[Federal Register Volume 65, Number 60 (Tuesday, March 28, 2000)]
[Notices]
[Pages 16444-16445]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-7587]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42567; File No. SR-CHX-00-03]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, 
Incorporated Relating to Administration of the Exchange's Floor 
Membership Examination

March 22, 2000.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice hereby is given that 
on March 6, 2000,\3\ 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 CHX. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The Exchange originally submitted the proposed rule change 
on February 28, 2000 pursuant to section 19(b)(2) of the Act. After 
consulting with Commission staff, the Exchange submitted Amendment 
No. 1 to refile the proposed rule change as a non-controversial 
filing pursuant to Rule 19b-4(f)(6) under the Act. Letter from Ellen 
J. Neely, Vice President and General Counsel, CHX, to Katherine A. 
England, Assistant Director, Division of Market Regulation, 
Commission, dated March 3, 2000 (``Amendment No. 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 Interpretation and Policy .01(a) to 
CHX Rule 3 to eliminate the requirement that applicants for Exchange 
membership requesting a floor presence be posted for membership before 
taking the Exchange's Floor Membership Examination. The proposal would 
permit administration of the Floor Membership Examination in a manner 
more convenient for both the applicant and the Exchange's staff. The 
text of the

[[Page 16445]]

proposed rule change is set forth below. Deletions are in brackets.

ARTICLE VI

RESTRICTIONS AND REQUIREMENTS

Training and Examination of Registrants

Rule 3.

* * * * *

Interpretations and Policies

.01  Floor Member Organizations
    (a) Floor Membership Exam
All applicants for membership on the Exchange requesting a floor 
presence must successfully complete the Floor Membership Exam [after 
the applicant has been posted for membership].
* * * * *

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 CHX 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 CHX 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 proposed rule change will permit administration of the Floor 
Membership Examination either before or after posting of an applicant 
requesting a floor presence on the Exchange. The Exchange believes that 
the flexibility afforded by the proposed rule change will permit more 
efficient scheduling and administration of the examination process to 
the benefit of prospective members, member organizations, and Exchange 
staff, by removing the unnecessary formality of requiring posting as a 
prerequisite to taking the exam. The Exchange will still require 
applicants of prospective members to be posted prior to approval for 
membership, which will maintain the protections of the membership 
consideration progress.
2.  Statutory Basis
    The proposed rule change is consistent with section 6(b)(5) of the 
Act \4\ in that it is designed to promote just and equitable principles 
of trade, to foster cooperation and coordination with persons 
regulating securities transactions, 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.
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    \4\ 15 U.S.C. 78(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 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 not solicited or received written comments on the 
proposed rule change.

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

    Because the proposed rule change: (1) Does not significantly affect 
the protection of investors or the public interest; (2) does not impose 
any significant burden on competition; and (3) does not become 
operative for 30 days from March 6, 2000, the date on which it was 
filed, and the Exchange provided the Commission with written notice of 
its intent to file the proposed rule change at least five business days 
prior to the filing date, it has become effective upon filing pursuant 
to section 19(b)(3)(A) of the Act and rule 19b-4(f)(6) 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 purposes of the Act.\6\
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    \5\ 17 CFR 250.19b-4(f)(6).
    \6\ In reviewing this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
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IV.  Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Persons making written submissions 
should file six copies thereof with the Secretary. Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
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. 522, will be available for inspection and copying at the 
Commission's Public Reference Room. Copies of the filing will also be 
available for inspection and copying at the principal office of the 
CHX. All submissions should refer to the File No. SR-CHX-00-01 and 
should be submitted by April 18, 2000.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-7587 Filed 3-27-00; 8:45 am]
BILLING CODE 8010-01-M