[Federal Register Volume 60, Number 204 (Monday, October 23, 1995)]
[Notices]
[Pages 54394-54395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26183]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-36375; File No. SR-CHX-95-22]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, 
Incorporated Related to a Technical Correction to Rule 16 of Article 
XXXIV

October 16, 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 28, 1995, the Chicago Stock Exchange, Incorporated (``CHX'' 
or ``Securities'') 

[[Page 54395]]
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. On 
October 10, 1995 the Exchange submitted 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 October 3, 1995. Amendment 
No. 1 corrects the original filing by referencing Rule 16 of Article 
XXXIV as the rule being amended in the filing.
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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 make a 
technical correction to Rule 16 of Article XXXIV of the CHX's rules 
relating to the utilization of exempt credit by market makers.

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
    The purpose of the proposed change is to make a technical change to 
Interpretations and Policies .02, Rule 16, Article XXXIV. Presently, 
Interpretations and Policies .02 to Rule 16 of Article XXXIV 
incorrectly indicates that the Best System is described in Rule 34 of 
Article XX.\2\ The Best System is actually described in Rule 37 of 
Article XX. This proposed rule change corrects the incorrect cross-
reference.

    \2\ The BEST System specifies certain conditions under which 
Exchange specialists are required to accept and guarantee executions 
of market and limit orders.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b)(5) of the 
Act\3\ 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.

    \3\ 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 \4\ and 
subparagraph (e) of Rule 29b-4 thereunder.\5\ 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 
purpose of the Act.

    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(e).
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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, NW., Washington DC 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, DC 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-95-22 and should be 
submitted by November 13, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary
[FR Doc. 95-26183 Filed 10-20-95; 8:45 am]
BILLING CODE 8010-01-M