[Federal Register Volume 68, Number 37 (Tuesday, February 25, 2003)]
[Notices]
[Pages 8789-8790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-4361]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47370; File No. SR-OC-2003-02]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by OneChicago, LLC Relating to 
Block Trading

February 14, 2003.
    Pursuant to section 19(b)(7) of the Securities Exchange Act of 1934 
(``Act''),\1\ and rule 19b-7 under the Act,\2\ notice is hereby given 
that on February 6, 2003, OneChicago, LLC (``OneChicago'') filed with 
the Securities and Exchange Commission (``SEC'' or ``Commission'') the 
proposed rule changes described in items I, II, and III below, which 
items have been prepared by OneChicago. The Commission is publishing 
this notice to solicit comments on the proposed rule changes from 
interested persons. OneChicago also filed a written certification with 
the Commodity Futures Trading Commission (``CFTC'') under section 5c(c) 
of the Commodity Exchange Act \3\ on February 5, 2003.
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    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 17 CFR 240.19b-7.
    \3\ 7 U.S.C. 7a-2(c).
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I. Self-Regulatory Organization's Description of the Proposed Rule 
Change

    OneChicago is proposing to reduce the minimum number of contracts 
that may be negotiated in a block trade from 10,000 contracts to 500 
contracts.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    OneChicago has prepared statements concerning the purpose of, and 
basis for, the proposed rule change, burdens on competition, and 
comments received from members, participants, and others. The text of 
these statements may be examined at the places specified in item IV 
below. These statements are set forth in sections A, B, and C below.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    OneChicago is proposing to amend its Block Trade Policy to reduce 
the minimum number of contracts that may be negotiated in a block trade 
to 500 contracts. OneChicago rule 417 permits block trade transactions 
that are ``for at least the minimum number of Contracts as will from 
time to time be specified by the Exchange.'' OneChicago's Block Trade 
Policy establishes a minimum number of 10,000 contracts for block trade 
transactions. The proposed rule change would amend OneChicago's Block 
Trade Policy to permit a minimum number of 500 contracts for block 
trade transactions.
    OneChicago believes that this change is appropriate for competitive 
purposes.
2. Statutory Basis
    OneChicago believes that the proposed rule change is consistent 
with section 6(b)(5) of the Act \4\ in that it promotes competition, is 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade and to protect investors 
and the public interest. The proposed rule change will permit 
OneChicago to better compete with other security futures markets. 
OneChicago also believes that the proposed rule change will also 
promote just and equitable principles of trade and protect investors by 
providing a prudent level of minimum contracts for block trade 
transactions for those sophisticated persons and professionals that are 
permitted to enter into these transactions.
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    \4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    OneChicago does not believe that the proposed rule change will have 
a negative impact on competition. In fact, OneChicago believes that the 
proposed rule change will promote competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Comments on the proposed rule change have not been solicited and no 
comments have been received on the proposed rule change.

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

    Within 60 days of the date of effectiveness of the proposed rule 
change, the Commission, after consultation with the CFTC, may summarily 
abrogate the proposed rule change and require that the proposed rule 
change be refiled in accordance with the provisions of section 19(b)(1) 
of the Act.\5\
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    \5\ 15 U.S.C. 78s(b)(1).
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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 conflicts with the Act. Persons making written submissions 
should file nine copies of the submission with the Secretary, 
Securities and Exchange Commission, 450 Fifth Street, NW., Washington, 
DC 20549-0609. Comments also may be submitted electronically to the 
following e-mail address: [email protected]. 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 these filings also will be available 
for inspection and copying at the principal office of OneChicago. 
Electronically submitted comments will be posted on the Commission's 
Web site

[[Page 8790]]

(http://www.sec.gov). All submissions should refer to File No. SR-OC-
2003-02 and should be submitted by March 18, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(75).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-4361 Filed 2-24-03; 8:45 am]
BILLING CODE 8010-01-P