stop order is an order to buy or sell at the 
market price once the security has traded at a specified price 
(``stop price'').
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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 designed to promote just and equitable principles of 
trade, to remove impediments too 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

    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 and 
subparagraph (e) of Rule 19b-4 thereunder. 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 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. Sec.  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-95-20 and should be 
submitted by October 2, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-22391 Filed 9-8-95;8:45am]
BILLING CODE 8010-01-M