[Federal Register Volume 61, Number 56 (Thursday, March 21, 1996)]
[Notices]
[Page 11655]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6763]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-36975; File No. SR-CSE-96-01]


Self-Regulatory Organizations; The Cincinnati Stock Exchange; 
Order Granting Approval to Proposed Rule Change Relating to Clearance 
Identification Procedures for Members

March 14, 1996.
    On January 16, 1996, The Cincinnati Stock Exchange (``CSE'' or 
``Exchange'') submitted to the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to require that members give up only their own or 
another CSE member's clearing number when executing a transaction on 
the Exchange.

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change was published for comment in the Federal 
Register on February 9, 1996.\3\ No comments were received on the 
proposal.

    \3\ Securities Exchange Act Release No. 36810 (Feb. 5, 1996), 61 
FR 5050.
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    The Exchange proposes to add a third policy/interpretation to 
Article II, Section 5.1 of its by-laws. This policy would require the 
Exchange's members to give up only their own or another CSE member's 
clearing number when executing a transaction on the Exchange. The 
Exchange reasons that this requirement would ensure that the CSE has 
jurisdiction over all of the parties involved in executing and settling 
trades that occur on the Exchange.
    The Exchange proposes to place this requirement in Article II, 
Section 5.1 of its by-laws (``Restrictions on Admittance to or 
Continuance in Membership Association'') instead of Chapter XIII, Rule 
13.1 of its rules (``Comparison and Settlement Requirements'') because, 
in the CSE's opinion, this requirement is a condition of membership 
being placed on existing members, and it does not impact the Exchange's 
procedures regarding the comparison and settlement of trades.\4\

    \4\ See Letter dated February 12, 1996, from Robert P. 
Ackermann, Vice President, Regulatory Services, CSE, to Glen 
Barrentine, Senior Counsel/Team Leader, SEC.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange, and, in 
particular, with the requirements of Section 6(b).\5\ Specifically the 
Commission believes the proposal is consistent with the Section 6(b)(5) 
\6\ requirements that the rules of an exchange be designed to prevent 
fraudulent and manipulative acts, to foster cooperation and 
coordination with persons engaged in clearing, settling, and processing 
information with respect to transactions in securities and, in general, 
to protect investors and the public interest.

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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    The Commission agrees that this give up requirement should ensure 
that the CSE may exercise jurisdiction over all of the parties involved 
in executing, clearing, and settling trades that occur on the Exchange. 
In turn, this should enhance the Exchange's ability to resolve issues 
involving the clearance and settlement of transactions that occur on 
the Exchange.\7\

    \7\ The Commission notes that this requirement is similar to New 
York Stock Exchange, Inc. Rule 138 and American Stock Exchange, Inc. 
Rule 104.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-CSE-96-01) is approved.

    \8\ 15 U.S.C. 78s(b)(2).
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    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\

    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-6763 Filed 3-20-96; 8:45 am]
BILLING CODE 8010-01-M