[Federal Register Volume 60, Number 198 (Friday, October 13, 1995)]
[Notices]
[Page 53446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25446]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36347; File No. SR-CHX-95-21]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, 
Incorporated Relating to the Amendment of Modified Versions of the 
SuperMAX System on a Pilot Basis

October 6, 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 
September 18, 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 
comment 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.\1\

    \1\ The Enhanced SuperMAX program is an optional feature of the 
Exchange's automated execution (``MAX'') system. This program is 
designed to provide a possibility of price improvement under certain 
circumstances.
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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
    On July 27, 1995, the Commission approved a proposed rule change of 
the CHX that added rules for the Enhanced SuperMAX program into CHX 
Article XX, Rule 37(e).\2\ That approval order contemplated that the 
CHX would file with the Commission a codification of its procedures 
with respect to a specialist's ability to make a security eligible for 
Enhanced SuperMAX and Timed Enhanced SuperMAX.\3\

    \2\ See Securities Exchange Act Release No. 36027 (July 27, 
1995), 60 FR 39465 (August 2, 1995) (File No. SR-CHX-95-15).
    \3\ The Timed Exchange SuperMAX program is found in CHX Article 
XX, Rule 37(f). The program operates in a manner identical to 
Enhanced SuperMAX, with the modification that the specialist pre-
selects a time period, which may be no less than 30 seconds and may 
be changed only once a month, during which the possibility of price 
improvement will be available. Because Rule 37(f) incorporates by 
reference that portion of Rule 37(e) being amended herein, the 
propose rule change also has the effect of codifying the procedures 
with respect to a specialist's ability to make a security eligible 
for Timed Enhanced SuperMAX.
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    The purpose of the proposed rule change is to codify those 
procedures. Specifically, a specialist will be permitted to engage and 
disengage Enhanced SuperMAX and Timed Enhanced SuperMAX for a given 
stock only on one given day each month, as determined from time to time 
by the Exchange.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b)(5) of the 
Act \4\ in that it is designed to promote just and equitable principles 
of trade, to remove impediments to and perfect the mechanism of a free 
and open market and a national market system, and, in general, to 
protect investors and the public interest.

    \4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose a burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received from Members, Participants or Others

    No comments were solicited or received.

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 \5\ and 
subparagraph (e) of Rule 19b-4 thereunder.\6\ 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.

    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(e).
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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 NW., 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 NW., 
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-95-21 and should be 
submitted by November 3, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 95-25446 Filed 10-12-95; 8:45 am]
BILLING CODE 8010-01-M