[Federal Register Volume 60, Number 211 (Wednesday, November 1, 1995)]
[Notices]
[Pages 55619-55620]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27133]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36420; File No. SR-CBOE-95-66]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Board Options 
Exchange, Incorporated, Relating to the Increase in the Retail 
Automatic Execution System Order Size Limit for Performance Systems 
International, Inc.

October 26, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on October 26, 1995, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' 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 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.

    \1\15 U.S.C. 78s(b)(1).
    \2\17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to increase the size of orders eligible for 
entry into its Retail Automatic Execution System (``RAES'') for all 
classes in Performance Systems International, Inc. This action was 
recommended by the Exchange's Equity Floor Procedure Committee 
(``EFPC'') in order to match the size of orders eligible for entry into 
the Philadelphia Stock Exchange's automatic execution system for the 
same option classes. The text of the proposed rule change is available 
at the Office of the Secretary, the Exchange, and at the Commission.

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 Exchange included statements 
concerning the purpose of and basis for the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Section (A), (B), and (C) below, of the most significant aspects of 
such statements.

(A) Self-Regulatory Organization's Statememt of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    As of October 26, 1995, the Exchange and the Philadelphia Stock 
Exchange, Inc. (``Phlx'') will begin trading equity options on 
Performance Systems International, Inc. The NASDAQ stock symbol for 
Performance Systems International is ``PSIX'' and the option symbol is 
``SQP.''
    The Phlx will impose a twenty-five (25) contract order size limit 
for orders that are eligible for entry into its automatic execution 
system, Auto-EX.\3\ CBOE Rule 6.8 permits the CBOE's EFPC to set an 
order size limit of up to twenty (20) contracts. However, CBOE Rule 
6.8, Interpretation .01 allows the EFPC to set a limit higher than 
twenty to the extent necessary to match the order size eligible for 
entry into the automatic execution system of any other options exchange 
on which the multiply traded option is traded, provided that notice of 
the increase has been filed with the Commission pursuant to Section 
19(b)(3)(A) of the Act. In order to better compete with Phlx for orders 
in SQP, the EFPC has recommended to the Exchange that it make this 
filing to increase the order size eligible for entry in RAES for equity 
options in SQP to twenty-five (25) contracts. The CBOE believes that it 
has more than adequate system capacity and market-making capacity to 
handle the increase in the eligible RAES order size for Performance 
Systems International, Inc. options.

    \3\See Securities Exchange Act Release No. 32906 (September 15, 
1993) 58 FR 49345 (September 22, 1993) (order approving Phlx's 
proposal to expand the order eligibility size of Auto-EX to twenty-
five (25) contracts for all equity options).
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    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act in general and furthers the objectives of 
Section 6(b)(5) in particular in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of change, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any 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

    Because the foregoing rule change constitutes a stated 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule, it has become effective pursuant to 
Section 19(b)(3)(A), and Rule 19b-4 thereunder. At any time within 60 
days of the filing of the 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.

[[Page 55620]]


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 CBOE. All 
submissions should refer to SR-CBOE-95-66 and should be submitted by 
November 22, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\4\

    \4\17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-27133 Filed 10-31-95; 8:45 am]
BILLING CODE 8010-10-M