[Federal Register Volume 61, Number 28 (Friday, February 9, 1996)]
[Notices]
[Page 5050]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-2870]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36810; File No. SR-CSE-96-01]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the Cincinnati Stock Exchange Relating to Clearance 
Identification Procedures for Members

February 5, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 16, 1996, The 
Cincinnati Stock Exchange (``CSE'' 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.

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

    The Exchange proposes to amend the CSE's by-laws to clarify that 
members must ``give up'' a valid CSE clearing number. The text of the 
proposed rule change is available at the Office of the Secretary, the 
CSE, 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 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 Exchange has filed proposed Interpretation .03 to Article II, 
Section 5.1, of its by-laws for the purpose of clarifying that a member 
may only ``give up'' its own or another CSE member's clearing number 
when executing a transaction on the Exchange.\2\ This requirement 
ensures that the Exchange will have the ability to exercise 
jurisdication over all of the parties involved in executing and 
settling trades that occur on the CSE.

    \2\ The CSE member whose clearing number is ``given up'' is 
responsible for clearing that trade.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b)\3\ of the Act in general and furthers the objectives of 
Section 6(b)(5)\4\ in particular in that it is designed to promote just 
and equitable principles of trade and, in general, to protect investors 
and the public interest.

    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes the proposed rule change will impose no 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

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

    The Exchange has neither solicited nor received written comments 
with respect to the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Within 35 days of the publication of this notice in the Federal 
Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve the proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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. 552, will be available for inspection and copying at the 
Commission's Public Reference Section, 450 Fifth Street, N.W., 
Washington, D.C. 20549. Also, copies of such filing will be available 
for inspection and copying at the principal office of the CSE. All 
submissions should refer to File No. SR-CSE-96-01 and should be 
submitted by March 1, 1996.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\

    \5\ 17 C.F.R. 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-2870 Filed 2-8-96; 8:45 am]
BILLING CODE 8010-01-M