[Federal Register Volume 67, Number 125 (Friday, June 28, 2002)]
[Notices]
[Page 43693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-16348]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46104; File No. SR-CHX-2002-12]


Self Regulatory Organizations; The Chicago Stock Exchange, 
Incorporated; Order Granting Approval to Proposed Rule Change To Amend 
the Rules Relating to the Composition of the CHX's Minor Rule Violation 
Panel

June 24, 2002.
    On April 26, 2002, The Chicago Stock Exchange, Incorporated 
(``CHX'' or ``Exchange'') filed with 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 amend the rules relating to 
the composition of the CHX's Minor Rule Violation Panel (``Panel''). 
Under the proposal, the CHX would modify the composition of the Panel, 
from a Panel that consists of (1) one member of the Rules Subcommittee; 
(2) one member of the Committee on Floor Procedure who is not on the 
Rules Subcommittee; and (3) one floor member who is not on the 
Committee on Floor Procedure or on any of its subcommittees (such as 
the Rules Subcommittee), to a Panel that consists of (1) one member of 
the Rules Subcommittee; (2) one member of the Committee on Floor 
Procedure (whether or not he or she is on the Rules Subcommittee); and 
(3) one floor member who is not on the Committee on Floor Procedure, 
but could be on one or more of its subcommittees (but not the Rules 
Subcommittee).
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    \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 May 20, 2002.\3\ The Commission received no comments on the 
proposal.
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    \3\ See Securities Exchange Act Release No. 45921 (May 14, 
2002), 67 FR 35602.
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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 \4\ and, in 
particular, the requirements of section 6 of the Act \5\ and the rules 
and regulations thereunder. The Commission finds specifically that the 
proposed rule change is consistent with section 6(b)(5) of the Act \6\ 
in that it is designed 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 by ensuring that potential minor rule 
violations are addressed as soon as possible.
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    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(5).
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    In addition, the Commission finds the proposal is consistent with 
section 6(b)(7) of the Act \7\ because the proposal provides a fair 
procedure for the disciplining of members and persons associated with 
members. The Commission also finds the proposal is consistent with 
section 6(b)(8) of the Act,\8\ in that it furthers the statutory goal 
of providing a fair procedure for disciplining the CHX's members and 
associated persons. Finally, the Commission finds the proposal is 
consistent with Securities Exchange Act Rule 19d-1(c)(2) \9\ that 
governs minor rule violation plans.
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    \7\ 15 U.S.C. 78f(b)(7).
    \8\ 15 U.S.C. 78f(b)(8).
    \9\ 17 CFR 240.19d-1(c)(2).
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    It is therefore ordered, pursuant to section 19(b)(2) of the Act 
\10\, that the proposed rule change (SR-CHX-2002-12) be, and it hereby 
is, approved.
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    \10\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-16348 Filed 6-27-02; 8:45 am]
BILLING CODE 8010-01-P