[Federal Register Volume 61, Number 41 (Thursday, February 29, 1996)]
[Notices]
[Pages 7840-7841]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4664]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36869; File No. SR-CHX-96-06]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, 
Incorporated Relating to the Correction of Possible Ambiguities in the 
Exchange's GTX Rules

February 22, 1996.
    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 February 
5, 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 proposes to modify Article XX, Rule 37(a) of the CHX's 
Rules and Interpretation and Policy .02 thereto, relating to the 
primary market protection of limit orders designated as good until 
canceled, executable in the afternoon session (``GTX orders'').\1\

    \1\ The Exchange is open for business for two trading sessions 
during each business day. The CHX's regular auction market trading 
session is conducted on the floor of the Exchange from 8:30 a.m. to 
3 p.m. (3:15 p.m. for trading in Chicago Basket), Central time, 
Monday through Friday. The second, or afternoon, session is 
conducted through the Portfolio Trading System from 3:30 p.m. to 5 
p.m., Central time, Monday through Friday. The floor of the Exchange 
is closed during the afternoon session. See CHX Article IX, Rule 10.
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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.

[[Page 7841]]


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. 29297 (June 13, 1991), 56 FR 
28191 (June 19, 1991) (File No. SR-MSE-91-11), the Commission approved 
on a pilot basis rules relating to the CHX's program to provide primary 
market protection to limit orders designated as GTX orders.\2\ Those 
rules included Article XX, Rule 37(a) and Interpretation and Policy .02 
thereto. In Securities Exchange Act Release No. 33991 (May 2, 1994), 59 
FR 23904 (May 9, 1994) (File No. SR-CHX-93-23), the Commission 
permanently approved the CHX's program. The purpose of the proposed 
rule change is to correct possible ambiguities in the current text of 
Rule 37(a) and Interpretation and Policy .02 without making any 
substantive alterations to the program.

    \2\ The CHX's program requires that Exchange specialists provide 
primary market protection for GTX orders in securities listed on 
either the New York Stock Exchange or American Stock Exchange and 
traded during these exchanges' after-hours closing-price trading 
sessions. Specifically, the responsible CHX specialist is required 
to fill GTVVX orders at such closing price, based on the volume that 
prints in the primary market during its closing-price session. GTX 
orders may be entered only during the Exchange's regular trading 
session.
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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 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

    The Exchange has neither solicited nor received written comments on 
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 \4\ and 
subparagraph (e)(1) of Rule 19b-4 thereunder.\5\ At any time within 60 
days of the filing of such 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)(4).
    \5\ 17 CFR 240.19b-4(e)(1).
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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, 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. 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-96-06 and should be 
submitted by March 21, 1996.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-4664 Filed 2-28-96; 8:45 am]
BILLING CODE 8010-01-M