[Federal Register Volume 67, Number 84 (Wednesday, May 1, 2002)]
[Notices]
[Pages 21787-21788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-10714]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45819; File No. SR-CHX-2002-11]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, 
Incorporated To Extend Pilot Rules for Decimals

April 24, 2002.
    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 April 12, 2002, 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 II below, which Items have been prepared by the CHX. The Exchange 
filed the proposal pursuant to Section 19(b)(3)(A) of the Act,\3\ and 
Rule 19b-4(f)(6) \4\ thereunder, which renders the proposal effective 
upon filing with the Commission.\5\ 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\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
    \5\ The Exchange requested, and the Commission agreed, to waive 
the 5-day prefiling notice requirement.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to extend through September 30, 2002, the 
pilot rules amending certain CHX rules that were impacted by the 
securities industry transition to a decimal pricing environment. The 
two pilots containing these rules were due to expire on April 15, 2002. 
The CHX does not propose any substantive or typographical changes to 
the pilot; the only change is an extension of each pilot's expiration 
date through September 30, 2002. The text of the proposed rule change 
is available at the Commission and at the CHX.

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 regarding 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
    On August 24, 2000, the Commission approved, on a pilot basis 
through February 28, 2001, changes proposed by the Exchange to amend 
certain CHX rules that would be impacted by the securities industry 
transition to a decimal pricing environment, including the Exchange's 
crossing rule.\6\ By a series of subsequent submissions, the pilots 
were extended four times.\7\ The Exchange now requests an extension of 
the current pilots through September 30, 2002. The CHX does not propose 
to make any substantive or typographical changes to the pilot.
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    \6\ These changes were proposed in two separate CHX submissions, 
the second of which dealt solely with decimal-related changes to the 
Exchange's crossing rule, Article XX, Rule 23. See Securities 
Exchange Act Release No. 43204 (August 24, 2000), 65 FR 53065 
(August 31, 2000) (SR-CHX-2000-22) (approving changes to various CHX 
rules on a pilot basis (``Omnibus Decimal Pilot'')); see also 
Securities Exchange Act Release No. 43203 (August 24, 2000), 65 FR 
53067 (August 31, 2000) (SR-CHX-2000-13) (approving changes to the 
CHX crossing rule on a pilot basis (``Crossing Rule Decimal 
Pilot'')).
    \7\ See Securities Exchange Act Release Nos. 43974 (February 16, 
2001), 66 FR 11621 (February 26, 2001) (SR-CHX-2001-03) (extending 
Omnibus Decimal Pilot through July 9, 2001); 44488 (June 28, 2001), 
66 FR 35684 (July 6, 2001) (SR-CHX-2001-13) (extending Omnibus 
Decimal Pilot through November 5, 2001); 45059 (November 15, 2001), 
66 FR 58543 (November 21, 2001) (SR-CHX-2001-20) (extending Omnibus 
Decimal Pilot through January 14, 2002); and 45482 (February 27, 
2002), 67 FR 10243 (March 3, 2002) (SR-CHX-2002-01) (extending 
Omnibus Decimal Pilot through April 15, 2002); see also, Securities 
Exchange Act Release Nos. 44000 (February 23, 2001), 66 FR 13361 
(March 5, 2001) (SR-CHX-00-27) (extending Crossing Rule Decimal 
Pilot through July 9, 2001); 45010 (November 1, 2001), 66 FR 56585 
(November 8, 2001) (SR-CHX-2001-22) (extending Crossing Rule Decimal 
Pilot through January 14, 2002); and 45481 (February 27, 2002), 67 
FR 10244 (March 3, 2002) (SR-CHX-2002-03) (extending Crossing Rule 
Decimal Pilot through April 15, 2002).
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2. Statutory Basis
    The CHX believes the proposal is consistent with the requirements 
of the Act and the rules and regulations thereunder that are applicable 
to a national securities exchange, and, in particular, with the 
requirements of Section 6(b).\8\ The CHX believes the proposal is 
consistent with Section 6(b)(5) of the Act \9\ in that it is designed

[[Page 21788]]

to promote just and equitable principles of trade, to remove 
impediments, and to 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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    \8\ 15 U.S.C. 78(f)(b).
    \9\ 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 the proposed rule change will 
impose any inappropriate 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 either solicited or received.

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

    Because the foregoing proposed rule change does not:
    (i) Significantly affect the protection of investors or the public 
interest;
    (ii) Impose any significant burden on competition; and
    (iii) Because operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to section 19(b)(3)(A) of the Act \10\ and 
Rule 19b-4(f)(6) thereunder.\11\ 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.
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    \10\ U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
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    The Exchange has requested that the Commission waive the 5-day pre-
filing requirement and accelerate the operative date of the proposed 
rule change. The Commission finds good cause to waive the 5-day pre-
filing requirement and to designate for proposal to become operative 
immediately because such designation is consistent and waiver of the 5-
day pre-filing requirement will allow the pilot to continue 
uninterrupted through September 30, 2002. For these reasons, the 
Commission finds good cause to designate that the proposal in both 
effective and operative upon filing with the Commission.\12\
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    \12\ For purposes only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
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 proposal 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. 
552, will be available for inspection and copying in the Commission's 
Public Reference Room Copies of such filing will also be available for 
inspection and copying at the principal office of the CHX. All 
submissions should refer to File No. SR-CHX-2002-11 and should be 
submitted by May 22, 2002.

    For the Commission, by the division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-10714 Filed 4-30-02; 8:45 am]
BILLING CODE 8010-01-M